Jakarta-based venture capital firm, Alpha JWC, has reportedly announced that it has raised a record $433 million through its third funding round, making the firm the largest VC fund for early-stage startups in Southeast Asia.
According to reports, World Bank’s International Finance Corp., and Morgan Stanley had participated in the round, along with the LPs from the firm’s previous two rounds. The initial target of the third fund was set between $250 million to $300 million.
The firm will now be managing around $630 million in assets through its three funds. The company reported that its portfolio companies, Ajaib, Kredivo, and Carro, which hit unicorn recently, have collectively raised more than $1 billion so far, in a relatively short amount of time. The companies raised majority of the follow-on funding within the same year after Alpha JWC’s initial investments in them.
Jefrey Joe, co-founder and general partner of Alpha JWC, stated that owing to high-profile exits like Sea Group’s IPOs and Bukalapak, Southeast Asia has started garnering interest from global investors.
The firm stated that it will be investing in Indonesian startups with the third fund, but will focus on other Southeast Asian markets including Malaysia, Singapore, Thailand, Vietnam, and the Philippines as well. Preference would supposedly go towards companies that want to enter Indonesia. The target of the fund will be to invest in around 25 to 30 early stage startups with a sector-agnostic approach.
Talking about the investment plans, Chandra Tjan, co-founder and general partner, stated that that the VC is not being sector-focused right now as the market is still in its early stages and has high potential, with many industries where a local champion can emerge gradually.
Kim-See Lim, IFC regional director for East Asia and Pacific stated that the partnership with Alpha JWC is a sign of IFC’s long-term commitment to Indonesia’s digital transformation and economic development.
Launched in 2016, Alpha JWC had started with a fund of $50 million which they had invested in 23 companies, while its second fund in 2019 had closed in at $143 million, which was then invested in 30 companies. The firm usually invests in early-stage startups and is often the first institutional investor on the startup’s cap table.