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Ecosystem Roundup: Pace raises US$40M Series A, Jokowi to launch VC fund, Mavcap to invest US$38M in SEA startups

Pace raises US$40M Series A as it aims to increase user base by 25x over next 12 months
Investors include UOB Venture Management, Marubeni Ventures, Atinum Partners and AppWorks; Pace, which has more than 3,000 points of sale across the region, looks to hit a gross merchandise value run rate of US$1B in 2022.

Indonesia’s Jokowi to launch VC fund backed by state-owned enterprises (SOEs)
Telkom Group, Bank Mandiri, and Bank BRI seem to be the initial investors of the fund, which was also backed by other big SOEs; The agreement has yet to be finalised, but the fund will invest in startups established by Indonesian founders and operate in the country.

Malaysia’s Mavcap to invest US$38M in SEA startups via two new funds
Orbit Malaysia Fund I and Ficus SEA Fund will back startups in the verticals such as AI, fintech, healthtech, greentech, industrialtech, IoT, and edutech; The Orbit fund I will be managed by Kejora Capital; Ficus SEA has a Shariah-compliant investment structure.

Ascendo Ventures launches US$33M fund for early-stage ESG-themed startups
New Horizon Fund will focus on sustainable and renewable energy, foodtech, digital technologies impacting carbon emissions, and innovative businesses with blockchain-driven decentralised governance structures; It will opportunistically make follow-on investments in the portfolio companies of its first fund.

SoftBank-backed Ajaib pours US$52M into Indonesian bank Bank Bumi Arta
Ajaib seems to be following in the footsteps of other tech companies such as Gojek, Sea Group, Akulaku, and FinAccel, which have invested in small local banks to turn them into digital banks; Last month, Ajaib entered the unicorn club after raising US$153 million in a round led by DST Global.

ARC Group launches US$20M SPAC opportunity fund, hits first close
The ARC Opportunity Fund can invest in 10-12 SPACs across varied sectors, geography, and sizes with each fund; It will target Asian sponsors who want to create SPACs; It is exploring options to work with sponsors looking to create SPACs in Singapore.

Wavemaker-backed agritech firm gets US$4M in pre-series A
Other investors are 3one4 Capital, Omnivore, The Yield Lab Asia Pacific, and Antares Capital; Fasal runs a SaaS platform powered by AI and IoT; Its solution gathers data from sensors installed on farms, creating crop-specific analytics.

Indonesian home cleaning firm bags US$3M in Series A round
Investors include Posco Venture Capital, A Ventures, ES Investor, Honest Ventures, and Enlight Ventures; Okhome offers various kinds of home care services, including general cleaning, disinfection, and air conditioner maintenance.

Banks and fintech: An arranged marriage built on trust, but does it last long?
Some banks tout happy engagements with tech startups, but how does the “marriage” go when trust, legacy system and security hurdles come into play?

Payroll services startup GIMO raises US$1.9M
Investors are Integra Partners, Resolution Ventures, Blauwpark Ventures, and TNB Aura AN Scout; GIMO allows employees to access their earned salary almost instantly via a mobile app integrated with the company’s payroll system.

Vietnamese HRtech firm nets seed money from CyberAgent Capital
Recruitery allows companies connect with headhunters to make new hires; The firm has helped over 1,000 businesses expand regionally and has operations in countries like Vietnam, Indonesia, Singapore, and the Philippines.

SG-based OCBC mulls setting up crypto exchange
OCBC’s CEO Helen Wong said crypto technology is worth studying but the bank won’t rush into the space; Goldman Sachs Group and JPMorgan Chase already offer futures trading in cryptocurrencies.

F10 Singapore names 9 startups in third incubator cohort
The participants specialise in areas such as buy now, pay later, NFTs, data analytics, the gig economy, financial literacy, and regulatory tech; Selected startups will receive coaching and gain access to F10’s network of mentors, experts, and investors.

Could China’s CBDC threaten decentralised cryptocurrencies?
As China continues to make advances in developing its CBDC, it’s worth asking how the arrival of currencies like the eYuan will impact the world of cryptocurrencies.

How to tackle employee mental health to build a resilient workforce
A proactive approach to building resilience, wherein businesses can anticipate and react to future events swiftly and decisively, will better equip them with ways to tackle the next wave of health concerns– be it a real issue like influenza or a silent one like mental health.

