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Jeff Bezos’s investment firm, Tencent back B2B e-commerce startup Ula’s US$87M Series B round

(L-R) Ula co-founders Riky  Tenggara, Derry Sakti, and Alan Wong

Ula, a B2B e-commerce marketplace in Indonesia, has secured US$87 million in a Series B financing round co-led by Prosus Ventures, Tencent and B Capital.

Amazon founder Jeff Bezos’s investment firm Bezos Expeditions, Northstar group, AC Ventures, and Citius also joined.

Existing backers Lightspeed India, Sequoia India, Quona Capital, and Alter Global also participated in the round, which comes eight months after its US$20 million Series A round in January 2021.

The company will use the latest capital to grow its presence across Indonesia and exploring international expansion across Southeast Asia. Besides, Ula will add new categories, expand its buy-now-pay-later (BNPL) offering, and build new technology and a local supply chain and logistics infrastructure.

As part of the new round, Ula has also brought in seasoned investor and entrepreneur Pandu Sjahrir as an advisor.

Also Read: Ula’s CTO on tech for good, Coinhako’s founder story, talent shortage in SEA and more….

Ula was founded in January 2020 by Nipun Mehra, Alan Wong, Derry Sakti, and Riky Tenggara — a team of experienced e-commerce and FMCG professionals from Indonesia, India and the US with decades of experience spanning Amazon, Flipkart, Lazada, P&G and Booking.com.

It is a horizontal multi-category wholesale e-commerce marketplace that combines modern retail’s technology, tools and skills with the lean cost structure of traditional micro-retail. According to Ula, this brings the best in selection, prices and working capital to small store owners to increase their overall income.

Since the launch, Ula claims to have grown 230x, currently offering over 6,000 products and serving more than 70,000 traditional retail stores on its platform.

The firm also offers a BNPL option, which is expected to be a US$150 billion market in Indonesia.

Previously, Ula bagged a US$10.5 million seed round in June 2020.

“We launched in 2020, with a single-minded mission to empower small, neighbourhood retailers with technology to increase their income. We take a long-term approach to solve the underlying problems of traditional retailers by investing in technology, supply chain and data-enabled credit offering,” said Nipun Mehra, CEO and co-founder at Ula.

“With Ula, traditional retailers no longer have to worry about sourcing, product availability, or even payments, which frees up their time to focus on other important things. Seeing the impact that we’re able to have in the lives of our customers is what drives our team,” said Derry Sakti, co-founder and chief commercial officer at Ula.

Image Credit: Ula

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How Ninja Van’s gardening club boosts their tech innovation

Ninja Van

Many people assume that working in tech requires a very analytical and orderly “left-brain” way of thinking and working. As the co-founder of Southeast Asian leading logistics tech startup Ninja Van, I’d like to challenge that notion and argue that taking a creative approach is essential for anyone thinking of, or currently working in tech. 

To illustrate my point, I’d like to start by sharing a bit about the tinkering I used to do in my earlier years. When I was a child, I was fascinated by how things worked and were always trying to understand how they were created.

Whenever my parent’s Discman (anyone remembers these?), television, or toaster broke down, it would be passed on to me and I would happily spend hours disassembling them and inspecting their insides.

These childhood “adventures” in tinkering have helped to train and rewire my brain to make the most of my ability to generate original ideas.

When we first started Ninja Van, none of the co-founders or myself had any logistics background or experience and we had to learn so much about the operational intricacies of the business. We were jacks of all trades, often wearing multiple hats and working across various roles of warehouse sorters, delivery drivers, account managers, customer service officers, and software developers.

Through these tough times, we translated our experiences into lines of code, creating hassle-free logistics solutions.  Since then, the company has grown exponentially to become Southeast Asia’s largest and fastest-growing tech-enabled logistics company, providing supply chain solutions for business across the region.

Why pushing the boundaries could be the best thing for your creativity

We’ve all heard the overused cliche “think outside the box” but this adage does ring true in some instances. Ninja Van’s ability to create meaningful and relevant products and solutions meant we had to brainstorm beyond the boundaries laid out by more established logistics companies at that time.

Also Read: The workspace you need to become more productive and creative

We were able to do that by being obsessed with solving an important problem: How do we provide hassle-free delivery services for businesses of all sizes across Southeast Asia?

I recall the early days at Ninja Van when we were managing our warehouse and sort centre operations within a tiny office, with our desks propped up against the racks where we stored our parcels. Out of this tiny facility, we were able to deliver up to 100 parcels a day with the three vans we had at that point.

As our customer base grew, we realised that our operational processes were not linearly scaled; delivering and sorting 500 parcels took more than five times the amount of time it usually did with 100 parcels. We required way more floor space and much more time. 

One night, the three of us co-founders (Chang Wen, Boxian and myself) finished sorting the parcels at close to 5 AM, giving us only three hours of sleep before we had to start our morning delivery runs. At that point, thinking ahead to more of such days and nights almost gave us second thoughts about whether we were in the right business!

Right after we wrapped up the deliveries for the day, we all sat down to re-work the sorting process. We pushed on, wrote lines of codes, and deployed our very first “parcel router” module that very same day. The result? Sorting 500 parcels now took 30 mins!

Side projects can help you move forward

What helps you tap into your imagination and creative self? Build a portfolio of projects. When I was a teenager, I had way too many side projects. One of which I am proud of (or maybe not so proud of) is an electronic poker-style game where the loser had to gulp an alcoholic drink which would be dispensed automatically by a pump. 

