Singapore-based online language learning platform LingoAce has received a US$7 million Series A funding from Shunwei Capital, a VC fund co-founded by Xiaomi co-founder Lei Jun.

LingoAce CEO and founder Hugh Yao said that the company will focus the funding to expand its operations in Southeast Asia with Indonesia as its first entrance.

According to Tech In Asia‘s report, before this round of funding, LingoAce had earned US$3 million prior to a pre-series A round with Decent Capital last year. In 2018, it also received an angel round.

LingoAce’s main audiences are students aged between six and 15, helping them to learn Mandarin online with nearly 1,000 native speakers teaching from China. Currently, its platform claimed to serve more than 10,000 students across Asia, North America, and Europe.

Also Read: Edtech requires certain distinct help that’s different from other verticals: StormBreaker’s Pat Thitipattakul

Next in the pipeline, LingoAce plans to develop technologies such as AI, augmented reality, and virtual reality to adjust with the demand for online learning adoption with COVID-19 pandemic.

Similar to LingoAce, Indonesia has Cakap, an online language course that provides virtual learnings for Japanese, Mandarin, English, and Indonesian, allowing users to access courses with professional teachers and on-demand time schedule. Cakap was founded in 2014 with the initial name Squline, before rebranding to the current name last year.

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Picture Credit: LingoAce

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KiotViet Deputy GM Tri Cao (R) with Tony Ng, Co-founder and Deputy Director of Citigo Software (parent of KiotViet)

Vietnam is any tech startup’s dream market.

This Southeast Asian country has a population of over 96 million, of which 64 million are connected to the Internet, and has a smartphone penetration of 70 per cent.

There are approximately 1.9 million brick-and-mortar retail shops in Vietnam, of which only 10 per cent are into modern trade. Digitisation of retail sector is growing.

Home-grown IT company Citigo Software anticipated this opportunity early on and launched a cloud-based point-of-sale (POS) system KiotViet in 2014. Since then, it has expanded its services to provide a suite of omni-channel business and management solutions aimed at micro, small and medium enterprises (MSMEs).

At present, KiotViet has over 1,000 employees, covering 63 provinces and cities in Vietnam, with 19 sales offices.

In August last year, the startup raised US$6 million in Series A funding from Jungle Ventures and Traveloka.

KiotViet is one of the few companies that went on to exploiting the COVID-19 pandemic to drive business digitisation in Vietnam.

In this interview, the startup’s Deputy General Director Tri Cao talks about the digitisation drive in Vietnam, the impact of the pandemic, and the broader B2B e-commerce market.

Excerpts:

The COVID-19 pandemic has forced many offline businesses to go digital around the wold. Do you see a trend picking up in Vietnam as well?

The pandemic has changed consumer behaviour and how traditional businesses carry out their operations in Vietnam.

With social distancing measures in place, the drop in sales has been a catalyst for change among traditional retailers to move from their usual offline channels to online platforms, such as e-commerce marketplaces and social commerce.

Also Read: Southeast Asia is home to the next big B2B tech companies, says Qualgro Partners

We are seeing companies and consumers leapfrogging ahead in many aspects of digital transformation in Vietnam. Suddenly ‘nice-to-haves’ — like being able to buy groceries online or even supply chain digitisation — have become ‘must-haves’.

Increased number of consumers turning to online platforms for their needs has made digital transformation a priority for businesses, mostly SMEs.

With a population of over 96 million, Vietnam is well-connected to the world, with 64 million Internet users, 143 million mobile subscriptions and 70 per cent of smartphone penetration.

Vietnam’s modern retail industry has the potential for significant growth as shops start to integrate technology into daily retail operations. We have observed a growing interest in going digital and the modernisation of the retail sector which has been driven mostly by the next wave of young and hungry entrepreneurs.

More often than not, these entrepreneurs who have taken the reins of their family businesses or have launched their startups are increasingly conscious of the importance of technological application in daily business management.

Moreover, the Vietnamese government is supporting digital transformation in all sectors, including MSMEs and households. Customers who were afraid of applying technology to management have changed their behaviour.

Retail store owners are increasingly using technology for their sales management, developing new sales channels and starting to use software to manage costs and optimise business operations.

How well equipped are you to exploit this opportunity?

Digitisation is no longer an option but a necessity. Going digital has now become essential to remain relevant and stay connected as the world is emerging out of the pandemic.

