Southeast Asia’s startup ecosystem is ready to get an enormous injection of funds after Jungle Ventures reached a primary shut of $175 million for its latest fund, Internet has come to study.
Executives on the Singapore-based agency anticipate that the brand new fund, which is Jungle’s third to this point, will attain a remaining shut of $220 million over the approaching few months, a supply with data of the fund and its plans instructed Internet. If it have been to succeed in that determine, the fund would change into the biggest for startup investments in Southeast Asia.
Jungle Ventures declined to remark.
An SEC submitting posted in December instructed the agency was aiming to boost as much as $200 million with the fund. Its final fund was $100 million and it closed in November 2016. Founding companions Anurag Srivastava and Amit Anand began the fund manner again in 2012 when it raised a (a lot smaller) $10 million debut fund.
Digging somewhat deeper, our supply revealed that the brand new Jungle fund consists of returning LPs World Financial institution affiliate IFC and Cisco Investments — each of which invested in Jungle’s $18 million early-stage ‘SeedPlus’ fund — and Singapore sovereign fund Temasek. One new backer that we’re conscious of is German financier DEG though we perceive that Jungle has spent appreciable time fundraising within the U.S. market, therefore the SEC submitting. Past Europe and the U.S, the agency can be mentioned to have pitched LPs in Asia — as you’d anticipate — and the Center East.
Jungle is targeted on Sequence A and Sequence B offers in Southeast Asia with the occasional funding in India or the remainder of the world the place it sees international potential. One such instance of that’s Engineer.ai, which raised $29.5 million final November in a spherical led by Jungle and Lakestar with participation from SoftBank’s AI unit DeepCore.
The meat and drink of the fund is Southeast Asia, and previous investments there embrace cloud platform Deskera (most up-to-date spherical $60 million), funds lodge community Reddoorz (raised $11 million final 12 months), fintech startup Kredivo (raised $30 million final 12 months) and digital style model Pomelo, which has raised over $30 million from traders that additionally embrace JD.com.
In India, it has backed b2b gross sales platform Moglix and inside design startup Livspace amongst others. Previous exits embrace Travelmob to HomeAway, Zipdial to Twitter, eBus to IMD and Voyagin to Rakuten.
We perceive that the brand new fund has already accomplished 5 offers. Jungle’s tempo of dealmaking is often half a dozen investments monthly, and we perceive that may proceed with fund three.
Executives on the fund are bullish on Southeast Asia, which is forecast to see robust progress financial progress because of elevated web entry and digital spending. A much-cited report from Google and Temasek issued final 12 months predicts that the area’s ‘digital economic system’ will triple to succeed in $240 billion from 2025.
Different main VC funds in Southeast Asia embrace Vertex Ventures ($210 million fund), Golden Gate Ventures — $100 million and a $200 million progress fund — Openspace Ventures ($135 million), and EV’s $150 million progress fund.
There’s additionally B Capital from Fb co-founder Eduardo Saverin which not too long ago handed $400 million for the primary shut of its second fund, though that doesn’t make investments solely in Southeast Asia, and Sequoia which has a $695 million fund for India and Southeast Asia. Different international names that you just may see chopping offers within the area embrace Burda, which has an area presence and begins at Sequence B, TPG World and KKR.