East Ventures Books 8 Trillion Rupiah Funds, Majority for Advanced Funding

East Ventures announced the acquisition of funding of $550 million (8 trillion Rupiah) from various investors. The names of the investors were not detailed, the only one mentioned was Z Holding Group. In addition, supported by previous investors with high levels of re-up by 120%.

In an official statement, Co-founder & Managing Partner East Ventures Willson Cuaca said that his party has now changed itself from an early stage investor to an investor multi stage, as well as being an efficient and powerful platform to support entrepreneurship.

Of the total funds raised, $150 million will be allocated for early-stage funding and $400 million for advanced-stage funding.

“We are very optimistic about Indonesia, but still pay attention to global market conditions. We have built a track record with return strong for more than a decade and now flywheel effect of the ecosystem has begun. East Ventures is in the right position to ride it,” he said, Tuesday (10/5).

Further, East Ventures has experienced significant growth in its portfolio, with more than 200 startups from early and advanced stages. Later, it managed more than $1 billion AUM (Asset Under Management) and recorded a follow-up fund of $6,7 billion. Claimed, the company recorded more than $86 billion in GMV in aggregate based on its portfolio.

East Ventures Managing Partner Koh Wai Kit also added, “We are grateful for the strong support from sovereign wealth, institutional investors, companies, family offices, and various other limited partners globally. As we continue our journey from institutionalization, we will do our best to drive meaningful value for our partners in Southeast Asia's technology ecosystem.”

One of the investor representatives from this round, Z Holding Group, also gave his speech, represented by Shinichiro Hori. He said, “[..] As Z Holdings Group, we are honored to double our investment in East Ventures through this new fund. We are excited to continue working together to build the future of Southeast Asia's technology ecosystem."

East Ventures has launched various strategic initiatives to support the progress and development of Indonesia as a whole, including supporting digital transformation through the East Ventures annual report - Digital Competitiveness Index; and ensure sustainable investments and practices by being venture capital the first in Indonesia to sign the Principles of Responsible Investment (PRI), a network of investors supported by the United Nations, and is actively involved in strategic initiatives to support stakeholders, including governments, businesses, and communities.

This funding round was doubled larger than the previous announcement that the company announced at the beginning of the pandemic, to be precise in June 2020. At that time, East Ventures aimed the 8th fund was able to raise $88 million from various LPs, including Pavilion Capital and Adams Street Partners. The focus is on injecting additional capital for startups that emerged after thelockdown after the Covid-19 pandemic.

Implement ESG Initiative

Previously, the company launched "Sustainability Report 2022" to describe the impact that has been successfully created -along with its ecosystem- by involving Environmental, Social and Governance (ESG) frameworks and practices in achieving a more sustainable and inclusive future.

This report is based on more than a decade of working with hundreds of entrepreneurs in achieving the improvement of society as a whole.

East Ventures Managing Partner Roderick Purwana added, in implementing ESG practices and frameworks in the investment process, his party prepared a team with global and regional experience in multi-industry. Under the Investment Committee, the group strengthens ESG leadership to oversee ESG compliance, policies, investment processes and standards.

Then, it developed a Sustainable Investment Network to measure, track and improve its portfolio's impact on the environment, economy and society. For its sustainability investment strategy, East Ventures applies two approaches – Doing Good and Avoiding Harm.

Doing Good means providing and enabling its investment to grow in a sustainable market proposition to optimize impact on beneficiaries. Meanwhile, Avoiding Hazards means anticipating and mitigating risks or potential adverse social and environmental impacts on portfolio business practices.

He continued, in measuring and monitoring good deeds and avoiding harm, his party applies a responsible investment approach in the processes, standards and tools used in the investment cycle.

“There are five investment phases that we design: screening, due diligence, investment decisions, post-investment, and exit. In addition, as a signatory to the PRI (Principles for Responsible Investment), East Ventures will incorporate the six principles for responsible investment into our investment processes and daily practices,” he said.