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Kejora Capital, SBI Holdings launch US$30M fund to invest in early stage Indonesian startups

Kejora Capital and SBI Capital have partnered to launch a US$30 million fund called the SBI Kejora Orbit, designed to invest in early stage tech startups in Indonesia, according to the company statement. The final close of the fund is expected to be by the end of June.

The first Orbit Fund will infuse US$200,000 to US$3M for each startup in areas ranging from supply chain, education, healthcare, consumer goods and retail, agriculture, fintech, and digital media.

According to the statement, Orbit has received “strong” backing from an undisclosed group of investors which include family offices, high net worth individuals, corporations, and other institutional investors across Indonesia, Singapore, Japan, and Europe.

“More than ever, startups nowadays need support from experienced VC. Orbit Fund will not only provide financing but also offer combined resources from Kejora and SBI and insights from the extensive portfolio companies across the 25 countries to help build a strong generation of startups in Indonesia,” said Billy Boen, Director at Orbit Fund, who will also be leading the operation and investment initiatives.

Also Read: gojek names Facebook, PayPal as new investors in latest funding round

“Since our first co-investment with Kejora more than three years ago, we have continuously cemented our confidence in the Indonesian technology sector through investments and partnerships. As such, we are thrilled to renew our commitment to the technology asset class in Indonesia with the launch of Orbit Fund,” said SBI Holdings president and CEO Yoshitaka Kitao.

Japanese financial giant, SBI Holdings, has already been an active investor in the region, having invested in several prominent companies such as Tokopedia, Investree, Ralali, Amartha, and Taralite. This will mark SBI’s first fund focusing entirely on Indonesia.

Kejora, on the other hand, is a local venture capital firm that oversees more than US$380 million in assets under management across three funds, namely Kejora Star Capital I, Kejora Star Capital II and InterVest Star Southeast Asia Growth Fund I. The VC’s prominent deals include Indonesian delivery firm Sicepat Ekspres, C88 Group, SmartStudy, and Sorabel.

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Image Credit: Orbit VC

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Authenticity first: 5 tips for effective customer communication post-COVID-19

black iphone 7 on blue background

Businesses are reeling from the COVID-19 global pandemic.

The IMF claims that the global economy is expected to shrink by over three per cent in 2020 – the steepest slowdown since the Great Depression of the 1930s. Plus, data indicates that 41 per cent of startups globally are threatened in the ‘red zone,’ having three months or less of cash runway left.

To top it off, around 74 per cent of startups have had to terminate full-time employees since the crisis began.

The term ‘social’ no longer makes us think of social media posts. Rather, the mind automatically thinks of ‘social distancing,’ with everyone glued to their phone screens or laptops, ‘Zooming’ past (pun intended) the distance that now separates family and friends.

Global economies have taken drastic measures – complete with lockdowns and phased re-openings – to flatten the curve and fight against the increasing human toll. In doing so, they gave rise to the world’s biggest work-from-home experiment.

Results so far? Businesses are keeping their heads above water and staying afloat. So much so, that tech giants such as Facebook are leaning towards allowing half of their employees to work from home permanently by 2030.

The point we’re driving home is this: Whichever way you slice it, communication has become the saving grace during the crisis and will remain so in the post-COVID era.

Whether it is coworkers connecting from their homes, companies relying on – and ramping up – their online presence, or globally-dispersed families celebrating virtual birthdays, the power of technology to deliver seamless communication has emerged as the clear winner.

Also Read: Navigate the challenges of COVID-19 while feeding a low-income family in need through #MentorForHope

In this blog, we will look at proven strategies to communicate more effectively with customers, with real-life examples from companies doing it right during this time.

Personalised and honest communication is most needed right now

Recently, Airbnb made headlines, thanks to a heartfelt letter penned by the CEO and co-founder of the company, Brian Chesky. What’s astounding is that despite letting go of 25 per cent of his company, he still won hearts and was praised for being real. Here’s why:

The communication felt genuine and was not another corporate rant about the business going belly up. On the contrary, it was compassionate, humane, and humble in style while being abundant-thinking in approach.

It was an honest account of the decision-making process that led to job losses. Plus, the CEO also made sure to highlight the uncertainty that looms over the travel business instead of making false promises. As you can imagine, this small act of transparency and genuineness gave way to greater confidence and loyalty in the CEO’s actions.

The communication was crystal-clear and extremely detailed, leaving no room for misinterpretations.

In short, Chesky demonstrates what it takes to be human and conduct business when ‘being human’ itself in the times of a crisis is difficult.

