Asia’s AI Boom Gets a New Engine: DBS & Granite Asia Launch $110M AI IPO Fund
In a bid to supercharge the region’s burgeoning artificial-intelligence ecosystem, DBS Group — Southeast Asia’s largest bank — has teamed up with multi-asset investor Granite Asia to launch a US $110 million AI-focused IPO fund tailored to Asian growth companies and DBS’s wealth clients. This fund, the first offering under a broader three-year fintech partnership, is designed to give investors early access to initial public offerings of high-growth AI-driven companies and help bridge Asia’s persistent funding gap — particularly for technology firms looking to scale and list publicly. (DBS Bank)
This move comes as global capital flows increasingly skew toward advanced markets like the U.S., leaving many Asian startups starved for late-stage financing. By pooling capital from high-net-worth investors and directing it into IPOs of select AI businesses, the initiative aims to catalyze the growth of Asia’s tech champions and unlock more dynamic capital market participation across the region. (TNGlobal)
A Strategic Partnership to Fuel AI Scale-ups
The collaboration formalized earlier this month marks one of the first large-scale partnerships in the region between a commercial bank and an asset management platform with a specific focus on AI. Over the next three years, the alliance will extend beyond this initial fund to build co-investment structures and potentially private capital products that allow technology companies to access non-dilutive funding — financing that doesn’t require giving up equity. (The Business Times)
Under the partnership:
- Granite Asia manages the new AI IPO fund, leveraging its experience guiding companies from private markets to public listings. (TNGlobal)
- DBS will offer end-to-end support to portfolio companies, including subscription financing, corporate loans, mergers & acquisitions advisory, and IPO preparation. (DBS Bank)
- The fund has drawn participation from wealth investors across Southeast Asia, South Asia, and Europe, reflecting global interest in the region’s fast-evolving AI sector. (DBS Bank)
DBS’s leadership views this as an extension of its heritage as a development bank — one that supports entrepreneurship and growing companies throughout their life cycles. Granite Asia brings deep networks and strong track records backing technology founders, aiming to nurture Asia-based firms toward global competitiveness. (The Asian Banker)
Why This Matters Now
Asia’s startup funding landscape has faced headwinds in recent years, particularly as venture capital hardened its risk tolerance and focused more on profitability than explosive growth. This has made it especially difficult for late-stage, capital-intensive companies — such as those developing AI technologies — to secure the funding needed to scale and go public. (The Business Times)
By carving out a dedicated IPO fund with institutional-like capabilities for wealth investors, the DBS-Granite Asia partnership can:
- Create a pathway to public markets for AI firms that might otherwise struggle to find growth capital. (TNGlobal)
- Expand the investor base in Asian IPOs beyond traditional institutional demand. (DBS Bank)
- Enhance DBS’s service suite to include more dynamic investment options for high-net-worth clients. (Reuters)
For Asia’s AI ecosystem, the fund represents not just capital, but validation of long-term potential and global investor confidence at a time when local markets are seeking fresh momentum. (Fortune)
Glossary
- AI-driven company: A business that uses artificial intelligence as a core component of its products, services, or operational strategy.
- IPO (Initial Public Offering): The process by which a private company offers shares to the public on a stock exchange for the first time.
- Wealth clients: High-net-worth individuals or private investors with significant assets to invest, often seeking unique opportunities.
- Non-dilutive capital: Funding that does not require the company to give up ownership shares, preserving existing equity stakes.
Source: https://www.techinasia.com/news/dbs-granite-asia-launch-110m-ai-ipo-fund-for-asian-firms (DBS Bank)
