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E-commerce brand aggregator Hypefast to take on Una Brands, Rainforest with US$19.5M Series A financing


Hypefast, an e-commerce brand aggregator in Indonesia, has secured US$19.5 million in a Series A round of investment led by Monk’s Hill Ventures.

Jungle Ventures and Strive also joined the round.

So far, the startup has raised to date more than US$22 million in equity funding, in addition to an undisclosed amount of debt capital from undisclosed regional and global investors.

The startup was founded by Achmad Alkatiri (CEO). He has in the past worked at Lazada (as its Indonesia CMO) and Shopee.

Also Read: Ex-CEO of Rocket Internet Asia launches new e-commerce venture Una Brands with a US$40M seed round

Launched in January 2020, Hypefast partners with top e-commerce native brands in Southeast Asia and hyper scales the brands by bringing capital support, team, and a centralised retail ecosystem and infrastructure.

Hypefast claims it puts in significant effort post-acquisition on delivering growth through its end-to-end retail team, technology, efficient processes, market insights, economies of scale and centralised back-end operations optimisation.

Hypefast, which has just emerged from stealth mode, has acquired more than 25 brands so far. Its recent acquisition is an Indonesia-based baby and kids brand that grew from US$3 million to almost US$8 million revenue in the past six months.

“There are very few reasons preventing SEA brands from growing into multi-million USD EBITDA. These brands already have access to cost-efficient manufacturers and a substantial market with strong e-commerce penetration,” said Alkatiri. “Most importantly, these local founders understand the needs and want of the local consumer community much better than international competitors in terms of style, size, fit, aesthetics, and price point.”

“Hypefast is at the vanguard of e-commerce 2.0 in Southeast Asia — a shift towards the brand- and seller-centric buying. The increasingly sophisticated digital consumer in Southeast Asia cares about who she buys from and who else is buying. Hypefast is building the foremost digital platform that will empower emerging brand owners and entrepreneurs in Southeast Asia to hypercharge their businesses.” Kuo-Yi Lim, co-founder and managing partner at Monk’s Hill.

Currently, the firm has more than 200 team members across Indonesia, Singapore, Malaysia, and Thailand.

Also Read: Why brands fail on e-commerce and what they can do about it

The e-commerce brand aggregation industry has been gaining momentum in the recent past. In Singapore, there are already the likes of Una Brands and Rainforest.

Days ago, Una Brands raised US$15 million in Series A financing co-led by White Star Capital and Alpha JWC. This round came just a few weeks after it launched with a US$40 million seed round.

Rainforest launched a few weeks ago with a seed financing round of US$36 million from backers such a Nordstar and Insignia Venture Partners.

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Throwaway gold: How data can tap into the unrealised potential in plastic waste

plastic waste

When thinking about plastic waste, consumers focus on what they see. There’s the five ‘R’s of waste management: refuse wasteful products, reduce those you must buy, reuse what you already have, repurpose goods that are no longer reusable, and recycle whatever is leftover. 

Unseen by citizens, there’s an entire economy built on plastic waste. Or, there could be, if there was the infrastructure for it.

Currently, 86 per cent of recyclable plastics are not being recycled, a waste that could be worth up to US$120 billion worldwide.

One factor blocking access to these lost billions– there isn’t enough data.

With over 8 billion tons of plastic entering the ocean every year, there is a global plastic waste crisis. Yet, due to inconsistencies across the global plastic value chain, there is patchy data on how plastic gets there and where it passes on the way.

With just five Asian countries contributing the majority of ocean plastic waste, the problem is washing up on Southeast Asian shores.

But one person’s waste can be another person’s opportunity. From data to discarded goods, the plastic waste crisis provides plenty of fuel for an entrepreneur looking to innovate. 

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

The plastic waste economy

From the extraction of resources to create virgin (or new) plastics to the manufacturing process that forms them into products, each plastic item embarks on a long journey before it is recycled or discarded.

At each stage of this plastic journey, there are multiple stakeholders involved. Formally, there are municipal waste management services.

But for many countries across South and Southeast Asia, waste is collected by a community of informal waste collectors. These people capture waste before it enters the ocean and assumes responsibility for its next step. 

Like much informal labour, it is unstable. The pay is poor, trapping workers in a cycle of reliance on products sold in cheap and unrecyclable sachets, which make up a significant portion of plastic waste.

Changes in demand can render an entire day’s work worthless. It’s hard labour, in unsanitary conditions, often without the structural support of sick pay or healthcare. 

In India, startups like Nepra are beginning to create technological solutions to empower informal waste workers by automating and centralising plastic sorting, sales, and payments.

It is an excellent initial step, but we need to aspire to more comprehensive solutions. Think, an entire overhaul of the plastic waste management system led by those manufacturing the waste, supported by the governments that are (or are not) collecting and managing it. 

