AMTD Digital, a digital finance arm of Hong Kong-based AMTD Group, announced today that it will acquire a controlling stake in Singapore-based insurtech startup PolicyPal.

In a press statement, the company stated the acquisition “deepens” its plan to build a Southeast Asian fintech platform headquartered in Singapore.

AMTD Digital did not share financial details. It is also pending the approval by the Monetary Authority of Singapore (MAS).

Founded by Val Yap, PolicyPal has raised fundings from 500 Startups, PayPal and angel investor Koh Boon Hwee.

It is also the first graduate of MAS’s fintech regulatory sandbox programme.

Also Read: PolicyPal is going to change their logo, thanks to a legal threat from a US insurance giant

Following the acquisition, there will be several roles that PolicyPal will take:

1. It will become a member company under AMTD Digital
2. With its digital insurance broker license granted by MAS, it will become AMTD Digital operating vehicle to develop and expand in the Southeast Asia insurtech sector
3. It will collaborate with AMTD Risk Solution to drive innovation and promote “an inclusive, green, technological, and professional online insurance service and risk management experience.”

As for AMTD Digital, in 2019, together with Chinese smartphone maker Xiaomi, it established Airstar Bank and had obtained one of the first eight virtual banking licenses issued by the Hong Kong Monetary Authority. The platform will launch its services to the general public “soon.”

AMTD is also teaming up with SP Group, Xiaomi, and Funding Societies to jointly apply for the Singapore digital wholesale banking license.

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Image Credit: AMTD Digital

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Southeast Asia (SEA), with over 650 million population and a thriving startup ecosystem, is one of the global growth engines. Investors from around the world have been making big bets on young ventures in the region for quite a few years.

While the region’s startup industry keeps on attracting massive funding from investors across the globe, a new trend has picked up over the past one-plus year — investments from South Korean have grown. This trend is more visible lately, with the likes of Yanolja, Woowa Brothers, and GEC-KIP Fund actively supporting tech startups in SEA, which comprises several countries and archipelagos.

What attracts Korean investors into SEA

“There are a few key reasons why there’s been more interest in SEA from Korean investors, and it’s a combination of what they can offer and what they hope to achieve investing in SEA,” says Daren Tan, Managing Partner of Golden Equator Ventures.

SEA offers enormous opportunities and higher investment returns, which makes it attractive to investors from North Asia, including South Korea, where growth and returns are more muted.

Charles Rim, General and Founding Partner at Seoul-based Access Ventures, agrees. A shrinking home market is a reason why Korean investors are looking to invest in Southeast Asia. “There is a slow-down of sorts in Korea. So investors are now looking to go global and Southeast Asia is a good option for its proximity to the home market,” he says.

Also Read: AMTD Digital acquires Singapore’s insurtech startup PolicyPal

The emergence of unicorns such as Grab and gojek and their massive fundraises also give confidence to Korean investors to turn their focus to SEA. Deal flow is no longer scarce, which is also a draw.

“Seasoned Korean investors – chaebols, corporations, established funds – can see the opportunity that SEA presents as a fertile ground for the convergence of technological expertise and abundant, affordable labour,” Tan points out.

“But beyond Korea being interested in SEA, many startups in the region also have the desire to grow much larger, and that’s where a North Asia/Korea play could come in,” says Tan, adding that Korean investors can also offer their strong networks back home to present an attractive expansion plan or exit strategy for many startups in SEA.

There is also another big factor. On a government level, the Moon Jae-in administration in South Korea had launched a New Southern Policy in 2017 –a commitment to increase trade with SEA and prosper together with the region. The policy pledges support for trade and investments, including the pursuit of foreign trade agreements (FTAs) and creating new tech business opportunities with ASEAN nations, so looking into SEA is aligned with the government policies.

One example of Korean investors’ entry into SEA is Korea Investment Partners (KIP) partnering with local institutions like Golden Equator Ventures (GEV) to leverage existing regional expertise in co-managing a fund targeted at Southeast Asia, called the GEC-KIP Technology and Innovation Fund (GEC-KIP Fund).

The fund most recently invested in cloud-kitchen startup Dahmakan’s US$18 million Series B round alongside Korea’s app development firm Woowa Brothers. This is yet another example of Korean players seeing synergies with startups in SEA. Other Korean corporations such as Naver, etc. have also entered the region via various vehicles.

Also Read: Morning News Roundup: Vietnam’s IT recruiting platform TopDev raises investment from Korean recruiting company SaraminHR

“We strongly believe that the cross-sharing of strategic expertise and technical knowledge, along with the influx of smart capital, will create exciting possibilities that will mutually benefit stakeholders, entrepreneurs and corporations, from both Southeast Asia and South Korea,” Tan remarks.

Eddie Lee, Senior Associate, who covers South Korea for White Star Capital, feels that this trend is very similar to how US-based VCs saw an opportunity to invest in China/India ten years ago when successful US models were being replicated there regionally.

“Most of web 2.0 consumer startup models are now built out, well funded, and are mature in Korea. So Korean VCs are looking for opportunities to continue the same strategy of building out proven models in emerging regions,” Lee shares.

Geographically and culturally, it was the easiest for Korean investors to enter SEA. In parallel, Korean VCs are actively building a working network in the region to assist mature Korean startups (mostly unicorns) to expand business there through partnerships or competitive benchmarking, Lee explains.

