Temasek-backed Vertex expects at least $400 mln in new S.E.Asia/India fund
28/09/2021 09:01
By Anshuman Daga and Aradhana Aravindan
SINGAPORE, Sept 28 (Reuters) - Venture capital firm Vertex
Ventures, which is backed by Singapore state investor Temasek
TEM.UL , expects to raise at least $400 million next year for a
new fund focusing on Southeast Asia and India, a senior
executive said.
"Probably, the second quarter of next year is when we'll
kick off the process for our fund five," Ben Mathias, a
Bengaluru-based managing partner at Vertex Ventures Southeast
Asia and India, told Reuters during a visit to Singapore.
Vertex Ventures Southeast Asia and India fund is part of
Vertex Holdings' network of global funds. It raised $305 million
in its fourth fund.
The move comes at a time when start-ups and privately-held
companies are actively raising funds, both in Southeast Asia https://www.reuters.com/world/the-great-reboot/southeast-asia-tech-dealmaking-booms-investors-place-post-covid-bets-2021-08-27
and India as investors bet on post-pandemic plays.
Mathias said Vertex plans to invest money from its fourth
fund until the end of next year and then raise fund five next
year which it will start deploying in 2023.
"We have not decided how big the fund will be but it's safe
to say that it will be bigger than fund four."
Vertex Holdings, ranked as one of the biggest Southeast
Asian-based funds, has $5 billion in assets under management
across its funds and has about 200 active portfolio companies.
The funds focus on investments in their regions of industry
specialisation and are run independently.
The Vertex Southeast Asia and India fund had first invested
in Grab in 2013 when it was a start-up. Grab has now become
Southeast Asia's biggest ride-hailing and food delivery platform
and is going public through a deal that values it at nearly $40
billion https://www.google.com/search?q=southeast+asia+grab+spac+reuters&rlz=1C1GCEB_enSG875SG876&oq=southeast+asia+grab+spac+reuters&aqs=chrome..69i57.4391j0j9&sourceid=chrome&ie=UTF-8.
Vertex's portfolio includes payments firm Nium, online
grocery platform HappyFresh and PatSnap, an intellectual
property platform.
While India, Singapore and Indonesia have been the focus for
the VC firm, it is now also hunting for investments in Thailand,
Malaysia and Vietnam.
"There's...a lot of capital coming to this region, which is
a testimony to the way both Southeast Asia and India are being
viewed as very good investment opportunities," Mathias said, but
added that the interest was also driving up valuations.
"There definitely will be a correction. The question is when
that will happen," he said.
(Reporting by Anshuman Daga and Aradhana Aravindan in
Singapore)
((aradhana.aravindan@thomsonreuters.com;))