Also Read: In brief: New incubation programme for SEA’s plastic waste startups

Closing the plastics data gap

Effective solutions are rarely a result of a random collision; they need planning and expertise underpinned by data. Plastic waste data, or the current lack thereof, could be critical in closing the gap that plastic waste leaks through.

There are three key stages in the plastic lifecycle where better data could generate solutions.

Firstly, data on plastic waste sources could reveal what elements of plastic waste management work well and what needs improving.

The issue can be quantified into a solvable problem statement by identifying the products that become waste, how they are discarded, and how they evade waste management. Data helps to identify patterns and strengthen the waste management system to prevent them from repeating.

The next opportunity that good plastics data presents is identifying when or where plastic leaks out of the waste system.

Technological advances enable preventative measures, like remote monitoring of leakage hotspots, or AI could predict potential issues for targeted waste management system upgrades. 

Once plastics are captured in systems, they can be managed better. By applying analytics to plastics recycling, supply chain actors can be more visible, transparent and efficient.

This enables better repurposing of waste, uncovering opportunities to invest in and invent new alternatives. Analysing waste could generate meaningful evidence on the habits of consumers, too.

Topolytics is one such rising data-driven player. By collecting, aggregating and analysing data on waste, they empower actors across the plastic waste value chain to better collect, manage and recycle plastic waste more strategically.

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

What is plastic waste worth?

It may seem overkill to invest so much time and resources into collecting materials that have already been discarded. But plastic waste is only garbage when it is treated as such. 

Our oceans are littered with plastic that is destroying ecosystems and filling the food chain with harmful microplastics – but this plastic waste could be generating profits.

The World Bank estimates that S$8 billion of value is lost each year by not recycling plastics in Malaysia, the Philippines, and Thailand alone. 

91 per cent of Southeast Asian consumers are concerned about plastic waste, but less than half are currently willing to adjust their purchasing patterns. Manufacturers have an opportunity to meet consumer needs while reducing their waste footprint.

The field is still open for leaders in recycled plastic to emerge. Some innovators are experimenting with new ways to repurpose non-recyclable plastics to create new products from building materials to furniture and accessories.  

Plastic waste is the perfect case study to demonstrate the power of a circular economy– while the plastic value chain is currently a disconnected series of islands, looping them together would meet the material needs of consumers, workers and producers alike. 

To that end, Closing The Data Gap Challenge, an initiative run by The Circulate Initiative, in partnership with The Alliance to End Plastic Waste, aims to support decision-makers and other stakeholders to create a better quality of data and advance a more inclusive and effective circular economy.

Data intervention, today

When it comes to plastic waste, the opportunities for innovation loom large – but so does the threat of failing to intervene. The plastic waste crisis, left as is, harms the environment and the health of all organisms living in it, from humans in cities to rural farm animals and even underwater coral reefs. 

Also Read: One man’s trash is another’s gold: How Tridi Oasis plans to transform plastic waste management

The big picture is clear: plastic waste is poisoning the planet. But with better data, policy action, corporate change and consumer support, we can create new solutions that go beyond solving the issue and create new opportunities.

By understanding the nature and scale of the data gap, we can take concrete steps to solve it.

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

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Image credit: marcobonfanti

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Why steward leadership matters when startups dress to impress

steward leadership

The world has no lack of stories about the spectacular rise and fall of technology startups. At its height, Adam Neumann’s WeWork was valued at US$47 billion as the then CEO was able to convince investors that they were buying into a “physical, social network.” Its recent listing via a SPAC (special-purpose acquisition company) values it at US$9 billion.

Elizabeth Holmes’ Theranos was also once a darling of venture capitalists. She is now on trial for allegedly making false claims and providing misleading information to investors and patients about Theranos’ technology’s capabilities to detect disease through one drop of blood.

Locally, there was Honestbee, a grocery delivery startup founded in 2015 and had raised US$46 million in funding, including a US$31 million Series A round and a further US$49 million since that Series A.

In 2019, it had to file for creditor protection. One major factor in the company’s woes was the misuse of funds by co-founder Joel Sng.

Founders do not deliberately set out to fail and certainly did not intend to become criminals. Yet, headlines such as these are common. Why?

When founders pitch their business proposition, they typically sell projections, and some may stretch the truths to gain investor confidence.

After all, venture capitalists seek founders who are visionary and can sell the vision and bring about a plan to make the vision come true.

As the funds flow, founders are tempted to steer away from business fundamentals and focus on personal glory.

Also Read: 6 leadership lessons I learned after we raised our seed round

The downfall of the abovementioned companies was the result of fraudulent behaviours or abuse from the top. How then do founders and entrepreneurs keep themselves in check to avoid falling into the temptation of choosing deceit over failure or the “fake-it-till-you-make-it” syndrome?

