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Boutique hotelier Artotel secures Series B financing to grow via M&As in Indonesia

Indonesia’s boutique hospitality and lifestyle company Artotel Group has secured an undisclosed amount in a Series B financing round led by Indies Capital Partners, alongside creative industry-focused Benson Capital.

With the new capital, Artotel intends to pursue a merger and acquisition strategy to expand across Indonesia. 

Another portion of the funding will be used to strengthen the group’s core infrastructure, digitise its operations and enhance sustainability throughout the organisation.

“With Indonesia’s hospitality sector at a critical juncture, Artotel is investing heavily into future growth with a focus on quality guest experience and an enhanced geographic footprint,” said founder and CEO Erastus Radjimin.

Targeting Indonesia’s first and second-tier cities and upcoming tourism locations, Artotel is set to roll out 29 new properties around the country, bringing the total number of its properties to over 50 by 2023.

The company will also continue operating properties and building new two- and three-star hotels under the Kyriad brand, its latest acquired hospitality brand launched by France-based Louvre Hotels Group. 

Also read: From the contributor community: The future of travel, user retention strategies, and more;

Co-launched in 2013 by siblings Erastus and Christine Radjimin, Artotel has four integrated pillars: hotel (stay), food and beverage (dine), event management (play), and curated merchandise (shop).

The group offers a range of lodgings, ranging from cheap hotels to boutique hotels to premium stays, from mass-market to luxury.

Bobotel, Roomsinc, Artotel are among its hotel brands.

Today, Artotel’s hospitality portfolio has 3,000 rooms, including the 1,300 rooms added from its acquisition of Kyriad’s Indonesia operations. 

The group also provides autonomous management of restaurants, bars, and beach clubs in the food and beverage business. It employs a technology-driven strategy to enhance hotel operations infrastructure better to manage booking, management, and guest relations. This covers activities such as brand activation events, online cultural events, and food and beverage delivery.

“Although impacted in the last two years, we are optimistic that Indonesia’s tourism industry will continue to grow post-pandemic based on a burgeoning domestic middle-class and strong international appeal,” said Avina Sugiarto, senior VP at Indies Capital.

Artotel stated that it has consolidated and restructured the company through business planning, increasing business margins and customer satisfaction.

According to the “Hospitality Real Estate Sector In Indonesia” 2020 report, tourism is a significant growth driver for the hospitality industry in Indonesia. The hotel industry is said to be well-developed, offering from five-star hotels to humble guest homes. In 2018, five-star hotels accounted for 39.29 per cent of all the hotels around the country.

The region has also witnessed a clutch of rising travel-tech startups that attract good deals in 2020-2021, signalling the bounceback of the hospitality sector after the pandemic. This includes Singapore’s Vouch and PouchNATION, Indonesia’s Bobobox, and the Philippines’ Mosaic SolutionsVelocity Ventures has also closed its US$20-million fund dedicated to hospitality & travel startups in Southeast Asia this June.

Image Credit: ARTOTEL Group

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PETRONAS FutureTech 2.0 to catalyse tech startup innovation in the energy sector

Arni Laily, Head of PETRONAS Ventures

Market trends may come and go, but one industry that remains relevant and is gaining ever-increasing importance is the energy sector. While some industries go through occasional dips, especially with the global health crisis upon us, the important role of energy has only been magnified by the unpredictable global events that shape how we live.

The energy sector now faces the crucial responsibility of spearheading innovations in many key areas and emboldening startups and companies from other relevant verticals to initiate growth and innovation within their own industries. 

PETRONAS, a global energy and solutions partner with a presence in over 50 countries, recently launched the second edition of its technology accelerator programme, PETRONAS FutureTech 2.0, as part of the company’s initiative to move towards a culture of open innovation within the startup landscape.

What is FutureTech 2.0?

FutureTech 2.0, led by PETRONAS via its corporate venture capital arm PETRONAS Ventures in collaboration with government-linked companies (GLCs) Telekom Malaysia Berhad (TM) and Sime Darby Plantation Berhad (SDP) as well as global venture capital firm 500 Global, complements PETRONAS’ commitment in delivering cleaner energy solutions to achieve its net-zero carbon emissions target by 2050. 

