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Kejora Capital, Sunway Group launch new US$25M fund for Malaysian startups

Left to right: Raymond Hor (Orbit Malaysia), Matthijs “Matt” van Leeuwen (Sunway Group), Alex Tan (Orbit Malaysia), Muhammad Syafiq Shamsuddin (MAVCAP)

Indonesia-based venture capital (VC) firm Kejora Capital today announced a partnership with Malaysian conglomerate Sunway Group to launch Orbit Malaysia Fund, a US$25 million fund for startups in the country.

The company also named Malaysia Venture Capital Management Berhad (MAVCAP) as its anchor investor.

It will be led by Raymond Hor as Fund Director.

Orbit Malaysia is a regional Series-A-stage fund with a focus on creating cross-border partnerships between industry players. It aims to invest in startups in the fintech, agritech, e-commerce, edutech and health tech sectors.

In a press statement, the fund said that these companies will be able to tap into Kejora’s digital ecosystem as well as Sunway’s various business divisions ranging from property, healthcare, education, retail, and digital.

It will also introduce an initiative called “Jakarta Express” to help Malaysian startups and investors explore opportunities in the Indonesian market.

Also Read: 25 notable startups in Malaysia that have taken off in 2021

The Malaysian startup ecosystem has recently made headlines with the rise of startups such as Carsome –which had recently secured its status as the first unicorn startup in the country.

It has led to increased optimism in the local startup ecosystem, with several industry players calling for more investments in the country.

According to Statista, private equity (PE) and VC firms invested more than US$5.9 billion in Malaysian startups between 2014 and 2020.

“Malaysia is home to a fast-growing and vibrant startup ecosystem, and there is great potential for Malaysian companies to become Southeast Asia’s next unicorn. With a proven track record in the region and combined cross-border ecosystem, we are confident of replicating our success to empower Malaysian companies to scale rapidly throughout Southeast Asia and beyond,” said Hor.

“Orbit Malaysia is an alliance set up in the spirit of collaboration to leverage on the combined resources not just to help startups, but also as a platform for more private corporations to participate in VC investment. We look forward to working together with more corporates to enrich Malaysia’s funding ecosystem,” he continued.

Based in Jakarta, Kejora Capital has over US$600 million in assets under management (AUM) with 38 portfolio companies, including four unicorn exits.

Alongside Orbit Malaysia’s current active investments, it has previously invested in regional startups in various industries, including fintech lender Kredivo, drone-based solutions provider Aerodyne Group, and delivery startup Sicepat Express.

Also Read: 5 emerging opportunities within Malaysia’s gig economy

As for Sunway Group, it has been involved in the startup ecosystem by running various accelerator programmes, such as the Sunway iLabs Super Accelerator, Sunway Ventures and Sun Sea Capital.

It has also invested in early-stage startups such as Jomrun, Red Dino, Ento, CozyHomes, Quadby, and Wise AI as well as growth-stage startups such as Intrepid and The Lorry.

In addition to these companies, Sunway’s venture building portfolio includes companies such as Sunway XFarms, 42KL coding school, Sunway R&D, PopBox, and Sunway Pharmacy.

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: Kejora Capital

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Cloud kitchens: What are they, how do they work, and why are they so popular? 

cloud kitchens

Since the emergence of the COVID-19 pandemic and the restrictions put in place to curb the spread of the virus, many traditional brick and mortar businesses faced challenges as they adapted to the new normal.

Economies began to shutter one by one as governments prioritised the safety of their citizens while trying to minimise the impact of these decisions on their respective economies.

One industry, in particular, has seen a significant shift in its operational norm. The F&B industry was plunged into a state of uncertainty when lockdowns and the pandemic started, as restaurants were prevented from hosting dine-in patrons.

While these establishments suffered, cloud kitchens were largely unaffected by the pandemic as it was not reliant on in-house operations or a physical location. 

What are cloud kitchens? There are two types– infrastructure cloud kitchens and brand operators.

Infrastructure cloud kitchens

These are centralised licensed commercial food production facilities that enable a business to manufacture and distribute food.

Many of the facilities provide location and equipment services to delivery-optimised restaurants, catering companies, meal-prep companies, packaged food producers, and food product testing. 

The use of cloud kitchens has become more popular to lower overheads and increase margins. This, combined with a rise of the food delivery industry has seen cloud kitchens become the go-to option for entrepreneurs to start their own food business on limited startup capital.

