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Kredivo raises US$90M to expand its lending biz in Indonesia; to roll out low-interest education, healthcare, Shariah loans

Singapore-headquartered fintech company FinAccel, which enables Indonesian consumers to buy online and pay later under the brand Kredivo, has closed its US$90 million Series C equity funding.

The round was jointly led by Asia Growth Fund (a joint venture between Mirae Asset Venture and Naver) and Square Peg Capital. Investors including Singtel Innov8, TMI (Telkomsel Indonesia), Cathay Innovation, Kejora Intervest, Mirae Asset Securities, Reinventure, DST Partners also joined.

This funding round brings the total capital raised by the company in 2019 alone to more than US$200 million, across both debt and equity, with the debt being provided by a consortium of lenders including banks and credit funds.

The startup plans to use the funds to double down on growth in the region, hire talent, and expand its range of financial services.

Also Read: Indonesian digital payment startup Kredivo secures financing from Telkomsel’s VC arm, MDI Ventures

Kredivo is a leading digital credit platform in Indonesia that gives customers instant credit financing for e-commerce purchases and personal loans at competitive interest rates. Kredivo’s merchant partners benefit from instant point-of-sale financing and high settlement rates, powered by Kredivo’s proprietary checkout that takes as little as zero clicks to settle a transaction.

Since inception just over three years ago, Kredivo has evaluated more than three million applications, disbursed nearly 30 million loans and created a large credit-based payment platform for e-commerce in Indonesia.

Kredivo aims to serve 10 million users in the next few years through Kredivo and other financial services. Near-term plans include the rollout of low-interest education, healthcare and Shariah loans and partnerships with banks for joint product development.

In July 2018, Kredivo raised a US$30 million Series B funding round led by Square Peg Capital, with participation from MDI Ventures and Atami Capital.

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Consumer insights provider Populix raises US$1M to expand its footprint beyond Indonesia

Indonesia-based consumer insights platform, Populix, just announced the closing of a US$1 million seed round of financing led by Intudo Ventures, with participation from Gobi Agung and Pegasus Tech Ventures.

With this round of financing, Populix aims to develop new product features to provide more dynamic and in-depth insights to clients, ramp up marketing efforts to build awareness and attract more respondents to use the platform, and bring on new employees to help the company scale.

Additionally, the company plans to expand its footprint beyond Indonesia to cover more country markets in the dynamic Southeast Asia region.

Founded in January 2018, Populix is an Indonesian consumer insights platform that helps businesses connect with readily available highly qualified respondents, providing an intimate window into the preferences of Indonesian consumers.

Through qualitative and quantitative studies, Populix is able to provide valuable insights that seek to help clients better understand Indonesian consumers and improve business decisions to understand consumer feedback in real-time. The company applies academic research methodology to market research methods, with the aim to ensure more robust and trustworthy results.

Also Read: 5 extra ways to visualise your content for better conversion

Populix’s mission is driven by how market research should be accessible. It’s done so by democratising research, simplifying the process, and making it more affordable for everyone.

Populix’s products range from intensive research studies to simple surveys and can be arranged either on a project or subscription basis. Populix works directly with clients to support research design, respondent recruitment, data analysis and targeted recommendations to ensure the effectiveness of custom-tailored consumer research to help clients make better business decisions.

In addition to research projects, Populix also generates revenue through selling in-house research and datasets to clients.

Populix offers respondents monetised incentives for contributing their time and insights to Populix’s clients.

The company plans to release a mobile version for respondents, which will allow them to use Populix on the go and during commutes.

Populix is led by co-founder and CEO Dr. Timothy Astandu, a research methodology expert, dedicated to implementing cutting-edge methodologies and technologies from academia into the commercial data industry. He is joined by co-founder and COO, Eileen Kamtawijoyo, an experienced marketing executive that has led new product launches for some of Indonesia’s biggest brands; and CTO Jonathan Benhi, an engineer with extensive experience in tech-driven market research in the US and Southeast Asia.

Also Read: Intudo Ventures closes US$50M “Indonesia-only” second fund

In addition to this round of financing, Populix was recently inducted into Gojek’s Xcelerate program, recognising COO Eileen Kamtawijoyo’s role as a female leader in Indonesia’s tech industry.

