The 200-seat co-working space is located in Blk 71 Launchpad at One-North

Innovation House Finland, which provides a soft-landing hub for Finnish startups in Asia and a gateway for Asian entrepreneurs in Finland, in partnership with Singapore-based VC firm Mercatus Capital, has opened a co-working space in the city-state.

Singapore’s is Innovation House’s third facility globally. The 200-seat co-working space is located in Blk 71 Launchpad @One-North. Membership options include the use of co-working facilities with services, such as inclusion in the local networks, social media marketing and being part of a collaborative community.

Members can also avail Eight Mercatus‘s (a startup platform launched recently by the VC firm) services such as searching for financial channels and partnerships, marketing and branding, recruitment, legal and patent affairs in the Asian market.

Innovation House was founded by Petra Erätuli-Kola and Katja Aalto. Its first facility opened in Otaniemi, Espoo in 2017, followed by another in Kallio, Helsinki in September 2018. The company hosts a community of more than 100 companies and over 600 members across all its facilities. Co-founder Erätuli-Kola said: “Innovation House’s long-term vision is to create a new culture of mutual collaboration and assistance between startups and corporations.”

Also Read: The co-working experience is not just about space but more about community

Launched in 2006, Mercatus Capital is an accelerator and incubator specialising in seed and startup investments, with the aim to enable and propel early-stage companies to grow beyond their local markets. It has funded 50 businesses in APAC.

Eight Mercatus is a startup platform that provides the key elements startups need for growth, including connectivity, funding, recruitment and crucial mentorship from well-established business leaders, and important entrepreneurship training. It also provides startups with access to an extensive network of connections and its business know-how.

Innovations House Singapore’s CEO Pete Karumo said: “The most pressing need for companies who come to Singapore are contacts and local business know-how. Innovation House, together with Eight Mercatus, is able to provide the services to help entrepreneurs get a strong start in Singapore because of Mercatus Capital’s local knowledge and strong network in Asia Pacific.”

“He further explained that because of the team’s strong entrepreneurial backgrounds, they are able to understand the issues their clients face and introduce innovative solutions to overcome them. The combination of their services, local expertise and investment backing makes their concept unique, distinguishing themselves from other established operators,” Karumo added.

Singapore has become increasingly successful at creating an environment conducive for startups to thrive, leading it to be well-known as a leading startup hub in not only Southeast Asia, but the world.

The post Innovation House Finland teams up with Mercatus Capital to open co-working space in Singapore appeared first on e27.

Saphron aims to make viable financial protection and assistance accessible by helping clients to develop technologies that transform consumer experiences

Saphron, a Philippines-based insurance technology company, has secured SGD1.35 million (US$1 million) in seed funding from Sage, a VC fund that targets fintech startups, and Talino Labs, a venture lab that supports companies engaged in digital transformation.

As per a press note, Saphron, which is incorporated in Singapore, aims to make viable financial protection and assistance accessible by helping clients to develop technologies that transform consumer experiences.

Talino Labs Venture Director Micaela Beltran, said: “There are still large parts of the Southeast Asian population that are unprepared financially — be it in terms of savings or insurance. Filling this ‘protection and financial gap’ will help the ASEAN achieve its goals for financial inclusion and mobility, as both finance and insurance play complementary roles in national and regional economies.”

Also Read: Vertex Ventures SE Asia, India led US$10M funding for insurtech startup Sunday

“There is a lot of growth potential in Southeast Asia, but for industries to leapfrog and become even more relevant to today’s consumers, it’s important to combine the latest technology with in-depth industry expertise. We are excited to have Saphron launch transformative platforms that solve real needs, by way of intelligent, cutting-edge tech in partnership with established companies in the region,” she added.

Insurance penetration in the ASEAN is just at 3.4 per cent of GDP versus the global average of 6.3 per cent. This gap means that millions of families still do not have any form of protection or financial assistance, leaving them vulnerable against life and health risks as well as natural disasters pervasive in different countries in the region.

According to one of the world’s leading reinsurers, Swiss Re, families in the ASEAN “bear 35 per cent to 75 per cent of their total medical expenses” with the exception of Brunei (6 per cent) and Thailand (12 per cent), versus families in Japan, the UK, or the US, which bear only 11 to 15 per cent of their total medical expenses.