Also Read: SG healthy food chain SaladStop closes US$8.8M round to deepen its footprint via cloud kitchens

Brand operators

Meanwhile, brand operator kitchens focus on delivery-optimised restaurants that are distributed through commercial kitchens. Brand operators find value in renting industrial kitchens and distributing through delivery aggregators as it is more economical and affordable.

Significant rental and staff expenses and rental commitments can be kept to a minimum,m allowing owners to focus on their branding and product instead of financial risk and administrative duties. 

Why has it become so popular in recent years?

The rise of Instagram and other social media platforms has become a catalyst for entrepreneurialism in recent years, spurring demand for these facilities. Many of these fledgling companies are deterred by the capital intensive nature of having to invest in facilities required to run a successful F&B outlet.

But with the rise and introduction of cloud kitchens, barriers to entry have been significantly lowered. Now, entrepreneurs can pursue their passion for food with minimal risk by using cloud kitchens.

These facilities are rented out and can be used as a testing ground for an individual’s or business’ venture while building on their consumer base. 

Many recognise the opportunities presented by food aggregators as it enables them the opportunity to reach out to a broader audience as food delivery services flourish. Entrepreneurs can gain access to data from aggregators to develop products that appeal to their customers.

The cloud kitchen model allows the focus to be centred on delivery-only distribution and creates fewer distractions compared to a traditional restaurant.

What are the risks?

Much like any venture, starting a cloud kitchen business whether as an infrastructure provider or brand operator comes with risks. Some of these include:

Food quality

As a delivery-only brand, businesses operating digital restaurants will have to separate themselves from traditional restaurants by improving on certain aspects of their delivery.

Also Read: How cloud kitchen startup COOKHOUSE, started amidst COVID-19, managed to win 35 F&B clients in Malaysia within a year

Where traditional F&Bs can rely on their reputation to attract sales, brand operators must work tirelessly to ensure that the quality of their product is of the highest order. By operating these brands, they must ensure the food they produce can travel well enough during the delivery process that it does not degrade or negatively affect the quality of the food. 

Reliance on third-party delivery service providers

Brand operators will need to hedge their risks and use a variety of aggregators. This way digital restaurants should be able to reach a diverse mix of consumers. With no physical presence to garner the attention of new customers, this multiplatform approach will ultimately protect it from poor performance compared to if it simply was available on a single platform.

Reliance on third-party aggregators could also pose logistical complications and some things may be out of its control.

For instance, food aggregators are closely scrutinised over the treatment of their riders, which is something a brand owner cannot control. Brands must ensure the platforms they are on can cope with the volume of deliveries and the quality of services provided. 

Regulations

Food production is a highly regulated industry that serves to protect the interest and ensure the safety of consumers. Uncertainty in how these facilities operate presents a risk that may cause health authorities to become more stringent on infrastructure providers.

For example, regulators may seek more oversight on infrastructure providers given the ease with which a brand can move in and out of these premises.

Who are the key players in the industry today?

Today we see an abundance of cloud kitchens in the global market, with the Southeast Asian market quickly adapting to this change. As of 2019, the value of the global cloud kitchen industry was valued at an estimated US$865 million while the Asia Pacific region represents approximately half of the global market, with a value of US$463 million.

Indonesia and Singapore are quickly becoming breeding grounds for the cloud kitchen explosion in Southeast Asia. Companies are popping up and offering their brand or infrastructure services to the mass consumer market seeking to dip their toes and broaden their horizons in newer and more exotic cuisines.

Also Read: Everything from soup to nuts: Meet the 27 ghost kitchen startups in Southeast Asia

Some of the more notable names in the region include Hangry, a company that currently operates four brands in their network of kitchens in and around the Jabodetabek area (the greater Jakarta area), Grain, a digital restaurant providing healthy on-demand and meal plan services to their consumers, and most notably dahmakan, a cloud kitchen company based in Malaysia recognised as one of the first-ever Malaysian startups to be admitted into the Y-Combinator accelerator program.

On the infrastructure side, we see companies like Coox, Singapore based Smart City Kitchens, and Cookhouse, a premier infrastructure provider based in the KL and Selangor areas of the Klang Valley region in Malaysia.

Several aggregators, too, have recognised the opportunity and sought to capitalise from their relationships. Grab Kitchen and GoFood Kitchen have taken the opportunity to partner with some of the more notable brands in their portfolio.

