In order to speed up business development and partnerships through investments in high-potential Asian start-ups, the Japanese bank Sumitomo Mitsui Banking Corporation (SMBC) and the venture capital firm Incubate Fund (IF) of Tokyo co-founded the corporate venture capital fund “SMBC Asia Rising Fund” (CVC) in Singapore.
According to a statement from SMBC, the fund will oversee $200 million and invest in start-up businesses that help the SMBC Group’s operations grow over a ten-year period.
Included in this are Asian financial institutions where SMBC Group has equity interests as a result of partnerships and business development in areas such as lending technology, payments, supply chain finance, banking as a service, digital assets, etc.
SMBC Group has been growing its Asia business through investments in/acquisitions of local financial institutions while also enhancing its current Asia business in accordance with its Asia Multi-Franchise Strategy, which aims to build a second and third SMBC Group over the medium-to-long term in Asia’s emerging markets by offering full-banking services, including retail.
Given this context, the CVC was established in Singapore to carry out investments in top Asian businesses by combining the strong global network that SMBC has as a major financial institution with the advanced startup investment expertise that IF has amassed through its various investment activities in India and Southeast Asia.
Through partnerships with investee companies and the creation of new business models and products, the CVC will help the SMBC Group expand its operations and offer clients fresh solutions.
Additionally, by working with start-ups, SMBC Group will raise the value of the financial institutions in Asia in which it has invested.
The word “Rising” in the phrase “SMBC Asia Rising Fund” refers to the SMBC Group’s dedication to expanding with Asia.
The SMBC Group will collaborate with Asian start-ups through the CVC’s initiatives in order to establish new businesses and support the expansion of the local economy.
A well-known Japanese venture capital firm that focuses on early-stage start-ups is IF.
