Vertex expects to raise at least $400m for new SE Asia and India fund

Vertex Ventures SEA and India team. Photo: Vertex website

Venture capital firm Vertex Ventures, which is backed by Singapore state investor Temasek, expects to raise at least $400 million next year for a new fund focusing on Southeast Asia and India, a senior executive said.

“Probably, the second quarter of next year is when we’ll kick off the process for our fund five,” Ben Mathias, a Bengaluru-based managing partner at Vertex Ventures Southeast Asia and India, told Reuters during a visit to Singapore.

Vertex Ventures Southeast Asia and India fund is part of Vertex Holdings’ network of global funds. It raised $305 million in its fourth fund.

The move comes at a time when start-ups and privately-held companies are actively raising funds, both in Southeast Asia and India as investors bet on post-pandemic plays.

Mathias said Vertex plans to invest money from its fourth fund until the end of next year and then raise fund five next year which it will start deploying in 2023.

“We have not decided how big the fund will be but it’s safe to say that it will be bigger than fund four.”

Vertex Holdings, ranked as one of the biggest Southeast Asian-based funds, has $5 billion in assets under management across its funds and has about 200 active portfolio companies. The funds focus on investments in their regions of industry specialisation and are run independently.

The Vertex Southeast Asia and India fund had first invested in Grab in 2013 when it was a start-up. Grab has now become Southeast Asia’s biggest ride-hailing and food delivery platform and is going public through a deal that values it at nearly $40 billion.

Vertex’s portfolio includes payments firm Nium, online grocery platform HappyFresh and PatSnap, an intellectual property platform.

While India, Singapore and Indonesia have been the focus for the VC firm, it is now also hunting for investments in Thailand, Malaysia and Vietnam.

“There’s…a lot of capital coming to this region, which is a testimony to the way both Southeast Asia and India are being viewed as very good investment opportunities,” Mathias said, but added that the interest was also driving up valuations.

“There definitely will be a correction. The question is when that will happen,” he said.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.