At KiotViet, we have over 1,000 employees, covering 63 provinces and cities in Vietnam, with 19 sales offices. We have our sales and customer service personnel present in the deepest of pockets and smallest of towns.

To date, KiotViet has been adopted by 100,000 stores in Vietnam and has 50 per cent market share.

There are approximately 1.9 million retail shops in Vietnam. However, only 10 per cent are in modern trade and 65 per cent of the country is rural.

Our main barrier is the status quo. Many family-owned small business owners have been running their businesses using traditional book-keeping processes for decades. This is a time-consuming and resource-intensive process.

We have seen the daily struggles of business owners managing their retail business with limited to no technology. However, with the new generation taking over in those businesses, we are seeing a marked difference in the approach and they are more willing to adopt the technology.

KiotViet has overcome this barrier through a customer-first approach, generating trials through an affordable pricing model and providing excellent customer service. We have an easy-to-use affordable product where we ensure that every customer feedback is addressed.

They see how technological advancement provides them with a competitive edge over international companies in Vietnam and reach a bigger consumer base.

For example with KiotViet, our consumers see that they can reduce their operating costs by 40-50 per cent, increase efficiency and grow faster by reaching more consumers.

Which sectors do you see a growing interest to go digital?

We continue to see SMEs across the spectrum going digital. Our customer profile continues to be clothing and apparel, groceries, F&B and electronics.

The majority are small shops with three to ten employees. We have observed a growing interest in going digital and the modernisation of the retail sector, which has been driven mostly by the next wave of young and hungry entrepreneurs.

More often than not, these entrepreneurs, who have taken the reins of their family businesses or have launched their own startups, are increasingly conscious of the importance of technological application in daily business management.

What are the different services you provide to your clients?

Here at KiotViet, we offer an end-to-end solution — from software and hardware, to added third-party services for MSMEs. We provide clients with an affordable cloud-based POS and store management software.

Our omnichannel management software solutions include services such as inventory management, cash flow management and marketing, as well as both online and offline enterprise solutions.

We also leverage technology to help support SMEs to realize untapped opportunities and help increase the efficiency of their business operations and workflow processes.

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

Our KiotViet+ services provide our clients with added integration with third-party providers, such as e-commerce marketplaces, shipping providers and social networks so they can market and sell their products more efficiently.

What is the size of your target market? How is the market growing and where is it heading for? Do you have any local or international competitors?

As I mentioned earlier, Vietnam has approximately 1.9 million retail stores, and the retail sector is the country’s fastest-growing market.

The sector has recorded a compounded annual growth rate of 10.97 per cent and annual retail sales of US$142 billion in 2018. Under 10 per cent is Modern Trade, and 65 per cent of the country is rural.

So the 1.7 million traditional brick and mortar retail stores will still be the foundation of Vietnam retail for a long long time.

There is a rising preference for online retail and social commerce among young consumers in both the major cities as well as rural areas, from apparel to electronics and SMEs have to keep up and digitise faster to keep up with the changing trends, or else will lose out to larger players.

There are more than 20 POS providers in Vietnam but none of them has the coverage, product superiority or customer support as KiotViet does.

Traveloka is one of your investor. Is it a strategic investor? What synergy do you see with this Indonesian travel-tech firm?

Yes, Traveloka is a strategic investor in KiotViet.

One of KiotViet’s main goals is to become the market leader of business store management software in Vietnam, and we believe that with Traveloka we can achieve that.

Traveloka, I assume, means ‘travel local’ and that means providing travellers with local experiences. Through Traveloka, we partner with small businesses such as F&B outlets, salons, spas and hotels, to enhance the travellers’ retail experience in Vietnam.

This partnership benefits the SME business owners by enhancing their customer experience, while travellers enjoy a more seamless and secure way of making their purchases.

At the time of the fundraise, you said you would collaborate with more ecosystem players and explore future regional expansion…

Our strategy continues to be to focus on Vietnam and in time, expand to other parts of Southeast Asia. At the moment, there are many Vietnamese merchants using our products in countries with a Vietnamese community, such as the US, South Korea, Australia, Laos and Cambodia.

We are also exploring the opportunity to open offices in select Southeast Asia for testing the market before scale up to other countries.

Do you expect to raise more funds to catch up with the growing demand?

Since our Series A fundraising round, we have been channelising and using the capital to increase our market share and focus on the development of our value-added services, such as logistics, payments and B2B supply chain.