Photo by Georgia de Lotz on Unsplash

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Today’s top tech news: Sino Hua An acquires Touchpoint, Softbank troubles don’t seem to be receding

Sino Hua-an to acquire tech company Touchpoint Group- Press release

Hua An Group acquired a technology company TouchPoint Group at a signing ceremony today. With the acquisition, Hua An will own 100% equity of TP Group, comprising of TouchPoint International Sdn Bhd and Wavetree PLT. The acquisition is valued at a total investment of MYR72.0 million.

With this acquisition, Hua An now includes digital business transformation solutions as part of its portfolio. This is in line with Hua An’s vision to be a digital transformation enabler in Malaysia. “With the advancement in digital technology and the development of more sophisticated Artificial Intelligence (“AI”) that disrupt conventional businesses worldwide, this space is going to be one of the fastest-growing industries. With this in mind, I am proud to announce that Hua An will now have a technology arm, and is ready to expand our business into a new growth area. Aside from being a potentially profitable venture, this acquisition will bring a whole new set of expertise and knowledge that we are excited to expand into,” says Y.A.M. Tunku
Naquiyuddin Ibni Tuanku Ja’afar, the Executive Chairman of Huan An.

TP Group is a leader in the digital business transformation solution space in Malaysia, that offers a unique mobile community platform solution based on a digital ecosystem that allows users to do multiple things online and for local businesses to connect with their customers.

Emerging Payments Association Asia Signs MOU with ASEAN Financial Innovation Network- Press release

The Emerging Payments Association Asia (EPAA), the only payments association in Asia, has signed a Memorandum of Understanding (MOU) with the ASEAN Financial Innovation Network (AFIN) to promote the benefits of the APIX Platform to the payments community, with an aim to further develop the industry.

Signing the MOU with AFIN is part of EPAA’s effort to advocate open banking. EPAA’s Project Open Banking Asia initiative is a 51-country initiative investigating API adoption, regulatory guidelines, the Fintech ecosystem, and innovation. EPAA’s research will help formulate policies and standards for the Asian payments sector.

APIX, the flagship product of AFIN, is a global cloud-based platform that enables financial institutions and fintech’s to discover one another on a curated global marketplace, design experiments collaboratively in the sandbox and deploy innovative solutions rapidly at a lower cost. The collaboration with AFIN represents significant value for current and future EPAA members.

John Ryan, Director General of Policy and Projects at EPAA, said “With AFIN onboard, participants—banks, fintechs, paytechs—get access to a safe, cost-effective environment that fosters learning, innovation, and collaboration.”

“AFIN is pleased to welcome the EPAA into our ever-growing community of FinTechs and service providers. Our objective is to promote effective policies and standards in the financial services industry. The EPAA will help accelerate our value creation for the industry,” said Manish Diwaan, Managing Director of AFIN.

Founded in 2018, the Emerging Payments Association Asia (EPAA) is the only payments association in Asia and has in a short time since its inception made significant waves in the payments industry. It has hosted more than 30 successful events, connecting nearly 1,000 payments leaders, driving payments’ advocacy and policy development.

Ucommune unveils three new co-working spaces using innovative asset-light management model- Press release

Ucommune’s latest spaces provide a hub for entrepreneurs and thought leaders to innovate and collaborate.

“The ‘Asset light’ style of management is an innovative approach that allows us to rapidly expand our footprint in China,” said Dr. Daqing Mao, founder, and chairman of Ucommune. “With smart technology and standardized business operations, we can rapidly connect more members in communities across China, unleashing their potential and creating maximum value for society.”

Also read: gojek Xcelerate introduces 10 women-founded startups to its second batch

Using this model, owners can revitalize real estate assets by leveraging Ucommune’s brand and resources to build communities and stimulate local business development. To ensure product and operational quality, Ucommune has released a ‘Standardized Operations Process Manual’, an extensive guidebook covering design, construction, financial management and more.

