The standout fund in Indonesia to date has been East Ventures, an early-stage VC based in Jakarta and Singapore that has made 26 investments since its founding in 2010. Many of the current Indonesian funds are primarily focused on incubation and seed funding, and therefore tend to be sub-US$ 1 million. The big deals to date have mainly been acquisitions by Indonesia’s media conglomerates, although larger growth-stage tech funds are becoming increasingly active.
First, the most active Indonesian funds and incubators:
East Ventures was the first investment fund to focus on the tech sector in Indonesia. It was formed in 2010 with backing from a mix of Indonesian and Japanese investors. The fund focuses solely on the consumer market and is an early-stage investor, specialising in pre-launch and smaller-scale high-growth tech companies. Its big successes to date have been the sales of Disdus (to Groupon) and Kaskus (to Kompas), plus its early investment in Tokpedia.
GDP Ventures was set up in 2010 as an offshoot of the Djarum Group, Indonesia’s fifth largest conglomerate. GDP was initially established as a growth-fund to invest in more mature tech companies with an existing track record, and its first investment was in Kaskus, Indonesia’s largest community portal. But in 2011 the fund launched the E-commerce site Blibli.com as a startup, albeit a well-funded one. GDP also owns the incubator MerahPutih (detailed separately below).
Ideosource is Indonesia’s most active incubator, with a total of 11 companies either in their early stages of funding or under incubation. The company funds a broad range of startups in the consumer market, including platform companies targeting users outside Indonesia.
MerahPutih is the incubation arm of GDP Ventures. It currently has 8 ventures under incubation (including the top tech sector news site, Daily Social), although so far it has not brought other investors into its incubating companies.
Second, funds that have the potential to challenge the above leaders:
|Nusantara Ventures was formed in 2012 with backing from the Bakrie Group (Indonesia’s seventh largest conglomerate) and IDG Ventures. Its sole announced investment has been in online marketing agency ClickTrue, although it also claims investments in (as yet unnamed) E-commerce, retail and gaming companies.|
|Saratoga Capital is Indonesia’s most successful Private Equity fund, with over US$2bn of assets under management. It was an early investor in rumah123.com, although it has since been focusing on the telecoms, energy and transport industries.|
|Grupara was launched in 2011 as the venture arm of the Medco Group, one of Indonesia’s largest energy companies. Grupara is focused on incubating new startups with seed stage investment ranging from $10,000 to $50,000, and completed its first two investments in late 2012 and early 2013.|
|Batavia Incubator launched in 2011 as a joint venture between Japan-based incubator Rebright Partners, and Corfina Group, an Indonesian financial group. Their incubation of E-commerce vertical Bukalapak successfully attracted a second round of funding from Japanese VC GREE Ventures in 2012.|
|InvestIdea focuses on accelerating early-stage web/mobile application and technology companies in Indonesia, with 4 companies currently announced as being under incubation.|
And finally, the most active Indonesian conglomerates in the tech sector:
|CT Corp, previously known as Para Group, purchased Detik.com in July 2011 in what was Indonesia’s biggest internet deal, valued at between US$40m and US$60m. CT Corp is Indonesia’s 11th largest company, with multiple business units in media, finance and energy.|
|MNC (owned by PT Global Mediacom) is Indonesia’s largest media group. Its first major venture in Indonesia was online marketplace Rakuten Belanja, in partnership with Japan’s largest e-commerce provider. In 2013 it began a second major partnership with Chinese internet giant, Tencent, to develop online opportunities in Indonesia.|
|Kompas Gramedia Group owns the highest circulation newspaper in Indonesia, and its online news site kompas.com is on the the most trafficked sites. Kompas purchased Urbanesia, a social city guide, in early 2012, and is known to be looking to further develop its internet properties.|