JAKARTA, Indonesia--(BUSINESS WIRE)--PT INDOSTERLING SARANA INVESTA (the “Company) the largest shareholder of Indonesian listed, leading Technology company, PT IndoSterling Technomedia (ticker: TECH:IJ) (“IndoSterling”) enters a Put Option Agreement for IDR 600 billion rupiah ($42 million) with global alternative investment group, LDA Capital (LDA).
Established in Jakarta in 2011 IndoSterling, a technology company of IndoSterling Group, has developed a diversified portfolio of information technology and digital companies, serving a diverse array of B2B markets. Within the education industry and through its subsidiary, PT Technomedia Interkom Cemerlang (owns EDUFECTA Learning Management System), IndoSterling has implemented EDUFECTA across more than 50 tertiary institutions in Indonesia, making it one of the largest learning systems in Indonesia’s educational sector. Aside from having substantial leading traction in the eLearning space, IndoSterling is also a dominant player in Indonesia’s Property Tech and Digital Publishing sector.
Under the agreement, the Company will have the right, but not the obligation, to sell shares to LDA Capital via the Put Option Agreement over a period of 3 years. The transaction will further enhance IndoSterling’s access to capital allowing for additional accretive investments in the fast-growing Indonesian technology sector. Indonesia’s digital economy is expected to reach a total value of USD 70 billion in 2021, representing a 49% YoY growth. By 2025, the overall digital and internet economy in Indonesia will reach over USD 146 billion in value, growing at an outstanding 20% CAGR. IndoSterling is attractively positioned to benefit from this growth and is confident it will be Indonesia’s next leading tech Unicorn.
Billy Andrian, CEO of IndoSterling Technomedia, commented on the recent transaction: “We are pleased to have an alternative funding group like LDA Capital support our digital transformation into a leading Big Data Enabler in Indonesia. LDA’s flexible financial solution will aid us to become the leading Big Data Enabler as we intensify the depth of our products & services across the consumer, F&B, property, financial, capital market, digital publishing, and education sectors,” Andrian said.
“Indonesia’s technology market is at an inflection point and could grow to between $200 billion and $300 billion in size the coming years. We are excited about IndoSterling’s market positioning - with an established management team on the back of strong macro tailwinds, LDA expects to have an attractive, risk adjusted return on our investment over the next few years,” Warren Baker, Managing Partner of LDA, said.
LDA Capital is a prominent global alternative investment group with more than 32 portfolio companies across the globe. The founding team has committed over USD 10 billion in both equity and credit, executed over 250+ different transactions in over 43 countries around the world. LDA is sector agnostic but has a strong concentration in the technology, media, healthcare, consumer product services, and renewable energy. LDA seeks to back growth companies by supporting them with innovative, flexible capital solutions.
LDA’s has made a strong push for building a portfolio of fast-growing global technology companies with the possibilities of reaching unicorn status. One of LDA’s portfolio companies is Australia’s leading tech unicorn, Brainchip Holdings Ltd (BRN:AU), a smart chip processor of semiconductors utilizing artificial intelligence and edge computing capabilities. Since the announcement of the transaction with LDA, Brainchip’s market capitalization has increased from AUD 150m to over AUD 3 billion, representing an increase by over 20x in less than 24 months. Over this period LDA has deployed capital at rising share prices thereby allowing Brainchip to optimize and control the dilution from the investment. IndoSterling chose LDA as its investment partner given their recent success in the Asia Pacific technology sector.