Iris Capital launches Malaysia's first venture debt fund

VENTURE firm Iris Capital Partners has launched a RM160 million (S$51.53 million) venture debt fund - a first in Malaysia - to finance high-impact startups in the country and broader South-east Asia.

The Iris Fund will be co-managed by Hanwha Asset Management, in its first venture debt partnership in Malaysia. The fund's backers include Penjana Kapital, which is owned by Malaysia's finance ministry, as well as institutional and high net worth investors. Its first investment is Growthwell Group, an alternative meat and seafood provider for F&B players in Singapore and 10 other markets.

The fund aims to provide a non-dilutive financing option to propel Malaysian startups and aid the country's economic growth. Iris Capital Partners is one of 8 venture capital fund managers participating in Dana Penjana Nasional, a fund-matching programme by the Malaysian government aimed at boosting the startup scene.

Malaysia's startup scene has long flown under the radar, compared to Singapore and Indonesia, due to tepid sentiment and a challenging economic climate - although some reckon that investor appetite is picking up, especially from Korean investors.

Hanwha is looking to invest more in Malaysia and South-east Asia, and the Iris Fund represents its strong belief in the region's growth, said Kimo Kim, principal at the Hanwha Growth Fund, who is also a partner of the Iris Fund.

This will be the first of "many partnerships" with Iris Capital Partners, he added.

The fund's chairman, Wan Kamaruzaman Wan Ahmad, is on the lookout for startups "with comprehensive business plans and projections that have clear strategies for long term growth prospects".