Month: December 2016
Singapore unicorn Garena in talks for US$1 billion IPO listing in the US
Garena Interactive Holding Ltd., a Singapore-based internet and mobile platform company as well as Southeast Asia’s largest unicorn, is reportedly tapping the US stock market for its initial public offering (IPO) that may raise around US$1 billion.
The unicorn, privately valued at US$3.75 billion, was in talks with several banks in Singapore this week discussing the IPO which could commence in 2018, according to sources close to Wall Street Journal.
It is also reported that these investment banks were invited to Singapore for IPO discussion by Garena’s backers – Chinese internet giant Tencent Holdings Ltd. and Singapore state investment firm Temasek Holdings Pte. Ltd.
Also, Garena’s preferences of listing destination lie in the big Apple, New York as due to the reason that the United States has the most listed numbers of internet companies which will provide the required resources and networks.
However, final details on a listing venue and the total amount of funds to be raised has not been decided.
Founded in 2008 by Forrest Li, Garena first started out as an online gaming company. Since then, the startup has grown to become Southeast Asia’s largest Web and mobile platform, with users spreading across countries such as Thailand, Vietnam, Hong Kong and Taiwan.
At present, the company offers interactive digital content, eSports, e-commerce and online payment products and services, operating a payment system called AirPay, and a social commerce app called Shopee.
Garena has also said in a statement that it has achieved compound annual growth of more than 95 percent over the past five years to over US$300 million in gross revenue in 2015.
In March 2016, Garena has announced a US$170 million Series D investment led by Malaysia’s state investment fund Khazanah Nasional Bhd. An additional undisclosed investment was also conducted in September that involved SeaTown Holdings International, a subsidiary of Temasek Holdings.
With its IPO plan on the move, earlier investors in Garena are expected to realise their investment in the firm. Other backers include the Ontario Teachers’ Pension Plan, one of Canada’s biggest pension funds, and private-equity firm General Atlantic LLC.
By Vivian Foo, Unicorn Media
Global ecommerce startup Floship bags US$3.5 million funding round
Hong Kong provider of global logistics and fulfillment startup Floship Global Ecommerce Fulfillment recently announced that the company has successfully closed a pre-series A US$3.5 million bridge funding round earlier this December.
This fundraising was participated by Taiwan’s early stage technology-focused Cherubic Ventures, Hong Kong’s Big Boom and Empiricus Capital, as well as China’s Regent Capital.
“We are grateful for the investment of Ardent Capital and Vectr Ventures in earlier funding rounds, and our team is honored to be working with such respected investors as Cherubic Ventures, Big Bloom Capital, Empiricus Capital, and Regent Capital during this most recent round,” said Steve Suh, a Co-Founder of Floship.
Providing global e-commerce fulfillment directly from Hong Kong, Floship leverages on the strategic location of Hong Kong as the world’s number one air cargo hub, providing e-commerce vendors to compete in more markets from one centralized fulfillment warehouse.
“We are beyond excited about the results of our latest funding round. As our company continues to experience growth and gain positive traction in the marketplace, we could not be more thrilled about the validation we have gained from those who have made the decision to invest in our e-commerce fulfillment model,” said Steve Suh.
With the funds, Floship plans to accelerate the service improvements of their technology as well as increasing business expansion efforts through providing clients with seamless integration to ever more e-commerce platforms.
Besides, as Floship’s current technology integrates with Shopify, WooCommerce, Magento, Dear Systems, and Aftership, the company is committed to building more integrations to shopping carts to serve more customers on a wider variety of e-commerce platforms.
Thus, the Floship’s team will also be working on accelerating the development of algorithms that help optimize shipping rates on a per package basis as well as building a set of tools to make it easier for online retailers to manage their daily global fulfillment at scale.
“As a leader in our industry, we differentiate ourselves by providing a highly automated fulfillment experience for online retailers utilizing multiple couriers to obtain the best rates for global e-commerce shipping.” Steve Suh explains.
To date, Floship has completed fulfillment for more than 100 crowdfunding campaigns, some of which have been the most successful in the world.
“But still, as a startup company that doesn’t have the luxury of standing still, we are always striving to improve. This latest funding round will allow us to do just that.” adds Steve Suh.
By Vivian Foo, Unicorn Media
EVISU buys back rights to China retail and franchise at US$40 million
Japanese premium denim brand EVISU has recently made a US$40 million buy-back of its China retailing and franchising rights.
The transaction was carried out by the parent company, EVISU Group Limited with the support of Hong Kong-based Cassia Investments, a consumer-focused PE fund.
Both companies have reinvested a consumer-focused private equity fund, to buy back the interest from EVISU’s joint venture partner in China, New Elegant Trading (Shanghai) Co. Ltd which is financially supported by IDG Capital Partners.
David Pun, chairman and chief executive officer of EVISU Group Limited, will remain the majority shareholder.
“The company made concerted efforts with its China joint venture partner over the past few years to establish brand awareness and secure a footing in China,” explains David.
Sixteen years through EVISU’s franchise partnership with New Elegant Trading has successfully forged a brand awareness in China.
“We think this is an ideal time for the company to integrate its regional China business with headquarters to pursuit the brand’s global objectives in the coming years,” he adds.
