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Today’s top tech news: Indonesian edutech startup Ruangguru reportedly raises US$100M from General Atlantic

Adamas Belva and Iman Usman, Co-Founders of Ruangguru

Ruangguru reportedly raises a US$100 million round led by General Atlantic [DealStreetAsia]

Indonesia-based edtech startup Ruangguru has reportedly raised a US$100 million funding in a round led by General Atlantic. The newest investment put the company’s valuation at US$500 million, DealStreetAsia reported.

Speaking to DailySocial, Co-Founder and CEO Ruangguru Belva Devara declined to comment further.

Ruangguru’s previous funding was a Series B funding in 2018, closed in 2019, led by UOB Venture. SoftBank was rumoured to be a potential backer but backing out.

In July 2019, the company marked its 5th year with its Vietnam’s expansion “Kien Guru”.

WeWork raises US$1.75 billion from Goldman Sachs [Tech In Asia]

US-based co-working space startup WeWork announced on Tuesday that it has received US$1.75 billion letters of credit from Goldman Sachs.

“We are pleased that WeWork and SoftBank Group Corp. have entered into a commitment letter with Goldman Sachs for a new US$1.75 billion senior secured letter of credit facility,” said WeWork. The company said that the facility is still being syndicated to be available in January.

Also Read: Indonesia healthtech Halodoc raises US$65M funding from UOB Venture

The new line of credit is part of SoftBank’s US$5 billion pledged debt financing for WeWork, which was announced in October after the US company withdrew its plans to go public.

The US$9.5 billion bailouts from SoftBank includes up to a US$3 billion tender offer and a US$1.5 billion payment from SoftBank due next year, in addition to the US$5 million debt financing.

WeWork will not be asked to post cash collateral for the newest letter of credit, which is expected to free up about US$800 million in restricted cash.

Goldman Sachs is the owner of 1.4 per cent stake in WeWork, but the company said it lost US$80 million in its stake in the company in the third quarter.

Following its acquisition of British music and pop-culture media NME, BandLab Technologies launches the platform in Australia [Press Release]

Following its acquisition in May, Singapore-based music startup BandLab Technologies launched music journalism brand NME in Australia. The launch closely follows the announcement of the new and extended NME Awards which return in 2020.

NME also announces the introduction of new Australian awards categories to highlight and recognise Australian artists on a global stage.

Established in 1952, NME has been a music and pop culture benchmark. Launched as the New Musical Express, the brand has evolved to become the platform of breaking what’s new and what’s next.

Also Read: Indonesian edutech startup Ruangguru receives grant from MIT SOLVE programme

Meng Ru Kuok, CEO of BandLab Technologies said, “We’re excited to be opening a new platform for Australian artists, both established and emerging, as well as a channel for brands, to engage with an audience of music lovers in Australia and globally. With the launch of our stand-alone brand extension in Australia, our team’s best writers will be shining a spotlight on the artists and stories coming out of one of the world’s most compelling music scenes.”

Image Credit: Ruangguru

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No more surprises: How UCARE help hospitals estimate patients’ bills more accurately

Tien Beng Phua, CEO of Parkway Pantai Limited (left), with Neal Liu, Founder and CTO of UCARE at the SG:D TechBlazer Awards 2019

Sometimes, the worst part about being ill is not the illness itself.

It is being discharged from a hospital with a medical bill filled with unexpected charges here and there. Even with the existence of insurance, these surprises might provide an extra burden for patients, making their recovery process harder.

To solve this problem, Singapore-based artificial intelligence (AI) startup UCARE develops a platform that they named the AI-Powered Pre-Admission Cost of Hospitalisation Estimation (APACHEÔ) system.

Using AI and machine learning algorithms, APACHEÔ analyses various parameters specific to an individual patient to predict the patient’s bill size –from pre-admission until his eventual recovery.

The platform accounts for dynamically changing factors during the hospitalisation journey, such as disease aggravation, unexpected complications, or unplanned surgeries to generate personalised healthcare bills. That way, patients will be able to receive a more accurate prediction of how their bills will look like by the end of the treatment process, enabling them to make better preparation for their recovery.

Also Read: uCare raises Series A funding to bring its AI-powered predictive solutions into healthcare

UCARE says that its system has an 82 per cent accuracy rate on average.

