Indonesia’s BNI just announced a plan to set up a new VC. The state-owned lender has prepared IDR 600 billion ($42.9 million) to IDR 700 billion ($50 million) for the new VC.
It is a part of the company’s investment to Fintek Karya Nusantara (Finarya). The later is state-owned operator of the country’s payment platform, LinkAja.
At the latest funding round for LinkAja, the firm would join the round through its venture entity, BNI Ventures. The number of the investment will be around $25 million.
This investment is going to be the earliest investment stage of Indonesia’s BNI to LinkAja. Further, there will be two more phases coming for future funding.
While at the first phase BNI and others can still invest through its brokerage arm, BNI Sekuritas, the next phases would not be so. They need a VC fund to invest in the company further.
Read More: Trax Retail Announced $100 M Funding
Indonesia’s BNI VC funding: how
There are two options for the firm to open this new VC. They can start from the scratch or they can acquire an existing VC. This is still going to be a further discussion for the leaders in the firm.
However the firm’s Finance Director, Anggoro Eko Cahyo has stated that the company will execute the plan by the end of this year.
When they have the VC, Indonesia’s BNI would follow the country’s other firms that have settled their own VC funds earlier. For instance telco firm Telkom that operates MDI Ventures. As well as another lender, Bank Bandiri that has its own Mandiri Capital since 2016.
Read More: Visa Joins Go-Jek’s Series F Round
LinkAja itself is Indonesia’s first state-owned digital wallet. Facing various delays, the company is a merge of 6 digital wallets from the country’s state owned firms.
In Indonesia, LinkAja competes with Grab’s digital wallet OVO, Go-jek’s Go-Pay, and DANA. Not to be behind the trend, the state-owned company has also set a new investment feature on its app. It is educating its customers to invest wisely.
But BNI future VC funding would not be for LinkAja only. The firm stated that it has plans on investing to other fintech startups in the country that has the same vision as the firm’s.