Side projects serve as a powerful medium to explore different careers, test out business ideas and gain new skills, even at the workplace. Employees were pleasantly surprised when I floated an idea to build a pizza oven at our office’s patio last year.

But I believe that setting aside time for creative pursuits such as gardening (we have our very own gardening club at Ninja Van) and building things from scratch helps our minds to focus and devise fresh approaches to solving problems.

Today’s challenges require a creative approach

The world we live in today needs creativity because problems aren’t getting simpler. We need to develop new ways of thinking in order to design better solutions, especially given the higher expectations that customers have these days. Companies that fail to innovate will be left behind.

Case in point, the onset of the COVID-19 outbreak has accelerated the digital transformation in both the professional and personal lives of the communities we serve. Ninja Van has progressively built up our digital infrastructure and engineering capabilities as the foundation of the business since day one of our inception, and we knew we had to find a safe and fuss-free solution that would give our parcel recipients the choice to customize their delivery experience.

Also Read: Singapore’s Janio raises US$8M to expand its logistics solutions to emerging markets

Instead of creating a Ninja Van app that users would have to download, we decided to explore creating a system that would work across the most commonly used social messaging platforms already ubiquitous in Southeast Asia.

After weeks of late nights and user trials, we were finally able to launch the first version of our proprietary NinjaChat system, with the option to select contactless deliveries being one of the first functions available.

A word of advice from Ninja Van

I believe that creativity is one of the key skills of the future;  it is essential for problem-solving, strategizing, and generating ideas that will drive businesses forward. Does the way you conduct meetings need a rethink? Could you be more proactive in sharing your ideas with others? How can you mix things up and allow your mind to be more creative?

If you have some time, take a step back and relook what a typical workday could be structured – try questioning everything and you’ll soon find yourself becoming more engaged and innovative.

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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The slow death of financial flexing and the rise of financial fundamentals in the startup world

accounting

In spite of the challenges brought on by the ongoing pandemic, more startups are gaining traction and getting attention from VCs and investors, especially in Southeast Asia (SEA).

However, having a good idea is just the first step.

With the surge in market saturation, startups are facing incredibly stiff competition. Having a strong financial foundation has never been more important in gaining an edge during fundraising, and it will go a long way to inspire greater confidence from potential investors.

Past examples such as Theranos, WeWork, and even industry giants such as Wirecard showed that size and funding is not the ‘be all end all’.

True long-term success is made up of a multitude of factors, and we need to pay attention to the smaller details in order to avoid the mistakes made by our predecessors.

Having said that, below are five common ones and how you can avoid them.

Mistake 1: Recognising revenue and expenses on a cash basis

Cash basis refers to an accounting method that recognizes revenues and expenses at the time cash is received or paid out. This contrasts accrual accounting, which recognises revenue when a service is performed or goods sold; and records expenses when the obligation to pay is incurred regardless of when cash is received or paid.

Cash accounting can misrepresent a startup’s actual health and growth. For example, the startup might record growth in sales due to customers’ payment of invoices rather than the actual act of performing a service.

Accrual Accounting should be adopted in practice over Cash accounting as it represents a more accurate picture of the startup’s business performance and financial health.

Also Read: DeFi is pushing finance towards its e-commerce moment

Mistake 2: Inconsistent accounting policies

A consistent accounting policy means that once an accounting method is adopted for use (e.g. recognition of inventory), the business does not change the method from period to period. The purpose of having a consistent accounting policy is to ensure that transactions or events are recorded in the same way or manner over time.

This allows easier and more accurate comparison of performance over time. An example of this is when a startup recognises inventory using the ‘First-In-First-Out’ method starting out but ends up switching to the ‘Last-In-First-Out’ method during the latter years of expansion.

Therefore, it is important for the startup to plan out and formalise their accounting policies from day one, to ensure consistent and comparable financials in the long term.

Mistake 3: Disorganised accounting practices

The Chart of Accounts classifies and organises all assets, liabilities, equity, revenues, and expenses accounts that help to form the foundation of a startup’s operations and financials.

While it might seem minute, a properly structured chart of accounts is pivotal for an accurate and detailed presentation of the startup’s financials used for analysis, budgeting and cost management.

Mistake 4: Labelling capital expenditure as operating expense

Capital expenditure refers to the purchase of long-term assets such as office equipment, furniture, vehicles and more.

Oftentimes, inexperienced startups can recognise capital expenditure as operating expense, which will skew their income statement as these purchases are only made once every few years, making it more challenging to accurately assess a startup’s true performance.

Mistake 5: Inconsistent bank reconciliation

Bank reconciliation refers to the process of matching the startup’s cash balance to that of the bank statement. This helps to explain any discrepancies or differences between the balance on the bank statement and the startup’s cash account.

The monthly bank reconciliation is important as it helps to prevent fraud and identifies any accounting errors (such as incorrect or duplicate accounting entries) and outstanding cash balances.

While not the most exciting thing to pay attention to, these fundamentals are crucial to the long-term financial success of any startup. Thankfully, these issues can be easily addressed if identified early, be it through hiring an experienced financial team, or by partnering with a reliable service provider.

