Editor’s Take: The Week That Was — Oct 28 – Nov 2
As polls close across the United States, the world waits with bated breath for the outcome of the 2024 presidential elections. This uncertainty casts a shadow, suggesting potential chaos ahead. However, our focus shifts to a more stable subject this week: a recap of significant private market developments in Asia.
LP-GP Updates
TPG, a private markets investment firm, made headlines by raising $4.4 billion for its second TPG Rise Climate fund, as documented in a recent filing with the US Securities and Exchange Commission.
The Saudi wealth fund is strategically adjusting its international investments, opting to reduce them by about a third. This move aligns with the Kingdom’s broader initiatives to diversify its economy away from oil dependency.
In a collaborative venture, Abu Dhabi’s Mubadala Investment Company and Temasek-owned Seviora Holdings are joining forces to explore co-investment opportunities and global strategic initiatives, focusing on regions like Singapore and the UAE.
Malaysia-based private equity firm Creador revealed its plan to invest up to 20 billion pesos (approximately $344 million) in the Philippines over the next five years, demonstrating its commitment to the region’s growth.
Saudi Arabia’s Beta Lab is proactively launching a $300-million fund targeting startups in the Middle East, North Africa, and Southeast Asia. Capitalizing on partnerships with entities like the Indonesia Investment Authority, Telkom, and MDI Ventures, Beta Lab is positioning itself as a catalyst in these burgeoning markets.
The Malaysia Digital Economy Corporation (MDEC) is making a marked effort to attract up to 200 million ringgit (around $45 million) in capital investments through partnerships with regional venture capital firms.
Singapore’s leading universities have unveiled a national incubator programme, starting with an initial commitment of S$50 million ($37.7 million), aiming to nurture up to 300 startup teams by 2028.
Market Developments
JD Logistics, part of the Chinese e-commerce major JD.com, is making strides to reestablish its presence in Indonesia, nearly two years after retreating from the market.
Investree, an Indonesian fintech firm, is under scrutiny following the revocation of its licence by Indonesia’s Financial Services Authority (OJK), raising pressing questions about its lender obligations.
Indonesian fintech startup Fazz is reportedly restructuring its business operations, which includes ceasing certain services within its Fazz Business division.
The US International Development Finance Corporation (DFC) is considering a significant $100 million investment in Vietnam’s Southeast Asia Commercial Joint Stock Bank (SeABank), signaling increased interest in the region’s banking sector.
The Indonesian sovereign wealth fund INA is expanding its infrastructure portfolio with investments in significant sections of the Trans Sumatra Toll Road.
Meanwhile, the Singapore government is committing an additional S$440 million ($332 million) into the Startup SG Equity programme, aimed at boosting deep tech startups.
In Greater China, there has been a noticeable uptick in startup funding for the third quarter of 2024, with a reported 40.2% increase from the previous quarter, indicating a resurgence in investment momentum.
Despite its dominance, China’s semiconductor sector faces challenges amid the ongoing funding winter, highlighted by insights from G&O Capital.
As domestic competition squeezes profit margins, Chinese restaurateurs are increasingly eyeing Southeast Asia for expansion, leveraging cultural and geographical affinities.
GDS Holdings Limited, a China-based data centre developer and operator, has successfully raised $1 billion for its international branch, drawing interest from US investors focused on AI and cloud infrastructure support.
Investments and IPOs
Indian fund managers, especially first-time investment vehicle raisers, confront challenges as they court limited partners wary of low DPIs.
In a notable development, private equity giant KKR is in discussions to acquire a controlling interest in CVC Capital’s cancer hospital chain, HealthCare Global Enterprises Ltd.
Amid challenging market conditions, Swiggy, a leading Indian food delivery firm, reduced its IPO valuation to $11.3 billion, falling short of its initial $15 billion target.
The global liquidity crisis has seen Southeast Asian startups make bold reforms to achieve sustainability and hasten profitability. A review revealed mixed performance but also positive indicators of recovery, with more than half of 922 venture-backed companies experiencing year-over-year revenue growth.
Large investments in Indian startups are becoming more frequent, with the first nine months of 2024 witnessing a 15% rise in mega deals amounting to $4.76 billion.
Investors remain bullish on India’s rapid delivery sector, fueled by the youthful domestic market, with no immediate plans to replicate business models elsewhere.
Earnings Reports
GoTo, Indonesia’s tech behemoth, showcased a 29% reduction in losses for Q3 2024, closing the quarter with an adjusted EBITDA of 137 million rupiah, moving closer to its year-end target.
The fintech arm of GoTo is proving to be a significant growth driver, anticipated to achieve positive quarterly adjusted EBITDA ahead of projections.
Indonesia’s e-commerce leader Bukalapak posted an adjusted EBITDA loss of 168 billion rupiah for Q3 2024, a 76% increase from the previous year.
VNG, a major player in Vietnamese tech, reported business segment growth over the first nine months of 2024, with net revenue reaching 6.9 trillion dong ($273 million).
Southeast Asia’s e-commerce facilitator SCI Ecommerce shifted to a net profit of $34.7 million in 2023, a significant turnaround from a net loss of $16.2 million the previous year, as per regulatory submissions.
