Southeast Asia startup ecosystem slated to receive massive injection of funding after Jungle Ventures Reaching a first close of $ 175 million for its new fund, TechCrunch has come to learn.
Executives at the Singapore-based firm anticipate that the new fund, which is Jungle’s third to date, will reach a final close of $ 220 million in the coming months, a source with knowledge of the fund and its assets told TechCrunch. plans. If it were to reach that figure, the fund would become the largest for initial investments in Southeast Asia.
Jungle Ventures declined to comment.
An SEC filing published in December suggested the firm intended to raise up to $ 200 million with the fund. Their last fund was $ 100 million and it closed in November 2016. Founding partners Anurag Srivastava and Amit Anand started the fund in 2012 when they raised a debut (much smaller) fund of $ 10 million.
Digging a bit deeper, our source revealed that Jungle’s new fund includes subsidiaries of world banks IFC and Cisco Investments. – both of which invested in Jungle’s $ 18 million ‘SeedPlus’ fund – and Singapore’s sovereign wealth fund Temasek. A new sponsor that we know of is German financier DEG, although we understand that Jungle has spent a lot of time raising funds in the US market, hence the SEC filing. Beyond Europe and the US, the firm is also said to have released LPs in Asia, as you might expect, and in the Middle East.
Jungle focuses on Series A and Series B deals in Southeast Asia, with the occasional investment in India or the rest of the world where it sees global potential. An example of that is Engineer.ai, which raised $ 29.5 million last November in a round led by Jungle and Lakestar with the participation of DeepCore, SoftBank’s artificial intelligence unit.
The fund’s meat and drink is Southeast Asia, and past investments include Deskera cloud platform (most recent round $ 60 million), Reddoorz budget hotel network (raised $ 11 million last year), fintech startup Kredivo (raised $ 30 million last year) and digital fashion brand Pomelo, which has raised more than $ 30 million from investors that also include JD.com.
In India, it has supported b2b sales platform Moglix and interior design startup Livspace, among others. Past outings include Travelmob to HomeAway, Zipdial to Twitter, eBus to IMD, and Voyagin to Rakuten.
We understand that the new fund has already completed five agreements. Jungle’s trading pace is typically half a dozen investments per month, and we understand that it will continue with fund three.
Fund executives are optimistic about Southeast Asia, which is expected to experience strong economic growth thanks to increased internet access and digital spending. A much-cited report by Google and Temasek published last year predicts that the region’s “digital economy” will triple to $ 240 billion from 2025.
Other major venture capital funds in Southeast Asia include Vertex Ventures ($ 210 million fund), Golden Gate Ventures – $ 100 million and a $ 200 million growth fund – Openspace Ventures ($ 135 million), and EV’s $ 150 million growth fund.
There is also B Capital from Facebook co-founder Eduardo Saverin, who recently approved $ 400 million for the first closing of his second fund, although he does not invest exclusively in Southeast Asia, and Sequoia, which has a $ 695 million fund for India and Southeast Asia. Other global names you might see in the region are Burda, which has a local presence and starts in Series B, TPG Global, and KKR.