The article is co-authored by Charles Phan, Project Lead and Darrell Su, Senior Analyst, Capital Advisory at Paloe

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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Ajaib, the ‘Robinhood of Indonesia’, adds US$153M to its kitty to become a unicorn

Ajaib, a mobile-first stock and mutual fund investment platform in Indonesia, has secured US$153 million in a Series B funding round, reports Bloomberg.

This round brings Ajaib’s valuation to over US$1 billion to make it the region’s latest unicorn. 

DST Global led the new round, with participation from existing shareholders, including Alpha JWC Ventures, Ribbit Capital, Horizons Ventures, Insignia Ventures, and SoftBank Ventures Asia.

DST and Ribbit Capital are also investors in Robinhood, a prominent stock trading app in the US. 

Jakarta-based Ajaib will use the capital to expand its team, improve its app and provide credit facilities for margin trading for some investors.

Ajaib, which follows the blueprint set out by Robinhood, also plans to implement financial education initiatives to attract more aspiring investors.

Earlier this year, Ajaib raised US$25 million in Series A funding co-led by Alpha JWC and Horizons Ventures. It later added US$65 million more to its mega Series A round led by Silicon Valley-based Ribbit Capital, another backer of Robinhood.

Also read: Ascend Money becomes Thailand’s first fintech unicorn following US$150M funding

Co-founded in 2019 by Stanford MBA classmates Anderson Sumarli and Yada Piyajomkwan, Ajaib leverages Indonesia’s high smartphone penetration rate by operating as a mobile-first stock trading platform. The app requires no minimum sum to open a brokerage account.

The company claims to have attracted over one million stock investors in Indonesia, a country with a total of around 2.69 million retail equity investors. 

According to a survey conducted by the Financial Services Authority in 2020, Indonesia’s financial literacy in the capital market remains low at 4.9 per cent.

However, Indonesia’s retail savings and investments market has constantly picked up pace in recent years. The value of the market tripled from US$108 billion in 2008 to US$326 billion in 2018, according to Researchandmarkets’s report. This number is expected to cross the US$400 billion mark in 2022.

Riding on the tailwind of the pandemic-induced investment euphoria among young, smartphone-savvy people, Indonesia has witnessed a trove of personal finance apps for all, with PINA being the latest startup to launch one this November.

Image Credit: Ajaib

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3 reasons why SEA’s e-commerce sector is set to explode

e-commerce

The latest report from Facebook & Bain Company has proven that the “new normal” resulted in new purchasing habits, which boosted digital consumption. The e-commerce sales in Southeast Asia are estimated to nearly double to US$254 billion at the end of 2026.

While it is expected that digital spending will continue to expand amidst the pandemic, how much will SEA’s e-commerce companies grow as we’re entering the year-end sales period?

An e-commerce aggregator, iPrice Group, analysed the most visited e-commerce platforms in Southeast Asia to predict where the market is heading and what exciting developments we can expect from the year-end shopping frenzy.

Here are 3 predictions on the success of Southeast Asia’s e-commerce industry for the rest of the year

Also Read: Aspire lands US$158M Series B to scale its all-in-one finance OS for SMEs across SEA

Online growth will be off the charts.

The pandemic-induced digital shift is enhancing online consumption even more than last year. Data shows that the overall web visits of online shopping platforms across Southeast Asian countries remained positive in the 1H 2021.

With more than an average of four million web visits from January to June in 2021, the number has increased by 31 per cent compared to the same period in 2020.

The Philippines experienced the most surge by 73 per cent, followed by Indonesia (41), Malaysia (34), Singapore (10), Thailand (9), and Vietnam (7).

The top two Singapore-based companies, Shopee and Lazada, experienced an increase of web visits by 56 per cent and 10 per cent in 1H 2021 compared to the same period last year.

The surge was probably driven by its ongoing marketing initiatives to supply value-driven shoppers during the new norm with flash sales, Ramadhan sales, 6.6 sales, and others.

In 2020, iPrice Group saw that the overall web visits grew at 26 per cent from 1H to 2H 2020 across all six countries. As such, the company forecasts that the total average web visits will grow even more for the remainder of 2021.

Therefore, online marketplaces will potentially receive an additional average of 690,000 visitors or more across the region, given that there are many upcoming year-end sales.

Influencers will continue to drive success to online sales

From footballers to Korean artists as brand ambassadors, and recent partnerships with Jackie Chan and Hyun Bin, Shopee, and Lazada sparked consumer hype as we entered year-end shopping sales.

iPrice Group tracked the social sentiments of the latest 9.9 campaigns. Using this data, the study uncovers which drive is the most successful.

Jackie Chan’s endorsement has the highest engagement per article. The campaign collaboration with Chan for 9.9 sales has over 59 articles published online, while there were 53 articles written about Hyun Bin’s endorsement.

However, the number of articles doesn’t draw a full conclusion. Hence, the study also investigates consumers’ reactions towards these partnerships. Who seems to be the more loved brand ambassador?

Observing the 3.8k social reactions that were recorded, Hyun Bin has the highest number of “love” reactions (79), along with 19 per cent “haha” reactions and two per cent “wow” reactions from its partnership with the giant e-commerce company, Lazada.

Similar success was seen with the kung fu legend’s collaboration. Jackie Chan’s endorsement was received with 62 per cent “love” reactions, 21 per cent “haha” reactions, and 17 per cent “wow” reactions. It looks like the social sentiments towards these two ambassadors have been positively received by people, according to the data.

