The startups ecosystem in Southeast Asia should receive a massive injection of funds after Jungle Ventures reached a first close of $ 175 million for its latest fund, TechCrunch came to learn.
Executives at the Singapore-based company anticipate that the new fund, which is Jungle's third so far, will reach a $ 220 million end in the coming months, a source familiar with the fund and its plans told TechCrunch. If it were to reach that value, the fund would become the largest for start-up investments in Southeast Asia.
Jungle Ventures declined to comment.
A SEC document published in December suggested that the company intended to raise up to $ 200 million with the fund. Its last fund was $ 100 million and was closed in November 2016. Founding partners Anurag Srivastava and Amit Anand started the fund in 2012 when they raised a (much smaller) debut fund of $ 10 million.
Going a little deeper, our source revealed that Jungle's new fund includes the return of the World Bank's IFC affiliate and Cisco Investments. – both invested in Jungle's $ 18 million "SeedPlus" fund – and Singapore's Temasek sovereign fund. A new sponsor of which we are aware is the German financier DEG, although we understand that Jungle has spent considerable time in attracting funds in the US market, hence the filing of the SEC. In addition to Europe and the US, the company also said it has released LPs in Asia – as you had hoped – and in the Middle East.
Jungle is focused on Series A and Series B businesses in Southeast Asia, with occasional investments in India or the rest of the world, where it sees the global potential. An example of this is Engineer.ai, which grossed $ 29.5 million last November in a round led by Jungle and Lakestar, with DeepCore, a unit of SoftBank.
The meat and beverage fund is Southeast Asia, and past investments include the Deskera cloud platform (latest round $ 60 million), Reddoorz hotel chain (grossed $ 11 million last year), startup of fintech Kredivo (grossed $ 30 million last year) and the digital fashion brand Pomelo, which raised more than $ 30 million from investors who also include JD.com.
In India, it supported the b2b sales platform Moglix and interior design startup Livspace, among others. Earlier exits include Travelmob for HomeAway, Zipdial for Twitter, eBus for IMD and Voyagin for Rakuten.
We understand that the new fund has completed five deals. Jungle's trading pace is typically half a dozen investments a year, and we understand this will continue with fund three.
Fund executives are optimistic about Southeast Asia, which is predicting strong economic growth, thanks to increased Internet access and digital spending. A much-quoted report from Google and Temasek, published last year, predicts the region's "digital economy" will triple to $ 240 billion by 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 of 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 can see in cutting deals in the region include Burda, which has a local presence and starts in Series B, TPG Global and KKR.
Update 29/04 19:50 PST: The original version of this article has been updated to correct that Jungle invests in about a dozen companies per year, not per month.