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GIMO bags US$1.9M to improve financial stability for blue-collar workers in Vietnam

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GIMO, a Vietnam-based on-demand pay solution provider, has secured US$1.9 million in a seed financing round led by Singapore’s Integra Partners.

Resolution Ventures, Blauwpark Partners, and TNB AURA VN Scout also co-invested.

In March, the firm received undisclosed seed funding from ThinkZone Ventures, BK Fund, and other strategic angel investors.

As per a press note, the fresh financing will assist GIMO in strengthening its financial stability and accelerating financial inclusion throughout Southeast Asia. GIMO also plans to allocate a portion of the funding to hire more senior engineers, enhance risk management competencies, and leverage customer experience through advanced technologies such as data analytics and artificial intelligence.

Also read: All you need to know about the fintech boom in Vietnam

Launched in early 2021, Gimo offers earned wage access (EWA) to employees ahead of their payday, helping them deal with unexpected financial expenses. Workers can receive their salary almost instantly via a mobile app integrated with the company’s payroll system.

The app also reports users’ workdays and daily earnings in real-time, alongside personal finance tips.

“Blue-collar workers are among the most vulnerable to financial distress. When unexpected bills arise, they don’t have a lot of safe and affordable options. GIMO looks to change that,” said GIMO co-founder and CEO Quan Anh Nguyen. “By helping workers get paid as they earn it, we hope to give them the peace of mind to focus on what matters.”

In the long run, besides paycheques, GIMO aims to create a digital financial platform that will allow blue-collar workers to organise their money better — be it spending, savings, or investments.

For employers, GIMO’s solution can be a supplementary financial resource for businesses to reduce payroll risks and optimise internal cash flow.

At the height of COVID-19, employers worldwide, including Walmart, Pizza Hut and Visa, are also turning to EWA solutions to reduce turnover, enhance productivity, and increase business savings.

To date, GIMO claims to have provided on-demand pay to over 25,000 workers, primarily in the manufacturing and retail sectors. The number of beneficiaries has grown 130 per cent monthly, states the company.

According to a Fitch Ratings report, around 290 million people in Southeast Asia are unbanked or do not get access to formal financial services.

Also read: wagely bags US$5.6M to give Indonesia’s low-paid workers access to their earned wages

GIMO joins other regional firms such as Indonesia’s wagely and GajiGesa to double down on improving financial stability for workers through EWA. Other noted EWA providers are US-based Payactiv, UK-based Wagestream, Mexican firm Minu, and US-based Even. 

Dailypay, a leading US-based EWA provider, raised US$500 million this year and reached unicorn status. Payactiv also counts more than two million users and has processed more than US$5 billion in earned wage access. This highlight the tremendous potential of the space.

“It would be impossible for EWA firms in Vietnam to copy the business model of those based in the US or UK, where personnel records and salary information are more transparent,” said Nguyen. “That’s why here at GIMO, we customise our product offerings to match employers’ payroll systems and welfare policies.”

In Vietnam, nearly two-thirds of the adult population does not have a bank account, according to the World Bank’s Global Findex Database 2017. To deal with urgent payments, they often rely on expensive financial services such as long-term, large-ticket-size bank loans or high-interest-rate loans.

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Image Credit: GIMO

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Robert Downey Jr.-backed RWDC Industries completes US$95.1M Series B2 round

Robert Downey

Singapore-based RWDC Industries, which develops a biodegradable alternative to plastic, has closed a US$95.1 million Series B2 funding round co-led by Vickers Venture Partners and Temasek.

CPV/CAP Pensionskasse Coop (Switzerland), Optimas Global Healthcare Fund (Hong Kong), and existing shareholders also co-invested, bringing its total funding raised to date to US$208 million.

RWDC Industries will use the funding to expand its PHA production capacity in its plant located in Athens in the US state of Georgia to 50 kiloton per year and develop a production facility in Singapore. The company is in discussions with the Singapore authorities to secure a site.

Also Read: Why ‘Iron Man’ star Robert Downey Jr. placed a bet on Singapore’s biodegradable plastic startup RWDC Industries

RWDC CEO and Co-founder Daniel Carraway said: “The funding helps us accelerate the production of Solon, our sustainable PHA material. It will support the largest packaging users (converters and brand owners) and consumers to reduce their use of fossil fuel-based plastics significantly.”

