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

GIMO_Funding_News w

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.

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: 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.

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.

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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.

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.

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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.

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: Desty

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Exit Strategies: Ways to get your money back besides IPOs and M&A

The Southeast Asia (SEA) startup landscape has witnessed some successful initial public offerings (IPOs) recently, including the Indonesian e-commerce shopping platform Bukalapak, and the Vietnamese data-driven loyalty platform Society Pass. Some are also actively eyeing IPOs, including TravelokaVNG, Tiki, aCommerce and more. Sizable mergers and acquisitions (M&A) also attract a lot of attention in this space, including Intuit’s acquisition of TradeGecko, and Aviva’s merger with SingLife.

This highlights the potential of high-value exits for investors who are doubling down on the region’s startup development.

But IPO is rare, and it only works for businesses having a proven track record of growth. That’s why it is crucial to understand different types of exits — liquidity events — that investors or founders utilise to liquidate their financial position or assets, raise more capital for business growth, or even limit losses of non-performing investments or unprofitable businesses.

Different types of investors may prefer different methods of payouts.

After deploying an exit strategy successfully, the buyer takes over the business in exchange for cash or stock, and key executives and personnel from the firm frequently remain on for a period of time in order to cash out and vest their shares. In some cases, founders will continue running the company with public status.

For venture capitalists, exits allow them to return the financing to their Limited Partners (LPs) with a much higher return on investment. Seed investments are the riskiest type but the return on investment can even reach 100x for a single deal. Series A investors shoot for a smaller multiple at 10x to 15x, while later-stage investors aim for 3x to 5x in return.

Also Read: Financing your startup: Can a loan be a better alternative to VC funding?

Below is the list of eight ways that current shareholders of private companies can look into for an exit:

  1. Merger and Acquisitions
  2. Acquihires
  3. IPO
  4. SPAC
  5. Direct listing/Direct public offering
  6. Management and employee buyout
  7. Selling stake to a partner or investor
  8. Family succession
  9. Liquidation
  10. Bankruptcy

Merger and Acquisitions

Mergers and acquisitions (M&A) is an exit strategy for any firm looking to sell its business and especially appealing to startups and entrepreneurs. An acquisition happens when one firm buys most or all of another’s shares or assets; while a merger is the tie-up of two businesses to establish a new legal entity under a single corporate name.

The process of M&A comprises numerous stages and can take anywhere from six months to several years to finalise.

Proper deal structure is considered one of the most difficult aspects of the M&A process. Many factors are taken into account, including antitrust laws, securities rules, corporate law, competing bids, tax ramifications, accounting concerns, and market circumstances.

This leads to a downturn that M&A may be time-consuming and costly, and regularly fail. Whereas, M&A has the advantage that business owners can keep pricing negotiations under their control and establish their own terms.

Acquihires

Acquihires are a type of exit strategy in which a corporation purchases a company in order to acquire its skilled staff.

In contrast to other exit strategies, an acquihire focuses on the founders and their team rather than the startup’s business model or assets. The acquisition price is frequently determined by the worth of the team to the purchaser.

In terms of the company’s employees, they might make use of this exit strategy type to ensure that they will be looked for in the long term. However, this, like other purchases, maybe a difficult and expensive process.

IPO

Initial public offering (IPO), or going public, is known as the process of a private firm offering its shares for sale on a stock exchange. It enables a startup to raise capital from the public and allows current private shareholders to monetise their previous investments.

A private firm seeking an IPO must not only prepare for a massive increase in public scrutiny but also file a mountain of paperwork and financial reports to satisfy the regulatory requirements such as a preliminary prospectus. This is oftentimes a complex, time-consuming process that most businesses find difficult to handle on their own.

Therefore, a company potential for an IPO has to record favourable growth or positive financial results. It will also hire an investment bank to underwrite the IPO as well as perform due diligence before the public listing. The two will then set an initial share price and a date for its securities to be traded publicly on the stock market. Institutional investors such as pension funds, endowments, or foundations can meet with the startup and buy initial blocks of shares prior to the public sale.

