DealStreetAsia’s upcoming Asia PE-VC Summit 2024 will have a significant focus on limited partner (LP) perspectives and expectations. More than 35 LPs are set to speak at the event, and over 500 LPs will be in attendance from markets such as Greater China, the Middle East, North Asia, Europe and North America. The speakers represent institutional investors such as AIMCo, Adams Street, HarbourVest and Neuberger Berman, while attendees include decision makers at prominent LPs such as Qatar Investment Authority, Siguler Guff, International Finance Corporation (IFC) and Pavilion Capital.
For a limited time, you can secure your spot at the event with a 43% discount. Book your tickets now!
LP-GP updates
India-focused private equity (PE) firm Kedaara Capital has closed its fourth fund at a whopping $1.73 billion. The firm, which primarily pursues control investment opportunities in India, is sector agnostic.
Alternative investment firm Investcorp has launched a $1 billion fund backed by China’s sovereign wealth fund CIC to invest in companies across Saudi Arabia, the wider Gulf region and China.
LPs and fund allocators are increasingly examining impact management and outcome measurement, indicating a shift in their investment approach, according to a senior executive at Singapore-based PE firm ABC Impact.
Singapore-based Foundation PE, a provider of bespoke secondary solutions across Asia, is looking to raise its first rupee-denominated fund to capitalise on India’s maturing PE market, sources told DealStreetAsia.
Schroders Greencoat, a $12.3-billion renewables and energy transition infrastructure manager, is nearing expansion in Asia beyond its UK home base and North America almost two years after London-headquartered Schroders Capital became its majority shareholder.
Next Billion Capital Partners, a US-headquartered venture capital (VC) firm that makes early-to-growth stage investments in tech companies, has made the first close of its new $250 million fund as it looks to ramp up ‘digital’ investments in Southeast Asia.
The merger between Shanghai State-Owned Capital Investment and Shanghai S&T Venture Capital to create yet another investment powerhouse shows the growing standing of state capital investors in the domestic venture world. Controlled by the Shanghai government, the two entities will control a few hundred billion yuan in total assets under management.
Shanghai Sci-Tech Innovation Center Capital, the strategic investment arm of state-owned Shanghai International Group (SIG), is planning to launch a 10-billion-yuan ($1.4 billion) secondary fund, per a state media report.
Peak XV Partners managing director Piyush Gupta is set to depart the early-stage VC firm to launch a new investment fund, per a TechCrunch report.
As many as 10 VC firms, including Nordstar, Openspace Ventures and M Venture Partners, have signed up to establish new offices in Malaysia.
Fund managers on the road to raising their maiden vehicles are finding the going increasingly tough as LPs pull their purse strings amid a prolonged funding winter. First-time funds in India amassed only $15 million during the first quarter of this year, a mere 1.14% of the $1.3 billion raised by GPs during the period.
Property investment manager Nuveen has raised $150.4 million so far from US investors for its latest climate inclusion fund, its filing with the Securities and Exchange Commission (SEC) shows.
India has witnessed unprecedented growth in its healthcare sector in the past few years amid an ageing population and rise in disposable income. A consequent pickup in deal activity, including billion-dollar deals such as Temasek’s $2-billion investment in Manipal Hospitals and Blackstone’s $1-billion acquisition of CARE Hospitals, has spurred a host of new healthcare funds in the world’s most populous country.
Singapore-based emerging market PE firm Affirma Capital has made the first close of its sixth Korea buyout fund at $370 million (KRW 500 billion).
Global VC and growth equity investment firm Norwest Venture Partners has closed its seventeenth fund at $3 billion to back startups in India, the US and Israel.
Funding and other corporate news
The first quarter of this year saw private funding secured by Southeast Asia-based startups nosedive to the lowest level seen in over five years, according to the latest report from DealStreetAsia – DATA VANTAGE. Regional startups raised a total of $1 billion in the first three months of the year, marking a 41% year-on-year drop.
SGX-listed ComfortDelGro has secured a S$100 million loan facility from Singapore-based DBS Bank to finance the greening of its bus fleet in the UK.
