“I’ve not heard of a friend not having a SPAC”, I recall one of the speakers from Wall Street saying that in a conference earlier this year. The statement might come with a little exaggeration, but it did signal how hot SPACs (special purpose acquisition companies) were in 2020 and even hotter in 2021.

The pandemic does not seem to slow down the SPAC IPOs. SPAC IPO count increased by 320 per cent in 2020 followed by 46 per cent in 2021 as of July 3, 2021.

As of gross proceeds raised by SPAC IPOs, value increased by 513 per cent in 2020 followed by 34 per cent in 2021. As SPACs continue to gain popularity in the US, SPACs are turning their attention to foreign markets, especially the SEA region, for acquisition targets.

How do SPACs work anyway?

As indicated by its name, SPACs are blank check companies raising funds through IPOs to acquire private companies. Generally speaking, they are formed by experienced management teams or sponsors with some nominal capital invested.

The remaining interest of SPACs is held by public shareholders through the IPO processes of the SPACs shares. Each share offering will also come with a fraction of a warrant as well.

Also Read: The hidden danger in SPACs. Is the hype worth the risk?

Once the SPACs are formed, the rules governing them usually require the SPACs to identify firms they can merge with within two years otherwise the SPACs will be wound up and IPO proceeds would be returned to the investors.

Once the SPACs have identified target companies, their public shareholders may vote against the transaction and push the SPACs back to target searches, though in practice most SPACs come with major shareholders who can ensure the deal proceeds smoothly. Minor shareholders in this case can elect to redeem their shares.

This design helps SPACs to complete their mission within the 24-month timeframe but does leave some risks for future class actions against them. If the SPACs require additional funds for the merger, the SPACs may issue debt or additional shares (typically through PIPE) before the mergers.

Remember the reverse merger crisis?

SPACs are a form of a reverse merger. Looking at SPACs, It’s difficult not to think of the reverse merger crisis back in the 2000s. The streamlined process of the reverse merger and the access to US capital markets attracted more than 150 Chinese companies to this route from 2007 to early 2010 (PCAOB, 2011).

Many of these target companies were with the quality, but a more relaxed regulatory environment did leave some grey areas for certain issuers to commit fraud. Eventually, dozens of listed companies through reverse merger were either delisted or halted from trading based on claims of fraud or violations of US securities laws, and a number of others were targeted by short-sellers.

Also Read: The hidden danger in SPACs. Is the hype worth the risk?

According to PCAOB, billions of dollars of market capitalisation have been lost in the US capital market because of the crisis. Scrutiny was raised, confidence was lost, and law enforcement eventually stepped in (Marketwatch, 2016).

Risks associated with SPAC

Given the short timeframe granted to SPACs to complete the mergers alongside growing competition due to increasing numbers of SPACs in the US capital markets, SPAC sponsors might end up choosing targets not optimal for the shareholders. After all, we only have so many quality targets but there are many SPACs racing to close the deals.

So far, we have seen several failed SPAC deals. For example, after the merger with SPAC Landcadia Holdings, Waitrr, a food delivery platform, lost 96 per cent of its market value, replaced its CEO twice, and eventually faced being delisted from Nasdaq after trading below US$1 per share for 30 days.

On the other hand, Multiplan’s top customer UnitedHealth Group Inc. withdrew from the relationship to form its own competing unit shortly after Multiplan’s merger with SPAC Churchill Capital Corp. III. Multiplan, later on, became a target of short-seller Muddy Water (IFLR, 2021).

There are several other SPAC deals that turned sour, and Stanford Law School has tracked 25 securities class action filings against SPACs since 2019.

Mitigation of SPAC risks

Although there are some brutal failures of SPAC merger and a long list of securities class action filings, it’s best not to let availability heuristic mislead us plus the lawsuits may be in cases of pettifogging, for instance claiming that the SPAC sponsors have not disclosed sufficient information to minor shareholders to make judgment hence the choice to redeem SPAC shares could not serve its purpose.

However, there are in fact several measures and tools typically implemented in SPAC deals to address conflict of interests among sponsors, SPAC shareholders, and target shareholders. For instance, as in many suits brought by SPAC shareholders, the business judgment rule is usually unavailable as the sponsors receive part of the target company ownership after the merger deal.