“There is a serious need to make insurance radically accessible around the region by helping address the risks that set back millions of vulnerable families and drive them further into debt,” said Saphron Founder and CTO Francisco “Kiko” Reyes, Jr. “We built Saphron to help companies drive financial inclusion and change the current reality in the region, by using robust technology to bring to the market financial protection and assistance that’s accessible, ultra-convenient, easy to purchase, and simple to claim.”

According to Reyes, the company’s dream is to create a digital experience for the end users, from searching for a suitable cover, to convenience in payments, to simplicity in claims processing. The platform will be optimised with Artificial Intelligence and real-time data analytics for underwriting and customer service.

Also Read: Fintech startup AND Systems gets US$2.8M to grow in the Philippines, Myanmar

“It will have a multi-platform payment gateway that can accept payments from mobile payment platforms, which is now the payment method of choice in Indonesia, Malaysia, and Thailand. And we will build a blockchain-based know your consumer system with biometric identity verification for secure payments processing,” Reyes added.

The post Philippine insurtech startup Saphron raises US$1M from Sage Venture, Talino Labs appeared first on e27.

At the Echelon Asia Summit 2019, you just might find the right corporations to help your startup grow

When it comes to Asia’s startup ecosystem, VCs and CVCs are no longer the only key players helping the community grow. As we move forward, we see that corporates have an increasingly critical role to play in the growth of the ecosystem.

One of the key features of the Echelon Asia Summit 2019 that truly sets it apart is its business matching model. By purchasing a Premier ticket, you automatically qualify for the FORGE Corporate-Startup Business Matching.

In a nutshell, the FORGE Corporate-Startup Business Matching system allows emerging startups to partner with established institutions and large companies in order to achieve optimum growth.

On one end, large companies get to tap young, energetic startups who can help them innovate through digital adoption and harnessing the power of tech, while on the flip side, emerging startups can strike strategic partnership opportunities and access resources that can help them accelerate, and even scale.

This means more than a celebration of ideas, the Echelon Asia Summit 2019 is a platform that bridges startup founders with large companies—in an effort to forge partnerships that are beneficial to both parties.

As such, we are offering an exclusive deal for all interested startups out there: from 14 – 20 March, you can get your Premier ticket at 30% OFF. Simply share this article on Facebook, Twitter, or Linkedin with the hashtag #Echelon2019 and add a one-liner description of your company. Don’t forget to set your post to Public so we’ll be able to track your post.

The Echelon Asia Summit 2019 is happening on 23 – 24 May, at Hall 3A, Singapore Expo, Singapore. Don’t miss the chance to strike important partnerships and take your startup to greater heights!

The post Match made in (startup) heaven? We’ve got you covered appeared first on e27.

In yet another breaking story, Alibaba-backed Paytm Mall is said to be very close to scaling down its B2C consumer business in India

SoftBank, Toyota in talks to invest US$1B in Uber’s self-driving unit: sources [Reuters]

A group of investors led by SoftBank Group Corp and Toyota Motor Corp is in talks to invest $1 billion or more into Uber Technologies’s self-driving vehicle unit, which would value the unit at US$5 billion to US$10 billion, said two people familiar with the talks.

The investment would provide a cash injection for Uber’s self-driving program that is costing the money-losing startup hundreds of millions of dollars without generating revenue.

It could also help underscore Uber’s value as the ride-hailing firm prepares for a stock market debut in which its value could top US$100 billion.

Bruised by cashbacks, Alibaba-backed Paytm Mall takes a call to scale down; shifting focus on B2B [Entrackr]

It seems like cashbacks won’t be the flavour of 2019 after all. Paytm’s e-commerce play Paytm Mall powered massively by cashbacks so far, is very close to scaling down its B2C consumer business.

After a series of internal brainstorming meets and recent discussion between the board members, the company has taken a call to focus on B2B business, said three sources aware of the development.

“Paytm Mall has been failing to find volumes as well as unit economics in the consumer-facing e-commerce segment. Ultimately, its key backers, Alibaba and SoftBank have realised that cashback driven commerce is going nowhere. Now they find no merit in concentrating effort and capital on it,” said two sources on the condition of anonymity.

SC Malaysia reviews 60 proposals for US$245M pooled VC fund [DealStreetAsia]

The Securities Commission (SC) of Malaysia has reviewed about 60 proposals from local and foreign venture capital managers for the RM1 billion ($245 million) venture capital pooled fund that was allocated by state in the 2018 Budget.

