Founded in 1974 as a Singapore-based holding company, Temasek Holdings Limited has transformed into a global investment leader across a range of sectors, including fintech, healthcare and commercial real estate.
In 2019, Temasek developed its T2030 strategy, a 10-year roadmap that will guide its strategic planning, capacity building and organisational development initiatives for the next decade.
As part of the T2030 strategy, the Ministry of Finance Temasek Holdings Our focus is on building a resilient portfolio of future-proof investments.
These investments are intended to capitalize on growth opportunities that have the potential to withstand unexpected shocks, perform through market cycles and deliver sustainable returns in excess of our risk-adjusted cost of capital over the long term.
Source: Temasek Review 2024: With tomorrow in mind
Temasek has announced its latest investment and portfolio review to mark its 50th anniversary. In the financial year ending March 31, 2024, the Singapore sovereign wealth fund invested S$26 billion and sold S$33 billion, for a net sale of S$7 billion.
The cautious investment stance is driven by expectations that the U.S. will fall into recession until the Federal Reserve reverses course from tight monetary policy in the fourth quarter of 2023, and a slower-than-expected pace of post-COVID recovery in China, where many of Temasek’s recent fintech investments are based.
In this article, we look at Temasek’s five notable fintech investments and highlight the fund’s strategic approach to shaping the future of finance in the region.
Adyen NV
Temasek Investment Adyen NVThe global payments company has signalled its commitment to digital transformation in the payments sector.
Temasek first invested in Adyen in 2014 and has since expanded its investment. Recognizing the company’s sound fundamentals And early success: As of March 2024, Temasek holds a 6% stake in Adyen.
Given Adyen’s influence, this funding is likely to accelerate the growth of both the fintech and impact ecosystems in the region. Like-minded collaboration Agreement between the Monetary Authority of Singapore and Temasek Trust.
Temasek’s backing for Adyen reflects its strategic focus on the payments sector as a key driver of digital transformation, and is in line with its broader efforts towards digitisation and innovation in the financial services industry not only in Singapore but globally.
Party All
Temasek Holdings Limited is one of the founding shareholders of Partior Pte. Ltd. and will continue to invest in blockchain-based cross-border payments fintech in 2024.
in fact, Party All was founded in 2021 with the cooperation of Temasek, DBS Bank and JP Morgan, with Standard Chartered joining as a founding shareholder in 2022.
July 2024, Partior raises $60 million The Series B funding round follows continued support from Temasek and other existing investors.
Partior’s platform facilitates real-time, cross-border, multi-currency clearing and settlement, helping to reduce the delays, costs and inefficiencies associated with traditional payment systems.
Partior’s network is interoperable We operate real-time local currency settlement systems and RTGS (real-time gross settlement) systems globally and provide advanced liquidity management solutions including intraday FX swaps and programmable corporate liquidity management.
PB Fintech
Temasek held a 5.42% stake by the end of 2023. PB Fintechthe parent company of PolicyBazaar and PaisaBazaar.
PolicyBazaar is one of India’s leading online insurance aggregators allowing users to compare and buy a range of insurance policies including health insurance, life insurance, car insurance etc. PolicyBazaar is credited with contributing significantly to increasing insurance penetration in the Indian subcontinent.
Meanwhile, PaisaBazaar is a credit comparison portal that helps users compare and apply for financial products like personal loans, credit cards, home loans, etc., helping to make financial inclusion available to the underserved and unbanked in India.
However, in February 2024, Temasek sells all of its 5.42% stake The company sold PB Fintech for around Rs 2,425 crore (approximately US$ 292 million). The sale was executed through a block sale on the stock exchanges, with a total of 2,44,30,015 shares being sold, which was acquired by US-based financial services company Capital Group.
Ant Group
Temasek with its partners Government fund GICparticipated in Ant Group’s large Series C funding round in 2018, contributing a total of US$14 billion. The investment by Temasek and its peers was aimed at supporting Ant Group’s global expansion and technological advancement, including in the fintech sector.
Temasek also Join the discussion The company commented on the Group’s share buyback plan, reflecting its ongoing interest in the strategic development of the company. Ant Group The company has significant fintech holdings, including the operation of Alipay, one of China’s largest mobile payment platforms with over 711 million monthly active users.
Alipay also provides services to facilitate cross-border retail payments via mobile devices. 30+ e-wallet platforms Banking apps in regions such as: Southeast Asia and Europe.
Sea Limited
Temasek has also made a significant investment in Sea Limited, a Singapore-based global consumer internet company. Temasek’s total investment in Sea Limited is Sea Limited Although details have not been made public, the Singapore wealth fund has been involved in significant fundraising activity, including a notable investment in Sea Limited’s Series C funding round.
Temasek has announced that it will invest in Sea Limited. Supporting the growth of your company It operates in the digital services and e-commerce sectors. Originally started as a digital entertainment company, Garena, Sea Limited now operates two main businesses: regional e-commerce giant Shopee, and its digital payments and financial services division, SeaMoney.
C-Money It offers mobile wallet services, payment processing and other financial services and is rapidly expanding across Southeast Asia.
Shopee’s integrated mobile wallet, Shop Payenables seamless transactions for millions of e-commerce platform users across the region and is widely accepted in countries such as Indonesia, Malaysia, Thailand and the Philippines.
Bonus List: FTX
And not that long ago, Temasek was based in the Bahamas. FTXwas once one of the world’s largest cryptocurrency exchanges and conducted two funding rounds between October 2021 and January 2022.
This included $210 million for a roughly 1% minority stake in FTX International and $65 million for a roughly 1.5% minority stake in FTX US. However, within months of the last capital injection, news broke that Alameda Research, an FTX-affiliated trading firm, held a large portion of its assets in FTX’s native token, FTT, raising concerns about the financial stability of both companies and beginning FTX’s downfall.
Customer withdrawals surged, leading to a liquidity crisis. FTX has filed for bankruptcy and its CEO, Sam Bankman Freed, has been indicted. He was arrested on multiple charges of fraud and money laundering. Temasek writes off entire investment.
Temasek’s five fintech investments, with a combined stake of more than 40%, demonstrate the fund’s strategic approach to shaping the future of finance in Asia. From global payment solutions to innovations in product comparison, Temasek is driving digital transformation across multiple segments of the rapidly evolving fintech sector.
Featured Image Credit: Free Pick
