Mandiri Capital Debuts to Raise External Investment, Targets IDR 1,4 Trillion Funds

Mandiri Capital Indonesia, a corporate venture of Bank Mandiri, said that it is in the process of raising its initial investment fund. The target fund to be raised is $100 million (more than 1,4 trillion) and will be completed next year.

MCI CEO Eddi Danusaputro explained that this strategy change [opening up opportunities for external LPs to be involved] was carried out because there was a large investment need in Indonesia, especially for startups. fintech. This cannot be fully met if the source of investors is from Bank Mandiri only, it requires outside investors to support it.

"You can't always rely on funds from Bank Mandiri alone fundraising, have traveled to Japan and South Korea, they are interested in entering Indonesia," explained Eddi when met on the sidelines of NextICorn 2019, Friday (15/11).

He also believes that Bank Mandiri's reputation as a state-owned bank will certainly provide more value for foreign investors to entrust their funds to be managed by MCI.

According to him, there is no significant difference between managing funds from one's own pocket and externally. So far, Bank Mandiri has always prioritized how funded startups can provide synergies for the group and the returns provided.

Meanwhile, external investors put less emphasis on synergy, more on how MCI can provide good returns from the funds provided.

In fundraising In this case, Eddi targets to raise at least $100 million. Bank Mandiri will participate in the round, it is estimated that only 10% or around $10 million (equivalent to 140 billion Rupiah).

Next year, it is hoped that MCI will start investing through fund the latest. The targeted startups 80% are moving in fintech, the rest are engaged in the support sector fintech. The funding stage remains in series A.

"Still in the initial hypothesis we play in the early stage, series A. But it is possible if there is a good entry into series B."

MCI has been operating since 2016 and fully relies on its funding sources through injections from Bank Mandiri every year. Total funding disbursed reached Rp980 billion for 13 startups fintech.

Almost completely conducted series A and funding co-invest with other investors. However, there is one exception. MCI participated in a series B raising for Investree in 2018.

Towards the end of this year, MCI will announce a new investment for startups engaged in the wealth management. Eddi has not been willing to provide information regarding this matter.

The last announced funding is funding pre series A for Crowde of $1 million (approximately 14 billion Rupiah).

The selection of a similar strategy previously was also carried out by MDI Ventures for the third investment fund. The target fund is also the same, as much as $100 million. One of the investors' names that has been revealed is Kookmin Bank from South Korea.

MDI Ventures is also exploring other investors from the Middle East and several countries in Southeast Asia, such as Thailand and Singapore.