“It will speed up the adoption of sustainable packaging and help many of the world’s largest brands meet their sustainable packaging commitments of having 100 per cent of their packaging be recyclable, biodegradable or compostable by 2025,” he added.

RWDC executive chairman and co-founder Roland Wee commented: “The funding will enable us to innovate and expand the range of applications of PHA. It will also support the production of Solon in Singapore, which is home to many of the global FMCG brands that rely on packaging to keep their products fresh and safe. I will also help us to be strategically located in Asia, which is the epicentre of the global plastic waste and marine litter problem.”

Founded in 2015 by Wee and Carraway (CEO), RWDC develops cost-effective biopolymer material solutions. In particular, it produces medium-chain-length polyhydroxyalkanoate (mcl-PHA) biopolymers designed for use across a broad range of applications.

Also Read: This Indian startup makes cutlery using sugarcane waste

PHAs are linear polyesters naturally produced by bacterial fermentation of plant-based oils or sugar and are widely recognised as the only commercially viable biodegradable bioplastic. RWDC claims its PHA is fully biodegradable in soil, water and marine conditions (i.e. all potential end-of-life scenarios), fully biodegrading within weeks with no toxic residue.

Early this year, Hollywood star and ‘Iron Man’ star Robert Downey Jr. invested in RWDC via his venture fund Footprint Coalition. This round came less than a year after RWDC raised US$22 million in Series A funding, co-led by Vickers Venture, in April 2019. Previously, the startup bagged US$13 million in October 2018.

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#MeToo in startups in SEA and the silence surrounding it is deafening

The Harvey Weinsteins of SEA’s startup scene: Why casting couches, sexual abuses go unreported?

Why do casting couches, sexual abuses in the startup industry go unreported? (Image Credit: 123RF)

Celine (name changed), who is currently fundraising for her startup based in Singapore, received a WhatsApp message from an unknown US number at 2 PM on October 28.

The person introduced himself as an employee at a software giant and said they had met at a tech event back in 2018. He also shared a picture of himself to see if Celine remembered him. This picture was followed by his bathroom selfie with his shirt off. Celine ignored him.

“But when he received no response from my side, he messaged again saying he is also an angel investor who invested between US$100,000 and US$300,000 in startups and wanted to meet me over a drink when he comes to Singapore on November 4. When I told him I was no longer looking for investors, he abruptly sent me a picture of his genitals. At that time, I was on a video call with my boyfriend to whom I gave a real-time explanation of what was going on,” Celine said as she recounted the horrific episode.

A horrified Celine later shared this incident with a WhatsApp group of female founders of which she is a member. She received tremendous support and encouraged many others to share their experiences. Celine later posted her experience on Twitter, along with the sleazy picture sent by the “pervert”.

Unhealthy work environment

Globally, the startup scene is notorious for an unhealthy work environment. Harassment and exploitation, such as kissing, passing inappropriate comments, and sexual innuendos, are common. Asia is no exception.

But such incidents often go unreported because many victims choose silence to avoid possible backlash and retribution from the harassers, as well as victim-shaming by the public. Thankfully, Celine mustered the courage to speak out.

After Celine shared her story with e27, we spoke to multiple women in the industry, including high-profile female founders and investors, to understand how grave the issue is. Our findings have been shocking, and we realised that Celine’s case is just the tip of the iceberg. The rot actually runs much, much deeper.

Also Read: Has the tech world done enough to check #MeToo? These speakers are discussing this topic at Echelon

Sadly, in some cases, while women promptly forward their complaints to the concerned persons/departments, they often get ignored by their employees to avoid possible damage to their brands. All this, despite the global #MeToo movement that resulted in exposing tens of high-profile international figures, especially in Hollywood. While the #MeToo campaigns had some ripples in the startup world (remember the Dave McClure exposé of 2017), they died down soon without making a significant impact.

“A common problem is that many victims cannot immediately identify whether an incident of inappropriate touch or insinuation by men come under the definition of sexual harassment. Moreover, they are often afraid of reporting such incidents due to the possible backlash. The victims don’t want to be labelled themselves as ‘difficult’”, said Shannon Kalayanamitr, partner and advisor at Gobi Partners and CEO of Thai startup 5G Catalyst Technologies.