Hence, EVISU will now be actively seeking global business expansion by forging distribution partnerships for the U.S. and Europe markets.
The brand will step up product extensions like EVISUKURO, the latest athleisure collection, and maintain product exclusivity through focused management of wholesale distributors.
Founded in 1991 in Japan, EVISU has become a high-end lifestyle brand, offering a range of products which include jeans, t-shirts, sweaters, knitwear, and glasses for both genders.
Some of the brand’s most iconic denim collections include the series with tattoo-designed graphics. Products of EVISU are sold online at EVISU.com and in more than 150 stores located in 14 countries which include Australia, China, Hong Kong, United Kingdom, and the United States.
By Vivian Foo, Unicorn Media
Video URL: https://www.youtube.com/watch?v=FzyZH–2Spo
Global Brain launches US$175 million sixth fund
Japanese venture capital fund Global Brain Corporation has officially launched its sixth fund, its founder and CEO Yasuhiko Yurimoto announced at the firm’s annual Alliance Forum on December 8.
Founded in 2001, the corpus of Global Brain’s first and second fund totaled only at US$17.5 million. This latest fund is the sixth which is valued at US$175 million and has a first close at US$ 130 million, with the final close expected by June 2017.
This latest fund has been financed by more than 10 companies and academic institutions, including travel agency JTB, Mitsui Sumitomo Banking, Sumitomo Forestry, Information Services International-Dentsu, and the public-private entity Cool Japan Fund.
With the closed US$175 million VC fund, Global Brain will be targeting investments in startup ventures of various industries, including sectors such as the internet of things (IoT), hardware, enterprise, robotics, education, and e-commerce solutions.
The fund will aim to invest in a portfolio between 70 to 80 companies over a period of 10 years, with ticket size ranging from 200 million yen (about US$1.7 million) to 1 billion yen (US$ 8.67 million) each.
The fund is also focused on investing in ventures that can strengthen Japanese tourism in the 2017-2019 period, given the upcoming Tokyo Olympics in 2020.
“With the Tokyo Olympics and Paralympics happening in 2020, Japan is in a time of change. We want to create an ecosystem that links this progress to a future beyond the Olympics,” Yurimoto said, emphasising an interest in ventures that could solve Japan’s societal and economic issues.
The future also includes a strong international focus, with Global Brain planning to deploy its capital in the startup ecosystems of Japan, Silicon Valley, South Korea, Southeast Asia, and Israel.
Southeast Asia, in particular, represents strong growth prospects for this fund, given the prevailing growth narrative of economies in the region.
This is a goal shared by its primary limited partners: the Cool Japan Fund, travel service conglomerate JTB, and mega-bank Sumitomo Mitsui Banking Corporation (SMBC).
With the closed US$175 million fund, this will bring the VC’s total funding raised to US$375 million, with its capital spread across 51 investments in 43 companies.
The firm’s portfolio list include Raksul – Japan’s own printing startup, Near – India’s location-based advertising venture, and Mercari – a used-goods application.
By Vivian Foo, Unicorn Media
Malaysian PE firm Creador closes Fund III at US$ 415 million
Southeast Asia and India-focused private equity (PE) firm Creador has reached the first close for its Fund III at US$415 million, falling US$35 million short of its initial target at US$450 million.
This latest round of fundraising has seen different investors varying from endowments, pension funds, family offices, international fund of funds (FOF) as well as a development bank, according to Edwin Cheah, the Director of Creador.
The private equity firm, based out of Malaysia, Mauritius, India and Indonesia in its previous two funds has raised a funding amount of US$130 million and US$331 million respectively.
“The sectors that Creador III will focus on are consistent with Creador II,” Cheah said. “But the businesses that we are excited about are ones that sell from one to many, B2C businesses that are targeting a broad base of consumers.”
In particular, the company will be looking at three investment themes – financial, consumer and business services. With examples of financial services being banks and finance companies, consumer services examples including branded products, media, retail, healthcare, and education while business services refer to B2B services, payment processing.
Established in September 2011, Creador is founded and headed by former ChrysCapital managing director Brahmal Vasudevan. On its global advisory board are other noteworthy former Malaysian corporate captains like Krishnan Tan and Dr. Thillainathan Ramasamy, as well as former Indonesian finance minister Dr. Ir Bambang Subianto.
The company’s Malaysian portfolio includes data and analytical tools provider CTOS Holding Sdn Bhd, medical and allied health education provider Asiamet Education Group Berhad and retail pharmacy chain RedCap Pharmacy.
While in Indonesia, the company has picked stake in companies like financing firm BFI Finance, TV operator MNC Sky Vision and cereal player Simba Indosnack Makmur.
Its India investments include Murugappa Group’s NBFC Cholamandalam Finance, Repco Home Finance, tile maker Somany Ceramics and PC Jewellers.
With this new fund, the Malaysia-based company is also planning to invest in newer markets, such as the Philippines and Sri Lanka, apart from its existing target markets Indonesia and Malaysia in Southeast Asia, and India.
“We are exploring opportunities in the Philippines and Sri Lanka and these new markets will be no more than 10% of the fund,” Brahmal Vasudevan, the founder and chief executive officer of Creador said.
“We are still working on the deal opportunities in Indonesia and will disclose further details once able,” he added.
By Vivian Foo, Unicorn Media