On the back of the growth the organisation has seen over the last few years, we would be looking to raise our next funding round. We hope to start the process before the end of the year.

Image Credit: KiotViet

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Thai incubator SPACE-F launches programme for global foodtech startups

Bangkok based incubator SPACE-F today announced the launch of its programme for global foodtech startups, according to Greenqueen.

Founding partners Thai Union, National Innovation Agency of Thailand, and Mahidol University are pooling funds and industry resources to give each startup US$4,750 to US$12,600 in grants, along with access to an extensive network of VC firms and potential corporate partners.

SPACE-F will also be supporting international applicants by providing them with a special visa to register their business in the country.

The application will be open until July 12.

SMU calls on startups to apply for contest to inspire post-COVID-19 world solutions

The Singapore Management University is looking to invest around US$30,000 in a startup that comes out top in the Lee Kuan Yew Global Business Plan Competition (LKYGBPC) Edition.

The contest will centre around finding innovative ideas and solutions that will help cities, businesses and communities adapt and thrive post-COVID-19.

“The COVID-19 pandemic has brought about unprecedented challenges to individuals and societies, but it has also presented us with opportunities to rethink our way of life and livelihood and to create solutions for the post-COVID world,” said HAU Koh Foo, Director of SMU IIE.

Also Read: Our main barrier to growth is status quo in retail sector: KiotViets Deputy GM Tri Cao

The contest will be open for student founders, and early-stage startups globally and the applications will be closed on July 15 2020.

India’s Jio receives US$1.2B from Abu Dhabi’s Mubadala

India’s Jio under Reliance Industries has received US$1.2 billion investment from Abu Dhabi-based sovereign investor Mubadala Investment Company, according to The Economic Times.

“I am delighted that Mubadala, one of the most astute and transformational global growth investors has decided to partner us in our journey to propel India’s digital growth towards becoming a leading digital nation in the world,” said Mukesh Ambani, MD, Reliance Industries.

Recently, Jio has received investments from a string of investors, including  Facebook and KKR.

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Image Credit:  Pineapple Supply Co.

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This time last year, we would all have been busy organising and attending various events and conferences. We’re pretty sure that was the plan for this year as well. Then the pandemic happened, everything changed, and now everything is via webinars or podcasts.

It was the obvious route to take, but even so, transitioning to digital events is not as easy as it may seem. Especially since everyone is doing it now.

This was the situation that Open Circles found themselves in. Known for creating thought-provoking environments and experiences, Open Circles made the tough decision of postponing their annual retreat.

“We were experimenting various ways to pivot,” said Joshua Yap, CEO of Open Circles. “For myself, I felt that though we may not be able to generate as high of revenue as previous years, we need to at least continue our mission to champion positive change around the world.”

Watch: OC27 Episode 1 – Stream wars: The rise of livestreaming

The obvious way is the popular way, which is to begin producing webinars. But as Yap began joining webinars, he ended up becoming fatigued because most of them tend to be a bit stuffy and too formal.

“It doesn’t help that I have a very short attention span,” he said. “I started researching for webinars or channels that were educating and fun to watch at the same time – which then hit me that there weren’t many shows that did that.”

Yap wanted to create a webinar that is fun, light hearted and enjoyable to watch, without compromising the quality of content. With that, OC27 Live Stream Talk Show was born.

A twist to the usual

There is no shortage of webinars now; how will OC27 stand out?

“We needed to have topics that were extremely interesting and strong speakers that other people may not have access to,” said Yap.

The first three episodes definitely fall into that description. Each one tackled a different topic and featured big names like Twitch co-founder Kevin Lin, desserts superstar Janice Wong, and Theranos whistleblower Erika Cheung.

Watch: OC27 Episode 2 – Setting the bar: The pandemic pivot

The script is curated to keep the show fun and exciting, but also to dive deep on issues – even controversial ones – that need to be discussed.

For example, in the third episode, the question about how unethical CEOs can redeem themselves went into an examination of why unethical leaders are expected to, while whistleblowers are understood to have ended their careers already.

Watch: OC27 Episode 3 – Fake it till you break it

“Our hosts are very important as well,” Yap added. “Because the hosts act as the energy drivers of the show, maintaining a high energy conversation.”

That high energy conversation doesn’t begin and end with the hosts and guests. Since the show launched, it has gained a following that participated, asking thought-provoking and oftentimes difficult questions that helped take the discussions deeper.