Since introducing the model, Ucommune has completed over 30 projects in Beijing, Shijiazhuang, Shenzhen, Guangzhou, Xi’an, Urumqi, Hulunbuir and other cities. Members include SMEs and international enterprises, and span a range of industries from technology and AI to design and culture. Looking ahead, Ucommune will continue harnessing the asset-light system to expand to China’s major cities, overseas markets, and establish itself as a global pathfinder and partner to businesses in the coworking space.

Softbank to face valuation cut in OneConnect IPO- Bloomberg

Masayoshi Son, head of Japanese conglomerate Softbank, is facing another valuation cut in one of his investments, said a Bloomberg report.

Ping An Insurance’s OneConnect Financial Technology Co. launched its US$500 million US initial public offering on Tuesday at a much-reduced valuation compared with its last funding round in which SoftBank participated in 2018. This latest sale comes just a couple of months after the investment powerhouse saw the value of one of its most high-profile investments, WeWork, tumble from US$47 billion to less than $8 billion.

OneConnect, which provides cloud computing and other technology services to small- and medium-sized financial institutions, is marketing shares at a valuation of about $4.4 billion to $5.2 billion based on the deal size before an over-allotment option of up to 15%, according to Bloomberg calculations based on an overnight filing. That’s a steep drop from the $7.5 billion OneConnect was valued at when it raised $650 million from investors including Softbank and SBI Group.

Investors had pushed back against the company’s proposed valuation, Bloomberg News reported last week. OneConnect had been gauging whether fund managers would accept an enterprise value equivalent to ~8-10x estimated sales, people familiar with the matter said.

Indonesian consumer insights platform Populix bags US$1m seed funding- DealStreetAsia

Indonesian consumer insights platform Populix has closed a US$1-million seed funding round led by Intudo Ventures and followed by Gobi Agung and Pegasus Tech Ventures, according to a DealStreetAsia article.

Founded in January 2018, Populix, through qualitative and quantitative studies, provides insights that help clients better understand Indonesian consumers and improve business decisions. It leverages technology to accurately understand consumer feedback in real-time.

In addition to research projects, Populix also generates revenue through selling in-house research and datasets to clients. Populix, which was recently inducted into Gojek’s Xcelerate program, says it will use the proceeds from the seed round to develop new products, enhance marketing efforts and hire new staff.

Populix’s products range from intensive research studies to simple surveys and can be arranged either on a project or subscription basis. During the company’s first year of operations, Populix claims to have completed research on more than 70 brands across 27 industries including multinationals, SMEs, institutions, and individuals based in Europe and Asia-Pacific looking to gain insights on Indonesia’s dynamic consumer-driven economy and consumer preferences.

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Newly released data shows GSEA founders have a huge growth opportunity going forward

 

The latest Map of Greater Southeast Asia’s digital economies, released by AppWorks, a leading accelerator and venture capital firm in the region, is indicating to founders that the rise of mobile broadband in economies where GDP growth is accelerating past 6 per cent is setting the stage for amazing improvisation in tech use and commercial problem-solving. It may come as a surprise to some, but Taiwan can play a pivotal role in that innovation surge. 

As the supporter of the largest accelerator-born community in the region focused on tech founders, our team watches closely these developments. Our portfolio companies and the 1113 founders and 376 active startups of our Accelerator alumni network are living examples of the magnet that Taiwan has become for founders in this region. 

Starting small, in a huge region called GSEA

We refer to this region as Greater Southeast Asia (GSEA), positioning it as ASEAN + Taiwan, inclusive of such territories as Hong Kong and Macau, and East Timor. The nomenclature is driven by our observation of consumption habits and statistical data, as you can see in the map below, which hangs in our accelerator space. 

We include Taiwan in this grouping because its economic evolution has become something of a beacon for SEA founders who want to build beachheads around the region. Let’s start with a single statistic to understand why. 

The total e-commerce economy market size in Taiwan is USD$42 billion. This is almost 66 per cent of the size of the entire GSEA combined.

Founders who emerge in GSEA and come to Taiwan to grow stronger 

This unique attribute of Taiwan is a magnet. There is also a push factor in ASEAN nations. That mechanism is prompting SEA founders to seek out a tested, developed market for their ideas.

