Singtel ups investment in start-ups with additional US$100m fund

Singtel is planning to invest an additional US$100 million into Singtel Innov8, its corporate venture arm, raising its overall capital commitment to US$350 million. With the additional funding, Innov8 will reportedly broaden its portfolio of investments in Southeast Asia, the United States, China, Israel, and Australia, according to a press release from Singtel.

Innov8 invests in start-ups that align with Singtel Group businesses in the areas of 5G, Artificial Intelligence, the digital economy, sustainability, cyber security and emerging technologies. It operates on an evergreen fund model, re-investing returns from portfolio exits into new investments.

Singtel's group CEO and chairman of Singtel Innov8, Yuen Kuan Moon, said the capital infusion is meant for identifying and growing innovative start-ups with new technologies and capabilities that are synergistic and in lockstep with Singtel’s strategic reset to drive greater improvements in its core operations, accelerate our new growth engines, and place the company at the forefront of new and fast-evolving areas.

“As we sharpen our business focus, we will recycle our assets and capital into selected growth areas, reshaping our portfolio to better serve our stakeholders and build momentum for the longer term,” added Yuen.

Edgar Hardless, CEO of Singtel Innov8 added that the additional funding will help drive further investment deal flow and greater collaboration with the start-up ecosystem, unlocking more value for both the group and the portfolio companies. 

Since its inception in 2010, Innov8 has invested in over 95 start-ups and has had over 35 exits. Along with investing capital, Innov8 also promotes innovative technology inside the Singtel Group and facilitates access and partnership with business units across its territory.In 2016, Singtel Innov8 launched Singtel Innov8 Connect (Innov8 Connect), bringing start-ups and Singtel together to create innovative solutions for business challenges faced by the Singtel Group.

On the digital marketing front, Singtel recent sold Amobee to Tremor International for US$239 million.  According to Singtel, the divestment is in line with Singtel’s strategic reset to sharpen its business focus and recycle assets and capital into growth areas with higher returns.

CEO Yuen said that the divestment reflects Singtel's resolve in executing to its strategic reset. "We are actively reshaping our portfolio to ensure optimal allocation of resources towards new growth drivers, as well as improve shareholder value," he added. Following the Amobee divestment, Singtel will cease to hold any equity interest in the Amobee business. 

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