Learn, have fun, and do good

Each episode of OC27 is in support of a chosen charity. One of the things the audience looks forward to is the activity that the hosts and guests participate in at the end of the episodes, where the loser donates to the charity. From peanut catching, dessert plating, and two truths and a lie, these end-of-episode contests have upped the fun factor, all while doing good. Which is exactly what the show is aiming for, according to Yap.

“The vision behind the show is to educate, inform, and inspire the audiences, through a fun and interactive livestream, encouraging our audiences to be better leaders, entrepreneurs and individuals.”

OC27 Live Stream Talk Show happens every Wednesdays, 9:30PM SGT.

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Disclosure: e27 is partnering with Open Circles to host and produce OC27.

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INTELLLEX, a legal-focussed knowledge management platform, has closed a US$2.1 million funding round led by Quest Ventures.

This round also welcomed participation from Thomson Reuters,​ ​Insignia Ventures,​ ​K3 Ventures, and a Singapore government-backed VC fund.

Other early backers of INTELLLEX, including Sim Wong Hoo (C​reative Technologies​), Tan Kim Seng and Jeffrey Khoo (3VS1), Kelvin Chan (Ex-Partners Group), and Chandra Mohan and Chong Chiet Ping (Early investors in Razer), also took part in the funding round.

Chang Zi Qian, Co-Founder and Co-CEO of INTELLLEX, said that the company plans to use the funding for the expansion of its services across the EU and the Asia Pacific, as well as for acceleration of its new product offerings.

In conjunction with the funding, Jeffrey Seah, Partner at Quest Ventures, will join the INTELLLEX board of directors.

Also Read: igloohome raises US$4M in Series A funding round led by Insignia Ventures Partners

“Professional Services firms ​traditionally create value in offering customised, knowledge-based services to clients. These services are derived from internal knowledge bases and advisory know-how accrued over the years.​ Today, clients are demanding more value at lower costs, and they look to Knowledge Management to remain competitive. Using the INTELLLEX platform, we provide Knowledge Assets that yield multiple and repeated values for our clients,” said Seah.

INTELLLEX is a pre-approved legal technology software vendor under the Singapore government’s “Tech-celerate For Law Programme”, that boasts a clientele that includes international and local law firms, government and regulatory institutions, corporate legal teams and legal content providers.

It converts its clients’ disparate knowledge assets into ready-to-use materials that can be readily accessed, through document categorisation automation and search acceleration.

“Our next product upgrade will explore applications beyond the legal industry to related knowledge-based industries like financial services regulation, corporate finance regulation, and tax,” said Co-Founder and Co-CEO, Ellery Sutanto.

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Image Credit: INTELLLEX

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Singapore-based human mobility and relocation company Moovaz today announed that it has signed an agreement with Singapore Press Holdings (SPH) to acquire its expat-focussed publication The Finder in May 2020. The company plans to add content for the purpose of community-building to its digital-first relocation service.

The acquisition will involve Moovaz taking over the running of the leading content brand’s assets, including The Finder’s quarterly print and digital magazines, The Finder Kids supplements, web content, social media content, and more in Singapore and Malaysia where it has a presence.

The Finder claimed to be the longest-running publication for expats in Singapore, providing more than 300,000 users with timely tips, ideas, and inspiration of what to do and buy and where to go in Singapore and around the region.

Moovaz just recently announced its US$7 million Series A funding round and has goals to expand The Finder’s reach to its own relocation clients and beyond.

Also Read: Logistics startup Moovaz raises US$7M Series A funding round led by Quest Ventures

The two brands will build an ecosystem of end-to-end logistic and lifestyle services, catered to the global-local consumer, as they relocate globally and settle into local communities.

On the new acquisition, Lee Junxian, Co-founder and CEO of Moovaz, said, “Global locals are a community of people with freedom imbued within their souls. What struck us the most about The Finder is how authentically its brand and content has resonated with this community for the past quarter of a century. We were drawn to its rich history as well as its colourful, unadulterated content.”

The Finder Editor-in-Chief Sara Lyle Bow will be moving with the brand to Moovaz as Director of The Finder and Head of Community.

In consideration for the acquisition of the Finder, SPH will become a shareholder of Moovaz and collaborate on the latter’s regional outreach efforts, utilising its media platforms.

The Finder and Moovaz will also host their first Expatpreneur eAwards in July 2020, to honour successful expat-owned businesses who help people live well in Singapore.

