MDI Ventures's launches $500m techfund to push digitisation | FI SENSE


MDI Ventures, the corporate venture capital (CVC) owned by Indonesia’s state-owned Telkom Group, has announced the launch of a new US$500 million tech fund.

The new fund aims to strengthen the digital transformation agendas of the archipelago’s state-owned enterprises at large. It has invested in more than 44 startups from more than 12 countries and has three high-profile exits to its name.

The push is as part of an ambitious goal of building out a full-fledged, state-owned digital ecosystem.

MDI Ventures claims with the launch the new fund, it has now become the largest corporate-backed, multi-fund VC firm in the nation, with more than US$790 million in assets under management.

Since 2016, MDI Ventures and Telkom have worked together to expand the telecoms company’s in-house digital capabilities. So far, it has invested in more than 44 startups from more than 12 countries.

The CVC is now on the lookout for tech startups that aspire to dominate the local market and help traditional, and largely offline SOEs, join the nation’s thriving digital economy.

“To maintain their strong footholds in the market well into the future, our SOEs know they need to embrace digital business models more profoundly than ever before. By allocating this fund in accordance with the government’s bold mission and by partnering with local tech innovators, Indonesia’s SOEs will be ideally positioned to thrive for generations to come,” he added.

In recent years, Indonesia had already been transitioning major SOEs into a fully digital paradigm. State-owned banks, for example, had released various tech innovations since 2018 and some even launched their own online and app-based lending platforms for SMEs.

They had also established key partnerships with numerous fintech startups such as Privy, Oy, LinkAja, and ModalRakyat.

Meanwhile, Telkom has been the driving force behind SOE digital transformation efforts at large. Since 2016, MDI has created multiple in-house synergies for its parent company and also cultivated a slew of highly profitable portfolio exits.



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