Another reason is that Korea’s Big Techs — such as Naver and Kakao — see an opportunity to become a globally dominant organisation through SEA. Similar to how FAANG has transatlantic dominance, Naver and Kakao have ambitions to build regional dominance in Asia, excluding China.

“As Korea has been the leading FDI in Indonesia and Vietnam, Koreans feel more familiar with the territory. The first wave was basic manufacturers such as textiles, and then tech hardware such as cellphones and semi-conductors, and now tech startups,” adds Rim of Access Ventures.

Also Read: The future of startup management lies in spontaneity

Attractive industries

According to Tan of Golden Equator, Korean VCs tend to be bullish on deeptech and the entertainment sector — two segments in which they are strong at home.

As for deeptech, South Korea had over a million patents in force in South Korea in 2018, and Chaebols such as Samsung and LG are among the top patent applicants. So, it makes sense for them to continue to invest in leading technologies.

“On the entertainment side, we invested last year in Gushcloud, alongside KB Investment and our co-manager Korea Investment Partners. Another recent example and the sizeable round is Mirae’s investment in digital entertainment company POPS,” Tan reveals.

When it comes to corporates, they, in the beginning, invested across sectors to get better visibility on the technologies that were growing in the region and the trending tech that could affect them.

So they typically started investing in funds to get better knowledge and then potentially leveraged on co-investment rights to invest when it made sense.

One example could be Hanwha, which entered the region a few years back by investing in a couple of the Southeast Asia fund managers but is now doing direct investments using its newly-launched fund.

“Later on, investing mostly in sectors directly synergistic with corporate’s core operations, so looking into companies they could potentially acquire or partner up with down the road, to see how they can potentially work with those companies or incorporate the business to truly realise the synergy. One example could be Yanolja’s further investment into Zen Rooms,” Tan says.

Of late, agritech, consumer internet and impact sectors have seen an uptick in terms of investment. The agritech investment is partly influenced by incentive schemes provided by the Singapore government agencies to help develop key sectors for the local economy.

Also Read: Capital markets platform iSTOX raises US$5M from Korea’s Hanhwa

As for consumer internet, the market has seen more companies launching social commerce platforms these days and are getting good traction, basing consumer choices on a circle of trust. Summer International is a good example.

“We think we’ll see more funds making a shift towards impact investments, implementation of proper ESG policy, as well as monitoring and doubling down on sectors such as financial inclusion, edutech and digital health,” Tan goes on.

Major deals by Korean investors

Dahmakan, Malaysian cloud kitchen company and a Y Combinator startup, recently closed a US$18 million Series B round, led by Rakuten Capital, Partech, Woowa Brothers, and Golden Equator Ventures.

On the M&A side, Gushcloud bought back shares from Yello Digital Marketing Global (YDMG) in 2018, putting its founders back in the driving seat.

Another deal is Yanolja’s, a leading travel group in South Korea, strategic investment in ZEN Rooms, a franchise of economy and mid-range hotels in Southeast Asia.

What is interesting though is that many of later-stage deals are strategic. ‘Strategic’ can defined as: 1) the investing companies are looking to acquire/partner with the investees in the future, 2) investors can open doors in their home markets (in this case Korea) for partnerships with other players, or 3) the investors have access to opportunities that could be potential exit routes for the investees.

“In SEA’s case, we haven’t seen many successful tech IPOs, barring Sea Group and Razer. Hence, it’s hard to engineer large exits in the billion-dollar range if the exit is via M&As,” Tan feels.

“Hence, there is a strong North Asia (Korea included) play here. It’s not just Korean investors wanting to invest in SEA for stronger returns than their domestic markets, but SEA companies do need access to other regions for growth, scale, partnerships, and potential exits.

Also Read: Today’s top tech news: South Korea’s ATU Partners launches e-sports-focussed growth fund

Hence, if the exit landscape is still maturing, it does make sense for investors to look at some of these deals more from a strategic angle rather than purely financial,” he continues.

As the success of M&A often relies for a large part on the ability to integrate to realise the synergy, it makes sense for strategics to first invest in those potential targets or partners, and overtime being able to assess the true value of buying versus partnering, alongside with their ability to work with the management team.

“Finally, for some strategics, the ability to potentially work with some of these companies can also be more valuable than their actual return on capital invested,” Tan says.

“We believe we will see more large financial investors being more active in this region as we can demonstrate a viable path for companies in this region to exit via IPOs in the US, or potentially Hong Kong. However, we will probably need to wait for another one to two years for the public markets to stabilise as we’re entering a recession,” Tan warns.

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Image Credit: 123rf Stock Photos

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Finance

Medtech startup Biolidics plans to raise US$2.2M to fuel expansion

Singapore-based medical tech firm Biolidics has shared its plans to raise UD$2.2 million from a share placement exercise for business expansion and to pursue new opportunities.

DealStreetAsia reports that the company plans to issue 17,858,000 new ordinary shares at an issue price of S$0.175 per share, which represents a discount of approximately 7.3 per cent to its volume-weighted average of S$0.188 per share, for all trades done on Catalist on March 13.

The company has an issued and paid-up share capital of 242.5 million shares. With the placement, it will increase the issued and paid-up share capital to 260.358 million shares.