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

Another reason why the brand Airbnb tops our list for best communication is the fact that the website is fairly transparent, informative, and open for employees, customers, and the community at large. Notice how everyone can access the CEO’s updates and ‘stay informed’ about how the company is faring at all times:

Key takeaway: In today’s digitally-connected world, it pays for businesses to be human and put themselves in the customer’s shoes (and mind) when communicating about delicate issues.

Offer real value to customers

Perhaps the one thing that you should disavow when it comes to communicating your offerings is making them too sales-y.

After all, your customers are suffering, and they don’t need to be overwhelmed with endless emails about offers or sales. Take a cue from the following brands that ensure that they’re offering true value to users and addressing the elephant in the room instead of pretending not to be doing business as usual:

Headspace’s website is a treat for sore eyes and a cure for an anxious mind. Notice how the brand has a dedicated page for the unemployed – there’s real value in what the brand is offering to the users. Plus, it manages to deal with the sensitive issue of unemployment in as humane and compassionate a way as possible, while urging users to experience their product/service:

Another example we’d like to share is that of Airbnb (yes, again). The website showcases ‘online experiences’ and ‘frontline stays’ as a part of Airbnb’s COVID-centric responses:

Another example that’s worth considering is the car insurance company, Geico, which proactively informs customers of all the steps the company is taking to help them during the pandemic. Here’s an email that the company rolled out to its customers:

Plus, the company highlights all these benefits in greater detail on its website as well, calling it ‘The Geico Giveback’.

Businesses need to represent their brand in a new positive and meaningful light to garner greater trust and build deeper connections with their customers. One way of doing this is by gauging how the brand can do their part to give back to the community and communicate about the same with the right tone, content, and context.

Also Read: We are a coding and robotics school. This is how we prepare for COVID-19 outbreak

Content tonality

COVID-19 has affected nearly every business possible; the entertainment sector is no different. With malls and theatres ordered to stay closed indefinitely, producers in India took the onus of releasing big-budget movies directly onto the online streaming partner, Amazon Prime.

Naturally, this ruffled some feathers among the multiplex owners and here’s how two of the biggest multiplex chains in India – INOX and PVR responded:

INOX’s Statement

PVR’s Statement

No brownie points for guessing which of the two multiplex houses faced immense backlash from the Twitterati. Case in point: When it comes to corporate communications, the tone of your content is everything.

Or in other words, if you turn tone-deaf on your communication collateral, it can do more harm than good. In fact, brands that shy away from showing their vulnerable side can be misjudged as too harsh or even inhuman (as in the case of INOX), whereas, as we saw in the case of PVR, a little empathy goes a long way. Agree?

Customer support team

You could have the best-looking websites and the smartest content across your communication touchpoints, but if your customer service team is not well-equipped to deal with the growing list of anxious and emotionally-charged customers, all that effort can go to waste.

After all, physical illnesses, travel cancellations, insurance coverage disputes, financial constraints, among other things, takes a toll on customers as well as the company in question.

Also Read: The social network: Leveraging connections to expand your business through COVID-19

Let’s think of it from the agent’s perspective – most of whom have never worked-from-home. In this new normal, most agents are seen grappling with poor technological support.

Logically, if the agents themselves are facing innumerable challenges, addressing unpredictable customer concerns is out of the question. To counter this, here’s a three-pronged approach that companies can try:

  • Update customer policies to be in line with new requirements post COVID-19.
  • Encourage managers to engage in integrated virtual coaching where the agents can voice their concerns and get appropriate guidance. Here’s what a leader from a study by the Harvard Business Review suggests:

“We had to make sure our managers were doing more open-ended questioning with their reps to find out how their calls were going — what they were feeling good about and what they were struggling with — and scheduling several mini-check ins across the day with their people using video conferencing to mimic the cadence and structure of integrated coaching sessions.”

  • Foster a culture of belonging and connectedness among the agents by way of intuitive collaboration tools.

Taking stock of the situation at hand, we know that the pandemic is not going away anytime soon. Naturally, businesses will need to rework their communication strategy (if they haven’t already done so) to focus on being heartfelt. Luckily, there are hundreds of brands that are already doing the same.

So, if your inspiration dries up, try these strategies that have worked wonders in the real world and give your brand a fighting chance. And, remember that the end-goal is to woo your most loyal fans, your customers, with authentic conversations.

Register for our next webinar: Meet the VC: Qualgro Partners

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Digitalisation is driving the new normal for Southeast Asia’s automotive sector

automotive sector SEA

Stay home, stay safe. That is the rallying cry of the month, if not the year, as we embrace social distancing and travel restrictions to flatten the infection curve of the COVID-19 pandemic.

