A JOINT venture between United Overseas Bank (UOB) and Temasek, InnoVen Capital, on Monday announced it has signed two venture debt financing agreements valued at US$5 million with e-commerce startups in South-east Asia.

In the first quarter this year, InnoVen signed financing deals with Malaysia-based KFit Holdings, an e-commerce health and fitness company, and Thailand-based Pomelo Fashion, an e-commerce fashion company.

Both companies will be using the venture debt loans, totalling US$5 million, to develop their business in the region.

These startups are among the 20 South-east Asian, Indian and Chinese companies which InnoVen has identified for venture debt funding in the next six months. They are in sectors such as e-commerce, financial technology, logistics and big data.

Eric Tham, head of group commercial banking, UOB, said venture debt is important in nurturing Asia's entrepreneurs and in encouraging innovation.

"UOB was formed by enterprising minds and has been supporting the growth of SMEs for more than eight decades. We see the importance enterprise plays in economic growth and are committed to ensuring that the best startups have the necessary funding support to develop into world-class businesses. This in turn will help to drive the economies of Asia," said Mr Tham.