By providing their own cloud kitchen services, they seek to help their brands grow on the platform by providing them with a wider network of kitchens that will access more consumers.

Where is the industry now?

Although the industry is not new, it is still in its early days and has significant potential to grow. Social media continues to be a source of inspiration as many people find success in their pursuit of starting their own food businesses.

With the abundance of new homegrown businesses coming into popularity, the potential growth of the global market is expected to witness a CAGR of 21.7 per cent through to 2024 and the Asia Pacific region will represent a US$1.3 billion market.

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: dmitrytph

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Wealthech startup Kristal AI looks to democratise private banking

Asheesh Chanda, Founder and CEO at Kristal AI

Kristal AI offers private investors a service that removes the biggest barrier for people wanting to invest in personal wealth — access to elite investment opportunities which have traditionally been restricted to privileged customers of private investment banking companies. Founder and CEO Asheesh Chanda is an ex Hedge Fund manager who has spent 15 years handling investing for high net worth clients at institutions like Citibank, BNP Paribas, and JP Morgan.

Their model is based on deploying proprietary AI-driven robo advisor technology and leveraging its committee of investment experts. Kristal AI has an internal committee that curates a community of global experts to make high-end elite investment products accessible to millions of potential new investors. “Kristal AI wants to transform the private banking world from one where only the privileged few have access to the best service and investment opportunities, to a world where investments are more accessible, transparent, and personalised through the power of technology and human expertise,” said CEO Chanda.

Also read: QBO partners with e27 for Startup Venture Fund Pitch

The leadership team at Kristal AI wants to create long-term value for clients utilising technology to offer digitised wealth management services which they believe is the way to bring value and innovation in this sector. “Today, only the rich get access to the best advisory and best products. We see this is a problem. At Kristal one can get access to institutional products like VC Funds, Hedge Funds, Pre-IPO at 1/5th the ticket size,” explained Chanda. 

Clients get personalised advice and portfolio creation services and unlike traditional private wealth accounts, there are no account minimums to get started. Chanda formed the idea of starting Kristal AI based on his personal experience of trying to access private banking services and discovering that the personal wealth management space was not accessible even to individuals with a fairly substantial amount of personal assets to invest.

What pushed Asheesh Chanda to build Kristal AI

Chanda described his experience of trying to open a private wealth account: “Sometime in 2016, as I was trying to open a private wealth account for myself. I discovered that even after having a few millions in my bank account, I couldn’t get access to the best products and advice at the bank. Why? Because I was a million short, in other words I wasn’t “rich” enough. Some frustration, some anger and after maybe a few rounds of beer, I realised that there is an opportunity to change something for the better.”

These insights led to the main idea behind Kristal AI: to address this gap in the personal wealth management space by serving investors whose requirements lie somewhere between the products offered by retail and private banking — and to apply technology-enabled innovation in helping to bridge these gaps.

“There is a segment of investors who are stuck between Retail and Private banking. They want something more personalised and of high quality than what they get in retail banking, but since they aren’t ‘rich’ enough, they can’t get a private banking service,” Chanda pointed out. 

Also read: QBO partners with e27 for Startup Venture Fund Pitch

To meet the needs of this burgeoning segment Kristal AI came into existence, offering private wealth accounts that don’t require a minimum balance to get started. In addition, Chanda found that “there is also a segment of second-generation affluent investors who prefer a more high-tech experience and don’t trust the high-fee model of traditional private banks. They like the low fee, low minimum products, and AI-enabled human advisory.”

The core approach of Kristal AI’s investment methodology is a wealth advisory service based on a unique collaboration between an Investment Committee comprising industry experts and Kristal AI’s cutting-edge data-driven AI algorithm. 

Key innovations that set them apart

Their personal wealth management service differentiates itself from other competitors chiefly through the following key innovations:

  • Advisory and execution over just execution

According to Chanda: “Most wealth tech platforms are pure transaction platforms catering to DIY clients. However, Kristal realises that not everyone has the time and interest to manage their wealth, hence we provide advisory support to help build personalised portfolios for clients and also monitor the performance.”

  • Premium products at retail prices:

Chanda explained that no wealth tech platform offers the range of products that Kristal AI has: “Other platforms are limited to stocks and ETF, while we offer VC Funds, PE Funds, Hedge funds, Pre-IPOs, and Digital Family Office. Additionally, we offer these premium products at retail prices. A fund with a 1 million dollar ticket size is available on Kristal for $50,000. No private bank is able to offer such competitive pricing,” he adds.

