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Afternoon News Roundup: Cash-strapped e-commerce firm Leflair files for bankruptcy in Vietnam

Vietnam’s e-commerce startup Leflair declares bankruptcy after facing capital crunch

Leflair, a premium e-commerce platform in Vietnam, has filed for bankruptcy,  according to DealstreetAsia.

The startup owes about US$2 million to 500 partners, according to several reports.

In February this year, Leflair, which deals in premium products, had  announced its decision to cease the local operations due to the fierce competition in the market.

In a latter to merchants, it had said said: “The changes in the investment landscape for startups have made Leflair’s current business strategy difficult to pursue. Under the capital crunch and requirements to cut costs, we had to make the tough decision to cease our operations in Vietnam.”

The company has revealed that it had suspended local operations due to “changes in the investment landscape for startups which caused operational inefficiencies”.

In 2018, the startup had raised US$7 million from private equity firm Belt Road Capital Management and South Korean retailer GS Shop in 2018.

Uber considers laying off up to 700 employees in India

Ride-hailing giant Uber is expected to lay off roughly 500 to 700 of its employees in India, according to TechInAsia.

This speculation comes in as many companies are forced to take harsh measures due to the ongoing pandemic, which has hit the region’s economy with a deathblow.

Also Read: Google SEAs MD on why women should be confident, speak up and contribute

In a recent article by The Report, CEO Dara Khosrowshahi cautioned its employees about the harsh measures Uber might take to ensure survival.

“Hope is not a strategy. We’re not going to avoid hard decisions,” he said.

Uber will most likely confirm the news and announce the layoffs when the lockdown is lifted, one of the sources close to the matter said.

Image Credit:  Benedikt Geyer

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10 sustainability-focussed startups to present in HyperSpark’s virtual Demo Day

HyperSpark, an early-stage, sustainability-focussed startup programme in Asia, will hold its Demo Day on Wednesday (May 6).

The virtual Demo Day will feature 10 companies in the first cohort of its 10-week-long pre-accelerator programme. The cohort includes a company working on zero-waste organic toothpaste, a tech-enabled hiring platform that cuts out the middleman for migrant workers, and a social learning platform for kids.

These startups will share real stories about their challenges and commitment to tackling global sustainability issues.

Also Read: HyperHack, world’s first sustainability hackcelerator, to launch in Singapore

HyperSpark is a part of HyperX, the global hackcelerator programme launched by StartupX and Temasek, to propel innovative solutions that can help shape a better, smarter, and more sustainable world. It aims to provide a platform for startups to get support, mentorship, resources, and funding regardless of the stage they are at.

The programme pivoted to an online format midway through, as the teams adjusted to the circuit breaker measures that were introduced in early April.

Over the course of ten weeks, the HyperSpark teams worked with mentors and coaches on various aspects of their business, building up their product and acquiring their first users and customers.

Each team was also provided with a US$10,000 grant to support them in their product development and user adoption to define their product-market fit and gain traction.

StartupX’s CEO Durwin Ho said that the first cohort of HyperSpark shows that there is still much work to be done to help sustainability-focused startups grow in Asia’s ecosystem.

“We have seen so much potential in the first cohort. These companies are working to improve education, achieve zero-waste in different industries, and provide greater access to underserved communities, to name a few. But 2030 timeline to achieve sustainable development goals is looming and more needs to be done to support founders and innovators in this space,” he added.

Photo by NeONBRAND on Unsplash

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Why the e27 Ecosystem Roundup is everything you need to stay up to date

e27 ecosystem roundup

We know that being a startup founder and staying on top of things can be a very difficult job. Our goal is to make the experience so much easier for you.

On top of running companies toward optimum business growth, startup founders also have to deal with the overwhelming number of news and information being broadcasted every day. News and information are imperative for the modern-day tech entrepreneur to stay ahead and keep up to date with things concerning the ecosystem. Information about our community ultimately helps founders become better decision-makers.

As such, one of the most important features of e27 Pro is the e27 Ecosystem Roundup: an exclusive bi-weekly subscription that features relevant, curated, and actionable news and insights geared for business success.

The e27 Ecosystem Roundup is a comprehensive archive that covers everything from the latest news to insights on current trends. What makes it exciting is that we put together everything you need to know from over 50 reputable news sites in one email, twice weekly.

With the help of this feature, startup founders no longer have to sift through piles upon piles of new information every day. The e27 Ecosystem Roundup already does that job for you, and more. With everything you need to know about tech and startups in one email, startup founders can focus on running their businesses and still remain updated with the latest news and trends.

