Earlier this week, Malaysia’s Aerodyne clinched the #1 spot globally for drone companies. In entrenching itself as a firm leader in this rapidly expanding market and by fostering the rise of more drone companies, Malaysia has ramped up several “live” drone test sites through the National Technology & Innovation Sandbox (NTIS).

Against a backdrop of a drone market revenue that is expected to double to US$17.9 billion in 2025 in Asia alone, as well as a global drone market forecast to achieve US$41.3 billion in 2026, it is clear that drone technology has captured a steadily rising audience.

Considered an emerging technology sector just a couple of years prior, momentum in drone technology is exciting as Malaysian players ready themselves to take on opportunities across the world. Such opportunities are exciting not only for the low-touch, high-tech development work involved but also for the jobs they create and the value they add to the economy.

Already, Malaysia has a few bright sparks in the drone industry. 

The world’s top-seeded drone-based solutions provider in 2021, Aerodyne, for example, develops smart cities through drone technology innovation in surveillance and security, infrastructure development, and more.  

The task at hand is to create a basket of such companies and expand the ecosystem so that we elevate the rewards and returns from such ventures.

Sandboxes for the skies?

In gaining a fast-mover advantage, Technology Park Malaysia, through the  National Technology and Innovation Sandbox (NTIS), has taken proactive measures to foster the growth of the drone technology and robotics industry. 

Today, several drone development areas in FELDA Mempaga, Pahang, Drone and Robotic Iskandar (DRZ Iskandar), and Urban Drone Delivery in Cyberjaya are in motion. Pilot projects here are aligned with the Ministry of Science, Technology and Innovation (MOSTI) 10-10 Science, Technology, Innovation, and Economy Framework (MySTIE 10-10), aimed at transforming Malaysia into a high-tech and high-income nation through innovation-based solutions.

Also read: Facebook Community Accelerator Program introduces the 19 communities of the 2021 APAC cohort

In the first year since its launch, the NTIS attracted more than 25 Malaysian companies developing drone technology, reaching out for regulatory, commercialisation, and funding support. The sandboxes provide a range of live sites where the drones can be tested for a variety of specific applications, on different terrains, for different ranges and more.

Ultimately, the value of drone services lies in how they are applied in various sectors such as e-commerce, logistics, or mobilisation of pertinent resources or medicine to rural, remote areas, or those affected by natural disasters. It also offers important value in infrastructure management and security surveillance in smart building maintenance, maritime surveillance, urban agriculture, and more. And this is where it gets exciting for the rakyat.

For this reason, Area 57 at Technology Park Malaysia was recently launched as the fourth drone-centred NTIS site. With an extensive 5 acres of land, Area 57 aims to provide an integrated ecosystem for key facilities and services which include research, development, testing, certification, manufacturing, commercialisation, and maintenance of drone technology and solutions in order to benefit the drone community of users and producers. 

Area 57 will be equipped with a 100-meter drone runway, 300 square meters confined netted drone testing area, a mock-up site, drone application testing, hangar, laboratory, manufacturing equipment, training facilities, and prototype testing area, an operations office, as well as service and maintenance workshop for operators. It is currently the only legitimate fly-free drone area within Klang Valley. It is expected to unpack various opportunities through the use of Artificial Intelligence (AI) technology for data operations, analysis, and large-scale optimisation (Drone Tech, Data Tech & Digital Transformation).

Bright lights, smart cities

The current world population of nearly 8 billion is expected to reach 8.6 billion in 2030, 9.8 billion in 2050 and 11.2 billion in 2100 — sustainable smart cities are no longer just “nice-to-haves”. They are a necessity. 

For example, the Drone & Robotics Zone (DRZ) at Iskandar, Johor, was formed to realise the vision of an integrated sustainable living area.

Here, technology and data are purposefully designed to make better decisions and deliver a better quality of life; from the air we breathe to how safe we feel when we walk along the streets at night.

Also read: ScaleUp Malaysia and e27: a partnership that could turn the tide for startups in the region

In order to accelerate the growth of IR4.0 in Malaysia, Iskandar NEXT (New Economic Experience & Talent), a flagship initiative by Iskandar Investment Berhad (IIB), has given rise to the DRZ Iskandar where there will be efforts to upskill local talents and to move them higher up the technology value chain, thus creating significant socio-economic impact, such as:

• Over RM351 million investments targeted by 2025. 
• Up to 1000 high-value jobs created in drones and robotics by 2025. 
• Over 70 technology companies set up business in Medini, creating highly skilled jobs and knowledge-sharing opportunities. 

Already equipped with world-class ready-built infrastructure, IIB will further enhance Medini with advanced digital infrastructure to attract more tech-related companies to establish their footprint here.

At the core of it, our shared prosperity is the goal, and smart cities and drone technology are the means to that end. We want to utilise technology to optimise the infrastructure, resources, and spaces we share. 

Better crops, support from the skies

The sandbox in FELDA Mempaga presents drone players an opportunity to advance agriculture technology in plantations for fertilisation, land monitoring, and weather monitoring.  Here, drone technology is also assessed for its viability to support soil and field analysis, terrain mapping, crop spraying and planting, as well as plant health assessment and monitoring of yield. 

Five high-technology companies — Poladrone, Aerodyne, Braintree Technologies, OFO Tech, and Nanoezinn — were selected to stress-test various drone and robotic solutions to improve aspects of harvesting, maintenance, and fertilisation of palm oil plantations at the 25-hectare site. 

