Singapore’s Annual Budget, tabled in Parliament this week by Prime Minister Lawrence Wong, made a strong pitch for reviving the capital markets, boosting the startup ecosystem, and advancing AI. The budget announced the second S$1.5-billion ($1.2 billion) tranche of the Anchor Fund, a co-investment between the government and Temasek, to capitalise on the renewed momentum in the domestic equity markets and strengthen the pipeline of quality listings on the Singapore Exchange, while another S$1.5 billion was set aside for the equity market enhancement programme. And in a big push for enterprise AI, the PM announced a new ‘Champions of AI’ programme to support firms looking to comprehensively transform their businesses using the technology.
Meanwhile, startup fundraising in Greater China began on a solid footing in 2026 as investors rushed to close deals ahead of the week-long Chinese New Year holiday beginning February 15. Startups headquartered in mainland China, Hong Kong, Macau, and Taiwan collectively raised more than $6.9 billion in January through the completion of 258 deals, show proprietary data compiled by DealStreetAsia.
Moving onto other headlines of the week:
LP-GP updates
The base of private wealth across the Asia Pacific is broadening quickly, with emerging hubs beyond Singapore and Hong Kong giving asset managers access to a larger pool of capital, said Kerrine Koh, Managing Director at Hamilton Lane’s client solutions group,
Asia’s private equity industry is gearing up for a new wave of dealmaking as marquee fund managers including EQT, Blackstone, KKR, and TPG are attempting to raise even bigger Asia flagship funds than their previous vintages, signalling confidence in the region’s long-term growth potential.
Macquarie Asset Management is ramping up its wealth business in Asia, appointing three professionals to bolster its alternative investment offerings for private wealth clients.
The Asian Infrastructure Investment Bank has committed a total of $125 million to Keppel Private Credit Fund III, the latest private credit vehicle of Singapore-listed global asset manager and operator Keppel.
The International Finance Corporation (IFC) is proposing an equity investment of up to $50 million in the latest private credit fund of Ascertis Credit Group, according to a disclosure.
Eight Roads has shelved its plan to divest stakes in about 40 China-based technology companies, primarily due to the decision to hold on to the asset for longer amid the improving overall market environment in China.
Kotak Alternate Asset Managers Ltd, the alternative investment arm of the Kotak Group, has announced the first close of its Kotak Yield & Growth Fund at $430 million (approximately Rs 3,900 crore).
AIGF Advisors, the Southeast Asia-focused private equity platform of Japan’s Mitsubishi Corporation, has reached a first close of 12.1 billion yen ($79 million) for its third fund.
Deals corner
CVC Capital Partners has initiated early-stage discussions to invest in Indonesian retail giant PT Mitra Adiperkasa (MAP Group), according to people familiar with the matter.
The Carlyle Group is set to acquire a strategic majority stake in Nido Home Finance Limited, a wholly owned subsidiary of Edelweiss. As part of the transaction, Carlyle Asia Partners will invest Rs 2,100 crore (approximately $230 million) in the company through a mix of primary and secondary investments.
IvyCap Ventures, a backer of jewellery brand BlueStone and beauty platform Purplle, has initiated talks to invest in an artificial intelligence startup looking to strengthen its R&D, expand hiring, and scale operations in India and abroad.
Southeast Asian ice cream maker Aice Group Holdings, which was in the market to raise funds for almost two years, is learnt to have found support from its strategic backer China Mengniu Dairy.
Singapore- and US-based biotech startup Engine Biosciences has raised $13.6 million in its latest funding round, backed by existing investors Polaris Partners, ClavystBio, SEEDS Capital, Coronet Ventures, and Vantage Bio, regulatory filings show.
LeapFrog Investments is partnering with Philippine-based private equity firm Navegar to take a significant minority stake in Global Care Medical Center (GCMC).
Consumer-focused Indian venture capital firm Fireside Ventures has seen a significant rise in participation from global limited partners in its fourth fund.
The International Finance Corporation (IFC) is considering extending a $50-million trade finance guarantee facility for Vietnam’s Nam A Commercial Join-Stock Bank, according to a disclosure. It is also considering a debt investment of up to $150 million in Vietnam Prosperity Joint-Stock Commercial Bank to help expand lending to SME enterprises. The lender is also considering investing up to $200 million in Piramal Finance, an Indian non-bank lender that provides housing and small business credit. Besides, it is considering an investment of up to $50 million in India’s NDR Smart Spaces Pvt Ltd.