  • Not just robo, but Human + AI Advisory

Unlike most robo advisors which are purely tech plays, Kristal advisory is hybrid, explained the Kristal AI CEO. “With Kristal AI, the AI-based algorithm is complemented by an investment committee with 130 years of experience, whose inputs are taken in by the algorithm to provide personalised advisory to investors.” Plus, there is an investment advisory team dedicated to help affluent investors invest and monitor portolfios.

200 investment products to choose from

Looking at the range of products listed on Kristal AI’s website one can see a diverse and wide range of over 200 investment products to choose from for private wealth investors, including their customised products they call “Kristals”.

From curated ETF portfolios to alternative investment options such as high potential startups, Hedge funds, VC funds, crypto funds, Pre-IPO deals, and more, clients get to choose from a number of options. Private individual investors would not usually have access to these kinds of investment products without being charged the hefty fees associated with investment banks that serve institutional investors.

Also read: B2B platform Komachine on a mission to transform the industrial machine industry

Chanda laid out the main advantages of choosing Kristal AI as your private wealth manager as:

  • More choices, not just in stocks and ETFs, but a broad range of investment products and solutions including their proprietary algorithm based tool.
  • Curated products that are fully assessed for safety and quality of investing, so that investors can fund with ease.
  • Advisory support from a dedicated advisory desk to help choose and monitor investments. “An ideal service for busy clients who are time-poor,” explained Chanda. 
  • Low cost of investing — No account opening or maintenance charges are levied and no minimum balance is needed to open an account. However, Kristal does recommend a minimum amount of USD 500. 

Kristal AI began as an ambitious idea sketched out on a blackboard by CEO Asheesh Chanda and Vineeth Narasimhan in 2016 and is now present and thriving in three countries. “We have hit SGD500M in AUM and have expanded in India, UAE, and Hong Kong,” he proudly stated.

Chanda believes the success achieved so far is due to Kristal AI’s team of financial advisors, researchers, and market experts who take a “unique yet holistic approach to our clients’ needs and work hard to achieve their goals.” Chanda concluded by saying Kristal AI is committed to providing the best investment strategies to investors and building a world-class community of portfolio managers, affiliated partners, and investors.

– –

This article is produced by the e27 team, sponsored by Kristal AI

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Preparing kids for the future of work by asking founders the skills they hire for

kids

The best way to predict the future is to invent it. The next best way? Ask the people inventing it.

According to the World Economic Forum, 65 per cent of kids will work in jobs that don’t yet exist.

Yet mainstream education is still teaching kids the same math, science, and history subjects you and I were taught decades ago. Clearly, schools are not doing enough to prepare kids for jobs of the future.

Asking founders building the next Apple/Amazon/Google what skills they are hiring for is a great proxy for the skills needed for future jobs. The future will be invented by the people building the next big thing.

Ask any founder what the biggest determinants of their company’s success are, and talent inevitably comes up. Good founders have an uncanny ability to peer into the future and see what’s next. They also know the skills they need to be hiring for to build the products that will get them there.

If anyone has an inkling of what jobs of the future will look like, it’s founders who are inventing the future. So that’s exactly what we did.

We sat down with the founders of three of the fastest-growing tech companies in Southeast Asia –Ninja Van, Glints, and Yola-– and asked them what skills they are hiring for right now to determine a good proxy for the skills needed for future jobs.

Also Read: Businesses are learning to code without coding

The three skills they told us were 1) first principles thinking, 2) clear communication, and 3) self-awareness

A key question I get is If kids can learn to code, why can’t kids learn first principles thinking? Or clear communication? Or self-awareness?

One of the best analogies I’ve come across of traditional teaching versus designing for learning is filling a cup versus lighting a fire. Kids are not empty vessels to be filled with knowledge. They are curious, creative human beings whose natural instinct is to build, not memorise.

Kids like coding not because they get a kick out of writing code, but because they are excited about what they can build with code. What if we help kids understand first principles thinking (breaking down complicated problems into basic elements) and show them how they can apply reasoning from first principles in everyday life?

What if we teach kids the basics of clear communication and show them how to negotiate with parents more effectively? Or what if we teach kids self-awareness to help them discover strategies that cultivate better habits and behaviours that will guide them for life?

By asking founders what skills they hire for, we help kids develop skills that are relevant to future jobs, jobs that may not exist today. At Doyobi, we work directly with founders to design courses that help children ages 9-15 develop these skills.

