Telkomsel, the largest cellular operator in Indonesia announced on Monday a new investment fund with an initial capital of USD$40 million for early-growth stage startups to develop digital services.
The investment fund is setup in collaboration with MDI Ventures Telkom and Singtel Innov8, a Singtel corporate venture capital (CVC). MDI is a corporate venture capital initiative by Telkom Indonesia which is based in Jakarta with operations in Singapore and Silicon Valley.
The funds will be managed by a newly established 100% owned subsidiary by Telkomsel, Telkomsel Mitra Innovation (TMI). TMI is tasked with carrying out investment activities as well as synergy and collaboration processes in various Telkomsel business units to encourage the company's digital transformation aspects in order to accelerate the development of various new services, improve customer experience and optimize the company's business processes. TMI will invest in promising new startups that has the potential to cooperate synergistically in accelerating the growth of the company by utilizing access to the ecosystems, assets and competencies of Telkomsel.