The longer these restrictions remain, however, the more pressure Southeast Asia’s automotive market faces. Consumer sentiment is weaker, with rating agencies revising their forecast numbers for vehicle salesin the region downwards.

As the pandemic continues, the burden on car dealerships is expected to increase. In Malaysia, some 50,000 members of the car dealer and importer workforce may lose their jobs if the crisis continues beyond two months. However, the common consensus is that COVID-19 is here to stay for at least the next year or so, as doctors and scientists rush to find a suitable vaccine or cure.

Demand for personal vehicles may slow down, but it will not cease. Commuters still depend on cars for transport, especially with transmission fears resulting in plunging public transportation ridership numbers around the world. COVID-19 has challenged dealerships to rethink the way they market their automotive offerings, reach their customers and find niches they can fill in this time of limited mobility.

As with many other industries, the answer lies in leveraging technology, and digitally native startups that can help traditional dealerships overcome this physical divide will herald this transformation.

The digitalisation of dealerships

Government lockdowns and movement control orders across the region are keeping people at home and forcing non-essential businesses to close until the situation improves. This has had a major impact on dealerships as footfall traffic is proven to correlate significantly to vehicle sales. In the absence of walk-in buyers, dealers must now turn to the digital marketplace instead.

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

Prior to the pandemic, the adoption of digital sales platforms was poor in the automotive industry. Cars are big-ticket items and consumers prefer the security of in-person inspections and test drives.

However, the fast-growing online commerce community in the region is seeing a surge of activity from a combination of businesses shifting their operations online and an increase in consumer Internet usage, which makes a strong case for dealers to invest in leveraging these digital channels to reach their customers.

Leading car companies in Asia are already paving the way with innovative solutions. Geely delivers car keys by drone to its customers as part of its fully contactless vehicle sales in China. BMW Asia’s digital showrooms allow customers to browse model ranges and schedule doorstep test drives.

Kia agent Cycle & Carriage launched a flash warehouse sale online with discounts and fully digital consultations. More dealerships are also investing in online sales portals and digital order bookings.

Understandably, customers may be more reluctant to make big purchases completely sight unseen, especially as buying a car is a very personal decision. In the short term, ‘halfway house’ solutions may be more prevalent in automotive sales as the industry and market take time to adjust.

Virtual reality car showrooms, 3D virtual car tours and price negotiations through videoconferencing have the potential to set the stage for the eventual complete digitalisation of the car buying experience.

Data-driven approach

Maximising operational resources is vital to a business’s survival – especially in crises – and this can be achieved through data insights. It is said that 95 per cent of vehicle buyers search for information on vehicles online, with almost twice as many starting their research online instead of at the dealers.

On a basic level, this makes it imperative for both car manufacturers and dealers to have a robust online presence for customers to reach them easily and to stay top-of-mind.

By investing in the correct data management and analysis tools – or working with digital native startups specialising in this area – dealers can drill down further into this consumer behaviour data for better insight into customer search terms and patterns, as well as the sites they are browsing.

It can even be compiled to reveal emerging trends in car shopping behaviour.

Concurrently, this shift shows that relationships are moving from the ‘one-to-many’ to ‘many-to-many’ business models. Which means instead of one model where one company invests and builds an e-platform for many suppliers, more industry networks are trading products and forming public marketplaces for on-the-spot purchasing.

Also Read: Surviving COVID-19: How to adapt your digital marketing strategy amidst a global crisis

This is important as when it comes to the exchanging of cars, individuals can pretty much sell on any platform. But in the past, dealerships or corporate customers remained hesitant due to their preference for traditional norms. Yet, as more businesses buy online, B2C-type open public networks – driven by sellers – can provide quality ‘foot-traffic’ to vendors.

Want to thrive? Then digitalise

New car technologies are being developed every day, yet the purchasing process itself has changed little from both a customer and dealer standpoint. While it is true that COVID-19 has placed a lot of unexpected pressure on car dealers, it can be argued that the pandemic has simply forced long-time operational and engagement deficiencies into the light. It has also highlighted the need for transformation as our dependence on digital technologies grows.

The current situation has already launched a global push for industries to digitalise to survive, and it is imperative that the automotive sector is not left behind. While this is not an overnight change, car dealerships must ramp up their digitalisation efforts to future-proof their operations.

On this front, working with the right digital startups like Carro can help to accelerate that change. The benefits of foresight now will carry well into the future, and dealerships that are first to adapt will blaze the trail for the new normal of the automotive industry.