The entire fairness standard on the other hand would incentivise SPAC sponsors to request fairness opinions from independent parties before proceeding with the deal (Baker Mckenzie, 2021). Secondly, the warrants attached to the SPAC shares will come with an exercise price higher than the issuance price of the SPAC shares.

It creates another layer of incentive, an enticing proposition for the SPAC sponsors to acquire quality targets at fair offers. Lastly, the SPAC sponsors’ founders’ shares and warrants are usually locked up for a certain period (typically one year but subject to negotiation at the inception of SPACs) starting from the date of Super 8-K filings.

Also Read: Carousell mulling US listing via SPAC merger at US$1.5B valuation: report

On the other hand, the targets’ shareholders are usually expected to sign a lock-up agreement before the merger as well, typically 180 days of lock-up from the closing date.

With most SPAC mergers we’ve seen so far resulting in the target shareholders owning more than 70 per cent of the merged company alongside the above measures, the interests among SPAC and target shareholders and SPAC sponsors are largely aligned.

All for all

SPACs are effective and streamlined tools to bring capital market access to private companies. But nothing in the world comes with only benefits if adopted too much and too often. With growing numbers of SPACs hunting for available targets, it is expected that more caution and mechanism will be exercised by the government and players to better safeguard the value of stakeholders.

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Since as early as 2014, Malaysia has been considered to be in the Top 10 states when it comes to cybersecurity, according to the Global Cybersecurity Index.

With the newest report released this past Tuesday, Malaysia came in at number eight out of 194 states in this year’s index, released by the International Telecoms Union (ITU)–  a United Nations agency.

Despite what many may initially think, the Asian nation has been a quiet leader in cybersecurity for quite some time, due to its policy infrastructure, which has been supported by an ongoing commitment to cybersecurity issues and maintaining a solid national strategy.

The critical national information infrastructure

Malaysia’s first cybersecurity policy dates back at least 15 years, giving rise to what is today’s Critical National Information Infrastructure – a portal for sharing information and a coordination and command centre that addresses the nation’s cybersecurity crises, evaluating threat levels on a regular basis.

One of the most appealing aspects of the country’s model is X-Maya, annual drills that are run to test the nation’s readiness and ability to address security incidents.

Also Read: 4 ways to protect your business from cybersecurity threats

While this isn’t necessarily unique to the Asian nation, the ongoing assessment and commitment to running these drills demonstrate the nation’s ability to continue growing its position as a cybersecurity leader.

Behind its No. 8 power ranking, Malaysia achieved a top score in three of the five categories used by the ITU:

• A legal framework for handling security and crime;
• Capacity measures based on R&D, education and training, and
• International partnerships and information sharing.

But no system is perfect, as the country is still lacking in some technical areas, particularly when it comes to its own internal hygiene-related proficiencies.

When it comes to defensive tactics, the country is relatively week, according to analysts from Harvard Kennedy School’s Belfer Center.

In other words, a good offence requires a strong defence. Malaysia’s ability at destroying and/or disabling a hostile infrastructure is less than satisfactory, compared to countries like Russia and the US.

Countries such as China and Singapore are leading when it comes to the defence of government and national assets and systems.

In May, Microsoft announced the launch of the Asia Pacific Public Sector Cybersecurity Executive Council to help unify policymakers from government and state agencies.

The purpose, according to the US software vendor, is to establish better communications between these organisations and facilitate the sharing of best practices, including a better exchange of threat intelligence and technology in a “timely and open manner.”

Upon the launch of the Executive Council, 15 policymakers from Singapore, Indonesia, South Korea, Malaysia, Thailand, Brunei, and the Philippines have joined the council.

Also Read: From our community: Why SEA needs HR tech, better cybersecurity talent, open conversations on ethics and more …

The significance of bringing policymakers to the table is the opportunity to meet virtually every quarter to establish a “continuous” sharing of information on cyber threats and cybersecurity products.

The collective intelligence amongst the Asia Pacific nations is crucial to helping bridge the gap and balance policy and projection moving forward, as discussed in CPO Magazine.