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Image Credit: Moovaz

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Vertex Ventures invest US$5M in India-based fertility platform IVF Access

Bangalore-based fertility platform IVF Access has secured US$5 million Series A funding from Vertex Ventures SEA & India. With the investment, the VC firm’s Managing Partner, Ben Mathias, will be joining the board of IVF Access.

According to Your Story, IVF Access plans to use this funding to set up IVF clinics across India that provide assisted reproductive treatments, enabled by a proprietary IT platform.

Naresh Rao, Co-founder and CEO of IVF Access, shared, “When it comes to IVF, access is everything. IVF Access will increase the reach of such fertility treatments through a chain of clinics in India, where couples trying to conceive will have access to both technology and medical expertise.”

Indian building automation startup Hipla raises US$344K funding to accelerate its Singapore-based solutions ContaTrack.ai

Office automation software provider Hipla Technologies Pte Ltd has secured US$344,000 in funding from angel investors that the company claimed to be wealthy individuals from India and Singapore, including Mousumi Ghosh, the founder-director of Kolkata-based Future Medical and Research Trust, and Ang Hiap Chee, a Singapore-based early-stage investor in logistics companies.

According to VC Circle, the fresh funding the firm received will be used to support and accelerate Singapore-based Hipla Technologies’ new solution ContaTrack.ai, and to grow its products in the office automation space.

Also Read: Vertex Venture Holdings launches a US$290 million venture capital fund for technology firms in SEA

Sandeep Kaul, CEO at Hipla Technologies, explained that ContaTrack.ai provides AI-based computer vision to notify individuals when they are about to commit a safe-distancing breach.

Lucence launches Singapore’s Ministry of Health-approved clinical testing service

Singapore-based startup Lucence Diagnostics has attained approval from the Ministry of Health Singapore to launch SARS-CoV-2 RNA RT-PCR clinical testing service in an effort to support Singapore’s COVID-19 fights. The clinical testing service is also validated by the European QCMD (Quality Control of Molecular Diagnostics).

According to Biospectrum Asia, the SARS-CoV-2 RNA RT-PCR test is a diagnostic test intended to support COVID-19 diagnosis and disease monitoring by targeting specifically the SARS-CoV-2 RNA virus.

Lucence’s project has achieved full concordance with the QCMD 2020 Coronavirus Outbreak Preparedness (CVOP) EQA Pilot Scheme.

Singapore’s Antsomi launches software to help businesses transform into data-based companies

Based in Singapore, AI-enabled customer data platform Antsomi CDP 365 has launched an AI-driven marketing technology to assist businesses to transform into data-driven companies.

Antsomi was founded by former Malaysian Digital Association president and CtrlShift Malaysia head Serm Teck Choon and a Vietnamese technopreneur and the founder of digital company Ants Programmatic, Dinh Le Dat.

Antsomi CDP 365 seeks to address problems of overwhelming, confusing, and time-consuming customers’ data management, which is done by empowering companies to automate the consolidation of data to better understand their customers’ behaviour that results in action taken accordingly.

Also Read: To fulfill its goal to improve biopsy process, medtech startup Lucence raises US$20M in Series A

According to Malay Mail, the software’s AI engines unify all existing customer data from multiple sources, including mobile, web, social media, offline channels, customer relationship management, and more. The approach is expected to enable business operators, in industries such as retail, e-commerce, and the media, to use personalised individual customer profiles generated by this software to gain a better insight into their customers’ preferences.

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Temasek, others invest US$28.5M in UK-based Tropic Biosciences

Singaporean government-owned Temasek has led a US$28.5 million Series B funding round in UK-based biotech company Tropic Biosciences, according to TheBusinessTimes.

Other backers include Sumitomo Europe, Genoa Ventures, Agronomics and Skyviews Life Science.

Tropic utilises gene-editing techniques to develop high-performing commercial tropical crops, which foster grower well-being and maintains the plant’s nutritional benefits.

“These massive crops currently face a wide range of critical challenges, from diseases and pests to climate change. Tropic is working closely with growers to address these major issues and, in doing so, promotes consumer well-being and positive grower economics, while increasing crop stability and addressing unmet nutritional needs,” the company said in a statement.

Temasek’s makes longer-term investments in telecom, financial services, transportation, real estate, life sciences, agriculture, energy and resources.

Singapore’s car-sharing platform Smove shuts down

Car sharing platform Smove said today it has filed for liquidation after it failed to cover its operating cost, according to Vulcan Post.