Also Read: Going big? Then Go e27 Pro.

The e27 Ecosystem Roundup is only one of the many key features that come with a Pro membership. By signing up for Pro, you can enjoy a slew of exciting things including access to e27’s investor database, the chance to be featured on our Fundraising widgets, and the power to get in touch with your dream investors through e27 Connect.

Staying true to its name, an e27 Pro membership means taking your company to a more professional level, all while supporting your company and the vibrant startup community that we all operate in.

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Indonesia’s B2B FMCG marketplace GudangAda raises US$25.4M Series A to launch new initiatives

GudangAda, an online B2B marketplace for fast-moving consumer goods (FMCG), has raised US$25.4 million in Series A funding round, led by Sequoia India and Alpha JWC.

Existing investor Wavemaker Partners also joined.

This round brings the company’s total fundraise to date to US$36 million.

Also Read: Indonesian B2B marketplace for FMCG gudangada secures seed funding led by Alpha JWC, Wavemaker

The Jakarta-headquartered company said in a statement that it will use the money to enhance its platform, launch new initiatives, and strengthen the team.

Started just over a year ago, GudangAda connects small mom-and-pop retailers with wholesalers. The platform empowers the FMCG supply chain by bridging a technology gap, enabling traders to become both a seller and buyer in conducting multiple transactions concurrently. This way, business are able to sell products at cheaper rates and expand their reach.

The company claims to have a full market coverage of FMCG wholesalers in Indonesia, and it is now targeting seven to ten per cent of the nation’s large retailer base for their next phase of growth.

The limited physical interactions due to the COVID-19 pandemic are pushing wholesalers and retailers to adopt digital solutions putting the FMCG market in Indonesia in a challenging position.

With the rising awareness around the importance of social distancing, GudangAda has also launched several initiatives, including a pilot logistics service to help the merchant network maintain the availability of essential products in the local supply chain.

Also Read: Challenging existing fundamentals in logistics and supply chain

This service is currently available in Greater Jakarta, Bandung, Semarang, Medan, and Lampung, while the company has expansion plans to cover major cities nationwide within the next few months.

The company is also working on distributing government assistance to remote and secluded areas by leveraging its nationwide reach within the nation’s FMCG supply chain during the social restrictions. It also launched food donation programmes across the country for underprivileged local citizens.

Previously, GudangAda raised US$10.5 million in a seed funding round co-led by Alpha JWC Ventures and Wavemaker Partners, with participation from Pavilion Capital.

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Singapore’s biotech firm RWDC bags US$133M to create a plastic-free world

Single-use plastic continues to be a grave threat to the planet.

Researches are going on across the world to develop an environmentally-friendly alternative to plastic and several innovators have already made a breakthrough.

Singapore-based RWDC Industries is one such company that has developed a biodegradable version for single-use plastic. The biotech startup has just bagged a massive financing for its work.

RWDC closed a US$133 million “two-stage” Series B funding round, co-led by Vickers Venture Partners, Flint Hills Resources, CPV/CAP Pensionskasse Coop, and International SA.

Also participated in the round are existing investors, including Eversource Retirement Plan Master Trust and and cross-border VC investor WI Harper Group.

This comes exactly a year after RWDC raised US$22 million in a Series A round, led Vickers and US-based Eversource Retirement Plan Master Trust.

Established in 2015 by Roland Wee and Daniel Carraway, RWDC develops innovative and cost-effective biopolymer material solutions, including polyhydroxyalkanoates (PHAs).

Also Read: Financial products comparison firm GoBear acquires lending platform AsiaKredit to build regional reach

PHA is naturally produced by microbial fermentation of plant-based oils or sugars and is commercially viable biodegradable bioplastic. PHA will help to improve the climate, with less GHG emissions. It will also improve human health and the health of our ecosystems, with no endocrine disrupting chemicals and no harmful micro-plastic waste.

Expanding to Athens

RWDC will use the funding to meet growing demand for PHA, including by expanding the company’s production capacity with a new facility in Athens, Georgia. A portion of the capital will also go into R&D.

“This investment will help us significantly increase our production capacity so that we can meet needs of brand owners who want to improve the lives of their customers by offering materials that have a positive effect on human health while improving environmental stewardship,” said Carraway.

Produced primarily from used cooking oil, PHA is certified by TÜV AUSTRIA to be fully biodegradable in soil, water, and marine conditions – leaving no toxic residue.

In 2018, RWDC’s proposal to use PHA to start replacing single-use plastics won the inaugural Liveability Challenge, presented by Temasek Foundation.