Also Read: Gojek, Tokopedia confirm merger with the launch of GoTo Group

SPAC

Since most companies struggle with the IPO, merging with a special purpose acquisition company (SPAC) is among the top priorities for a startup looking for an alternate exit strategy. In 2020, gross profits from SPAC deals were roughly six times higher than that of 2019.

SPAC is a publicly listed “blank check” corporation founded for the purpose of merging with or acquiring private firms. Investors, who are also known as sponsors in SPACs, can include a wide spectrum of people, including firm founders, top executives, and venture capitalists.

After the transaction, the target company will be listed on a stock exchange, which transfers the burden of the IPO process to the original SPAC.

Direct listing/Direct public offering

A direct listing, or direct public offering (DPO), is considered a less costly way to raise capital for a company or cash out for a shareholder without the need to create new shares. It also does not require a bank to underwrite the issuing of stock, though the company still has to file a registration statement to the authority.

Instead, existing investors, promoters, and any employees already owning shares of the company directly convert their ownership into stocks that can be traded on a bourse anytime after the launch. Spotify, Slack, or Coinbase are some firms choosing this exit route.

The selling and pricing of shares in a direct listing, though do not suffer from the “lock-up” period as in traditional IPOs, are then subject to the market demand with no guarantee for sale, no promotions, or no safe long-term investors.

Management and employee buyout

A management and employee buyout (MEBO) is a corporate restructuring strategy whereby both a management buyout (MBO) and an employee buyout (EBO) buy out a company in order to consolidate ownership among a small number of shareholders.

MBO is a transaction in which the management team of a firm buys the assets and operations of the company they run. Meanwhile, EBO is a restructuring method in which employees purchase majority ownership of their own company.

MEBOs are typically used to privatise a publicly listed company. Besides, they can also be used as a way for venture capitalists or other shareholders in an existing private company to depart.

This exit strategy often boosts a firm’s productivity since it may provide extra job security for employees, prompting them to put more effort to improve the company’s profitability.

Selling stake to a partner or investor

This type of exit strategy is characterised as a ‘friendly buyer’ since founders are likely to sell their stock to someone they know, trust, or work with.

The buyers are partners or venture capitalists, who will remain the company’s operations as normal even when the previous shareholders are completely out of the business.

However, it is not always an easy feat to find a “buyer” and may deprive you of any involvement within the company’s management or decision-making process afterwards. Moreover, it often causes ripples when the negotiation does not satisfy both ends of the spectrum.

Family succession

The family succession exit plan entails handing over the business to a kid or another relative at a specific time.

Different from other departure strategies, this one does not engage third parties and is said to be one of the easiest and most easy solutions when done correctly.

Though it is a tempting option for individuals who wish to keep their company in their family long term, choosing or qualifying a capable person for the position requires the owner to keep a sharp eye on the successor.

Following the completion of familial succession, ex-founders are able to maintain strong ties to the company as advisors or consultants.

However, during the process, the members may experience emotional, financial, and overall stress.

Also Read: VNG mulling public listing via SPAC merger at US$3B valuation: report

Liquidation

Liquidation is the process of closing a firm by selling all of its assets, especially when it performs poor over a long period of time and could not deploy any other exit strategies. However, this strategy is not preferred in the startup space because most tech companies rely on their software without significant physical assets.

When the company is liquidated, the worth of present clients will not be recognised in its sale. Therefore, to maximise earnings, owners are advised to restructure the business for the acquisition of the entire firm rather than liquidation.

This kind of exit strategy might be easier and quicker to implement than other options. Yet, it is unlikely to be a lucrative exit strategy.

Bankruptcy

Bankruptcy happens when a firm’s business model is proven unprofitable and the debts are significantly more than the assets. It is an extreme exit plan that employs a legal mechanism for liquidating a business and paying off debt.

Declaring bankruptcy does not ensure that all of the company’s obligations will be forgiven. It is, however, takes little paperwork, quick, and helps the company to rebuild its credit.

Alternatives to bankruptcy include debt negotiation, operational improvements, and business turnaround and restructuring.