Quoting a Facebook post from Smove, the publication said the government had requested the firm “to cease operations because they were no longer deemed an essential service during the extended COVID-19 circuit breaker”.

The Singapore-headquartered firm was launched in 2013 as an hourly car-rental company, with a team of four members. The startup had reportedly been facing cashflow problems previously as well.

Also Read: Relocation startup Moovaz acquires SPH’s The Finder to build its digital community

The company, however, remains optimistic about the future and has commented that “it will wait on the government’s instructions in regards to future operation,”.

Microsoft launches programme to bolster the growth of agritech startups in India

Microsoft has announced the launch of “The Microsoft for Agritech Startups program” in India, according to The Tribune.

Agritech startups selected for the programme will be provided with business resources and technological support like Azure and FarmBeats without investing in deep data resources.

“The Microsoft for Agritech Startups programme is among the early steps in our journey towards empowering these startups in India and transforming global agricultural practices,” said Sangeeta Bavi Director of Startup Ecosystem, Microsoft India.

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Image Credit: Henry Be

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In a recent webinar with e27, Wanying Zhang, Investment Managers at Qualgro Partners, explains how the firm’s portfolio companies are doing relatively well in times of COVID-19 pandemic –and that their investment focus on B2B startups has something to do with it.

“Part of the reasons why our portfolio companies are doing relatively well is that we tend to be B2B-focussed. They tend to be less impacted by the current COVID-19 situation. Most of our companies still have 12-18 months left in their runway. So far, in our 25 portfolio companies, we have no write-ups,” she says.

While she acknowledged that a number of them have to readjust growth plan or team structure to reserve cash and extend the runway, for the rest of them, the VC firm actually advised them to seize the opportunities.

“Interestingly, for some of our companies, sometimes we suggest them to not to be overly conservative, especially when there are good fundamentals in the business. Because this is the time for them to leverage the opportunity and grow if they have the capacity to do so,” Zhang continues.

Beyond the region

Based in Singapore, Qualgro was founded by Heang Chhor, a French-Cambodian serial entrepreneur who also had a background in business consultancy.

The firm invests in Series A-B stages companies in Southeast Asia (SEA), Australia, and New Zealand, with a specific focus on B2B companies.

Also Read: Morning News Roundup: HR tech startup EngageRocket secures US$3M in Series A funding led by Qualgro

Last year, following their exit from Wavecell, Qualgro was even awarded “Exit of the Year” by the Singapore Venture Capital & Equity Association (SVCA).

“Back in 2015, we don’t think there were a lot of investors that focussed on the B2B sector. There weren’t that many B2B startups as well. But we do think this region has a great potential to produce international B2B tech companies that are just as good as those in Silicon Valley, China, or Europe,” says Zhang.

Qualgro launched its first fund of US$15 million in 2015; it has been fully deployed in 19 companies that included top names in the startup ecosystem such as Patsnap, Shopback, and Wavecell.

In a separate interview with e27, manager Minh Vu Hong says that the firm is currently fundraising for its second fund and is looking to make final close “soon.”

“We already made six investments from this fund,” he says.

Echoing the statement that Zhang said during the webinar, Hong stresses on the firm’s focus on startups with the potential to go regional and even global.

Also Read: Qualgro makes first close of US$100M second fund, will continue to invest in B2B services

An example of Qualgro’s global perspective is its foray to European startup scene through US$11.2 million Series A investment in Pazzi, a French robotics food tech startup.

“What we have as a thesis is that there are strong similarities between Europe and SEA. It’s a one-economy region that is fragmented into different markets. It goes both ways; we can invest in European companies that want to enter SEA, and we can invest in SEA companies that have the potential to become, at least, a regional player,” Hong explains.

In search of the right one

During the webinar, Zhang also took the time to give advice for startups on fundraising.

Apart from the potential to go regional and even global, Qualgro is also looking for startups with a sustainable competitive advantage and a clear path to profitability.

“Most founders are already familiar with the list of things to check when pitching to a VC in general, but for us, we noticed two things: Sometimes, some founders can be a little defensive during idea brainstorming … We just want to see whether the founders really understand market trends and the potential risks. Also, we just want to see whether we are in a position to add value. We really hope to have an open and collaborative discussion,” Zhang elaborates.

For the future, Qualgro aims to focus on investing in early stage startups in the region, with a particular focus in Vietnam.