Register for our next webinar: How to keep your customers happy?

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Hubble lands US$3.6M in Tin Men Capital-led Series A for digital construction platform

 

Updates: The funding amount has been updated

Hubble, a startup that aims to automate construction processes, has raised US$3.6 million in a Series A funding round led by B2B-focussed venture capital firm Tin Men Capital, according to a company statement.

Prior to this funding round, the company has been self-funding its business.

With this latest investment, the Singapore-based company has expressed plans to further scale into different regions in Southeast Asia.

Construction is a large market, and what was long seen as a slow-moving and manual sector, is now finally beginning to digitise rapidly.

By embracing technologies such as data, building information modelling (BIM), smart materials, digital twins, and collaboration platforms, the industry is slowly gearing up to combat infrastructure challenges that are bound to arise as cities grow.

Hubble is one such tech startup which wants to move away from the traditional method of doing construction by venturing into a more efficient way.

Also Read: gojek names Facebook, PayPal as new investors in the latest funding round

Through its software tools, Hubble connects everyone involved in the process such as contractors’ developers, consultants, fabricators, contractors, and facility managers all into one platform.

It improves capabilities across processes of scheduling, resource deployment, and management of productivity via easy to use dashboards and apps that are usable by both contractors’ ground personnel and head office.

The company’s primary focus is Southeast Asia, and it has already partnered with several prominent local government organisations such as Building and Construction Authority (BCA), Public Utilities Board (PUB), and Infocomm Media Development Authority (IMDA).

Southeast Asia is viewed as an emerging market with immense potential to grow, making it a good option for Hubble’s future expansion.

“Building good products is important but is of no use without market adoption,” said co-founder of Tin Men, Jeremy Tan.

“We saw that almost all the major contractors in Singapore have quickly signed on as happy clients with Hubble, including Woh Hup (one of Singapore’s largest building contractors), Jacobs (an NYSE-listed construction services firm), KKL (one of Singapore’s largest earthworks contractors and materials suppliers), and HSC Pipeline Engineering (an infrastructure specialist with a track record spanning over a quarter-century), among others. None of this would be possible without the tight-knit team that consistently and swiftly delivers under the leadership of SJ and his co-founder and CTO Peter Widjaja,” he further added.

However, Hubble is not the only company working in the construction tech space, with Vulcan Capital-backed Novade also operating in a similar area. The company raised Series B recently in mid-April this year.

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Image Credit: Hubble

 

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3 much needed mindset shifts to thrive in a post COVID-19 world

digital transformation

We live in truly unprecedented times. On 26th May 2020, Singapore’s Deputy Prime Minister (DPM) and Finance Minister Heng Swee Keat unveiled the Fortitude Package, a S$33 billion supplementary budget that seeks to provide support for businesses and workers to adapt to the new normal in a post-COVID-19 world. DPM Heng also spent considerable time in his parliamentary speech expounding on how the government is putting in S$500 million via this package to drive digital transformation in Singapore-based companies

TeamSpirit is widely acknowledged as a thought leader in the field of digital transformation in Japan, with frequent appearances by our CEO Koji Ogishima in the media

Today, I wish to leverage on our extensive expertise on digital transformation to elaborate three mindset shifts that are needed for companies to thrive in a post-COVID-19 world. 

The journey of digital transformation starts with a brave first step, so let’s begin–

Defining digital transformation

According to the International Data Corporation (IDC), global digital transformation spending is expected to reach US$2.3 trillion in 2023, and this figure is likely to increase in a post-COVID-19 world. 

Let’s start by clearly defining “digitisation”, “digitalisation” and “digital transformation”: 

  • Digitization refers to the conversion, storage, and usage of analog data to digital data
  • Digitalization refers to the usage of digital data to reconstruct business processes, often to increase efficiency and productivity. Note that there are no changes to fundamental business models
  • Digital transformation refers to the usage of digital data or emerging technologies such as artificial intelligence to create new business models or economic value. 

Remember the early days when people have to flip through the Yellow Pages to find out how to get from point A to point B? This is a classic example of analog data. On the other hand, with the popularization of smartphones, people can simply head to www.gothere.sg or use google maps to key in the starting and ending points.

We can easily retrieve information such as the distance and time needed to travel between both points, and then make informed decisions about which mode of transportation to take. As a result, we progressed from an analog process into digitalisation– not only is data stored digitally (digitisation), it is also used to reconstruct key processes to increase efficiency and productivity for all. 

