MDI Ventures, the corporate venture capital arm of Indonesia’s state-owned telecom giant Telkom, is turning to Singapore to tap new investment opportunities in Southeast Asia, with a revamped thesis focused on artificial intelligence, blockchain and digital assets, according to its statement on Tuesday.
Under the new strategy, MDI will prioritise companies building enterprise AI applications, AI infrastructure, governance software, real-world asset tokenisation, institutional custody and regulated digital asset infrastructure.
The shift marks a sharper regional focus for MDI, which is looking to identify technology companies across Southeast Asia and help them expand into Indonesia through TelkomGroup’s network of enterprise customers, strategic partners and other resources.
Singapore will serve as MDI’s initial sourcing market under the strategy. The firm said the city-state accounted for around 57% of Southeast Asia’s AI funding in the 12 months to June 2025, with 495 AI startups raising $1.31 billion during the period.
For MDI, Singapore provides a pool of regional companies with ambitions beyond the city-state but could benefit from access to Indonesia’s larger market, regulated sectors and enterprise customers, the firm said.
The focus on AI comes as funding for the sector continues to outpace broader venture activity. MDI cited data showing AI companies accounted for 61% of global venture capital investment in 2025, attracting $258.7 billion.
In Southeast Asia, more than $2.3 billion flowed into around 680 to 700 active AI startups in the 12 months to June 2025, representing roughly 32% of all private funding in the region. This came as overall private funding in Southeast Asia fell to a six-year low of $1.85 billion across 229 deals in the first half of 2025, according to MDI’s data.
MDI is also looking for opportunities in Indonesia, where it estimates there are around 2,400 AI and deep-tech startups. Of 336 Indonesian AI companies tracked in its thesis work, only 66 have raised institutional funding.
The firm said this gap could create opportunities in areas including “Bahasa-first” AI applications, workflow automation, data governance, compliance, customer engagement and sector-specific AI deployment.
Infrastructure is another part of the investment thesis. MDI estimates Indonesia’s data centre pipeline will reach around 1,519MW by 2028, while cloud adoption across Southeast Asia is growing at about 20% annually.
As companies move AI applications from experimentation into production, MDI expects demand to increase for AI-ready computing, deployment support, cybersecurity, model governance and enterprise integration.
Blockchain and digital assets form the second major pillar of the strategy. MDI said it is focusing on the sector’s institutional infrastructure rather than speculative retail applications, including custody, tokenisation, payments, settlement, compliance and regulated digital asset services.
“Southeast Asia’s next wave of technology growth will be led by companies that solve real infrastructure and enterprise problems,” said Shannon Lee Chaluangco, investment director at MDI Ventures Singapore.
Ronaldi, director of MDI Ventures, said the revised strategy is intended to narrow the firm’s focus toward technology companies with established use cases and commercial potential.
Alvin Evander, VP of strategy at MDI Ventures, said the firm sees a similar shift taking place in Web3, with companies moving from speculative use cases toward infrastructure that can support institutional adoption.
Resumed investment
Founded in 2015, MDI has backed more than 90 companies across 12 countries and manages around $830 million in committed assets under management through multiple funds. Its portfolio spans sectors including fintech, cybersecurity, enterprise software and digital services.
The renewed strategic review follows a challenging period for MDI. The firm paused new investments in 2024 after Telkom initiated a review of its investment strategy and governance processes. The scrutiny intensified after losses from several portfolio companies, including TaniHub, Fabelio, and Zenius.
MDI had been seeking to sell stakes in more than 30 startups held by its debut fund as the vehicle approached the end of its investment cycle, with the proceeds intended to return capital to investors and be recycled into new investments. The portfolio included stakes in companies such as Finaccel, Cermati, SiCepat, KoinWorks, Qoala, GoCement and Billas. Several potential buyers emerged during the process, DealStreetAsia reported, since late 2024.
MDI subsequently resumed deploying capital last year, just with two startups: Singapore-based enterprise software company Whale and cybersecurity firm CYFIRMA. Sources said both companies are integrating with Telkom, complementing the telecom group’s core businesses, as DealStreetAsia reported.
MDI recorded 19 exits by the end of last year, with its portfolio exits including Wavecell, Geniee, Whispir, Red Dot Payment, Observe IT, Codapay, Loft Orbital, and Sonar Platform, with most exits coming through acquisitions and listings, as cited separately from Telkom’s 2025 annual report.
