Singapore-based United Overseas Bank (UOB) has entered in an agreement with investment firm Temasek to provide a venture debt financing of $500 million for Asian startups. UOB and Temasek will provide support to startups in India, China and Southeast Asia countries. As part of the agreement, UOB will purchase a 50% stake in Temasek’s wholly-owned subsidiary, InnoVen Capital.
“Subject to relevant regulatory approval, InnoVen will be a UOB-Temasek joint venture. UOB and Temasek will each commit up to $100 million of paid up capital to the joint venture,” Temasek said in a statement.
Commenting on the development, Temasek Managing Director of Enterprise Development Group Ong Beng Teck said, the company is committed to build InnoVen and promote growth of innovative companies by working with entrepreneurs and venture capitalists across Asia.
Apart from this, in March, US-based VC firm, Peesh Venture Capital launched a venture capital fund PVCII of $50 million and an accelerator programme to make early-stage investments in India. Other firms such as Astarc Venture, Accel Partners, SAIF Partners, Indian multinational corporation Infosys and Pune-based IT company Persistent Systems had also launched funds for Indian startups this year.