TSE Asia Startup Hub

Indogen Capital

In 2024, the Tokyo Stock Exchange (TSE) launched the TSE Asia Startup Hub to accelerate promising Asian companies and prepare them for IPOs. Today, the initiative boasts 53 partners and four observers, showing strong regional interest.

As the only Indonesian venture capital firm involved, Indogen Capital provides a unique perspective. Chandra Firmanto, Founder and Managing Partner, shares insights on strengthening cross-border collaboration and unlocking new pathways for Asian startups to go public.

Indogen Capital—the trustworthy VC for growing ASEAN business

With a rapidly growing population of 550 million and an average median age of around 28 years Southeast Asia presents a unique and dynamic market for venture capital investment.

TSE: Let me ask about your company, the Indogen Capital.

Chandra Filmanto: After studying in the U.S. and working at Accenture, I returned to Indonesia in 2005 to help with my family’s Yamaha Motorcycles distribution business, which has been in operation since 1970.

Recognizing the untapped potential of Southeast Asia’s startup ecosystem, I branched into venture capital, launching Indogen Capital in 2016 to invest in scalable, high-growth tech companies across the region.

TSE: What motivated you and what was the toughest challenge?

CF: The toughest challenge was meeting my family's expectations to only focus on the family business. However, seeing the potential in Southeast Asia, especially with SoftBank investing in e-commerce, I knew digitalization would thrive here and it will also expand my knowledge to bring back to the family business.

TSE: Please talk about the strengths of your company.

CF: Hendry (Co-Founder at Indogen Capital) and I come from traditional business backgrounds, giving us a strong network with large corporations and conglomerates in Indonesia. These are relationships we've built over ten to fifteen years. When we connect startups with these companies, we ensure that the partnership benefits both sides. If it only benefits one side, we hesitate to make the introduction. Startups often seek connections without understanding the other party's needs, which can be problematic. We are careful not to strain our relationships by forcing unnecessary connections.

Our second strength is understanding both traditional businesses and startups. We know how to explain the benefits of these connections to all stakeholders involved, including co-investors. We take our time to ensure everyone is on the same page, which helps build strong relationships.

Third, we have a proven track record of successful deals because we don't force them. Many of our portfolio companies have landed big contracts through our introductions.
Lastly, we've supported startups in achieving significant exits. For example, VENTENY, which started in the Philippines, expanded to Indonesia and eventually listed on the Indonesia Stock Exchange through our support. This made it the first company founded by a Japanese entrepreneur to list there.

All these strengths make us unique and set us apart from other VCs in the region.

TSE: How did you support your portfolio companies?

Insights on TSE Market

TSE: Why TSE intrigued you?

CF: Through our connections with JETRO, we advised ASEAN startups to consider listing on the TSE instead of the U.S. market. Japanese people understand ASEAN businesses well due to cultural similarities, creating a shared understanding between countries like the Philippines, Indonesia, Vietnam, Singapore, Malaysia, and Japan.
Having studied and worked in the U.S., I noticed a significant gap in understanding there. In contrast, the TSE offers a better market for ASEAN businesses due to this shared understanding. Japan has the capital and technology, while ASEAN has the growing young population and stable economic growth, making it a perfect match.
The TSE is one of the strongest and healthiest stock markets globally, with lower listing costs compared to NASDAQ or NYSE. Despite fears about the listing preparation period, the process is similar to other markets. Therefore, I believe the TSE is one of the best options for ASEAN companies to consider.

For startup IPOs, we view IPO process as the start of becoming a sustainable, professional company, not just an exit strategy. The TSE provides opportunities to find investors and partners for long-term business success.
To list on the TSE, companies must establish and operate a solid internal control system and undergo rigorous audit procedures, which reduce the risk of fraud in Southeast Asian companies. This makes it safer for Japanese companies to do business with them and benefits both Japanese companies and Southeast Asian startups aiming to build substantial businesses.
Indonesian companies suitable for the TSE typically need to be valued above $300 million to attract Japanese investors. Companies with strengths in logistics and e-commerce are very suitable for the Japanese market.

The main advantage of the TSE is the credibility it provides. Being listed on the TSE instantly gives companies credibility, facilitating quicker and more reliable business partnerships with major companies.

TSE: How can the TSE attract more Southeast Asian venture capitals and startups?

CF: It's crucial for TSE to educate Southeast Asian venture capitals and startups about the opportunities in TSE. A single successful example can significantly influence perceptions and drive interest.

TSE: How will you be involved in the Japanese market in the future?