DealStreetAsia’s monthly deal reviews based on proprietary data revealed a slightly contrasting picture from two of the biggest regions of Asia. Startup fundraising remained subdued in Southeast Asia in July due to the absence of large-ticket deals. At $504 million, the value of funding deals in the region last month was down 17% from June.
On the other hand, investors ramped up transactions in the Greater China market in July, closing 184 deals, 17.2% higher compared with June. At almost $2.9 billion, the monthly deal value was on a par with the previous month.
Moving onto the other developments of the week.
LP-GP news
Swedish alternative investment giant EQT is raising $12.5 billion for its new Asia-focused fund. On Friday, the company announced that it will acquire Southeast Asian property technology platform PropertyGuru in a take-private transaction which values the latter at $1.1 billion. EQT has also agreed to acquire KJ Environment and affiliated companies from Seoul-based investment firm Genesis Private Equity to establish a waste treatment platform in South Korea.
Private equity major Carlyle has sought an extension for the closing of its latest Asia fund, Bloomberg reported, adding that the firm is said to have raised $3 billion so far for the vehicle launched in mid-2022. Carlyle Asia Partners VI had an original target of $8.5 billion, which was reportedly slashed to $6 billion.
Redbird Innovation Fund, a HK$500-million ($64 million) initiative launched by the Hong Kong University of Science and Technology in April this year, is targeting to back three general partners as it carves out its first tranche of investment.
Malaysia-based boutique investment firm JIA Asset Management is looking to ramp up its allocation to alternatives, following its first primary fund investment in venture capital fund Vynn Capital Mobility and Supply Chain Fund, according to a top executive.
Janus Henderson is buying private credit manager Victory Park Capital, as it seeks to expand its footprint in the private credit lending space.
Deal corner
Indonesian farming-as-a-service startup Beleaf Farms, which had raised $6.85 million in a Series A round led by Alpha JWC Ventures in August 2023, is in the final stages of sealing an extension round of up to $6 million.
Global venture capital firm Antler, known to incubate nascent startups from day zero, announced that it has made the final close of its second Southeast Asia fund at $72 million. In an interview with DealStreetAsia, Antler Vietnam partner Erik Jonsson said the company will commit $6 million to support 10 innovative local startups over the next nine months.
Ant Group Co. Ltd., the fintech giant backed by Alibaba Group Holding, is in talks to buy Haodf.com, a Chinese platform that provides online consultations with doctors.
Eximius Ventures, a pre-seed stage venture capital firm, is planning to double the size of its second fund which is likely to be launched in the fourth quarter of this year, as investors look to cash in on India’s long-term growth potential amid global uncertainties.
Indian furniture hardware company Ebco has sold a majority stake to private equity giant Warburg Pincus. The promoters will retain a significant minority stake in Ebco and will be actively involved in the future growth of the business.
Indonesian property buying and renting platform Jendela has raised $2.7 million in Series A funding, according to regulatory filings accessed by DealStreetAsia.
Incubate Fund, a Tokyo-based venture capital firm, has closed its third India-focused fund at $30 million, below its initial target of $50 million, a top executive at the firm said.
Indonesian telecom providers XL Axiata and Smartfren Telecom have taken their $3.45-billion merger talks forward by appointing underwriters for the potential deal.
Syfe, a robo adviser and investment platform operator based in Singapore, has announced raising $27 million, from new and existing venture capital investors.
Indian electric two-wheeler manufacturer Ather Energy has raised $71 million from the government-backed National Investment and Infrastructure Fund Limited (NIIF), at a valuation of $1.3 billion.
PINTAR, an Indonesian edtech company, is expanding into trade-based education and job placements through the acquisition of Gredu, Kerja.io, and Hiringmaps.
Guidewheel, a US-based AI platform for factories, has announced raising $31 million in its Series B funding round led by Decarbonization Partners, a partnership between asset manager BlackRock and Singapore state investor Temasek.
Global Fintech Innovations Inc (Mynt), the Alibaba-backed parent company of the Philippines’ major finance super app GCash, is reportedly eyeing a digital banking licence in the country.
Global IBO Group Ltd (GIBO), an Asia-focused animation creation and streaming platform, announced a business combination agreement with Bukit Jalil Global Acquisition 1, a Malaysia-based special purpose acquisition company (SPAC).
Chinese electric vehicle maker Human Horizons is seeking debt financing of up to 300 million yuan ($41.78 million) to resume production at its EV plant, as the parent firm of premium EV brand HiPhi has filed for a pre-bankruptcy process.
Beijing Facishare Technology, a Chinese Software-as-a-Service (SaaS) firm specialising in customer relationship management (CRM) solutions, has raised $75 million to upgrade its product suite and ramp up global expansion plans.
US private equity fund Advent International has invested an undisclosed amount in Chinese pet food manufacturer Seek Pet Food, according to an announcement.
In yet another deal in India’s booming eyecare sector, the founders of Sharp Sight Eye Hospitals are in talks to sell a controlling stake in the company, a move that will also pave the way for the exit of their private equity investor InvAscent.
India’s Bharti Enterprises said it would acquire a 24.5% stake in BT, worth about 3.2 billion pounds ($4 billion), buying out the British company’s top investor, telecoms tycoon Patrick Drahi, as his Altice Group struggles with high debts.
India’s top steelmaker JSW Steel will buy a 67% stake in an Australian private firm for $120 million in a bid to expand its coal reserves.