“The GLICs (government-linked investment companies) are still reviewing [these proposals]. So, at this stage, we’re still not able to share how much allocation has been done,” said SC Malaysia deputy chief executive Zainal Izlan Zainal Abidin at the launch of SC’s annual report 2018 today at Kuala Lumpur.

Mswipe raises US$32M from existing investors [The Economic Times]

Mumbai-based mobile point-of-sales (PoS) company Mswipe has raised around INR 220 crore (US$32M) in a new round of funding from existing investors — US-based hedge fund Falcon Edge, Facebook co-founder Eduardo Saverin-promoted B Capital Asia, technology investment firm Epiq Capital and DSG Consumer Partners — according to filings with the Registrar of Companies.

This round came after the company’s Series-D round of funding in 2017, when Ratan Tata promoted UC-RNT infused around INR 200 crore into the company along with participation from its existing investors. Mswipe founder Manish Patel could not be reached for comment.

As per the filing, B Capital Asia and Epiq Capital pumped in around INR 70 crore while Falcon Edge put in nearly 57 crore and DSG Consumer Partners invested Rs 21 crore. The company is in the business of deploying PoS terminals at merchant outlets and processing card transactions for all major card schemes, including Visa, Mastercard, and RuPay.

Adtech startup Scibids opens APAC headquarters in Singapore [press release]

Adtech startup Scibids has opened its Asia Pacific headquarters in Singapore, its first international office. This follows the company’s raising of SGD 3.3 million Series A funding last September.

Rahul Vasudev, former Managing Director of MediaMath (Asia Pacific) and the APAC Head of Digital at MediaCom, will head Scibid’s APAC expansion.

Based in Paris, Scibids has developed an AI-based intelligence layer, which acts as a virtual trader on top of demand-side platforms (DSPs) such as Google’s DV360, The Trade Desk, MediaMath and AppNexus. It sorts through as many as 22 million variables such as geography, gender, site placements and third party data to automatically build thousands of highly granular buying strategies in the DSP.

With these epiphanies at hand, media agencies and marketers who have in-housed programmatic buying can improve their return on ad spend by targeting the right contexts more accurately and optimise towards their own custom business metrics.

The post Today’s top tech news, March 14: SoftBank, Toyota in talks to invest US$1B in Uber’s self-driving unit appeared first on e27.

The contributor programme is a core part of the e27 mission, and we wanted to highlight our most active users

One of the core parts of the e27 platform is our contributor programme. Over the years, we have published thought leadership pieces from government representatives, regional investors and, of course, entrepreneurs across Asia.

The team values content that is written with intellectual honesty and is meant to help educate the ecosystem. We also value opinions, learnings from your experience and insights into the Asian tech scene.

If this sounds like you, we would love to have you write fore e27! Feel free to submit an article here and we will have a look on our backend.

Now, for some motivation, let’s take a look at our 12 most well-read contributors from the first 10 weeks of 2019!

The dazzling dozen

Aytekin Tank

Aytekin Tank holds the top spot as the most well-read contributor on e27. He has published three articles that are among the top-5 most read stories this year. They are:

• What I learned about procrastination while scaling my startup to 4.2M users
• Why the world needs deep generalists, not specialists
• How Google is slowing innovation

Tank has contributed regularly in 2019, seeing 8 articles published so far this year.

Bhupendra Sharma

A long time contributor to e27, Bhupendra Sharma recently wrote an article about self-driving vehicles and whether or not they will replace the global transportation system.

Sharma wrote his first article for e27 all the back in March of 2017.

Bjorn Lee

As the Founder and CEO of MindFi, is an expert on all things mindfulness. His app helps busy professionals find the time to take a moment and reflect on the world around me.

Lee Bjorn Lee“>wrote an article about balancing work-life balance for startup Founders that has been quite well read.

Kenny Au

Also a regular contributor, Kenny Au contributes articles about blockchain. The article that landed Au on this list is an essay arguing why the industry can be hopeful in 2019, despite the terrible year in 2018.

Au has been writing about the blockchain for e27 since February 2018.

Hari

Hari is the CEO of soCash.sg, a company that allows people to withdraw cash from shops in an emergency. As a Founder, he broke down the important steps for getting your first 1,000 loyal users. This can be the hardest part for any startup and its a common question asked by young founders.

Akarsh Dhaiya

Every startup wants to grab the attention of investors but often they don’t really know how to go about doing it.