Recent discussions between drone service providers and the Civil Aviation Authority (CAAM) expedited the publishing of the Civil Aviation Directive 6011 part (II) Agriculture, which in turn opened doors for opportunities beyond these test sites. 

With this unlocked, Poladrone, for example, is now currently providing spraying services for Kuala Lumpur Kepong Berhad, Sime Darby Plantations Berhad, Felda, Genting Plantations, and others. They’ve also doubled the company headcount and are on track to achieve revenue targets.

On a similar note, globally-acclaimed drone solutions provider, Aerodyne, has provided immense support in providing farmers with precision agriculture through drone technology and Artificial Intelligence to aid in increasing crop yields and profitability.  

Though still in its early days, the use of drones and robotics in agriculture could potentially reduce up to 50 per cent in the labour force, generating up to 30 per cent in productivity improvement. At the same time, the application of drones in agriculture could set out career prospects for the younger generation in agriculture, whilst potentially improving the socio-economic outcomes for more than 200,000 ageing settlers working and living on Federal Land Development Authority (FELDA) land, with their families.

Smart logistics

Then, there is the Urban Delivery Drone Sandbox in Cyberjaya, where drones are being tested for delivery of packages, with the aim to use drones for the delivery of crucial medicines, essential supplies, and more to rural and remote areas, or those affected by natural disasters in the future. 

Such delivery services could positively impact healthcare services, as 24 per cent of the country’s population lives in rural areas. With delivery drones, medicines, vaccines and necessary supplies can be transported to hard to reach areas quickly and efficiently.

Also read: Kawasaki Heavy Industries invites innovators to co-create solutions to global challenges

Earlier this year, NTIS partnered with AirAsia Digital’s logistics arm, Teleport, to test delivery services in urban areas using automated drones through a six-month phased approach. This approach tested the capability, experience, approval process, deployment readiness, and service expansion of the drone operators, as well as the long-term feasibility of delivery drones. 

The urban delivery drones are estimated to make a contributing impact surpassing USD70 billion in the global smart mobility market size by 2027 and generate up to USD7.4 billion in global market size that is specific to drone package delivery by 2027. 

Fly-tech: Challenges to overcome

In order for the industry to rise, there are some obstacles it needs to weather. Public safety guidelines being one.

As such, drone companies will need to abide by strict certification and compliance for drone operations, which may result in long periods for permits, limited guidelines for Beyond Visual Line of Sight (BVLOS) flights, and multi-agency approvals.  

We laud the Civil Aviation Authority of Malaysia (CAAM) which has been actively engaging with drone operators to ensure public safety as a high priority in addition to facilitating technological advances. 

Here, NTIS facilitates startup companies operating in regulated industries and vertical technologies such as healthcare, drone operations, agriculture, communications, mobility, etc. that face obstacles and challenges in terms of regulatory or innovation to accelerate such multi-agency discussions. 

Without a doubt, drone technology development efforts must be intensified and we have set our sights on things above to take us on the path towards recovery, rising above the present-day challenges, and into a future of unlimited possibilities. 

With better case studies and adaptive rules that drive innovation, we believe that TPM is poised to help Malaysia achieve its goal of becoming a major leader in the drone technology industry. 

The game is afoot accelerating our STI journey and transforming our nations’ technology landscape. Be part of the revolution. Let’s take flight together.

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

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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Singapore-based Qapita, a fintech startup focused on employee stock ownership plans (ESOP) and cap table management, has received US$15 million in a Series A round of investment.

East Ventures (Growth Fund) and Vulcan Capital co-led the round, with participation from NYCA and other existing investors MassMutual Ventures and Endiya Partners.

Several existing angel investors, including Alto Partners; partners of the Northstar Group, K3 Ventures, and Mission Holdings; Anjali Bansal (founder of Avaana Capital); and Sujeet Kumar (co-founder of Udaan), also co-invested.

Also Read: Qapita banks US$5M pre-Series A to enable companies to digitally manage their ESOPs and cap table

Qapita intends to utilise the money to add more products to its platform to provide solutions for private companies, startups, investors, shareholders and employees. It also plans to facilitate liquidity solutions via a digital marketplace, enabling transactions for companies between investors and employee stakeholders.

A part of the capital raised will amplify Qapita’s client base across Singapore, Indonesia and India.

The new round comes less than six months after Qapita bagged US$5 million in pre-Series A. Before that, it attracted US$1.8 million in seed funding in September 2020.

Qapita was founded in September 2019 by Ravi Ravulaparthi (CEO), Lakshman Gupta (COO) and Vamsee Mohan (CTO). Its SaaS platform helps private companies and startups record and manage their cap tables and ESOPs. It also aims to digitise the issuance of equity awards and shares.

In other words, it solves the pain points relating to HR (ESOP), finance and fundraising for private companies, investors, shareholders and employees. The firm’s marketplace will enable secondary transactions for these stakeholders.

Qapita estimates that more than US$150 billion of equity will need liquidity solutions. The startup expects the value of private securities in this region to exceed US$1-1.5 trillion (with 200-250 unicorns) in the next few years. So scalable digital solutions will be critical for such an ecosystem to thrive.

Currently, Qapita employs 65 people across Singapore and India. It plans to scale up talent across India, Indonesia and Singapore shortly.

Also Read: Future Flow’s cap table helps founders easily monitor the evolution of their stake, equity dilution

CEO Ravulaparthi said: “We are in some of the fastest-growing private markets in the world. It is an incredible time to build an operating system and transaction rails for private company ownership in this region. This is about leveraging tech to enhance transparency, access, efficiency and liquidity in private markets.”