It’s clear to see that influencers play an important role in driving excitement for the upcoming sales period. Thus, key e-commerce companies have enough incentive to involve influencers in their campaigns. But does this mean that they will increase the amount of consumer spending during year-end sales?

Also Read: Why WeWork is relevant even in the growing hybrid working trend in SEA

A steady increase of consumer spending year-over-year

Given the uncertain COVID-19 infection rates, consumers will stay at home and consequently forego holiday travels and family get-togethers.

More time spent at home means more opportunities for online shopping. iPrice foresees that Southeast Asian consumers would probably spend an average of US$40 on e-commerce by the end of the year.

The prediction is made by examining the average consumer spending across online marketplaces in the 1H 2020 and 1H 2019. iPrice found an increase of 26 per cent in average consumer spending in 2020 when consumers spent about US$32.

Most purchases will be directed towards the categories of sports and outdoor, home improvements, and electronics.

Lastly, even if consumer spending won’t increase as predicted, online retailers can still expect far more online web visits to their platforms this year.

The web visits data was collected from SimilarWeb as of August 2021, which accumulated the total average visits (desktop & mobile web only) obtained by e-commerce companies across six different Southeast Asia. Data on social sentiment was taken using Buzzsumo by inserting keywords such as “Jackie Chan” OR “Jackie Chan Shopee”, “Hyun Bin” OR “Hyun Bin Lazada” on September 2, 2021.

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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Forge Ventures closes US$22M debut fund targeting seed-stage startups in Indonesia, Singapore

Kaspar Hidayat, Co-Founder and Partner, Forge Ventures and Tiang Lim Foo, Co-Founder and Partner, Forge Ventures

Singapore-based seed-stage VC firm Forge Ventures has announced the closing of its oversubscribed debut fund at US$21.88 million targetting Southeast Asia.

A sector-agnostic fund, it intends to back founders developing the next generation of category-defining firms at the seed stage. It is also paying close attention to fintech startups in the region. 

Over the next three years, Forge Ventures plans to invest in 15 companies, primarily in Singapore and Indonesia, with an average cheque size of US$750,000.

It has already invested in three companies. They are:

  1. Vouch, a digital concierge SaaS platform for the hospitality industry in Singapore.
  2. Dropezy, an e-grocery delivery in Indonesia.
  3. Marathon, a Vietnamese K-12 after-school tutoring business.

Forge Ventures has also built a Limited Partner base designed to assist founders. Its prominent LPs are Airbnb, Carousell, Fabelio, Facebook, Funding Societies, GajiGesa, Grab, Kopi Kenangan, Qoala, and Stripe. 

Forge Ventures was established in 2021 by Tiang Lim Foo and Kaspar Hidayat in partnership with Alto Partners, an Asia-focused multi-family office. 

Foo was earlier a venture partner at Next Billion Ventures, while Hidayat was an investor at 500 Startups (now 500 Global). 

According to Foo, Southeast Asia’s startup ecosystem is at an inflexion point, with a growing number of startups eyeing exits or joining the unicorn club. An influx of available capital urges founders to look for more from their seed investors.

“We are operators, so we know what it takes to go from zero to one. This is why we can build conviction early and be the first institutional capital to back a startup. The founders that we partner with count on us to get our hands dirty in every aspect of company building from ideation to go-to-market (GTM),” Foo added.

“While we do provide capital to startups, we see ourselves first and foremost as partners and advisers to the founders we work with. Unlike other investors, we allocate the majority of our time to working with founders so that we can make a difference,” co-founder and partner Hidayat said.

According to Refinitiv data, buoyed by the pandemic-induced digital transformation across the world, global VC funds have invested record-breaking US$268.7 billion so far in 2021, exceeding their total investments of US$251.2 billion a year earlier. In Southeast Asia, VC investments also amount to a record US$6 billion in Q1 2021, according to DealStreetAsia

However, VC fundraising performance in the first half of 2021 has witnessed a slowdown, with the total proceeds slumping 21 per cent compared to the first semester of last year.

Image Credit: Forge Ventures

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Learn the ropes around scaling your startup across borders

Remote workforces are now a reality for thousands of startups around the globe. Startups are now much more likely to hire international teams to leverage a wider pool of talents and optimise resources.

As a startup founder, the people you hire depend on your business needs and available funding. However, managing a remote team is easier said than done and, while there are a lot of advantages, there are also a lot of challenges especially when managing a team with diverse backgrounds.

In the recent webinar “Scaling your startup across borders: How to effectively manage your remote team”, organised by e27 in partnership with Deel, we talked about challenges and best practices of managing remote international teams. Deel is a payroll and compliance software that helps startups recruit talent and work with remote employees across the globe. 

The panel featured Ilya Kravtsov, Founder and CEO of PouchNATION, a SaaS-based platform with NFC wearable technology and a one-stop guest management solution operating in 7 countries in Asia; Jonathan Hall, Senior Director of Business Development at Rapyd, a global payments solution provider; and Abhinav Krishna, Head of Expansion APAC at Deel.

The webinar was moderated by Meltem Kuran, Head of Growth at Deel. Kuran kicked off the discussion by remarking that as Deel experiences rapid growth to their current strength of over 275 people spread across 46 countries, they continue to operate without an HR team, and onboard employees using their software platform. 

Why build remote teams?

The panellists kicked off the discussion by outlining the various factors that push companies to build remotely, knowing the challenges and risks associated with building remote teams. 