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: 123rf

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Is Malaysia prepared for the 5G economy?

5G

The rollout for 5G technology in Malaysia has been a challenging journey for all the industry players involved. The response of welcoming 5G into the country has been thoroughly mixed and inconsistent, ranging from concerns of spectrum price setting to the positive reception of the single wholesale network (SWN) model.

Given Malaysia’s commitment to achieving 80 per cent 5G coverage by 2024, business owners of all market sizes will need to incorporate digitalisation in their strategies should they want to grow (or at least, adapt) to the transformational changes that are yet to come.

Amidst its allure for technological advancement, the full capabilities of 5G have yet to be set, let alone defined. What we do know for now is that the speed of 5G could technically surpass its predecessor by approximately 10 to 100 times faster, support more devices in a given area with a broader bandwidth, and lesser delays in data transfer given the ultra-low latency.

However, there will be a tradeoff between the ranges of bandwidth and network speed. Higher bandwidths will have faster speeds and support more devices but will have a limited coverage area.

5G rollout plans

For the case of Malaysia, the rollout programme has incorporated “pioneer bands” of 700 MHz, 3.5 GHz and 28 GHz. A total of 75 use cases were piloted across Malaysia over the span of October 2019 to June 2020 and showcased feasibility in smart technology solutions for various industrial applications such as tourism, medical, and agricultural activities.

The government aims to achieve 10 per cent 5G coverage in Cyberjaya, Kuala Lumpur, and Putrajaya by the end of 2021, while six other cities will be targeted for 40 per cent coverage by the end of 2022.

Also Read: Here are the most promising startups in the 5G space

Malaysia’s 5G initiative trails behind neighbouring countries such as Singapore, Thailand, and the Philippines. It was reported that the 5G rollout in ASEAN has a positive six to nine per cent growth prospect in consumer revenues with an additional 18-22 per cent increase for enterprise revenues.

Therefore, the era of ASEAN’s digital transformation is becoming an economic force that needs to be reckoned with and should not be ignored by Malaysia should it want to capture the market opportunities.

The report also highlights the possibility of two varying outcomes for Malaysia; the first being a “win for some, lose for most” and the second a “win for many situations”. The first describes a more likely outcome as network operators will seek means to capture revenue via value-added services in order to compensate and cover loftier wholesale costs in the future.

Additionally, the long-term implications might fall upon the end-users through either diminishing service quality or elevated prices.

These implications are a concern to operators as financial restrictions for growth can affect consumer loyalty as well as the comparative advantage to distinguish themselves from the other providers.

Another possibility of this predicted outcome is that these service providers will focus on enhancing their revenue-making 4G infrastructures (considering the fact that Malaysia has yet to achieve a full 100 per cent coverage), making the 5G initiative look more costly and redundant to consumers in the upcoming years.

Also read: The proliferation of 5G will transform businesses and societies: Here’s how

Only time will tell on whether or not these predictions will materialise as we wait for the government’s decision on the available spectra prices. However, businesses must be prepared to consolidate digitalisation opportunities once the anticipated rollout becomes concrete.

How can businesses prepare

Market leaders such as the service, manufacturing, and agriculture industries have taken a toll during the pandemic and should look beyond existing business strategies to become resilient against future unprecedented risks.

The implementation of the 5G technology model specifically in their B2B supply chain could be introduced with effective systems like inventory tracking, machinery monitoring, and cloud computing.

Identifying the business activities that can use 5G can be done through a discussion with key players of the supply chain and network operators.

Additionally, small and medium-sized enterprises (SMEs) should also be aware of the transition considering its one-third contribution to the nation’s overall GDP. A smaller entity structure would mean that 5G innovation can be utilised according to its own scale.

Enhancing e-commerce platforms and client management systems is possible with the use of high-speed networks. Payment methods can be streamlined into a cloud system, enabling efficiency in their order workflow process while product availability could also be updated in real-time to inform the customers.

Just because a particular business is a small entity does not mean that it could not harness the benefits of the 5G technology.

