Indonesian e-commerce giant Bukalapak today made its debut on the Indonesia Stock Exchange, raising US$1.5 billion in its initial public offering (IPO).

Debuting at IDR850, the shares price rose 25 per cent and was capped at IDR1,060 (US$1=IDR14,369).

Bukalapak wants to use the proceeds from the IPO to support the operations of its holding company and its subsidiaries.

According to a The Straits Times report, based on the Bloomberg data, the debut gain has pushed Bukalapak’s valuation to IDR109 trillion (US$7.6 billion), putting it on par with state-owned enterprise Jasa Marga and telco Axiata.

In a press conference, CEO Rachmat Kaimuddin said Bukalapak remains committed to maintaining its performance and supporting Indonesian MSMEs through its various services. 

The firm also aims to implement a business strategy that includes strengthening its “all-commerce platform” and partnering with Mitra Bukalapak, the MSMEs using the platform.

It will also increase its focus in tier-two and tier-three cities in Indonesia.

“We aim to create a fair economy for all,” Kaimuddin said. 

Also Read: Ecosystem Roundup: Firms in SEA raise record US$4.9B via IPOs in H1; Temasek, DBS form US$500M debt platform

Bukalapak’s journey began in 2010 as a C2C online marketplace. Over the years, the company has ventured into various verticals, including fintech and O2O e-commerce.

The firm became a unicorn in January 2018 and counts GIC and Microsoft among its investors. It is also the first unicorn in the archipelago to go public both domestically and abroad.

According to Kaimuddin, Bukalapak chose IDX to list its shares, given its status as a local company with stakeholders primarily based in the country.

Bukalapak, however, is not the first company to list on the IDX. In 2017, two Indonesian tech startups Kioson and MCash had gone public on the local exchange. Kioson raised US$3.3 million on the very first day, while M Cash raised US$22 million.

In an interview with e27 in June 2020, IDX commissioner Pandu Sjahrir spoke about the organisation’s plan to encourage more Indonesian tech companies to get listed on the stock exchange.

“What we are doing here is deepening the demand, particularly by having more young investors on board. It is something that starts with education about the capital market,” Sjahrir said.

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Image Credit: Bukalapak

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Although its fintech industry is still relatively nascent compared to major players like London, the Malaysian capital of Kuala Lumpur climbed 11 places in this year’s Global Fintech Rankings. There is no shortage of homegrown success stories. Among them is Jirnexu, which provides digital acquisition solutions for financial service providers and has raised US$37 million to date. In January, supply chain finance startup and P2P financing platform CapBay bagged US$20 million in a Series A fundraise.

Malaysia’s consumers are spoilt for choice when it comes to e-wallet providers with a number of major players as listed by Jobstreet, such as GrabPay, CIMB Pay, AEON Wallet, Boost, and Touch ‘n Go. Cashless transaction has taken on an increasingly prominent role in people’s lives, so much so that the active user base for the e-payment system used for expressway tolls has ballooned to 21 million people. In fact, Malaysia boasts an ASEAN-leading digital wallet usage rate of 40%, ahead of neighbours like the Philippines (36%), Thailand (27%), and Singapore (26%). Cash usage has correspondingly dropped by 64% since the beginning of the pandemic.

These statistics are all reflective of the country’s thriving digital market. With more consumers prioritising convenience and hygiene, they naturally turned towards contactless methods like e-wallets and digital banking. These developments have also manifested in the overall growth and expansion of these fintech companies. For example, AIA Malaysia recently purchased a minority share in Touch ‘n Go, putting their value at RM 3 billion. On the other hand, Boost recently teamed up with RHB Banking Group, signalling their move into the highest-margin segments of financial services.

Also read: How these four India-based startups are impacting the earth

The recent pandemic has accelerated this growth, enabling the market to adopt fintech solutions at a much faster and larger rate. According to the Fintech Malaysia 2021 report, mobile banking transactions reached a record high of US$109.7 million in 2020, an increase of 125% compared to the year before. Unprecedented nationwide lockdowns have forced people to work from home, pushed businesses online, and encouraged the use of digital payments. All these have spurred Malaysian fintechs to shine amidst the challenges.

The growth of Malaysia’s fintech ecosystem is also partly thanks to regulatory support from both Bank Negara Malaysia (Malaysia Central Bank) & the Securities Commission. To support the efforts of regulators, the Malaysia Digital Economy Corporation (MDEC) has launched the Fintech Booster which is a capacity building program, in collaboration with Bank Negara Malaysia to assist fintech companies, both local and foreign in developing their products and services via three strategically crafted modules; Legal & Compliance, Business Model, and Technology.

Malaysia fintechs going global

Among the companies that have benefitted from MDEC’s programmes is Soft Space, which provides fintech infrastructure services for the financial services industry (FSI). It delivers these solutions via a “fintech-as-a-service model”, allowing FSIs to pay only according to their usage demand. Specifically, they help FSIs accept payments and issue physical white label prepaid cards via e-wallets.

One of Soft Space’s innovation is the “Tap to Phone” introduced with PayNet back in 2018. The solution, a world’s first, is a gamechanger to the payment landscape by allowing any Android device with near-field communications to accept contactless cards.

Tap to Phone has been endorsed by major card schemes like Visa, Mastercard, JCB, and most recently UnionPay International. It is also used by clients in Australia, Europe, and Japan where, JCB, one of the largest card brands with over 140 million cards in circulation, has introduced this payment technology to its member banks across 24 countries.

“Soft Space has already introduced this technology to 13 FSIs and 8 partners globally, some of which are unicorn payment giants that have the most stringent business and security requirements,” said chief strategy officer Chris Leong.