The biotech company will accelerate plans to meet increasing demand for materials to replace plastics for food service, food packaging, consumer goods packaging and other consumer items.

Vickers Venture Partners is a global early-stage VC firm investing in lifesciences, technology, media, telecom, consumer and financial services. In March 2020, Vickers received commitments of over US$200 million for its fifth fund worth US$500 million.

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Image Credit: RWDC

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Afternoon News Roundup: Vietnam’s fresh food-to-table platform FoodHub raises seed funding

Vietnam’s fresh farm food-to-table platform FoodHub raises seed funding

FoodHub, a startup that home-delivers fresh farm food in Vietnam, said today it has raised “up to hundreds of thousands of USD” in seed round of funding.

ThinkZone Accelerator, which has previously invested in the startup, acted as  a funding connector and consultant in the current round. It is not clear if ThinkZone has also joined the new round.

When contacted, FoodHub declined to share the details of the investors and  transaction.

The funds will be used to scale FoodHub’s business with a focus on Vietnam’s Northern market and to further promote its supply chain growth. 

“After validating FoodHub’s product fit, it is time for us to accelerate and scale up. And we have been fortunate to meet a very suitable strategic investor, with not only a supplement of financial resources but also many other core competencies. The two parties have agreed on a roadmap to cover Vietnam’s Northern market right this year,” said Vinh Nguyen, Founder of FoodHub.

Launched in 2019, the startup aims to help customers buy fresh farm food via a mobile app easily and quickly. 

According to the company, organic food market has been wholly neglected by the Vietnamese e-commerce platforms because of its distinctive characteristics, such as short shelf-life, complex packaging standards, difficulties for storage and non-uniformity in quality. 

However, FoodHub claims to have grown its customer size more than three times since launch, primarily during COVID-19. 

Beenext leads US$13.3M Series B  in logistics startup Loadshare

India-based B2B logistics-tech firm Loadshare has raised US$13.3M from Singaporean venture capital fund Beenext, according to VCCircle.

The Series B funding round saw additional participation from Matrix Partners, Stellaris Venture Partners, and Alteria Capital.

The new round of investment will be used to expand its network and enter sectors such as pharmaceuticals, fast-moving consumer goods and grocery for delivery of essentials.

Also Read: Morning News Roundup: Cashlez becomes the first Indonesian fintech firm to debut on country’s Stock Exchange, plans to raise US$5.8M

Founded in 2017, Loadshare offers technology-based solutions for small to medium business owners in logistics, including access to customers, guidance on business development, branding and operational know-how.

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India’s e-commerce giant Flipkart names new CFO

India’s e-commerce giant Flipkart has confirmed Sriram Venkataraman as its new chief financial officer (CFO), according to The Economic Times.

In his new role, Venkataraman will be responsible for key finance operations and functions at Flipkart and Myntra, including tax, risk management and treasury.

Emily McNeal, who preceded Venkataraman, has decided to return to the US to pursue a career opportunity outside the Walmart Group, according to a statement.

“Sriram has consistently demonstrated his expertise managing several diverse functions at Flipkart and is well poised to take on the responsibilities as Flipkart Commerce CFO. We thank Emily for her leadership and guidance in strengthening the governance process and financial reporting at Flipkart post the Walmart investment,” said Flipkart Group CEO Kalyan Krishnamurthy.

Image Credit: Blair Fraser, Beenext

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Morning News Roundup: Temasek invests in Pivot Bio, GoBear co-founder joins Standard Chartered

Temasek co-lead US$100M investment in US biotech startup Pivot Bio

Temasek and Breakthrough Energy Ventures have co-lead a US$100 million Series C funding round in US-based biotech fertiliser startup Pivot Bio, Dealstreet Asia reported.

The funding round also included the participation of DCVC, Prelude Ventures, Spruce Capital Partners, Codon Capital, Bunge Ventures, Continental Grain Co., Tekfen Ventures and Pavilion Capital. It also included individual investors Alan Cohen and Roger Underwood.

The startup said in a statement that the funding is meant to scale its microbial nitrogen technology which aims to increase crop yields while reducing greenhouse gas emissions and pollution.

GoBear co-founder joins Standard Chartered

Standard Chartered today announced the appointment of Marnix Zwart as Global Head, Partnerships of its Retail Banking division, effective immediately.

Zwart is known as the co-founder of financial comparison site GoBear in which he had held the position of Chief Commercial Officer. He was previously Chief Product Officer and co-founder of Kroodle in the Netherlands.

Zwart will be based in Singapore and reports to Aalishaan Zaidi, Global Head, Client Experience, Channels and Digital Banking.

