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.

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Private Equity

• Bain Capital plans to invest $157 million in Indonesia's Mayapada Hospital through its affiliate BCCS Maverick Holdings, subscribing to $32 million in new shares and $125 million in bonds. This investment follows the hospital’s private placement, approved in August 2024, and aims to support its expansion from 6 hospitals to 10-12 by 2025, including facilities in Nusantara and Batam. Founded in 1991, Mayapada Hospital has seen strong financial growth, with a 28% revenue increase and a return to profitability in 2024. Bain Capital’s move reflects rising interest in Indonesia’s resilient healthcare sector, which has attracted both local and global private equity investors amid growing demand. IDN Financials has more here.

M&A Deals

• Djarum Group, an Indonesian conglomerate, is reportedly acquiring up to an 85% stake in Bakmi GM, Indonesia’s oldest noodle restaurant chain, for approximately 2–2.4 trillion rupiah ($126–151 million). This acquisition aligns with Djarum’s strategy to diversify its portfolio, which spans financial services, technology, and real estate, and could support Bakmi GM’s expansion across Indonesia. Founded in 1959, Bakmi GM operates over 50 outlets and serves 30,000 customers daily, making it an attractive asset due to its strong brand equity and loyal customer base. The deal highlights growing investor interest in Indonesia’s F&B sector, driven by a large, youthful population and rising consumer spending. DealStreetAsia has more here.
• Singapore Technologies Telemedia announced that Malaysia's Mawar Setia will acquire a majority stake in U Mobile, its Malaysian mobile and broadband service provider. Under the conditional share purchase deal, Straits Mobile Investments will retain a 20% stake in U Mobile after the transaction. U Mobile, founded in 2006 and reportedly planning an IPO expected to raise over $500 million in the first half of 2025, will no longer be a subsidiary of ST Telemedia following the deal's completion. Financial details of the transaction were not disclosed by ST Telemedia, which is owned by Singapore state investor Temasek. The Star has more here.
• OKH Global has entered into a sale and purchase agreement to acquire Chip Eng Seng Construction from Acrophyte (formerly Chip Eng Seng Corp), with the acquisition to be funded through the issuance of new shares at a 212.43% premium. Upon completion, Acrophyte will hold more than a 50% stake in OKH Global, and the acquisition is expected to revitalize OKH's business by providing access to construction credentials and allowing participation in a wider range of tenders. The construction business comes with an outstanding order book of more than $2 billion, and OKH sees robust demand in the building and construction sector despite challenging macro environment conditions in its existing investment properties. Gordon and Celine Tang, who are controlling shareholders of both OKH and Acrophyte, are key figures in this strategic business move. The Edge Singapore has more here.
• Hongkong Land Holdings is considering selling its Singapore-based property developer arm, MCL Land, at a premium to its $1.1 billion book value, according to sources. The Jardine Matheson-backed firm is engaging financial advisers to explore the potential divestment but may still decide to retain the asset. The move aligns with Hongkong Land's strategic shift away from residential development toward establishing real estate investment trusts (REITs) and expanding its assets under management from $40 billion to $100 billion by 2035. Founded in 1889, Hongkong Land focuses on ultra-premium mixed-use real estate in major Asian cities and aims to double its profits and dividends under its new model. The Edge Singapore has more here.
• Deleum Bhd has acquired a 70% stake in PT OSA Industries Indonesia for US$7 million, expanding its valve solutions capabilities in Southeast Asia. The acquisition, complementing Deleum's existing valve management expertise, aims to capitalize on Indonesia's larger control and pressure relief valves market, which is valued at US$52 million. Group CEO Rao Abdullah sees this move as an opportunity to enhance service quality, develop talent, and potentially expand into Thailand and Vietnam. The company has shown strong financial growth, with revenue increasing from RM587 mil ($133 mil) in 2020 to RM792 mil ($179 mil) in 2023, and is strategically using this position to explore business expansion. New Straits Times has more here.

