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ZWC Ventures sets up US$150 million Southeast Asia and China fund

Southeast Asia map

ZWC Ventures

24/5/2019 – Chinese venture capital firm ZWC Ventures said that it has closed its first Southeast Asia and China fund at US$150 million.

Limited partners (LPs) in the fund includes corporates, fund of funds, family offices, and high-net worth individuals from mainland China and Hong Kong including Jason Jiang, the Founder and Chairman of private media and advertising companies Focus Media.

According to ZWC Ventures co-founder and partner Terrance Lok, the fund will target in early to late-stage startups that are operating in e-commerce, social commerce, fintech, and AI sectors, as well as their sub-sectors, such as first-mile fulfillment logistics or supply chain fintech.

Checks will have an average size of US$ 500K to US$10 million for early-stage investments and US$10 million to US$60 million for growth-stage investments.

The firm’s footprint in Southeast Asia also includes a venture builder arm, Zynergy, that aims to provide financial, operational and strategic support for startups across the region.

Zynergy allocates US$500K to US$1 million initial seed funding for each selected startup and these will have access to Zynergy’s network of entrepreneurs and investors in China. The firm aims to work with at least five Southeast Asian startups through Zynergy program this year.

So far, the VC firm has already channeled US$100 million to five investments in the region, which include Singapore’s online tuition startup Tenopy, Jakarta-based media company Target Media Indonesia, and an unnamed Indonesian ecommerce platform.

The firm is also currently eyeing two potential investments – an Indonesian logistics first-mile provider and Singapore-based AI startup.

ZWC Ventures currently has US$1 billion s assets under management across more than 30 companies from its USD and RMB denominated funds.

Most of its investments are in China, and they include social app Tan Tan, AI startup 4th Paradigm, food, and lifestyle e-commerce platform Global Scanner, and smart charging company Xiao Dian.

ZWC Ventures targets to channel another US$300 million into the region in the next three years. Part of that will come from the ambitious USD 500 million second fund ZWC wants to start putting together in Q3 this year.

Malaysia Cloud Kitchen Slash Food Delivery Startup Dahmakan Raises US$5M Series A

Dahmakan 1

23/5/2019 – Kuala Lumpur based full stacked food delivery startup Dahmakan (styled as dahmakan) bags US$5M in a series A funding.

New investors joining the funding round include U.S.-based Partech Partners and China’s UpHonest Capital. Existing backers Y Combinator, UK-based Atami Capital, and the former CEO of Nestlé (who was an angel investor) also returns to this funding round.

Nicolas El Baze, General Partner at Partech Partners, said: “We have looked at different companies in the space in Silicon Valley, Europe, and Asia. dahmakan clearly stood out due to its unique operating system that orchestrates all parts of the value chain. The company has reached a crucial inflection point as the system is now ready to expand fast into other markets in Asia.”

The funding was closed earlier this year but was announced along with Dahmakan’s expansion plan announcement.

Jessica Li, the company’s COO and co-founder, stated that immediate priority will be the local expansion of the service in its home country of Malaysia. The service will be made available in two more Malaysian cities, Johor Bahru and Penang during the third quarter.

Li is also eyeing to make the food delivery service available in Singapore and Indonesia by the end of 2019.

Previously, the startup has entered the Thailand market following the acquisition of Bangkok based Polpa, which shares a similar business model with Dahmakan; operating from cloud kitchen and handling all other business aspects in-house.

“In the last few years, we have developed an operating system that drastically reduces the traditionally high-cost structure of food delivery. The technology allows us to deliver better quality food at more affordable prices compared to other on-demand food delivery startups while maintaining a higher profit contribution margin,” said Jonathan Weins CEO of dahmakan.

Founded in 2015 by former high-level employees of Rocket Internet owned FoodPanda, also a player in the food delivery market, Dahmakan has taken the cloud kitchen approach launching multiple distribution “satellite” kitchens in Malaysia. With such an approach, Dahmakan is making their business easier and faster to scale.

“This new funding round will allow us to drive growth in existing and new markets, including launching new distribution channels such as partnering with food delivery marketplaces and retailers as well as expanding our own delivery coverage,” Weins added.