Stealth mode

Founded in 2016, UCARE went through a period of being in stealth mode for two years, before resurfacing with an undisclosed Series A funding round in May 2018.

The funding round included big names such as global venture capital firm Walden International, local insurance company Great Eastern, philanthropist and investor Peter Lim as well as law firm WongPartnership’s startup initiative WPGrowth Ventures.

Prior to founding the startup, CTO and Founder Neal Liu had worked at various leading tech companies such as eBay, Yahoo, Microsoft and Google. Leaving Google in 2016 to start UCARE, Liu assembled a team of experienced data scientists and machine learning experts to build its proprietary real-time AI engine.

Liu holds an MBA from Wharton, University of Pennsylvania, and a BS in Electrical Engineering and Computer Science from MIT.

Meanwhile, UCARE CEO Christina Teo has 20 years of experience in the private equity field.

Also Read: Clik secures US$2M seed funding, soon to launch in Cambodia

Prior to serving as the CEO of uCare in 2016, she was the Director of Mint Media, Managing Director at L Capital Asia (LVMH), and held other senior investment positions at Affinity Equity Partners, Deutsche Bank’s Strategic Investments Group.

Teo holds an MBA from Harvard Business School and a BBA (Honours) from NUS Business School.

Hand-in-hand with partners

Earlier this month, UCARE announced a partnership with the private healthcare provider Parkway Pantai. Under the partnership, UCARE’s APACHEÔ system will enable four hospitals operated by the group to offer fixed prices for certain medical procedures.

Under Parkway Pantai’s Price Guarantee Programmes (PGP), patients will be guaranteed prices for six common medical procedures: Removal of piles, breast lumps, ovarian cysts, gallbladder, thyroid and tonsils. The scheme applies even when complications arise and require additional treatment for up to seven inpatient days.

“Core to our mission is the ability to help healthcare providers leverage AI to provide better patient experiences at every stage of the hospital journey,” says Liu in a press statement.

“Looking ahead, we will continue to roll out more AI systems and services to benefit patients globally,” he stresses.

Image Credit: UCARE

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Reaching out: These startups are educating Indonesia’s underprivileged

Ruangguru, Zenius and IniBudi are dealing with the country’s education challenges head-on and taking steps for a better future

Walk.to.school-FIN

Access to quality content is one of the biggest challenges in the Indonesian education sector. Whilst students from upper-middle-class families in Jakarta can afford private schools with excellent facilities and well-qualified teachers, their peers who go to underfunded public schools have to be content with outdated facilities and underpaid teachers.

Meanwhile, university entrances are getting more competitive each year. Going to cram school –known as bimbingan belajar or bimbel – has become the obvious next step. Studying in bimbels operated by a big franchise cost about IDR 10 million to IDR 30 million (US$708 to US$2,125) per year, a sum not afforded by the middle- and lower-middle classes.

So, how have startups answered this clarion call?

Zenius.net is one of the most notable names in providing study material via desktop and mobile devices. Bringing the bimbel experience online, Zenius has free and paid membership for students who wish to study without having to sit in a classroom. It offers free material in the form of PDF files containing a compilation of problem sets, whilst the paid materials are videos explaining basic concepts.

When it comes to teaching methods, Zenius stresses the importance of understanding, with an aim to provide a ‘great learning experience’ for students.

“Every child is born with the intrinsic motivation to learn,” says Wisnu OPS, CEO of Zenius.

“But this motivation is somehow lost in our current education system … Taught by teachers with no better understanding of the concept than them. We want to bring it back by encouraging fun learning, and to make sure that they really understand the concept, not just memorise things,” he adds.

Similarly, IniBudi.org (“This is Budi”) also provides online content that students can access for free. Named after a popular character that seems to appear in every textbook, the website has its own team that produces videos explaining concepts as taught in schools, but in a fun and engaging way.

Apart from content based on the national curriculum, IniBudi also creates videos of professionals talking about their jobs. “If you visit schools across the country, and you ask students what they want to be when they grow up … The answers are most likely ‘a policeman’ and ‘a doctor’. Not that it is bad. But we want to show them that there are many more options out there,” says Wilita Putrinda, Managing Director of IniBudi.