Also Read: News Roundup: Novade raises Series B funding; Temasek JV invests in UK startup

Tokopedia probes alleged user data leaks

Indonesian e-commerce giant Tokopedia announced that it is investigating the attempted hack and data breach of its users, a spokesperson told The Straits Times on Saturday.

The statement followed the publication of a Twitter post on Saturday by data breach monitoring firm Under the Breach that shows screenshots from an unnamed individual who claimed that he had acquired personal details of Tokopedia users through a hack in March.

Survey: Remote learning in Indonesia hampered by lack of student-teacher engagement

In a recent survey, the Indonesian Child Protection Commission (KPAI) revealed that students in the country have complained about a lack of engagement from their teachers after classes were forced migrate online as a result of the COVID-19 pandemic, The Jakarta Post reported.

Conducted between April 13 and 21 with 1,700 students and 602 teachers in 54 cities and regencies involved, the survey results stated that 79 per cent of students reported little to no interaction with their teachers in the virtual classrooms. They explained further that the teachers only used the platform to assign homework.

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Singapore’s logistics-tech platform Ninja Van nabs nearly US$124M in Series D round

Singaporean logistics-tech platform Ninja Van has secured nearly US$124 million in a Series D round of funding from new and existing investors, including Geopost and Facebook Co-founder Eduardo Saverin’s B Capital, say various news reports citing public filings.

Other participants are US-based Carmenta Capital, Brunei’s state-owned fund Zamrud Sovereign Wealth Fund, Bangkok Bank, Thai telco Intouch and GxH Investments, also joined the round.

Ninja Van is yet to confirm the news.

Founded in 2014, NinjaVan is a tech-enabled delivery system operating in Southeast Asia. It offers custom solutions for different individuals to fulfil their logistics needs.

The firm also recently launched Ninja Direct, a feature that helps online sellers, source, purchase, ship and finance wholesale products.

In a recent interview with the Peak, Ninja Van’s CEO and Co-founder Chang Wen Lai spoke about the changing landscape for retail companies amid the COVID-19 crisis.

“The big question here is, when will social distancing end? Retail may open again, but will footfall remains the same in the next year? Previously, online was considered ancillary to the overall revenue, but COVID-19 has forced the retail world to shift online,” he said.

Also Read: Ninja Van and Grab join forces for intercity parcel delivery service

Ninja Van recently also launched a national movement for individuals and organisations, #SGPAYSITFORWARD, where people can help vulnerable communities in Singapore by buying an essential care package.

The company raised its Series C round in January 2018, led by international parcel delivery firm DPD Group.

To date, it has raised a total of US$241.5M in funding over five rounds.

Image Credit: Ninja Van

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Communicating a crisis: The one thing you can control right now is how you respond

leadership_crisis

By now, most of us are settled in this new “not so” normal phase, where all our worlds have merged into one space and all we have is a window of talking heads on a screen as our communication to reach the outside world and our different spheres of life.

We all need to chart out a sustainable approach to keep our body, mind, team, and business healthy during this time. As I am in the second phase of Singapore’s circuit breaker –de facto lockdown– I never thought I would become a whiteboard colour-coded timetable kind of working mum scheduler, who allocates “office hours” to her kids to ask me anything while I get through my tasks for the day.

But extreme times call for extreme measures. The saying “if you fail to plan, you plan to fail” never held truer, especially for communications.

The four main areas for a leader to consider as a CEO or founder during times of crisis are empathy, transparency, your purpose, and leadership style.

Empathy

This unprecedented situation has everyone in it, so acknowledge and be aware of the hurdles and difficulties everyone is going through as you are going through it yourself and understand the depth of it.

Also Read: 3 essential crisis communication strategies every entrepreneur should know

The health, well-being and sanity of the person on the other end is the most important thing right now before talking about deliverables and KPIs. Relate on a personal level first, and then focus on work.

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Start with “you” instead of “me” at the centre and talk about their state and well-being as being part of “us” and a team vs the company or business. This can be hard for some leaders and I have seen some pretty cold, uninspiring and robotic messaging from companies since this begun. The tone you want to take is a community-oriented one where your communication should give your team members advice on how to survive this.

Connect with individual team members and reach out for regular “pulse checks” and block out time on the calendar to do this. At Antler, we have increased the number of town halls we have and people share their states of mind, along with the week’s highlights and low points.

A lucky member of the team will get called to share a joke and everyone needs to be prepared because you never know who is going to be asked. As a frame of reference for tone, think “We are here for you; We understand; We care.”

