As we reach the fag end of the year, let us take a moment to reflect on what will linger in our collective memory when we look back on 2024.
It was a year of monumental shifts — the rise of AI reshaping industries and investor playbooks; a global push towards green energy and electric vehicles amid one of the hottest summers on record; Donald’s Trump’s return to the White House and its implications on investments in China; the unrelenting funding winter in Southeast Asia; the push for startups to prioritise profitability over unchecked growth; and the need to uphold governance principles.
The importance of governance was driven home once again this week as DealStreetAsia broke the news that eFishery, one of Indonesia’s most celebrated unicorns, has suspended its co-founders amid an investigation into “financial misreporting”. The news sent ripples through the Indonesian startup ecosystem, which is already grappling with economic headwinds, operational challenges, and a sobering reevaluation of business models.
This development serves as a reminder that with growth comes scrutiny, and resilience lies in transparency.
In other news, a unicorn was minted in Southeast Asia, while AI and EV startups raised record funding rounds.
Also, have a look at a list of some of the panel discussions we plan for our Indonesia PE-VC Summit 2025 in Jakarta on Jan. 16. Be sure to book your tickets and join delegates as we discuss the opportunities & risks amidst reset in Southeast Asia’s anchor market.
Year-enders
We published stories this week that wrapped up 2024 and also looked ahead into 2025.
In a year marked by severe funding drought in Southeast Asia, Malaysia’s private and public markets were a standout. Several initiatives — from sovereign funds to VC firms — were launched in 2024 to drive investment.
We also compiled 2024’s significant secondaries deals in Asia that may signal the way forward for such transactions going into 2025. As funds under management near their expiration dates and exit conditions remain lacklustre, PE players are increasingly considering secondaries buyers for their prized assets in Asia.
In India, big-ticket transactions witnessed a spurt this year. There were 32 megadeals worth $6.54 billion, marking a jump of nearly 30% in value. However, no single transaction touched $1 billion. Quick commerce startup Zepto’s $665-million fundraising in June marked the biggest funding round in 2024.
China endured another year of headwinds and the cloudiness over investor sentiment has not completely cleared. We identified five trends that may shape the Chinese private equity landscape in 2025.
LP-GP updates
For our LP View column this week, we interviewed Doug Coulter, a partner at the global alternative investing specialist LGT Capital Partners. Coulter believes Asia’s private equity sector is poised for bigger things as China, India, and Japan present unique opportunities, but its success hinges on a disciplined approach.
Singapore’s January Capital has collected more than $85 million in the first close of its debut private credit fund.
GLP Capital Partners (GCP) has closed another fund in its RMB-denominated China income fund series, garnering about $383 million.
Alibaba Entrepreneurs Fund, a Hong Kong-based not-for-profit initiative launched by Alibaba Group, has launched a $150 million maiden fund targeting AI application opportunities. AEF NextGen Fund has already hit its first close.
DEG committed to invest about $15 million in the second India fund of PE firm Amicus Capital Partners.
Singapore’s sovereign wealth fund GIC said it will invest an additional $150 million into India-based Asia Healthcare Holdings.
Kuala Lumpur-based Creador‘s sixth fund has secured a $40-million equity commitment from Canadian development finance institution FinDev Canada. Creador VI LP was launched with a target to raise $750-800 million.
Startup fundraising
A unicorn was minted in Southeast Asia in the final week of the year. Singapore-based digital banking group Tyme enter the coveted club after raising $250 million at a valuation of $1.5 billion led by Brazilian neobank Nubank.
Meanwhile, Singapore-based Insurtech unicorn bolttech raised over $100 million in a Series C round that valued the company at $2.1 billion, up from $1.6 billion in May 2023.
Investor money also flowed into global AI startups. Databricks secured a $62 billion valuation after raising $10 billion in one of the largest VC funding rounds in history, underscoring the unprecedented appetite for AI-focused startups.
SandboxAQ raised more than $300 million in funding, valuing the startup spun off from Alphabet at $5.6 billion, as it aims to fast-track the development of advanced AI systems for computation.
There were big funding rounds in China too.
Zhipu AI, one of China’s top LLM startups, pocketed $411.8 million from existing shareholders including Legend Capital.
Chinese smart electric vehicle firm Avatr Technology raised $1.52 billion from investors including China’s Chongqing Changan Automobile, marking the largest fundraising by a Chinese EV brand this year.
China’s Chunqing Technology, a subsidiary of Geely-owned Farizon New Energy Commercial Vehicle Group, claimed a post-money valuation of over $1.5 billion after raising $135 million.
Meanwhile, Southeast Asia fintech player Funding Societies, known as Modalku in Indonesia, raised $25 million in equity investment from Cool Japan Fund (CJF), Japan’s sovereign wealth fund. The deal marks CJF’s first investment in a fintech company in Southeast Asia.