Krishna started by pointing out that COVID-19 has accelerated the existing trend towards remote teams. He explained the four main barriers to going remote which are encapsulated as “HTTP”: Hiring (the right people), tracking (productivity and metrics), trust (culture and team building), and payroll (wages, benefits, and incentives). 

These four areas represent the biggest challenges to hiring remotely, says Krishna. COVID-19 has been the catalyst to innovation in the remote hiring world so startups can start trusting in remote teams. New technologies are solving many of these challenges so startups can create a remote working culture, build trust, and confidently make the leap into the unknown, and hire remote teams across borders.

Also read: Leveraging digital-first CX for customer delight and business growth

The challenges are around visibility and alignment — making sure that people are focused on the objectives set for the team. Knowledge sharing is critical in fast-growing startups, he said. From a growth perspective, market penetration and reach are important so it becomes critical to have people on the ground. Product localisation and local knowledge as well as the flexibility to hire a single person in a key new market are important drivers to international hiring. Lastly, access to talent around the world as globalisation spreads is another reason why startups are looking to hire internationally. 

Kravtsov added that the key to hiring international teams is transforming your organisation from being an input-driven to an output-driven company. Working regular hours is not as important in reality, he feels and thinks it is better to focus instead on output-driven goals. PouchNATION made a conscious decision not to measure hours worked: “We are focused on making it output driven and making people aware of that.”

How to ensure remote team members stay engaged

Continuing from the issue of tracking remote workers, Kuran took the discussion deeper to ask how companies make sure that work gets done and keep their teams engaged. When it comes to hiring remote employees and tracking their work, in Hall’s experience, more senior candidates tend to fit the profile of a remote worker much better. “They have the resilience and potentially perseverance to overcome the barriers that come with distance. I certainly have a preference towards experience when it comes to remote working,” shared Hall.

Ways to measure success in remote working revolves around methodologies and tools. At Rapyd, the methodology is centred on short frequent contact, making an active effort to ensure communication is not transactional. Having conversations that are not related to work is important. “Focus on highlighting achievement and milestones and saying thank you is important because it gives visibility into work and makes sure people know they are appreciated,” explained Hall. From a tools perspective, anything that enhances collaboration, sharing, and visibility is a win.

Kravtsov added that keeping people engaged remotely is a challenge because of the difficulty in ensuring that engagement is natural and not forced. “Engagement over coffee is naturally created in an office environment. Creating that engagement over a Zoom call is a little bit forced and I am a big advocate of creating a culture of engagement and I think creating that engagement should be about doing it spontaneously.”

Also read: How to foster mental wellness in the workplace and boost performance

He said that at PouchNation they try to create that by having a huddle session every morning with the management team. “Cameras are a must — seeing everyone every morning creates engagement, We try to push these daily routines and make it less forced and more casual. It’s about not just contacting people when you need it so you don’t feel detached from your colleagues.”

Krishna feels the challenge is actually about two things: engagement and productivity.

When hiring a remote worker it’s very important to have clarity on personal and professional milestones. This could be as simple as knowing what family goals each team member has as well as their professional goals. While Deel does utilise tools to track productivity metrics and build efficient processes, “tracking comes from trust”, said Krishna. “If you cannot have trust, those tools are not going to be of any use.” Transparency in metrics helps teams at Deel to create a straightforward way to have every employee engaged and productive, he explained. 

Transparency is built from a data perspective with transparency around performance metrics shared with everyone, and also from a people perspective by sharing direct and honest communication. It is very easy to misunderstand things when working remotely so direct communication is key, he pointed out.

Kravtsov added that in his company, even a simple activity like writing sales targets on a whiteboard is replicated remotely to build more engagement.

How to build culture in a remote setting

Kuran moved the discussion to building team culture, saying: “we discuss a lot around communication but culture is a separate thing.” Building on these points, the discussion was taken deeper into the issue of building an organisational culture in remote teams.

Kravtsov described his experience of building culture in teams that do not have physical interaction: “Before COVID, our operation teams were working on live events and that created a real culture because they were practically living together on weekends etc. during the events. We were doing 20-30 events a month and then it went down to 0.”

He thinks the challenge of how to build that culture digitally can be tackled by having proper feedback loops, having an engaged multicultural team to make sure that there is always alignment even if people come from different countries/cultures, and building trust. This is so that even if colleagues give their frank opinion, the person will take it constructively. He added that this can be done only if you go beyond transactional interaction and engage in non-work related activities or interests.

PouchNation has used chat meetings to gather 5-6 team members to chat with one rule: don’t talk about work. They also hold an online dance challenge among team members who each have to make their TikTok dance videos. “That breaks barriers between teams and these things help build a great culture,” says Kravtsov.

Krishna feels that culture building is not something that can be passed on by a CEO or HR team.  “At Deel we don’t have an HR team so how do we manage? Firstly, it is about the CEO defining a very clear and simple vision: A vision that is so simply defined for everyone that we automatically understand the culture to be built in our teams. Second, we define the role, responsibility, and metric well for each person.” 

Hall added that culture is an active effort and that building camaraderie doesn’t always mean spending money. “No one wants to get on a team call on a Friday night, so it’s about finding an engaging event that breaks down barriers.” 

Kuran concluded the discussion by saying that stating what the culture is and making it personal is very important: “Just knowing what are the things you want to be part of your culture and stating them makes a big difference.”