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Image Credit: Qapita

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The answer is short: regulators globally are still trying to decide what to do about crypto. Several companies have applied to the US Securities and Exchange Commission (SEC) to approve their crypto ETFs only to get rejected.

Several ETFs track companies that are active in the crypto space. But none of these ETFs are currently holding cryptocurrencies.

Can we move out of this status quo, and what is the Monetary Authority of Singapore (MAS)’s stance in this?

Discussions have been ongoing since at least 2019, but the MAS has relatively few regulations for crypto in place and does not (entirely) recognise cryptocurrencies as legal tender. Regulations such as the payment services act are forward-looking but still mainly focused on KYC/AML.

Singapore has a clear opportunity to be the first, but MAS seems to follow a wait-and-see approach. However, this appears to be changing as DBS has recently gotten an in-principal approval to provide crypto services.

Once licensed, DBSV, as a member of DBS Digital Exchange (DDEx), will directly support asset managers and companies to trade in digital payment tokens through DDEx.

Anyway, that’s not an ETF yet, but definitely, a giant leap forward as this could bring the trading of crypto into the mainstream with a trusted institution.

The above is an exciting move from MAS, given the recent crackdown on other ‘new’ exchanges such as Binance.

Why do we want a crypto ETF? An ETF is a basket of securities, shares of which are sold on an exchange. They combine features and potential benefits similar to those of stocks, mutual funds, or bonds.

Ease of investing

If you are bullish on the crypto and blockchain industry and you want to get exposure without going down the technical rabbit hole, an ETF would be ideal. Such an ETF could hold the five to 10 coins with the largest market cap, rebalance from time to time, and an investor could apply a buy-and-hold strategy.

Also Read: Are CBDCs better than Bitcoins? Here’s why Asia should bank on them

Diversification

Cryptocurrencies are volatile, and no one knows which projects (Bitcoin, Ethereum or one of the 6,500 others) will win in the long term. By buying a group of cryptocurrencies, investors can achieve a healthy level of diversification.

Platform risks

Cryptocurrencies are traded through various platforms, each having its owns risks and challenges. An ETF could (partly) mitigate these risks.

Passively managed and low fees.

Investors could already work with licensed fund management companies (typically only available for accredited investors) to maintain a portfolio of cryptocurrencies. Still, they would be exposed to high management fees as the manager will ‘actively’ manage the portfolio and sometimes charge as high as five per cent per year.

As an ETF is passive management, a manager typically charges only 0.2–0.8 per cent per year.

So what’s stopping the MAS?

Custody or not?

A traditional company licensed as a fund manager typically takes custody of funds of her investors and invests those funds according to the scope of the mandate given to them.

The challenge with crypto is that a new generation of companies such as the exchange Binance could claim that they never take custody due to the decentralised nature of cryptocurrencies on the blockchain. Hence, they are just facilitating the transaction on the blockchain.

MAS is, however, actually quite clear on what kind of services should be licensed: Buying or selling DPT (“digital payment token”) or providing a platform to allow persons to exchange DPT in Singapore.

And with that statement, the discussion on custody is pretty much closed as almost every company providing services in the crypto industry will fall under this scope.

Security or commodity?

Singapore laid out the licensing rules for Capital Market Services (stock, bonds, funds etc.) in the Securities and Futures act.

In this same act, securities are classified as: shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership.

Also Read: Blockchain and Bitcoin for business 101 with Justin Renken

Cryptocurrencies probably don’t fit the bill here, and so it seems that the Securities and Futures act does not apply to companies dealing with cryptocurrencies.

The question arises, though, how the MAS views an ETF purely holding gold or other commodities?

There seems to be room for exceptions to the previous definition: any other product or class of products prescribed.

It is not clear how and if this exception has was in the past.

SEC in the United States

The SEC in the US claims that cryptocurrencies are supposed to be classified as securities and not as a commodity like gold. Given the status of the SEC in the world, whatever they end up deciding will likely impact Singapore as well.

But, if we assume for now that (in Singapore) crypto is not a security, will it then be recognised as a commodity or currency?

Currency or not?

The Payment Services Act broadly covers the ‘fintech’ industry: Technology is transforming the world of payments and has opened up opportunities for transactions to be more convenient, faster and cheaper.

MAS has made some comments and seems to recognise stablecoins as a new form of ‘money because these coins’ value is stable.

With that, MAS also seems to think that ‘other’ non-stable cryptocurrencies are not to be recognised as a ‘new form of money and it even classifies stablecoins as ‘next-generation crypto: Stablecoins have emerged as a new class of cryptocurrencies intended to be relatively stable in value to address concerns over excessive price volatility of the first generation of cryptocurrencies.

And then on the definition of money, MAS states:

“People also need to trust that the value of the money they hold will remain broadly stable over time, so that they are able to use it as a store of value and as a medium of exchange in the future.”

With the Payment Services Act, Singapore is light-years ahead of the US (and most other countries, for that matter). SEC in the US treats crypto as securities (even with all sorts of complicated implications). Singapore has the forward-looking Payment Services Act which allows for cryptocurrencies’ entry into society.

Conclusion

It seems clear that the approval and launch of a crypto ETF in Singapore is a matter of time given the discussed advantages such as diversification and ease of investing for investors.

Also Read: Tesla is now accepting bitcoin. Are crypto payments the future of business?

