PORTFOLIO NEWS
With US inflation normalising to 3.2% in July, and headline interest rates expected to cap out a quarter point higher this year at 5.5%, brighter skies appear on the horizon in the United States. On several metrics, Southeast Asia also feels poised for rebound, around 12 months behind the US. In Q3 2023, Altara has been active investing and supporting our portfolio.
Staffinc, Indonesia's leading digital staffing platform raised a $9M Series B round with strong new and existing investor support. In particular, we welcome MyNavi to the investor base, whose well established HR and technology footprint in Japan is highly synergistic to what Staffinc is doing to transform the HR tech landscape in Southeast Asia. Altara first invested in Staffinc in Dec 2020 and we have supported the company over several subsequent financing rounds.
Clevai, a rapidly growing Vietnamese K-12 education technology platform also raised fresh funding to expand into new areas including STEM and English. We welcome M Venture Partners as new investors on the cap table and look forward to Clevai's continued technology leadership in the edtech sector.
Our portfolio companies Policy Street and Saturdays were both included in Forbes Asia to Watch 2023. PolicyStreet provides digital insurance solutions to both businesses and consumers and recently announced a major partnership with FoodPanda to provide improved financial security for delivery partners. Saturdays is Indonesia's largest independent eyewear brand with a national retail and online footprint.
OUTLOOK FOR SOUTHEAST ASIA
Positive Tailwinds for Venture Capital: US inflation is now at the lowest point since March 2021, just 3% in June 2023, 3.2% in July and almost back to normal. As a result, the US federal funds rate is expected to cap out a quarter point higher this year at 5.5%. This news has correlated with US venture stage valuations, which have now begun to recover after correcting downward by 70% in 2022.
Southeast Asia inflation is also under control which is a strong signal for brighter times ahead. Our overall view is that Southeast Asia VC will shift from a low volume market to a more balanced environment in 2024.