The accelerator programme, which is held from 30 August 2021 to 19 November 2021 also supports Malaysia’s aspiration to spur growth among local startups and venture capital ecosystem builders by working closely with the National Technology Innovation Sandbox programme — an initiative sparked by the Ministry of Science, Technology and Innovation. 

FutureTech 2.0 revolves around three key areas: Facilities of the Future, Future of Energy, and New Chemicals/Advanced Materials. These particular focus areas are aligned with PETRONAS’ technology agenda.

Also read: Japan’s Aichi prefecture all set to build the city of the future by co-creating with startups

Serving PETRONAS’ business needs as it explores new growth opportunities, the 12-week accelerator programme empowers both participating startups and PETRONAS’ business units to find best-fit use cases to address current pain points, catalyse growth and future-proofing. 

FutureTech 2.0 offers its cohort a blend of global and local learning experiences, which includes masterclasses from 500 Global, mentors and local industry experts. The bigger value proposition of the programme is that the participants are able to have access to the expertise and networks of PETRONAS and its corporate partners, where mentors share relevant pain points within specific business segments. 

Other programme benefits include fire-side chats with successful founders and global/local ecosystem builders, access to 500 Globals’ programme perks and networks, potential investors, GLCs, and partners.

FutureTech’s non-traditional approach

Apart from the intrinsically non-traditional framework of the accelerator programme which offers a unique two-way engagement between participating startups and corporate partners, FutureTech 2.0’s unique approach to present industry problems also manifests in PETRONAS Ventures’ drive to disrupt existing markets. 

Head of PETRONAS Ventures, Arni Laily Anwarrudin explained, “We need to go beyond just oil and gas, which means we have to move towards a broader energy sector. So partnering with startups is the way to go because it provides PETRONAS with the insider intelligence and insights needed to accelerate in areas we may not currently see [from the perspective of] a traditional oil and gas company.”

Through this framework, all participating parties gain value from each other’s wealth of knowledge and experience, harnessing key contributors that help accelerate each other’s journey towards a healthy market strategy.

Also read: IES-INCA partners with e27 to support deep tech innovators

The partnership, therefore, changes the corporate innovation landscape and trend by encouraging the innovation culture using agile approaches. By leveraging on the non-traditional thinking embedded in startup culture and the industry know-how of corporates, both stakeholders stand a better chance at fostering smarter, stronger, and more resilient forms of innovation.

Moreover, PETRONAS also believes in internalising important processes in approaching how startups operate. Through FutureTech 2.0, participating startups are able to extend their services and commercial offerings with PETRONAS and its corporate partners in ways that are lean and agile while still conforming with corporate governance standards. In a nutshell, this helps fast-track their ability to commercialise within PETRONAS and the partners’ ecosystem.

Focusing on energy, industry, and digital innovation as key areas

Following the success of the first FutureTech programme in 2019, PETRONAS recognised bigger prospects towards nation-building and saw collaborating with major corporations such as SDP and TM as the way to further nurture the ecosystem. 

FutureTech 2.0 also seeks to create socio-economic impact for the community through various channels, including education and skill investment. The programme also aims to foster tech-driven innovations that support the United Nations’ Sustainable Development Goals.

Arni said, “Technology as a differentiator is the central thrust of our technology agenda. We are steadfast in advancing selective technologies whilst accelerating pace of delivery via critical and strategic collaborations that add to our resource and reserve.” On top of improving efficiencies and operational excellence, she added, PETRONAS strives to differentiate their offerings to gain a competitive and resilient advantage in the energy market.

Diversity in participating startups

FutureTech 2.0 prides itself on prioritising startups with breakthrough technology or innovative business solutions — “disruptors” that can exhibit exemplary talent in improving how we observe, strategise, and execute deployment in PETRONAS as well as its corporate partners, TM and SDP. As such, this year’s participants encompass a diverse slew of startups coming from a wide array of verticals.

Also read: Blue skies for Malaysia’s drone industry with Aerodyne

The FutureTech 2.0 cohort of 20 promising startups include Aerodyne, a drone-based enterprise solutions provider; Poseidon, a digital monitoring technology to assess onshore/offshore structural integrity in real-time; and Boom Grow, a 5G-connected vertical farm. They are only some of the most innovative tech-driven startups in Malaysia today.

