Mandiri Capital Indonesia (MCI), the corporate venture capital (CVC) arm of state-owned Bank Mandiri, announced that it is currently in the process of fundraising for its first external funding. The firm aims to raise US$100 million and expects to close the funding round next year.
MCI CEO Eddi Danusaputro said that the change in strategy, which includes the involvement of external LPs, was meant to respond to the greater needs for investment in Indonesia, particularly in the fintech vertical. This demand cannot be fulfilled solely by Bank Mandiri investors; there has to be the participation of external investors in it.
“We cannot rely solely on Bank Mandiri investors. We are currently in the fundraising process. We have travelled to Japan and South Korea; they have expressed interests in expanding to Indonesia,” Danusaputro explained at the recent Nexticorn International Summit 2019 on Friday, November 15.
Danusaputro was also confident that Bank Mandiri’s reputation as a state-owned enterprise will be an added value for global investors to trust their funds to MCI.
He also believed that there will be no significant difference between managing internal and external funds. In the past few years, Bank Mandiri has always put priority in startups that that can provide synergy with its business and ROIs.
Meanwhile, external investors may put more emphasis on how the investment can provide a good ROI.
In this fundraising process, Danusaputro has stated that the firm is aiming for US$100 million. Bank Mandiri will continue to participate in the funding round with 10 per cent or US$10 million investment.
MCI hopes to start investing from the fund next year. It will aim for startups in the fintech vertical (80 per cent), particularly in the Series A stage.
“We will continue our old hypothesis of investing in early-stage, Series A. But we are open to the possibility of investing in Series B,” Danusaputro said.
MCI began its operations in 2016, and it has been relying on annual investment from Bank Mandiri. It has channeled up to IDR980 billion (US$69 million) to 13 fintech startups.
MCI mostly participates in Series A funding rounds and co-invests with other investors. The only exception that the firm has made was a Series B for Investree in 2018.
By the end of the year, MCI is set to announce its latest investment in a wealth management platform. But Danusaputro declined to give further details on this matter.
The latest funding round that the firm announced was a US$1 million pre-Series A round for Crowde.
A similar strategy of involving external LPs had also been implemented by MDI Ventures for their third fund. They also aimed for the exact amount of US$100 million, with South Korea’s Kookmin Bank as one of the participating investors.
MDI Ventures also works with investors from the Middle East and Southeast Asian countries such as Thailand and Singapore.
—
The article Mandiri Capital Debut Galang Investasi Eksternal, Targetkan Dana 1,4 Triliun Rupiah was written in Bahasa Indonesia by Marsya Nabila for DailySocial.
Want to learn more about fintech in Malaysia? Get the e27 Malaysia Fintech Ecosystem Report 2019 here.
Image Credit: Josh Appel on Unsplash
The post Mandiri Capital to debut externally-sourced fund, aims to raise US$100M appeared first on e27.