MAS seems to have a lot of room to provide approvals within existing regulations under the Payment Services as Securities and Futures act. It appears that MAS favours viewing cryptocurrencies as a form of payment for now rather than a security.

Should MAS decide to move forward and give approval for an ETF, this will likely provide a massive boost to the SGX and ‘crypto-friendly’ ecosystem in Singapore.

It seems that the advantages outweigh the risks.

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VFlowTech, an energy storage solutions provider in Singapore, today announced the raising of US$3 million in a pre-Series A funding round led by Wavemaker Partners. 

 SEEDS Capital, Sing Fuels and other angels also participated.

VFlowTech will use the funds to expand its operations and scale up the production of its “redox flow battery energy storage solutions”.

The startup was established in 2018 by Dr Avishek Kumar (CEO) and Dr Arjun Bhattarai (CTO), in collaboration with Entrepreneur First. It also received generous support from SG Innovate and the Nanyang Technological University, Singapore.

Also Read: VFlowTech’s recyclable energy solution with an expected lifespan of 25 yrs seeks to replace Li Ion batteries

VFlowTech has developed a low cost, reliable, and long-duration energy storage solution, called vanadium redox flow (VRF) battery. This battery works through the continuous reduction and oxidation reaction between the vanadium redox couples with no detrimental issues and with the cross-mixing of the redox couples. Due to this unique setup, and the battery provides stable performance over 20 years.

The firm’s vision is to achieve diesel-free status in remote and rural areas by providing communities there with low-cost, reliable cleantech solutions.

So far, VFlowTech has built and deployed energy storage systems in Singapore, Australia, and Japan to support various applications, with a pipeline of large-scale infrastructure projects in key markets like Australia and Africa.

VFlowTech also plans to collaborate with strategic partners in other countries to develop and install self-reliant green charging stations for the burgeoning electronic vehicle (EV) industry. Its latest project is to develop an intelligent electric car fast-charging station concept for existing gas stations in South Korea.

“The energy storage market is growing exponentially and plays an important role in the cleantech transition across the globe,” said CEO Kumar. “We are on a mission to reinvent the energy storage solution with our modular vanadium redox flow batteries to enable a 24/7 shift to renewables.”

The company has developed three main modular products, namely 5 kW/30 kWh, 10 kW/100 kWh, and 100 kW/500 kWh systems.

According to a press statement, its 10kW-100kWH system can provide up to two days of energy autonomy on average for most small households and remote communities in the region. It also solves the concerns of performance degradation, thermal runaway, and product safety of current battery systems.

Also read: 13 cleantech startups to watch in Asia

Unlike lithium-ion and lead-acid batteries, flow battery systems can scale their storage power (kW) and energy (kWh) independently, with power and energy deployments varying depending on the size of the battery stack and the volume of electrolyte contained in the tanks.

As stated by the International Energy Agency’s latest market update, worldwide renewable energy capacity increased by 45 per cent in 2020, the greatest year-on-year growth rate in the last two decades. The “Battery Energy Storage Market, 2021-2028” reported that the sector is slated to be worth US$26.81 billion in 2028, up from US$7.81 billion in 2020.

The development of cheaper long-duration storage than lithium-ion batteries also draws attention from worldwide investors, including tech celebrities Bill Gates, Jeff Bezos and Richard Branson.

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Image Credit: VFlowTech

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Decentralised finance (DeFi) is gaining increasing attention thanks to mainstream interest in crypto, such as Bitcoin. With billions of dollars flowing into DeFi protocols, offering alternative financial solutions, it’s giving people a way of earning money with the aid of innovative contract technology.

Although this industry is slowly growing in popularity across the globe, it has a much stronger appeal in the Southeast Asia (SEA) region mainly because of its potential to solve one of the region’s biggest challenges– equal financial opportunities for all.

A large chunk of the population in Asia is mainly unbanked, and one of the main reasons is steep barriers to entry. For example, banks require a minimum deposit fee or upfront charges to start their bank account. Other reasons include high transaction fees.

According to a report from the World Bank, ASEAN is home to an unbanked population of about 290 million, with only 18 per cent having access to credit, financial services, or investment products, leaving a large part of the population underbanked.

DeFi’s core technology can eliminate intermediaries, thus making transaction costs much cheaper and faster than any other digital banking service, making it a much more appealing alternative.

But then why hasn’t mass adoption of DeFi in the region still take place?

One of the key reasons is that many people still do not understand the concept of DeFi because of its rather complex nature. Even Mark Cuban, a billionaire investor well known from Shark Tank, who has been experimenting with DeFi, shared with the Defiant that it takes a lot of time to understand how to use DeFi protocols.

As a storyteller and communicator working closely with DeFi companies, I can impart a few insights into the promise of this industry to give context to it and offer tips on how to keep up.

Also Read: Ecosystem Roundup: Aspire lands US$158M funding; SG gets new US$75M crypto, blockchain fund; Ascend Money is now unicorn

A new financial system without centralised banks

As institutional investment into bitcoin and cryptocurrencies flow into the market signalled by Tesla, Square, PayPal, Mastercard, among others, it’s time for the world to start paying attention to the financial mechanisms DeFi has enabled.

DeFi platforms or protocols such as Compound (lending and borrowing), CREAM Finance (lending), and Uniswap (decentralised exchange) are enabling users to invest, borrow, lend, trade, and transact peer to peer using cryptocurrencies or digital assets.

They achieve this without needing to go through a bank or a centralised platform. This can all happen thanks to innovative contract technology created by Ethereum.