On the contrary, its flexibility in applications allows consumers to make full use of its features according to how they see fit, hence, the only requirement needed from the consumer end to make it work is an innovative mindset to elevate their businesses to the next level.

Also Read: The 5G era is here, and you can be part of the revolution

When it comes to businesses of the future, it is important to consider models that integrate components of sustainability. It is known that entities that embody this concept into their business strategies fare better than their competitors and are more likely to be resilient against unexpected risks in the future.

However, proper implementation is needed and sustainable solutions could mean something as simple as evaluating waste management systems or reviewing monthly energy use.

5G enables devices to be connected into a network to gather crucial information and determine their peak performance use, leakages, and optimal temperature settings required to ensure facilities run smoothly.

Supply chain processes could also be linked into a connected network, enabling traceability features to be adopted which are useful for responsible sourcing efforts.

While focusing on business growth is important, it is worth considering that maintaining businesses at full capacity adds resilience to a company’s viability. Despite common beliefs, the implementation of sustainable strategies can save operating costs by taking note of non-efficient processes to be either replaced or removed entirely.

This handpicking strategy allows business owners to focus on creating maximum value to stakeholders, and in return, contribute back towards the sustainability agenda. This could also align with the growing awareness in consumers who are showing more interest in purchasing sustainability-driven products.

With the commitment of 5G implementation coming near, businesses and consumers alike should aim to have an idea of what it can do for their daily transactions and start planning for the digital transition.

We are venturing into a new era where businesses need to adapt to the needs of the ever-changing economy and reflect long-term value to the end consumers as well as relative stakeholders.

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Ecosystem Roundup: J&T Express raises US$2.5B ahead of IPO, RWDC Industries bags US$95.1M, #MeToo in SEA startup scene

metoo_china_needs-1

#MeToo in startups in SEA and the silence surrounding it is deafening
Sexual abuses often go unreported because many victims choose silence to avoid possible backlash and retribution from the harassers.

Indonesian courier startup J&T raises US$2.5B ahead of Hong Kong IPO: Reuters
Boyu Capital, Hillhouse Capital, Sequoia China, and Tencent Holdings also participated; This brings its valuation to US$20B; The fundraising by J&T comes as it seeks to expand in China and Latin America.

Robert Downey Jr.-backed RWDC Industries completes US$95.1M Series B2 round
The biodegradable alternative to plastic firm 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.

Grab injects Series C funding into Indonesia’s e-investment platform Bareksa
Through this partnership, Bareksa will gain access to Grab users and partners, offering them investment opportunities with payments handled by OVO; In 2019, Bareksa had raised Series B funding from OVO.

Indonesian stock trading platform Stockbit to acquire local brokerage firm Mahakarya Artha Sekuritas
The acquisition will enable Mahakarya’s users to open stock accounts and trade in the Indonesian Stock Exchange via the Stockbit app; Mahakarya Artha Sekuritas has been Stockbit’s brocking partner since September and will now be rebranded to Stockbit Sekuritas.

Singapore’s Hepmil Media secures US$10M to expand e-sports, gaming network
Investors include Quest Ventures, Pavilion Capital and Bent Pixels; Hepmil, which owns SGAG, MGAG, PGAG and a digital creator agency, also plans to expand into Thailand and Vietnam in 2022.

Pintek raises US$7M Series A to provide financial services to Indonesia’s education community
Investors include Kaizenvest, Heritas Capital, Blue7, and Earlsfield Capital; To date, Pintek claims to have supported 2,750+ education institutions, 100 education MSMEs to reach more than 650,000 students.

Social commerce startup Desty adds US$5M to pre-series A kitty led by East Ventures
Other backers are Jungle Ventures, Fosun RZ and January Capital; Desty, founded by ex-BAce Capital managing partner Mulyono Xu, is a digital platform for merchants, influencers, and creators to build a single online destination to promote and sell their products.

Ex-YG Entertainment execs’ Indonesian home care services firm OKHOME raises US$3M
Investors include POSCO Venture Capital, A Ventures, ES Investor, Honest Ventures, and Enlight Ventures; OKHOME provides services such as general cleaning, disinfection, and air conditioner management across Jakarta and Surabaya.