Established in 2009, Biolidics provides cancer diagnostic solutions, focussing on the development of cell enrichment systems that can be used for cancer diagnosis, prognosis, treatment selection, and monitoring. The company has developed and commercialised ClearCell FX1 System, a fully automated medical device that relies on a novel patented technology to separate and enrich cancer cells from the blood.

Last month, Biolidics announced that it would develop its proprietary cancer diagnostics solutions in China.

Indonesia-based mPOS Cashlez to raise US$6M in IPO, to acquire IT firm

Cashlez Worldwide Indonesia (Cashlez), a mobile point-of-sale service provider in Indonesia, has said it plans to raise US$6.6 million in an initial public offering (IPO) to acquire an IT solution provider.

Backed by VC firm of Mandiri Sekuritas, Cashlez said it will sell 300 million shares equivalent to 20.29 per cent of its enlarged capital at 298 – 300 rupiah apiece, as reported by DealStreetAsia.

Also Read: Aiming to add 4 new startups, Mandiri Capital Indonesia targets insurtech, investment management sectors

The proceeds from the IPO will be used to buy 51 per cent stake in IT solution provider for smart card technology and RFID Softorb Technology Indonesia (STI). The rest will go to the company’s working capital, and local brokerage firm Sinarmas Sekuritas will be the underwriter for the IPO.

“We are a fintech, payment gateway startup that has secured a license from the Central Bank. We believe that this initial public offering will support our business development,” Cashlez CEO Teddy Setiawan said.

Last year, the firm that was founded in 2015 had raised an undisclosed amount in a Series A funding round led by Japanese diversified conglomerate Sumitomo Corporation with participation from state-owned CVC Mandiri Capital.

Currently, the startup is awaiting the approval of the Financial Services Authority (OJK) on April 7, while the public offering will be held on April 8.

Cashlez will list its shares on the Indonesia Stock Exchange (IDX) on April 20.

Business

PayPal’s study reveals financial health of Singaporeans will be crucial to the future of work

PayPal today released a report on “Financial Health for the Future of Work in Singapore”, which explores how the way people work in the future impacts the way the financial services industry needs to serve them. The report combines an analysis of a survey administered to 1,000 Singaporeans, extensive literature reviews, and more than 100 interviews with experts from all over the world, including several Singapore experts.

Singapore-specific research findings reveal the implications of financial health on Singaporeans’ preparedness for the future of work. Singaporeans are not only highly aware of the impending changes to their careers but are welcoming opportunities brought about by automation, Artificial Intelligence, Machine Learning, and other emerging technologies.

However, the Singaporean workforce still has a long way to go in preparing financially for automation and allied changes noted the report. Workers in jobs that are at high risk of automation exhibit more signs of financial distress and younger Singaporeans are also voicing their concerns regarding their long-term financial health and ability to retire in comfort.

Singaporean entrepreneurs, in general, remain financially healthier than their global counterparts, but more can be done to support the enterprises that are financially-distressed.

Also Read: [Update] PayPal: 121% surge in global mobile payments during Black Friday 2013

Overall, the report reinforces the need for financial services supporting Singaporeans through the changes in their future of work and calls for financial service providers to better serve the needs of a changing workforce and to build up the financial health of their customers.

People

BurdaPrincipal Investments appoints Albert Shyy as Managing Director for Asia

BurdaPrincipal Investments, the capital arm of media and tech company Hubert Burda Media, has promoted Albert Shyy to Managing Director (Asia) at BurdaPrincipal Investments (BPI). According to a statement, the appointment will take effect on April 1st, 2020.

In his new role, Shyy will focus on deepening BPI’s investment activities and guiding its growth in Asia. Shyy has been with BPI’s Singapore office since in 2017 and has led investments in Southeast Asia into companies such as fashion marketplace Zilingo, co-living operator Hmlet, and used car marketplace Carsome.

Prior to joining Hubert Burda Media, Shyy led investment activities for GREE Ventures (now Strive) in Southeast Asia and India, overseeing several portfolio companies including Indonesian payment firm Kudo and e-commerce company Berrybenka.

Indonesian C2C marketplace platform Jualo names Manisha Seewal CEO

Manisha Seewal, CMO of automotive marketplace Carro, has been appointed as CEO of its C2C marketplace platform Jualo that is based in Indonesia. In her additional role, Seewal will focus on business expansion and strengthening synergy with Carro’s automotive ecosystem with immediate priority to attract Indonesia’s top talent to its growing team.

Seewal said: “Both Jualo and Carro will leverage each other’s technologies to provide Indonesians with a transparent and hassle-free platform for e-commerce, especially when buying and selling vehicles.”

Also Read: Automotive marketplace Carro adds US$30M to Series B round; acquires Indonesia’s Jualo.com

In the CMO’s role, Manisha led and drove the development of Carro’s key branding and positioning strategies in Singapore, Thailand, Malaysia, and Indonesia. Prior to Carro, Manisha led marketing teams of global insurance corporations such as Tokio Marine, Aviva, Great Eastern Life, and HSBC Insurance.

Founded in 2013, Jualo.com is one of Indonesia’s most prominent full-stack hybrid C2C marketplaces and was acquired by Carro in 2019. The platform helps private and professional sellers trade new and used goods in over 300 categories including cars, motorcycles, property, fashion, electronics and job adverts.
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Picture Credit: BurdaPrincipal Investments

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As COVID-19 impacts the world economy, affecting daily life, and human health, these rapid changes have also created an environment of fear and anxiety. This mindset might potentially come from the information that we consume daily.