Digital lending and borrowing are not new; blockchain technology allows faster and cheaper transactions by cutting down intermediaries.

Beyond value transfers, the main growth driver of the DeFi sector is “yield farming”. Yield farming is the practice of lending crypto assets to generate high returns in the form of cryptocurrencies.

This is similar to locking money in a fixed deposit account to generate interest after a set amount of time, whereas the “financial” work is done automatically via protocols.

Though it’s highly risky, the DeFi rewards are much higher than the 3 per cent interest one might earn from a bank, and the dividends get paid out daily.

One thing that might take new users to get used to is that most of these protocols are “web3.0 native” and fully decentralised, meaning that they are run by decentralised autonomous organisations (DAOs) that have inbuilt governance systems.

Ultimately, it comes down to whether you trust a centralised organisation run by a central authority or a decentralised organisation where no single party can control the network.

We are now also seeing the first signs of these yield-bearing technologies being embedded into everyday applications such as offline map provider MAPS.ME.

As startups in this space grow, they are also receiving more attention from crypto investors and mainstream institutions, like Thailand’s oldest and largest bank Siam Commercial Bank (SCB).

Early this year, SCB launched a US$50 million fund via its investment arm SCB 10X to invest in early and growth-stage blockchain, digital assets, and DeFi startups. Calling it a “disruption”, the firm said that “it is preparing for the potential day that DeFi upends traditional banking”.

Expanding the fintech horizon

The fintech industry now needs to expand its horizon to consider DeFi, and CeFi (centralised finance) systems, as both ecosystems will play an essential role in shaping the future of finance. CeFi refers to centralised systems that bridge legacy finance platforms with the new digital asset industry. These include exchanges like Coinbase or crypto lenders such as Nexo.

The current sentiment in the market is that DeFi is multiplying and will eventually “eat” CeFi. While we will see the gap between DeFi and CeFi narrow, the natural next bridge is to the fintech industry.

Also Read: Taiwan’s blockchain ecosystem’s moment towards mass adoption

The fintech industry has come a long way with an ecosystem of challenger banks that have consumer-friendly applications and widely used products.

All it will take is one fintech to enable DeFi features on its platform to see the domino effect of fintech products and DeFi offerings collide. Fintechs should start learning about the benefits of DeFi and start integrating with projects today to stay ahead.

Keeping up with DeFi

The DeFi industry is growing fast.  In January 2020, it had a US$500 million market value. As of September 2021, its market size is nearly US$166.45 billion in Total Value Locked (TVL). Keeping up is a job on its own, which is why education is key to everything.

Allow me to share some newsletters and platforms you can start with to watch this lighting speed innovation.

Firstly newsletters like Defiant and Bankless help a lot with learning about what is upcoming. To track the activity of the growth of Defi, there are wallet platforms such as DeBank that has a good analysis tracking site; there’s also Defi Llama and DeFi pulse with variable data.

CoinGecko, the go-to crypto price and analysis tracker, is another source to consider. The top leading exchanges are Uniswap and SushiSwap, which have the most volume.

A typical inside joke in the industry is that the amount of knowledge we absorb in one month in crypto is equivalent to one human year. Cryptocurrency’s promise is to make money and payments universally accessible to anyone, no matter where they are in the world.

To see cryptocurrency fulfil this promise starts with people getting educated about industries like DeFi, holding cryptocurrency, and eventually using it in our day-to-day lives.

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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.

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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Komunidad, a provider of environmental intelligence services in the Philippines, has attracted US$1 million in a seed financing round.

Wavemaker Partners led this round, which also saw participation from ADB Ventures.

As per a press statement, this transaction will pave the way for Komunidad’s further expansion in the Philippines and the rest of Asia.

“Our expansion in Asia will focus on the Philippines, India and other emerging and developing countries where the risk index is higher. The investment will be used to grow our collection of weather and environmental intelligence datasets and to develop a more robust and intelligent platform to be released by Q1 2022,” said founder Felix Ayque.

Founded in 2019 and located in Singapore and the Philippines, Komunidad started as a tropical cyclone email service. It later evolved into a web-based environmental intelligence platform.

A SaaS company, Komunidad aims to help businesses and communities adapt to the consequences of climate change. It focuses on weather and environmental intelligence information services, with a team of meteorologists, data scientists, software developers and business development managers spread across Southeast Asia and India.

Also Read: Need of the hour: How agritech platforms can protect farmers from climate change

The startup’s proprietary platform helps environment-critical industries make informed decisions regarding safety, operational efficiency, business continuity, and natural disaster preparedness. It allows relevant weather and environmental data “to be quickly organised” into visualisations, reports and alerts that users can access via a dashboard and use to build the most suitable decision-making tools to support their operations.

Komunidad currently provides services for clients in the utilities, agriculture, mining, education, business process outsourcing, and local government sectors in Southeast Asia and India.

“The Philippines, because of its geographic circumstances, is highly prone to natural disasters, such as earthquakes, volcanic eruptions, tropical cyclones, and floods, making it one of the most disaster-prone countries in the world,” Ayque said.

“I grew up in the southern part of the Philippines, where all these events happen annually. I have seen their impact on people’s lives and businesses. On top of that, the world around us is changing. Climate change is widespread, rapid, and intensifying, according to the latest studies. It will impact the way we live, work, and do business in the future, and many countries in Asia will be most affected,” Ayque explained.

Before closing the seed round, Komunidad won contracts with local governments and companies in the utilities/energy, agriculture, mining, and business process outsourcing industries. Most recently, Komunidad won a contract in an Indian State for its impact-based weather monitoring and forecasting system.

