MANILA, Philippines — The Gokongwei Group of Companies is joining the digital bandwagon with the establishment of a new company that would build its next generation digital business.
JG Digital Equity Ventures (JG DEV) will develop digital ventures, invest in emerging technologies, and harness promising talents across Southeast Asia, all with the goal of focusing on industries that intersect with JG Summit Holdings’ ecosystem.
JG Summit Holdings chief executive Lance Gokongwei said digital is a key pillar to JG’s future.
“There is no shortage of ideas in the digital space, so we must focus on a few big bets that generate the most value,” Gokongwei said.
JG DEV is pouring in $50 million to invest in Southeast Asia, particularly in early stage startups and also for successful portfolio companies raising funding at later stages.
JG DEV will invest in startups that will augment or disrupt its core businesses. These are companies operating within the new media, the consumer sector, retail and financial services verticals.
It will also focus on technology platforms that will power future industries, including digital health, data and logistics.
The JG Group has already made at least $40 million worth of investments in technology startups which includes SEA Limited, operator of wildly successful Garena and Shopee, and Oriente digital lender operating in the Philippines, Indonesia and Vietnam.
It aims to accelerate its initial success with the additional $50 million investment.
“JG is known to have very strong offline businesses. Our group is behind the pack in this digital journey, so our challenge is to leapfrog from where we are,” said JG DEV chief executive officer BJ Sebastian.
While investing in startups, JG DEV will also establish a digital ecosystem for the Gokongwei Group.
It will build digital businesses in-house and enter into joint ventures that play off its Philippine ecosystem, which includes Cebu Pacific, Robinsons Retail, URC and Robinsons Land.
It is putting together teams of product managers, software engineers, data specialists, investment professionals, and other digital talent who will be working in an environment that favors being scrappy, smart and imaginative.
JG DEV’s current portfolio includes mobile app Cashalo, which allows users to access online and offline financing using their smartphones.
The portfolio also includes Growsari, which links up over a million sari-sari stores directly with suppliers, and Snapcart, another app that provides analytics services to brands by processing offline data like grocery receipts.
While new to the game, JG DEV’s key advantages are its parent firm’s ecosystem and its team’s bias toward execution and operations.
JG Dev hopes to become a digital leader in the region, said Ian Estrada, COO of JG Dev.
“Given the unique combination of the JG’s extensive ecosystem, massive customer base and its forward-thinking leadership, I’m confident that JG DEV will emerge as a digital leader in Asia,” he said.