BRI Ventures’ new tech fund hits first close at $10.6m

BRI Ventures, the corporate venture arm of state-owned Bank Rakyat Indonesia, said its Sembrani Nusantara fund has secured more than 150 billion rupiah (US$10.6 million) as part of its first close.

Nicko Widjaja, CEO of BRI Ventures / Photo credit: Nicko Widjaja

Funds were raised from investors including Grab, Celebes Capital, Investree, Fazz Financial Group, and prominent Indonesian investor Pandu Sjahrir.

BRI Ventures plans to use the new capital to make early-stage investments in the education, agro-maritime, retail, transportation, and healthcare sectors in Indonesia, which is the largest internet market in Southeast Asia with about 300 million people.

The fund will focus on micro, small, and medium-szied enterprises (MSMEs) and help them go digital. It’s expected to announce new investment deals with two local firms this month.

Launched in June 2020, the Sembrani Nusantara fund aims to build a pipeline for Indonesian startups to grow and eventually find good exits. It focuses on companies pursuing sustainable growth, rather than paper-based valuations.

While the total number of tech deals in Southeast Asia declined by 15% in the first half of the year, Indonesia accounted for 75% of the total amount invested in the region, according to a report by Cento Ventures.

“The skyrocketing valuations predicated on building market share alone is no longer enough. Now the investment community has turned to find startups that can survive the Covid-19 stretch and carve a path to sustainable, profitable growth,” said Nicko Widjaja, CEO of BRI Ventures.

BRI Ventures and the Indonesia Stock Exchange also recently formalized a joint partnership this month to help more local startups pursue initial public offerings on the local stock exchange.