Day: October 24, 2019

Now that the shock wave is over, it is time to start talking about what is next.

The Southeast Asian startup ecosystem started the week with a bang when gojek CEO and co-founder Nadiem Makarim showed up at Merdeka Palace on Monday and announced his resignation to join President Joko Widodo’s new cabinet.

Two days later, the entrepreneur’s new designation at the cabinet was revealed: He is to be the new Minister of Education and Culture.

The internet went crazy. On Twitter, there were at least 35,000 tweets with the keyword Mendikbud (“minister of education and culture”) by the time is feature was written. Discussions about Makarim’s new designation were also frequent in various Telegram groups.

Many of the discussions centred around whether Makarim is the right person for the job, considering his lack of background in education and culture. This discussion can go on for days, so here I would like to focus more on what his appointment meant for the startup ecosystem –in Indonesia and Southeast Asia.

What is the message that Makarim’s appointment is sending out to us, the startup ecosystem in Southeast Asia?

The message is that: We matter.

Also Read: [Updated] Breaking: Nadiem Makarim named Minister of Education and Culture of Indonesia

Startups used to be all about college dropouts tinkering in their’s parents garage, trying to come out with something groundbreaking. Five to ten years ago, if you tell your kaypoh aunties that you are a startup founder, at best they are going to arch their eyebrows before gossiping with fellow kaypoh aunties (“Kids these days …”). 

But as companies reached billions of dollars in valuation, as their names become a household brand, their founders may start to gain a voice beyond their community.

Once their achievements are acknowledged, the society will start looking up to these founders. They want to find out about their secret sauce: How they are doing this, how they are solving problems. Their insights and opinions will be heard once these founders reach a particular level in their career.

Even better: Everybody will expect the chef to cook his secret sauce for them. The big institution suddenly wants you to be part of the team so that you can help them improve things there.

It seems only fitting that next big move for a startup founder is to enter politics. In light of Makarim’s appointment, some had joked about becoming a minister as the next exit path for a founder. But there is some truth to the statement.

Startup founders entering politics is more than just a matter of a startup having a friend in high places. Though honestly, any startup can benefit from such a thing. Including gojek itself.

It is all about making a greater disruption, a more significant impact on society. No matter where you live, the public sector is always in need of disruption. And who is better to do that than startup founders? The very people with innovation in mind?

Also Read: Following Nadiem Makarim’s resignation, gojek names new leaders

Interestingly, Indonesia is not the only phenomenon where this has happened.

In the US, you may have been following the moves of Democrat presidential candidate Andrew Yang, who had a strong background in the startup community before his involvement in politics.

Much closer to home, we have also seen Pakornwut Udompipatskul, the former managing partner at StockRadars, who had won a local election in Thailand and is leaving the company to become an MP.

In Malaysia, three startup founders have also been appointed to the National Economic Action Council (NEAC). According to a Vulcan Post report, their presence in the council is to “provide insight on issues related to the cost of living, employment, poverty and homeownership.”

Of course, this does not mean that we want everybody to leave their company ASAP and start a campaign to become an MP. Really, the last thing we need is people who entered public service because it seems cool to do so.

But if you are a startup founder and public service is your calling, then remember that you have something unique to bring to the table. Beyond your understanding of how design sprint works or how to set up an OKR, you are coming with a mission: To never accept the status quo.

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Image Credit: Wahyu Putro A., Antara Foto

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Tax filing can be one of the most cumbersome activities for startups. That is why you hire a tax professional so he or she can handle all the tax-related tasks and you do not have to get your hands dirty.

Here are some pointers that will help you choose the right tax preparer for your business.

1. Expertise

As a startup owner, you often tend to take tax filing lightly and do not give much attention to hiring a tax professional. However, you should make sure to hire an experienced tax preparer. An experienced tax professional knows the ins and outs of the tax filing process and can get you the maximum tax relaxation.

It does not mean that the novice tax preparers are not capable of taking care of your taxes. However, if you are hiring a tax professional, why not hire an experienced one?

2. Qualification

When an individual holds the responsibility of filing your taxes, you are obligated to know his or her qualification. However, you should not be overwhelmed if the tax preparer holds a bunch of designations under his/ her name.