Also read: Finding product-market fit with the power of product analytics

The panellist then moved to discuss their favourite tools which facilitate a great remote work culture, apart from collaborative work products used in most companies such as Slack and Zoom. Krishna said that they of course use Deel for payroll activities and that his personal favourite tool is Notion, which has helped him a lot and played a crucial role to help him as he manages working with team members across time zones. 

Kravtsov added that their startup holds a fun tournament which they call the “Pouch Olympics” by gathering together on Zoom for games to play around words etc. Another way they build remote team culture is by organising Whatsapp groups across the company “where we encourage to share stuff that is not work-related.”

Hall said the tools that have worked best for Rapyd to encourage remote team behaviour is the concept of shadowing. Taking a peer from a different team so they can understand your challenges and suggest new ways of thinking. For example, getting product people on sales calls or tech team members on sales calls. This also helps with building empathy, Hall feels. 

Do certain cultures adapt to remote working better than others?

Hall feels that culture and personality are different things and personality plays a bigger role in determining the ability to work remotely. He said that people in some cultures may be shyer and some are more direct and don’t take offence if someone gets direct or steps over the line. “Personality is a clear driver,” says Hall.  

Krishna thinks that company personality is an equally important factor. For example, remote workers working for a client who is not local are considered freelancers, and in some countries, that term has a bad perception. Freelance workers are not considered as important and often do not get paid on time. It is up to companies who hire remotely to say: “We will trust our people and build a great culture and we will go for people who will be responsible.”

So it also matters to look at the hiring company to see if they are creating the right environment to treat remote workers equally. 

How to incentivise remote workers

On the topic of employee benefits and incentives, the panellists shared their viewpoints on how to motivate remote workers. 

Financially, the incentives don’t change too much since ideally, the output should not change

Kravtsov says that beyond that frequent small gestures help in motivation. “If you can’t be in office and you have kids, craft incentives around flexibility around a personal situation. It’s about understanding the situation. Healthcare incentives are particularly important now during covid and recognising these things makes remote workers feel valued. 

Krishna added that in today’s age companies are hiring internationally to find the best talent and not to save costs. He added that in some cultures people place more important benefits like insurance and time flexibility to be able to do side projects and follow their personal interests.

Kravtsov thinks this is important to allow people to pursue secondary education such as getting another degree while working. They allow employees to have side projects outside the company and satisfy their needs and they find that these people are still committed to the company and still stay with you.

Kuran agreed that remote employees want flexibility and control over their own lives and giving that increases loyalty.

Why diversity works

To conclude the webinar, Krishna emphasised that it is important to remember that today startups are hiring internationally “for better teams, more diversity and faster growth.” 

“If you believe in these things go ahead and start creating your remote team. Labour laws and payment laws are boundaries that companies like Deel are breaking with their technology. So people just need to take the leap.”

Kravtsov added: “Diversity works — it can be done. There is nothing to fear about hiring international teams. We are living in a globalised world and there is so much to learn, so go for it!”

To watch the webinar, click here. Deel also has a special promotion for members of the e27 community. For more information, visit Deel’s official page.

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Photo by MART PRODUCTION from Pexels

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

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Startup Studio Indonesia names the 15 startups shortlisted into its third batch

Participants of the Startup Studio Batch 3 programme

The Indonesian Ministry of Communications and Information (Kemenkominfo) on Monday announced the 15 local startups that have been shortlisted into the third batch of its Startup Studio Indonesia incubation program which is set to run from September to December this year.

The startups will participate in a Founder’s Camp and 1-on-1 Coaching sessions related to product-market-fit for four months. The series of Startup Studio Indonesia programmes will culminate with Milestone Day at the end of this year, where startups have the opportunity to present their business models and achievements in front of industry stakeholders.

The shortlisted startups are:

1. AturKuliner

A B2B app to help Indonesian F&B businesses manage food costs. Based in Bandung, the startup aims to empower F&B Micro Small Medium Enterprises (MSMEs) to take full control of their food cost with an integrated industry-specific supply chain management solution.

2. AyoBlajar

An online learning app for K12 students in Indonesia. AyoBlajar is an edutech startup focusing on providing a more interactive learning method through live class format for K12 students across Indonesia.

3. Bicarakan.id

A marketplace for mental healthcare consultants in Indonesia. Based in Jakarta, Bicarakan.id is a place for Indonesians to discuss and find solutions to their problems with trusted counsellors.

4. Bolu

An online course and services platform to help Indonesians sell online. The Jakarta-based startup aims to help people sell online through courses that it makes and the services it offers.

Also Read: Forge Ventures closes US$22M debut fund targeting seed-stage startups in Indonesia, Singapore

5. Eateroo

A full-stack immersive social commerce platform for lifestyle and F&B in Indonesia. Based in Jakarta, Eateroo is a full-stack immersive social commerce platform for lifestyle and F&B. With the Eateroo app, communities discover brands through user-generated content. The company aims to revolutionise social selling for Indonesia by digitising the word-of-mouth experience.

6. Finku
Finku is a personal finance app focused in helping Indonesians manage their finances better by seamlessly getting a view of all their money in one place. Based in West Jakarta, the company works with other fintech platforms such as KoinWorks and Flip.

7. FishLog

A B2B fisheries cold chain network in Indonesia. From its base in Bogor, West Java, the startup aims to build the biggest nationwide B2B fisheries cold chain network.