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Image Credit: Komunidad

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Vouch, a Singapore-headquartered travel-tech company, has received US$1.1 million in a seed investment round led by Singapore’s institutional seed VC firm Forge Ventures.

The startup will use the funds to innovate its new product line of guest experience platforms and expand its business into global markets, including Hong Kong, Macau, South Korea and the UK. 

Vouch has also set up its third in-country branch in the UK to mark its entry into Europe. 

Founded in 2016 by Joseph Ling, Vouch offers digital solutions for hotel operation, aiming to transform the technology of the hospitality and travel industry in the area. 

By incorporating Vouch into their operations, businesses managing attractions and malls can strengthen productivity, increase revenue and upgrade the overall guest experience.

The firm noted in a press statement that its technology serves as an “enabler” for properties to “have the freedom and the ability to focus on things that truly matter.”

Also read: PouchNATION to launch contactless hospitality tech beyond Asia after the undisclosed bridge round

Vouch’s new guest experience platform leverages both AI and chatbot-based technologies. It allows guests to scan a QR code on their mobile phones to check-in, make room requests, order food and beverage and receive instant answers to commonly asked questions. This process steers clear of the need to download an app for a short-term stay.

During the height of the COVID-19 pandemic, hotels apply Vouch’s solutions to minimise their physical interaction with guests during check-in and other administrative tasks and navigate social distancing requirements in those premises.

“There is a genuine need for a solution that helps hotels improve manpower efficiency, and the pandemic has accelerated this need,” said Ling.

The startup claims that its services have covered more than 25 per cent of hotel rooms in Singapore, with brands such as Frasers Hospitality, Pan Pacific Group and Hyatt Hotels joining the network.

Digital transformation in the hospitality segment has become a global trend. The applications of online, mobile, cloud, IoT, blockchain, AI technologies make their marks on all fronts of the industry, including hotel management, customer service, distribution, CRM and marketing. 

According to a survey by Statista in 2020, providing a consistent, high-quality customer experience is the main business priority of travel and hospitality companies worldwide. 

Consumers also pay close attention to which aspects of the guest experience hoteliers would digitalise. Another survey conducted between July and August of 2020 showed that 73 per cent of hotel guests would use an app to open their room door. 

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Image Credit: Vouch

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Sky Mavis, the creator of the popular NFT-based game Axie Infinity, has attracted US$152 million in a Series B financing round led by US-based VC firm Andreessen Horowitz (a16z).

Accel Partners and Paradigm also joined this round.

The Vietnamese startup will use the money to build a global team, scale infrastructure, and build its distribution platform to support game developers in creating blockchain-enabled games.

The new deal follows a US$7.5 million Series A funding in May. Led by Libertus Capital, the round also saw participation from investors, including Collab + Currency, Blocktower Capital, Mark Cuban, Alexis Ohanian.

Also Read: Metaverse is around the corner and you should play a role in it

Axie Infinity was founded in early 2018 by Aleksander Leonard Larsen, Nguyễn Thành Trung, Đoàn Minh Tú, Hồ Sỹ Việt Anh and Jeffrey Samuel Kim Zirlin.

Sky Mavis invented the play-to-earn (P2E) concept for people to play, live, work and earn within virtual worlds. Its first P2E game is Axie Infinity, where players breed, battle, and trade digital pets called Axie.

NFT-based P2E games are decentralised, meaning that the players own the in-game assets that they purchase and can generate real-world rewards for their in-game activities.

Axie Infinity says it has helped create income-generating opportunities for underserved people worldwide; 25 per cent of players are unbanked, and 50 per cent have not previously used cryptocurrencies.

Axie Infinity has amassed players worldwide, with more than 1.8 million daily active users logging into the platform in August. It claims to have achieved US$33 million in everyday transactions, for a total volume of over US$2 billion.

The Mavis Hub distributes games on both PCs and Macs and will connect to Sky Mavis’s proprietary Ronin Blockchain. In addition to supporting Axie Infinity, The Mavis Hub will help game developers build and distribute blockchain-enabled games.

Also Read: Vietnam’s Sky Mavis receives US$7.5M Series A to grow its blockchain game Axie Infinity

Arianna Simpson, the general partner at a16z, said. “The Axie team has unlocked a new way to build and play games that are already completely redefining this category. The game’s growth is a remarkable testament to how deeply this model resonates with people around the world. The Axie team has triggered an earthquake in gaming, and the industry is now forever changed.”

“We are on a mission to create economic freedom for gamers. We are making this happen by turning players into owners of in-game assets unlike the traditional model where publishers, distribution platforms and game developers retain control and benefit the most,” noted Trung Nguyen, Sky Mavis CEO.

Previously, Sky Mavis raised US$1.5 million from several backers such as Animoca Brands, Hashed, Pangea Blockchain Fund, Consensys, and 500 Startups Vietnam.

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In the new normal, there is a distinctive lack of ability for different parts of the Southeast Asia tech ecosystem to reach out to each other. We used to have thousands of offline activities happening monthly, connecting various local and regional ecosystems, connecting startups, corporates, governments, and investors. Even our very own Echelon used to bring in more than 10,000 people over two days to achieve these meaningful, often serendipitous, connections. 