The tax professionals have different qualifications depending on the services they offer or the examinations they have passed. You should analysis the tax requirements of your startup and select the tax professional accordingly.

Also Read: Indonesias tax management startup OnlinePajak raises US$25M led by Warburg Pincus

Here are some professionals who offer tax-based services-

1. CPA – A Certified Public Accountant (CPA) are individuals that are responsible for managing the finances of customers, including transaction and taxes. A CPA can be specialized in taxes; however, it is not necessary.

2. Enrolled Agent (EA) – Startups can hire Enrolled Agents if they need to be represented in front of the IRS. An individual can become Enrolled Agent by passing an exam or by working in the IRS for a minimum of five years. IRS does not put any limitations on the practice right of EAs, which means that they can handle all tax matters.

3. Certified Financial Planner (CFP) – The CFPs offer financial planning to startups on insurance scenario, future investments, cost optimization, and long-term tax strategy. Hence, startups can hire a Certified Financial Planner if they are planning for the future. However, not all CFPs offer tax services. Therefore, you should ask the CFPs about their list of services before hiring one.

4. Accredited Tax Preparers (ATP) – The Accredited Tax Preparers (ATPs) and Accredited Tax Advisor (ATAs) is a credential provided by the Accreditation Council for Accountancy and Taxation (ACAT) to individuals that pass the respective exams. These credentials ensure that the individuals are well-versed to handle all your tax-related issues.

3. PTIN

A PTIN (Preparer Tax Identification Number) is a pin used by the IRS to identify the tax preparers. All enrolled agents, as well as the tax professionals that are involved in filing taxes, should get a PTIN as it is required to be filled in the tax forms. However, some tax forms do not require PTIN.

Hence, it is essential for every entrepreneur to check for the PTIN before hiring a tax preparer, so you do not have to suffer while filing taxes.

4. Type of tax

Hiring a tax preparer also depends on the type of tax you want to file for your startup. There are some tax preparers who are proficient in filing federal taxes but are not aware of the local taxes of your state and vice-versa.

Hence, you should hire a tax professional who can file both federal and state taxes, taking the burden of tax filing off your shoulders.

5. Fees

There is an ocean of tax professionals out there. However, like all other aspects of your business, you want someone who asks for a reasonable fee for filing taxes.

Also Read: How will Goods and Services Tax (GST) affect businesses in India?

The fee asked by different professionals can vary on many accounts. They can be anything from the number of forms filled to the size of your business. However, if they guarantee a refund larger than others, do not get lured into the offer. They might be using illegal methods to get you that refund.

6. Technology  

According to the IRS, in 2019 filing season, the total e-filing was estimated to be 127,939,000 of which 71,725,000 were filed by tax professionals. These large numbers indicate that a majority of them prefer to file their taxes online.

Hence, you should hire someone who is tech-savvy and prefers e-filing of taxes.

Moreover, the tax preparer should also make use of advanced solutions such as cloud-hosted tax software available in the market to reduce manual errors.

Tax filing should be hassle-free

Tax filing should be the least of concerns of any startup. They should be able to focus their time and energy on core processes for future growth. Hence, it is necessary to hire a tax professional that will take care of all tax issues, not just filing.

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Image Credit: Kelly Sikkema

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Zelia Leong left her full-time job at the luxury hospitality sector in 2015 and bought a one-way flight ticket to Scandinavia. The tour, however, was prolonged and she ended up travelling around Europe.

Following local recommendations, she went to places that she didn’t even know existed. She hopped on the cheapest bus or train to the next city or country, and along the way, made a few new friends.

“When I returned home, I realised that travel is all about having new experiences, understanding more about yourself and the world,” she tells e27 recounting her story. “It is also about the memories made along the way in the little moments.”

“I did not remember the landmarks I visited, the tourist spots I took photos of or the things I bought. Instead, all I cherished after the trip was the people I met and the meaningful connections I made. That’s what makes travel special and unique for a lifetime,” she adds.

This unique travel experience brought the best out of Leong and kindled her entrepreneurial spirit.

And Anywhr took birth.

Based in Singapore, Anywhr is a bespoke travel curator, which plans your journeys to lesser-known places worldwide, personalised for you. “Anywhr was started to help people explore and experience more of the world, even in less common places they did not expect to visit,” according to Leong.

