JAKARTA (TheInsiderStories) – PT Telkomsel Mitra Inovasi (TMI), an investment arm of telco provider PT Telkom Indonesia Tbk (IDX: TLKM), has invested nearly US$2 million in PrivyID, as part of Series A round, the official told TheInsiderStories yesterday. Recently, the local venture capital get fresh funding ofS$40 million from its parent company to expand the company businesses.
The investment has been carried out through MDI Ventures, the corporate venture capital initiative of Telkom Indonesia, said Kenneth Li, head of investor relations at MDI Ventures. According to him, e-signature market already grown fast in recent year and will obviously getting bigger.
He noted, several other player already tap in to the market, validating this market has big potential. In addition, communication and information ministry through 2008′ Electronic Transaction and Information law stated that the government backing e-signature platform businesses.
“Ink based signature already irrelevant. We’ve seen the rise of e-commerce and other financial technology platform in Indonesia, grew rapidly that should need e-signature for their business,” said Li.
He adds, “This trend will continues and all stakeholders will follow this trend. even some state-owned bank like Bank Mandiri’ customers already embrace e-signature.”
He also sees the e-signature platform also have an opportunity to become unicorn like DocuSign as well as HelloSign in United States.
Jakarta-based PrivyID develops electronic identity verification technology for businesses in the telecom, multi finance, and retail industries. Its an electronic signature that can be applied to a variety of digital documents to make them legally binding. The company works with banks and financial institutions to do background checks on applicants.
While, Telkom Group has played a key role in the company’s growth since the beginning of the startup’s development, as it has provided the startup with the knowledge and network needed to gain a foothold in the industry, PrivyID CEO Marshall Pribadi said.
PrivyID is backed by Telkom Indonesia, PT Mandiri Capita, PT Gunung Sewu Group, and PT Mahanusa Capital. PrivyID raised an undisclosed amount of investment in a pre-series A funding round led by MDI Ventures and Mandiri Capital, the corporate venture arm of PT Bank Mandiri Tbk (IDX: BMRI).
According Chief Executive Officer MTI Andi Kristianto, with the new injection, the new company would look for startups that already had traction and seemed to be able to synergize with assets owned by PT Telekomunikasi Seluler.
After get fresh funding from its holding, yesterday, MTI joined with MD Ventures has injected undisclosed amount of funds to a strategic investment-based company funded PT Finaccel Teknologi Indonesia or popular with brand Kredivo. In early 2019, both companies had also made initial funding to Kredivo with total amount $30 million.
Kredivo is a startup with innovative products in the form of new alternative digital payment methods, with a variety of methods and payment terms for buyers. Kredivo has been helping payment transactions for major players in e-commerce such as Tokopedia, BukaLapak, Shopee, and Moka’ online cashier system.
In addition to Kredivo, Kristianto admitted, Telkomsel Mitra Innovasi did not set the number of startups that will be funded this year, but certainly MTI will see the opportunities. So far, TMI collaborated with MDI Ventures, Telkom, and Singtel Innov8.
MDI Ventures is currently the most active corporate venture capital in Indonesia with a good track record of exit, and Telkom was formed to develop digital business.
To date, MDI Ventures has invested in 33 companies in 10 countries. In investing, there are several startup criteria that are used as references by MDI Ventures, including having high future value and positive synergy value for Telkom Group product development.
In addition, TMI with MDI Ventures injected $4 million in the first round of its ongoing Series C investment in Anchanto, a Singapore headquartered pan-Asia SaaS technology company. MDI Ventures’ funding comes after Series B funding from Japan’ Transcosmos Inc., and Singapore’ Luxasia Group in May 2017.
The proceeds of the fund will be used to expand the market outreach and to build a stronger regional Southeast Asia presence.
Written by Yosi Winosa, Email: Yosi@theinsiderstories.com