Indonesia’s Bakrie Group sets up, anchors new VC fund

Bakrie Group, an Indonesia-based conglomerate, has set up a new venture capital and venture builder firm called Quantum Ventures. It is also anchoring the VC firm’s US$30 million debut fund.

In an email to Tech in Asia, a spokesperson for Bakrie & Brothers (BNBR), the group’s holding company, says that the publicly-listed firm will be looking to develop collaborations with the companies invested in and built by Quantum Ventures.

“There will be synergies taking place between BNBR and Quantum Ventures’ portfolio companies, as Quantum Ventures was set up to identify, scale, and grow corporate innovation within BNBR,” the spokesperson says.

Quantum Ventures is led by managing partner Benny Tjia, who previously worked at Microsoft and Indogen Ventures. The new VC firm says it builds Indonesia-focused ventures and invests globally to access the latest technology and best practices in accelerating Indonesia’s economic growth.

The firm focuses on early-stage startups that develop new “world-changing technologies” across Indonesia’s renewable energy, electric vehicle, logistics, and fintech sectors. It also aims to provide its portfolio companies with access to “ecosystem superchargers” such as the government, incumbents, and investors.

According to a BNBR document for investors dated December 2021, Quantum Ventures has deployed more than US$10 million from its fund.

Its portfolio includes Helio, a solar energy solutions company; Posfin, a fintech startup built in partnership with state-owned postal company Pos Indonesia; Module, a prefabricated construction builder; Loggis, a logistics aggregator platform; and VKTR, an electric vehicle (EV) startup. VKTR recently formed a joint venture with UK counterpart Britishvolt to provide nickel sulphate, a crucial ingredient for high-performance EV batteries.

Strong synergy

Established in 2021, the Quantum Ventures fund marks the second notable VC fund investment made by Bakrie Group. The conglomerate was also an anchor investor in the US$25 million fund of Convergence Ventures (now called AC Ventures, following a merger with local peer Agaeti Venture Capital) back in 2014.

While the Convergence deal appears to be a purely financial investment for Bakrie, its involvement in Quantum Ventures has a more corporate venture capital (CVC) feel to it, given how the new VC firm appears to ultimately serve the conglomerate’s business interests.

It is apparent that Quantum Ventures’ current portfolio is strategic to some of Bakrie Group’s subsidiary companies. These synergies are also highlighted in the group’s investor document.

VKTR, for example, will pave the future for Bakrie Autoparts, which has 40 years of experience in forging and casting as well as in producing automotive components for original equipment manufacturers. Similarly, Helio is set to support the sustainability efforts of coal-fired power plants operator Bakrie Power, while Modula will help digitalize building materials firm Bakrie Building Industries.

While Quantum Ventures does not describe itself as a corporate venture capital firm, its managing partner admitted that it does “more or less act as the CVC of BNBR,” and it also works with the company in other aspects of corporate innovation.

“We are to also advise BNBR in its digital transformation strategy and in architecting integration of its tech investment portfolios into BNBR,” adds Tjia.

A CVC play for Bakrie would make it the latest Indonesian conglomerate to invest in startups through a venture capital arm, following the footsteps of Djarum Group (through GDP Ventures), Sinarmas (SMDV), and Lippo Group (Venturra Capital).