Transparency

This is especially important when communicating with customers, clients, and stakeholders. Living in an age of information overload, don’t be afraid to directly address your customer in relation to your business.

For example, for Antler, our first line of contact outside the team would be founders from the program- we wanted them to know we are there for them, have their backs, and share advice and help in any way possible. This might not be easy for everyone, but the situation is universal.

Also Read: Unexpected things Singaporeans searched for while working from home

Likewise, for a business to support customers, first reach out to them and then track and document intel across your customer base. To strengthen relationships and build trust, keep the focus off yourself and explore how you can truly help your customers. Cash flow and job security is on everyone’s mind.

You could propose payment schedules to ease their liquidity crunch or offer pro bono or in-kind provision of services. Keep in mind who you are talking to in terms of the personas of your consumer.

When we talk about personas, think about what demographic your customers or clients are? Are they millennials, millennials with young families, Generation Z singles living alone or with their parents, Generation X with families, Baby Boomers or singles with older parents?

Bear in mind not everyone will have the facilities and environment to work from home or cook from home regularly– so when you communicate, contextualise the communication by referring to these specific real-life situations everyone is dealing with and don’t be afraid to over-communicate online.

This can be implemented in many ways via e-mails, increasing the frequency of newsletters or going all out on specific social media channels you know your customers live on. Internally, be as transparent as you can be about your company’s fortunes, the challenges that lie ahead, and how you plan to make it through these tough times.

Also Read: Why silence is not golden

Your purpose

If you couldn’t really answer or justify the reason for your company’s existence before the pandemic, now might be the best time to do some business soul searching and consider pivoting. However, if you did know your why, now is a good time to re-evaluate it or make your product or service better for your customer, while adapting to the current situation and truly being helpful to your customer.

Collect and amplify positive messages, successes, acts of kindness, obstacles that have been overcome to show you care on a more collective level. This could be a great time to partner with communities that complement your business and expand your customer base. For example, if you are an F&B outlet that already relies largely on takeaways, tap into communities of healthcare or migrant workers or go directly to hospitals and offer them free or discounted meals.

Many companies are tied to a noble purpose such as saving lives, manufacturing medical equipment, helping markets function more efficiently, or simply, providing joy through experience. Ask yourself, what’s the effect of what has happened in relation to your business?

Then link it to your brand and product. It’s not just about being adaptable but there has to be a mindset shift in how you approach your consumer.  This would entail being creative, having some humility, and thinking hard about how you are going to manage the next six to 12 months on various levels.

As a business, showing a dedication to your customers as well as your people take a long-term and thoughtful approach in your actions and the way you strategise action and communications around it. The obvious examples are brick and mortar stores or restaurants that didn’t previously deliver, digitising and getting online.

The not so obvious ones are how much more mental health support people are going to need to get through this and how to get it to them in their own language, market and context. Due to all the screen time children are getting, there has also been a resurgence of craft making and tangible, tactile toys as parents want to ensure they get other experiences.

Also Read: A founder’s guide to successfully working from home

And let’s not forget the making of hundreds of master chefs globally- so many people I know are now home bakers and chefs with fancy appliances for various cuisines and diets. Businesses have taken some interesting pivots and you need to look at the larger picture and think ahead as this pandemic period unfolds.

Communication leadership style

Though there isn’t usually just one type, this once-in-a-lifetime situation brings out some distinct leadership characteristics in people. I am sure you can relate to these personas based on some of my observations during COVID-19.

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The Speed Runner

This is the one who preempts and implements before anyone else and is the CEO who communicates quickly and efficiently, but not necessarily with a long term or well-thought-out plan. She is adapting and moving fast to catch up with the continuous changes so the frequency of communication is high, but not often detailed.

The Frozen One

This leader is living in another world and wants to hold onto the past or keep a Business-as-Usual (BAU) mindset. She thinks this is temporary and all else will return to normal after it’s over.

The Fighter

This leader is completely focused on dealing with only the most important issues at hand and is relentless at prioritising. She will not focus on starting new things or thinking too much out of the box and handle only one mountain at a time.

The here and now

This leader is aware and mindful of the COVID-19 tsunami and is laser-focused on how to mitigate the negative effect on the business and getting her company out of this tough phase, no matter what it takes.

Also Read: 5 ways to improve your productivity by working from home 

The optimistic realist

This is the one that looks ahead and plans ahead while being very real about the current situation and relating that message to employees on a personal level. Think of someone who is a visionary looking forward and is also able to acknowledge as well as take into account the current situation in a balanced way.

Which one are you?

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