The funding boom in Southeast Asia is expected to continue, with Jungle Ventures today announcing the first $ 225 million close of its fourth fund. Fund IV started raising in mid-May and is targeting a total of $ 350 million.
The majority of its limited partners return from previous funds, and include Temasek Holdings, IFC (which invested $ 25 million in Fund IV), DEG, and Asian and global family offices. The company says this makes Fund IV the largest of all startup funds in Southeast Asia this year.
Founded in 2012, Jungle Ventures was launched with an initial fund of $ 10 million. Then, in 2016, he announced a second fund of $ 100 million, followed in 2019 by his third fund of $ 240 million.
Fund IV is part of Jungle Ventures’ pace of raising new fund every 2.5 to 3 years, founding partner Amit Anand told TechCrunch. It also comes at a time when the region is receiving more attention and capital.
“If you look at Southeast Asia, where we are today, the ecosystem has been in operation for a long time. We started the journey in 2012. We are one of the oldest funds in the region and we haven’t seen such a good time as today to be in the tech ecosystem in South East Asia ” , did he declare.
“Opportunity and talent have always been evident in the region, and I think capital followed. But recent exit announcements, whether domestic and global acquisitions or IPOs, have in many ways completed Southeast Asia’s picture and made it much more appealing. for everyone, ”Anand added.
Jungle Ventures takes a concentrated approach and tends to invest in around 12 to 13 companies per fund. He’s relatively independent of the stage, writing seeds for Series B checks and building long-term partnerships with many of his investments. The company has invested in every turn of several companies, including buy now, pay startup Kredivo later.
This approach has worked well, Anand said. The companies in his 2016 Fund II include unicorns FinAccel and Moglist, and he pays about 7 times out of the fund today. “A similar model emerges from the 2019 vintage,” he added, which includes investments such as the beauty e-commerce platform Sociolla and KiotVet, the world’s largest point of sale and store management system for little ones. retailers in Vietnam.
Fund IV will write checks ranging from approximately $ 1 million to $ 15 million for Series B funds, and will also participate in follow-up rounds.
“We usually invest in a company when it is a bit of a product market for its home market, and then we can help regionalize the company,” Anand said. “It could be seed, it could be A, it could be B, it doesn’t matter to us.”
The sponsors of Jungle Ventures also make a significant number of co-investments; Over the past three to four years, LPs have invested nearly $ 400 million in startups in its portfolio.
In terms of sectors, Anand is particularly excited about social commerce. “I think social commerce is going to overshadow e-commerce by a huge margin in a market like Southeast Asia. Southeast Asia is not just a story about metropolitan cities, it’s a story about multiple cities of level 2, level 3 on different islands, different geographies. It is also a geography where the social fabric is deeply rooted within communities.
Jungle Ventures’ social commerce investments include Evermos, which sells halal and Sharia-compliant products through agents to their communities.
The company mainly focuses on South East Asia, but it also invests in India.
“The cross-pollination of talents and ideas, learning and capital between South East Asia and India is very strong,” said Anand. “Southeast Asia, although the ecosystem is developing a lot, the technological talents here in the region are still emerging, while India is a great source of technological talents, and we have enabled many companies in our portfolio to take advantage of this by opening technology hubs in India.
He added that “the objective of Indian investments is to help them to develop also in Southeast Asia and to seize this opportunity as well”. An example of Jungle Ventures’ portfolio is interior design platform Livspace, which was founded in India, expanded to Singapore and will enter other Southeast Asian markets.