This movement is observable through growth statistics that suggest a plethora of pent up consumption demand driven by tech adoption and through example companies that have done it. Let’s start with the country data. 

Five countries in GSEA show growth in GDP per capita of over 6 per cent, as of last year. They are Cambodia at 6.83 per cent; Laos at 6.72 per cent; Vietnam at 6.5 per cent; the Philippines at 6.47 per cent; Myanmar at 6.45 per cent. Indonesia and East Timor show growth of 5.2 per cent and 5 per cent, respectively. 

In Vietnam, a country of 95 million people, many early-stage startups are rapidly developing — Sky Mavis; Axie Infinity; Triip.me (AW#18). Engineering talent that moved overseas and went to tough schools like Harvard have now come back and are starting new companies by the dozens. 

In Indonesia, we have seen the growth of five unicorns, including Gojek and Bukalapak. In other areas, it’s not so straightforward. 

Google recently released yearly results from a long-term study that looked at the potential for SEA’s growth. 

Today, seven urban centres drive over 50 per cent of the internet economy in the countries depicted in GSEA. The “beyond metros,” or rural areas of a few SEA countries, account for 85 per cent of the population, but only 48 per cent of the Internet economy, as you can see from the picture below. 

While use cases may exist for tech, and while consumer demand may be growing, it’s harder to really scale in some emerging markets without solid strategies and consistent talent.

Even though the creativity and innovation ideas are off the charts, many things like stagnant offline players, unavailability of engineering talent, government red tape and just pure infrastructure fragmentation stand in the way of “moving fast and breaking things,” so to speak. 

SEA founders are coming to Taiwan is because they see a microcosm of development opportunities in Taiwan that they can take back to the rest of Asia, after getting focused here.

Taiwan was a great gateway to Chinese-speaking countries [in SEA],” says Triip.me founder Hai Ho (AW#18). “There are [also] 200,000 and growing Vietnamese living in Taiwan. There are more daily direct flights between Taiwan and Vietnam, too. It is a good market.” 

AppWorks startups are gaining momentum in Taiwan

Over 376 AppWorks startups have continued to scale and expand by staging in Taiwan through our Accelerator or by becoming one of the AppWorks portfolio companies. Over 1,113 founders in our network have helped the country become a focal point for this region’s growth. 

These companies demonstrate just how nimbly a company locating in Taiwan can grow, figure out e-commerce strategies, and even acquire other companies and engineering teams while nurturing a huge market inside and outside of Taiwan. 

Shopback (AW#13), the e-rebates payment platform founded by Henry Chan and Joel Leong in Singapore, came to Taiwan to scale up their e-commerce knowledge and market deployment. 

Shopback has reported annualized sales figures of USD$500 million a year. It has operations in Singapore, Taiwan, Malaysia, Indonesia and the Philippines. 

Some other investments include 91APP (Taiwan’s Shopify); Carousell, which has localised to Taiwan by building an office here (it’s also localised in several other ASEAN markets). 

Taiwan is also the kind of place where you can build a company, or two, and IPO them, in a relatively quick time. For example, Jerry Kuo, one of the two siblings that started Kuobrothers, IPO’d in 2016. Jerry then IPO’d a second company that grew out of the original Kuobrothers Group, called MobiX, earlier this year. 

There’s also M17, started by Singaporean Joseph Phua. M17 started as a dating app company called Paktor and was based in Singapore. Joseph merged that company with a Taiwanese company called 17 Media to form what is fast becoming a massive social entertainment company that focuses on live-streaming. A recent acquisition of competitor MeMe Live has brought M17’s live stream market share to over 60 per cent in SEA’s developed markets. That wasn’t the only M17 procurement, though. 

M17 bought AppWorks Accelerator alum FBbuy, a company that developed an innovative way for people to buy items on Facebook. If someone simply typed in “+1,” in a comment, the scanning app would move the coveted item being discussed into a shopping cart. Joseph acquired that company and integrated it into a live-streaming commerce app called HandsUp

Early-stage is also heading to Taiwan

There are also a number of early-stage companies with inherent exposure to SEA who have heeded the call to come to Taiwan. 

