One of the biggest headlines this week was Nvidia’s $13 billion acquisition of AI platform Hugging Face, which was itself in the news not too long ago for being under siege by rogue OpenAI agents.
As industry observers noted, the deal gives Nvidia control of one of the top platforms for developers of open source and weight AI models. And, it is only the latest in a multi-billion dollar spending spree, including $3.5 billion in convertible bonds in Taiwanese chipmaker MediaTek, and $105 billion to back a data centre in the US that will be leased by OpenAI.
In other AI-related news, Anthropic is reportedly due to start marketing its IPO next month; while China’s Moonshot AI has reportedly filed for a listing in Hong Kong. That could give Moonshot’s backers including Alibaba, Tencent Holdings, and HongShan Group, as well as Singapore-based Kembangan Capital Partners, a healthy exit.
Southeast Asia developments
Our latest report on fundraising in the region finds that in spite of all that has transpired, investors are still looking for exposure to the region. However, as we’ve consistently seen, capital has shifted towards scale, and LPs are favouring pan-Asian and global funds with minority allocations to Southeast Asia. GPs are responding to tougher fundraising conditions through specialisation and more differentiated structures, with energy transition and infrastructure strategies attracting robust commitments.
Meanwhile, in a DealStreetAsia exclusive, US venture capital firm 500 Global is said to be winding down its standalone investment franchise in the region. Sources told us that the VC does not plan to raise another dedicated Southeast Asia fund, and any future investments in the region are expected to come largely from its global funds.
In a LinkedIn post, managing partner Khailee Ng said that Southeast Asia continues to be an important market for 500 Global. “We are here, and here for the long haul.”
The franchise – which had vehicles named after the local spiky delight durian – has backed more than 300 companies across Southeast Asia over the past decade including Grab, Carousell, and Carsome, as well as Bukalapak and eFishery. And it was only three years ago, in September 2023, that it closed its last funds for the region, with $143 million committed by LPs including Malaysian sovereign investor Khazanah Nasional and pensions KWAP and EPF.
The Australian government’s development finance institution remains bullish on Southeast Asia. In an interview with DealStreetAsia, the Consul-General in Ho Chi Minh City Kate Wallace said Australian Development Investments expects the region to remain its primary market for deployment.
Plus, there is still significant dealmaking in the market. Among the processes we’ve reported on this week are British oil major Shell’s early talks to sell a majority stake in its gas-to-liquid asset in Bintulu, Malaysia, in a deal that could be potentially valued at around $1 billion.
Also, Malaysia-based PE firm Creador is understood to be looking for buyers for its specialty food ingredients business, Savourés Group. The business is said to have drawn interest from global multinational companies, regional private equity firms and local strategic buyers.
KKR is acquiring a minority stake in Kuala Lumpur-based hospital operator Avisena Healthcare, though the financial details were not disclosed. The investment will support Avisena’s expansion, including additional multi-specialty services at its flagship hospitals in Shah Alam and the development of new hospitals across the Klang Valley.
In Vietnam, Blue Pool Capital, the investment arm of Alibaba co-founder and chairman Joseph Tsai, is understood to have subscribed to the upcoming initial public offering of entertainment firm DatViet. Blue Pool joins Mirae Asset Global Investments and Vietnam’s Phoenix Holdings, among other investors.
The Philippine Securities and Exchange Commission has approved the long-awaited initial public offering of Mynt Inc, the parent company of mobile wallet operator GCash. The approval marks the first company in the Philippines to take advantage of the SEC’s lower public float requirements for large issuers.
Separately, DEG, a unit of the German state-owned development bank, is giving an additional $10 million loan to January Capital’s venture debt fund, which lends to growth-stage companies in Southeast Asia.
India and China deals
Morgan Stanley Private Equity Asia is said to be looking to merge its portfolio companies Omega Hospitals and ClearMedi Healthcare. The deal could pave the way for further acquisitions in the country’s healthcare sector.
Bengaluru-based health intelligence company Ultrahuman has raised $70 million in a new funding round from investors including Qualcomm Ventures, Labcorp, Alpha Wave, Blume Ventures, and Nexus Venture Partners.
DEG is also set to provide up to $17 million in financing to Bangladesh-based Healthcare Formulations, which will make vaccines for livestock and insulin products for humans.
IFC is set to invest up to $80 million in IDFC First Bank, which will be used to increase access to trade finance for SMEs in India.
And in a boost for issuers coming to market, Mumbai-based JM Financial Asset Management has raised some $74 million, or about half of its target corpus, in the first close of its pre-IPO fund.
In China, AI robotics startup Sharpa has raised 4.5 billion yuan from investors, as it shows off a robot restaurant that serves the iconic Dairy Queen Blizzard ice cream.
AusperBio, a near-commercial biopharmaceutical company with operations in the US and China, raised $120 million from a slate of investors led by a strategic, with participation from Boston-based new investor RA Capital Management and existing shareholders including Sherpa Capital, Qiming Venture Partners, and CDH Investments.
Other developments
Malaysia has emerged as Grab’s top market for sales, outpacing Singapore and Indonesia. Malaysia has a Grab-backed digital bank, and the company also owns physical supermarket chains Jaya Grocer and Everrise in the country.
PT Amartha Nusantara Raya, the investment entity linked to Indonesian fintech Amartha, is understood to be leading a restructuring exercise at troubled poultry startup BroilerX. Amartha said it has provided financing to BroilerX, as part of its expanded financing capabilities, including invoice financing, to operate across a wider segment of the Indonesian economy.
Former BRI Ventures president director Nicko Widjaja has lost his legal appeal, with the courts in Jakarta upholding his prison sentence over the venture capital firm’s investment in the failed agritech startup TaniHub.
Finally, catch up on the top private equity developments in this week’s edition of Beyond The Buyout.