Selected startups will receive continued support from PETRONAS, TM, and SDP after the programme, should future partnerships be deemed necessary.

PETRONAS Ventures’ reputable global stamp

PETRONAS’ commitment to raising the bar doesn’t end at inculcating global standards to local startups. Through PIVA Capital in San Francisco, PETRONAS Ventures has a strong partner to tap into the Silicon Valley ecosystem which boasts the largest pool of quality resources in terms of capital, talent, investors, mentors, and scaling experience. The company has also successfully pursued networking opportunities with the symbiotic ecosystem comprising universities, startups, large tech companies, and venture capitalists among others.

With its Environmental, Social, and Governance (ESG) framework, PETRONAS is able to create value upon investing in nine companies to date and help to redefine trillion-dollar markets such as agriculture, manufacturing, chemicals, transportation, and energy.

Startups chosen to participate in FutureTech 2.0 become part of the same legacy of excellence that the company has built. As PETRONAS moves toward revolutionising the energy sector not only in Malaysia, but also across the world, the FutureTech 2.0 cohort of startups and their innovations become instrumental in shaping the future.

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This article is produced by the e27 team, sponsored by PETRONAS Ventures

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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Ecosystem Roundup: Draper Ventures’s arm, InnoVen Capital launch new funds; Tiki raises US$136M Series E

Tiki raises US$136M in second tranche of Series E
UBS AG invested ~US$40M and Mirae Asset put ~US$27M; Tiki was valued at ~US$740M in the first Series E tranche, which came from investors such as AIA, Taiwan Mobile and Appworks.

Antler closes over US$300M, to provide follow-on capital for its portfolio startups
Backers are Schroders, Vækstfonden, and Phoenix Group; While its primary focus remains pre-seed stage investments, Antler will now start offering its portfolio companies follow-on capital as they grow and scale up to Series C.

InnoVen Capital launches new fund targetting SEA startups
InnoVen SEA Fund has completed its first close of US$50M with InnoVen Capital and will be seeking additional investors to participate in the fund; Its launch follows the recent launch of its US$100 million InnoVen Capital India Fund in September.

RHL Ventures looks to raise US$100M for Hibiscus fund
The VC firm has made the first close at US$50M; Hibiscus targets early-stage startups at Series A and B stages and writes cheques of US$1-5M; It has already invested in Naluri and has 3-4 investments in pipeline.

Draper Startup House Ventures launches new global fund, invests in Singapore’s Ferne Health
It will have an APAC predominance due to Draper Startup House International having Singapore as its HQs; Its reach potential includes 60 countries and 30 industries already represented on the company’s platform.

VE Capital Asia acquires Web Imp, Cashapon, TVP for US$37M to strengthen deeptech capabilities
Web Imp guides businesses in enabling digital transformation through intuitive UX/UI design and reliable web and mobile development; Cashapon acquires and elevates leading brands in the retail e-commerce market using AI and ML technology.

AUM Biosciences bags US$27M Series A to advance its targeted cancer therapies
Investors are Everlife and SPRIM Global Investments; AUM will expedite the clinical development and business growth of oncology therapies, particularly for cancers with a clear genetic marker.

Indonesian hospitality brand Artotel Group raises Series B
Investors are Indies Capital and Benson Capital; Artotel manages several hotels, restaurants, bars, and beach clubs across the country; The company, which focuses on promoting local art and artists, also has runs a branding, event management, and merchandising unit.

iSeller, the ‘Shopify of Indonesia’, nets US$8M to become a super-app for merchants
Investors are Openspace Ventures, AppWorks, Mandiri Capital and Indogen Capital; iSeller claims that it processes 1M+ transactions per month across all channels and serving more than 60K business owners in Indonesia.

ESB, the ‘Toast of Indonesia’, adds US$7.6M to its Series A kitty to develop new AI features
Investors are Alpha JWC, Beenext, Vulcan Capital; ESB is an all-in-one provider of culinary business operations software, connecting restaurants’ front-end, back-end, consumers, and supply chain partners.