At our upcoming Demo Day #19, over 65 per cent of the cohort will have originated or started their startup ideas in GSEA. Two female founders offer some examples.

Annie Zhang, from Hong Kong, will pitch Matters Lab as a decentralised platform for media and content sharing, which enables content providers to generate their own immutable content and get paid for it. They’ve generated about 25,000 customers in seven months. 

Telepod founder Jin-Ni Gan, a Malaysian living in Singapore, will also pitch. At a recent mentor day, she showed off her miniEV startup already operating in seven markets in the region. 

Her last slide was a photo of kids without shoes walking down a dirt road that cut through what looked like smoke from a jungle fire at a rubber plantation.

“My childhood was similar to this one,” she said, and then ended her pitch with the message that tech and creativity have a strong potential to make this life better for billions of people. 

That’s a story that is familiar to many founders here in Taiwan, and it’s one that will only scale rapidly in time. As the region grows, the probability that mission-driven founders who are intent on building fast-moving scalable startups will see that Taiwan is a launchpad for the regional market. 

Jin-Ni Gan, Founder of Telepod, at the AppWorks Accelerator Mentor Day, September 2019.

Another quick look at the GSEA market landscape should give founders, and investors, something to think about. 

Out of the five countries mentioned earlier that have GDP growth north of 6 per cent, three of them — Cambodia, Laos, and East Timor — have mobile internet penetration rates under 40 per cent. 

Myanmar, which has 21 million Internet users, only provides Internet to 36 per cent of its population. Nearly all of those users — 99.8 per cent — get their Internet through mobile phones.

In emerging market economies, a glut of software and tech availability is enabling founders to test use cases for new technology and consumer products.  Often, these use cases employ leapfrog innovations that are further ahead than the traditional infrastructure or tech use cases in developed markets. 

After spending six months in Taiwan, XFers (#18) teamed up with Zilliqa in Singapore to launch a stablecoin. The lack of avenues for remittances makes the mobile form factor an attractive device for gaining access to capital and tapping into new virtual banks and blockchain technologies. Going forward , data seems to indicate that this innovation in SE Asia driven by a connection to Taiwan will be more prevalent. And it will continue to shape fintech and more.

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Breaking the hiring chicken and egg for early stage founders

 

 

When startup founders are working hard in the early stages, they often spend most of their time in building their product, launching the brand and raising capital.

In this situation, recruiting is mostly an afterthought. However, in the bigger picture, when you’re building a startup which will go to win in the long-run, finding talent is just as important as business development or acquiring customers, if not more. 

Like the classic chicken-and-egg situation, savvy startup founders delay their hiring until they can afford it, yet, their business can’t afford to grow until their team has grown.

Business growth can be extremely difficult unless you have the right team. Being stuck in this dilemma can be very frustrating.

At some point, founders need to get good at hiring themselves. But for beginners, here are a few pieces of advice I can give to help the recruiting hurdle easier.

Just like dating, hiring is about searching for quality versus quantity. Whether you are looking for the ideal hire or the perfect match, the ability to attract people is key. Here is what you can do for your startup. 

Company introduction and job description = dating profile

Let’s start by comparing the creation of a job description to how you might create your own dating profile. When you first register on a dating app, you tend to put the most appealing photos on your profile, along with a personal description, interests, and what you look for in a match.

Your hiring profile should look much the same. You want to share quality information that will trigger people’s interests.

1. Seduce your audience

“I am Asian, 5’3, love drinking wine.” 

If this is my dating profile description, it is unlikely that anyone would swipe right. Unless I have a really hot profile photos.

The common mistake with many startups is that they use the lazy cookie-cutter three-line introductions.

For example: 

VIVACIOUS is an AI-based dating app for iOS and Android. It was founded by a group of National Taiwan University Engineering graduates in 2019.

VIVACIOUS is a top 30 dating app on Google Play and Apple App store, and now has over 30,000 downloads.

So the question is, how do you expect to stand out if your description looks like a “copy and paste”?

It needs to be unique. A good profile should take potential hires on a journey, sharing values, mission and vision (VMV), and also helping them understand who you are as a founder.