Neo Group, India’s wealth management firm for HNIs, UHNIs, and multi-family offices, has raised Rs 400 crore ($47.8 million) in its latest funding round led by Japan’s MUFG Bank and New York-based Euclidean Capital.
Indian budget hotel chain OYO has raised about $175 million (Rs 1,457 crore) in its Series G funding round from a consortium of investors, per a report.
Sumitomo Mitsui Banking Corp has more than doubled its stake in Jefferies Financial Group to 10.9%, deepening an alliance dating back to 2021.
Family-owned candy giant Mars, whose brands include M&M’s and Snickers, is nearing a deal to acquire Kellanova KN, maker of snacks such as Cheez-It and Pringles, for nearly $30 billion.
Malaysia’s top mini-market chain retailer 99 Speed Mart Retail Holdings launched an initial public offering (IPO) on Thursday that would raise 2.36 billion ringgit ($532 million), the country’s biggest IPO in seven years.
India’s JSW Cement has filed draft papers for an initial public offering worth up to 40 billion rupees ($476.7 million), aiming to cash in on the country’s booming stock market and strong demand for the building material.
Japan’s SoftBank Group and conglomerates from South Korea and Thailand will join a $130-million fund aimed at making quick and “sizable” investments in AI startups, Nikkei Asia reported.
Deep dives
Indonesia has long been hailed for its booming digital economy, bolstered by a large population, growing middle class, and youthful, tech-savvy demographic. However, a closer examination reveals a more complex reality. Companies that once rode the wave of cheap capital are facing a harsh new reality as funding sources dry up.
Critics say that PDD’s bare-knuckle pricing strategies, combined with the controversial penalty system, are inflicting pain on merchants and upending the entire industry. Merchants allege other issues too, including a recommendation system that incentivizes intellectual property infringement.
US-based short-seller Hindenburg Research has alleged that the head of India’s market regulator, Madhabi Puri Buch, previously held investments in offshore funds also used by the Adani Group. Buch, however, said the report’s allegations were baseless.
Fresh-faced Vietnamese students are jumping into the semiconductor industry as a boom in artificial intelligence has boosted demand for chip engineers. The government has a target of training at least 50,000 chip engineers and designers by 2030.
Vietnam-based venture capital firm FEBE Ventures, which announced its $75-million second fund in November last year, is actively investing in Silicon Valley, Brazil, and India and aiming to enhance its portfolio with companies capable of scaling internationally.
Vietnam’s startup ecosystem is experiencing a notable downturn in fundraising, particularly in the late stages. In Q2 2024, Vietnamese startups managed to raise only $20 million from investors, according to DealStreetAsia DATA VANTAGE’s SE Asia Deal Review: Q2 2024 report. This marks a sharp decline from the $293 million raised in Q2 2023, $264 million raised in Q2 2022, and $873 million in 2021.
Earning updates
Nasdaq-listed superapp Grab recorded a 17% year-on-year increase in its revenue in Q2 2024 to $664 million. The Southeast Asia tech giant, which has adopted severe cost-cutting measures lately, saw its quarterly loss in Q2 decrease by 54% to $68 million from $148 million a year ago, primarily due to an improvement in group Adjusted EBITDA. After hitting an all-time high in on-demand GMV, monthly transacting users, and group revenues in the quarter, Grab aims to sustain the momentum by scaling its ecosystem, driving AI-led profitable growth, and maintaining cost discipline.
NYSE-listed Sea Limited reported a year-on-year revenue growth of 23% in Q2 2024 at $3.8 billion, beating analysts’ estimate of $3.71 billion. It booked a net income of $79.9 million during the reporting quarter, compared with a net loss of $23 million in Q1. During the earnings call, chairman and CEO Forrest Li Sea said Shopee will continue to prioritise price competitiveness, service quality, and content ecosystem as it aims for positive adjusted EBITDA in Q3 2024.
BillEase, a Philippines-based BNPL and consumer finance startup, swung to profit in 2023 as it grew its user base and expanded its merchant partnerships in the country, regulatory filings show.
Singapore plant-based milk brand Oatside reduced its losses by 59% in 2023 on the back of a threefold surge in revenue, according to regulatory filings. The company reported a net loss of S$2.2 million in 2023, down from S$5.3 million in the previous year.
Thunes, a global cross-border payments company, reported a nearly 32% jump in losses during the financial year ended December 31, 2022, despite significantly higher revenues, ACRA filings showed.
Indonesian fintech BukuWarung managed to rein in expenses and cut down its losses by three-fourths to $6.3 million during the financial year ended December 31, 2023, from $25.2 million in 2022, according to regulatory filings.
China’s Tencent Holdings reported an 8% rise in second-quarter revenue, driven by a recovery in its gaming business after the launch of a new mobile game in May that got off to a strong start.
India’s top e-scooter maker Ola Electric reported a bigger quarterly loss, hurt by subsidy cuts and a surge in depreciation costs, but said it was inching closer to breaking even in a key profit metric.
Alibaba Group Holding missed market expectations for first-quarter revenue, as the company’s domestic e-commerce sales came under pressure from cautious spending by Chinese consumers in a faltering economy.
Chinese e-commerce group JD.com reported forecast-beating second-quarter profits, helped by price cuts that attracted cost-conscious shoppers to its platform.
And last but not the least…
Just four weeks to go for the year’s most awaited event for startups and investors — the Asia PE-VC Summit 2024. Grab your seat now!