Despite being a well-known face in Southeast Asia’s startup industry, Kalayanamitr has also experienced sexual violence in the past. In one of her earlier companies, a senior male colleague in the management team she directly reported to, tried to take advantage of her. “On many occasions when work meetings ran late, he would speak about having sexual relations with me and attempt to kiss me a few times forcefully,” she said.

Kalayanamitr acknowledged that sexual harassment victims are quick to blame themselves and fear the consequences of speaking out. In her case, she felt she had no other choice but to smile, shake it off, and work through the advances — for, the future of the company was at stake, and there were broader implications on her career and reputation.

Then why speak up now?

“Over the years, I have been a mentor, guide, and advisor for women who have experienced sexual harassment. While closely working with them, I have come to realise how rampant sexual abuse is. What is more important is that nothing has been done to address the problems in the workplace effectively,” she said. “As a mother of two daughters, I want to see a change in the system, to create a safer place for all women, and encourage employers to proactively address this issue in their workplace with proper guidelines and protocols to deal with such situations without fear of repercussions to the woman.”

More skeletons in the closet

Jennifer Cheng Lo, an entrepreneur (JennClub.com), investor for her own Family Office NewChic Capital, and a partner at Ace Investment Management, also faced verbal and written harassment and inappropriate behaviours — at different times in her life and career. As recently as last week, she was sexually harassed in public at a conference while having lunch with the media and investors.

“In the early days of my career as an actor and model, I experienced first-hand the toxic culture in media and entertainment, which also permeated the finance industry during my experience at a hedge fund. Sometimes, men sitting in powerful positions belittled me and made me feel inferior due to the uneven power dynamic, making crude comments and assumptions about my success,” she described.

Also Read: Reactions to JD founder’s alleged sex crime show just how far #MeToo has to go in China

She also mentioned there are some famous investors and two tech companies that have now become unicorns, from whom she keeps a significant distance due to some incidents in the past, including inappropriate messaging and solicitation. “Even now, although being the manager of my own family office and projects, I don’t feel safe. Recently, some incidents on my social circles and network involving bullying and defamation, from both women and men, made me realise that the #MeToo movement is far from over. As a mother of three, including two daughters, I hope to see young female founders come out and share their experiences because strength really comes through unity,” she added.

Cheng Lo even lost her pregnancy due to the stress of harassment in one of the environments she worked.

The story of Aparna Bhatnagar Saxena, CEO of TORAJAMELO (an impact business that focuses on women artisans in rural communities in Indonesia) and an unapologetic feminist, is more horrifying. Saxena had to face not just sexual attacks but also gender and race discrimination. She was asked questions about her marital status (‘why are you single?’, ‘you must be difficult’), career choice (‘why do women need to earn?’, ‘marry a rich well-settled guy); and independent outlook.

“I was also propositioned and even physically touched during dinner meetings and work parties,” says Saxena. “Even in my current role, the questions are being asked ‘why I, an Indian woman, has been made CEO’.”

Through TORAJAMELO, Saxena and the team call out sexual harassment, create a safe space for women, and support diversity and inclusion.

The tales of Jingjin Liu are no less horrendous. Liu is the founder of Zazazu, a sexual wellbeing hub in ASEAN that synchronises education, consultation and products to empower women to own their sexual wellbeing.

“On one occasion, I was presenting the statistics to a US-based investor when he asked me if I was drawing conclusions out of my own ‘unsatisfying’ sex life, as founders tended to solve a problem that they face themselves. He also explained a lot about his experience in his sex life and ‘urged’ me to tell customer testimonials and my own experience,” Liu recounted.

“On another occasion, an investor grasped my necklace (which was also a discreet vibrator) without my permission. The ornament hung at the height of my chest, and he asked me to demonstrate afterwards. I also had a meeting with an investor who told me that I needed a male co-founder to get institutional funding as women have traditionally no saying in ‘sex, tax and politics’,” Liu revealed.

Also Read: Former Head of MaGIC, Cheryl Yeoh, says she was sexually assaulted by Dave McClure

These stories indicate that sexual harassment has become the order of the day in the highly male-dominated startup industry. According to Michael C. Rabonza, Partner at Connecting Founders based in Bangkok, the mistreatment of women — from sexual harassment to subordination in society — is the single most prevalent human rights abuse in history.