Putrinda also explains how the startup complements its digital activities with offline engagement by talking to teachers and parents about educational issues, and most importantly, how to use the products.

“In the future, we would also like to branch out to mobile apps and paid content,” Putrinda adds.

Meanwhile, Ruangguru.com (‘Teacher’s room’) takes on a different angle in helping students achieve desired results. Started in 2014 as an online marketplace for private tutors in various school subjects, the company now brands itself as an end-to-end solution provider for educational needs.

“We are about to launch an online test platform for students undertaking final examination and public university entrance tests. It has always been a challenge to find a comprehensive collection of past exam question lists [for students to practice with]. We are planning to distribute it for free first, in order to make it accessible to everyone,” says Ikhsan Rahardian, Business Associate of Ruangguru.

Also Read: “If you can make it in Indonesia, you can make it anywhere in Southeast Asia”

It takes a village

The 2010 census revealed that 50.21 per cent of Indonesians live in rural areas. As remnants of the centralistic New Order regime, there is a wide disparity of development between Jakarta as the centre of all economic activities and many other places across the archipelago.

To be able to reach out to students in rural areas is certainly one of the challenges startups have. IniBudi answered it by creating ‘Dukung Belajar’, a programme where it distributed flash disks containing study material to students in the Western Southeast Maluku regency.

The flash disks were gathered through crowdsourcing, whilst the distribution was conducted in partnership with Indonesia Mengajar, a non-profit movement that recruits, trains and assigns volunteers to work as school teachers in rural Indonesia.

“We have the content, in (the) form of videos … These videos cannot be played without (the) Internet and there is very limited Internet in the area. The government had this programme where they installed WiFi in schools, but the router only works for 30 minutes a day. Meanwhile, Indonesia Mengajar knows these areas well, and they know how to reach these students. It was a very great form of partnership,” Putrinda explains.

By utilising the Internet, Zenius too is able to reach out to students in rural areas. The CEO could not contain his excitement as he told this author about a photo tagged by one user on Twitter. It was of a young girl working on a laptop in what seemed to be a paddy field.

“Our survey showed that we are able to reach about 20-30 rural areas. Mobility definitely helps people to get Internet access, even with our current phone penetration number,” he says.

But how about those with no Internet access?

Putrinda painfully recalled the time when the team visited a village in Ujung Kulon, Banten province. After talking to a group of students about IniBudi, one student raised her hand only to tell her, “But the Internet cafe is too far away, ma’am!”

Lack of Internet access is not only a problem for those living in rural areas. In an interview with BBC Indonesia, Teguh Hartanto, Head of Poverty and Development Study, Institute for Economic and Society Study, Faculty of Economics, University of Indonesia, stated that migration has caused a shifting of lower income citizens from the rural to urban areas. This indicates that even in big cities such as Jakarta, there would be students who would be too poor to own even a feature phone.

Rahardian admitted that in answering this particular challenge, Ruangguru has to begin by taking small steps. By partnering with a government-run child sponsorship programme, the company gives a percentage of its revenue to help support education for needy students.

“We keep on thinking of new ways to contribute,” he promises.

This leads to a concern that startups can only contribute as far as the nation’s infrastructure can allow them. “In order to make the programme succeed, it has to be supported from the offline side. We cannot rely on the online side alone,” says Putrinda, stressing the importance of a 360 degree approach.

Also Read: Indonesia wants to accelerate its gaming industry

Does this mean that there is no happy ending for the story?

Apparently not.

In May 2015, Indonesia’s Minister of Communication and Information Technology, Rudiantara, announced that the government will continue the Universal Service Obligation (USO) programme after a brief hiatus. The programme, which consists of providing phone and Internet services to rural areas, is a means to narrow down development disparity between each region in the country.

“By far there are at least 50 regencies that have not been reached by optical fibre network. Not only in the Eastern part of Indonesia, but also across the nation,” explains Rudiantara. “Using the budget for USO, we encourage operators to contribute in this programme,” he adds.

Good news also comes from the other side. “I have recently been informed by Google Indonesia that there is a 200 per cent increase in views for educational videos on YouTube. There is indeed a strong interest from the public to see more of this (initiative),” concludes Putrinda.

There is definitely hope for the future.

Image Credit: Flickr

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