Coronavirus precaution tips, remedies, and essential advice has been circulating over various public forums and social media platforms ever since the breakout. Some are true, some are exaggerated, while some are actually harmful. Big tech companies such as Facebook and policymakers are finding ways to detect, monitor, and combat misinformation; however, it is difficult, if not impossible, to suppress the circulation of social media posts from individuals.

At a time like this, it is crucial to be mindful of sources we consume every day so that we do not become the carriers of misinformation.

e27 has reviewed three medtech startups who are positively combating distortion of health news as the virus continues to spread.

1. DoctorxDentist

Headquartered in Singapore, DoctorxDentist provides free-to-use medical information services for those who are curious about any significant illnesses published strictly by certified doctors.

Anyone is free to publish their medical questions; however, after which only doctors and specialists are allowed to reply to the enquiries.

However, in order to keep the process transparent, doctors are given ratings by patients who have “consulted” them only on the platform for which users need to register themselves through the portal.

2. Whitecoat

Whitecoat is a virtual healthcare platform that offers services such as online diagnosis, treatment, medical referrals, and offers delivery of medication anywhere in Singapore.

Also Read: Morning News Roundup: Chilibeli raises US$10M, gojek denies staff layoff and Grab merger reports

During a crucial time when social distancing is highly recommended, using a virtual platform to consult doctors is highly advisable.

To use the platform, one has to download the app, sign up, select symptoms and pick a doctor or have one assigned. After the consultation, medicine is directly delivered within 90 minutes of consultation.

3. Lifetrack Medical Systems

Lifetrack Medical Systems offers radiology solutions that allow customers to scale and integrate their radiology operations in a cost and time-efficient way.

Based in the Philippines, the company is led by a team of health and technology veterans from the US and the Philippines with the goal of making healthcare software human.

Even though the following company is not a blog, since there is a growing need to rapidly diagnose cases, the project is appealing to people to crowd-source a COVID-19 image repository. It will be “freely available for individuals, medical institutions, hospitals, health departments and health ministries” to share their COVID-19 chest CT images globally.

4. Halodoc

Indonesian online-based health app Halodoc provides health solutions to facilitate easy access to healthcare. It also works closely with Prodia (laboratory) making it easy for users to conduct health checks, both at home or in office.

Gojek and Halodoc together have launched free online medical consultation services for Indonesians experiencing potential COVID-19 symptoms.

Through the check (available on the Gojek app and links to Halodoc’s app), users can conduct a self-assessment if they are doubtful of their condition and share their travel histories. According to the answers, further diagnosis will be made, and a COVID-19 assessment at a government hospital might be facilitated.

” Those who complete the self-assessment and are categorized as low-risk will receive educational materials on preventative health measures and can access Halodoc’s ongoing telemedicine services to deal with other symptoms,” according to the company statement.

At a time like this, e27 thanks not only Southeast Asian startups but all other companies around the world who are helping people to get past through this uncertain time.

Image Credit: Pexels

 

 

 

 

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Global finance leaders have always regarded fintech as the digital force that can bring unprecedented changes to the industry. Goldman Sachs estimates the worldwide fintech pie to be worth US$4.7 trillion, and with more than 12,000 startups in different parts of the world, this number will keep increasing.

Fintech companies are gaining momentum because of the younger, affluent, and tech-savvy customers. Research by Capgemini found that 46 per cent of clients are using services from over three fintech providers, while 60 per cent financial institutions now view such companies as their potential partners.

Why is fintech thriving?

Because it facilitated the expansion of capital access to small business owners, women, minorities, and immigrants, who found fundraising to be nearly impossible before technology leveled the playing field. No segment of the customers is under-served, establishing a positive impact of fintech on the current startup scene, and fueling its growth.

Strengthening financial data security

Banks and financial organisations are facing enormous challenges when it comes to protecting sensitive data. Heavily regulated by data privacy requirements, the banks and financial institutions are under mounting pressure to be open to the consumers regarding policies and steps taken to protect from security breaches.

Organisations are investing highly in fintech because they want to eliminate their vulnerability to financial losses due to cyberattacks.

Also Read: Afternoon News Roundup: Quona Capital closes US$203M to focus on fintech companies in emerging markets

Apart from providing security to financial data, it instils convenient transactions, and this leads to flawless cash-flow and smooth operations in the financial system.

An organisation’s cybersecurity strategy must inculcate robust encryption and controlled security policies. Instead of waiting for a cyber-attack, institutions must utilise new technology tools and gain a deeper understanding of policy deployment.

Monitoring all the traffic and limiting potential threats is only possible through fintech.

Low cost of service

Fintech dramatically reduces servicing costs while providing better results. It automates all the operations or relies on human-in-the-loop computing systems to carry out functions smoothly. Fintech companies need not make substantial investments in archaic technologies such as call centres, to tend to the problems of the customers.

The company already has enough information about the customer that when they do need help or a problem arises, they are likely to know about it beforehand and have already started exercising the action plan to resolve it. Ironically, this leads to improved services, as well.

Even the new fintech entrants are adopting multi-channel approaches, and leverage the latest digital marketing tools, without paying the hefty regulation costs. As compared to banks, consumer-facing fintech companies are only seeing 1/100th of the acquisition costs and enjoy a low-friction landing.