Connecting Founders is an advisory firm that represents women-owned businesses in attracting the right type of capital and strategic partners for their business throughout all stages of their growth.

Then there is the problem of lack of knowledge and awareness. “Sexual harassment is not always widely understood. Knowing it and getting awareness about the right to live free from violence is essential to check violence against women. Everyone needs to understand sexual harassment — men, women, people of diverse gender identities — and be clear what is respectful and safe behaviour,” says Melissa Alvarado.

“Perpetrators, or potential perpetrators of sexual harassment, need to be clear about boundaries and harassment, and there need to be institutional rules and consequences available for protection of victims and accountability for perpetrators. Those in leadership positions can seek to create workplace cultures and safe and respectful partnerships for everyone,” explained Alvarado, the Programme Manager (Ending Violence against Women) at UN Women, an organisation dedicated to gender equality and women’s empowerment. [Here is a UN Women document on how to help founders and employers to be proactive and tackle the issue head on].

Pocket Sun, MD of Sogal Ventures and founder of SheVC, agreed. In her view, sexual harassment happens way too often, and there should be a zero-tolerance policy. Everyone deserves to feel safe at work and in public spaces, yet it’s still not a given for most women. “Jennifer [Cheng Lo] is very brave to share her experience publicly. I hope that women have safe spaces like SheVC (a community for female investors in Asia) to find solidarity and be heard and that harassers will face the consequences.”

How to check sexual attacks at workplaces, investor meetings and events?

“Creating a workplace culture that is respectful, safe and diverse is a good way to start,” replies Alvarado. “Listening to employees, including women, is an important first step to understanding what a respectful workplace looks and feels like. Clear messaging from the top that harassment and abuse will not be tolerated is key, and there should be follow-up and accountability when harassment happens. Employees are usually quite aware when harassment is not addressed and is met with silence. Laying out the company’s values and having clear policies and systems to address harassment is critical.”

But Rabonza has a different take. “I believe we need more women in power. The sooner we can achieve this, the world will be a safer, kinder, more equitable place,” he said.

Jamille Tran contributed to this story.

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Social commerce startup Desty adds US$5M to pre-series A kitty led by East Ventures

The Desty core team

Desty, an Indonesia-based e-commerce solution platform, has secured US$5 million in an extended pre-series A round led by East Ventures (Growth fund).

Jungle Ventures and returning investors Fosun RZ and January Capital also joined.

Also Read: Desty raises seed funding to help individuals build an online presence easily

This round comes about four months after Desty obtained US$3.2 million in a pre-series A round led by 5Y Capital in July 2021.

The startup will use the new funds to accelerate the product development and merchant acquisition and to launch innovative products in the next few months.

Desty was started in October 2020 as a digital platform for merchants, influencers, and creators to build a single online destination to promote and sell their products.

With a hyperlocal focus on its business model and product offerings, Desty offers easy-to-use platforms, namely Desty Page and Desty Store, for users to grow in the digital environment. It provides tools, services and applications, most of which are free. The company doesn’t charge a setup fee or monthly subscription.

“Desty was born during COVID-19 when massive digitalisation happened. Merchants, influencers, and creators have resorted to digital platforms to have a digital presence as it has become of utmost importance to thrive. Soon, we would have gathered one million creators and merchants using our platform,” said Mulyono Xu, co-founder and CEO of Desty.

About 50 per cent of Desty’s users are online merchants, while 30 per cent are creators or influencers. Its online merchants include DAMN I Love Indonesia, Luna Habit & Nama Beauty by Luna Maya, Kurumi, Janji Jiwa, Haus. Dagelan, Greysia Polii (Indonesian Olympics Gold Medalist), Choky Sitohang, Tahi Lalats (Mindblowon Studio), Daisuke Botak, Marcella Eteng, Filda Salim, and FootNoteStories are among its creators.

Also Read: A look at the future of social commerce

More digital merchants are getting tech-savvy in Indonesia as they embrace digital tools to engage with their customers. It is not surprising that the country’s e-commerce sector experienced double-digit GMV growth due to the COVID-19 pandemic, hitting US$52 billion, and is projected to grow to US$104 billion in 2025.

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Image Credit: Desty

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