Japan’s SMBC launches $200 million to invest in Asian FinTech startups

Japanese bank Sumitomo Mitsui Banking Corporation (SMBC) has established the venture capital fund “SMBC Asia Rising Fund” (CVC) together with Tokyo-based venture capital firm Incubate Fund (IF) in Singapore with the aim of accelerating business development and partnerships through investments in high-potential Asian start-ups .

SMBC said in a statement that the fund will manage $200 million and over ten years, the fund will invest in start-up companies that contribute to the growth of SMBC Group’s business.

This includes financial institutions in Asia where SMBC Group has a stake through collaboration/business development in lending technology, payments, supply chain finance, Banking-as-a-Service, digital assets, etc.

Given the region’s medium to long-term growth potential, under the Asia Multi-Franchise Strategy (a strategy to build a second and third SMBC Group in the medium to long term in Asia’s emerging markets by offering full banking services, including retail, and transferring SMBC’s know-how and developing personnel), SMBC Group has expanded its Asia operations through investments in/acquisitions of local financial institutions, while at the same time improving its existing Asia operations.

Given this backdrop, CVC was established in Singapore to undertake investments in leading Asian companies by bringing together the robust global network SMBC possesses as a major financial institution with the advanced expertise in start-up investments that IF has accumulated through its various investment activities in India and Southeast Asia.

Through CVC, SMBC Group will improve its business and provide customers with new solutions by uncovering/applying new technologies via partnerships with companies that are invested in and developing new business models/products.

Furthermore, SMBC Group will increase the value of its financial institutions in Asia by collaborating with start-ups.

The use of ‘Rising’ in the ‘SMBC Asia Rising Fund’ is a reflection of SMBC Group’s commitment to growing with Asia.

Through CVC’s activities, SMBC Group will work with Asian start-ups to create new businesses and contribute to the growth of the region’s economy.

IF is a leading Japanese venture capital company specializing in early stage start-ups.

Since its establishment in 2010, IF has invested more than JPY 98.3 billion ($727.84 million) in more than 450 start-ups.

IF has a robust network in Asia and has the ability to implement/manage investments in and outside of Japan.

CVC will be managed by IF’s Singapore office: Incubate Fund Management Pte. Ltd.

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