Some people use the spray-and-pray approach, others hope to build more meaningful relationships. Akarsh Dhaiya gives some less conventional tips (you’ll have to read the article) and based on our traffic numbers, it seems like people found them useful.

Jeremy Chew

iPrice Group is fairly consistent about producing informative analysis about Asia’s e-commerce industry. The company breaks down public data to paint a nice picture of the macro-ecosystem in certain markets. In this article, Jeremy Chew breaks down the situation in Malaysia, and whether or not Shopee has overtaken Lazada.

Jackie Tan Yen

Ah Telegram, everyone’s white whale that nobody has fully figured out. Its design has resulted in a product that is fantastic for group chats and community building. Unfortunately, it can also be hijacked by a few bad actors who dissuade others from participating.

Jackie Tan Yen, the Co-founder of fundMyLife, wrote an excellent piece about how he was able to pinpoint the accounts that had hijacked the Telegram channel.

Christopher Quek

There is a theme of our most read authors — they tend to have had multiple article published over a decent period of time. Christopher Quek is no exception. The Managing Director of Trive has been writing for e27 since April, 2018 and does a fantastic job of diving into the details of startup life.

In 2019, an article breaking down the deep-tech ambitions of startups in Singapore was well-read by the e27 community.

Amal Agung Cahyadi

Most articles on e27 are about people giving up their traditional jobs to pursue a life in startups. However, Amal Agung Cahyadi writes a candid piece about his journey from the tech world to wood working. Along the way, he discovered 11 life lessons about finding passion, understanding the basics and the complexity of simplicity.

It is a nice reminder about finding joy in work.

Khrisha Shah

The Co-founder of Dysco, Khrisha Shah wrote about the big challenge facing entrepreneurs across the world: Finding happiness in a tough industry. A lot of the advice boils down to be humble, and knowing what you don’t know, but when broken down into more micro-focusses it helps provide focus.

One good little tidbit? Worrying about copycats is a waste of time.

Julian Lim

AI is a major topic in tech for two reasons. First, it seems like an inevitable part of our future, and thus is important for people to understand. Second, there are legitimate concerns about the impact it will have on society. In his article, Julian Lim broke down how AI is becoming more humanised, and how we should move forward.

—

The post Introducing our 12 most-read contributors so far in 2019 appeared first on e27.

CXA Group uses predictive data to help corporates improve their health and wellness offerings for employees

CXA Group, a Singaporean healthtech company, announced today it has raised US$25 million from a host of new strategic investors.

The money will be used to fuel expansion across APAC.

The strategic investors were HSBC, Singtel Innov8, Telkom Indonesia MDI Ventures, Sumitomo Corporation Equity Asia, Muang Thai Fuchsia Ventures, Humanica and Heritas Venture Fund.

According to TechCrunch, there are other strategic investors that are not listed.

CXA is a healthcare company that uses big data to help companies provide personalised health and wellness services to their employees. It has also grown into one of Singapore’s startup success stories, having raised US$25 million from B Capital and EDBI back in February 2017.

It claims to have over 600 enterprise clients that allows them to serve over 400,000 employees in 20 countries.

The choice of targetting investors was not an accident. The hope is that this partnership can be leveraged to integrate CXA services into the B2B offerings for these companies.

“CXA is today the leading health ecosystem platform that enables individuals across Asia to make better choices for healthier living, starting from the workplace, thereby empowering a shift in spend from treatment to prevention. We have seen overwhelming interest from global strategic investors who are excited to work with us to advance our business and vision,” said CEO Rosaline Chow Koo in a statement.

Also Read: Introducing the e27 Telegram Group and Channel!

The company highlighted a statistic that chronic disease hits Asians 10 years earlier than people in the West. Because of that, a one-size-fits-all approach to corporate healthcare is inadequate.

Three separate quotes from Singtel Innov8, HSBC and Heritas all pointed to a platform that allows employers improve their internal healthcare policies as the reason for their investment.

The current round brings CXA’s total fundraising to US$58 million.

Also Read: ‘I feel naked without my phone’ should be a good thing

—

The post This Singapore healthtech company just raised US$25 million for APAC expansion appeared first on e27.

Edmicro creates a smart self-learning ecosystem that allows Vietnamese students to learn, practice and master the subjects being taught in classrooms

Edmicro, a Hanoi-based edtech startup that is building a smart self-learning ecosystem for Vietnamese students, has been selected for the March 2019 cohort of GMC Calibrator, a programme run by US-based impact investment firm Gray Matters Capital (GMC).

