[27] Alta Views: your latest scoop of Private Capital Markets

Hi Alta-natives! In this edition, we will look at the e-Conomy SEA Report 2023, the trend of electrical vehicle start-up as acquisition prospects and why asset managers are rooting for Private Credit.

e-Conomy SEA Report 2023 by Temasek, Google and Bain & Company

• Southeast Asia has showcased impressive resilience amidst global economic challenges. Digital enterprises in the region have strategically shifted their focus towards monetization, with an anticipated revenue of US$100B in 2023 , reflecting a strong 27% compound annual growth rate since 2021, largely contributed by e-commerce, travel, transport, and media, accounting for $70B in revenue.
• The adoption of digital financial services is on the rise, with digital payments constituting over 50% of all transactions. This shift has given rise to sustainable business models in pure-play fintech companies, while traditional financial institutions are fast-tracking their digital transformation to retain customers.

• To ensure sustainable unit economics and profitability, businesses actively target high-value users, especially in sectors like gaming, travel, and transport. Digital inclusion has made progress in recent years, with rural areas experiencing up to a three-times increase in connectivity since 2015.?

• However, there is a growing digital economic gap for consumers in Southeast Asia’s non-urban areas. To tap into the region's full economic potential, private capital market investors may consider opportunities in ecosystem investments aimed at bridging this divide, which can contribute to long-term digital economic growth and provide sustainable investment options in Southeast Asia.

Electrical Vehicle Start-up as Acquisition Prospects

• The shift towards Tesla's charging standard among major automakers highlights the trend of standardizing EV charging technologies . Attracting investment, potentially increasing demand for EV-related technologies and projects creating opportunities for private capital market investors.

• Singapore will deploy 60,000 EV charging points by 2030 and offer investment prospects for private capital market participants. Stellantis' investment in Leapmotor underscores the significance of international collaborations in the global EV market.

• Such partnerships provide avenues for private capital investors to enter the evolving EV landscape, especially as traditional automakers seek footholds in emerging markets, potentially driving mergers and acquisitions in the EV technology sector.

Asset Managers Rooting for Private Credit

• Major asset managers, including BlackRock and Fidelity Investments, are expanding their private debt capabilities, driven by increasing investor interest in private credit. This trend is evident as 12 large asset managers launch private credit funds , capitalizing on the appeal of diversified senior credits in the mid-market with yields of 11-12%.
• Singapore's Orion Capital Asia is seizing this opportunity, aiming to close its third private credit fund at a minimum of USD400M in the next year, reflecting the heightened interest from limited partners in the Asian private credit sector.

• This trend offers private capital market investors the chance to engage in the expanding private debt market, thereby diversifying their portfolios and capitalizing on prevailing market conditions.

Seizing Opportunities in Southeast Asia's Booming Healthtech Industry

• The rapidly growing healthtech sector in Asia offers attractive prospects for private capital market investors. Healthtech, with the potential to impact over a billion lives, is expected to grow substantially in Asia and could create up to USD100B in value by 2025 with an annual market size growth of 22%.
• CBC Group's successful USD875M raise to meet healthcare infrastructure demand reflects the sector's potential. The healthtech industry's assets under management are projected to triple or quadruple by 2027, offering diverse investment opportunities.
• Recent investments, including Halodoc's USD100M series D funding and the India Resurgence Fund's USD64M injection into Ivy Health and Life Sciences, signify the sector's appeal to private capital.
• Singapore's AWAK Technologies secured over USD20M in a Series B round, co-led by Lion X Ventures and Vickers Venture Partners, to support clinical trials and expand into the US market.East Ventures , an Indonesia-focused venture capital firm, has introduced a US$30M fund that targets early-stage local startups across various healthcare sectors. In parallel, Quadria Capital , a major healthcare-focused private equity firm in Asia, has also achieved a first close of US$500M for its third fund.
• East Ventures , an Indonesia-focused venture capital firm, has introduced a US$30M fund that targets early-stage local startups across various healthcare sectors. In parallel, Quadria Capital , a major healthcare-focused private equity firm in Asia, has also achieved a first close of US$500M for its third fund.
• These investments align with the post-COVID global trend of localized healthcare, providing growth opportunities for private capital market investors in Southeast Asia.

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?? Notable Fundraises

Ola Electric | US$384M | Series F | Automotive

Developer of an electric mobility platform designed to make electric mobility convenient, dependable, and affordable. The company's platform offers shared daily mobility and deploying charging and battery swapping networks focusing on the commercial electric vehicle segment, enabling users to get affordable e-vehicle ride-hailing with ease.

Inteluck | US$34M | Series C | Logistics

Operator of a logistics platform intended to monitor and manage shipments and drivers in real-time. The company's platform utilizes the internet of things and data to provide data-driven third-party logistics services such as trucking, distribution, freight forwarding, contract logistics and customized supply chain assistance, enabling first and mid-mile logistics companies to track their delivery and feel secure for every transaction.

You Trip | US$50M | Series B | FinTech

Developer of a multi-currency mobile wallet designed to offer zero transaction fees across various currencies at wholesale exchange rates. The company's wallets offer a mobile financial service for travelers to simplify overseas spending and create a fuss-free travel experience as well as permit them to manage their money in a simpler yet smarter way, enabling travelers to make overseas payments without transaction or currency exchange fees.

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About Alta Views

A fortnightly collection of the latest news from Private Capital Markets. Put together by Alta’s team of analysts, we bring you the most critical and timely pieces from private markets, to help you navigate the broad horizon. Stay tuned as we bring you the most notable fundraises, analysis on industries and companies trending within investor networks, the latest headlines, and more!

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