Also read: Angel Investors: leading the charge for startup growth in Thailand

Soft Space has also ventured into the transport and logistic sector in two advanced markets. In Japan, Tap to Phone is the first in the market to enable expressway buses to accept contactless credit cards. Meanwhile, in Australia, it is used by Transport for New South Wales to validate payments. This is a further testament to Soft Space’s capabilities.

The fintech has also successfully expanded to other overseas markets, including Taiwan, Australia, Japan, Thailand, Singapore, and Indonesia.

Soft Space has managed to hit these key milestones because of the rich Malaysian fintech ecosystem and the support of the government. The country’s central bank, for instance, actively emphasises the need for Malaysia’s regulations to be aligned with global standards, which ensures that local fintech companies are always well-positioned to go global.

But Soft Space isn’t alone in this feat. Joining them among the roster of Malaysian fintechs that have gone global are Tranglo, JurisTech, and Merchantrade.

More local players scaling globally

Tranglo is a fintech that specialises in cross-border payments. They provide three solutions: Tranglo Connect, Tranglo Business, and Tranglo Recharge, which respectively provide remittance payouts, payouts for businesses without money service business licences, and international airtime transfers.

Recently, US fintech giant Ripple announced that it would be acquiring a 40% stake in Tranglo. With this partnership, Tranglo is ready for its next stage of growth.

“This acquisition supercharges Tranglo’s capabilities to include digital currency as settlement and blockchain technology to speed up and secure transactions further,” said chief executive officer Jacky Lee.

Despite challenges like regulatory differences and language barriers, Malaysia’s multilingual and multicultural uniqueness has enabled Tranglo to thrive abroad. It currently has a presence in more than 22 countries, such as the Philippines, China, Indonesia, Vietnam, and the United Kingdom.

JurisTech, which develops a variety of fintech solutions for different client classes, is also among Malaysia’s success stories. It offers credit management software solutions for banks and financial institutions. Furthermore, it provides “software-as-a-service” products for small and medium-sized enterprises and customised marketing solutions via its consumer’s arm, iMoney.

The company created a machine learning tool, Juris Mindcraft, that does prescriptive analytics artificial intelligence (AI). It helps businesses make better decisions through the analysis of raw data in addition to providing business recommendations. Furthermore, they also introduced Juris Access, a digital onboarding platform, for organisations to deliver an easy to navigate, interactive digital space that streamlines the customer journey from the front-end to the back-end.

JurisTech has expanded globally to Australia, Uganda, Singapore, and United Arab Emirates (UAE). As the financial industry matures to transform digitally, JurisTech already has ready-built components and solutions for banks, financial institutions, Fintechs, and SMEs to help compose this future digitally.

Also read: How Malaysia’s Glueck Technologies is revolutionising data-driven technology in Southeast Asia

Another promising player in the fintech ecosystem is Merchantrade. The company provides multiple fintech solutions such as the Merchantrade Money eWallet, which includes a visa prepaid card, remittance app eRemit, and payment gateway service Ozopay.

Today, Merchantrade is one of the largest remittance providers in Southeast Asia, with more than 100 payout partners including more than 40 banks worldwide. Partners from places as far as Europe, Canada, Oman, and Bangladesh can also access their international money transfer operator platform.

Soft Space, Tranglo, JurisTech, and Merchantrade will all feature at the forthcoming Malaysia Tech Month Fintech Showcase, a curation of the country’s top fintech companies.

To learn more about the programme and the fintech showcase, please visit the Malaysia Tech Month official page.

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This article is produced by the e27 team, sponsored by MDEC

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

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Arise, a joint venture by Finch Capital and MDI Ventures, has announced the first close of its US$40-million debut fund.

Multiple third-party corporate investors, family offices, and high-net-worth backers joined the fund. Notable among these is Indonesia’s publicly traded ICT giant Metrodata Electronics.

With ticket sizes ranging from US$250,000 to US$3 million, the Indonesia-based fund plans to invest in 25 tech startups in the post-seed to pre-Series A stages in Southeast Asia for the next three years. 

Startups funded by Arise are given a path to receive investments at later stages of their development, all the way up to exit (IPO or M&A). 

Also read: Blibli is the latest Indonesian tech company to confirm unicorn status

Arise is currently in the process of executing new investments. The fund targets at least five closed deals by the end of 2021.

Established in late 2020, Arise goes beyond writing cheques to invest in startups early — even before the founders fully solidify their ideas and teams. 

In addition, it provides access to strategic go-to-market partners via its corporate LP network. It also empowers long-term capital through its affiliated sister funds, such as MDI Ventures and Centauri Fund.

Before receiving capital from Arise, startups will also have an option to enter Telkom’s Indigo Nation incubator. They can also benefit from a broad network of Arise’s corporate LPs and tech ecosystems in Europe, Asia, and Silicon Valley.

According to Arise Partner Aldi Adrian Hartanto, despite the significant influx of high-quality founders over the last decade, a disproportionate capital allocation makes the situation more challenging for promising entrepreneurs to secure investments during the region’s economic slowdown. 

“Many of these ‘next generation’ founders, who often come with experience from established local tech ‘unicorns’ and ‘centaurs,’ already know how to grow and scale tech ventures in the local market. But they have yet to really get their names out there and still require further support in accelerating product-market fit, validating ideas, and raising proper series A rounds after that,” he said.

“Startups backed by Arise should ideally go on to receive investment from Centauri at the series A stage, MDI Ventures at series B and later stages. Finally, in some cases, they should see a meaningful exit via acquisition with Telkom Group as one of the potential buyers or IPO,” added Hartanto.