Also Read: How is technology influencing Southeast Asia’s fintech industry in 2020

Blockchain penetration in various industries

World Economic Forum estimates that blockchain’s net worth was US$ 20 billion in 2015 and is expected to rise to 10 per cent of the world’s GDP by 2027. Almost 90 per cent of European and American banks are investing in this technology to ensure maximum security for their financial operations and transactions.

Cryptocurrencies occupy a large share in fintech market, with a lot of startups building their company around the most prominent blockchain-based currency, Bitcoin. However, the involvement of blockchain became strong because of technological advancements in the decentralised ledger.

Modern consumers look for uninterrupted control over their finances. A few years ago, a distributed system that cannot be mismatched, is not limited by the government, doesn’t charge any fee, and is controlled by the users themselves looked like a dream. Thanks to blockchain, all of this is possible now!

The app world

The biggest product of fintech is digital payments, comprising 25 per cent of the ecosystem. TechCrunch says that in 2020, 90 per cent of smartphone users will make a mobile payment. In fact, mobile payments, which is a subset of digital payments, are set to break the US$1 trillion record this year.

Despite the tremendous growth, there is still significant room for mobile payments to thrive. Given the high fee involved in transactions, most of the merchants and sellers in the US have to give up a part of their earnings. For example, a US$100 transaction will give US$97.30 to the merchant on average.

Starbucks has opted for a new approach to combat this high-fee policy. Their app allows the consumer to transfer money from their bank account or credit card to a mobile wallet, which can be used to pay for the coffee or food item.

Bringing down the volume of transactions, this eliminates the fee for the merchant.

Also Read: Big banks and fintech startups: Rivals or allies?

Increased regulations

Being among the most heavily regulated sectors in the world, governments are more concerned about regulations as fintech takes off. With the integration of technology in financial services, regulatory problems for many companies have multiplied, which is a reflection of the tech industry’s impatience to disrupt finance.

Usually, regulations can put a damper on growth for many sectors. They are indeed created to protect and control, which leads to slowing things down. Contrary to this, regulations have caused an immense acceleration in fintech, benefitting the incumbents, just like the 2018 tax laws benefited the real estate investors.

In an attempt to limit the amount of personal information available to the banks, the EU has passed the General Data Protection Regulation. Several other countries such as South Korea and Japan, where ICOs are popular, have taken the lead from this to protect the investors.

The bottom line

Over the last few years, fintech has evolved significantly yet, its penetration rates in various industries are significantly low. Despite the slow growth, 88 per cent of traditional financial organisations fear losing revenue to fintech companies in areas of personal loans, money transfers, and payments.

Given the current situation, 82 per cent of such organisations have already planned to collaborate with fintech companies in the next three to five years. Ernst & Young says that approximately 25 per cent of SMEs worldwide have adopted fintech services for financing, banking, and financial management.

Seeing the potential of fintech, it would be unwise to place your bets anywhere else. With a promising future and continuous innovation in the field, fintech has to be the right choice for you to invest and gain maximum in return.

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post. We are discussing inclusivity at work and women all of March. Share your thoughts, tips and best practices on how we can make the startup ecosystem more inclusive, gender and culture diverse.

Join our e27 Telegram group, or like the e27 Facebook page.

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The exit landscape in Southeast Asia has seen a huge rise in the recent past and if you consider the current trends, it will grow higher with every year. A report by Golden Ventures suggests a huge rise in the startup exits in the region with a resounding 700 plus startup exits expected for the forecast period of 2023-2025. 

Over the years there has been a number of tech startups encouraging the exit landscape scene in Southeast Asia. But, the recent outbreak of COVID-19 has changed the exit landscape with its restrictive access to business facilities and workforce. 

Amongst the odds of supply chain restrictions and low workforce efficiency, the services sector is the worst hit with a 28.51 per cent impact due to COVID-19 hit provinces in China. The question again arises, that will the strong exit landscape of Southeast Asia backed up by the tech-based service sector sustain the momentum in a pandemic Corona hit economy?

Let us first understand the impact of three pillars of startup exits in Southeast Asia.

Acquisitions

As far as mergers and acquisitions are concerned, for Southeast Asia, local M&A over the global startups has been a resounding trend.

But, the terms of mergers and offers for acquisitions can rapidly change with the recent downfall of the global market following the outbreak. 

With over 100,000 cases and 4,000 deaths, it has caused a panic situation, creating a huge downfall across global markets. M&A depends on largely market trends and a startup’s potential growth cap, which is constantly plunging due to uncertain supplies, restrictive demand, and limited workforce efficiency. 

Also Read: Coronavirus is driving the world into an economic slump. How to cope up?

Currently, most of the intermediate product supplies are dependent on the Chinese supply for Southeast markets. So, the impact on the SEA markets due, to the Covid-19 outbreak is certainly impacting major M&A decisions.

IPO

IPO or Initial Public Offering is a way of issuing stock offerings to the public of any private corporation. IPOs are a way in which private organisations transition to public organisations through investments.

Last year, Southeast Asian markets saw 89 IPOs raised the proceeds up to US$4.8 billion with a one per cent spike over 2018. This was extremely remarkable given the fact that global IPOs took a hit last year.

Supply cut downs of the intermediate products from China can make a huge impact on private organisations going public with IPOs as the trust among the public investors can be dwindling in the outbreak scenario.