This is a real pain especially if you are new to the ecosystem and do not have existing networks that can introduce you to new connections. Online webinars and conferences seem to alleviate this issue temporarily, but we find the ecosystem to be craving for more.

e27’s vision has always been to assist startup founders in their journey and we have to go back to our roots, starting from fundraising. Building up the e27 Pro onto the existing e27.co platform to achieve this, today, we have served over 3000+ connections between startups and investors,  starting new conversations, and updating on each other’s progress.

To further accelerate this process and keep it as a permanent fixture of the Southeast Asia ecosystem tools, we have partnered with accelerators to further assist the startups’ in their engagements and conversations with regional investors. 

How e27 and ScaleUp Malaysia are collaborating

ScaleUp Malaysia portfolio companies are expanding their presence in new markets beyond Malaysia, with many actively raising capital from investors across the region. Using e27’s Pro capabilities, early-stage VCs can access a diverse group of emerging startups from Malaysia who are looking to scale up and take their business to the next level. 

“When I was running my last startup, e27 provided a truly valuable platform for me to connect with investors and partners from around the world. And over the last year, we have met several great companies from all over the world through e27 Pro. This is the same aspiration that we have for our companies at ScaleUp — to build their networks and be ready to expand beyond our shores,” said Aaron Sarma, Co-Founder and General Partner of ScaleUp Malaysia.

Also read: Kawasaki Heavy Industries invites innovators to co-create solutions to global challenges

“Through this partnership we aim to help investors and partners connect with some amazing scaleups without having to board a plane!” 

ScaleUp Malaysia’s partnership with e27 helps bring together the global technology ecosystem so companies and investors can efficiently collaborate, connect, and crystalise opportunities. 

Backing the best entrepreneurs in Malaysia

In 2019, ScaleUp Malaysia saw a gap in the Malaysian technology ecosystem. Many startups were unable to get beyond ideation and initial product market fit to the next stage of growth. Founded by 6 entrepreneurs and industry veterans, ScaleUp Malaysia formed to help companies build businesses with strong fundamentals towards a path to profitability, raise follow-on funding, and expand geographically. 

To date, ScaleUp Malaysia has announced investments in 21 companies within various industries from smart farming, education, services, logistics, and impact-driven scaleups. ScaleUp aims to help 100 companies through their programmes with a target to invest in 50 by 2023. 

ScaleUp Malaysia recently launched Cohort 3 of their programme targeting high growth scaleups in partnership with two venture capital firms, Singapore-based Quest Ventures and US based Indelible Ventures. Collectively these firms bring access to partners, investors and other networks in Southeast Asia and the United States of America, accelerating targeted growth in new times. For Cohort 3, ScaleUp Malaysia is looking towards working with more scaleups eyeing the regional and global stage.

ScaleUp Malaysia continues to champion Malaysian entrepreneurs and aims to uncover more underrated, untapped, and unknown startups in the ecosystem who deserve a shot at building high growth, sustainable businesses. 

ScaleUp Malaysia’s portfolio companies

With its commitment to fostering a strong ecosystem, ScaleUp supports a diverse array of companies hoping to push for business growth. With that, here is a list of companies from ScaleUp Malaysia’s first and second cohorts

ATX – A pioneering digital payments service provider with 8 years of track record that provides a solution to help micro SMEs participate in the digital economy.

Auto Craver – A cloud-based end to end management software called “Turbo” for car dealers to automate processes and facilitate car sales.

Batik Boutique –  A premier Malaysian gift brand with an artisanal story that creates social impact by empowering the B40 segment through education, training and job creation.

Iimmpact – An out-of-the-box technology solution that enables digital payments to over 100 billers inclusive of mobile top-ups, utility bills, entertainment portals, local councils and many more.

Kwikcar – A peer-to-peer car-sharing platform that aims to change the future of mobility and car ownership.

AOne – An educational platform for learning centres to manage their classes, teachers and students through scheduling, fee collection and process automation.

BiiB – A community platform that creates gamified virtual events for runners and transforms running into a team sport.

Agiliux – A cloud-based core insurance platform with extensive policy and claims management capabilities.

Also read: Industrial IoT startup Sophic Automation set to scale up Industry 4.0 projects in the region

Tripcarte – A travel technology company that provides a distribution platform for travel activity and attraction tickets.

Recqa – A platform that preserves collective knowledge so that organizations can connect and align people, processes, and best practices.

ERTH – (e-Waste Recycling Through Heroes) is an award-winning social enterprise that specialises in collecting and recycling electronic waste (e-waste) from households and businesses.

Fefifo – Fefifo is pioneering digitalised, standardised farming in ready-to-farm modern farmspaces called co-farms, to make sustainable, profitable smallholder farming commonplace in South East Asia.

Hauz – Hauz is a data-driven enterprise solution that manages and monitors mobile workforce operations in the service industry, be it in Malaysia or regionally.

Homa2u – Homa2u is an online to offline (O2O) building materials and interior finishes marketplace where you can find a wide range of high quality, branded and bargain materials for your house project.

Kiddocare – Kiddocare is an online platform that connects parents with trained Malaysian baby sitters and early childhood education providers for personalised, on-demand services.

Load2Go – Load2Go offers an on-demand logistics platform for booking big trucks for large freight, construction and manufacturing industries.

MMC – MMC is a food-based company that operates several different businesses, including a central kitchen, food mart, cafe and vending machines. Their businesses are tracked and run on a proprietary technology solution.

MyBump – MyBump media is a car wrap advertising company that matches brands with drivers (Brand ambassadors) for data-backed creative execution outdoor advertising.

