They may be set for one of the biggest IPOs investors have seen over recent years, but TikTok owners ByteDance have been forced to shelve their preparations for their initial public offering due to the choppy regulatory waters put in place within China.

ByteDance seemingly cemented its intentions by launching a recent share buyback for current and former employees. The buyback comes after the company announced in April that it had no imminent plans for a public listing.

This represents a full reversal after ByteDance had initially planned to list some of its Chinese businesses, including Douyin, a Chinese equivalent to leading social media app TikTok, in Hong Kong, according to Reuters.

To add further uncertainty to the immediate future of ByteDance, the company founder and CEO, Zhang Yiming surprised stakeholders by announcing that he’s stepping down from the company in the wake of increased state scrutiny over China’s leading tech firms.

As we can see from the chart above, ByteDance is one of the world’s leading companies when it comes to generating advertising revenue, attracting twice as much money as YouTube for ad sales over the span of 12 months.

In fact, ByteDance’s performance has become such a leader in the Asian tech landscape that the South China Morning Post estimated in April 2021 that the company was on course for a US$400 billion valuation.

However, in a recent company-wide email, ByteDance confirmed that eligible shareholders can apply to sell their holdings by the June 20 at US$126 per share for current employees and US$100.80 per share for former employees. This represents a significant increase on a November buyback that was US$60 a share.

The delay in going public will undoubtedly be cause for frustration with ByteDance as the global IPO market undergoes a boom period that’s been punctuated by widespread investor optimism- particularly for tech companies.

Also Read: How founder-CEOs can setup their startup for a successful IPO

Regulatory hurdles in the East and West

One of the biggest hurdles that ByteDance will need to overcome in order to revive its listing plans revolves around appeasing investors in both the US and China. According to reports, the company has failed to work out a way of restructuring its business operations in a way to meet the regulatory requirements of both the US and China.

Notably, the fact that TikTok and Douyin operate using the same algorithm means that it’s been difficult for ByteDance to separate the operations of both apps.

In the wake of ByteDance’s founder and CEO stepping down, one source told the South China Morning Post that “many people with different agendas are trying to have a say in the IPO plan.”

Because of ByteDance’s global outlook, the company’s ambitions to appeal to US investors has been difficult to make functional as the relationship between the US and China becomes increasingly strained.

Beyond the difficult relationship between the US and China, ByteDance may also be required to navigate the increasingly restrictive IPO rules that have recently been set out by China. In a recent bid to protect against stock market volatility, the country’s securities regulator announced draft rules in a bid to boost the transparency of its IPO listings.

As part of the IPO process in China, a sponsorship system has been developed where third parties act in a similar way to underwriters to assess risks, detail competitive advantages, profitability and business plans pertaining to firms looking to go public.

When a firm is accepted by a sponsor it’s thoroughly scrutinised and may even be restructured based on subsequent recommendations, however, the final decision as to whether the business is in a position to go public is still down to the securities regulator, known as the China Securities Regulatory Commission.

Some of the more restrictive requirements detailed in the draft include more in-depth interactions between sponsors and their clients, transparent financial reporting and the threat of shutdowns for uncooperative sponsors.

Capitalising on the IPO boom

It’s likely that ByteDance would have identified the current IPO climate as an ideal backdrop for its flotation.

With investor confidence growing after the pandemic, and social distancing measures making for an extremely profitable 12 months for tech-based companies, recent IPO listings have grown significantly.

As the data above shows, global IPO proceeds in Q1 of 2021 have dwarfed every other opening quarter for the past decade, paving the way for a record-breaking year for companies going public.

Also Read: Ecosystem Roundup: Grab’s SPAC deal and SEA startups’ IPO aspirations

According to Maxim Manturov, head of investment research at Freedom Finance Europe, the pandemic inadvertently brought far more confidence to the investment market. “People in the US traded about 90 per cent more stocks than the week before they received their stimulation funds,” Manturov explained.

“Finally, a survey by Deutsche Bank, which included 430 retail investors, showed that the respondents were going to invest, on average, 37 per cent of all their stimulation money into stocks. Goldman Sachs recently raised its expectations for stock demand by retail investors in 2021, from US$100 billion to US$350 billion.”