Also read: Digital transformation is now real: How COVID-19 has sparked innovation in tech companies

Eventually, we witnessed digital transformation when new “unicorn” startups emerged that capitalised on digital technology such as Uber and Grab. Both companies are born out of completely new business models— neither Uber nor Grab owns the physical vehicles, and yet the economic value and wealth they create is enormous. 

Mindset shift #1: Accept that digital transformation is not linear

Now that definitions are clear, let us consider the first mindset shift that is needed in digital transformation. It is a common misconception that the process of digital transformation is linear. To address this, let’s use a pyramid to illustrate the relationship. 

TeamSpirit Digital Transformation PyramidOnly a few companies can reach the pinnacle of digital transformation after a rigorous competition, where the customer value is also higher. The state of technology in most companies will fall within the space of digitisation and digitalisation.

It would serve businesses well to also acknowledge that digital transformation is not a destination, and is instead a continual work in progress. This is because rapid changes are happening in the business and technological landscape every single day.

Along the journey of digital transformation, there will be mistakes and failures, yet this is completely normal. The key is to recognise that the process is not linear.

Mindset shift #2: Embrace a “digital first” mindset

For the past three months, many of us found ourselves participating in an unplanned global experiment on remote work. In April 2020, TeamSpirit did a company-wide survey to find out how our employees are coping with remote work.

And this trend of remote work is likely to continue in a post-COVID-19 world, as companies start to re-evaluate the function of a physical office.

In his Facebook post dated 23 May, Minister Lawrence Wong urged Singaporeans to “now embrace working from home as the new norm”. He made these remarks as Singapore seeks to reopen after Circuit Breaker ends on 2 June.

Tech companies like Facebook and Google announced that their employees can choose to work from home till the end of 2020, and Twitter’s CEO gave employees the choice to work from home permanently, except when they have to be in office for important meetings. 

If partial or full remote work is here to stay for a long time to come, then a digital workplace experience is crucial. According to Deloitte, a digital workforce experience is the “natural evolution” of the workplace. Systems should be in place to ensure that employees enjoy the digital workforce experience which is not constrained by geographical boundaries. 

Also read: Surviving COVID-19: How to adapt your digital marketing strategy amidst a global crisis

As more and more companies start their journeys in digital transformation, employee experience is delivered through digitalised systems and processes. This will determine the success of employee engagement and elevate their productivity. 

The digital workforce experience is likely to become the new norm for many companies, as HR and tech teams strive to streamline digital systems and experiences. Therefore, it might be wise to adopt a mindset of “digital first” in a post-COVID-19 world, leveraging on the Fortitude budget to invest in platforms that allow a stress-free digital workforce experience.

Mindset shift #3: Towards a growth mindset

According to a recent 2020 research by Rohei, there are five broad reasons why employees resist new digital processes: 

  • Lack of understanding of the context — “Why are we going digital?”
  • Inadequate skills development design— “I haven’t been taught this, what should I do?”
  • Insufficient alignment and support–” I’m already so busy, why do I need to learn this?”
  • Fear of loss of identity–” Am I going to be made redundant by younger staff/ bots?”
  • Having a fixed mindset — “Everything keeps changing, I’m too old for this.”

In the past three months, many of us had been forced to learn digital tools because we were unable to work remotely otherwise. In other words, we confronted our fears regarding all things digital because we had to. We googled, experimented, and found that it wasn’t so intimidating after all. 

This is why a growth mindset is so crucial to success in digital transformation.

A growth mindset towards digital transformation also creates a space for creativity and collaboration. I have been particularly impressed by the “Trace Together” app, which the Ministry of Health, GovTech, and SGUnited came up with using Bluetooth technology. This application is designed to help facilitate community-driven contact tracing in the event of contact with an infected person. And because the software source code is open-sourced, collaboration can take place across borders

There are other examples of creative collaboration in Japan, fuelled by a strong growth mindset as well. At the start of the year, developers in Japan kickstarted a COVID-19 specific GitHub page and submitted pull requests to supplement information provided by the official government pages. Verified community news was then posted on the associated COVID-19 landing page

Similarly, companies can also encourage an environment where talented people can come together to find creative ways to solve problems, and not be afraid of failure. 

In the book On the Origin of Species, Charles Darwin wrote, “it is not the most intellectual of the species that survives; nor is it the strongest, but the one that is most adaptable to the changing environment in which it finds itself.” 

Indeed, we live in truly unprecedented times. Yet, we can still focus on what we can control– our mindsets. The post-COVID-19 world will look vastly different from the world we used to know. Let’s choose to make the rest of 2020 a year of transition by embracing digital transformation. 

Register for our next webinar: How to keep your customers happy?

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