Secondaries

Secondaries or secondary buyouts have been surging in the private equity industry over the years. In recent years there are several venture firms that are increasingly investing in the secondary stocks. But, COVID-19 breakout can impact these secondary buyouts on a larger scale.

Let’s discuss how startups can thrive in these hard times!

What is the government doing?

Southeast Asian governments are cutting interest rates on their capital landing to the startups and businesses, who are incurring losses due to ongoing COVID-19 outbreak.

Recently, Thailand’s government reduced its rate to one per cent because of its trade exposure to Chinese goods for auto manufacturing and Chinese tourism. Other Southeast Asian countries such as Malaysia, Singapore, and Indonesia are cutting back their rates to boost local manufacturing and reduce reliance on Chinese goods.

Domestic boost

If you compare the dependency of Chinese markets for exports, the Southeast Asian market has seen a huge spike in the span of five years. As major manufacturing units, tech-based businesses and tourism dependency have been so reliant on the Chinese economy; the Corona outbreak should be seen as an opportunity to boost the local manufacturing landscape.

Also Read: Blessing in disguise: How coronavirus is helping China’s tech sector

Virtual workplaces

As much as we like it, work from home concept is now more than just an accessory in business. Tech startup CEOs and founders must consider virtual workplaces for their operational needs. Many businesses that are already in the process of developing mobile apps for their businesses can rely on freelancers or ask employees to work from home.

The need for virtual workplaces in the Southeast Asian markets needs a boost in their network intensities over several places.

Cross-discipline training

Beating the workforce deficit can also be tackled with cross-discipline training of employees. Startups can leverage this training for developing cross-discipline skills in their limited workforce. It can reduce the impact of lower employee attendance and keep the flow of work intact.

Revenue over growth

Whether you think of M&A, IPO or Secondary buyouts, like any other business decision, startup exits are driven through numbers. These numbers can be kept intact through short-term revenue-based projects that may be fruitful in the short run instead of trying to get the big fish.

For the time being, CEOs and startup entrepreneurs in Southeast Asia should focus on sustaining the pandemic outbreak than looking for a restructuring of the business model. As it may not be easy for ASEAN governments to tackle the cost behind containing the outbreak and at the same time provide a boost to the startups bearing heavy business losses.

Startups in the Southeast Asian markets need to gauge the situation that has been getting worse day by day. With the shortage of supplies, restricted flow of unfinished goods and raw materials, the sustainability of business poses a challenge.

Many startups in Malaysia and Indonesia are hopeful of foreign investments to boost their businesses, which is under pressure due to the impact of the COVID-19 outbreak. 

Startup exits landscape in Southeast Asia is already stronghold and few steps taken by startups and governments in the region can ensure a harmless passage of the pandemic outbreak.

Despite its impact, COVID-19 poses an opportunity for Southeast Asian startups to become self-reliant and rise above the leading markets in Asia.

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post. 

Join our e27 Telegram group, or like the e27 Facebook page.

Image credit: Dimitri Karastelev on Unsplash

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Remote working offers so many exciting possibilities, from sipping Pina Colada while working on a beach to sitting next to an inspiring startup founder in a coworking space.

But in times like this, when everyone is forced to stay where they are the safest, working from home might be all you have to keep you afloat –and sane. 

At e27, we have a team mixed of remote workers all over Southeast Asia and India, and a dedicated office in Singapore for teammates based in the country. So you can say we know a thing or two about managing a remote working.

But to have a fresh perspective, we turned to our community to understand how one can be productive working from home –next to their pop and ma, their kid, and their siblings. Because they, too, are stuck at home.

The matter of communication

The first challenge to emerge is communication. You are used to sitting next to Susan, and go into an hour meeting with Simon to talk about an ongoing project. But now, suddenly, they are nothing but icons on Zoom or Google Hangout.

Issues such as connection, noisy background, and sound delay may make you feel like things are not working in your favour, but it is the perfect time to get creative.

Also Read: Why remote working is the future for startups

One of our community members pointed out a valid point regarding remote communication in working from home situations.

“I think about it in two ways: one is that interactions build trust. Other is if the related parties don’t have similar experience in things like writing and literature then their use of languages is always going to be different and it will create differences that make communication hard. The second one is often ignored, but being a reader and a writer is critical to team success remotely. The key is to listen and to over-communicate in this period.”

One community member directed us to this hilarious curation of remote-working, WFH-related tweets to @WorkWithoutPants. One tweet suggested to do a virtual coffee, which is essential to have a sense of belonging in a team –even if it is just on the screen.

Essential digital tools for WFH

At e27, the tools that help us every day are regularly-scheduled meetings on Zoom for weekly updates, Slack for daily huddle, and Hangouts for other meetings.

Another member pointed out other digital management products to use: Trello and Asana, along with Calendar and Google drive.

Other alternatives

Remote working is something that does not favour micromanagement. Micro-managing by managers are easily done when working in an office environment, but WFH would not succeed with a helicopter-style of leadership.

However, it is understandable to feel as if your team might neglect their work during their stay at home simply because you cannot see them face-to-face. This is why many people choose to stick to working on office hours despite the convenience that WFH offers.

One team member gave his take on the matter to make the setting work for both the company and the employee.

“Give each other space as you would in a physical office, but make it a point to communicate at regular intervals, to shoot the breeze if not anything, as your mileage may vary depending on working styles,” he said. 

