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East Ventures raises $550m to fund start-ups
The venture capital has allocated $150 million for early-stage deals and earmarked the remaining $400 million for growth stage deals, adding to $6.7 billion in follow-on funding for seed and growth stage start-ups.
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ast Ventures, known for its focus on Indonesian start-ups, has raised US$550 million in its latest close to be invested in the archipelago’s burgeoning tech sector.
According to a press statement released on Tuesday, the venture capital has allocated $150 million for early-stage deals and earmarked the remaining $400 million for growth-stage deals, adding to $6.7 billion in follow-on funding for seed and growth stage start-ups.
East Ventures currently has more than $1 billion in assets under management (AUM) in Indonesia with a portfolio of more than 200 firms, with an annual aggregate gross merchandise value (GMV) amounting to $86 billion.
“We are very bullish about Indonesia yet mindful of the global market condition. We have built a strong return track record for more than a decade and as the ecosystem flywheel effect kicks in,” East Ventures cofounder and managing partner Wilson Cuaca said in the press statement.
Read also: World tech start-up leader: Indonesia's big dream
The firm cited the COVID-19 pandemic situation and the high speed of digitalization in Indonesia — one of the fastest in Southeast Asia — as key motivators for its latest funding round.
According to a report by global creative agency We Are Social, Indonesia’s internet penetration reached 73 percent of the population, or around 220 million users, in January, while East Ventures’ Digital Competitive Index report shows that Indonesia’s score rose by 3.1 points year-on-year (yoy) to 35.2 in 2022.
“We believe the strong initiatives made by the relevant stakeholders, such as from the government in promoting digitalization through the [Group of 20] presidency, will further elevate the tech ecosystem and create even greater investment opportunities in Indonesia,” East Ventures managing partner Roderick Purwana said in the press statement.
A report released by venture capital firm Cento Ventures shows that Indonesia became the biggest receiver of VC funding in 2021, accounting for 42 percent of total start-up investment in Southeast Asia, with Singapore and Vietnam trailing behind with 34 percent and 10 percent, respectively.
Read also: Financial management start-up CrediBook raises US$8.1 million
In terms of the number of contracts signed by venture capital firms, Singapore holds the top spot with a share of 40 percent of all deals, while Indonesia and Vietnam follow with 24 percent and 18 percent, respectively.
“While Indonesia continues to attract the largest share of capital, Singapore and the Philippines have increased their share significantly,” the report states.