The selection of Edmicro also marks GMC’s foray into Southeast Asia. It will look at funding high-growth high-impact for-profit enterprises from Vietnam and other Southeast Asian countries such as Thailand, Malaysia and Indonesia for its gender lens portfolio – coLABS.

Edmicro will join eight other startups, including Dcoder, InnerHour, Lal10, Matrubharti, Quest Alliance and Skipy (all from India), along with two African startups — Sierra Leone based Mosabi and Kenya’s MumsVillage — for the programme.

Also Read: How edtech is changing the landscape of education in Asia

Founded by Que Nguyen, Dang Bao Linh and Linh Pham, Edmicro aims to create a smart self-learning ecosystem, called Onluyen.vn, for Vietnamese students that adapts to the needs of every learner and allows them to learn, practice and master the subjects being taught in their classrooms.

A cloud-computing platform, it was designed by learning scientists to measure and predict performance and progress in any digital learning product, and uses advanced machine-learning algorithms to analyse learner data and illuminate underlying patterns and relationships.

“75 per cent of Vietnamese students attend extra classes to understand lessons. They lack a good learning tool for complementing classroom learning through self-study. Teachers lack the teaching tools which enable them to record capabilities of each student, and support them in customising the teaching materials to personal student capabilities. Edmicro is filling in this gap,” said Nguyen, CEO and CTO, Edmicro.

“Our participation in the GMC Calibrator will help us in fine-tuning our personalised learning solutions and make our micro learning offerings more effective in improving learning outcomes by analysing learner data better,” he added.

Also Read: Vietnam stars in January as e27 data tracks US$1.5B in deals

“We wish to replicate the success of optimising the performance of India’s leading test-prep solutions such as MadGuy Labs and SarkariPariksha with Edmicro to make it the self-learning platform of choice for students through the GMC Calibrator intervention,” said Omkar Kulkarni, Programme Head, GMC Calibrator.

GMC Calibrator is a digital programme launched in April 2018 with an aim to make the mobile phone a device to promote ‘self learning to earning’ by improving user engagement, monetisation and optimisation of mobile learning platforms. This is done by understanding and implementing the principles of behavioural science and data-driven decision making.

Also Read: This startup could spoil the holiday you obtained by submitting fake medical certificate

“From an engagement point of view, we saw impact on the lines of 30 per cent increase in monthly retention and 20 per cent average increase in revenue across the first cohort we ran from June to December 2018. Three companies of the cohort raised funding during the six-month engagement while two made it to Google Launchpad and Reliance’s Jio GenNext Accelerator. We are confident of calibrating more such success stories with our March 2019 cohort,” Kulkarni noted.

Gray Matters Capital (GMC) is an Atlanta-based impact investor with a gender lens that is on a mission to support “an education leading to a more purposeful life for 100 million women by 2036.” In India, it is focused on making investments in for-profit enterprises providing access to affordable quality education and employability leading to a future job ready workforce with 21st century skills.

Globally, GMC makes sector agnostic investments in for-profit enterprises whose products or services benefit women and girls at scale through its gender lens portfolio coLABS.

The post Vietnam’s Edmicro selected for Gray Matters Capital’s edtech startup programme appeared first on e27.

WeWork lets you find your Southeast Asia innovation partner

It’s all about proximity.

Humans are social creatures; we tend to trust people we have close proximity with or those who move in the same social landscape as we do. It’s not being snobbish (though sometimes it is perceived to be) but merely logical — if we know what they’re up to on a daily basis, it’s easier for us to understand them and see how they fit in our lives.

The same can be said for businesses.

Companies tend to collaborate with other companies who move around the same community. How many times have you asked a startup how they ended up collaborating with another company and their answer was somehow related to being aware of the other’s existence because they are part of the same community?

But in today’s world of great connectivity, communities go beyond visual and geographical proximity. So, a more accurate phrase would be: it’s all about community.

Take WeWork, for example.

WeWork prides itself as a builder of community. Not just hundreds of communities in their spaces, but a single global community that acts as a platform for borderless collaboration.

Shared workspaces are a bed of collaboration opportunities

In a typical WeWork location, an enterprise will have over 160 potential companies to collaborate with. That means over 160 companies across different industries that could help an enterprise innovate its product or improve its service, or even create more efficient internal processes.