AI Hay, a Vietnamese AI-driven knowledge discovery platform backed by Square Peg, is understood to be in talks with investors to raise a new funding round.
Indonesian SME-focused SaaS startup Mekari has laid off 5%, or about 70, of its staff as part of its strategic focus to realign resources and prioritise high-impact initiatives.
Indonesian startup Magalarva, which transforms food waste into animal feed, has secured an undisclosed sum from angel network Bali Investment Club (BIC).
Bukalapak co-founder Achmad Zaky has invested in two edtech startups — Spain’s Smartick and Indonesia’s BATAS — through his venture arm Achmad Zaky Foundation. “Both investments were under a million dollars each,” Zaky told DealStreetAsia.
India’s Sterlite Power raised $85.5 million for its Global Products and Solutions (GPS) business from GEF Capital Partners and ENAM Holdings.
Indian cloud kitchen startup Rebel Foods raised an undisclosed amount from KKR, a week after Temasek reportedly invested in its $210 million Series G round.
Multiples Alternate Asset Management acquired a significant minority stake for $35 million in INSTANT-XP, a tech-enabled B2B express logistics company in India.
Japan-listed cosmetics giant Kose has acquired Thai holistic beauty and wellness brand Panpuri from local PE firm Lakeshore Capital and shareholders.
Dispatch from public markets
We got wind this week that Malaysian retail chain Eco-Shop is understood to be exploring an IPO in the first half of next year, aiming to raise as much as $250 million. The company is seeking a market capitalisation of $1.6 billion upon listing. Its private equity backer Creador, might exit through the initial share sale.
Shares of the Indonesian unit of Malaysia’s MR.DIY listed on the Indonesia Stock Exchange (IDX) this week after raising 4.16 trillion rupiah in its IPO. The shares swung from an intraday low of 1,240 rupiah apiece to a high of 1,900 rupiah and closed the day at 1,690 apiece, i.e. up 2% from the IPO price.
Fast fashion retailer Shein is considering asking UK regulators to waive listing rules that require at least 10% of its shares to be sold to the public in its planned London floatation.
In India, Blackstone-backed Indian hotel operator Ventive Hospitality has set a price band of Rs 610-643 per share ($7.19-$7.57) for its IPO, while Carraro India, a unit of Italian vehicle transmission systems manufacturer Carraro International, has set a price band of Rs 668-704 per share ($7.87-$8.29) for its downsized $147 million initial share sale.
Shares of India’s Vishal Mega Mart surged in debut trade this week, giving the budget retailer a valuation of $5.8 billion as investors bet on the company’s growth.
India’s MobiKwik shares soared 85% in their trading debut, valuing the financial technology firm at about $474 million, as investors bet on its prospects in a booming online payments market.
Analyses and interviews
This week we released a report on funding for climate tech startups in Southeast Asia for DATA VANTAGE subscribers. Total private funding declined 22.1% YoY to $649.8 million, per The State of Climate Tech in SE Asia 2024 report.
We also released an analytical piece on Indonesia’s warung-tech startups, which are facing tough times. Lummo and Ula, for instance, have bowed out under pressure; while GudangAda and Credimart, which started out by streamlining procurement processes for warungs have since ventured into adjacent sectors within e-commerce. The supply-chain landscape in Indonesia is complex and costly, forcing many to pivot, or switch to asset-light models.
In a deep-dive on India’s jewellery market, we examined how digital-first, D2C jewellery brands are embracing a new wave of innovation. These disruptors, reshaping how Indians buy and perceive jewellery, is not only winning over consumers but also catching the eye of investors.
India is also witnessing a high demand for specialty brews that has spurred the rise of local coffee startups such as Blue Tokai, Third Wave Coffee Roasters, Rage Coffee, and Subko Coffee Roasters, all of which have raised funds from investors. The country’s coffee market is projected to reach $2.6–3.2 billion by 2028, prompting PE investors to pump money into this segment.
Japanese VC Global Brain is looking to significantly expand its presence in SE Asia through a partnership with Singapore’s SEEDS Capital, said its Partner and Singapore Office Representative Tatsuya Matsumoto in an interview. The firm is looking for opportunities in foundational AI models and infrastructure, and application-based solutions that enhance business productivity.
Indonesian conglomerate Mayapada Group is crafting ambitious plans to expand and enhance its healthcare business. In an interview, Jonathan Tahir, the chairman and Group CEO of Mayapada Healthcare Group explained the company’s plans to set up new hospitals in Batam, Surabaya, and Lebak Bulus (Jakarta).
Early-stage, technology-focused Indian VC Unicorn India Ventures is anticipating 4-5 exits in 2025. It also expects to make the final close of its third fund by March 2025, targeting a corpus of $118.5 million, founder Anil Joshi told DealStreetAsia.
Finally, here’s to a thoughtful close to the year and a hopeful start to the next — see you in 2025!
