Temasek Seeks to Expand Venture Debt Financing in Asia

Singapore’s Temasek Holdings is partnering with United Overseas Bank (UOB), a major Singaporean bank, to provide up to US$ 500 million in venture debt for startups in China, India and Southeast Asia. Under the deal, United Overseas Bank will acquire 50% of Innoven Capital, a subsidiary of Temasek Holdings. In addition, UOB and Temasek will each commit US$ 100 million of paid up capital to the jointly-owned company Innoven Capital. With more capital, Innoven Capital will fund startups focusing on sectors such as consumer, healthcare and clean technology over the next five years.

Earlier in 2015, Temasek Holdings acquired Silicon Valley Bank India’s venture debt arm renaming it Innoven Capital after the purchase. At the time, the venture debt business lent money to Indian startups like wallet provider MobiKwik and online test prep company Embibe.

Temasek’s Ong Beng Teck, who serves as managing director, Enterprise Development Group, commented, “Temasek is committed to building InnoVen and promoting growth of innovative companies by working with entrepreneurs and venture capitalists across Asia. This new pan-Asian venture debt financing initiative will seek the next generation of leading companies, providing the support they need to scale and succeed.”

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