“We’ve seen many seed-stage companies struggling to access the right markets, which is reflected by a lack of traction,” says Hans De Back, Managing Partner at Finch Capital. “Our role is to solve this problem with immediate go-to-market avenues by collaborating with our network of enterprise partners such as Metrodata and portfolio companies. In this way, we can enable companies to grow much faster and set them up stronger for series A.”

Also Read: Bukalapak raises US$1.5B on the first day of its IDX debut, shares jump 25 per cent

Earlier this year, Finch Capital, which focuses on European and ASEAN markets, announced the first close of its third European Fund (EUR150M) in high-growth fintech and AI startups. 

Meanwhile, MDI Ventures, with US$830 million in assets under management, provides startups with a wide range of opportunities to get plugged into Indonesia’s Telkom Group of businesses in telecoms, multimedia, property, financial services, and a network of other state-owned enterprises.

In recent years, with the tremendous rise of tech-based unicorns like Gojek, Traveloka, and recently Blibli, Indonesia is considered the most prominent startup hub in Southeast Asia. Today, the country’s e-commerce platform Bukalapak also announced its debut on the Indonesia stock exchange, the first unicorn in Southeast Asia to go public. 

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Image credit: Arise

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‘Gojek wants to move from the idea of a super app to an on-demand company for everything’: Group CTO
According to Severan Rault, the role of CTOs has changed over the past decade; His responsibility is now to bring technology into every function of the organisation.

Kredivo to go public via merger with Victory Park Capital’s SPAC at US$2.5B valuation
The transaction is expected to deliver over US$430M of gross proceeds; The public listing will enable Kredivo’s continued growth in Indonesia, expand into regional markets, and help it enter new business lines.

Huawei earmarks US$100M for investments in APAC startups over 3 years
It’ll focus on developing startup hubs in four new markets: Indonesia, Vietnam, Sri Lanka, and the Philippines; This investment will be made as part of Huawei’s The Spark programme; The Spark programme is already being run in Singapore, Hong Kong, Malaysia, and Thailand.

Traveloka exploring US listing via SAPC deal, looks to raise US$400M
As per a Bloomberg report, the SPAC is backed by Peter Thiel; The deal will value the combined entity at about US$5B; DealStreetAsia earlier reported that Traveloka was in advanced talks with Bridgetown Holdings.

Customer engagement platform MoEngage raises US$32.5M Series C+
Investors include Multiples Alternate Asset Management, Eight Roads Ventures, F-Prime Capital, and Matrix Partners; MoEngage provides marketers and product managers with consumer behaviour data and the ability to act on those insights to engage customers across web, mobile, email, social, and messaging channels.

Vietnam’s e-commerce delivery startup Loship raises US$12M
Lead investors are BAce Capital and the direct investment unit of Sun Hung Kai & Co; Skype co-founder’s MetaPlanet and Wealth Well (Saudi Arabia), and Prism Ventures (Singapore), also joined; Loship will use the money to expand into new regions, and grow its B2B delivery offering for small F&B businesses and mom-and-pop shops.

Asian tech startups drawing looks from hungry investors
Crackdowns on Chinese startups are likely to make global investors look elsewhere and bolster the share prices of other companies in the region. But this coming-of-age moment is still missing a crucial ingredient: monetisation.

Equity, fund management platform Quotabook raises US$5M
Investors include Carta Ventures, Elefund, Draper Associates, and Goodwater Capital; It helps founders organise and simplify equity including cap tables, equity rewards and valuation on its platform, where such data is automatically laid out for their investors in a view to tracking portfolio’s growth and performance.

Singapore B2B sales platform Nektar.ai raises US$6M
Investors are B Capital Group, 3One4 Capital, and Nexus Venture Partners; The latest round of funding takes the total seed amount raised by the startup to US$8.1M; Nektar.ai compares its AI-powered guided selling solution to customer relationship management systems like Salesforce.

Singapore’s Ohmyhome bags US$5M from Swettenham Blue
The proptech platform will use the money to develop a data-matching tech that fast-tracks closing of property deals; It operates on a hybrid model — DIY platform and fully-fledged agency services; Ohmyhome is planning to launch its Series B funding round next year.

Indonesian fintech Ayoconnect raises US$5M pre-Series B led by VC firm AAVCF4 PF1 LP
Other backers are Black’s Link Investment, The Next Unicorn Fund, Patamar Fund, and Mandiri Capital; The fintech startup connects bill providers with online and offline channel partners and financial institutions, so end consumers can pay their bills more seamlessly within its network.

Astronaut acquires Indonesia’s POPSkul
Astronaut enables companies to identify the right candidates from larger candidate pools whereas POPSkul enables people the opportunity to “get certified fast”, especially during the pandemic; With this acquisition, Astronaut will be integrating skills certificates into the candidate profiles on the Astronaut platform.

Sequoia India leads Thai SaaS firm FlowAccount’s US$4m series A round
The online invoicing firm offers cloud-based bilingual business solutions to help freelancers, small-business owners, and accountants in Thailand manage their accounting, payroll, and expense tasks on a single platform; FlowAccount said there are currently 50K customers.

Singapore edutech startup Flying Cape nets US$1.5M
Investors are Start-up O, EduSpaze, and undisclosed angels; The startup will use the money to scale its operations across China and SEA; Flying Cape helps parents understand their children’s learning styles, hobbies, and passions; It also helps them identify appropriate classes for their children through tailored suggestions made by its proprietary SMART diagnostic assessment tools.