Plot of digital land sold for US$2.3M in Axie Infinity
According to the company, it’s the largest amount of money ever paid for a single piece of digital real estate; The amount surpasses the US$1.5M deal for nine plots of digital land in the play-to-earn game, which happened in February.

SG businessman-led SPAC 8i Acquisition 2 nets US$86M in US listing
This is over US$10M more than what it initially planned to raise on the US exchange; James Tan Meng Dong is the CEO and director of the blank-cheque firm; Incorporated as a British Virgin Islands business company, 8i Acquisition will invest in Asian companies with enough foothold to scale across multiple countries.

Binance eyes funding from sovereign wealth funds
The stake sale comes after Binance was issued a warning by the MAS in September for providing payment services and soliciting business from Singaporeans without having a license to do so; Since then, the crypto exchange has restricted its services in Singapore.

SG autonomous vehicle startup MooVita bags Series A funding
Investors include Yinson Holdings, SMRT Ventures, 1Derlife Growth and SEEDS Capital; MooVita is currently developing a component-based driverless software solution, which can transform various vehicle types into autonomous vehicles.

Indonesian mobile coffee firm Jago Coffee bags US$250K
Investors are Beenext, Prasetia Dwidharma, and Hidenori Izaki; The company plans to use the fresh funds to increase its number of mobile carts from 20 to 280 by next year; It also wants to pilot new product categories outside coffee with other food and beverage brands.

Vietnam’s internet economy to hit US$220B by 2030
Since COVID-19 reappeared in the first half of this year, the country has added 8 million digital consumers, of whom more than half come from non-metro areas; It is forecasted that the country’s digital economy will see a growth rate of 31% this year over the same period last year, reaching US$21B.

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Vietnamese CME Solar Investments raises US$12M debt financing

CME_funding_news

Vietnamese renewable energy company CME Solar Investments (CMES) has completed a US$12M debt financing round with Switzerland-headquartered impact investor responsAbility.

CMES will channel the financing to promote green power for Vietnam’s commercial and industrial (C&I) segment. The company plans to deploy many projects to allow its clients to directly consume green energy through the business model “Zero Cost Investment”.

“We are bullish on the potential of Vietnam’s solar sector, especially adoption by C&I off-takers who are keen to minimise operational costs, now more than ever before,” said Sameer Tirkar, principal climate finance APAC for responsAbility.

Also read: Solar energy is no more a novelty, but a necessity

Founded in 2018, CME Group leverages the model of Zero Cost Investment to be fully responsible for investment, installation, operation and maintenance of the solar system for customers.

The solar energy provider claims to have served over 100 clients across 20 industries. It has also installed over 200 million MWp and generated over 2GWh of electricity each year.

“Sustainable growth, decarbonisation, and energy security are key themes for both developed and emerging markets globally. We are on the right path to join other global developers to create a better world,” said Tuan Dieu Chung, CEO of CMES.

The company boasts that its end-to-end solutions covering the whole value chain of design, engineering, procurement and O&M leads can take full control over each project’s quality, timelines, and costs.

According to a press statement, CMES’s clients can use green energy with special prices lower than Vietnam Electricity Group’s price. It counts Tan Son Nhat International Airport, Adidas R&D Center, and Hwaseung Vina among its clientele across the country.

In addition, CMES owns warehouses with ready inventories, eliminating the lead time of delivery to secure on-time completion of projects.

The company is backed by Vietnam Oman Investment Fund, a sovereign fund established by Oman Investment Authority and State Capital Investment Corporation of Vietnam.

Meanwhile, responsAbility manages US$3.5 billion of assets to invest in over 250 fully ESG-managed (Environmental, Social, and Governance) companies across 68 emerging economies.

So far, responsAbility has disbursed more than US$10 billion in private debt and private equity to companies in the financial inclusion, sustainable food and climate finance sectors whose business models directly support the United Nation’s Sustainable Development Goals.

