If you were one of those who struggled to fend off boredom while being locked away at home during the pandemic, there’s a good chance you’ve embraced at least one new digital hobby – gaming, online shopping. online or maybe stock trading on a richtech application.
This week, we explored the impact of the pandemic on the wealth tech segment in our latest DATA ADVANTAGE The State of Wealthtech in Indonesia report.
Applications like Bibit, Ajaib, and Tanamduit, to name a few, have made wealth management a DIY task and as a result the total number of investors in the Indonesian capital market has doubled since January 2020.
Meanwhile, the country’s wealth tech apps have raised $ 356 million this year, more than half of the segment’s guaranteed capital since January 2016, according to the report.
A massive reallocation of discretionary spending triggered by the health crisis will only fuel this trend. “We estimate that, over the next 10 years, the total assets under management [of Indonesia’s mutual fund industry] will double and the number of retail investor accounts will reach 25 to 30 million compared to around 4.7 million today, ”said Rini Hapsari, co-founder and CEO of Tanamduit in an interview.
Let’s move on to the other stories of the week.
The e-grocery store is another sector that has received a boost from the pandemic. Carpool, e-commerce, social commerce and agritech players abound in the online grocery space in Indonesia.
Homegrown decacorne Gojek started recruiting more sales assistants for its GoMart service, which last year saw 5X GMV monthly growth.
Rival Grab, meanwhile, ends its partnership with Happy fresh and solo with its GrabMart service, launched in 2020.
Another breed of online grocery players, however, is adopting a significantly different model than HappyFresh and transit players: sourcing fresh produce directly from farmers.
The pandemic is also changing the way PEs see the world. Southeast Asia is emerging as a top destination for global private equity firms search for technological investments. There were at least 11 PE deals in the tech space in 2019-21, according to data compiled by DealStreetAsia.
The trend marks a turnaround from 5-7 years ago, when most PE funding in the region went to traditional sectors such as real estate and FMCGs.
Chinese companies are heating up again at the idea of an American listing, despite strong tensions between Beijing and Washington. The trend is driven by a desire to tap the deep pools of liquidity offered by the world’s largest capital market.
Complete Truck Alliance rose more than 18% when it debuted on NYSE this week, giving the startup a valuation of more than $ 24 billion in the largest U.S. stock market listing for a Chinese company this year.
Who might soon be overtaken by DiDi Global Inc, China’s largest rideshare company, which is targeting a valuation of over $ 60 billion for its NYSE debut.
A total of 29 IPOs of Chinese companies in the United States in the first six months of the year raised $ 7.6 billion, the highest amount on record for that period, data shows by Refinitiv.
Chinese online grocery store supported by Tencent Missfresh envisions a valuation of $ 3.8 billion in an IPO in the United States, while the unicorn Ding dong, backed by SoftBank Vision Fund II, is targeting a valuation of over $ 6 billion for its New York debut.
Hong Kong based logistics company Lalamove has confidentially submitted documents to U.S. regulators for an IPO, Bloomberg reported.
Indonesian e-commerce company bucks trend of overseas listings Bukalapak, which plans to offer up to 25% of its expanded capital in an IPO on the IDX. An IPO for Bukalapak would open the door to a lucrative exit for its group of investors, including Microsoft, GIC, Emtek and Naver Corp.
Malaysian conglomerate Sunway Bhd, also, sees itself as a listed company in 6-8 years, he said while announcing a sale of 16% of the shares of his health care unit Sunway Healthcare Holdings to GIC for $ 180 million.
The offer corner
Our journalists got wind that the Indonesian insurtech startup Fuse closed a Series B round raising $ 30 million. The round was joined by the family office of Chinese billionaire Jack Ma and existing investor EV Growth.
Online furniture retailer Fabelio expects to lift a Series D round before it debuts on the stock exchange next year, CEO and co-founder Marshall Utoyo told DealStreetAsia.
Hong Kong based crypto trading and technology company Amber Group raised $ 100 million in a Series B funding round led by a private equity firm Chinese Renaissance.
Indonesian B2B fintech startup Bios Digiasia plans to raise $ 70 million to $ 200 million in equity, founder Alexander Rusli told DealStreetAsia. The company is also considering taking a minority stake in a local bank.
Online drug delivery start-up in India PharmacyEasythe parent entity of will acquire a 66% stake in the chain Thyrocare Technologies for $ 600 million.
ADB Ventures approved up to $ 2 million equity investment in Silicon Valley-based fintech startup Fairbanc to fuel its expansion in Indonesia.
Venture capital firms that have formed in China’s fierce market and have mastered the art of rapid decision-making can become a major force in growing the startup ecosystem in Southeast Asia. Randolph Hsu of Capital Ondine DealStreetAsia said in a chat this week. “If there is a good investment, I might face competition from 10 VCs in Southeast Asia, but that number would be 100 in mainland China… We need to make quick judgments,” Hsu said.
Adrian Li of AC Ventures told us in a conversation that Indonesia sees a wave of savvy founders doing their due diligence on VCs. The proliferation of capital available today, coupled with a better understanding of the VC game, has prompted many founders to be more selective about the investors they hire.
Among those who assess potential investors is Razer Fintech, the financial services arm of the Hong Kong listed gaming center Razer. “There are parties [strategics] who have already approached us from different countries. However, we want to assess them first to make sure our interests are aligned, ”said Li Meng Lee, CEO of the company.
Apis Partners Management partner Oudayan Goyal told DealStreetAsia that the financial services opportunity in Asia is important for growth equity funds. In Southeast Asia in particular, Goyal sees a significant opportunity in integrated finance.
Digital axiata, a branch of telecommunications conglomerate Axiata Group, has stepped up efforts to secure Malaysia’s digital banking license, optimistic that its partnership with local RHB Bank has solidified the consortium’s bid, Axiata Digital CEO said, Mohd Khairil Abdullah, in an interview.
ACRA files reviewed by DealStreetAsia this week showed that two directors of Lazada have resigned from the board of directors of the Alibaba property e-commerce business. However, the two executives, Frank Luo and Gladys Chun, will continue to exercise their respective roles as CFO and CEO.
Marc Machin, the former chairman of the Canada Pension Plan Investment Board (CPPIB) joined a Singapore-based venture capital firm Serendipity capital as a non-executive director. Machin had resigned from the CPPIB in February after being criticized for flouting Canada’s COVID-19 travel advisory while traveling to the United Arab Emirates.
One for the weekend
Sam Bankman-Fried is not a name that many are familiar with. The 29-year-old is no heir to a family of yesteryear basking in the spotlight.
The American billionaire – whose wealth Forbes estimates is $ 8.7 billion – built his fortune in the high-tech world of cryptocurrency as the founder of the Hong Kong-based crypto derivatives exchange. FTX.
FTX’s funding round, which is expected to end in the coming weeks, could make the company one of Asia’s most valuable new fintech companies.
It comes as China is increasingly concerned about the energy-hungry crypto industry, recently shutting down 26 bitcoin mining operations in Sichuan. The People’s Bank of China has also called on major banks and financial institutions to crack down on cryptocurrency trading.
Bankman-Fried, however, says this is only a passing phase. “I don’t see these problems [persisting] long term, ”he said.