Embedded credit startup Seedflex is preparing to raise a Series A round of $6-8 million later this year, as its Malaysia operations turn profitable and the company looks to scale beyond its flagship market.
Endeavor Global, the global entrepreneurial network, is launching its fifth global hub in Singapore this year, joining London, New York, San Francisco, and the UAE.
G42, the Abu Dhabi-based technology holding group; and a consortium comprising Vietnam’s FPT Corporation and Viet Thai Group have formed a $1-billion partnership to develop sovereign AI capabilities and cloud infrastructure across the Southeast Asian nation.
Radiance Renewables, an Indian renewable energy platform backed by Eversource Capital, has raised about $100 million in funding from Impact Fund Denmark and the Dutch FMO.
A consortium of Centurium Capital, Temasek, and True Light Capital has completed the privatisation of China’s ANE, with the company delisting from the Hong Kong Stock Exchange.
Malaysia-based automotive after-sales platform ServAuto has secured a new round of funding led by Vynn Capital.
Asian private equity firm FountainVest is acquiring 92% of Jixiangju, a Chinese food manufacturer specialising in pickles and sauces, through a vehicle affiliated with its $2.9-billion fourth flagship fund.
Living Lab Ventures, the corporate venture capital arm of Sinar Mas Land, is turning BSD City, located in the Banten province of Greater Jakarta, into a holistic healthcare ecosystem even as it believes the plan could take decades to fully mature.
Saison Investment Management Private Limited, the cross-border investment arm of Japanese financial giant Credit Saison, has increased its exposure to the Philippine lending market.
India’s Marico South-East Asia Corporation, has entered into definitive agreements to acquire 75% stake in Vietnam’s Skinetiq Joint Stock Company, based on an equity valuation of $38.6 million.
Indonesian auto-commerce startup Moladin and regional fintech firm Xendit have conducted layoffs in recent weeks.
Tower Capital Asia has made an undisclosed strategic majority investment in V-Key, a provider of digital identity and mobile application protection and security solutions in the Asia-Pacific.
Early-stage Indian venture capital firm W Health Ventures has announced the initial close of its second fund at nearly $61 million (Rs 550 crore), with a target corpus of Rs 630 crore.
Indian digital identity verification firm IDfy has secured Rs 476 crore in funding (around $53 million), led by Neo Asset Management.
Earnings highlights
The earnings season started with a bang as Southeast Asian ride-hailing and delivery giant Grab Holdings reported a net profit of $200 million for the year ended December 31, 2025, reversing a $158-million loss in 2024. Riding on this metric, Grab’s management has built an emboldened target: $1.5 billion in EBITDA by 2028–a tripling in three years. To get there, Grab will need to grow EBITDA at a compounded annual rate of roughly 44% per year from 2025 levels.
By the end of the third quarter of its fiscal year, Japan Post Bank has already exceeded its full-year target for alternative investments, with the portfolio reaching 14.4 trillion yen ($91 billion) as of Dec 31, 2025.
Temus, a digital transformation services firm backed by Temasek Holdings, reported robust revenue growth in 2024 but continued to post losses amid significant operating cash outflows, according to its latest ACRA filings.
Tiger Global-backed SirionLabs, a global enterprise SaaS company, reported strong revenue growth for the financial year ended March 31, 2025. However, the group’s net loss widened sharply as employee and operating expenses increased during the period, ACRA filings show.
Battery recycling firm Green Li-ion’s losses declined 44% in the financial year ended April 2025, supported by early-stage income from its US facility and payments from its licensing business, even as revenue remained modest, per its ACRA filings.
Deep dives
Indonesia’s capital markets are hoping to ride a wave of large-scale initial public offerings (IPOs) this year, but experts caution that their success hinges on progress in capital market reforms, investor confidence, and the resolution of recent concerns raised by MSCI.
Private equity dealmaking in Southeast Asia has remained robust despite a prolonged exit slowdown, as fund managers continue to deploy capital across the region while holding onto portfolio companies for longer, according to speakers at DealStreetAsia’s Indonesia PE-VC Summit 2026.
Indonesia is a “must-have” component for any fund with a Southeast Asia strategy, but turning this conviction into concrete portfolio exposure remains a challenge, a panel of regional and global investors shared at a recent DealStreetAsia event, just a day after a warning from index provider MSCI rattled the country’s stock markets.
Indonesia’s Financial Services Authority (OJK) has suspended the underwriting licence of brokerage firm UOB Kay Hian Sekuritas and imposed a series of penalties on issuers and executives, as the regulator moves to demonstrate tougher enforcement amid renewed scrutiny from global index provider MSCI.