After such a successful year for apps like TikTok, and a resounding rise in the revenue generated through IPOs in early 2021, it seemed like an appropriate time for ByteDance to go public.

Although regulatory hurdles may have pushed an IPO out of the hands of the company, it’s still reasonable to believe that when the choppy waters are cleared and tensions between the US and China dissipate, we could still be on for a mammoth initial public offering.

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You only have to log onto your social media channels to know that in June the world celebrates LGBT Pride. Year on year, it’s become an increasingly common sight for brands to change the colour of their logo to the iconic rainbow flag that has been the global symbol of the LGBTQ+ community since it was devised by Gilbert Baker in 1979.

These acts definitely help to create awareness and support, but is it enough? Is this rainbow slapping tokenistic, or a real show of support for the LGBTQ+ community? I’m always intrigued to see what else businesses are doing when you scratch below the surface to champion this community.

And I really hope that businesses are not only doing more but that it extends year-round, not just for the month of June. Pride, along with every intersectionality, should be socially accepted so that we don’t need a month to celebrate it. 

I’m not part of the LGBTQ+ community. This means I will never fully be able to appreciate the challenges this community faces and the discrimination they frequently feel. I am a proud ally and a leader, so I have a responsibility to continually challenge the status quo.

Diversity is embedded in my company’s DNA; our founder Steve is part of the LGBTQ+ community, so when the band’s frontman is leading the chant, it’s very easy for the rest of the team to pick up an instrument and play to the beat.

Great leadership means developing a culture that celebrates individuality, and when you have leaders who represent it we can attract diverse talent.

We know that we need role models to help break down the barriers of entry and for people to see leaders with who they can identify with. It’s like a snowball effect as diversity leads to more diversity. Here are three initiatives from my agency that have helped drive great inclusion at distillery. 

Also Read: From our community: Pride Month special, Haulio founder on disruption in logistics, and more

Diversity means being diverse

Having so many backgrounds and beliefs in the team is amazing when it comes to creative brainstorms or trying to find solutions to client problems or briefs. Different perspectives birth ideas that you could never achieve if the team were all cut from the same cloth. This is especially important in APAC where we have such a diverse melting pot of people.

If you have someone in your team that comes from that country, is embedded in that culture, or has similar values to the target audience, they can act as a fantastic sounding board for what will work, and what won’t. We use this logic whether we’re walking (or Zooming) into a New Business meeting, or delivering a multimedia campaign. 

Everyone has to get stuck in

But our team doesn’t have all the answers; no one does. Diversity is a continual journey of exploration, so it’s important that we fuel debate and education amongst our employees. We recently ran an initiative called the Diversity Type Project to promote diversity in the creative industry.

Whilst every team member at the distillery was involved, we had to engage a range of people from different organisations and bodies that could add value and experience to the narrative. We knew we didn’t have all the answers, but by asking for input from the people we’re trying to speak to, we were able to find the right direction.

I find that a lot of brands and businesses aren’t sure what to say, or they are worried about getting criticised, so they don’t say anything at all. But by staying quiet, you’re not helping either.

What is amazing about diversity is that it brings diverse opinions. And you can’t, and won’t, please everyone. But as is human nature, we learn and evolve by giving it a go.  

We learn from others to create a community

We also actively surround ourselves with people and organisations that we can collaborate with or reach out to when we want to broaden our thinking. Steve (our founder) and Lucy (our strategy director) sit on the board of ‘Outvertising’; a not-for-profit focussed on making advertising more LGBTQ+ inclusive.

We partner with the Diversity Standards Collective, which gives us guidance on how brands communicate with specific communities. We also have a number of allies from the creative industry who are part of different communities that we consult when we need a specific opinion.

Also Read: 5 handy tips to create a diverse and inclusive workplace culture

We also bring these people into our business to run education sessions, feature on our podcast, or share work that they have created. All of our staff have access to this, and we encourage everyone to get involved. 

The acceptance of the LGBTQ+ community is growing in momentum across APAC, and it’s only a matter of time before nations like Singapore legalise same-sex relationships (it still blows my mind that I even have to write that).