ION Mobility lands US$6.8M as it prepares to launch smart e-motorbike in Singapore
Investors are Quest Ventures, TNB Aura, GDP Venture, Monk’s Hill Ventures, Seeds Capital and 500 Southeast Asia; ION Mobility will use the money to set up its manufacturing operations in Singapore and Indonesia.

Singapore venture studio to raise US$5M to invest in SEA startups
Xpdite Capital Partners focuses on seed-stage and pre-series A startups; Its portfolio focuses on travel, food, and health startups like Vietnam-based Innaway, Thailand-based Yindii, and Sri Lanka-based Findmyfare.

Pickupp extends its Series A round to US$20M with fresh capital injection from Reefknot
It will use funds to strengthen its operational efficiency to accommodate the growing use of online-to-offline services in Singapore, HK, Taiwan and Malaysia; It will also add 10+ new satellite warehouses across heartland areas in the city-state within the next six months.

Fefifo raises US$3.1M to double the scale of its pilot co-farms in Malaysia
Investors include RHL Ventures and KB Investment; Fefifo describes itself as a “cloud kitchen for farmers.” It aims to encourage the younger generations to explore agriculture as a career.

Creative Galileo rakes in US$2.5M to grow its fun, interactive learning app for kids
Lead investor is Kalaari Capital; Since its launch, Creative Galileo’s app claims to have clocked 4M+ downloads and over 500K MAUs in SEA, Nepal, Bangladesh, UAE and the US.

F&B and retail-tech solution provider eatcosys raises US$2.4M through ECG platform Fundnel
eatcosys is a platform that serves to further expedite the success journey of F&B and retail operators, supporting the progression of the business throughout; It utilises an interconnected system built on retail and financial technology, incorporating several digital platforms and fintech.

Vietnam’s AI-powered female-focused dating app Fika nets US$1.6M
Investors are Swedish firm VNV Global, Global Founders Capital and Keith Richman’s angel fund 31 Atlantic; Fika understands users’ interests, likes and the kinds of profiles they swipe for and against to create tailored matches, suggestions and recommendations to support long-lasting relationships.

Indonesian online lender’s US$1M lawsuit withdrawn
Japan’s Real Kapital sued UangTeman for alleged default on its loan obligations; However, on October 12, Real Kapital has submitted a letter to the South Jakarta District Court to withdraw its lawsuit against UangTeman; The letter also requests the lawsuit’s removal from the case register.

ThoughtFull banks US$1.1M in seed financing to scale digital mental health support across SEA
Investors are The Hive SEA, Flybridge, and Vulpes Investment Management; ThoughtFull connect users to accredited mental health professionals for daily conversations and personalised best-fit mental healthcare.

Ex-PropertyGuru, Carousell execs’ startup Surer nets US$1M to serve insurance firms in Singapore
Investors are Norway’s Kistefos, Markel Corporation’s insurtech investment arm, and unnamed angel; Surer drives network orchestration and efficient communication to help intermediaries and insurers better serve the end policyholders.

B2B e-commerce platform EI Industrial attracts seed funding from Cocoon Capital, Beenext
EI Industrial provides a SaaS e-procurement and warehouse management system to help manufacturers and construction businesses manage their purchasing processes; It currently focuses on the maintenance, repair and operation and mechanical and electrical supply sectors.

Image Credit: Tiki

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Sustainability starts at home: How I aim to tackle climate change as PropertyGuru CEO

sustainability

In early-2020, a frequent topic of discussion at my family’s dining table was living sustainably and how we could overcome the hurdles that individuals, communities, and cities faced.

With a teen and a child below the age of ten, my wife and I have been passionate about infusing the right values and behaviours around sustainable living from a young age.

We sought to lead by example– trying our best to make better decisions, whether sorting our trash or setting up a hydroponic urban farm in our balconies.

As we assessed our household’s carbon footprint, there was certainly room for improvement – like using the air conditioner less often – and we definitely made an effort.

Then, like most of the world, our community was hit by COVID-19 last year. Circuit breakers, working from home, home-based schooling, and various restrictions disrupted daily routines.

Our focus on sustainability slipped away as we took care of our loved ones and prayed for vaccines. Cars disappeared from the roads, air travel ground to a halt, tourism vanished, and factory activities slowed down.