The renewable energy sector has gained momentum with wide adoption globally. In Vietnam, as of December 2020, the total installed capacity of solar power across the country touched around 19,400 MWp, according to Vietnam Electricity.

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Image Credit: CMES

 

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Reimagining the future of Asia’s business events sector through SaaS

events SaaS

The business events sector leverages SaaS technologies to overcome pandemic limitations and foster human connection. It is estimated that the share of digital offerings in companies’ portfolios has accelerated by a staggering seven years.

Until the pandemic, the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector, which supported more than 34,000 direct and indirect jobs, had been deeply dependent on face-to-face meetings.

With new COVID-19 restrictions in place, event organisers had to search for creative avenues to overcome these COVID-19 challenges in a brief time or risk losing S$3.8 billion, or close to one per cent of Singapore’s GDP.

The solution was SaaS virtual events platforms that mirrored in-person interactions by creating immersive and exciting event experiences.

SaaS businesses transforming the events industry

Many businesses were already on a digital transformation journey before the pandemic. Still, the pandemic has highlighted the merits of SaaS platforms and the value of SaaS businesses to a more resilient industry sector.

At Hubilo, we were quick to recognise the opportunity of SaaS solutions, in part because we had already spent five years in the event technologies space, which allowed us to develop an innovative platform to bring people together when social distancing was/is a norm.

In this complex landscape of COVID-19 regulations and critical industry shifts, Hubilo pivoted to the SaaS model to aid digital transformation in the events industry in the region.

Also Read: Synqa acquires SaaS platform for event creators Eventpop in an “8-digit USD” deal

Not only did we demonstrate flexibility, agility, and scalability through our innovative virtual-hybrid events platform service, we showed this in equal measure through the SaaS model, which informed our approach in designing our products and services.

Virtual and hybrid event platforms now integrate various technology stacks, ensuring participants’ excellent and holistic top-tier event experience.

These technology solutions can also bring event-specific data from registrations and ticketing to create a seamless event experience. One-way integrations with CRM platforms also enables organisers and sponsors to leverage event data and reap measurable ROI.

Additionally, martech technologies generate insights that can increase the quality of business leads and effectively drive marketing conversions.

All of this is supported by a base of customer technology platforms at the core of a virtual event platform, guaranteeing always-on support for participants before, during, and after the event.

During the COVID-19 crisis, we saw how enterprise applications helped overcome the limitations of physical distance while driving meaningful engagements during a virtual event.

Now, both exhibitors and participants can easily engage with each other in virtual booths and lounges outside live sessions on our platform, offering multiple touchpoints for everyone to make meaningful connections.

An AI matchmaking algorithm was also built into our platform to connect the right set of buyers, sellers, and attendees amongst each other that help drives meaningful engagements.

With digitalisation at the core of our business model, our team also built gamification features inclusive of polls, Q&As, contests, and more segregation on leaderboards to encourage greater engagement across all participants at an event.

All of this is supported by closed caption support for sessions in English in our effort to promote inclusiveness and more accessible comprehension of content during an event.

Hubilo’s entire event can easily be streamed through a mobile app, exactly as you would with your laptop. This includes all activities, entering a session or an exhibitor’s booth, securing a seat in the networking lounge, participating in the polls, games, Q&As, or simply engaging with a fellow attendee.

Also Read: Meet the startups from the latest batch of Singapore Tourism Board accelerator programme

In a hybrid format, the app will act as a critical enabler connecting offline and online attendees.

These are but a few of our features that make for an immersive and personalised event experience possible. All this is thanks to SaaS enterprise solutions that have transformed our business and are transforming the overall industry sector more broadly.

Eliminating the roadblocks to digital transformation

For many in the industry, costs and concerns around the complexity of integration continue to be common barriers to digital transformation. However, we are seeing a trend where enterprises are overcoming these challenges with the help of a series of SaaS solutions.

A significant advantage of SaaS platforms is that most can be set up for rapid integration, which means enterprises can start getting value from them instantly.