Hiring platform Wantedly is one such example. With the goal of helping corporates and startups with their hiring needs, Wantedly has had several collaborations simply by being a part of the WeWork community.

“Through the network of WeWork, we were connected with Zilingo,” said Gerald Koh Zong Wei, Business Development at Wantedly. “We were able to form a partnership that resulted in them being part of our recent successful Halloween Hiring Fest that saw over 400 attendees.”

The partnerships that Wantedly formed were not limited just to the companies they share workspace with. They were also invited to join events and work with companies in other WeWork locations.

That is the idea behind shared work spaces that WeWork is cultivating in to a culture; that collaboration is the key to better, quicker innovation, and that your next partner just might be sitting across from you in that communal space.

Communities beyond borders mean more collaboration opportunities

WeWork’s global network of over 400,000 members found in more than 425 locations globally is a massive community. What does this mean? Massive opportunities for collaboration.

Imagine that you’re a large enterprise in Singapore that wants to expand in an emerging market like the Philippines. Who best to help you possibly develop your business or product than someone in the Philippines, who understands the market and business landscape?

And it goes beyond that.

You don’t need to limit it to expansion opportunities. Corporates can develop new products, improve their services, and make their internal processes efficient by collaborating on innovation projects with startups from across the region.

Community is central to innovation. Corporates who want to confront the threat of becoming obsolete can open their innovation strategy to increased exchanges with the ecosystem, beginning with the WeWork network.

—-

WeWork offers more than just shared workspaces – they create environments that increase productivity, innovation, and collaboration. For enquiries on WeWork membership, visit their website or schedule a visit at a WeWork location near you.

Image credit: 123rf.com / 83598913 / Katarzyna Bialasiewicz

The post Proximity, community, and how they factor in on innovating today appeared first on e27.

Much like Uber in the US, Didi and Ola suddenly find themselves losing market share to other companies in their market

Since Lyft publicly released its much anticipated IPO filings on March 1, many pundits have weighed in on its growth rates, heavy losses and future prospects.

There are a number of insights hidden between the lines that we can find from Lyft’s filings.

Here, we dive more deeply beyond Lyft’s financials to delve into the true motivation behind Lyft’s IPO that potential investors should heed, and subsequently lessons for other ride-sharing companies like Uber, Didi Chuxing in China and Ola in India.

IPO to cash out, not to raise capital to compete

Typically, companies list their stocks publicly in order to raise more capital to finance growth.

This in turn creates opportunities for investors, as public companies can use their newly raised funds to execute on projects that can take them to the next level and accelerate their growth.

However, this does not seem to be the true motivation behind Lyft’s IPO. First, Lyft is losing almost a billion dollars every year. In comparison, their financing goal is a mere US$100 million, barely enough to make a difference in their growth plan.

Even by a more conservative measure of operating cash flow (which was about US$280 million in 2018), that extra $100mn of cash won’t be able to make that big of a difference.

What this implies is that the end-goal of this IPO is actually to open a venue for its investors to cash out on their investments.

Although most of Lyft’s significant investors will be “locked-up” and won’t be allowed to sell their shares for 180 days after Lyft’s listing, this is a rather standard practice for most IPOs. It also creates more impetus to pull forward their listing date before their rival Uber raises even more money to compete.

Signal to reach profitability by lowering subsidies?

If our reading of Lyft’s IPO is correct, another important implication is that Lyft might be willing to start lowering its driver and rider subsidies to reach profitability, especially if Uber does the same.

The competitive dynamic in the ride-sharing industry has been that of a typical prisoner’s dilemma. Ride-sharing companies’ primary mode of competition has been subsidizing drivers and riders.

Although they could make profit more easily if they both stopped this strategy, the prospect of losing market share if only one of them stops forces them into a bitter knife fight where both are constantly burning money to compete.

Check out this Decision Matrix for Uber vs Lyft Prisoner’s Dilemma:

In such a scenario, usually the bigger player with more money ends up winning as it is able to outlast its competition.

However, Lyft was able to grow rapidly on the back of Uber’s PR disasters in 2017, evidenced clearly by a massive acceleration in its growth rate in Q1-Q2 of 2017. By leveraging this opportunity, Lyft raised $600 million and grew its market share massively while Uber has been busy with its reorganization for the past year.