But in a situation involving a self-quarantine, there will be limited mileage made, which left the managers in charge with no option but to practise confidence in their team and being more result-oriented.

Also Read: e27’s remote staffers sharing their work-from-home experience

Another way to do WFH without losing the productivity the office environment offers is to set a clear policy about what it means and what it takes for employees. This one is especially necessary if WFH would be something that is completely new for your team.

“With my trainees that I train for companies, I set soft deadlines and in-between, I do morning check-ins with them,” said one member. 

The age of video

“All I can tell you is that I have used video these days to communicate with my audience. It helps me come up with ideas and helps me practice communicating with people, which is the core function of my role,” said another member, who works with a Hong Kong-based VC firm, where a face-to-face meeting is needed but impossible now.

With startups being forced to get that creative juices flowing to make sure that business goes on as usual, VC firms that rely heavily on in-person meetings must resort to online calls. Our community member thinks that video is a good enough medium for now, as it helps support the meetings –which can happen two to five times a day.

Conclusion

Our community members shared that for some of them, working from home is practically the norm even when quarantine order is not enforced in their area.  

We learned that roles such as developers, content writers, and people who deal with data are the ones most adaptive to this working-from-home situation.

“I run a remote data science training company, so I’ve been 90 per cent remote from day one, so the change hasn’t been too drastic for my co-founder and me,” said one community member.

The case is also the same for half of e27’s team members, particularly the Content and Marketing team, who have been working remotely for the company. They have shared their take on their WFH lifestyle and how they stay on top of their work even with home-based distractions.

Also Read: The future of remote work is happening now, here’s how to make it work for you

Some of the top tips shared by e27’s team members are the importance of having a dedicated workspace, keeping a routine, and having a daily or weekly to-do list to make sure the team’s focus is aligned with tasks and OKRs.

Finally, the success of a remote team all comes back to clarity in communication. Not just about work but also about mundane, daily things that happen in your life that is worth sharing with teammates.

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Image Credit: Daria Nepriakhina on Unsplash

 

The post e27 Community shares their proven tools and tricks to work from home appeared first on e27.

Listen in to hear how Sebastian Starzynski, CEO of TakeTask, has created a system to manage tasks when you have a geographically dispersed labour force or freelance partners working for you. You can communicate with them via the mobile application. Complex tasks can be preceded by in-app training.

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This article was first published on nfinitiv.

Image Credit: Sunyu Kim on Unsplash

The post Podcast: A conversation with Sebastian Starzynski, CEO Of TakeTask appeared first on e27.

With e27 Pro pioneering feats in the startup tech ecosystem, here are 6 startups who have decided to be part of the future

At e27, our mission is simple: to empower entrepreneurs by proving them with the right tools and insights to build and grow their companies. As such, we decided to build a platform that can help bolster our efforts, nurtured by the same principles and goals that have kept the e27 brand relevant across the startup tech ecosystem.

But a platform is nothing without those who choose to maximise it. When we quietly launched e27 Pro, our community has been most supportive; offering encouragement and feedback that helped us design e27 Pro into what it is today: a membership programme that is designed to give you actionable insights, exclusive business-building programmes, and tools that enable your company’s success.

So, without further ado, we would like to introduce six startups who have signed up for e27 Pro effectively solidifying their commitment to innovation and community-building.

Riskwolf AG

Riskwolf is a white-labeling solutions platform that insures the digital economy by providing event-based product innovation. It enables re-insurers to simulate, test, launch and operate high-frequency insurance products based on parametric insurance products for individuals & SMEs cheaper and faster. Their first product is a parametric loss protection coverage against Internet outages for digital businesses in emerging markets.

Rekosistem

Rekosistem is an end-to-end zero waste management Startup that strives for a sustainable ecosystem. They improve how waste value chain works to be more productive and efficient with minimal behavioural changes. They believe through technology and innovation, there is always a way to realize a circular economy. Rekosistem — coined from combining “re” which stands for (1) reduce, (2) reuse, (3) recycle, (4) renewable, and “ecosystem” (in Bahasa: Ekosistem) — redefines end-to-end zero waste ecosystems.

Meerkats Work

Meerkats Work is a B2B business automation platform that connects workplace behavioural data to business performance. Built by a founding team of industry insiders for all service companies, Meerkats is the only software in the world that integrates business intelligence with employee engagement to empower business owners with true agility.

I Task Pte Ltd

iTask is a platform that creates the opportunity to improve the community’s living quality. With this simple platform, they want to help connect with people who are ready to work with people who need the work done. Their platform assists to help people get their tasks done in a faster and more economical way. By 2030, they aim to serve 0.4 million frequent users in Southeast Asia as well as 4 million users in the same region. iTask also targets 0.1% of the 400 million people living in urban areas to register as a frequent user, which is equivalent to 0.4 million users with an average of 15 tasks completed in a month.

Flexible Pass

Flexible Pass is the No. 1 Health and Fitness app in Myanmar that gives users access to over 80 gyms, fitness centers and hotels offering a wide variety of fitness activities in 19 different categories.

The vision of Flexible Pass is to help people in Myanmar live a healthier lifestyle by providing them with affordable and flexible fitness and wellness options.

The fitness activities that can be accessed using Flexible Pass are gym usage, boxing, indoor skydiving, rock climbing, rowing, swimming, yoga and over 80 different types of classes.

