Telkomsel Ventures Affirms Investment Commitment in Agnostic Sectors

New face Telkomsel Ventures from the previous name Telkomsel Mitra Innovation (TMI), is the next stage for this state-owned cellular operator to expand its investment portfolio. His party also announced the closure of the second managed fund.

There is no change to the investment thesis with the name change. His party continues to target the agnostic sector while exploring opportunities in new sectors.

"Our main goal is to distribute funds to strengthen our growth strategy by leveraging assets Telkomsel, as well as exploration into new business areas," said the CEO Telkomsel Mia Melinda Ventures was contacted separately by DailySocial.id.

The investment focus must be intersecting with the core business, namely digital lifestyle, digital enablementand emerging tech (early adopting on new technology). These three focuses will have derivative sectors related to the internet, AI, MSMEs, E-commerce, to entertainment content. "We will revisit this from time to time based on market opportunities and our strategic relevance."

According to Mia, the second managed fund still comes entirely from its parent company, Telkomsel. Meanwhile, the first managed fund has invested $40 million (around Rp. 623 billion) in 17 startups, including Halodoc (healthtech), Evermos (social commerce), and PrivyID (e-KYC).

Asked about the value of the synergies that have been obtained, Mia added, "There have been many synergies generated by our portfolio startups and business units Telkomsel, and we will continue to explore new potentials."

For your information, legal entities Telkomsel Ventures was founded in 2019 who will be responsible for managing investment funds and synergies of the parent company. Telkomsel Ventures partners with MDI Ventures and Singtel Innov8.

Telkomsel Ventures is an investment vehicle to explore synergy opportunities for its telecommunications business. His party not only disbursed funding, but also utilized resources, technical support, mentoring, and collaboration with Telkomsel or other ecosystem.

Shifting investment sectors

The Venture Capital (VC) landscape in Indonesia this year was marked by a shift in investment focus to several sectors, namely electric vehicles, energy and agriculture. According to AC Ventures and Bain & Company report, in the 2020-2022 period, VC will actually focus on targeting sectors that have been positively influenced by social restrictions during the pandemic, for example e-commerce and fintech services.

"Sectors such as biotechnology, energy, EV, etc cleantech continues to grow, making Indonesia an increasingly attractive investment destination. Market interest and the industry's shift towards sustainability and a green economy, will drive expansion in this area. "Likewise, models that combine AI and other important technologies, or businesses that have intellectual property, have huge growth potential and unique market niches," said SV Investment Partner Steve Patuwo in the report.

The total value of VC funding flowing into Indonesia will reach $3,6 billion in 2023 (year-to-date). VC funding to Indonesia grew stagnant (YoY), but was better than the global investment trend (including the US, China and India) which recorded a decline of 20%-40%.