IoT-enabled coffee machine startup Morning raises US$1.27M
Investors include zVentures (lead), The Lo & Behold Group, and Zopim founders; The money will go towards strengthening Morning’s international expansion; The machine uses precision brewing features, combined with a recipe-driven ecosystem, to deliver every cup of coffee precisely as the roaster intended it to taste.

Ghost kitchen startup MadEats makes it into Y Combinator;
The foodtech venture also disclosed that it is currently in talks to raise a 7-figure USD in seed funding. The firm has already raised one-fourth of this amount from some angel investors and former YC alumni, and it target to close this round by September.

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Blibli is the latest Indonesian tech company to secure a unicorn status this year. This information was confirmed by CEO Kusumo Martanto in an exclusive interview with DailySocial for its Mastermind column.

Martanto said, “While we have not made any public announcement about our status yet, the size of our business has grown beyond billions of dollars. Can we say that we have secured a unicorn status? Yes. However, as a digital company, what we really want is to create a sustainable business with a positive value and impact for the society.”

Previously, Tiket –an Indonesian OTA startup that Blibli acquired in 2017– has also confirmed its unicorn status. The company has been reported to mull the possibility to go public through a SPAC merger with COVA Acquisition Corp (COVA) with an estimation of a US$2 billion valuation.

The following is a complete list of Indonesian unicorns. Some of these companies have directly confirmed their status exclusively to DailySocial and have not made a public announcement about it:

Traveloka
Valuation: US$3 billion ~

Bukalapak
Valuation: US$3 billion ~

OVO
Valuation: US$2.9 billion

Also Read: Finch Capital exits stake in Indonesian fintech startup Cermati to Djarum Group

JD.id
Valuation: Undisclosed
Confirmed by the company to DailySocial

Blibli
Valuation: Undisclosed
Confirmed by the company to DailySocial

Blibli
Valuation: US$1 billion
Confirmed by the company to DailySocial

Kredivo
Valuation: US$2.5 billion

Business map of Blibli

Under the umbrella of GDP Venture, a venture capital arm of Djarum Group, Blibli has done several strategic acquisitions. Apart from Tiket, they have also acquired and invested in other startups. These initiatives have led Blibli CEO Martanto to become a board member or commissioner in a number of companies.

In its main business line, in the past few years, Blibli has been pursuing several initiatives to further grow its business. First, by strengthening the company’s O2O aspect through the launch of BlibliMart. By early 2020, the service is said to have secured the second strongest category on Blibli based on GMV and the number of orders, just behind electronic goods.

Also Read: Ecosystem Roundup: SEA gets 2 new e-commerce brand aggregators + it’s raining startup funding in Indonesia

At the end of 2020, together with Cermati Fintech Group’s subsidiary Indodana, Blibli introduced a pay-later feature into its list of payment methods. The company also pushed for the growth of Blibli Mitra to work with more SMEs –it claimed to have secured 16,000 partners with more than one million customers.

This year, there are several initiatives that the company intends to focus on. First, to ride on the wave of used car marketplace trends, Blibli will continue collaborating with its business unit Garasi.id.

They will also be working with BCA Digital as an exclusive partner. In the early stage of this partnership, Blibli users can use the service as an in-app payment.

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The article Blibli Konfirmasi Status “Startup Unicorn” was written in Bahasa Indonesia by Randi Eka Yonida for DailySocial. English translation and editing by e27.

Image Credit: DailySocial

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The startup hype has attracted a lot of would-be entrepreneurs to start their own business. In Thailand, startups with world-changing innovation and technology have mushroomed exponentially over the past few years. Unfortunately, many emerging startups had to put their growth plans on the backseat because of the global health crisis that has plagued virtually every aspect of human life, including business and commerce.

But not all things are lost. After technological disruption emerged faster than initially expected, partly because of COVID-19, a lot of potential entrepreneurs have started to find new business opportunities to develop creative and one-of-a-kind products and services that are capable of addressing pain points felt by different industries at lower costs.

Despite their brimming potentials, these startups still need access to the right kind of support. It is important for them to receive support at the right place, the right time, and in the right way in order to better navigate the business world, outside of the sandbox, all the way to the actual process of producing and delivering products and services to the market.

Angel Investors as key variables to startup success

The one stakeholder who plays a pivotal role in helping startups go from zero to one is the Angel Investor who invests in startups with faith, trust, determination, and passion. Angel Investors help guide and uplift business founders even before their startups are able to bring products and services into the market, and certainly even when these startups have not yet made a name for themselves.

No one can tell with certainty that the capital you funnel to startups will eventually yield profits or losses. But Angel Investors are courageous enough to take risks and are generous enough to help startups turn their dreams into reality — the dream to develop world-changing innovative products. Of course, when Angel Investors choose to invest in the right startups, they will definitely benefit from their investment when the startups generate profit from business operations, dividends, company acquisitions, and IPOs, among others.

Support from Angel Investors is crucial particularly at the early stages of a startup business and can greatly influence its success. Moreover, the belief and trust that Angel Investors put on startups can also greatly impact the decision of other investors to onboard in the next funding series. Furthermore, the larger the number of Angel investors in the ecosystem, the more it saturates and stimulates that urgency for other investors to explore investment opportunities within the startup realm. As a result, the startup ecosystem will only become stronger and more prosperous.

Integrating key learnings in the investment spectrum

The Thailand National Innovation Agency (Public Organisation) (NIA) and the National Science and Technology Development Agency (NSTDA) are two organisations proactively supporting startups in the country. The NIA and NSTDA recognise the role that Angel investors have on the success and survival of startups. In a nutshell, this role is essentially to offer them support while helping to remove barriers that might prevent them from flourishing into world-changing innovations.

