Singapore – AI-driven companies in Asia will receive powerful support to support their growth under new collaboration between DBS and multi-asset investment platform Granite Asia.
First, the partnership has closed a US$110 million (S$126.5 million) fund for initial public offerings of some of the region’s AI-driven companies.
DBS announced on February 23 that the partnership will provide services to support high-growth companies in Asia at every stage of their lifecycle, from private capital to public markets.
These services include financing, merger and acquisition advisory, and financing activities such as bond issuances and IPOs.
The partnership will run for three years and will give DBS’s high-net-worth clients early access to growth-stage companies and companies preparing for IPOs.
Granite Asia gives investors access to a variety of asset classes, from private equity and private credit to public securities such as stocks and bonds.
DBS Chief Executive Officer Tan Hsu Xiang said the partnership was DBS’s first with an asset management company.
This leverages Granite Asia’s strong ties to founders and its track record of supporting and investing in innovative companies in Asia.
Mr Tan added that DBS can serve these founders in a full range of capacities across wealth, institutional banking and global financial markets.
This will “offer differentiated investment opportunities to our clients and create new avenues for ambitious founders to expand internationally,” she said.
The AI-powered fund is the first in a series planned under the partnership and will focus on businesses where artificial intelligence is central to operating and creating value for customers. This is different from AI-enabled companies, which simply use technology to improve work processes.
AI-driven companies include Netflix. Grab, the super app for mobility, delivery and financial services. gaming and e-commerce company Sea; and Chinese technology giant Tencent.
The fund is seeded with capital from investors in Southeast Asia, South Asia and Europe. Granite Asia will allocate the pooled funds to selected IPOs of AI-driven companies in Asia.
It seems like the timing is good for a collaboration. Data provider Crunchbase noted that as of February 20, more than 13,000 AI-driven companies have been founded in Asia since 2015.
Many are now seeking capital injections to accelerate their expansion plans.
“Capital inflows to Asia are expected to increase in the coming years, and this initiative will foster a vibrant funding ecosystem as listings return to Asian stock markets,” Tan said.
Granite Asia has guided five portfolio companies from private markets to public listings in the past six months. The asset management company plans 10 more IPOs.
To date, the firm has invested in 127 companies worth over US$1 billion and supported 65 IPOs worldwide.
Foo Jixun, Senior Managing Partner at Granite Asia, said, “For over 20 years, Granite Asia has worked closely with founders building category-defining companies across Asia.”
He said the partnership with DBS will enable the company to strengthen its suite of services for high-growth Asian companies “as capital markets regain momentum and growth capital becomes more accessible across the region.”
DBS and Granite Asia will develop a private capital product designed to help technology-driven Asian companies grow and transform “with non-dilutive capital,” allowing founders to raise capital without giving up equity ownership.