8. Gajiku (Sampradaa)
A fintech app to give early-wage access to employees. According to the company, blue-collar workers in Indonesia typically live paycheck-to-paycheck without a “rainy day fund” for ad hoc expenses. Gajiku offers on-demand, early wage access to these enterprise employees. It work with employers to let them provide their workers access to money they have already earned without requiring them to wait for their regular payroll check or direct deposit.

9. Imajin
A marketplace for manufacturers in Indonesia. According to the company, it aims to help users to find the right manufacturers for their needs.

10. Keyta
A West Jakarta-based startup that builds conversational commerce tools with the goal to empower social commerce sellers. It helps sellers increase the productivity and efficiency of their business operations through an all-in-one keyboard application.

11. Powerbrain
Powerbrain is an energy management company that utilizes IoT and automation technology to optimize energy consumption in a building. Based in East Jakarta, it enables businesses to save energy costs with risk-free solutions. It also stresses that their solutions help save energy through a legal means. It counts leading brands such as Alfamart, Indomaret, and Campina as its clients.

12. KreatifHub
KreatifHub is a one-stop creative platform that connects consumers and businesses with freelancers in the Indonesian creative industry by facilitating transactions of creative services through its marketplace.

Based in West Jakarta, the startup said that there are currently more than 12,000 talents from the creative industry all over Indonesia that uses KreatifHub.

13. Sgara
A Bekasi-based one-stop platform for shrimp farming. The startup builds data-driven farm advisory and marketplace solutions for shrimp farmers.

Also Read: Ex-Grab Indonesia exec lands funding for his soon-to-be-launched personal finance app PINA

14. Soul Parking
The Jakarta-based solution provides an innovative parking management solution for businesses.

15. Zi.Care Hospital Information System with structured Electronic Medical Record (EMR) Sistem informasi rumah sakit digital Digitizing Indonesian Healthcare

Launched in 2020, Startup Studio Indonesia selected 15 startups out of 5,723 registrants.

It complements the ministry’s ongoing startup empowerment programmes such as 1000 Digital Startup Movement and Nexticorn.

Startup Studio Indonesia targets to generate 150 digital startups by 2024 who have the capabilities to scale up their business in terms of the number of users, total revenue, employment rate, and funding from Venture Capital.

By far, 35 early-stage startups in Indonesia have attended the programme in two batches.

For this batch, Startup Studio Indonesia invited notable names in the startup ecosystem such as Moses Lo (Xendit Co-founder), Christopher Madiam (Sociolla Co-founder), Fajar A. Budiprasetyo (HappyFresh Co-founder), Suwandi Soh (Mekari Co-founder), and Hiro Kiga (Wallex Co-founder).

Image Credit: Startup Studio

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East Ventures leads US$1.1M seed funding round for Luwjistik

Luwjistik Co-Founders Syed Ali Ridha Madihid (left), Wong Yingming

Singapore-based e-logistics startup Luwjistik raised a US$1.1 million (IDR15.8 billion) seed funding round led by East Ventures with the participation of Arise, a fund that is the result of a collaboration between MDI Ventures-Finch, and Global Founders Capital. The company plans to use the funding to grow its local and regional teams in Singapore, Indonesia, and Malaysia; develop its platform; and expand its reach.

Luwjistik is a relatively young company, having been founded in July by logistics and e-commerce veterans Syed Ali Ridha Madihid and Wong Yingming. Their vision is to develop a logistics infrastructure with an instantaneous regional reach through a network of global partners, enabling clients to benefit from a standardised workflow of ease and transparency.

According to Luwjistik Co-Founder & CEO Syed Ali Ridha Madihid, the solution is built to respond to the rise of e-commerce popularity as triggered by the pandemic, which has forced logistical companies to expand their operations. “Many people are unable to travel to build their network and connections on the ground. Many are also still relying on the old ways of doing things, and are unable to transform themselves digitally to keep up with the demands,” he said on Thursday.

Through the Luwjistik platform, clients only have to integrate a single API to connect themselves to selected partners and go through the transaction process all the way to the end. A network of almost 30 partners in Singapore, Malaysia, Indonesia, the Philippines, and Thailand is now connected through the Luwjistik platform. Some of the companies included Ninja Van, J&T Express, and JNE Express. DHL eCommerce and YCH Group Pte Ltd are examples of clients that have used the platform.

Madihid said that there are key main values that the company offers. First, in terms of ease, clients will be able to access a network of potential partners in Southeast Asia that offer deliveries of imported goods in domestic or regional markets. They can pick the service provider that suits their needs.

Also Read: iStore iSend bags 7-figure USD to expand its logistics and supply chain biz to Thailand, Vietnam

Second, with its standardisation, clients can navigate cross-border documentation, workflow, and fee transparency matters more easily. Lastly, with its single API, the platform enables easy and fast data management, direct booking, contract signing, document signing, and payment processing in just one platform.

According to Madihid, what the company is trying to achieve here is to combine the technology and knowledge that the co-founders have built after working in the sector to connect the different points of the supply chain. In the end, they aim to help clients navigate the challenges of cross-border shipping, especially in a developing region –where it can be fragmented.

“In the end, as there is an urgency to accelerate the digitalisation of the logistics sector to meet the demands of the market, Luwjistik provides a fast, efficient, and safe tech solution to help companies grow,” he said.

