AVCJ

Weekly digest - October 06 2021

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  • Rana Tang
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06 October 2021
ESG BEST PRACTICE: GLOBAL TO GRANULAR
COVER STORY
COVID-19 has driven enterprise uptake of SaaS solutions in China, but paying customers are still few. Other markets offer some pointers on monetization.
TALKING POINTS
NEW DAWN
Is this Pakistan’s moment? Private equity in the country traces back to JS Private Equity’s $158 million debut fundraise in 2006, but difficulties containing regional terrorism and a lack of economic cross-over with India have restricted a fundamental opportunity to a theoretical possibility.
Most of the best evidence in recent memory for a turnaround has come in the past few weeks. The most dramatic example is last-mile delivery app Airlift, which raised an $85 million Series B round that was said to be the largest-ever start-up investment across the Middle East and North Africa region. It equates to about 5% of the country’s foreign direct investment (FDI) in the 2021 financial year.
The deal coincided with a $30 million round for B2B marketplace Bazaar that was touted as the largest-ever Series A in Pakistan. Investors included Indus Valley Capital, one of a clutch of growing local VC firms, which recently raised $17.5 million for its debut fund, beating a target of $15 million.
Several other GPs have decided now is the time. China’s Gobi Partners, which first entered Pakistan in 2018, has picked up UK-based CDC Group this week as an anchor investor for its debut fund in partnership with local conglomerate Fatima Group. 500 Global is in advanced planning stages for a Pakistan program, potentially including a local office, according to a person close to the situation.
These are significant votes of confidence, considering it was as recently June last year, that the Balochistan Liberation Army hit the Pakistan Stock Exchange in Karachi with grenades, killing several security personnel. It will be interesting to see if Airlift’s prediction that start-ups alone can contribute over 10% of FDI in the coming years.
Q&A
POEMA GLOBAL'S HOMER SUN
ADVENT PARTNERSMorgan Stanley Private Equity Asia’s former CIO on why he likes special purpose acquisition companies (SPACs) and what drew him to electric scooter and mobility technology player Gogoro.
ANALYSIS
CHINA BIOTECH: GOING GLOBAL
SOUTHEAST ASIA'S FOUR-TRICK CREDIT PONYA gradual shift in focus from sourcing assets from overseas for application in China to bringing China-made treatments to the world is challenging the notion of what constitutes a local biotech start-up.
DEAL FOCUS
VEDANTU HIGHLIGHTS EDTECH'S IMPACT POTENTIAL
INVESTORS FLOCK TO SAAS SPECIALIST ONESThe latest round for livestreaming teaching app Vedantu reframes India’s swaggering, unicorn-populated edtech sector as the impact opportunity it always was.
DEAL FOCUS
COVID-19 GROWS INDIA'S MEDIKABAZAAR
INVESTORS FLOCK TO SAAS SPECIALIST ONESPandemic-driven demand for masks, ventilators, and the like has propelled Indian medical equipment operator Medikabazaar to its next stage of development with a global mix of investors.
SEEN AND HEARD

GETTING SMART ABOUT AI
More than half of businesses bringing artificial intelligence in-house are not tracking the metrics required for success, according to the latest AI Readiness Barometer from UK tech consultancy Omdia. Data management, governance, and processes are the recommended priorities for getting an AI strategy on track.
SEEN AND HEARD

CLEANTECH VACCUUM?
Beijing, Shanghai, and Tokyo are most conducive innovation environments in Asia in terms of VC availability, government support, R&D spending, ecosystem infrastructure, university networks, and talent, according to Finom, an entrepreneur-focused financial technology provider. One notable anomaly is the green tech category, where no city cracks a score of 70, except San Francisco, which marks a perfect 100.
For your calendar
UPCOMING EVENTS
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