Until then the least I can do as a business leader in APAC is be an active ally to the community.

I encourage everyone else to do whatever they can within their remit to break down the barriers and actively champion equality. It will make our work, society and workplaces much better when we embrace each other’s differences.

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(This article has been updated with the name of the investor)

OsakaKuma, a Singapore-based online beauty store that sells Japanese cosmetics, has announced that it has secured US$6 million from local investment company SEEINFRONT Capital in a pre-Series A round of financing from undisclosed investors.

This round brings the startup’s total funds raised to date to US$8 million and follows a US$2 million funding from undisclosed investors in 2020.

With its first store launched in Bugis+ in Singapore in September 2020, OsakaKuma has since opened three more outlets in Paya Lebar Quarter, Wisma Atria and Vivo City. Wisma Atria, the brand’s flagship store was opened in June 2021.

With the fresh funds, the company is set to open three new outlets across Singapore by July-end and has plans to open more outlets in the years to come. This is part of an effort to cater to more customers around the neighbourhood and to create more touchpoints for consumers.

Japan is known for being one of the dormant beasts of the beauty products industry, which has now awakened. Some even predict J-Beauty to be the next industry phenomenon in the US and worldwide.

OsakaKuma was founded in 2020 by Tony Wang with the goal of making it Singapore’s first beauty and personal care store that would offer a data-driven product selection of exclusive Japanese brands.

The company uses data from over 100,000 surveyed customers from 15 online stores worldwide to target consumer needs and demands so that solutions can be offered in a more precise way. 

Also Read: Social Bella snags US$56M to further expand its beauty-tech biz across SEA

By doing this, Wang believes that OsakaKuma can help people tackle their personal beauty issues in a much more effective and cost-efficient way. 

“While we see the trend has grown for e-commerce, we believe that many would still prefer to enjoy the physical shopping experience, having our in-store beauty curators to guide and help them,” he said.

Launched as an online-first store, the company now has four physical stores across the city-state. OsakaKuma has also spread its footprint in six countries, opened 15 online stores, and made over 1,000 Japanese single-brand products available to the rest of the world. 

Globally, the beauty industry is only getting stronger. Since the onset of the pandemic, there has been a growth in the skincare and personal care category as well as a growing demand for overseas beauty products since travel restrictions have made it hard for people to travel.  

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Image Credit: Osakakuma

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Southeast Asian car trading platform Carsome has acquired an equity stake in Indonesian offline car and motorcycle auction service company, PT Universal Collection (PT UC).

The details of the deal undisclosed.

Through this investment, Carsome intends to accelerate its automotive transaction volumes in Indonesia and expand its network coverage and access to financial and leasing providers.

The company’s dealer partners will also enjoy more inventory diversity and broader options through PT UC.

On the other hand, PT UC’s suppliers will be able to make use of Carsome’s wide demand pool to improve its customer base.

Additionally, Delly Nugraha, Country Head of Carsome Indonesia, has also been appointed as President Director of PT Universal Collection.

Commenting on the deal, he said, “We are really excited to invest in PT Universal Collection. This investment serves as a strategic move for Carsome to open up more opportunities and networks, and to significantly expand our operations in Indonesia, a key Southeast Asia market for Carsome.”

Also Read: Carsome closes US$50M Series C; aims to be operationally profitable by end-2020

“Through PT UC’s access to used car supplies in the market, Carsome’s dealer partners will enjoy more inventory diversity and broader options. PT UC’s suppliers, on the other hand, will be opened to a wider demand pool, broadening their accessibility in the used car market,” he added.

Founded in 2015, Carsome provides end-to-end solutions to consumers and used car dealers — from car inspection to ownership transfer to financing.

Every car that transacts on the platform goes through a comprehensive 175-point inspection, and every car purchase is backed up with an extended warranty and a money-back guarantee, it said in a statement.

The company continues to grow fast claiming to have an annualized revenue of US$800 million with plans to achieve US$1 billion this year.

Carsome is seeing dynamic growth across its Southeast Asian markets, particularly with rising demand for used cars as more consumers opt for private car ownership amid the COVID-19 pandemic.