Instead of a three-line description, I may write a profile description (like the one below), showing how the company is unique: 

We are a group of National Taiwan University graduate engineers who saw a problem shared among our peers. Many people struggle to find a date due to the lack of opportunities in their busy schedules. Using AI, we have created a unique dating platform experience called VIVACIOUS to help bring people together on an intimate level and bridge that missing happiness. Just a few clicks away, you can begin an adventure to find your significant other.

As a Master of Human Resources, you will be leading our engineering and marketing team on a journey that will help many lonely hearts find the love they deserve.

For big corporations like Apple, Google, or Microsoft, their reputation needs no introduction. However, startups are much different, as most are relatively unknown. Your profile is an opportunity for you to attract potential hires, just like you would when using a dating app. 

Knowing your position, market value and how to write a job description (JD)

If Keanu Reeves is my type, my dating profile should not just say, “looking for Keanu Reeves look-alike”. This is because looks are not everything, as a matching personality is just as important.

Let’s say Keanu’s looks is equivalent to a candidate’s skill qualification, personality is the determinant if one can work well within the company culture. If the potential hire has the looks “skill” but not the personality, be aware that they may not be an ideal candidate.

Be sure to elaborate when listing out a Keanu Reeves description, by combining both looks and personality. This way candidates can better understand if they will potentially be a fit for the position on your team.

When writing the job description, I would suggest listing bullet points, from most important (must have) to least important (nice to have/ prefer). Remember to keep it short and concise, without cluttering the page. Listing out too many points can work negatively by limiting your funnel. Always be aware of who your audience is and the market value of a position.

If the description is for a senior position, but the title and salary appear as a junior position, you are unlikely to attract the candidates you are after.  

For example, the Human Resource position for “Vivacious” may appear as: 

Vivacious is looking for an experienced HR Manager to join our growing team. The HR Manager will be heavily involved in operations execution and strategic planning.

This role will be responsible for the development of compensation & benefits, performance management, employee relations, talent development program, leave processing, training, and onboarding.

Requirements:

1.Ability in executing HR tasks with extreme efficiency and limited resources

2.Have experience designing, building and leading the implementation of strategic scalable HR initiatives

3.Adapts and thrives in a demanding, start-up, fast-paced environment

Good to have:

1. Minimum 5 years’ of HR experience

2.Experience with start-up companies is a plus

3.Payroll experience 

Know where your target audience (TA) spends time

If my interest is drinking wine and I am looking for someone who would enjoy drinking wine with me, then attending a wine tasting event to look for a potential match would probably be an ideal place to start. 

This is the same in hiring. When you are finding talent, you have to think about where your talent would spend their time.

Do they show up at certain events, work for certain companies, or have their own Facebook group… etc?

Start by looking in the right direction, and focus on those online and offline locations.  

Know the competitor

Know your competition. Gather as much information about your competitors, such as their job posting content, company performance, company culture, strengths and weaknesses.

This information will be helpful when determining the strategic positioning of your startup to potential hires.  

Have your pitch ready 

Hiring moments can sometimes appear at the most unexpected times. You should always be ready to pitch your startup, otherwise, an opportunity with a talented candidate could be missed.

Be confident when giving your pitch, keep it short, concise, and most importantly, be persuasive.

Referrals are key

We focused on the points above first because they need to be fully understood prior to the most important step of them all — asking for referrals. Referrals are critical relationship keys that unlock doors and allow you access to more potential new hires. 

Searching your existing circle of resources for suitable candidates should always be your first step. You can usually find what you are looking for when working through people you trust.

Often times, it is usually a faster and more cost-effective way to hire. Instead of relying only on job postings, career sites or recruiting services, focus on building a stronger network.

Conclusion

The hiring chicken-and-egg problem is frustrating but not impossible. It can take months to find the right candidate. So it is crucial that you have a plan and a strategy ready.

Start crafting your startup profile today, practice your pitch, and when the opportunity presents itself, you will be prepared to win the perfect candidates that will change the game for you.

Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Join our e27 Telegram group here, or our e27 contributor Facebook page here.

Image Credit:  Michel Boulé

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