Mandiri Capital Indonesia (MCI), an investment arm of Bank Mandiri, revealed that there have been some delays regarding plans to invest in new startups due to the Covid-19 pandemic. MCI is said to be eyeing four startups engaged in fintech.
MCI’s CEO, Eddi Danusaputro said, the actual approach process had already taken place before the pandemic, but the due diligence process required both parties to meet face to face. It needs to verify the location of the startup’s office, visiting users, and so on.
“If it is only for discussion, it can be through digital. However, we still have to verify the office, making a check spot to the location whether the business is B2B,” he said as quoted from an interview with CNBC, yesterday (5/27).
He emphasized, even though it’s delayed due to a pandemic, it doesn’t reduce MCI’s appetite to continue investing in the fintech sector.
Separately, to DailySocial, Eddi said there are four fintech startups conducting a due diligence process with MCI. Although, he was reluctant to disclose more details related to the name of the startup and which vertical fintech was being targeted.
“It’s already started [the approach process] before the pandemic, but the process was delayed due to the current state.”
This delay, he continued, did not have a significant impact on company performance, nor on the map of competition with VCs. He said, MCI had never limit the number of startups to invest and the amount of funds prepared each year.
This year’s budget to invest in new startups is said to reach Rp50 billion. That number changes annually according to the injection of the parent company. “There is no competition between VCs. [We] even invested together. ”
Another impact of the pandemic also forced MCI to postpone external fundraising. Therefore, it must be divided into two rounds and the company has finished the first stage.
The raised funding has reached $50 million, already half of the target, which is $100 million. Eddi is yet to reveal the LP’s identity in this funding. “Therefore, it will be gradual [due to pandemic]. There will be first closing ($50 million), then the second closing.”
In an earlier interview, Eddi said this initial external funding would help MCI in meeting the funding needs of fintech startups in Indonesia. If you rely solely on funding from Bank Mandiri, your needs cannot be met quickly.
He said his team had conducted roadshows to Japan and South Korea to attract investors into the Indonesian market.
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Original article is in Indonesian, translated by Kristin Siagian