“At Mandiri Capital Indonesia, we’ve embraced the challenge of transforming not just our portfolio but also our approach to investment.” With this statement, Dennis Pratistha, Chief Investment Officer at Mandiri Capital Indonesia (MCI), sets the stage for a discussion on venture capital’s vital role in fintech and sustainable development.
In a recent episode of The MoneyPot LIVE at Money 20/20 Asia, Dennis detailed MCI’s journey from its inception in 2015 to its current status as a key player in digital and financial services transformation.
Mandiri Capital Indonesia is a venture capital firm established in 2015 to drive Mandiri Group’s digital transformation. Initially an innovation hub, MCI has become a key player in fintech and digital services, supporting platforms like a financial super app with 21 million users and a merchant platform for SMEs. Evolving into an independent VC, MCI now raises funds from third-party partners to back innovative and sustainable tech solutions.
“Our aim is to not only grow financially but also to foster a sustainable ecosystem where technology and innovation play a key role in addressing environmental challenges.” This vision reflects MCI’s commitment to being more than just a financial backer by supporting the comprehensive development of their portfolio companies.
In addition to this, there are several efforts to help its portfolios tap global markets, ensuring they have the resources and opportunities to expand and innovate on an international scale.
MCI’s Strategic Approach to Venture Capital
“MCI was established as the innovation hub for Mandiri Group, and over the years, we transformed into a CVC,” Dennis states, marking the transition of MCI from an internal innovator to a standalone venture capital firm. This action focuses on strategic pillars like business matchmaking and acceleration, aimed at fostering growth and adding value operationally for startups.
Fostering Founder Success with Strategic Support
“As investors, our primary goal is to generate returns by growing the foundations of the business,” Dennis explains. This approach highlights MCI’s founder-friendly strategy, where they provide an ecosystem of support that goes beyond mere financial investment. The support includes helping startups grow the fundamentals of their businesses during market fluctuations, which MCI views as essential for long-term success.
“Our value creation initiative revolves around three pillars: business matchmaking, business acceleration, and networking,” Dennis continues. These pillars are part of a six-week business acceleration program designed to assist founders in navigating large corporations and securing business contracts. This strategic support extends beyond funding, providing startups with the necessary tools to enhance their market presence and operational success.
The XYZ of MCI’s Support: Bridging the Gap for Startups
Dennis elaborates on the unique framework developed by MCI to support startups, known as the XYZ initiatives. These components of MCI’s ecosystem bridge startups with opportunities and essential networks:
- X for Business Matchmaking: This pillar connects startups with potential large corporate partners, facilitating initial agreements and identifying business opportunities.
- Y for Networking: It provides extensive networking opportunities to help startups expand their industry connections.
- Z for Business Acceleration: This stage helps startups navigate corporate complexities to secure business contracts, accelerating their operational growth.
Pioneering Sustainability Through Strategic Investments
“In 2023, we launched the Mandiri Investable Global Climate Tech Fund,” states Dennis. This fund focuses on strategic investments in climate technology that aim to contribute to global environmental solutions. The initiative is part of MCI’s effort to support Southeast Asian governments, including Indonesia’s, in developing a climate tech ecosystem.
This strategy allows MCI to directly engage in the promotion and expansion of technologies that address environmental challenges. The approach is designed to align with government efforts to enhance sustainability and infrastructure, establishing MCI as a proactive participant in regional environmental strategies.
Dennis notes, “We aim to collaborate with governments to kick-start and expand the climate tech sector, creating sustainable impacts across the region.” This plan includes investing in and bringing advanced technologies from more developed markets to Southeast Asia to accelerate local development.
The Right Time for Startups to Engage with MCI
“The best time for a startup to seek investment is after achieving product-market fit and when they are already generating revenue,” advises Dennis. This timing ensures that MCI can provide the most effective support, helping startups to scale effectively and at an opportune time.
Looking forward, MCI aims to continue its strategic investments and support for startups, focusing on digital transformation and sustainability.
“We focus on collaboration…it’s not about conquering the world anymore, it’s about partnering up to make the world a better place,” Dennis notes, emphasizing the importance of shared experiences and partnerships in achieving sustainable growth.