There is, therefore, an incentive for businesses to seamlessly digitalise their processes by replacing outdated legacy systems in IT infrastructure with enterprise SaaS products.

Increasing cloud migration and integrations between SaaS platforms has made it easier to build or pivot entire businesses using SaaS platforms. The exceptionality of the SaaS market is that numerous providers are offering similar tools, allowing enterprises to trial new agencies without financial and technological obligations.

​Furthermore, a good SaaS provider will offer enterprises their platform on a pay-as-you-go or usage-based model, which means there is no significant investment required at the outset, and enterprises can pay a fair and manageable amount commensurate with the value they’re getting from the platform.

Events of tomorrow

The unpredictability of the Covid-19 situation makes the business events industry vulnerable. Still, it also presents an opportunity for event organisers to pivot towards virtual and hybrid events creatively, and more significantly, rethink their business model with digitalisation, personalisation, and technology at its core.

Other industries have found themselves at similar crossroads and have thrived despite the challenges. Think of Netflix, for instance, when confronting movie rentals. Ultimately, the shift to a completely digital offering, personalised and tailored to the viewers’ desired content experience, helped scale the business to today.

Events are no different but may have the advantage that Netflix never had at the beginning of its journey–an entirely digitally transformed audience. No convincing is needed that the things we have traditionally done in-person can be done online.

Also Read: The future is hybrid: What will events look like post-COVID-19?

People buy their groceries online. They exercise and find love online. They visit their doctors online. Do we believe that events will be any different? 

We have managed, despite the pandemic’s best efforts, to continue to connect and be productive.

I firmly believe our ability to adapt and innovate technologies will lead not only to the survival of many industry sectors, businesses, and our communities through this crisis but create new opportunities for connection and knowledge sharing than we ever had before.

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Singapore’s Hepmil Media secures US$10M to expand e-sports, gaming network

The Hepmil Media team

Singapore-based technology-driven media company Hepmil Media Group has secured US$10 million in a Series A round of financing led by Quest Ventures, Pavilion Capital and Bent Pixels.

Hepmil own the media companies SGAG, MGAG and PGAG, besides the digital creator agency Hepmil Creators’ Network.

This round marks Hepmil Media’s first fund-raise from institutional investors since its inception in 2015.

The group will use the funds to grow its content and creators’ platform and capabilities and expand its e-sports and gaming network. The group also has plans to grow more revenue streams, particularly in developing content capabilities to serve regional commerce players in their direct-to-consumer efforts.

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

It will also expand into Thailand and Vietnam in 2022.

Karl Mak, CEO and co-founder of Hepmil Media, said: “The digital media space in Singapore and Southeast Asia has transformed rapidly over the last decade. More people are spending their time online for entertainment and fulfilling their everyday needs. We also see more brands looking for an integrated digital media solution capable of reaching and engaging an exponentially growing audience in a compelling manner to drive conversion. Through expansion and investing in capabilities building to push new, innovative solutions for brands, we hope to be able to redefine Southeast Asia’s digital media and entertainment sector and to remain the preferred platform for brands to work with.”

Hepmil Media’s original content arm produces content that reaches over 30 million Gen Zs and millennials across the region weekly. At the same time, its creator network partners with over 300 of the region’s top digital content creators who generate over 3 billion monthly views.

Hepmil Media Group has offices in Singapore, Kuala Lumpur, Jakarta and Manila with over 100 employees.

The firm entered Indonesia early this year via a partnership with EVOS Esports, which aims to address the expanding e-sports market across the region and give brands and talents an additional platform to connect with a highly engaged audience.

The funding will also be used to support the group’s strategic expansion plans in the coming months, including the creation of Bent Pixels Asia Private Limited, a joint venture between Hepmil Media and Bent Pixels in Asia Pacific.

Also Read: Pivots are hard, but worth it: Here are the life lessons we gained

Headquartered in Singapore, Bent Pixels Asia will enable Hepmil Media to expand its influence and reach within the e-sports community in Southeast Asia by being the preferred provider for YouTube reserved media in Indonesia, Malaysia, the Philippines and Singapore.

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