The firm sources their potential investments through various channels, from an in-house developed tool used to screen the market to referrals from other VCs or accelerators and partners such as the e27 Pro membership programme, which Qualgro is a member of.

Missed the webinar? Check out the video here:

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In a world mired in the chaos brought about by the COVID-19 pandemic, a transition to a more digital way of life seems to be inevitable in many aspects of life, not least the banking and financial services sectors. In fact, a digital banking revolution is already underway in many countries across the Asia Pacific region, and those countries that have been a little slower off the mark will soon be forced to catch up.

If COVID-19 has shown us anything, it’s that the future is digital. What’s a little less clear, however, is whether banks and financial institutions across the Asia Pacific region are ready to capitalise on the enormous opportunities this new age will present.

In the banking world, the need for a truly agile approach has never been higher. Senior leaders across a range of financial institutions in the Asia Pacific are facing a serious challenge right now as they grapple with the best ways to enhance their core banking systems so that they align more effectively with a ‘cloud-native’ world.

At Mambu, we’ve identified four pathways that legacy banks can take as the digital revolution takes hold.

Option 1: Wait and see – AKA do nothing

Many legacy banks have hundreds of years of history, and equally ancient core banking systems, processes and ways of servicing customers in place. But for now, it works, so why change it? This approach sees incumbents sit back and wait for the dust to settle as the new wave of fintech and challengers fight amongst themselves for primacy in the digital space.

However, this approach assumes that there will be a place for non-digital banks in a digital world moving forward … an assumption inherent with risk. In fact, McKinsey & Co. states that legacy financial institutions that ‘fail to evolve digitally’ could see profits fall by up to 60 per cent by 2025.

Also Read: Is Japan ready for the digital banking revolution?

Option 2: Invest in a challenger

It sounds like a good idea, right? Maintain the legacy bank’s status quo as a trustworthy and reliable brick and mortar institution, while purchasing one of the fresh-faced new fintech challengers that are taking off. But does the legacy bank have the funds available to make a worthwhile purchase, and the human resources to make it happen?

And what about the inevitable culture clashes that will occur between an upstart challenger and an established bank with, shall we say, less than modern ways of thinking?

While it may seem like a good idea on the surface, the integration and micromanagement required in a situation such as this are often extremely complex and fraught with risk.

Option 3: Knockdown, rebuild

This path sees the legacy bank undertake a complete swap out of its ageing systems with new and improved core banking tech. But at what cost? This ‘all or nothing’ approach is an incredibly high risk, potentially gambling the entire business on successful implementation.

What if it fails? We don’t have to look very far afield to find examples of total disasters of the ‘rip and replace’ approach – in the UK, both the Co-operative Bank and TSB lost hundreds of millions of pounds and took a serious reputational hit thanks to their failed implementations of new core banking systems.

Also Read: Will the new digital banks sound the death knell for traditional banks?

Option 4: Evolve and augment

This final pathway is what Mambu recommends as the ‘gold star’ approach to digital transformation. It sees legacy banks evolve progressively, changing systems over time, with less upheaval on the organisation, and minimal disruption for the end-user.

Instead of implementing a wide-scale ‘knockdown, rebuild’ of entire systems, individual systems are targeted for transformation with pinpoint precision. Taking what is known as a ‘composable banking’ approach allows legacy banks to invest in lean, flexible technology that can enable a faster response to changing market dynamics, while also encouraging greater innovation as the bank moves into the cloud in a staged response.

This approach also comes with an inherently lower risk, by maintaining control of the legacy infrastructure while new systems are introduced.

What is ‘composable banking’?

In a composable banking approach, functions are separated to allow for the rapid and flexible assembly of independent, best-for-purpose systems, which allows legacy banks to truly adapt, react and thrive in the new era of digital banking.

Composable banking relies on open banking, APIs and plug and play connectivity to quickly and efficiently add new technology, enabling a rapid transformation that would otherwise not be possible. New product launches or pivoting into different services areas become quick and simple exercises, and banks can maximise their chances of delivering optimal customer experiences and meeting their business objectives while minimising risk and cost.

Also Read: 5 key trends in banking for 2020 and beyond

Composable banks are built to change, which is undoubtedly essential for a business’s longevity as we head into what looks to be the most disruptive market environment the banking and financial services sector has ever seen. Adapting to change used to be a bank’s biggest liability. Now it can be its biggest asset.

To find out more about how incumbent banks can navigate a path to success in the fintech era, download Mambu’s white paper today: Core banking in a cloud world.

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