BRI Ventures, the VC arm of Indonesia’s state-owned Bank Rakyat Indonesia (BRI), has announced the first close of its Sembrani Nusantara fund at IDR150 billion (US$10.62 million).
As per a press note, this represents more than half of the fund’s IDR300 billion (US$21.24 million) closing target.
Launched in June 2020, the Sembrani Nusantara fund aims to build a pipeline for Indonesian startups to grow and find good exits.
The fund focuses on potential billion-dollar startups that are pursuing sustainable growth and real metrics, rather than hype-driven unicorns that are notorious for unrealistic and paper-based valuations.
As per a press release, the fund will announce new investment deals with two Indonesian startups this month.
Incoming investors are largely Indonesia-based, including VC firm Celebes Capital, Fazz Financial Group, serial investor Pandu Sjahrir, Indonesian fintech platform Investree, as well as Grab.
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“We have been heartened by the response from Sembrani Nusantara Fund’s investors on this first close. The fund’s backers are primarily Indonesians with experience investing in startups and venture funds,” explained Nicko Widjaja, CEO of BRI Ventures.
“Some are startup founders themselves, who believe in our goal to build a pipeline of future, sustainable Indonesian champions,” he added.
Neneng Goenadi, Managing Director of Grab Indonesia, said, “The Sembrani Nusantara Fund managed by BRI Ventures shares our vision of building a robust and thriving tech ecosystem in Indonesia.”
“We want to help Indonesia-made tech and Indonesian startups to take the spotlight on the world stage and are committed to supporting this goal through funding, mentorship, and capability-building,” she remarked.
“We also believe that startups have a key role to play in advancing the digitalization of MSMEs and supporting Indonesia’s economic recovery. Through the Sembrani Nusantara Fund, we hope to give high-potential startups a boost as they help to accelerate the growth of Indonesia’s digital economy,” she further shared.
The fund aims to look beyond typical investment areas like fintech and focus on micro, small and medium enterprises (MSMEs).
BRI Ventures claims it plays to its parent company’s strength as the world’s largest microfinance institution by aligning the fund’s investment thesis to focus on education, agro-maritime, retail, transportation, and healthcare sectors.
News of the first close represents a fresh boost to the deal landscape in Southeast Asia.
In the first half of 2020, the total number of tech deals dropped 15 per cent, with the total value of investments dipping by 13 per cent. Indonesia, however, remained a bright spot, accounting for 75 per cent of the total investment value.
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Widjaja explained, “With travel restrictions possibly making due diligence and dealmaking onerous for foreign VCs and investors, Indonesia-based investors now have the upper hand in knowing the lay of the land and understanding which startups to bet on.”
“The skyrocketing valuations predicated on building market share alone is no longer enough. Now the investment community has turned to find startups that can survive the Covid-19 stretch and carve a path to sustainable, profitable growth,” he opined.
The fund seeks to ensure diversity across investment cycles by helping local startups pursue IPOs as an exit route.
To that end, BRI Ventures and the Indonesia Stock Exchange (IDX) recently formalized a joint partnership designed to help more local startups pursue IPOs on the local stock exchange.
Through its new fund, BRI Ventures is also exploring new ways for investors to participate in the nation’s startup community.
As the limited partner-general partner legal structure does not yet exist for Indonesian funds, the Sembrani Nusantara fund operates like a mutual fund, Widjaja noted.
“Given our investors’ collective goal of supporting the local digital economy and building a class of IPO-worthy startups, BRI Ventures recognizes that Sembrani Nusantara Fund may play a more active role in the local funding landscape going forward — offering a mixed bag of equity and venture debt options to promising tech companies,” he concluded.
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The post BRI Ventures’s Sembrani Nusantara fund hits first close at US$10M; Grab and Celebes Capital among investors appeared first on e27.