This is where Stewardship comes in. Stewardship is the mindset and practice of creating value by integrating the needs of stakeholders, society, future generations and the environment.

Steward Leaders bring the stewardship approach to life, who have the genuine desire and persistence to create a collective better future.

From employees to managers, everyone in the organisation must act as steward leaders to create win-win-win prosperity wherein employees, shareholders, and society thrive together. The first step towards Steward Leadership is activating the Stewardship Compass.

I explained the Stewardship Compass in my previous article, Mind the trust gap: How does a company develop consumer trust through data stewardship? As a recap, the compass requires companies to pursue a higher purpose based on four core stewardship values of interdependence, long-term view, ownership mentality and creative resilience.

At its simplest, the principles entail safeguarding an organisation’s future by taking care of the needs of various stakeholders, not just shareholders.

Not only does this approach ensure sustainable long-term growth for the company, but it also prevents failings of corporate behaviour.

Start corporate governance with steward leadership

 Institutionalising the organisational purpose based on Stewardship values will help to kickstart good corporate governance and ethical behaviours.

A corporate culture that ensures that everyone in the company steps up as a steward leader is especially critical for startups. Investors demand for go-to-market speed sometimes causes employees to bend the rules.

Intense work pressure could also lead to behavioural lapses. Staff in a startup often face demanding work challenges because they need to develop processes and products from the ground up.

Also Read: Emotional leadership in a post-COVID-19 business world

To ensure that this Steward Leadership culture is entrenched in the company’s operations and business strategies, the Stewardship Compass should be adopted in recruitment and performance management systems and practices.

A high-performing company depends on finding and hiring the right people, then nurturing, developing and rewarding those who exceed their Key Performance Indicators (KPIs).

Thus, KPIs, midpoint reviews, annual appraisals, rewards and compensation should be drafted based on the compass.

For instance, an employee who understands interdependence will be a team player. Those who take a long-term view will strategise and act responsibly because they understand that their actions will sow the seeds of tomorrow.

As everyone in the organisation, from employees to managers, become steward leaders, the company’s human capital will become invaluable, contributing to the company’s success.

However, while every effort should be made to hire employees with Steward Leadership qualities, it is impossible to hit the nail on the head each time.

Should employees demonstrate that they do not commit to the purpose and values of the compass, tough decisions need to be made on time.

Steward leaders need to put in place a long-term plan from the beginning and work to continuously strengthen organisational systems, operations and teams to create sustainable value creation and ensure that they build value in every sense of the word.

While they must have a long-term plan, they must remain nimble enough to course-correct as things change and evolve.

The Southeast Asia startup scene is indeed heating up, with more companies attaining unicorn status. Suppose these startup leaders apply the Stewardship Compass and become genuine Steward Leaders from the get-go. In that case, they will ensure sound corporate governance that will go a long way in supporting their ventures’ resilience and long-term viability.

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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In brief: Milieu Insight, The Assembly Place, Moduit, Peddlr raise funding

The Assembly Place_funding_news

The Milieu Insight raises US$5M

Crux: Singapore-based consumer research and analytics company has secured US$5 million in the latest financing round.

Investors: MassMutual Ventures (MMV) Southeast Asia, OSK Ventures International Berhad, and Genesis Alternative Ventures.

Plans: The firm intends to use the fresh funding to boost product development and speed up the creation of new SaaS-based consumer intelligence services. Besides, the company plans to broaden Milieu’s customer reach beyond Southeast Asia.

Also read: The struggle to maintain accurate consumer insights with the new consumer

About Milieu Insight: Founded in 2016, Milieu Insight connects businesses directly with their target audience for market research. The company offers clients four main products, including Milieu Surveys, Milieu Canvas, Milieu Portraits, Milieu Studies.

Milieu Surveys collects consumer opinion data on a variety of lifestyle subjects and sectors. Canvas provides enterprises with a variety of tools for gaining access to, evaluating, and displaying high-value and timely customer opinion data to aid in decision-making and planning. Consumer segmentation tool Milieu Portraits allows clients access consumer-centric behavioural insights through a subscription-based offering. Milieu Studies provides an on-demand survey platform allowing clients to launch research surveys and acquire study results.

Moduit receives US$4.5 million

The crux: Moduit Digital Indonesia, an integrated fintech wealth management company, has received US$4.5 million in a pre-Series A round. 

Investors: Singapore’s Reciprocus Moduit Holding (lead), PT Alto Network (Indonesia), a subsidiary of the Djarum Group, also participated in this round.  

