The Weekly

The Weekly by CapitalNetwork delivers a recap of the latest news in Southeast Asia's private equity, venture capital, and M&A markets. Join us to make sure you don’t miss our next briefing.

M&A Deals

• OnPoint, backed by SeaTown Holdings, has acquired CREA, a Thai e-commerce enabler, creating a Southeast Asian e-commerce company that serves over 250 brands and specializes in warehousing, live streaming, and end-to-end operations. The acquisition aims to help brands succeed in the region's digital economy, targeting over 600 million consumers and facilitating social and cross-border commerce over the next five years. The deal comes at a time when Southeast Asia's e-commerce market is expected to experience rapid growth, as projected by the e-Conomy SEA 2024 Report. Both OnPoint and CREA bring significant backing and expertise, with SeaTown Holdings investing $35 million in OnPoint in 2022 and CREA having received a $25 million strategic investment from SuperOrdinary in 2021. The Bangkok Post has more here.

Venture Capital

• Singapore-based digital banking group Tyme has become the first Southeast Asian startup to achieve unicorn status this year, raising $250 million in a Series D funding round led by Brazilian neobank Nubank at a $1.5 billion valuation. The funding will help Tyme scale operations, expand its customer base, and pursue growth plans in Vietnam and Indonesia, with investments from Nubank, M&G's Catalyst impact strategy, and existing shareholders like Tencent. Tyme operates TymeBank in South Africa, which provides cash advances for low-income communities, and GoTyme Bank in the Philippines, offering various financial services. The investment comes at a time when Southeast Asian startups are experiencing a challenging funding environment, with quarterly equity deals falling below $1 billion for the first time since 2019. TechNode has more here.
• Malaysian fintech startup Swipey has secured funding from 1337 Ventures to scale its financial management platform for SMEs, although the investment amount was undisclosed. Swipey’s platform offers tools like spend management dashboards, corporate Visa cards, and automated accounts payable, serving over 2,000 businesses, including Maxis, Baskin Robbins, and government agencies. This funding follows Swipey’s recent win at MyFintech Week and supports its collaboration with agencies like Malaysia Debt Ventures Bhd to enhance financial transparency for SMEs. The investment, part of 1337 Ventures’ Accelerator Fund I, positions Swipey to advance its offerings and gear up for a pre-Series A fundraising round. Fintech News Network has more here.
• Funding Societies (Modalku in Indonesia), a Southeast Asian fintech company, has secured a $25 million equity investment from Cool Japan Fund, marking the fund's first fintech investment in the region. The company, which has disbursed over $4 billion in business financing to around 100,000 SMEs, will use the new funding to strengthen its core SME financing operations across its five markets and expand its payments business. The investment follows recent funding from various sources, including Maybank and HSBC, and will enable a partnership with Cool Japan Fund to provide financial services supporting Japanese companies. Founded in 2015, Funding Societies operates across Singapore, Indonesia, Malaysia, Thailand, and Vietnam, and is backed by notable investors including SoftBank Vision Fund 2, Maybank, and Khazanah Nasional Berhad. The Business Times has more here.
• Insurtech unicorn bolttech has raised over $100 million in Series C funding led by MUFG's Dragon Fund and Liquidity Group, reaching a valuation of $2.1 billion, up from $1.6 billion in May 2023. Founded in 2020, the Singapore-based company operates an insurance exchange connecting over 700 distribution partners with more than 230 insurance providers across Asia, Europe, and the US. The company has been actively expanding through acquisitions, including purchases of insurance firms in Indonesia, Singapore, and Europe, while also securing additional funding through various rounds, including a $246 million Series B and a recent $50 million venture debt facility from HSBC. The new funding will be used to enhance platform capabilities, expand global market presence, and drive innovation in insurtech propositions. Reuters has more here.
• Indonesian startup Magalarva, which uses black soldier fly technology to convert food waste into animal feed, has secured new funding from Bali Investment Club (BIC) to support its expansion and operational improvements. The company, founded in 2017, has already processed over 5,000 tonnes of food waste and plans to launch a larger funding round next year to establish a 2,000-tonne facility capable of processing over 50,000 tonnes of food waste. Their solution addresses Indonesia's significant food waste challenge, as the country ranks second globally in food waste production with nearly 15 million tonnes discarded annually. DealStreetAsia has more here.

Funds

• January Capital has raised over $85 million in the first close of its debut private credit fund, with contributions from US International Development Finance Corporation, a European financial institution, family offices, and private wealth firms. The Growth Credit Fund focuses on providing senior-secured credit to growth-stage, sponsor-backed technology companies in the Asia Pacific region, offering a less-dilutive alternative to equity financing for businesses avoiding down rounds. This move reflects a broader trend of rising interest in private credit strategies in the region, with firms like Granite Asia and Temasek-linked InnoVen also launching private debt initiatives. January Capital’s expansion into private credit follows its equity investment success, bolstered by strategic hires and a partnership with Australian GP stake investor Scarcity Partners. The Business Times has more here.

Private Credit

• Fairbanc, a Singapore- and Silicon Valley-based B2B embedded finance startup operating in Indonesia, secured a 50 billion rupiah ($3 million) productive loan from Bahana Artha Ventura (BAV) to expand access to capital for its MSME partners. Fairbanc, which enables merchants to purchase inventory on BNPL credit without requiring collateral or credit history, has onboarded over 550,000 merchants and partners with major FMCG and healthcare companies. The company leverages supply chain data to automate credit scoring and risk monitoring, driving financial inclusion and economic growth. Founded in 2019, Fairbanc has raised significant funding this year, including $13.3 million from Bank Rakyat Indonesia’s digital lending arm and $4.8 million in a pre-Series A round led by Vertex Ventures. DealStreetAsia has more here.

Other News

• Malaysia has emerged as a standout in Southeast Asia’s slow startup fundraising year, driven by government initiatives like the ‘KL20 goal’ to become a global startup hub. Key efforts include sovereign funds like Jelawang Capital, targeted investments for mid-tier companies, and early-stage funding through programs like Cradle and MDEC. Political stability, a skilled industrial workforce, and global shifts in manufacturing have positioned Malaysia as an attractive destination for private capital. While Malaysia’s robust IPO market showcases its potential, experts stress the need for a sustainable VC ecosystem, improved GP-LP dynamics, and policies to enhance liquidity and talent development. DealStreetAsia has more here.

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