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Image Credit: Carsome

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A quarter of full-time employees in Singapore reported feeling less connected to their company’s community while working remotely, a new study by Qualtrics has revealed.

They miss the spontaneous interactions with colleagues, exposure to different ideas, and simply being around others, said the survey, titled ‘The new rules of engagement: A better way to work in Southeast Asia’.

With two-thirds of organisations in the island nation still to announce their post-pandemic office plans, the study outlines the experiences employees want to see as their employers rethink and redesign the way teams work.

“Creating a culture of belonging is the top driver of employee engagement, as well as a positive influence on engagement, intent to stay, and wellbeing, meaning it is critical that initiatives focused on inclusivity and connectivity are an integral part of every organisation’s post-pandemic office plan,” said Steve Bennetts, Head of EX Growth & Strategy, Qualtrics.

Also Read: Being a remote-working tech-writer and father has taught me these things

“The challenge facing employers today as they develop their post-pandemic plans is equally as big as those last year. This is because as organisations drive toward a more flexible and hybrid future, it’s important to remember that to deliver an incredible experience they need to take into account and act on the diverse needs of every employee,” added Bennetts.

Key findings

1. The impact of hybrid work on employee wellbeing

While the number of Singaporean full-time employees say their personal wellbeing has declined during the pandemic — 15 per cent in May 2021 compared to 26 per cent in April 2020 — stress, anxiety, and concerns about job security continue to have an adverse effect on the workforce.

The characteristics of working remotely that people like least are often related to wellbeing: difficulties separating work and personal lives (45 per cent), a lack of social connection (45 per cent), difficulty collaborating (43 per cent), and feelings of isolation (32 per cent).

2.  Age and role impacts wellbeing and connectivity

Millennials and Gen Z workers were more likely to say they felt more connected to their company’s community, and that their mental health had improved compared to those from Gen X. Job type also impacted wellbeing and connectivity, with higher numbers of managers, team leaders, and c-level executives reporting improvements to their mental health compared to individual contributors and trainees.

Also Read: Does remote working really work?

In contrast, managers, leaders, and c-level executives were the least likely to feel connected compared to individual contributors and trainees.

3.  Improving wellbeing in the hybrid workplace

To better promote and cultivate wellbeing in the workplace, employees are calling on their employers to provide benefits such as wellness-related reimbursements (50 per cent), enforced working and non-working hours (42 per cent), wellbeing days (38 per cent), and free counselling sessions (25 per cent). Respondents identified flexible schedules, a better work-life balance, and relocation opportunities as the top three things they’ve enjoyed most in the way employers have operated during the pandemic.

4.  Improving productivity in the hybrid workplace

Collaboration, productivity, and task management software, along with phone and internet expenses, were listed as the top 5 tools and resources employees want to see offered by their employer when working remotely: team communication software (47 per cent), productivity software/tools (45 per cent), covering home internet and phone bills (39 per cent), task management tools (38 per cent), and work phone (37 per cent).

5.  While connectivity suffers productivity thrives

The majority of Singaporeans (65 per cent) indicated a strong preference for hybrid work models and flexible working hours, with 80 per cent saying working from home has enabled them to be equally or more productive as compared to pre-pandemic levels. This is due to fewer work interruptions, more control over their workspaces, and fewer in-person meetings.

Also Read: The beginning of the decentralised office — are you ready for a remote working future?

Similarly, more than three-quarters (78 per cent) of respondents reported that they perceive their co-workers to be more or equally efficient in the delivery of work-related tasks since working remotely.

6.  The impact of vaccines on a return to work

While half of the respondents said they are happy to return to the office when restrictions are lifted, 25 per cent said they won’t return until everyone is vaccinated and 25 per cent remain unsure. A significant portion of the workforce also believes employers have an important role to play in the vaccine rollout, including providing readily available information (39 per cent) and encouraging employees to be vaccinated (39 per cent).

In contrast, 32 per cent of respondents said employers should not get involved.

The data for this report comes from a study that Qualtrics conducted in May 2021. Using an online survey, Qualtrics collected data from 585 full-time employees in Singapore.

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Photo by Kristin Wilson on Unsplash

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