Indonesian conglomerate Sinar Mas is expanding its private equity business through an investment in Southeast Asia-focused private equity firm 01Fintech.
Sinar Mas is an Indonesian conglomerate that was founded in 1962 by Eka Tjipta Widjaja. The company’s business ranges from pulp and paper, real estate, financial services, agribusiness, and telecommunications.
Mutual cooperation between SMMA, and 01Fintech
The investment in 01Fintech is a part of Sinar Mas’ larger plan to develop its private equity company. Sinar Mas plans to use 01Fintech’s expertise to identify and invest in promising startups in the region. 01Fintech, a growth-stage private equity (PE) firm in the fintech sector in Southeast Asia, is reportedly planning to raise up to US$150 million (IDR 2,235 trillion) for its second fund.
While its first, last October had raised a US$ 300 million Asia Pacific Fund with backers including Brazil’s NuBank; Brazilian fintech unicorn Ebanx; Ayala Family from Philippines; and Philippine telecom giant, Globe.
As of now, 01Fintech has made several successful investments in Southeast Asian startups in the past and has a strong track record in the region.
Currently, it has raised an undisclosed amount from Sinar Mas Financial Services or PT Sinar Mas Multiartha Tbk (SMMA), a subsidiary of the Indonesian conglomerate giant, Sinar Mas Group. 01Fintech has entered into a partnership with SMMA offering a wide range of financial services in insurance, banking, and capital markets, as well as Web3, and fintech services.
Since 01Fintech would have access to Sinar Mas’ vast resources and skills, this investment is anticipated to have a favorable effect on the Southeast Asian startup environment. This will certainly aid startups in the area in expanding and scaling more swiftly.
01Fintech will use its leverage in market insights, investments experience, tech, and operational expertise to help SMMA’s fintech vision, and ambition.
“Together, we are committed to helping SMMA achieve its digital transformation goals, and ultimately, bring greater synergy to the Sinar Mas Group through this digitisation exercise,” said Kenny Man, Managing Partner of 01Fintech, as reported by dealstreetasia.com.
“We are excited about the potential of this partnership to bring about positive changes in the financial industry, and to the larger Indonesia digital ecosystem, and we look forward to better serving our customers in Indonesia, and beyond,” said Indra Wijaja, President Commissioner of SMMA, as reported by dealstreetasia.com.
Overall, Sinar Mas and the Southeast Asian startup ecosystem stand to benefit from the investment in 01Fintech. The two businesses are well-positioned to identify and invest in the next wave of successful startups in the region because of Sinar Mas’ resources and 01Fintech’s knowledge.
