SINGAPORE: The Board of Directors of Intraco Limited has entered into a limited partnership agreement in relation to the investment of RMB 5 million (approximately S$1 million) into the Chongqing Liangjiang Sino-Singapore Fintech RMB Equity Investment Fund to be made in two tranches over the first three years from the date of the execution of the limited partnership agreement.
The Fund, launched under the framework of “China-Singapore (Chongqing) Strategic Demonstration Initiative” aims to invest in fintech companies with strong potential across China and globally, and to promote the cooperation and development between China and the Singapore fintech industry.
The Fund will be managed by Sino-Singapore Connectivity Private Equity Fund Management Company Ltd (Sino Sin) and co-managed by Shanghai Lingfeng Pumu Management Consulting Company Ltd (Bitrock).
Sino-Sin is a licensed fund manager in China based in Chongqing with assets under management (AUM) of RMB 8.4 billion. Bitrock is sponsored by GLP, a leading global investment manager with AUM of USD 97 billion.
The RMB 369.3million (approximately SGD 75 million) Fund will mainly invest in series A to C companies within the fintech industry that are already revenue-generating and show a positive growth trajectory and a need for scale to achieve profitability.
The target companies could be operating within the e-commerce, payments, insurance, logistics, security brokerage and digital banking sectors. The Fund has an investment horizon of seven years, comprising three years of investing and four years of exit, either by way of trade sale or initial public offering.
This opportunity allows Intraco to invest into the high growth and fast growing fintech sector in China and globally with a relatively small capital outlay. Strategic benefits may also arise in terms of knowledge of trends and partnerships.