Jungle Ventures Closes $225M for Fourth Southeast Asia Fund

Jungle Ventures Secures $225 Million First Close for Fourth Fund

A continuation of the robust funding trend in Southeast Asia is anticipated, as Jungle Ventures has announced a $225 million first close for its fourth investment fund. The fund’s initial fundraising phase commenced in mid-May, with a targeted total of $350 million.

Investor Base and Fund Size

A substantial portion of the limited partners participating in Fund IV are returning investors from previous funds. These include prominent entities such as Temasek Holdings, IFC – contributing $25 million – DEG, and a collection of Asian and global family offices. The firm asserts that this makes Fund IV the largest early-stage fund in Southeast Asia for the current year.

Firm History and Growth

Established in 2012, Jungle Ventures initially launched with a $10 million debut fund. Subsequently, in 2016, a $100 million second fund was announced, followed by a $240 million third fund in 2019.

The cadence of raising a new fund approximately every 2.5 to 3 years aligns with Jungle Ventures’ established pattern, as noted by founding partner Amit Anand. This fundraising effort also coincides with a period of increased attention – and capital influx – directed towards the region.

Ecosystem Maturity and Capital Flow

“The Southeast Asian ecosystem has been developing for a considerable period,” Anand stated. “Having initiated our journey in 2012, we believe the present moment represents the most favorable time to operate within the region’s tech landscape.”

He further explained, “While opportunity and talent have consistently been evident, capital has now followed suit. Recent exit announcements, encompassing both acquisitions and initial public offerings domestically and internationally, have solidified Southeast Asia’s appeal to a broader range of investors.”

Investment Strategy and Portfolio Approach

Jungle Ventures employs a concentrated investment strategy, typically allocating capital to approximately 12 to 13 companies per fund. The firm demonstrates flexibility regarding investment stage, providing seed to Series B funding and fostering enduring partnerships with its portfolio companies.

The firm has consistently participated in multiple funding rounds for several companies, notably including the buy now, pay later platform, Kredivo.

Fund Performance and Returns

This investment approach has yielded positive results, according to Anand. Fund II, launched in 2016, includes successful companies like FinAccel and Moglix, currently delivering approximately 7x returns. “A comparable trend is becoming apparent with the 2019 vintage,” he added, citing investments such as Sociolla, a beauty e-commerce platform, and KiotViet, Vietnam’s leading point-of-sale and store management system for small retailers.

Fund IV Investment Parameters

Fund IV will allocate investments ranging from $1 million to $15 million for Series B rounds and will also participate in subsequent funding rounds.

“We generally invest in companies that have achieved some degree of product-market fit within their domestic market, and then we assist in expanding their reach regionally,” Anand clarified. “This can occur at the seed stage, Series A, or Series B – the specific stage is not a primary consideration for us.”

Co-Investment Activity

Jungle Ventures’ limited partners actively engage in co-investment opportunities; over the past three to four years, they have collectively invested nearly $400 million in the firm’s portfolio companies.

Sector Focus: Social Commerce

Anand expressed particular enthusiasm for the potential of social commerce. “We anticipate that social commerce will significantly surpass e-commerce in markets like Southeast Asia. The region’s landscape extends beyond major metropolitan areas, encompassing numerous Tier 2 and Tier 3 cities across diverse islands and geographies. Furthermore, the region’s strong community bonds are deeply ingrained in its social fabric.”

Jungle Ventures’ investments in social commerce include Evermos, a platform specializing in halal and Sharia-compliant goods sold through agents within their communities.

Geographic Scope and India Strategy

While primarily focused on Southeast Asia, Jungle Ventures also makes strategic investments in India.

“There is a strong synergy in the exchange of talent, ideas, learning, and capital between Southeast Asia and India,” Anand noted. “Southeast Asia’s tech talent pool is still developing, while India offers a substantial source of skilled professionals. We have facilitated our portfolio companies in leveraging this by establishing tech hubs in India.”

He added that the firm’s Indian investments are also geared towards facilitating their expansion into Southeast Asia, capitalizing on the regional opportunities. Livspace, an interior design platform originating in India, exemplifies this strategy, having expanded into Singapore and planning further entry into other Southeast Asian markets.