Shuttle Delivery

Shuttle Delivery is a food solution platform that connects people to restaurants in their area and gives them the option to schedule a pickup or get food delivered. The easy-to-use interface makes it effortless to browse photo menus from local restaurants, see reviews, and connect to favourites. Shuttle remembers past orders, gives smart suggestions, and integrates preferred payment methods.

Stay tuned as we unveil more e27 Pro early adopters in the coming days. Watch out for them.

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Be a member. Sign up for e27 Pro today >>>

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Are you a startup and keen to connect with these 4 funds and 160 others this April? Let us know today >>>

The post Meet 6 startups who are early adopters of e27 Pro appeared first on e27.

Finance

Community-based social commerce platform Chilibeli raises US$10M led by Lightspeed Ventures

Indonesian social commerce platform Chilibeli that connects farmers and manufacturers to bring fresh and quality products at affordable prices, has received US$10 million in funding, led by Lightspeed Ventures. 

Also participated in the round are Golden Gate Ventures, Sequoia Surge, Kinesys Group, and Alto Partners.

Also Read: Meet the 8 Southeast Asian startups who will receive US$1-2M each from Sequoia’s Surge programme

According to the company, the funds are being used to strengthen Jakarta, Tangerang Selatan, and Depok’s networks of communities, while also expanding its reach to Bogor and Bekasi. It also plans to continue to improve the UI and UX of its application, as well as advancing the facility of its Depok’s warehouse.

Launched in July 2019 by Alex Feng, Damon Yue, and Matt Li, Chilibeli empowers its agents (partners), many of whom are housewives, with the opportunity to create value for consumers, promote community bonding, and increase their household income.

Chilibeli saw a social opportunity in Indonesian housewives being in control of household spending. The firm is seeking opportunities to pursue their aspirations by also finding another source of income to the family, and Chilibeli benefits housewives by leveraging social networks amongst their communities and neighbourhood through the most basic household spendings, and also by making the price of groceries more affordable compared to the price of the market, daily.

Genomics-tech startup Nusantics raises seed funding led by East Ventures

Indonesia-based genomics technology company Nusantics announced today it has raised an undisclosed amount of seed funding, led by East Ventures. 

The fresh funds will be used to “accelerate company in pioneering the BioGenome journey” in the country.

Nusantics focusses on applying advancements in genomics and microbiome research to fulfil consumer needs of a healthy yet sustainable lifestyle. The company was founded in 2019 by Sharlini Eriza Putri, Vincent Kurniawan, and Revata Utama.

Microbiome is a complex ecosystem of microorganisms such as bacteria, viruses, and fungi that live on and inside every human and every living thing on earth. It is instrumental to the immune system and each person has a unique microbiome profile.

Nusantics believes that understanding customers’ own microbiome profile is essential in helping consumers pick the necessary products that fit their bodily needs and also are more sustainable. 

The firm said it plans to begin to introduce its technology to the Indonesian lifestyle market by applying them for human skin — a living ecosystem of billions of microbiomes.

Corporate angel network she1K injects over US$348K in 3 startups

Corporate angel network she1K has invested over US$348,000 in three startups, which participated in its C-shark Tank programme. The startups are marketplace startup Lumiere32 (Singapore), petcare startup Kibus (Spain), and medtech Nephtech (Singapore).

According to an article by DealStreetAsia, the top three startups were selected from 12 finalists of the C-shark Tank programme. According to she1K, startups were evaluated based on valuation appeal, defensibility, team, traction, business model and scalability.

Also Read: Singapore’s version of ‘Shark Tank’ will send the winner to the UK

She1k was founded by Christina Teo, founder of Startup Asia Women, with the aim to expose more corporate women to startups and angel investing. It seeks to push for more gender diversity on company boards, especially in the startups it invests in.

Indonesia-based edutech startup Pahamify raises US$150K funding from Y Combinator

Pahamify, an Indonesia-based edutech startup that provides lessons for senior high students, has received US$150,000 funding from Y Combinator. 

The company said that the funds will be used to add new learning materials for junior high students and teachers to the platform, as reported by KrAsia.

“Our target is to remain innovative in helping Indonesian students reach their maximum potential and feel the thrill of learning,” said Pahamify CEO Rousyan Fikri.

Before this funding, Pahamify has also received an undisclosed amount in grants from YouTube and Y Combinator. Pahamify is listed among Y Combinator’s winter 2020 batch, together with two other Indonesian startups, Newman’s, and YukStay.

Founded by a YouTube science influencer in mid-2017, Pahamify combines science learning, film-making, and gamification to create high-quality educational content under its Pahamiframework. The platform uses animated videos, quizzes, and summaries to engage users.

Business

gojek denies laying off employees and merger with Grab, stating profitability

gojek has addressed the issue that it has recently laid employees off amid the company’s profitability. In a TechInAsia’s article, gojek CEO Andre Soelistyo reportedly told employees that the company’s transportation business has been profitable for “a few months” during an internal town hall meeting, while its food delivery and a payment gateway arm remain unprofitable.

During the town hall, Soelistyo also denied a recent report that said gojek has let go of over 100 mid- and lower-level employees.

In addition, Soelistyo said that news about merger talks between Grab and gojek, is false.

Recently, the company raised US$1.2 billion in fresh funding.

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Picture Credit: Nusantics

The post Morning News Roundup: Chilibeli raises US$10M, gojek denies staff layoff and Grab merger reports appeared first on e27.