During COVID-19, the sluggish economy made it harder for seed-stage startups who have just started out to raise funds for their business. Economic uncertainty forced investors to be more cautious in investing in startups. As such, the NIA and NSTDA have collaborated to launch the “Angel Investor Network in Action” project for investors who are interested to invest in Thai startups to help strengthen the country’s thriving startup ecosystem. The project aims to educate investors and build a network of Thai and international investors operating congruently to help spark investment opportunities.

In the year 2021, the project started out by providing a training event designed to offer learnings for those interested in participating in the project in March. The training was organised in five provinces encompassing Bangkok, Khon Kaen, Songkhla, Chiang Mai, and Chon Buri. Speakers of the event who are experts in the startup ecosystem shared their knowledge and experience regarding various topics including and especially startup investment.

After the event, the NIA and NSTDA selected 25 out of 150 new investors from across the regions to participate in another training for Angel Investors. Taking place in May, the training used the world-class Qualified Angel Investor Course (QBAC+) of the World Business Angels Investment Forum (WBAF). The 25 new investors who have completed the WBAF’s QBAC+ course have a combined capital totalling 110.55 million baht for them to invest in startups. Of course, this figure is a huge amount of money especially during the COVID-19 crisis and can certainly go a very long way.

Improving people’s lives

The project marked another milestone of success in the development of a strong Thai startup ecosystem through kind Angel Investors whose support can help Thai startups get off to a good start. Funding from Angel Investors means the world to Thai startups who aspire to innovate not only for entrepreneurial growth but also to achieve a better quality of life for all.

For more information on this project as well as other collaborations with NIA, you may visit their official website here.

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This article is produced by the e27 team, sponsored by NIA

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

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Yummy Corp., the startup behind the Indonesian cloud kitchen brand Yummykitchen, has extended its Series B round with an investment from Sembrani Nusantara, a fund managed by BRI Ventures.

This round comes less than a year after Yummykitchen bagged US$12 million in Series B, led by Softbank Ventures Asia, in September 2020.

The startup will use the fresh capital for expansion into 50 new locations across Indonesia.

Also Read: How Philippine cloud kitchen industry is piggybacking on the country’s unique food culture, shifting customer behaviour

Launched in June 2019, Yummykitchen is an online catering brand that develops innovative solutions for corporates and F&B brands. The startup rents out shared kitchen space and carries out operational procedures on behalf of partner brands.

Today, Yummykitchen operates more than 70 cloud kitchens spread across Jabodetabek, Medan, and Bandung and collaborates with more than 50 F&B brands such as Dailybox, Ponut Donut Kentang, Gaaram, Kyochon, Sei Sapi Lamalera, Wanfan, and North Pole Gelato.

In addition to Yummykitchen, the firm is also building a foodcourt management business and will integrate it with online sales. 

Mario Suntanu, CEO of Yummy Corp., said: “During the pandemic, the number of Yummykitchen transactions grew 7x compared to March 2020. This growth validates our belief in the vast potential of online food delivery, which seems to be booming early due to the pandemic. 

Also Read: Yummy Corp bags US$12M Series B to grow its cloud kitchen brand in Indonesia

Nicko Widjaja, CEO of BRI Ventures, said: “Now is the right time for us to encourage platform growth for MSMEs through funding to the new retail sector. Yummy Corp has helped MSMEs to survive the pandemic crises and continue to expand their business opportunities.”

Indonesia houses multiple cloud kitchen startups. Hangry is the other prominent player in this sector. In May this year, Hangry received US$13 million in an Alpha JWC Ventures-led Series A round.

Since launching Sembrani Nusantara in early 2021, BRI Venture has invested in five companies, namely Sayurbox, Haus!, Brodo, Andalin, and Yummy Corp.

 

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India is home to 1.3 billion people on the earth and is currently the 6th largest economy. Being a developing economy with huge potential to be one of the most promising markets for businesses around the world, India is slated to rise to the zenith. However, India needs to make sure its development story does not lead to the rise of the country’s collective carbon footprint in the world and ultimate contribute to climate change which has already wreaked havoc on this planet on unimaginable scales.

India presently emits 7.1 per cent of our global emissions and has 60 per cent lower per capita emissions than the global average. India has set ambitious targets for itself in the Nationally Determined Contributions according to the UNFCCC Paris Climate Agreement.  India intends to reduce the emissions intensity of the GDP by about a third and has promised that a total of 40% of the installed capacity for electricity will be from non-fossil fuel sources.

With increased digital connectivity across the vast swathes of rural India and more Indians becoming job creators by reaping the benefits of the digital economy, the growth trajectory of India is experiencing a shift. While the government has launched many initiatives like the Bharat Net program, Digital India mission, or the recently launched e-RUPI app, the Indian entrepreneurial spirits are also not left behind.

Let us look at some examples:

Hesa

The heart of India resides in the villages. The rural economy which is largely dependent on agriculture or agro-based industries contributes 45 per cent of the National Income. Despite government interventions, rural India faces problems like lack of access to credit and lack of formal employment opportunities. In such conditions Hesa, a B2B platform intends to bridge the gap between the benefits enjoyed by the urban population and the underserved rural population by connecting the brands to the rural marketplace.

Founded by Vamsi Udayagiri and Hema Nandiraju in 2020, Hesa is a one-stop solution for corporates, banks, governments, and NGOs to explore and invest in rural India. Hesa aims to connect 650k villages over India ‘phygitally’, that is, by marrying the benefits of physical relationships which are generally valued in rural India, and the efficiency of digitisation.

