Mandiri Capital Indonesia Ready for Regional and Global Expansion

After taking steps to manage external LPs, Mandiri Capital Indonesia (MCI), the investment arm of the Mandiri Group, is determined to expand its investment scope to a global scale. Tomorrow (23/4), MCI is bringing nine (9) portfolios to appear at the Money 20/20 Asia fintech conference which will be held in Bangkok, Thailand.

Bangkok will be the starting point for MCI to start its expansion in the regional area through the launch of the first Xponent program abroad. The entire MCI portfolio has the opportunity to do so ShowCase products and services there. These 9 portfolios include Mekari, KoinWorks, Ayoconnect, Delos, iSeller, Kecilin, Fishlog, Imajin, and AI Rudder.

Meanwhile, MCI is the only Corporate Venture Capital (CVC) from Indonesia exhibitors Money 20/20 Asia which will be held on April 23-25 ​​2024.

"We prepare the foundation, frameworks, since 2021 so that MCI can run without continuing to depend on capital injection from the parent company. We want MCI to be top of mind, If you don't recognize it, how can you do it? fundraiser?" said MCI Chief Investment Officer Dennis Pratistha when interviewed DailySocial.id last week.

Dennis added that Xponent's presence at Money 20/20 Asia will be a strategic step to integrate active overseas startups and companies with the network and resources owned by the Mandiri Group.

Since the last few years, MCI is known to have started to focus on strategic investment in the sector beyond fintech, such as agriculture, aquaculture and manufacturing. The goal is no longer limited to investing capital in startups, but also creation value for the Mandiri Group portfolio and business units.

To strengthen its position as a strategic investor, said Dennis, MCI also initiated the XYZ program which contains a number of derivative programs, namely Xponent, Xchange, Y-Axis and Zenith Accelerator. This entire program aims to explore startup growth opportunities and connect startup players with key ecosystems.

"We only invest in companies where we are confident we can add value to them in terms of business. We have a large ecosystem, the Mandiri Group, as well as BUMN. We can leverage, bring value to tap into the ecosystem for portfolio and non-portfolio. "This is what prompted the birth of XYZ," he said.

Managed funds for expansion

Currently, managed funds (fund) The Global Climate Tech Fund is being prepared as a global investment vehicle for MCI in collaboration with Investible, a VC from Australia. This managed fund is targeted to gradually reach $150 million in its initial fundraising this year. Some of the portfolios that have been injected with capital are Greenhope, Cakap, Delos, and FishLog.

The Global Climate Tech Fund is a continuation of the Indonesia Impact Fund (IIF) commitment to support the zero carbon emissions target. He believes that there are not many managed funds of this type.deploy Indonesia because of the ecosystem climatetech still in the early stages.

"Another problem is that the current ecosystem is still attached to the digital ecosystem. We'll talk waste management, circular economy, and so on, but it can't be said yet climatetech, still sticking to digital. All ends still have applications. Whereas, it's slightly different. So, we have to do it early stage funds to build an ecosystem climatetech," added Dennis.

He also highlighted how difficult it is for players in this ecosystem to accelerate their business even though they have already developed their technology. One thing he highlighted was the sector circular economy. For example, waste management does not only talk about collection activities, but also thinks about how waste can be recycled.

For this reason, it is hoped that its regional and global expansion will be able to explore deeper technology, knowledge and experience from countries in the ecosystem climatetech has advanced. That way, these efforts can accelerate ecosystem growth climatetech domestic.

Dennis also said that he was preparing an MCI representative in Australia, which he hoped would make it easier for the company to replicate the XYZ program. "Ecosystem countries climate tech-It's already advanced, they started decades ago. We can tap into their knowledge, technologyand experience. Once the framework is set, we can scale, that's what we have been doing, we're replicating the framework. There must be localization, it can be adjusted."

As set out by the United Nations Environment Program (UNEP), there are six focus areas to address weather crisis including Energy, Industry, Agriculture and Food, Forests and Land Use, Transport, Buildings and Cities.

MCI's current managed funds:

1. Balance Sheet Fund from Mandiri Group (active)
2. BTN Fund (ddeployment 2024)
3. Global Climate Tech Fund (initial fundraising)
4. Merah Putih Fund (deployment 2024)

MCI has actively managed funds, the Balance Sheet Fund from the Mandiri Group. Recently, MCI also announced a collaboration with BTN as fund managers BTN Fund which focuses on investing in the ecosystem digital houseing, incl mortgage, proptech, construction tech, manufacturing techand open banking.

"We are processing the [BTN Fund] licensing with OJK. Hopefully it can be launched soon [this year]. We want to make sure we can help [BTN] to accelerate their digital transformation process, because this [fund] has been prepared since 2021. DeploymentIt's gradual, we've started doing it pre due diligence," he said.

Currently, MCI has more than 20 startup portfolios coming from 14 verticals, spanning loans, B2B value chains, to payment enabler.