Compared to most countries in the Middle East, Malaysia sits in a very powerful position, but certainly has some work to do. “You have to invest in diplomacy,” said Greg Austin, IISS’s Senior Fellow for Cyber, Space and Future Conflict.

“If you’re a tier-three country, you cannot be secure in cyberspace without securing the support of stronger countries who can help you.”

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Despite many positive changes in managing stress in the startup ecosystem, mental health issues continue to be an epidemic.

In 2017, 500 Startups Managing Partner Khailee Ng stated that:

“If you ask any founder how he’s doing, he’s probably going to say that he’s killing it. But deep down inside, the product is broken; customers are leaking out; your co-founder hates you; you just made a bad hire; your team hates you; if you go back home, maybe your partner or spouse hates you; your pet hates you, and you don’t even know whether you are supposed to be a founder or not!”

This statement continues to hold true today especially since the COVID-19 pandemic started. The mental health epidemic has especially escalated after COVID-19 where gloomy news spreads like wildfire and many companies have to switch their business models. It is undeniable that many founders are suffering from more stress despite putting up a strong front.

According to a whitepaper report by Action Community for Entrepreneurship (ACE) and Safe SpaceTM, male founders in Singapore were seen to be twice as likely to experience a toll on mental health, but are also twice as likely to confide in no one.

Also Read: How ThoughtFull aims to destigmatise mental health through daily chats with professionals

Another key finding was that whilst 78 per cent of startup founders agreed that mental health is important in a high-functioning team, only 12 per cent of them admitted to having a mental health advocate in their companies.

This could be since startups are mostly too focused on growth and have the tendency to overlook other things such as wellness.

On being asked what strategies were employed to cope with stressors, more than half of the founders (54 per cent) said exercise, followed by mindfulness (40 per cent), peer support (36 per cent), and family support (32 per cent).

However, in spite of these strategies, the report found that many founders lack practical strategies for managing stress, and are perhaps unaware that therapy is accessible online, where therapists are increasingly offering more flexible hours for sessions.

ACE and Safe Space are calling on all members within the startup ecosystem and their investors to show commitment and place greater importance on mental health.

Members can take the first step forward by signing up for the Startup Mental Wellness Pledge, a statement that affirms that your startup is committed to implementing a practical and effective mental wellness policy.

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Bukalapak shares to trade in IDX on Aug 6

The story: Indonesian e-commerce firm Bukalapak’s share is set to list on the Indonesian Stock Exchange on August 6, according to Kr-Asia.

More about the story: The company has been targeting raising more than US$1 billion in its IPO, more than 25 per cent than previously planned.

Bukalapak, which counts GIC and Microsoft among its backers, is set to be the biggest local listing in 13 years and the largest ever by a startup in the SEA region.

Kurly raises US$200M from Sequoia, Hillhouse, DST

The story: Kurly announced that it has raised US$200 million in a Series F funding round at a US$2.2 billion post-money valuation.

Investors: Aspex Management, DST Global, Sequoia Capital China, Hillhouse Capital, Millennium Management, CJ Logistics Corporation.

What the funding will be used for: Product enhancement, hiring, customer acquisition, investment in logistics infrastructure, and expansion.

Also Read: Sequoia Surge’s new cohort comprises a vegan makeup startup, an innovative email marketing platform, and more

About Kurly: Founded in 2015, Kurly is a South Korean grocery startup that is designed to provide groceries and produce to customers who don’t have the time or interest to visit regular retail stores for their shopping.

Kurly Market delivers orders by 7 AM each morning, with customers were given until 11 PM the previous day to place their order.

More about the story: Kurly claims to have generated US$845 million in annual sales in 2020, marking a 124 percent year-over-year growth.

The company believes that margins will also continue to grow as it achieves scale and operational efficiency while offering quality products and services.

Tencent launches new facial recognition to help the government regulate minors’ time spent gaming

The story: Chinese web giant Tencent has launched a new facial recognition function called “Midnight Patrol” to help the government curb minors’ time spent on gaming.

About the curfew: Anyone under 18 cannot play games after 10 PM.