Also read: Angel Investors: leading the charge for startup growth in Thailand

A team of over 8000 Hesaathis are spread across villages in three states. They help in managing the supply chain at the village level, handles banking transactions, facilitates village level mapping and surveys, and creates rural visibility for brands.    

Today, with the help of Hesa e-Wallet, 1.1 million women SHG members of Telangana are able to access payback instantly through the Stree Nidhi initiative. Similarly, 2 million farmers have got the benefit of Big Haat, an online agri-market place.

BluSmart

Delhi has earned the epithet of being India’s most polluted city. Every year, after Diwali, we hear stories of smog cast across the skies of the national capital. The Delhi government has launched many initiatives like the Odd Even Scheme and Electric rickshaws to curb vehicular pollution. However, reducing air pollution calls for a congregative effort from all stakeholders and cannot be done by the government alone.

To make a difference and give a boost to electric mobility, BlueSmart started in 2019 as India’s first and largest zero-emission ride service. 

Founded by Anmol Jaggi and Punit Goyal, BlueSmart operates a fleet of 400 cabs in the South Delhi-Gurugram region. It has also opened around 130 fast-charging stations for public use. Each of these has the capacity to charge 25-150 cars each.

BluSmart has completed 510,000 emission-free rides and covered 16 million emission-free kilometres, thereby saving 1000 tons of CO2 emissions. It promises zero ride denials, zero surge pricing, and the highest standards of safety and sanitisation.

Recently, BlueSmart has also increased the number of women driver-partners to 500 in Delhi and plans to increase it further to 50 per cent of the total driver base.

Zypp Electric

The pandemic has forced us to rely more on deliveries rather than stepping out and braving the virus. Even before, urban India has gotten used to getting groceries, food, clothing, and a host of items delivered to their homes. The home delivery market in India is expected to grow at a CAGR of more than 23% during the forecast period 2019-2025.

Akash Gupta and Rashi Agarwal founded Zypp Electric, a last-mile delivery company, in 2017 with a vision to ensure that the growth in the e-commerce industry does not lead to a simultaneous increase in carbon footprint. With expertise in AI and ML-enabled Tech platforms, the right EV technology, battery swapping infrastructure, IOT Zypp is able to carry on with last-mile deliveries in 10 cities.

Also read: How Malaysia’s Glueck Technologies is revolutionising data-driven technology in Southeast Asia

Today, Zypp is growing at a rate of 15 per cent month on month in revenue and has onboarded with major clients like Amazon, Flipkart, and Big Basket.

Charge+ Zone

Many ecologically aware and conscious commuters do think of shifting to electric vehicles. However, the absence of sufficient charging infrastructure, even in metro cities, provide a setback to potential buyers.

Founded by Kartikey Hariyani in 2018, Tesco Charge Zone has set up electric charging stations in various Indian cities like Delhi, Gurugram, Noida, Ahmedabad, Pune, Mumbai, and Hyderabad.

The mobile app, Charge+ Zone, provides a one-stop solution to locate charging points, book slots for charging,and  payment through QR code which will bring in an ecosystem of unmanned charging stations that would be effective in times of pandemic where contactless service is usually preferred.

Charge+ Zone is already providing service for Ahmedabad Municipal Corporations and will be tying up with Patna city transport service in the near future.

The new normal

As we move past this economic downturn and propel our growth engine, it is necessary that our creative minds come together and shape a new normal. As a young country with increasing aspirations, we need to build capacities in a cost-effective way to make the transition to a green economy. This would ensure that we do not jeopardise our economic growth trajectory in the process of reducing our carbon footprint.

Also read: These Artificial Intelligence startups are proving to be industry game-changers

These startups will be pitching at the 9Unicorns Venture Catalysts demo day with other up-and-coming startups offering their own unique products and services. Join them on August 11 and 12 to connect with some of the most promising young startups in a virtual networking session. To learn more, visit their official page here.

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Photo by Pixabay from Pexels

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

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

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The advent of the pandemic led numerous sectors to undergo a serious downturn and yet, regtech remained one of the few that flourished, especially in the Asia Pacific (APAC) region.

For many financial services organisations, it compelled an urgent increase in investment to digitise processes, not only to facilitate seamless customer onboarding but also in response to growing regulatory pressures for more robust compliance and risk controls.

One of the curious aspects about the financial services industry is that while investment in technology has boomed over the past number of decades, the basic cost of financial intermediation has remained the same at around 1.87 per cent, as studied by NYU Stern School of Business.

Fintech Commentator David Birch speculates that this occurs as the cost and complexity of financial regulations has increased faster than industry can gain efficiencies.

Therefore, it is with regtech where the opportunity lies in truly driving improvements in the financial services industry and ultimately a better experience and end value for the wider economy.

Understanding the lay of the land

Prior to the pandemic, the APAC region’s regtech landscape was already seen as the most promising globally. In fact, it is forecasted that the global regtech market will grow from US$6.3 billion in 2020 to US$16.0 billion by 2025, a rate of over 20 per cent per year, with APAC expected to have the highest growth rate over this period.

The projected growth of the sector is in tandem with the booming fintech scene in the region, particularly in Southeast Asia which saw an estimated US$1 billion worth of investments in 2019 according to World Bank reports.

Also Read: New normal preparation: How regtech can help the financial industry tackle money laundering

Recent initiatives are a testament to the sector’s rising growth and relevance in the past few years. Home to some of the world’s major financial centres, the burgeoning regtech scene is supported by progressive initiatives led by regulators in these financial hubs.