Venture Capital

• Taiwanese travel e-commerce platform KKday has raised approximately $70 million in a new funding round involving investors such as Cool Japan Fund, Taiwan's National Development Fund, and Darwin Ventures. The funds will primarily support mergers and acquisitions in the Asia Pacific region to strengthen KKday’s market position, alongside investments in AI research and talent acquisition. KKday is focusing on expanding its B2C offerings in Japan, where it was recently selected for the Tokyo Stock Exchange Startup Hub, a program supporting business growth and potential IPOs. Founded in 2014, KKday operates across 10 regional offices and has raised significant capital in prior funding rounds to fuel its growth. Tech in Asia has more here.
• Malaysia-based Bintang Capital Partners has invested an undisclosed amount in The Flow Studio, a female-founded and female-led yoga and reformer pilates studio with seven locations across Malaysia. This marks the first female-led company in Bintang’s portfolio, reflecting its commitment to gender-lens and impact investing. The investment aligns with Bintang’s broader goals, as the firm recently launched its second fund, targeting $100–150 million, and became the first Southeast Asian private equity firm to earn B Corp certification. Bintang’s recent investments also include Singapore-based Blue Planet Environmental Solutions and other innovative ventures, highlighting its growing focus on sustainable and socially impactful businesses. Technode has more here.
• AIQURIS, a Singapore-based corporate venture, has secured seed funding from TUV SUD and FutureLabs Ventures to help organizations qualify and integrate AI solutions. The company has developed a software platform aimed at setting benchmarks for quality and trust in AI procurement. The startup, supported by the Singapore Economic Development Board's Corporate Venture Launchpad program, brings together experts in AI, testing, inspection, certification, and SaaS to help enterprises understand and mitigate risks in AI model adoption. With its strategic approach, AIQURIS aims to empower organizations to quickly and efficiently procure and adopt safe, compliant, and ethical AI solutions. ASEAN Tech Sec has more here.
• OpenPad AI, a Singapore-based decentralized platform blending blockchain with AI to deliver innovative investment tools, has raised $2 million in funding led by Basics Capital, alongside notable investors like Protein Capital, Green Arrow Adventures, and angel investors from FireStarter and TrustSwap. The platform addresses Web3 challenges by prioritizing user privacy, data ownership, and decentralized control while offering features like AI-powered investment insights, project scoring, and real-time analytics. At its core is the OPAD Protocol, which decentralizes data access for enhanced privacy and efficient model training, alongside tools like the AI Launchpad and AI Portal for managing digital assets and strategies. With its new funding, OpenPad AI aims to expand its ecosystem, empower users globally, and redefine AI analytics in Web3 with transparency and fairness. Globe Newswire has more here.
• Vietnam's agritech startup Techcoop has raised a $70-million Series A funding round, potentially the largest for a Southeast Asian agritech startup, with $28 million in equity and $42 million in debt financing led by existing investors TNB Aura and Ascend Vietnam Ventures. Founded in 2022, Techcoop provides integrated trade, digital financing, and advisory solutions to Vietnam's agricultural small and medium enterprises, offering agri-inputs and output financing with flexible payment terms. The company plans to use the funding to invest in technology, support export infrastructure development, and strengthen its risk management and corporate governance. This funding round includes new investors like BlueOrchard Finance, Capria Ventures, and debt investors such as HSBC and several major Vietnamese banks. DealStreetAsia has more here.
• KPay Group, a financial management platform headquartered in Hong Kong and Singapore, has secured $55 million in its first institutional funding round led by Apis Partners, a UK-based private equity asset manager. The funding will support KPay's expansion across emerging Asian markets like Indonesia, the Philippines, Malaysia, and Thailand, and will be used to drive company growth and strategic mergers and acquisitions. Founded in 2021, the fintech firm has already served over 45,000 merchants across Hong Kong, Singapore, and Japan, and this investment comes at a time when fintech investments have slowed down, with the sector experiencing a 46.2% drop in quarterly proceeds. Despite the funding crunch, fintech remains Southeast Asia's most-funded sector, completing 33 deals worth $300 million in the third quarter. TechCrunch has more here.

Funds

• Singapore’s Temasek Holdings has established a wholly-owned private credit platform with an initial portfolio of $7.47 billion, comprising direct investments and credit funds. The platform will be managed by a team of 15 seasoned professionals across New York, London, and Singapore, led by Nicolas Debetencourt, Temasek’s Head of Credit since 2016. This initiative builds on over a decade of Temasek’s experience in private credit investing and aims to scale its credit and hybrid solutions portfolio to capture global opportunities. The platform complements Temasek’s asset management arm, Seviora Group, which also offers private credit solutions in Asia. FinanceAsia has more here.

Other News

• Global investors are increasingly drawn to Asia-Pacific data center operators, driven by the sector's growth potential and demand for AI-based services, despite high valuations. Deals like Blackstone's $15.58 billion acquisition of Australia's AirTrunk and Telkom Indonesia's ongoing sale of a stake in NeutraDC highlight the premium multiples exceeding 20 times forward earnings. This surge in valuations is fueled by the nascent state of the industry, rapid capacity expansions, and large orders from hyperscale customers. However, risks tied to infrastructure limitations and execution challenges may temper growth prospects as the market matures and new capacity becomes operational. Reuters has more here.

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