We are pleased to have an alternative funding group, such as LDA Capital, support our digital transformation into a leading Big Data enabler in IndonesiaJakarta (ANTARA) - Major shareholder of leading technology company PT IndoSterling Technomedia, PT Indosterling Sarana Investa, entered a put option agreement for Rp600 billion (US$42 million) with global alternative investment group, LDA Capital.
"We are pleased to have an alternative funding group, such as LDA Capital, support our digital transformation into a leading Big Data enabler in Indonesia," CEO of IndoSterling Technomedia, Billy Andrian, remarked on a press release received Thursday.
"LDA’s flexible financial solution will aid us to become the leading Big Data enabler as we intensify the depth of our products and services across the consumer, food and beverage, property, financial, capital market, digital publishing, and education sectors," Andrian stated.
Under the agreement, Indosterling will have the right, though not the obligation, to sell shares to LDA Capital via the put option agreement over a period of three years.
The transaction will further enhance IndoSterling’s access to capital, thereby allowing for additional accretive investments in the fast-growing Indonesian technology sector.
"Indonesia’s technology market is at an inflection point and could grow to between US$200 billion and US$300 billion in size in the coming years. We are excited about IndoSterling’s market positioning ... with an established management team on the back of strong macro tailwinds, LDA expects to have an attractive, risk-adjusted return on our investment over the next few years," Managing Partner of LDA Warren Baker affirmed.
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Indonesia’s digital economy is expected to reach a total value of US$70 billion in 2021, representing a 49 percent year-on-year (YoY) growth.
By 2025, the overall digital and internet economy in Indonesia will reach over US$146 billion in value, growing at an outstanding 20 percent compound annual growth rate (CAGR).
IndoSterling is attractively positioned to benefit from this growth and is confident that it will be Indonesia’s next leading tech Unicorn, the company stated.
Established in Jakarta in 2011, IndoSterling, a technology company of IndoSterling Group, has developed a diversified portfolio of information technology and digital companies, serving a diverse array of Business-to-Business (B2B) markets.
IndoSterling is also a dominant player in Indonesia’s property tech and digital publishing sector.
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Meanwhile, LDA Capital is a prominent global alternative investment group, with more than 32 portfolio companies across the globe. The founding team has committed over US$10 billion in both equity and credit and executed over 250 different transactions in over 43 countries around the world.
LDA is sector agnostic but has a strong concentration in technology, media, healthcare, consumer product services, and renewable energy. LDA seeks to back growth companies by supporting them with innovative, flexible capital solutions.
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LDA has made a strong push for building a portfolio of fast-growing global technology companies, with the possibility of attaining unicorn status.
One of LDA’s portfolio companies is Australia’s leading tech unicorn, Brainchip Holdings Ltd, which is a smart chip processor of semiconductors utilizing artificial intelligence and edge computing capabilities.
Since the announcement of the transaction with LDA, Brainchip’s market capitalization has increased by over 20 folds in less than 24 months. Over this period, LDA has deployed capital at rising share prices, thereby allowing Brainchip to optimize and control dilution from the investment.
Hence, IndoSterling has chosen LDA as its investment partner, given their recent success in the Asia-Pacific technology sector.
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Reporter: Yuni Arisandy Sinaga
Editor: Fardah Assegaf
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