Amidst the whirlwind of changes, something amazing happened as well. With us marooned in our homes, the Earth began to heal itself. The air was suddenly (and momentarily) cleaner again. Nature thrived, and our planet seemed almost to take a deep healthy breath.

Also Read: COVID-19, the environment, and the tech ecosystem: what opportunity is available out there for us?

As our attention turned to health and economic recovery, more and more businesses, governments, and societies started to recognise a responsibility that extended beyond just ourselves. We had to bounce back not only stronger but also better – socially and environmentally.

Today, as I reflect on our progress over the past few years, especially amidst the pandemic, I realise that more than ever before, sustainability requires a stewardship mindset.

Every individual, family, and business needs to come together to ensure that our precious resources are cared for and used in ways that create a better tomorrow.

PropertyGuru started at home

While discussions around sustainability have now been around for years, it has remained a complex topic, with many people missing the link between eco-living and home choices. Today, sustainable living can take many forms– environment quality (ventilation, daylight, air quality etc.), energy and water efficiency (less power consumption, generate energy on our own), responsible resource usage (recycle and renewal of resources), and/or commutation (bicycle, access to public transportation, carpool etc.).

Singapore is my home, and the latest trends look promising.

Our latest Consumer Sentiment Study H2 2021 found that 82 per cent of Singaporeans are willing to consider paying more for an environmentally sustainable home. This includes millennials (83 per cent), Generation X (79 per cent) and Baby Boomers (86 per cent), indicating more ecological and socially conscious buyer behaviour across generations.

For these Singaporeans, the top three desired sustainability features in their future home are smart cooling systems (65 per cent), high insulation windows and doors (60 per cent), and solar panels (54 per cent).

It thus comes as no surprise that Singaporeans welcomed the government’s effort in its HDB Green Towns Programme, with 2 in 5 (46 per cent) willing to pay more to live in one.

As Singapore strives to become a smart and green nation, sustainable urban living should take centre stage. It starts right from the home we choose, and how we build and manage it plays a critical role in ensuring our cities and communities are healthy.

To make sustainability a key consideration in today’s consumers’ property search, we have just launched PropertyGuru Green Score, a sustainability rating attributed to condos and HDBs listed on PropertyGuru.

Also Read: How no-code platforms are providing a boost to the real estate industry

The Green Score parameters include the projects’ accessibility to public transport (within 400m), green building rating assessment such as BCA Green Mark certification, and sustainability awards won from ‘PropertyGuru Asia Property Awards’ to help property seekers understand how eco-friendly a project is.

PropertyGuru Green Score

 

When it comes to public transport accessibility, cars, buses, and trains are among the biggest emitters of greenhouse gases, responsible for one-quarter of direct CO2 emissions globally.

In fact, a car carrying only the driver uses nine times the energy used by a bus and 12 times that a train uses on a per passenger-kilometre travelled basis.

As such, choosing public transport over a private vehicle is the first and easiest step to lower our carbon footprint– and why we chose the number of MRT stations and bus stops within 400m of a project to be a key parameter for PropertyGuru Green Score.

The proximity to public transport reduces our reliance on private modes of transport, and by giving such projects a better Green Score, we encourage consumers to make sustainable choices.

By living near a bus interchange and/or MRT station, not only will you be more encouraged to use the bus and/or train to get around, but you will also walk to it to begin your commute.

On the other hand, construction accounts for over one-third of the world’s energy consumption and nearly 40 per cent of the total CO2 emissions, urging developers to improve efficiency in their buildings’ design and infrastructure.

Also Read: Southeast Asia is in plastic waste crisis, and these 16 sustainable startups strive to turn things around

Environmental awards like PropertyGuru’s Asia Property Awards and the BCA Green Mark certification recognise such efforts to encourage more property seekers to take such attributes into account in the home buying process.

To check a development’s Green Score, property seekers can visit the project page for condos and HDBs on PropertyGuru.com.sg. The score ranges from 1-5, denoting average, good and excellent sustainability rating of the project.

Becoming the change, we want to see

Green Score is just the start for us. A transition to sustainability permeates the way we live, travel, and eat daily. Sustainable living goes beyond a corporate promise and is a way of life to address climate change.

