Temasek Holdings Limited, established in 1974 as a Singapore holding company, has transformed into a global investment powerhouse with interests spanning fintech, healthcare, and commercial real estate, to name a handful.
In 2019, Temasek developed the T2030 strategy, a 10-year roadmap guiding its strategic planning, capability building, and institutional development initiatives for this decade.
As part of the T2030 strategy, Temasek Holdings focuses on constructing a resilient portfolio comprising forward-looking investments.
These investments are targeted to withstand unexpected shocks, perform through market cycles, and capitalise on growth opportunities with the potential for sustainable returns above its risk-adjusted cost of capital over the long term.
In conjunction with its 50th year of operations, Temasek released its latest investments and portfolio review. For the financial year ended 31 March 2024, Singapore’s sovereign wealth fund invested S$26 billion and divested S$33 billion, resulting in a net divestment of S$7 billion.
This cautious investment stance was driven by expectations of a US recession until the Federal Reserve pivoted from its tight monetary policy in the last quarter of 2023, as well as the slower than expected pace of post-COVID recovery in China, where many recent Temasek fintech investments have been centred.
This article explores five notable Temasek fintech related investments that showcase the fund’s strategic approach to shaping the future of finance in the region.
Adyen N.V.
Temasek’s investment in Adyen N.V., a global payment company, demonstrates its commitment to digital transformation in the payments sector.
Temasek made its initial investment in Adyen in 2014 and later scaled its interest, recognising the company’s sound fundamentals and early success. As of March 2024, Temasek held a 6% shareholding in Adyen.
With Adyen’s reach, this funding could potentially accelerate the growth of both fintech and impact ecosystems in the region, as seen in likeminded collaborations between the Monetary Authority of Singapore and Temasek Trust.
Temasek’s backing of Adyen reflects a strategic focus on the payments sector as a key driver of digital transformation, aligning with its broader commitment to digitisation and innovation within the financial services industry, not just in Singapore but globally.
Partior
Temasek Holdings Limited is one of the founding shareholders of Partior Pte. Ltd., and in 2024 continues to pour investments into the blockchain-based cross-border payments fintech.
In fact, Partior was established in 2021 through a collaboration between Temasek, DBS Bank, and J.P. Morgan, with Standard Chartered joining as a founding shareholder in 2022.
In July 2024, Partior raised US$60 million in a Series B funding round, with continued support from Temasek and other existing investors.
Partior’s platform facilitates real-time, cross-border, multi-currency clearing and settlement, helping reduce delays, costs, and inefficiencies associated with traditional payment systems.
Partior’s network can interoperate with real-time local currency payment systems and RTGS (Real-Time Gross Settlement) systems worldwide, and offers advanced liquidity management solutions, such as intraday foreign exchange swaps and programmable enterprise liquidity management.
PB Fintech
Up until end of 2023, Temasek held a 5.42% stake in PB Fintech, the parent company of PolicyBazaar and PaisaBazaar.
PolicyBazaar is one of the leading online insurance aggregators in India, allowing users to compare and purchase various insurance policies, including health, life, and motor insurance. PolicyBazaar is credited with significantly contributing to increasing insurance penetration on the Indian subcontinent.
Meanwhile, PaisaBazaar is a credit comparison portal that helps users compare and apply for financial products like personal loans, credit cards, and home loans — causing it to be instrumental in making financial inclusion accessible to underserved and unbanked populations in India.
However in February 2024, Temasek sold its entire 5.42% stake in PB Fintech, for approximately ₹2,425 crore (around USD 292 million). This divestment was executed through a block sale on the stock exchanges, offloading a total of 2,44,30,015 shares which were acquired by US-based financial services company Capital Group.
Ant Group
Temasek along with fellow sovereign wealth fund GIC, participated in Ant Group’s significant Series C funding round in 2018, contributing to a total of US$14 billion. The investments by Temasek and its peers was aimed at supporting Ant Group’s global expansion and technological advancements including in its fintech interests.
Temasek has also been involved in discussions regarding the Group’s share buyback plans, reflecting its ongoing interest in the company’s strategic developments. Ant Group has significant fintech holdings, including operates Alipay, one of the largest mobile payment platforms in China, with over 711 million monthly active users.
Alipay has expanded its services to include facilitating cross-border retail payments via mobile devices, partnering with more than 30 e-wallet platforms and banking apps in regions like Southeast Asia and Europe.
Sea Limited
Temasek has also been a significant investor in Sea Limited, a global consumer internet company based in Singapore. While the exact total amount of Temasek’s investment in Sea Limited isn’t publicly detailed, Singapore’s wealth fund has been involved in substantial funding activities, including a notable investment in Sea Limited’s Series C funding round.
Temasek increased its investment in Sea Limited as part of its strategy to support the company’s growth in digital services and e-commerce. Originally starting with digital entertainment entity Garena, Sea Limited today operates two other main businesses: regional e-commerce powerhouse Shopee, and SeaMoney, its digital payments and financial services arm.
SeaMoney includes mobile wallet services, payment processing, and other financial services. It has been growing its footprint rapidly across Southeast Asia.
Shopee’s integrated mobile wallet, ShopeePay, has facilitated seamless transactions for millions of its e-commerce platform users across the region, and is widely accepted in countries including Indonesia, Malaysia, Thailand, and the Philippines.
Bonus listing: FTX
And not that long ago, Temasek invested a total of US$275 million in Bahamas-based FTX, once one of the largest cryptocurrency exchanges, across two funding rounds from October 2021 to January 2022.
This included US$210 million for a minority stake of about 1% in FTX International and US$65 million for a minority stake of about 1.5% in FTX US. However, within months of its last capital infusion, FTX’s downfall began when a report revealed that Alameda Research, a trading firm affiliated with FTX, held a significant portion of its assets in FTX’s native token, FTT, raising concerns about the financial stability of both companies.
A surge of customer withdrawals ensued, leading to a liquidity crisis. FTX filed for bankruptcy, and its CEO, Sam Bankman-Fried, was charged with multiple counts of fraud and money laundering. Following the exchange’s collapse, Temasek wrote off its entire investment.
These five Temasek fintech investments, totalling over 40% in shareholdings, demonstrate the fund’s strategic approach to shaping Asia’s financial future. From global payments solutions to product comparison innovations, Temasek is driving digital transformation across various sectors in the rapidly evolving fintech landscape.
Featured image credit: Edited from Freepik