Southeast Asia’s funding boom is set to continue, with Jungle Ventures announcing today the $225 million first close of its fourth fund. Fund IV began raising funds in May and is currently targeting $350 million.
Most of the limited partners have returned from prior funds. These include Temasek Holdings and IFC, which put $25 million into Fund IV, DEG, and Asian and Global family offices. According to the firm, Fund IV is now the biggest fund of all early-stage Southeast Asian funds this year.
Jungle Ventures was founded in 2012 with a $10,000,000 debut fund. In 2016, the company announced a second $100 million fund. The $240 million fund was followed by a third in 2019.
TechCrunch’s founding partner Amit anand said that Fund IV is in line with Jungle Ventures pace of raising new funds every 2.5-3 years. It also happens to come at a time when the region is getting more attention–and capital.
The ecosystem was in place for many years, as can be seen by the state of Southeast Asia today. The journey began in 2012. He said that we are one of the most established funds in the region, and have never seen a better time to participate in Southeast Asia’s tech ecosystem.
The region was always a hub for talent and opportunity, so capital is a natural result. The recent announcements of exits, including acquisitions and international IPOs have in many ways completed the Southeast Asia picture and made it more appealing to all,” Anand said.
Jungle Ventures uses a focused approach to investing and invests in approximately 12-13 companies for each fund. The firm is relatively non-stage-specific, and writes Series A checks through seed. Many of its investments are long-term partners. The firm has invested in every round of several companies, including buy now, pay later startup Kredivo.
Anand said that this approach worked well. It is currently paying 7x the amount for its 2016 Fund II, which includes unicorns FinAccel & Moglist. He said that the 2019 vintage shows a similar pattern, and includes investments such as the beauty ecommerce platform Sociolla, and KitVet which is the biggest point-of sale and store management system in Vietnam for small retailers.
Fund IV will issue checks for amounts between $1 million and $15 million to Series B funds. It also participates in the follow-up rounds.
Anand stated that “we typically invest in companies when they have a bit of product-market fit within their home markets, then we can help localize the business.” It could be seed or at A. We don’t care what it is.
Jungle Ventures limited partners do a lot of co-investments. In the past three to four year, LPs invested nearly $400 million in portfolio startups.
Anand particularly loves social commerce in terms of the different sectors. In a market such as Southeast Asia, I believe social commerce will surpass e-commerce. Southeast Asia is more than just about metros. It’s also about many Tier 2 and Tier 3 cities on different islands. This is a place where social fabric is deeply embedded within the communities.
Jungle Ventures has Evermos as a social commerce investment. This company sells Sharia and Halal products through their agents.
While the firm’s primary focus is on Southeast Asia and India, it does make investments in India.
Anand stated that there is a strong cross-pollination between India and Southeast Asia in terms of ideas and talent. Although the Southeast Asia ecosystem is rapidly growing, there is still a lack of talent in this region. India, however, is an excellent source of talent and many of our portfolio companies have been able to take advantage of that fact by creating tech hubs in India.
He said that Indian investors should be able to expand into Southeast Asia and take advantage of this opportunity.
Publié Mon, 13 Sep 2021 at 00:32.03 +0000