Also Read: Google, JD.com, Tencent confirm leads in GOJEK Series F fundraising

More about the story: Social media impressions on WeChat suggest that many gamers are not happy with the news, as is expected. Since the system is tied to age restrictions, many minors just months away from turning 18 are being kicked out of their gaming sessions.

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Major global economies are always looking out for ways to create new and exciting jobs, stimulate the economy, and bolster innovation in technology. With these key goals in mind, it is imperative for countries to focus on areas where all three goals intersect: the tech startup ecosystem.

As one of the many ways to become a self-reliant economy, a country needs to have a robust startup ecosystem and a strong network of accelerators that are designed to support and embolden these startups. With India’s plans to transform itself into a self-reliant economy, 9Unicorns plays a crucial role in strengthening the country’s startup ecosystem, and by extension, the economy.

9Unicorns, an early-stage accelerator and VC fund launched in late 2019, has already become the largest player in the country after investing in over 60 unique technology startups with a cumulative valuation of nearly USD 450 million. Co-founded by Dr Apoorva Ranjan Sharma, Anil Jain, Anuj Golecha, and Gaurav Jain, the Mumbai-based USD 72-million sector-agnostic fund provides up to USD 100K per startup in the first round, and up to USD 2 million in successive rounds with its ecosystem of co-investors. The fund is scouting for startups beyond the top Indian metros.

“9Unicorns is helping build a community where early and idea-stage startups can get more personal and systematic advice which the country used to lack. We ensure that the founders have a great starting up experience as lack of mentorship is the second most important cause of why startups fail. Lack of funding is still the first reason,” said Dr Apoorva Ranjan Sharma, Co-founder and President of 9Unicorns.

He further added that 9Unicorns is on a mission to help strengthen early-stage investing and help create quality startups that have the potential to become billion-dollar companies in the future.

Reputation and experience

Built on the lines of the US-based accelerator Y Combinator, 9Unicorns was launched by the country’s largest integrated incubator, Venture Catalysts (VCats), to identify the best ideas and most promising early-stage startups from India.

India’s startup ecosystem is thriving and the birth of 16 Unicorns this year so far is a testimony to the fact that the emergence of quality accelerators and incubators such as 9Unicorns are playing a major role in providing the basic necessities that come with opening a young startup. At present, India is home to about 50 Unicorns (by valuation) and has the potential to create about 100 more in the next two years.

Also read: STPI’s Vision Programme: empowering Taiwan-based startups to tap into Southeast Asia and beyond

9Unicorns’ platform provides innovative startups with initial handholding, funds, a world-class mentorship programme, and a go-to-market strategy with an idea to create more potential Unicorns in the near future.

While doing that, 9Unicorns also ensures that the accelerator doesn’t interfere in the day-to-day operations and running of the participating companies. “Founders of the startup smart know their product well. We only help them to grow further, raise bigger rounds, and grow their presence in different markets. The larger idea is to create a community of startups that help each other,” as per Dr Sharma.

How 9Unicorns supports promising startups

To help its portfolio companies raise bigger up-rounds, 9Unicorns is launching its first-ever showcase of startups. Called D Day, the event will showcase about 30 shortlisted portfolio startups including 15 from its parent, Venture Catalysts, and enable them to present their ideas before a global marquee of investors on August 11-12.

These startups emerged from various sectors including deep-tech, artificial intelligence, defence tech, fintech, and health-tech amongst others.

“We are super confident that each of our 30 portfolio startups presenting on those two days will be able to impress the global VCs and bag the funding they deserve. The growth of these startups would automatically boost the economy and help in creating more employment,” Dr Sharma added.

Also read: Scaling your startup: A closer look at building your local entity and remote teams

The 30 startups have been selected after rigorous workshops, coaching sessions, mentoring sessions, and proof of concepts (PoCs) that were conducted virtually, in the wake of the remote working conditions due to the COVID-19 pandemic.

The D Day will see over 100 investors from across geographies that include major economies like the US, UK, China, Hong Kong and Singapore.