Another one for the logistics sector

Prior to announcing this funding round for Luwjistik, East Ventures had also announced an investment into another e-logistics startup –McEasy. This segment has been experiencing an increase in popularity during the pandemic due to its crucial role in supporting the growth of the e-commerce industry.

From early 2019 to July 2021, the DailySocial research team noted that there are around 16 funding announcements involving a tech-based logistics company, totalling the investment to US$586 million. Of all these companies, there are at least four startups that have more than US$100 million in valuation: SiCepat, Waresix, Shipper, and GudangAda.

The article East Ventures Suntik Pendanaan Tahap Awal 15,8 Miliar Rupiah untuk Luwjistik was written by Marsya Nabila in Bahasa Indonesia for DailySocial. English translation and editing by e27.

Image Credit: Luwjistik

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How your HR team can help with crisis management

crisis

As any HR professional will realise, the pandemic has triggered a number of organisational trends.

One particular note has been the democratisation of the crisis management function. Simply put, COVID-19 demonstrated that crisis management is no longer the remit of just a select number of senior employees or subject matter experts.

Instead, it is now a task dealt with horizontally across an organisation, an agnostic practice to serve for the good of all.

Global crises impact organisations globally, so employees at all levels have had to roll up their sleeves in this respect. Necessity has meant they need to have a part in crisis management.

Nowhere is this more apparent than in HR teams. As HR professionals are now becoming more influential regarding the shape and execution of their company’s crisis management strategy and plans.

Findings from International SOS’ APAC Trends Watch survey highlight this, as 79 per cent of relevant experts predict that HR professionals will now have an essential role on crisis management teams, particularly as we work towards an endemic COVID-19 in Singapore.

As business leaders and the authorities map out strategies to return to travel, facilitate a larger proportion of employees in the office, and return to business as usual, crisis response scenarios need to ensure a level of agility and adaptability to survive and thrive. This requires establishing framework conditions conducive to the proper conduct of the practice.

As HR is regularly responsible for the skills and development of individuals within a company, it can play a vital role in the acquisition and/or integration of these key elements into crisis management planning in the near future.

Also Read: Education is not a content business but a human one: Nas Academy’s Nuseir Yassin

Why is this trend accelerating?

HR should always have been an integral part of crisis management. Very often the lack of HR integration is due to either a poor structure by the design of the crisis team or to a silo approach that compartmentalises crisis management to a single entity.

No matter what the scenario, crises are intrinsically linked to people, thus to HR.

HR teams are gaining more responsibility for many different functions out of necessity. In contrast to many previous crises, the COVID-19 pandemic has been a significant cause of disruption for a long period of time – it is a marathon, not a sprint.

It is this dynamic that’s causing more personnel, including HR professionals, to become involved with crisis management, as the impacts on employees are different to a “normal” business crisis.

Notably, the impact on mental health has been significant. Given mental health policies often fall into the domain of the HR function, it is understandable that HR professionals are now becoming more involved in crisis management and response, particularly as we move into the recovery phase of the crisis.

But there has now been an increased level of positive integration of HR in supporting the staffing of crisis management teams in situations of exhaustion or burnout.

HR, for example, played a decisive role in identifying replacements or in providing organisational support for staff engagement; valuable support to business leaders.

How can HR teams respond to this new dynamic?

With HR professionals now becoming more involved in crisis management, the need for agile responses before, during and after a crisis and then proactive planning for the recovery phase is more important than ever.

In preparation for a crisis, HR teams should try, through regular simulation, scenario planning and benchmarking, to identify where they have gaps in knowledge and capabilities, and then proactively find partners who can provide specialist support in these areas.

Looking at COVID-19 specifically, the need for medical knowledge is clear, and many HR professionals have been looking for insight from experts and doctors into how to manage the situation and their duty of care responsibilities.

Also read: Report: Communications roadmap is key to successful startup fundraising in time of crisis

“Plans are nothing, planning is everything.” President Eisenhower was right, and that is why it is key for crisis management teams to be able to train in immersive, dynamic scenarios to test their responses, processes and teamwork.

Regular simulation and crisis planning sessions organised by HR, and to which HR will proactively participate (through their representative or as observers), can therefore be a game-changer when making decisions in the pressure cooker environment of a crisis.

Recovery phase

With regards to the recovery phase of crisis management, HR professionals should work closely with their crisis management colleagues and/or key stakeholders that were involved to provide effective employee communications.

Openness and transparency in this area are vital. Crisis management plans and strategies must be shared at different levels in order to foster a collective dynamic and proactive (re)actions.

Furthermore, clarity is key, as confusion is likely to cause further stress for employees. Specifically, regarding COVID-19, employees are likely to be anxious about various issues. Fear over catching the virus, uncertainty about any planned return to the office as well as feeling under strain from the blurring of work and home lives due to work from home experiences.

In this situation, the response of HR professionals in managing crisis recovery can be key. Not only can actions be taken to improve staff morale affected by the pandemic, but also processes can be improved to account for the changing working environment.

It’s almost inevitable that the working environment that organisations and employees face post-pandemic is going to be different to the one that preceded it.

However, while the challenges that the HR function faces might now differ, it’s clear that the crisis management lessons that should have been learnt during the pandemic (through an After Action Review or a global Gap analysis) need to be remembered.

By embracing the responsibilities of supporting and being a key part of the crisis management team, HR professionals remain at the heart of the battle and can ensure that their organisation’s recovery is an effective one, improving both business outcomes and the productivity and morale of their workforce.

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