Intudo Ventures closes its third fund of $115 million called Intudo Ventures III

SaaS News - Intudo Ventures closes its third fund of $115 million called Intudo Ventures III (source: SaaS Industry)
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Indonesian VC firm Intudo Ventures has closed its $115 million third fund, which was oversubscribed. Intudo plans to invest in agricultural, B2B and enterprise, education, finance and insurance, healthcare, and logistics with its third fund.

Intudo Ventures, an Indonesia-based VC firm, has announced the closure of its third fund of $115 million. The oversubscribed fund called Intudo Ventures III was raised in less than three months.

Black Kite Investments, the Singaporean businessman Koh Bon Hwee’s family office; Wasson Enterprises, the family office of former Walgreens Boots Alliance CEO Greg Wasson; and PIDC, the investment arm of Taiwan-based retail conglomerate Uni-President Enterprises Corp, are among Fund III’s limited partners. Over 30 Indonesian families and their conglomerates, over 20 top worldwide funds and managing partners, and more than ten founders of tech startups are among the other LPs.

Intudo was founded by Patrick Yip and Eddy Chan in June 2017 as the first Indonesia-only venture capital firm, with a $10 million debut fund. Many people were skeptical initially that a country-specific fund focused on early-stage Indonesian companies would succeed, particularly because Patrick and Eddy planned to develop a small portfolio and engage directly with startups.

Intudo then closed its $50 million second round in 2019, with LPs including Founders Fund Eddy claiming that this helped validate its objective. Pintu, TaniHub Group, and Gredu are among the companies in its first two funds’ portfolios. He told TechCrunch, “[Initially] when we said we were going to raise $10 million, we got laughed out of the room by many managers, but four years into it, we’re running roughly $200 million. It shows that for the right markets, hyperlocal is the way to go.”

Intudo plans to invest in 12 to 14 startups for its third fund, focusing on agricultural, B2B and enterprise, education, finance and insurance, healthcare, and logistics. The first checks will be worth between $1 million and $10 million. Intudo will continue to lead early-stage and Series A rounds, but it now wants to invest in Series B and C rounds for firms from its first two funds.

Pintu, a crypto-exchange, is a solid example of Intudo’s investing thesis, according to Eddy.

Everyone was like, you invested in this because it’s trendy, but you have to understand that we met the founder when Bitcoin had dropped down to $6,000. When we gave him the term sheet, six months later, in March 2019, Bitcoin was at $3,000. The moral of the story is we knew the founder was legit, and we were able to pick up all the best talent because you can’t go to a lot of major unicorns to work on crypto.

Patrick Yip, Founder, Intudo Ventures

After signing checks, Intudo works closely with the founders. Before getting an investment, all of its companies, for example, have made a commercial contract sourced through the firm’s network. Intudo’s country-specific approach is also advantageous during the epidemic because it allows it to continue holding in-person meetings with founders on an almost weekly basis.

The founder community has obviously gone through a tough time this year and last year due to COVID. A lot of these founders needed to make course adjustments and corrections to their business plans. I think our role as an in-market, involved investor has been even more enhanced. A lot of the companies that have gone under, they did not have an in-country partner from the get-go.

Patrick Yip, Founder, Intudo Ventures

I think our involved approach and having a concentrated portfolio is something that is appreciated by the founder community as well, so that’s definitely something we intend to rinse and repeat going into Fund III.

Patrick Yip, Founder, Intudo Ventures
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