JUNEASIA BUSINESS OUTLOOK8FRENCH COSMETIC BRAND L'OREAL TO INVEST IN SINGAPORE'S DSG CONSUMERCHINA TO LAUNCH SECOND PHASE OF FUNDING FOR SEMICONDUCTOR DEVELOPMENTL'Oréal, one of the world's largest cosmetics companies, has announced an undisclosed investment in consumer-focused venture capital firm DSG Consumer Partners.According to the company prospectus, the IPO proceeds will be used to repay PT Amman Mineral Nusa Tenggara's outstanding loans, as well as for capital expenditures such as funding smelter projects.L'Oréal stated that its investment in DSG's fourth fund would be strategic in nature, with a focus on beauty and personal care startups in India and Southeast Asia. The fourth fund from the venture capital firm will reportedly be around $125 million in size.DSG has invested in companies such as Chai Point, an Indian tea and cafe chain startup, Epigamia, a dairy firm, and Raw Pressery, a juice maker.BOLD, L'Oréal's corporate venture capital fund, made the investment. The fund previously invested in Fireside Ventures, an Indian consumer-focused investment fund that has made investments in Mamaearth, Boat, and Slurrp Farm, among others."The Southeast Asia and India region has many of the world's fastest growing, most populous, and young demographic markets," Vismay Sharma, president of L'oreal South Asia Pacific, Middle East, and North Africa, said. "Because the future of consumer brands will be shaped largely in these markets, it is critical to establish a strong connection to its dynamic ecosystem of disruptors and to invest in promising consumer brand startups."The development comes at a time when internet-first beauty and personal care brands like Mamaearth, Sugar, and Nykaa have experienced rapid growth in recent years. According to an ET report from August 16, 2022, the beauty and personal care category is driving ecommerce consumption in India, with 143% growth in volume year on year. China To Launch Second Phase Of Funding For Semiconductor DevelopmentAccording to Securities Times, Jin Shenghong, chairman of Yuecai Holdings, said at a semiconductor event in Guangdong on Tuesday that the fund will have a term of 17 years and will invest in auto chips and equipment for the semiconductor material.Since its inception in 2021, the fund's first phase has raised 31 billion yuan and invested in 102 companies. According to the report, 19 of these companies will seek IPOs in 2023 and 2024.China is attempting to develop self-reliance in key technologies such as semiconductors as it faces increasing pressure from the United States, which has cited national security as a reason for restricting access to key supply chains for such Chinese industries.Beijing has urged that cutting-edge technology research and development be accelerated. Another chip-focused fund is the China Integrated Circuit Industry Investment Fund, also known as the "Big Fund," which China launched in 2014. NEWSROOMJUNEASIA BUSINESS OUTLOOK8
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