Internally, we have undertaken a series of ‘GreenGuru’ initiatives motivating our community of over 1,700 Gurus to reduce their carbon footprint. All our offices across Singapore, Malaysia, Vietnam, Thailand and Indonesia have e-waste and recycling bins, and we have replaced single-use plastics with reusable food containers and bags.

Employees also participate in fun green challenges, such as switching to vegetarian lunches and using public transport for a month to reduce individual carbon emissions.

To increase transparency around sustainable living practices, our resources also include green living guides for property seekers in Southeast Asia.

We’re also working with property developers in the region and have seen an increase of 50 per cent in entries of green projects nominated for sustainability awards categories at our PropertyGuru Asia Property Awards.

This means that even when property seekers buy homes as an investment, making a greener choice will likely result in increased demand from renters and future buyers.

Today, we commit to making changes in our own business to meet the goals stated in the Singapore Green Plan 2030 and building a better home for our future generations.

In line with this, we are working on a Greenhouse Gas Emission Audit and Reduction Plan to reduce our greenhouse gas footprint further. The plan goes hand in hand with our Green Travel Policy for business travel decisions to be eco-conscious.

Building  better and greener homes and communities

It is heartening to see that since its soft launch in February 2021, nearly 2 million property seekers have viewed the Green Score.

With all of us spending more time at home, we have re-discovered the importance of sustainable living. In time, I hope this will be a natural way of life, and each of us will place environmental considerations top-of-mind.

Also Read: Life after COVID-19: How and why smart cities need to focus on sustainability

As a parent, a business leader, and a citizen of the world, I am clear on my role in helping build better homes and communities for the future.

Conscious that change starts from me, I have actively worked with my immediate circle of influence to catalyse change. Internally, as a company, we have become more mindful of our responsibility to fuel positive practices in the community we have been a part of over the last fourteen years.

My kids and their peers deserve a planet that is healing itself with the help of each of us who inhabits it. To build this future, we must choose to make better decisions and demand more from ourselves, collectively fighting against climate change.

This change needs to start now – in our mindsets, our behaviours, and our actions.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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Image Credit: fizkes

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Malaysian F&B and retail tech solutions firm eatcosys raises US$2.4M via Fundnel

eatcosys, a provider of F&B and retail tech solutions in Malaysia, has raised RM10 million (US$2.4 million) via the equity crowdfunding platform Fundnel and a concurrent private placement.

Over 90 investors from the retail, financial services and consumer sectors participated.

This round brings the company’s valuation to more than US$24 million.

The funds raised will primarily expand eatcosys’s technological development and strategic investments in the fintech space. This, in turn, will help small retail businesses attract, retain and reward customers through existing platforms such as FoodAdvisor, MyCookingStory, FeedMyGuest, VMO, BoozEat, and Malting Point.

Also Read: How a few up and coming virtual kitchens revitalise the pandemic-hit F&B industry in Malaysia

eatcosys co-founder Tham Lih Chung said: “With the funds raised, we aim to uplift every aspect of the retail industry, from the small independent businesses to large enterprises. As a result of this, we hope to revive other areas of the Malaysian economy as well.”

eatcosys provides an integrated platform that works across three fundamental verticals: platform services, technology-enabled services, and fintech.

The platform utilises an interconnected system built on retail and fintech. It addresses the operational needs of businesses throughout their life cycle. Among these include formatting the framework for web pages, crowdfunding, management for engagement purposes, incubation in terms of development, and other services that fulfil the needs of their clients.

IPO plans

The homegrown retail & fintech solutions provider also has plans for an Initial Public Offering.

“We have a strong mission for supporting the growth of retailers in Malaysia. We want Malaysians to be able to share in our growth and the growth of our country. Crowdfunding is the first step. We have near-term plans for an IPO on the ACE Market, so I hope our fellow Malaysians will support us with this initiative,” said Chung.

Also Read: How cloud kitchen startup COOKHOUSE, started amidst COVID-19, managed to win 35 F&B clients in Malaysia within a year

Headquartered in Singapore, Fundnel has a presence in four countries across Asia Pacific. Since 2016, the platform has facilitated over US$500 million in essential funding for private companies and funds in Southeast Asia from its global network of 15,000 investors.

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