Dec 12, 2019

MDI Ventures, S Korea’s KB Investment JV fund targets to close at $150m

MDI Ventures, the corporate venture arm of the country’s largest telco operator Telkom Indonesia, has formed a joint venture fund with KB Investment, a unit of South Korea’s financial giant KB Financial Group.

The joint venture fund is targeting to close at $150 million.

In a filing with the Indonesia Stock Exchange (IDX) on Wednesday, MDI Ventures said, the JV,  Centauri Fund, will also raise capital from external investors (LPs) with KB entities and Telkom Indonesia being anchor backers.

According to the filing, MDI will invest a maximum of 10 per cent from the capital raised by the Centauri Fund across tech startups in Southeast Asia. It seeks to start disbursements from January. In September, KB Investment managing partner Eric Yoo told DealStreetAsia that the fund will look to write cheques in the range of $2-3 million to support Southeast Asian startups at Series A-B stages.

KB Investment has been investing in around five Southeast Asian companies a year since 2013. The joint fund will strengthen its presence in the region.

KB Investment parent company, KB Holdings, is known as one of the largest financial groups in Korea, with assets under management of $400 billion. The group chairs numerous subsidiaries and assets including KB Kookmin Bank, KB Kookmin Card, KB Investment & Securities, and KB Life Insurance. 

Telkom Indonesia is a multinational state-controlled telco company listed on multiple exchanges. Its main business includes internet, IT service, data communication, and fixed-line phone service.

A slew of Korean and Southeast Asian entities have formed joint funds to set up a strong foothold in the region. Korean VC firm InterVest has a partnership with Indonesia’s Kejora and conglomerate Hanwha has set up a joint fund with Golden Gate Ventures.

Meanwhile, Shinhan Financial Group has set aside $25 million for investments in Vietnam, Indonesia, and South Korea through its accelerator Shinhan Future’s Labs.

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(Deal Streen Asia)