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Startup snapshot: Key developments in Southeast Asia this week

This week has been eventful from a Southeast Asian startup standpoint.

Indonesian VC firm AC Ventures secured a substantial US$210M for its fifth fund, while MAVCAP invested in Vynn Capital’s Mobility and Supply Chain Fund.

Singapore surpassed the US in AI investments, showcasing its strategic commitment. GDMC raised US$21M for advanced genetic therapies, and Bluesheets secured US$6.5M Series A to expand its AI automation solutions.

Vizzio saw leadership change as CEO Jon Lee stepped down amid controversy. Vietnam’s VNG withdrew its US IPO application, hinting at a potential future filing.

In a cost-cutting move, Xendit laid off hundreds of employees, emphasising the importance of aligning resources with business strategy.

Here is a snapshot of all the major developments from across the region:

AC Ventures closes US$210M Fund V

Indonesian VC firm AC Ventures announced the final close of its fifth fund, totalling US$210 million.

ACV Capital V LP is backed by global LPs, of which 90 per cent are institutions, with returning investors making up over 50 per cent of the capital.

Key investors backing the fund include the IFC and prominent financial institutions from the US, the Middle East, and North Asia.

AC Ventures has already started deploying the fund in companies, including MAKA Motors and Koltiva.

MAVCAP invests in Vynn Capital fund

Venture capital firm Malaysia Venture Capital Management Berhad (MAVCAP), with a portfolio nearing MYR5 (US$1.25) billion, has invested in Vynn Capital’s latest Mobility and Supply Chain Fund.

The fund, targeted at US$30 million, aims to innovate Southeast Asia’s technology landscape in the mobility and supply chain sector.

Vynn Capital established a fund to tackle challenges and opportunities in Southeast Asia’s mobility and supply chain sectors. The fund is directed towards early-stage startups in the region raising Seed to Series A rounds.

Singapore pips out US in AI investments

Singapore’s Artificial intelligence (AI) investment rate has outpaced the US by 16 per cent per thousand $GDP, as per a new study.

This is despite the US being the largest investor in AI, with US$328,548 million spent in the last five years.

Although being placed tenth in the amount of money spent, Singapore invested an amount equivalent to 1.5 per cent of its GDP in 2022, according to the AI statistics report curated by AIPRM.

As of 2023, the AI market size was valued between US$136.55 billion and US$454.12 billion. The largest share is in North America, with an estimated value ranging from US$87.18 billion to US$167.3 billion, accounting for more than a third (36.84 per cent) of the global AI market share.

GDMC raises US$21M in Series A

Genetic Design and Manufacturing Corporation (GDMC), a design and manufacturing organisation focusing on next-generation advanced genetic therapies, has secured US$21 million in Series A funding.

Asian private equity firm Celadon Partners led the round, which also saw participation from WI Harper Group, SEEDS Capital, and NSG Ventures.

The funds will be used to accelerate novel technology and process efficiency improvements to drive greater manufacturing cost reductions for partners who aim to advance medicines through clinical trials and towards commercialisation.

Bluesheets secures US$6.5M Series A

Singapore-based AI automation software company Bluesheets announced securing US$6.5 million in a Series A funding round led by Illuminate Financial.

The company’s early investors, such as 1982 Ventures and Insignia Ventures Partners, and new investor Antler Elevate Fund participated.

Thge funding will play a crucial role in advancing Blusheets’s exclusive AI capabilities, enabling them to assist a broader range of clients in digitalising and automating their processes, ensuring competitiveness in the AI-driven era.

The Series A funding will be utilised to deepen existing coverage in their core client segments of banking, insurance, supply chain, procurement, and finance and accounting services.

Vizzio CEO Jon Lee steps down

Vizzio Technologies announced the appointment of CMO David Lee as its interim CEO after incumbent Jon Lee stepped down. Jon’s current role in the startup is unclear.

“We will do better and are confident that this leadership enhancement, along with our commitment to robust governance, positions Vizzio for a strong future,” the company said.

The development comes after an exposé on Jon, who admitted to lying about his PhD in computer science from the University of Cambridge.

VNG drops US listing plan

Vietnam-based tech giant VNG has withdrawn its application for an IPO in the US, ending speculations around its highly anticipated stock market debut.

However, in a filing with the US Securities and Exchange Commission, VNG said it “intends to file a new registration statement in the future.”

The company filed for an IPO on the Nasdaq Global Select market in August 2023, aiming to raise US$150 million.

Xendit lays offs hundreds of staffers

Indonesia-based Xendit has laid off hundreds of employees as part of its efforts to streamline its business.

“This exercise was difficult, but we found it necessary to align resources with business strategy, optimize the efficiency of our team, and ensure that we are best positioned to pursue new growth opportunities,” Mikiko Steven, the fintech firm’s managing director, said in an official statement.

This marks the second round of job cuts for the company, following a retrenchment in August 2023 that affected a “small number” of employees from its product team.

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