In continuation to our previous Tech Deals series (Tech Deals Vol. 1, Vol. 2, Vol. 3, Vol. 4, and Vol. 5), we provide herein, the recent
tech deals completed between 16 July and 31 December 2022, and our
brief commentary regarding the tech investment environment in
Indonesia during the period.
During the third and fourth quarters of 2022, the tech
investment environment in Indonesia remained affected by the
current climate of the global economy, inflation, and crisis of the
cost of living on the other side of the world. We have frequently
seen news on layoffs in tech sector and decrease in funding for
many start-ups. Despite these challenges and economic downturn,
fundraising in tech sector in Indonesia has remained active. Some
businesses have even managed to secure significant amounts of
funding.
The Indonesian government has remained committed to develop the
technology sector and continued to actively promoting it. The
government has issued new regulations on this sector, including the
one issued by the Financial Services Authority (Otoritas Jasa
Keuangan or “OJK“), which imposes a
maximum loan interest rate of 0,46% per day on the fintech lending
sector (the previous limit was 0.4% per day), also business actors
who are members of Indonesia Co- Financing Fintech Association
(Asosiasi Fintech Pendanaan Bersama Indonesia or
“AFPI“). OJK also issued OJK Regulation
No. 10 of 2022 on Information Technology-Based Co-Financing
Services stipulating that peer-to-peer lending providers must
maintain a minimum capital of IDR 25 billion, with any capital
increase in the form of cash, cash deposit, or stock dividend.
On a related matter, the governing authority for crypto assets,
BAPPEBTI, would be moved to OJK to anticipate risks and protect
customers and investors. It has been viewed that crypto assets have
grown significantly and affected the economic stability.
Please refer to the table below on the list of completed Tech
Deals in the period from 16 July to 31 December 2022:
Ventures, InnoVen Capital SEA
India
KedaiVenture)
Living Lab Ventures
Capital Ventura (CCV), Endeavor Catalyst, FJ Labs, MDI Ventures,
SIG (Susquehanna International Group)
Xendit
Northstar Group, Vulcan Capital
Indonesia, Triputra Group
(隐山资本), Hui Capital
(惠友资本), Jinqiu Capital, Zhejiang
SilkRoad Fund/ZSF (浙
江丝路基金)
Sahabat Grup Indonesia (Sahabat Group), SMDV, Sampoerna Strategic
Group, Triputra Group, Waresix
Network, Infia Group
EDBI Pte Ltd, Insignia Ventures Partners, InterVest, Lendable,
Tiger Global Management, llham
Capital
Caballeros Capital, FEBE Ventures (For Entrepreneurs, By
Entrepreneurs Ventures), Intudo Ventures
Silverstrand Capital, The Meloy Fund
Mars Growth Capital
Group, Temasek Life Sciences Accelerator, Third Derivative
Investment Authority (INA), Orion Capital Asia
& India
Triputra Agro Persada Group
Indogen Capital, Intudo Ventures, NH Absolute Return Partners,
Nitto Prima Ventura
Ventures, FEBE Ventures (For Entrepreneurs, By Entrepreneurs
Ventures), Quona Capital
Payment Fund, Jungle Ventures, Mirae Asset Venture Investment
(미래에셋벤처
투자), Openspace Ventures (NSI Ventures), Square Peg
Capital
Capital
Corporation, Delapan Satu Investa, Living Lab Ventures, Paloma
Capital, SMDV, Urban Gateway Fund
Fund
Temasek Holdings
(SSIA)
Ventures, Init 6, Prasetya Dwidharma
(CyberAgent Ventures), Intudo Ventures
Insignia Ventures Partners, Indogen Capital, Accel Partners,
Patamar Capital
Ventures, Trihill Capital
Capital, Pegasus Tech Ventures
Singtel Innov8, KKR (Kohlberg Kravis Roberts & Co), GGV
Capital
Fund
SMDV, BIG Ventures
Ventures SEA & India
Capital
Mahanusa Capital, Pearl Abyss Capital (PAC)
(펄어비스캐피 탈),
Prodigy Investment (프로디지
인베스트먼트)
Throughout 2022, the economic slowdown impacted many industries,
including start-ups. In the latter part of the year, there were
reports of layoffs, closures, and pivots. The reasons for this
uncertainty are varied. Conflicts and hyperinflation in some
countries, as well as difficulties in recovering from the COVID-19
pandemic, are just a few of the causes.
There has been a significant decline in the total value of
investments in Indonesian start-ups. The total amount raised by
Indonesian start-ups from the beginning of the year until November
2022 was USD 3.7 billion, with some 347 investors participating in
the fundraising. It represents a 67.4% decrease of investment
compared to that of the previous year, when the total amount
reached USD 11.35 billion with 308 investors.
In Asia, decreasing venture capital funding for Asian start-ups
and low liquidity activities have resulted in a wave of layoffs
impacting more than 111,000 workers in various start-ups across the
region. Businesses with the most layoffs in Southeast Asia were
those in edtech and fintech sectors. Many start-ups that cut their
workforce were in the development phase, particularly affecting
those with Series B funding.
Due to the rapid changes in economic conditions, some start-ups,
including Chope, JD.ID, Shipper, and Glints, have had to make the
difficult decision to lay off employees. In terms of investment
deals, the sectors with the most funding announcements were fintech
lending and software as a service (SaaS), each of which, with 13
announcements. The start-up that raised the largest amount of
investment was Xendit, with USD 300 million. Traveloka, which also
received a large investment, could secure funding through a
strategic agreement with investors including the Indonesia
Investment Authority (INA). October saw the most investment deals,
while December had the fewest. The total disclosed funding for the
period was USD 1 billion.
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