As a responsible accelerator fund and as part of its efforts to put Indian startups on the global map, 9Unicorns will be organising the Global Demo Day every quarter with the assurance that each edition would see the presence of some of the finest startups from the 9Unicorns family.

To learn more about 9Unicorns, you may visit their official website for more details.

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This article is produced by the e27 team, sponsored by 
9unicorns

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MiRXES, a Singaporean biotechnology company that develops RNA-powered disease early detection tests, announced today it has raised US$77 million in Series C financing.

The round was led by CR-CP Life Science Fund and joined by global healthcare investment firm Rock Springs Capital, Charoen Pokphand Group (Thailand) and EDBI.

Established financial institutions from the US, Singapore, China and Hong Kong, including CCBI and Keytone Ventures, also participated.

This round brings MiRXES’s total amount raised since inception to US$120 million.

Also Read: AI startup Niramai helps detect breast cancer using a zero radiation, non-contact solution; receives seed funding

The new investment will be used primarily to fund the development and commercialisation of MiRXES’s pipeline of multi-cancer early detection tests that look for blood-borne microRNA and other molecular signatures released by cancer and immune cells.

The firm currently collaborates with leading academic and clinical institutions in Singapore, the US, China, Italy and Japan to conduct large-scale clinical studies on lung, colorectal, liver, breast, and pancreatic cancers with a total enrolment of more than 30,000 participants.

MiRXES will also use a portion of the capital to accelerate regulatory approval and adoption of GASTROClear, an RNA-powered blood test for the early detection of gastric cancer, in China, Japan and selected countries in Asia, Europe and the Americas that have high rates of gastric cancer. Launched in 2019, GASTROClear’s multi-cancer early detection pipeline includes screening tests for lung, colorectal, liver, and breast cancer.

The company’s China operation is launching a 12,000-strong prospective clinical trial to seek registration of GASTROClear as a screening test with China’s National Medical Products Administration. In markets where this test is approved, MiRXES is working with healthcare, insurance and laboratory partners to enable greater accessibility of GASTROClear to populations at risk of developing gastric cancer.

In anticipation of the growth, MiRXES is doubling its global talent pool to 400 staff over the next two years with a significant build-up in R&D, data science and commercial teams in major markets.

“With this fresh funding, MiRXES will bring forward our plans to deliver a comprehensive portfolio of non-invasive screening tests for early detection of six major cancers, and to expand the use of our platform RNA technology for cardiovascular, metabolic and infectious diseases research and diagnostics globally,” said co-founder and CEO Dr Lihan ZHOU.

Also Read: Ageing gracefully: Why GERO is optimistic about its chance in the race for anti-ageing drug

Founded in 2014 as a spin-off from Singapore’s Agency for Science, Technology, and Research (A*STAR) with strong support from the National University of Singapore (NUS), MiRXES develops RNA-powered tests for disease early detection, with pipelines in multiple cancer types, as well as in cardiovascular, metabolic and infectious diseases.

It has operations in China, Japan and the US, as well as commercial activities in over 45 countries, globally.

In response to the COVID-19 pandemic in 2020, MiRXES worked closely with A*STAR, Diagnostics Development Hub (DxD) and Tan Tock Seng Hospital (TTSH) to mass-produce Fortitude Kit, Singapore’s first authorised COVID-19 RT-PCR test. Since February 2020, more than 7 million Fortitude Kits have been deployed globally.

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Image Credit: MiRXES

 

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Singaporean cross-border logistics platform Jano has raised US$8 million in funding from Choco Up, a revenue-based investment and fintech firm in Hong Kong.

With the new funding, Janio aims to expand its services into new emerging markets.

Founded in 2018, the startup aims to simplify deliveries across borders. It integrates its logistics chain by creating partnerships with a wide network of service providers, connecting clients with logistics partners through its data-driven platform.

Janio’s solutions allow their clients across Asia — including Indonesia, Malaysia, Taiwan, Mainland China, and Thailand — greater control over the supply chain and help streamline logistic-related paperwork.

Also Read: Locad lands US$4.9M seed funding to provide logistics infra for e-commerce businesses

With the e-commerce industry set to boom in the aftermath of the COVID-19 pandemic, Choco Up’s investment will allow Janio to boost its growth to meet rising industry demands.

