Funds Managed by Telkom and KB Financial Group “Centauri Fund” Aim for Ten Startups Next Year

The Centauri Fund, a managed fund initiative formed by the Telkom Group through the CVC unit MDI Ventures and South Korea's KB Financial Group, is eyeing ten startup portfolios in 2020. The company is currently exploring investment deals with five Indonesian startups.

Telkom Group and KB Financial Group officially signed a cooperation agreement (MoU) to form the Centauri Fund as an extension of the new managed fund last week, Monday (9/12).

In his official statement, Director of Strategic Portfolio Telkom Achmad Sugiarto revealed that the Centauri Fund was formed as a commitment of the two companies to develop a technology and startup ecosystem, especially Indonesia, as the largest market in Southeast Asia.

"Now we are evaluating five startups in the field of fintech, insurtech, big data, and artificial intelligence. So far all [from Indonesia]. Our target is maybe five to ten [startup] investments in 2020," said Kenneth Li, Head of Investor Relations & Capital Raising MDI Ventures. DailySocial.

Previously reported a few months ago MDI Ventures is in the process of raising its third investment with a target value of $100 million or around Rp1,4 trillion.

At that time, Kenneth confirmed that Kookmin Bank, part of the KB Financial Group, was one of three potential investors who would become LP (Limited Partner). The other two potential LP partners have yet to reach a final agreement.

Kenneth revealed, both Centauri Fund and MDI Ventures are still pursuing the same business vertical. The difference is that Centauri Fund will focus on Pre Series A and Series B funding, while MDI Ventures will focus on Series B and above.

However, he was reluctant to mention the value of the investment disbursed by KB Financial Group to the Centauri Fund. Kenneth ensures that the entry of these new business partners will provide capabilities and learning in the field of fintech.

“The business vertical of [Centauri Fund] is almost the same because MDI Ventures is actually quite agnostic. Our hypothesis is indeed more sustainable business. The startups that we choose are those that can be assisted in their growth through the Telkom ecosystem," he concluded.