Edmund Carulli, Investment Portfolio Manager of Salim Group, at Nexticorn International Summit 2019 in Bali, Indonesia
As one of the leading conglomerates in Indonesia, Salim Group is widely known to be the parent company behind Indofood, which produces instant noodle legend Indomie.
But in the past few years, the group has also been making its move in the country’s tech startup scene.
Apart from running its own corporate venture capital arm, Salim Group has worked with NUS Enterprise to bring the Block71 brand into Jakarta, Bandung, and Jogjakarta. It is also working with Japanese venture capital firm GREE Ventures to introduce accelerator programme SKALA.
Apart from that, Salim Group is behind food-focussed accelerator Accelerice and has secured a partnership with ESL to tap into the e-sports market.
“We see tech as an enabler to our wide array of customers, helping their experience to become more seamless. Take the example of [our portfolio company, local fast-food chain] Warunk Upnormal which now has its own apps for food order,” explains Edmund Carulli, investment portfolio manager at Salim Group’s corporate venture capital (CVC) arm.
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“It is all about innovation. Every older corporation would certainly be aware that it is important to keep on innovating in order to maintain its growth. This is basically what Salim Group is doing. That is why we set the CVC aside from existing companies under the group,” he continues.
Speaking to the press at the sidelines of Nexticorn International Summit in Bali, Indonesia, in November, Carulli further explains the company’s move in building its own startup ecosystem –and why the existence of an ecosystem is crucial for the tech industry to grow.
“A startup ecosystem may include supports from the government, other startups, and infrastructure. Funding also plays a key role in it. Last but not least, market adoption is also critical,” he says.
“For this particular part, Indonesia has been doing really well, even at the regional level in Southeast Asia. It is easier for startups to grow in Indonesia and there is a great possibility for another unicorn to come up from the country,” he stresses.
Seeking for synergy
When asked about the group’s investment philosophy in a startup, Carulli puts an emphasis on having synergy with Salim Group’s family of companies.
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“We first look for synergy with business groups within Salim Group, in which Indomaret and Indofood are the biggest. For example, is there a startup that can help us improve customer experience or operations at Indomaret? We are also seeking for startups in the automotive sector but have not found a suitable one yet,” Carulli says.
Their focus on early-stage investments is also strongly related to that element of collaboration.
“It would be easier for us to support them and for them to build synergy with our vision,” Carulli explains.
Responding to questions about the recent IPO failure of coworking space giant WeWork, which has led to scrutiny over tech companies’ valuation, Carulli says that Salim Group is not a big fan of the cash-burning approach.
“Ever since day one, we put an emphasis on building sustainability,” Carulli stresses.
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