Pomen – Pomen is SaaS automotive maintenance platform that specialises in fleet companies and vehicle owners to connect with workshops and service providers to benefit them with the valuable vehicle and financial insight.

Quadby – Quadby is the Nextdoor for universities. They are a community app for students to find and chat with peers on campus.

About ScaleUp Malaysia

ScaleUp Malaysia is an accelerator that focuses exclusively on growth-stage companies in Malaysia – helping them position their business for exponential growth. ScaleUp Malaysia is founded by a team of experienced entrepreneurs, professionals and seasoned investors.

Also read: Protégé Ventures as a gateway for VCs to invest in the future

Championing the concept of building “Pegasus” companies of building fast-growing profitable businesses, ScaleUp Malaysia companies go through a program that includes in-class training, one to one coaching, and equity investment for selected companies. You can visit them at their official website at www.scaleup.my or their official social media pages, Facebook, Twitter, and Linkedin.

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SoftBank-backed Oyo files for US$1.1B IPO in India
Oyo aims to raise US$942.7M through the public offering and the rest of the targeted capital from the sale of secondary shares; According to the prospectus, founder Ritesh Agarwal, RA Hospital Holdings (Agarwal’s holding company), and SoftBank Vision Fund are Oyo’s largest shareholders.

Accredify raises US$2M to combat the rising fake degree certificates issue in education sector
Investors are Qualgro, Pavilion Capital, Endeavour Ventures, and K2 Global; The firm works with more than 900 clients in Australia, Indonesia, Hong Kong, Japan, Malaysia, Netherlands, Singapore, and UAE; It claims it has verified 7M+ documents so far.

East Ventures leads US$1.1m round of Singapore logistics startup Luwjistik
The e-logistics startup will use the funds to improve the platform and expand its workforce to go deeper into Singapore, Indonesia and Malaysia; Luwjistik already counts companies such as Ninja Van, J&T Express, and JNE Express as its network partners.

Indonesia aims to launch rules on dual-class shares this year: Exchange official
Authorities are trying to sort out issues related to the ratio of voting rights and the duration of such rights, among others; The flurry of investor activity led to Indonesia’s biggest listing, with e-commerce firm Bukalapak making its debut here in August after raising US$1.5B.

Neobank for freelancers Friz receives US$1M seed financing
Investors include Amand Ventures, Iterative VC, Y Combinator, an Ivy League University Endowment Fund, and angels; Friz leverages data insights to provide financial products including credit cards, personal loans, insurance, savings and investment products for freelancers.

MAS to launch digital platform to curb money laundering, terror financing
The platform, named COSMIC — short for collaborative sharing of ML/TF information and cases — will be rolled out in the first half of 2023; Singapore is one of the biggest destinations for suspect transactions in Asia, according to a Bloomberg report.

Telkom Group’s MDI Ventures joins FinAccel private investment prior to IPO
The announcement comes amid the fintech firm’s plans to go public in the US; The funding, which comes from Cathay Innovation, Endeavor Catalyst, and Telkom Group investment arm MDI Ventures, will boost the total commitment for the company’s PIPE deal to US$125M+.

Dutycast gets VinaCapital backing for its browser extension that helps consumers buy online globally with ease
After adding DutyCast to the browser, users can shop and put products of multiple stores in one single Dutycast cart, checkout once, and pay in local currency; The solution can scale beyond Vietnam and said that the VC would assist DutyCast in realising this international ambition.

‘The car-sharing biz has taught me that mobility is hyperlocal’: SOCAR CEO Leon Foong
Hyperlocalisation in terms of products and service offerings can push consumers to continue using the product or service, the SOCAR CEO says; Unlike most developed countries where consumers have established credit scores and prefer post-paid accounts, Malaysia is still predominantly a pre-paid country.

The Incubation Network (TIN) joins hands with ECCA Family Foundation to support circular economy startups in Thailand
As part of the initiative, ECCA Family has committed US$2 million of strategic funding to spearhead the effort; TIN’s partners Seedstars, the Alliance to End Plastic Waste, and STEAM Platform, will launch incubators and accelerators for entrepreneurs.

Crypto exchange Independent Reserve gets license from MAS
This license allows the Australia-based virtual asset service provider to operate in Singapore as a regulated digital payments service provider for cryptocurrency, making it easier for users to buy digital tokens with Singapore dollars.

EduSpaze backs pre-series A round of Malaysian mentorship platform;
Other investors are Sarawak Digital Economy Corporation, Indelible Ventures; FutureLab connects fresh graduates and young professionals to industry mentors; It currently has over 3K industry mentors across Malaysia, Singapore, and Indonesia on its online platform.

Social commerce booming in Asia with live-stream shopping growth
The strategy gives brands a presence right where their consumers are spending many of their hours online – and it now occupies an estimated 44% of the US$109B Asian e-commerce market; In Southeast Asia, the average growth of social commerce in terms of gross merchandise value has grown by 307 per cent in the past year.

Vietnam’s digital banking adoption catches up with developed markets
Between 2017 and 2021, 88% of APAC consumers in emerging markets actively use digital banks, a 33 percentage points increase; In Vietnam, the numbers rose by 41 percentage points to 82% in 2021; This information was released in the McKinsey report on the digital banking behaviours of 20K urban banking consumers across 15 APAC markets.

DeFi is pushing finance towards its e-commerce moment
Banks need to stay on top of how DeFi can change the modern financial system, similar to how e-commerce has disrupted industries. With banks trying to adopt DeFi, fintech will become increasingly meaningless.

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Image Credit: Oyo

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