Singaporean telecommunications firm Singtel pledged another $100m for early-stage investment vehicle Singtel Innov8 today, bringing its capital allocation up to $350m as the company seeks technologies that can strengthen its core operations.
Singtel Innov8 operates as an evergreen fund but the extra capital will support increased investment activity across Southeast Asia, the US, China, Israel and Australia.
Yuen Kuan Moon, Singtel’s CEO and the chairman of Singtel Innov8, said: “This capital infusion is meant for identifying and growing innovative startups with new technologies and capabilities that are synergistic and in lockstep with Singtel’s strategic reset to drive greater improvements in our core operations, accelerate our new growth engines and place us at the forefront of new and fast-evolving areas.
“As we sharpen our business focus, we will recycle our assets and capital into selected growth areas, reshaping our portfolio to better serve our stakeholders and build momentum for the longer term.”
Singtel Innov8’s areas of interest include 5G, artificial intelligence, cybersecurity, the digital economy, sustainability and emerging technologies. It also seeks to form partnerships between portfolio companies and Singtel’s business units across the Asia-Pacific region, which include Optus, Airtel and Telkomsel.
Singtel, the largest telecoms company in Singapore by revenue, set up the unit in 2010 with an initial $150m. It has backed nearly 100 companies and achieved some 40 exits including SenseTime, the China-based artificial intelligence technology provider with a $73bn market cap.
“Singtel Innov8 is empowered to move quickly to capture investment opportunities in the fast-paced venture market. Our mandate is flexible, allowing us to invest in both early and growth-stage companies,” said Singtel Innov8 CEO Edgar Hardless.
“This additional funding and our proven approach will help drive further investment deal flow and greater collaboration with the startup ecosystem, unlocking more value for both the group and our portfolio companies.”
The strategic reset referred to by Moon has been going on for just over a year and centres on Singtel’s efforts to update its business for the 5G age. Recent moves include paying $238m to hike its stake in Thailand-based telecoms operator Intouch Holdings from 21.2% to 25%, and selling off US-based digital media and advertising subsidiary Amobee for $239m.
The move to expand internationally comes as telecoms operators in Southeast Asia continue to beef up their early-stage investment activity.
Thailand’s True Corporation is reportedly setting up a $200m fund with Norway-based peer Telenor, and it would join a group already including Telkom’s MDI Ventures and Telkomsel’s Telkomsel Mitra Inovasi funds in Indonesia as well as Globe Telecom’s Kickstart Ventures unit in the Philippines.