The Monetary Authority of Singapore (MAS) for example introduced the Regulatory Technology (Regtech) grant scheme and the Digital Acceleration Grant (DAG) scheme to bolster Singapore as an attractive market for global regtech players.

In Hong Kong, the Hong Kong Monetary Authority (HKMA) has expanded its Banking Made Easy initiative to facilitate regtech developments focusing on anti-money laundering (AML) and counter-terrorist financing (CTF) surveillance technologies, regtech for prudential risk management and compliance, and study on machine-readable regulations.

It is encouraging that regulators are becoming increasingly forward-thinking and dynamic. While risk will always have a role to play in the industry, the lessons learned from events such as the 1MDB scandal, Wirecard collapse, Luckin Coffee and Hin Leong Trading show that there is a myriad of opportunities for regulators to better protect consumers and the broader financial system.

It is widely accepted that judicious deployment of technology will further enable the industry to meet the next generation of compliance obligations.

Waking the sleeping beast

Although APAC is home to a vibrant financial services ecosystem, the reality is that the region is extremely diverse and non-homogenous, with varying levels of market development. And this is a key challenge for many regtech companies.

Ireland’s state innovation and trade agency Enterprise Ireland, ranked one of the world’s most active VC investors, including fintech, published the The State of Regtech in APAC Report which revealed that regtech uptake in developed economies such as Hong Kong, Singapore, Sydney and Tokyo, is driven by a sophisticated financial ecosystem and a complex regulatory environment.

Enterprise Ireland commissioned a financial technology market research and consulting firm –Kapronasia – to develop the Report which identifies the latest opportunities and roadblocks facing regtech players in each of these markets.

In established financial centres such as Hong Kong and Singapore, the drive for greater accountability and governance combined with the emergence of new market participants in fintech leads to the stronger regulatory impetus for regtech adoption.

Additionally, disruptive technologies such as artificial intelligence and distributed ledger technology are giving rise to security concerns, further underlining the necessity for regtech solutions.

Also read: What opportunities lie ahead for compliance technology in 2020 and beyond

Meanwhile, for neighbouring Southeast Asian economies, regtech uptake is often driven by the sector’s promise in driving financial inclusion, which is increasingly subject to ambitious national government targets, for example in the Philippines.

Uptake is highly reliant on business cases and regulators’ priorities in these markets. Furthermore, it may take some time for international regtech providers to offer solutions to banks that truly reflect the local regulatory reality.

But it is worth keeping in mind that technology ecosystems in the different APAC economies will evolve at a varied pace, given differing regulatory drivers for regtech adoption. This is especially evident in the wake of the COVID-19 pandemic that has further reinforced differing domestic priorities and exacerbated the economic and technology gap in APAC.

A broad market understanding of the APAC region is critical for the regtech industry to thrive in a post-COVID-19 world. No doubt a particular challenge to regtech solution providers is the variance between the many countries in APAC in how their respective industries are regulated.

This presents an opportunity for regtech companies to demonstrate their agility in adapting their business models and in innovating for solutions that keep pace with varying market development levels as well as their respective needs. Regtech providers can also show regulators what can be achieved locally in aspiring to global best practice through the use of technology.

Yet, with ongoing fintech industry consolidation taking place in advanced economies such as Singapore, all eyes will be on the industry to observe the implications for the regtech scene in time to come.

Expanding the Irish regtech footprint

APAC continues to be a strategic region, despite its market variations, to Ireland and the world. Even before the pandemic, many Irish regtech companies have established their footprint in the region and have accumulated experience in resolving the types of risk and compliance issues that are now faced by companies across APAC.

As Ireland has long been a middle-office and compliance hub for the European and US markets, with deep knowledge and technical expertise, this has incubated some world-leading regtech firms, such as Fenergo, Daon, MyComplianceOffice and KnowYourCustomer.

Enterprise Ireland is also one of the world’s most active seed investor in technology companies with a portfolio of more than 40 client companies in the regtech space.

One example is AQMetrics, an AI risk and regulatory intelligence technology company for funds, asset managers and fund administrators that is headquartered in Kildare, a mere 30 minutes from Dublin. Just this year, they had successfully opened their Singapore office which will serve as their headquarters in the APAC region.

Marrying Europe’s position as a global leader in regulatory and compliance standards, which range from open banking to data protection, with Enterprise Ireland’s investment in innovative technology-driven companies, it has all provided fertile soil for Ireland to prime APAC as a world-class regtech cluster and support the regtech boom globally in time to come.

To download the Whitepaper, please see IrishAdvantage.com

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Ah, it is that time of the week when activities seem to peak up, the stress level is increasing … and you begin to wonder if there is any hope, after all, to secure your next funding round in time.

Does everything feel dark and gloomy? Fear not!

This is why we are bringing you Connect, a feature that is available exclusively for e27 Pro members. In line with our mission to provide entrepreneurs with tools and resources to build and grow their company, Connect aims to make it easier for startups to reach out to potential investors on the e27 platform and build a relationship from there.

Have your e27 Pro account ready? Not sure where to begin? This is a handy list of investors in the platform that is ready to Connect with you.

Velocity Ventures
Target stages: Seed
Target verticals: Entertainment, F&B, Retail, Transportation, Travel

Velocity Ventures aims to invest in visionary entrepreneurs who are reshaping the travel and hospitality sector in Southeast Asia. Understanding the challenges that businesses in the sector are currently facing, in June, the firm announced the launch of its US$20 million fund for “distressed” startups in the field.

