Before you dive into this week’s top headlines from the world of private equity and venture capital, take a moment to order something—a carton of milk, or a bag of chips—that you may have forgotten. Chances are, it’ll be delivered to your doorstep even before you reach the end of this newsletter.
In a world where waiting in line for 15 minutes at a grocery store is considered an eternity, it may not have been hard for Indian quick commerce app Zepto to convince investors of its business case. It raised $340 million in a fresh round this week led by General Catalyst, valuing the three-year-old company at $5 billion. Zepto, which has now raised more than $1 billion in just two months, also saw existing investors such as StepStone, Lightspeed, DST, and Contrary increase their stakes.
Before we move on to the other top stories from the week gone by, a reminder that DealStreetAsia’s flagship event, the Asia PE-VC Summit 2024, is around the corner. This week we released the full agenda for Day 1 of the two-day event. Be sure to attend the summit on Sept 17 & 18 in Singapore.
Funding and other startup news
Indonesia-based EV startup IMOTO is gearing up to launch its flagship VISION.ev motorcycle between March and April 2025. The company is also looking to raise $40 million through a mix of venture capital and private equity investments in the coming quarters, top executives told DealStreetAsia.
Vietnamese edtech startup Dream Viet Education JSC, the operator of learning platform Kyna English, is in talks to raise $10 million in a new funding round to fuel its expansion plans, while the English communications platform Schola has rebranded to BrightCHAMPS Vietnam and announced that it will invest close to $10 million over two years in the country.
In another transaction in the education sector, Hillhouse Investment will reportedly acquire Dulwich College International schools in Asia from their owners in a deal that could fetch around $600 million.
TransTRACK, an Indonesian fleet tracking startup, has announced raising $12 million in a Series A funding round co-anchored by Eurazeo and Singapore-based Cocoon Capital.
In other news from startups, Singapore-based Beam Mobility is being investigated by local authorities in Australia and New Zealand for manipulating monitoring software to run more e-scooters and bikes than permitted.
Meanwhile, Indonesian grab-and-go coffee unicorn Kopi Kenangan is set to expand its operations in the Philippines and India in the next few months as part of the firm’s ambitious global expansion plans.
LP-GP updates
For our LP View column this week, we interviewed Jun Wakabayashi, a principal at AppWorks. Having supported startups since its foundation in 2009 and having raised three funds, the Taiwanese startup accelerator and investment firm is now looking at more primary fund investments to cultivate the next generation of general partners (GPs). Backing VC funds has helped AppWorks amplify its impact as it enables GPs to invest in founders that the firm otherwise would not have access to, said Jun.
In another interview, we spoke to Kanchan Jain, head of BPEA Credit. The growing pool of India’s domestic LPs over the past few years reflects a significant evolution in the country’s investment landscape, Jain said. Of the total $4.8 billion raised by Indian PE and VC firms in the first six months of this year, experts say as much as 40% could be from local LPs. Having a mix of domestic and global LPs brings diverse perspectives, she added.
Swiss impact investor responsAbility Investments is closing down its Thailand office soon as part of a strategic move to streamline its Asia operations. The firm will continue focusing on core markets in SE Asia and maintain a strong presence in the region.
Healthcare-focused Quadria Capital is on track to fully exit its remaining two assets from Fund I by the end of this year, a top executive told us this week. Asked about the delay of about one year from its original exit plans last year end, Amit Varma, Managing Partner at Quadria, said, “The current exit environment is challenging, but we are on track to be fully exited out of Fund I by this year while delivering strong returns for our investors.”
Indian VC firm Cornerstone Ventures is expected to hit the first close of its second investment vehicle at $35-40 million by mid-September. The fund, launched in April this year, is looking to raise $200 million.
108 Capital, an Indian growth-stage VC co-founded by former Aavishkaar Capital partner Sushma Kaushik and ex-banker Nimesh Kampani, is in the market for its debut fund.
Silicon Valley venture capital firm Accel, which has backed Indian startups such as Flipkart and Swiggy, is expected to close its eighth India-focused fund by the end of the year. The firm is targeting a minimum of $600 million for the eighth fund.
World Bank Group member IFC is considering an investment of $30 million in the latest climate-focused fund of Temasek-backed LeapFrog Investments. DealStreetAsia earlier reported that LeapFrog is raising $600-700 million for the said fund.
Vertex Ventures China, a branch of Temasek-backed Vertex Ventures, has raised over 3.5 billion yuan ($491.4 million) for its latest RMB-denominated fund to double down on innovative technologies in China.
Deep dives and analysis
The news that Southeast Asian proptech startup PropertyGuru will soon delist from NYSE has serious implications for the region’s IPO-hopefuls. Completing a public market listing—and finding success as a listed company—is no walk in the park, as many are realising. Several Southeast Asian tech giants including Sea Ltd., Grab, and Bukalapak have shed up to 90% of their market value from their peak.
We also looked at the waste management sector this week. Cleantech has emerged as a new frontier for tech investors in Indonesia and Southeast Asia with waste management as a focus sub-segment. New townships are increasingly showing interest in waste management, driven by high-end property buyers seeking a better living environment. Waste-to-energy and upcycling—transforming waste into valuable products—are also promising sectors.
Also read this analytical take on digital banks in the Philippines. Years after the first group of digital banks began operating in the country, its central bank has opened the door for others to enter the market. However, with the frontrunners still struggling to make profits, experts are divided over the prospects for new entrants and the industry as a whole.
Private debt, where investors lend directly to businesses without going through banks or markets, was once a hot market. Now, fund managers are facing a serious test. Capital raised for private debt funds in the Asia Pacific region dropped to a seven-year low of $5 billion in 2023 from a peak of $15.1 billion in 2021, said Preqin.
However, Singapore-based asset manager Keppel sees private credit managers underwriting bigger loans to whet the rising appetite for capital in Asia Pacific. Meanwhile, Temasek-backed investment firm SeaTown Holdings announced that it had secured over $1.3 billion in commitments in the final close of its latest private credit fund.
We’ll be back next week with more insights, deals, and stories from the frontlines of venture capital. Enjoy that snack you ordered, recharge, and let the ideas simmer—successful ventures often start with a simple thought.