“E-commerce is at an all-time high and it’s a very good time for Janio to carry out expansion plans to secure their presence in the region as the leading provider of logistic infrastructure that helps businesses scale their operations quickly and reliably,” said Percy Hung, co-founder of Choco Up.

“At Janio, our vision is to build Southeast Asia’s leading logistics network that provides the infrastructure to help companies grow their business more efficiently and reliably. Our goal is to create a superior end-to-end delivery experience for our customers by working closely with our partners across the region,” said Junkai Ng, co-founder of Janio.

“Choco Up’s backing and their fast-track funding system will provide us the quick capital necessary to carry out expansion plans with peace of mind at this pivotal time for the industry,” he added.

The logistics market in Southeast Asia is expected to total US$55.7 billion by 2025 – demonstrating the growing demand and necessity for flexible, technology-enabled solutions.

Founded in 2018, Choco Up offers flexible non-dilutive funding solutions across eight countries and 10 sectors. With offices in Hong Kong and Singapore, Choco Up is an advanced data-driven fintech platform that leverages data analytics and vast integration to automate growth fund deployment and risk management.
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Singapore-based smart living company HiLife Interactive announced today it has secured SGD8 (US$6) million in Series A funding from Shanghai 2345 Network Holding Group, an internet information services provider and software developer in China.

With the new financing, HiLife will continue to invest in technological capability development to enhance its solution.

HiLife Interactive expects to double its presence in Southeast Asia with new markets such as Cambodia and plans to break into the Australasia and European markets by the end of 2021. It will bring its hiLife smart estate solution into commercial, hospitality, healthcare and educational institutions with the investment from Shanghai 2345 and its technological know-how.

Established in 2015, HiLife Interactive is a smart living company providing its hiLife solution to residential projects in Southeast Asia. The all-in-one app combines smart home, smart community and smart estate in a single holistic solution for both residents and estate managers.

Also Read: 5 ‘made in Asia’ smart living projects that will get you pumped

The hiLife 360° Smart Access system features visitor management and vehicle management capabilities supported by licence plate recognition technology to enhance convenience and security.

Estate managers can also better oversee the development with hiLife’s smart estate solution that allows them to manage facilities, feedback, payments, contracts, residents, visitors and assets such as the security system, lighting and energy meters through a dashboard.

Estate managers of properties such as schools and hospices can benefit from enhanced productivity, efficiency and security with hiLife. For example, its asset management system allows real-time monitoring of the facility’s security system, visitor system as well as lighting and energy meters to detect incidents and inefficiencies.

Today, HiLife works with over 30 property management companies to provide its solution to over 80,000 households in more than 300 condominiums in Singapore.

hiLife currently has a presence in Indonesia, Malaysia, the Philippines, Sri Lanka, Thailand and Vietnam.

Also Read: Getting smarter with tech: How will smart cities look like 10 years from now?

“The hiLife platform has played a significant role in keeping people safe in this pandemic. Beyond convenience, it enabled contactless living. Homeowners could book limited slots at condominium facilities without any face-to-face contact. In fact, our visitor management platform, complemented by Licence Plate Recognition technology, made it easy for both residents and security guards to manage the increase in online shopping deliveries,” said Sam Ho, Deputy CEO, HiLife Interactive.

“Singapore is a regional hub for tech and startups. Its startup ecosystem is an exciting space to be in. HiLife’s smart lifestyle solution will bring value to the digitally-savvy populations with the digital industry booming as a result of the pandemic. We are proud to support HiLife Interactive as they grow the hiLife platform into the leading smart lifestyle platform in Southeast Asia and beyond,” said Han Meng, Founder, Shanghai 2345.

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Image Credit: HiLife Interactive

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MoneyMatch, a cross-border payment company headquartered in Kuala Lumpur, announced the closing of its Series A fundraising round totalling MYR 18.5 (US$4.4) million.

The fund was raised over two tranches. The initial tranche was led by Cradle Seed Ventures in 2019 while the second one by KAF Investment Bank early this year.

This also includes a venture debt facility secured from Malaysia Debt Ventures through its Technology Startups Funding Relief Facility.