Plans: Moduit will expand its platform to offer added curated wealth management products in addition to mutual funds and bonds

About Moduit: It is a digital private wealth management platform that provides a wide selection of curated investment products, including Indonesian mutual funds and bonds, registered under the Financial Services Authority (OJK). Founded in 2018 by Jeffry Lomanto and Charles Jap, Moduit has already obtained three licenses from the OJK and one license from the Ministry of Communication and Information to meet all regulatory requirements. 

The Assembly Place raises US$4 million

The crux: The Assembly Place (TAP), a co-living tech startup headquartered in Singapore, has raised US$4 million

Investors: Low See Ching, deputy CEO of local property group Oxley Holdings; Kemmy Tan (CEO of M+S); Ismail Garfoor (CEO of PropNex Singapore); Wendy Tang (group MD of Knight Frank Singapore); Bruce Lye and Ken Low (managing partners of SRI); Shaun Poh (executive director of Capital Markets at Cushman and Wakefield); and Dennis Goh (executive chairman of Lyte Ventures) also participated.

Plans: With the new investment, The Assembly Place will develop and improve its mobile app. 

Also read: Why Singapore becoming a tech hub is a great boost for the proptech sector

About TAP: Founded in 2019 by CEO Eugene Lim, The Assembly Place curates spaces in convenient locations for co-living with flexible leases, catering to younger outliers who prefer the short-term nature of leasing. It takes an asset-light approach, with 95 per cent of its properties (worth US$184 million) operating on a 5+5 year management contract. Last, four new buildings signed agreements with The Assembly Place.

The startup has expanded to 550 rooms across Singapore and aims to achieve the 1000-room mark by Q2 2022. Its accommodation supply is currently spreading across 16 purpose-built co-living assets.

Peddlr raised US$500K pre-seed funding

The crux: Filipino bookkeeping startup Peddlr has raised US$500,000 in an oversubscribed pre-seed round.

Investors: Foxmont Capital Partners, Paulo Campos (Zalora), Constantin Robertz (Locad), Lisa Gokongwei-backed Kaya Founders Investment SPV, Luis Sia (PayMongo), Aaron Kemmer (Magic), Richard Juan, and unnamed angels.

About Peddlr: Launched in July of 2021, it offers digital accounting/bookkeeping, inventory management, and digital storefront for Filipino micro and small enterprises. Its online storefront feature enables MSMEs to directly participate in the digital economy in just a few simple steps. 

Plans: The funds will be utilised to accelerate user growth and further develop infrastructure ensuring stability and scalability to support user growth. 

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Image Credit: The Assembly Place

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Telio lands US$22.5M pre-Series B to expand B2B e-commerce solutions to 30 provinces in Vietnam

Telio, a Vietnamese B2B e-commerce platform, has secured US$22.5 million in a pre-Series B round led by local unicorn VNG Corporation.

Global VC firm GGV Capital and existing shareholder Tiger Global also participated in the round.

This round comes about two years after it raised US$25 million in Series A led by Tiger Global in 2019.

As per a news report (in Vietnamese), Telio will utilise the funds to expand across 30 provinces in the country, targeting to serve more than 60,000 retailers in 2021. It also aims to expand its presence to 45 provinces and cities, with 150,000 shop owners joining the platform by the end of 2022.

Under the strategic cooperation agreement, VNG will support the digital booth setup for Telio’s retailers on Zalo, an instant messaging app with 62 million users in Vietnam. The platform also develops e-commerce supporting services, such as Zalo Official Account (OA) and Zalo Mini App, enabling shop owners to digitise orders and track delivery easier.

Also read: 3 factors affecting e-commerce trends in Vietnam

Founded in 2018 by CEO Phong Sy Bui, Telio connects small retailers with brands and wholesalers on a centralised platform that provides a broader selection of goods, affordable pricing, and efficient logistics. It leverages big data to elevate manufacturers and retailers’ value chains.

Initially focusing on the FMCG domain, Telio has expanded to other industries such as home appliances, medical, and others and evolved from a B2B to B2B2C platform.

Shop owners and buyers can access Telio on multiple platforms, including web, mobile app, and online stores on Zalo. The firm also develops a Teliobooks app to help store owners manage debt and revenue with automatic reports and reminders via SMS or Zalo messages.

In October 2020, Telio became the first B2B platform to launch its online stores on Zalo to promote contactless sales. The collaboration with VNG allows Telio’s retailers to employ the e-wallet payment solution ZaloPay in their buying and selling processes. 

In addition, small and medium business households will have the opportunity to access a wide range of financial and credit products to support business growth.

The e-commerce space is ripe for an explosion in the region, with Vietnam’s Tiki and Indonesia’s GoTo eyeing IPOs while snagging sizable deals earlier this month. 

Notably, Society Pass, a startup managing various e-commerce and lifestyle platforms, has become the first Vietnamese company to complete a traditional listing on the US stock market.

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

Image Credit: Telio

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