East Ventures Scores 8 Trillion Rupiah Fund to Focus on Growth Stage Funding

East Ventures announced to secure $550 million (8 trillion Rupiah) fund from various investors. The details stay undisclosed except the participation of Z Holding Group. In addition, it is backed by previous investors with 120% re-up rate.

In an official statement, East Ventures' Co-founder & Managing Partner, Willson Cuaca said that his team has now transformed from an early stage to a multi-stage investor, as well as an efficient and strong platform to support entrepreneurship.

Of the total funds raised, $150 million will be allocated for early-stage funding and $400 million for advanced-stage funding.

“We are very optimistic with Indonesia while keeping tabs on the global market. We have built a track record of strong returns for more than a decade and now the flywheel effect of the ecosystem has begun. East Ventures is in the right position to take the wheel,” he said, Tuesday (10/5).

Further detailed, East Ventures has experienced significant growth in its portfolio, with more than 200 startups from early and growth stages. Later, in charge for more than $1 billion AUM (Asset Under Management) and recorded a total $6.7 billion follow-up. The company is claimed to record over $86 billion in GMV in aggregate based on its portfolio.

East Ventures' Managing Partner, Koh Wai Kit also said, “We are grateful for the strong support from sovereign wealth, institutional investors, corporations, family offices, and other global limited partners. As we continue our journey from institutionalization, we will do our best to drive meaningful value for our partners in Southeast Asia's technology ecosystem.”

One of the rep from this round's investor, Z Holding Group, Shinichiro Hori. He said, “[..] As Z Holdings Group, we are honored to double our investment in East Ventures through this new fund. We are keen to continue working together to build the future of Southeast Asia's technology ecosystem."

East Ventures has launched various strategic initiatives to support the progress and development of Indonesia as a whole, including its digital transformation through the East Ventures annual report - Digital Competitiveness Index; and ensure sustainable investment and practice by being the first venture capitalist in Indonesia to sign the Principles of Responsible Investment (PRI), a UN-backed network of investors, and to be actively involved in strategic initiatives to support stakeholders, including governments, businesses , and society.

This funding round was more than double the amount announced by the company at the beginning of the pandemic, in June 2020. Back then, East Ventures aimed for the 8th fund to raise $88 million from various LPs, including Pavilion Capital and Adams Street Partners. It is focused on channeling additional capital for startups that emerged post-lockdown after the Covid-19 pandemic.

ESG Initiative

Previously, the company launched the "Sustainability Report 2022" to describe the impact -along with its ecosystem - by involving the Environmental, Social, and Governance (ESG) framework and practices in achieving a brighter future. sustainable and inclusive.

This report is part of the company's over-a-decade working with hundreds of entrepreneurs in achieving society's improvement as a whole.

East Ventures' Managing Partner, Roderick Purwana said, in applying ESG practices and frameworks in the investment process, the company prepared a team with global and regional experience in multi-industry. Under the Investment Committee, the group strengthens ESG leadership to oversee ESG compliance, policies, investment processes and standards.

Furthermore, developed a Sustainable Investment Network (Sustainable Investment Network) to measure, track and improve its portfolio's impact on the environment, economy and society. For its sustainability investment strategy, East Ventures applies two approaches – Doing Good and Avoiding Harm.

Doing Good means providing and enabling its investment to grow in a sustainable market proposition to optimize impact on beneficiaries. Meanwhile, Avoiding Hazards means anticipating and mitigating risks or potential adverse social and environmental impacts on portfolio business practices.

He continued, in measuring and monitoring good deeds and avoiding harm, his team applies a responsible investment approach in the processes, standards and tools used in the investment cycle.

“There are five investment phases we designed: screening, due diligence, investment decisions, post-investment, and exit. In addition, as a signatory to the PRI (Principles for Responsible Investment), East Ventures will incorporate the six principles for responsible investment into our investment processes and daily practices,” he said.

–Original article is in Indonesian, translated by Kristin Siagian