Also Read: 6 key things to consider while hiring an individual to handle tax for your startup

In other words, Anywhr takes the hassle out of planning and preparing for great trips. It uses information about your preferences and personality to curate a trip experience.

“Take a personality quiz, share your travel preferences with us, and we will plan and book a trip just for you. We specialise in lesser-known places away from mainstream tourist spots,” says Leong, who along with Felix Tan, started the company in 2016.

Leong adds that Anywhr not just plans and books flights and accommodation for the customer, but also takes care of logistics such as transfers and visas. The firm has 24-hour customer support on standby. Besides, it also provides travel insurance.

The company targets anyone who wants to go on a holiday but has no idea where to go or doesn’t want to plan. Customers include solo female travellers, groups of family and friends, and also romantic honeymoon couples.

“We help you go on a great holiday that’s planned according to your personal preferences. You just have to sit back and enjoy your trip,” Leong tells e27.

Sharing an experience with a customer, Leong says: “We planned a 10-day European honeymoon trip for a couple departing from Singapore, and they visited unique places like Bohemian-Switzerland and Krakow. We also recommended nice restaurants and sent them a packing-list to ensure they have the right outfits for those Instagram photos,” Leong shares.

Currently, she claims, Anywhr has customers from more than 25 cities worldwide, such as New York, San Francisco, London, Berlin, Amsterdam, Singapore, Sydney, and Hong Kong.

Partnerships

To facilitate the services, the startup has forged a partnership with a few major airlines and accommodation providers. Also, it has integrated with travel technology firm Amadeus, who works with airlines, hotels, and travel agencies world over.

“This helps us get special pricings from partners and in turn, give the value back to our travellers. Our airline partners work with us to promote new and less common destinations,” she elaborates.

Also Read: Leveraging technology to transform the way we feel, travel, and eat

Anywhr also charges a standard service and processing fee, such as for credit card payment processing, from customers.

The company wants to explore new markets across the world to cater to a larger audience base. “The launch of our new website in September this year saw a spike in bookings coming from cities such as San Francisco, New York, and London. We are exploring growth opportunities in those new markets,” she adds.

Along its journey, Anywhr also managed to rope in some investors to back its ambitious plans to go global. They include Hustle Fund, Found Ventures and angels like Royston Tay and Kwok Yang Bin (both co-founders of Zopim).

“The beauty of building a startup is in growing it well despite the odds, and having a great team behind it makes all the difference. And I’m happy that we have that and a great ecosystem of friends, investors, and community supporting and helping us through the journey,” she concludes.

(Disclaimer: e27‘s Co-founder and CEO Mohan Belani is an investor in Anywhr).

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Japan-based Digital Wallet Corporation acquires Speed Money Transfer Philippines, rebranding as Digital Wallet Philippines [DealStreetAsia]

Digital Wallet Corporation (DWC), a Japan-based fintech company, announces that it has acquired remittance and foreign exchange firm Speed Money Transfer Philippines (SMTP) for an undisclosed amount.

SMTP operates in the Philippines and Australia, and following the acquisition will be renamed as Digital Wallet Philippines. The report by DealStreetAsia said that the deal and the name change have been approved by the country’s central bank, the Bangko Sentral ng Pilipinas (BSP).

With the Philippines placing fourth as the highest remittance recipient globally in 2018 at US$34 billion (according to the World Bank), the acquisition is timely. Eiji Miyakawa, Founder and Chief Executive Officer of DWC said the company’s Philippines business aims to allow unbanked customers to benefit from financial services such as remittance, foreign exchange, and payments through their mobile devices.

“The Philippines acquisition is the first step in DWC’s global expansion strategy to deploy our mobile wallet services, Smiles Mobile Remittance (Smiles), to Asia and Europe,” Miyakawa added.

Doctor Anywhere joins forces with ViettelPay, providing online healthcare services in Vietnam [MobiHealthNews]

Singapore-headquartered telehealth startup Doctor Anywhere has joined forces with ViettelPay, a part of Vietnam’s mobile carrier Viettel, in signing a strategic cooperation agreement to bring a full suite of online healthcare services to ViettelPay’s registered users throughout Vietnam.