MoneyMatch said in a statement that it will use the proceedings to expand its presence to Singapore and Hong Kong by the year-end. It will also allocate additional resources to Malaysia’s northern and southern regions as it looks to ramp up its presence both nationally and internationally.

“We see tremendous opportunity in Singapore and Hong Kong as it enables us to provide our services to Malaysians and Malaysian-owned businesses in these markets initially. Secondly, it also enables us to expand our services to companies in Malaysia that export to these countries,” co-founder Adrian Yap told e27.

Also Read: Malaysia’s central bank grants approval in principle to fintech startup MoneyMatch

The startup has also announced that it will be participating in the local digital banking scene, with multiple consortiums. The names of the other entities in the consortium were not disclosed.

Founded in 2015 by former bankers Adrian Yap and Naysan Munusamy, MoneyMatch is a multinational financial technology firm specialising in international payments. Its digital platform claims to have executed over MYR 2.3 billion (US$500 million) in transactions covering cross-border trade payments and individual remittances.

MoneyMatch was amongst the first batch of fintech startups enrolled into Malaysian central bank BNM’s fintech regulatory sandbox in 2017.

Since then, MoneyMatch has scaled up to serve over 20,000 individuals and over 3,000 small and medium enterprises (SMEs) in Malaysia, whilst also expanding operations to Australia and Brunei.

Since starting operations in mid-2017, the startup has grown to over 70 full-time employees.

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Image Credit: MoneyMatch

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AND Global, a Singapore-based micro-lending startup providing AI-based instant collateral-free loans to customers in Mongolia, has secured an undisclosed sum in funding from SBI VEN Holdings, the local subsidiary of Japanese investor SBI Holdings.

Under this agreement, SBI Holdings will consider the adoption of AND’s fintech-as-a-service (FaaS) software into its global subsidiaries, such as SBI LY HOUR BANK in Cambodia, in which SBI Holdings have a 70 per cent stake, as a precursor to its collaboration with AND.

At the same time, SBI Holdings will collaborate with AND and its shareholder Marubeni Corporation to promote the introduction and proliferation of AND Global’s FaaS in the Asia Pacific, as per an official statement.

Additionally, SBI and AND will jointly create strategic new businesses and develop sustainable and advanced technology solutions and promote the creation of a digital ecosystem by utilising the existing network (clients, group companies, investees through funds, etc.).

Established in 2017 by Mongolian founder Anar Chinbaatar, AND Global operates under the brand name LendMN. It is a micro-lending mobile app powered by its Artificial Intelligence-based credit scoring system.

LendMN uses non-traditional data sources, along with traditional data, to identify the customers’ credit risk instantaneously and issues loans within less than five minutes of signing up. According to Chinbaatar, LendMN offers 10x faster, more convenient and cheaper micro-loans, compared to other competitors, which follow mostly traditional business models.

Also Read: How fintech startup LendMN saves 30K salaried employees from loan sharks in Mongolia

“Our mission is to make financing accessible and inclusive to the under-banked, not just in Mongolia but also across Asia,” Chinbaatar said in an interview with e27 in 2018. “Our mission is to save people from loan sharks, who mostly charge seven to 10 per cent interests rates per week. Obviously, this doesn’t help the economy, nor does it help the country. If anything, it has made the matters worse.”

LendMN lends from its own cash reserve. According to Chinbaatar, not only has the service proved to be useful for underbanked customers, its business model is profitable with the revenues that led the firm to a cash positive state in less than 11 months of launching the service.

As of June 2021, LendMN claims to have over 930,000 registered users, which accounts for more than one-fourth of the total population in Mongolia.

In addition, with its mobile commerce business, AND Global has created a digital ecosystem through SuperUp. It connects other companies’ services with APIs and integrates with 23 member stores to provide various services, such as public service goods & food delivery, asset management, travel & hotel bookings.

In March 2018, LendMN was listed on the Mongolian Stock Exchange. In the same year, AND acquired a non-bank financial institution license in the Philippines, where it provides LendPinoy, the local version of LendMN.

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Image Credit: LendMN

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