However, now that Lyft’s growth rate is slowing and Uber also has had more than a year of restructuring, Lyft’s small financing goal could be a signal to Uber that Lyft is willing to play ball.

Ahead of Uber’s imminent IPO, Lyft is raising a relatively small sum of capital, which means it is willing to be a consistent number two player in North America with substantially less resources. In such a situation, Lyft has an outsized incentive to follow Uber if Uber decides to decrease rider and driver subsidies to make a profit.

Cautionary tale for Didi Chuxing

While a path to profit could a be positive news for both Uber and Lyft, that Uber lost so much market share in the US since 2017 serves as a cautionary tale, especially for Didi Chuxing in China, which is currently going through a similar problem.

After all, just how much value did 15 per cent of market share in the US cost Uber?

After a series of murders of its passengers in 2018, Didi Chuxing has been facing an uphill battle in China in trying to recover consumer’s trust. At the same time, a competitor called DiDa Chuxing has been exploiting this opportunity to grow massively, and has been even outranking Didi in Apple App Store’s download rankings for the past several months.

Also Read: This Singapore healthtech company just raised US$25 million for APAC expansion

If Dida is able to continue this growth and even raise a massive amount of capital to continue doing so, Didi could face a similar consequence as Uber did in the US.

Ola in India: Still not out of the water

The ripple effect of Lyft’s IPO could reach India as well. Unlike China or Southeast Asia, India is the only market that Uber hasn’t yet exited despite having a very strong local rival.

As we’ve written previously, Uber is now the undisputed leader in most of its markets except India. If the competition in the US calms down and Uber finds itself in a much healthier financial situation after its IPO, it could be well positioned to grow more aggressively in India.

Also Read: Singapore-based fintech company Sygnum to build tokenised, smart financial infrastructure

Not only that, the latest news that Uber may sell its India UberEats business in exchange for a stake in Swiggy, a local food delivery company, rather than to Ola (or its investee Foodpanda) may suggest that Uber isn’t ready to quit on India just yet, though the possibility still exists.

The post Game Theory behind Lyft’s IPO: Implications for Uber, Didi and Ola appeared first on e27.

The Singapore-based company has just launched its hostels in Bali and Yangon

Tribe Theory, a hostel startup from Singapore, announced today that it has raised a total of S$1 million (US$739,165) seed funding from Superangel, Aurum Investments, and REAPRA. The company has just launched its physical hostels in Bali and Yangon.

Also Read: This Singapore healthtech company just raised US$25 million for APAC expansion

The company said that the fresh funding will be used to expand their footprints physically, especially in targeted places like Tallinn Estonia, Kuala Lumpur, and the Philippines, launch new business offerings and hires new senior-level team member.

As for the new business offerings, Tribe Theory said that it recently launched Tribe Theory Academy. The academy offers a learning and upskilling concept, which will run its Digital Marketing and Web Development programs at Tribe Theory’s Startup Village in Bali in upcoming May.

The 80 hours-programs will be run by experts within in-person classes alongside creative assignments. People who register will get accommodation in the Startup Village and three healthy meals a day.

“We believe that our concept appeals to the next generation of entrepreneurs and startups. Not just a place to stay, people also want a place where they can meet likeminded people from around the world who are on the same entrepreneurial journey. We provide a place where people can get that, and leave the place feeling empowered as part of our global community,” said Vikram Bharati, Founder of Tribe Theory.

Tribe Theory was founded last year with the focus to bring together the startup community by providing an affordable place to stay with the specific needs of traveling entrepreneurs in mind.

With the approach, Tribe Theory’s spaces combine the communal atmosphere of a hostel with the environment of a co-working space.

The company said that in its first year, it has welcomed over 4,000 entrepreneurs from all parts of the world to its locations in Singapore, Bali, Bangalore, Hong Kong, and Yangon.

Tribe Theory Academy, the mentioned offering of the company, will be rolled out at locations around the world, with the plans to offer these courses on the most sought-after new skills, tailored for entrepreneurs, as a means of networking while upskilling.

Also Read: Silicon Valley customer service company acquires Singaporean startup Collabspot

Tribe Theory aims to be in 25 countries across the globe within the next four year. The next move, it said, would be launching initiatives for talent management and exchange, content creation, professional services, and investments and funding.
–

Image Credit: Tribe Theory

The post Hostel startup Tribe Theory secures US$739,165 seed funding from Aurum Investments appeared first on e27.