Following the agreement, ViettelPay’s customers will be allowed to connect to Doctor Anywhere’s virtual clinic and consult a locally registered doctor, as well as access a range of wellness services directly on the ViettelPay App, as reported by MobiHealthNews.

Also Read: Doctor Anywhere raises US$4.1M to offer patients easy access to healthcare providers through video consultations

Doctor Anywhere continues its expansion plan in Vietnam with its latest strategic cooperation with ViettelPay after the startup signed a Strategic Cooperation Agreement with Bao Minh Insurance, one of the largest insurance groups in Vietnam back in September.

Meet the AR startup that has attracted celebs of Katy Perry’s caliber [Forbes]

Sandbox VR, a free roam location-based entertainment venue, announces that it has received US$11 million round of financing from notable celebrities such as Katy Perry, led by a16z and Craft Ventures, founded in 2017 by David O. Sacks and Bill Lee and backers of Oculus, AirBnb, Lyft, Pinterest, and Slack.

Sandbox VR puts up to eight players wearing backpack PCs and VR headsets literally inside the game together. It was founded by game developer Steve Zhao.

Prior to this funding, Sandbox VR secured a whopping US$68 million from Andressen Horowitz, The celebrity presence was rounded out by actors Will Smith, Orlando Bloom, athletes Kevin Durant, and Honda Keisuke, and former superagent, and CAA co-founder, Michel Ovitz.

Also Read: RedDoorz makes US$70M first close of Series C round, to launch tech hub in Vietnam

As reported by Forbes, the company is currently in the process of an expansive rollout across the U.S. with a location recently opened in Los Angeles, and is coming soon to New York, Austin, San Diego, and Chicago with a total of 16 total locations planned by the end of 2019, and fifty by the end of 2020.

RedDoorz is looking at IPO by 2022, stating a logical way to get funded [Business World Online]

Hotel management and booking platform RedDoorz is reportedly contemplating an initial public offering (IPO) in the country by 2022, Business World Online has learned.

“I think, overall, the business goal of RedDoorz is to conduct an IPO. By 2022 or 2023, we should be on our way to creating our business which is publicly listed. That is the general vision,” said RedDoorz founder and chief executive officer Amit Saberwal.

He added that the company targets to earn US$500 million by 2020. By December, Saberwal said RedDoorz will be earning approximately $200 million.

RedDoorz announced last August that it closed US$70 million for the first part of its Series C funding, with participation from growth equity firm Asia Partners, Rakuten Capital, and Mirae Asset-Naver Asia Growth Fund, adding to its existing investors Qiming Venture Partners and International Finance Corporation.
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Japanese consumer finance company Credit Saison today announced the launch of its corporate venture capital (CVC) arm Saison Capital, that is set to invest up to US$55 million to early-stage startups in India and Southeast Asia.

The fund already made an investment in Indonesian P2P lending platform KoinWorks.

It expects to invest in six to eight companies every year with initial ticket sizes of up to US$1 million.

Prior to the launch of the CVC arm, Credit Saison had invested in leading names in Southeast Asian startup ecosystem such as Grab and Shopback.

It has also been a limited partner in various funds such as Cyberagent Ventures, East Ventures, Gree Ventures and Beenext.

Also Read: ShopBack raises US$25M funding round led by Japan’s Credit Saison

In a press statement, Credit Saison explained that Saison Capital will invest in founders building ecosystems that have the potential to distribute financial services to the underbanked, though they also have a mandate to invest in a wide variety of verticals outside fintech.

“The establishment of Saison Capital is Credit Saison’s latest commitment to its international expansion and the constant innovation and modernisation of its operations and product offering. We can be a long-term growth partner for some of the world’s most exciting startups, supporting their internationalisation and scaling up. We are taking these startups to the next level, from seed to Series A, B, and beyond,” said Kosuke Mori, Managing Partner at Saison Capital.

Saison Capital also stated that its portfolio companies will have access to Credit Saison’s network of experts and partners, which included a joint venture with HCM Development Bank in Vietnam and Grab.

“Our unique value proposition is our strong institutional knowledge of the financing space, the investment team’s tech backgrounds, and the speed of our conviction. We move quickly and have an independent decision making process from Credit Saison,” said Chris Sirisereepaph, Partner at Saison Capital.

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Image Credit: rupixen on Unsplash

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