An influential new Indonesian VC could open doors for startups

Since it was founded in 2018, Agaeti Ventures has become a rising force among Indonesian VCs, currently being one of the most active investors in the country. Its general partner, Pandu Sjahrir, is the key man.

Beside investing in early-stage startups with Agaeti, Sjahrir has influence within tech unicorns: He’s a board member in Gojek and the Indonesia chairman of Sea.

He’s also armed with government connections, being the nephew of the Indonesian coordinating minister for maritime affairs and investment, Luhut Binsar Pandjaitan, who has a strong influence in foreign investment in the country. The minister is also involved in Indonesia’s plans to set up a sovereign wealth fund and a new capital city.

Pandu Sjahrir (second from right) join the meeting between Indonesian president Joko Widodo and SoftBank’s Masayoshi Son / Photo credit: Jokowi’s Twitter account

Sjahrir is a prominent figure in the mining industry as well – a sector that contributes a significant chunk to the country’s gross domestic product. In addition to being the director of Toba Bara Sejahtra, a local publicly listed coal mining corporation, since 2010, he has also led the Indonesian Coal Mining Association for five years.

This influence and network has allowed Agaeti to run fast after its founding, setting up a US$10 million debut fund and deploying it to 27 startups in less than two years.

As with any VC, it will be years before Sjahrir can show any returns, so the verdict is still out.

Nonetheless, these are three of the promising startups in Agaeti’s belt:

Warung Pintar: The startup brings roadside stalls online by implementing digital payments, inventory software, and data analytics. To date, the company already serves thousands of stalls.

Bizzy: A company that aims to build a more efficient supply chain network for retailers.

Kargo: Integrating shippers and logistics providers in a single marketplace, the startup counts Sequoia Capital and Uber founder Travis Kalanick as its investors.

Michael Soerijadji, another partner at Agaeti, was also the director in one of Toba Bara Sejahtra’s affiliates. He and Sjahrir not only have experience in mining and energy, he says, but also in the retail and manufacturing sector.

Joining forces

Agaeti recently announced a “merger” with fellow Indonesia-based VC firm Convergence Ventures, which will further increase Sjahrir’s influence.

Named AC Ventures, the combined entity has become the second-most active VC in Indonesia, just behind East Ventures. Indeed, Sjahrir also has a tight connection with the latter, considering 65% of Agaeti’s disclosed portfolio companies have been co-invested with East Ventures.