Prep, a Vietnam-based online learning platform specialising in standardised language test preparation, has closed a Series A round co-led by Cercano Management and Northstar Ventures, according to regulatory filings.
Excelsior Capital Vietnam Partners, an arm of Hong Kong-based PE firm Excelsior Capital Asia, has invested in English language training company Kapla Vietnam.
After turning profitable in its home market South Africa and establishing a presence in the Philippines, digital bank TymeBank is set to strengthen its foothold in Southeast Asia’s emerging markets by launching in Vietnam and Indonesia this year.
The IFC is considering a proposal to invest up to $7 million in First Circle, a Philippines-based fintech startup backed by Insignia Ventures Partners and others.
Ankiti Bose, the former CEO of Singapore-based fashion marketplace Zilingo, has filed a criminal complaint against her co-founders Dhruv Kapoor and Aadi Vaidya, according to a media report. Kapoor and Vaidya have rejected the allegations made by Bose.
China-based biopharmaceutical firm IMPACT Therapeutics has closed its Series D+ funding round at 400 million yuan ($55.2 million) to advance its pipeline of anti-cancer therapeutics.
PE firm Advent International will invest nearly $297 million in Apollo HealthCo, a unit of India’s Apollo Hospitals, and will merge its online pharmacy vertical, Apollo 24/7, with pharmacy distributor Keimed.
Northern Arc, a non-banking financial company in India, has raised $80 million from the IFC in equity and debt funding.
Logistics startup LetsTransport has raised $22 million in a Series E round of funding led by Bertelsmann India Investments, the VC arm of German media firm Bertelsmann.
Earnings reports
Singapore-based fintech company Atome Financial has reported a 93% increase in operating income in 2023 to $170 million from $88 million in 2022. The firm, which comprises buy now, pay later (BNPL) services provider Atome and Indonesia’s digital lending platform Kredit Pintar, attributed its 2023 performance to the profitability of its BNPL business.
Jakarta-based home decor platform Dekoruma’s losses doubled in 2022 on higher marketing expenses, even as revenue increased 26.6% year on year, per regulatory filings. The group’s loss widened to $6.6 million in 2022.
GoTo-backed digital lender PT Bank Jago’s profit surged 24% during the quarter ended March 31, 2024, driven by a 32% increase in loan disbursements. While net profit increased to 22 billion rupiah from 18 billion rupiah year on year in Q1, Bank Jago’s loan disbursements grew to 14.3 trillion rupiah from 10.8 trillion rupiah during the period.
Going public (or not)
Indian retailer FirstCry is set to withdraw its papers for an up to $500 million IPO after the local markets regulator raised questions over key metrics it disclosed to investors, according to a Reuters report.
Indian food and grocery delivery startup Swiggy has received shareholder approval for a $1.25 billion IPO, per regulatory filings with India’s ministry of corporate affairs. The company plans to raise up to $450 million through a fresh issue of shares, while some existing shareholders will sell shares worth about $800 million.
All things TikTok
TikTok’s chief executive has said the social media company expects to win a legal challenge to block legislation signed into law by President Joe Biden that he said would ban its popular short video app used by 170 million Americans.
TikTok-owner ByteDance would prefer to shut down its loss-making app rather than sell it if the Chinese company exhausts all legal options to fight legislation to ban the platform from app stores in the US, per a Reuters report.
Meanwhile, in Vietnam, regulatory risks could derail the short video app’s bid to become the number one online marketplace in the country. TikTok launched its services in the Southeast Asian country in April 2022 as part of its broader ambition to control 35% of the regional e-commerce market.
Weekend reads
As bitcoin prices rose to their lifetime highs in March, interest in digital coins has surged among Indonesian retail investors. On the flip side, the surge in retail participation has prompted regulatory changes aimed at ring-fencing the financial system and protecting investors.
Vietnam is expected to see an uptick in exit activity driven by higher tech M&A interest among both foreign and local investors, according to the Vietnam Innovation & Tech Investment Report 2024.