Jean-Pierre Sedaghat is a Partner at the VC firm since 2019.

Connect with them here.

Taiwan Accelerator
Target stages: Angel, Pre-Seed
Target verticals: Artificial Intelligence, AR/VR, Automotive, Big Data, Blockchain, Cybersecurity, E-commerce, Enterprise Solution, Finance, Healthtech, ICT, IoT, Logistics/Supply Chain, Mobile, Platform, Productivity & CRM, Robotics, Smart Cities, SaaS, Transportation

Known as the first seed accelerator in Taiwan, Taiwan Accelerator has been actively investing in early stage startups of various verticals in the country. It is also the organiser of X-PITCH, the XGames for startups wherein participants will be going through three levels of pitching for a chance to win up to US$1 million investment prizes. e27 is a proud partner of the initiative.

Kevin Yu is the founding partner of Taiwan Accelerator.

Connect with them here.

Also Read: e27 Pro Startups gain extra visibility via the new Fundraising Highlight

Monk’s Hill Ventures
Target stages: Pre-Series A, Bridge
Target verticals: Cybersecurity, E-commerce, Education, Finance, Finance, F&B, Healthtech, Human Resources, Logistics/Supply Chain, Robotics, SaaS, Travel

Founded in 2014 by entrepreneurs Peng T. Ong and Kuo-Yi Lim, Monk’s Hill Ventures is a venture capital firm in Southeast Asia, investing in great entrepreneurs who will change millions of lives through technology. In June 2020, Ong wrote a piece for e27 to advise startups on how to get ready for the New Normal.

Connect with them here.

Cadence Venture Capital
Target stages: Seed
Target verticals: Finance, Insurtech, Marketplace

Cadence Venture Capital invests in companies with a mindset of collaboration ahead of isolation, specialisation ahead of generalism, and scalability ahead of immediate profitability. It invests in Seed and Series A stage investments and believes in helping the region of Malaysia, Indonesia, and Singapore.

Bryan Chung is a Managing Partner at the firm.

Connect with them here.

KK Fund
Target stages: Angel, Pre-Seed
Target verticals: All

KK Fund is a Singapore-based venture capital fund to invest in early-stage tech startups across Southeast Asia, Hong Kong, Taiwan and South Korea. In April, the firm shared to e27 how it evaluates an early stage startup for investment. Some of the key factors assessed are team members, target market, exit opportunity, business model, and traction.

Koichi Saito is Founder and General Partner at the VC firm.

Connect with them here.

Aboitiz Group
Target stages: All
Target verticals: All

Aboitiz Group seeks like-minded innovators, inventors, and entrepreneurs who are committed to a solution that is compatible with its values and business goals. The company has business units that are working in various sectors from banking, property, to the food industry.

Matt Kolling is the Head of Corporate Venture Capital at the company.

Connect with them here.

Altara Ventures
Target stages: Pre-Series A, Bridge
Target verticals: Consumer, Education, Finance, Healthtech, Logistics/Supply Chain, Social Enterprise

In September 2020, Altara Ventures announced a US$100 million fund to invest in 20-25 tech startups in Southeast Asia. Backed by the likes of Koh Boon Hwee, Tan Chow Boon, and Seow Kiat Wang, the fund has recently taken part in a US$12.6 million funding round for SaaS startup FreeAgent.

Dave Ng is a General Partner at the company.

Connect with them here.

Also Read: Why e27 Pro member Incubate Fund remains optimistic about the startup ecosystem in Japan

Jubilee Capital Management
Target stages: Pre-Series A, Series A
Target verticals: All

Jubilee Capital Management seeks to invest in forward-looking innovations with the potential to impact industries, from technologies such as AI or Blockchain, IoT to robotics, and in industries including but not limited to financial services, travel, urban and lifestyle solutions. The founders of its portfolio companies are described as serial entrepreneurs who are experienced and resilient, with deep domain knowledge and have proven their ability to address problems that large companies cannot fix.

The company’s portfolio companies included Spark Systems and Vntrip.

Gan Fong Jek is the Founding Managing Partner and Chief Investment Officer at the firm.

Sun SEA Capital
Target stages: Series A
Target verticals: Enterprise Solution, Finance, Healthtech, Logistics/Supply Chain, Media

Managed by Sunway Group, Sun SEA Capital is a venture capital fund based in Kuala Lumpur, investing in Series A stage startups across Southeast Asia, Hong Kong, and Taiwan. Its portfolio companies included Intrepid Group in Singapore and The Lorry in Malaysia.

ST Chua is Principal at the company.

Connect with them here.

IES Incubator Accelerator (IES-INCA)
Target stages: Angel, Pre-Seed, Seed, Pre-Series A, Series A
Target verticals: Architecture & Construction, Cleantech, Consumer, Energy, Enterprise Solution, Hardware, Internet of Things, Manufacturing, Platform, Robotics, Smart Cities, Transportation

This investor is suitable for startups with a more niche focus. IES-Incubator and Accelerator (IES-INCA) is a strategic initiative by The Institution of Engineers, Singapore (IES) to support engineers in technopreneurship and new technology business ventures. The programme is uniquely designed to focus on engineers, engineering and deep tech.

Andy Andrew Wee is a General Manager at the programme.

Connect with them here.

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Ready to start fundraising? Start building your investor network! Use our Connect feature to directly connect, engage, and speak with the most active investors in the region. Connect is exclusive for e27 Pro members, but you can try it out for free. Head over here to start connecting.

Image Credit: yurolaitsalbert

The post These 10 startup investors are ready to Connect with you appeared first on e27.