Vertex Ventures Bets Big on SE Asia and India With US$541 Million Fundby Fintech News Singapore September 12, 2023
Vertex Ventures Southeast Asia and India (VVSEAI) has secured US$541 million for its fifth and biggest fund, exceeding its target of US$450 million. VVSEAI Fund V is 80% larger than VVSEAI Fund IV which was raised in 2019.
A subsidiary of Temasek Holdings, Vertex Holdings has six funds are based across Southeast Asia and India, the U.S., China and Israel. The funds, which are focused on different regional markets, are managed by its own general partners and investment teams.
VVSEAI will focus on early stage startups in Southeast Asia and India, with a primary focus on Singapore, India, Indonesia, Thailand, Vietnam, Malaysia and other emerging hubs across the region.
Vertex will invest in startups from various sectors including but not limited to enterprise, consumer internet, enterprise, fintech, health and wellness, mobility and sustainability.
The fund also includes a dedicated co-investment of US$ 50 million alongside the main fund in startups led by women founders.
New investors that have joined the fund include Japan Investment Corp., International Finance Corp. (IFC), and Germany’s DEG while existing investor Cathay Life Insurance Co. also participated.
Among the fintech startups in Vertex’s portfolio are cross-border payments company Nium, crypto exchange Binance, and SME financing platform Validus.
“We continue to be bullish about the tech startup opportunities in this region as we see the ecosystem evolving deeper and becoming more mature. We have been an early, and in many cases, the first institutional investor in successful Southeast Asian and Indian startup companies.
Our investment approach has always been, and will continue to be – investing selectively and judiciously. We do not believe in being a prolific investor, but in closely partnering founders and supporting them throughout their journey through ups or downs. This approach has enabled us to build unicorns including Grab, Patsnap, Nium, FirstCry.com (BrainBees Solutions Pvt. Ltd.), Xpressbees (BusyBees Logistics Solutions Pvt. Ltd.) and Licious,”
said Chua Kee Lock, Managing Partner at Vertex Ventures.
“Our earlier funds have had superior cash-on-cash returns and are outperforming benchmarks. This track record led most of our investors from VVSEAI Fund IV to return as investors in VVSEAI Fund V and increase their allocation.
In addition, we expanded our total investor base significantly and are happy to welcome all our Limited Partners.”
said Ben Mathias, Managing Partner of Vertex Ventures Southeast Asia and India.
This article was updated at 11.31 am to reflect Vertex’s official statement.