Also Read: How the future of work will shape the future of mobility

For example, in the Critical Thinking Skills Series: How to think from First Principles course, learners practice using first principles thinking to identify fake news, break down a problem, and learn how to apply first principles thinking at school.

Firas Alsuwaigh, co-founder and Chief Strategy Officer of Ninja Van, co-developed this course with us because he noticed most people apply complex solutions to difficult problems. The best people find simple ones. Simple solutions require you to reduce problems to their first principles. Why leave it to chance that kids will learn first principles if we can get them started on it today?

Founders work with us because they see how these skills make employees more effective in the workplace, and how they don’t come naturally to most people because they are overlooked in school. Founders also relish the opportunity to give back to the community by doing their bit to help kids prepare for a future that will be shaped by innovations in technology.

Getting founders who are inventing the future to work with us to develop courses that prepare kids for the future creates a virtuous cycle that reduces the likelihood of kids leaving school unprepared for the real world.

Technology has had a major impact on the way we live and work and will continue to transform industries. We cannot predict what jobs will exist in the future, but we can help kids develop the skills they need to be adaptable and resilient.

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

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

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The inevitable digitalisation of education and what type of startups edutech really needs

education

The education industry has been through many changes and has experienced exponential growth in recent years due to the global pandemic.

Despite the advancement in technology, many educators are not leveraging it due to a lack of technical knowledge and scepticism as they continue with their manual and tedious work processes. 

Even though educators have long been adopting technology in their teaching– from the traditional education of using chalk/ blackboard, marker/ whiteboard, transparency/ overhead project to PowerPoint and online videos/ illustrations, many of them cannot fully comprehend nor maximise the usage of those edutech features.

With the maturity of technology, it is essential to focus beyond the hardware and software components and the digital aspects as the industry evolves into the digital world

These led to the emergence and assimilation of artificial intelligence in work processes to improve educators’ efficiency and effectiveness while maintaining academic integrity.

Going beyond the ability to deliver lessons virtually and remotely, it is equally important to resolve other problems educators face and replicate the social aspect found in a traditional classroom.

Need for efficient teaching

According to the McKinsey Global Teacher and Student Survey, educators work longer hours at about 50 hours a week. Still, they are spending less than half of the time in direct interaction with students.

The increased burden of lesson preparation work includes mundane admin chores like the ongoing collation of teaching materials and the creation of worksheets, in addition to class management tasks. 

Teaching time was further reduced by grading students’ work. A report by OECD found that countries like Portugal and Singapore spent nearly twice the international average of 5 hours, at 10 hours and 9 hours, respectively. 

These time consuming yet essential works takes away precious time which can be better allocated for teaching and assessing students’ performance to identify learning gaps. 

Imagine these tedious processes can all be stored in a cloud. All the years of hard work in content creation are digitised, stored and organised in your library, easily accessible everywhere with just a click of a button.  

Such automation of administrative workload improves efficiency and reduces the hours that educators have to work beyond standard hours.

The time saved contributes to a more balanced work-life and adds to the positivity of educators’ well-being and mindset, which impacts the way they deliver lessons.

Need for effective teaching

Every child is unique, and every child’s learning progress is different. The time for a “one-size-fits-all” lesson plan is long gone.

With globalisation, students’ needs become more complex, and stakeholders’ expectations rise along with it. As such, there is also increased pressure on educators to deliver the results.

Also read: How edutech is solving the global teacher’s crisis

To optimise learning outcomes based on the limited teaching time, the teaching curriculum has to be well-thought-out and executed. The need for educators to assess and determine their students’ understanding and mastery of topics to pinpoint areas for improvement become extremely important. 

Traditionally, assignments are marked manually and returned to students for their revision. There is no easy way of obtaining class level statistics on each question attempted or identifying areas for improvement for each student.

This led to the increasing significance of learning analytics benefiting both the educators and the students. With technology embedded into teaching, educators can quickly access students’ performance progress reports and identify learning gaps.

Vital information showing the students’ strengths and weaknesses and summarising from the school level, class level to individual student level is made possible.

Such analysis acts as the first line of defence, sending educators to make a prompt revision to their teaching plans. It also equips them with in-depth knowledge of students’ learning progress to curate personalised lessons, facilitating more effective learning to boost academic outcomes. 

Such personalised education enhances students’ learning experience and allows them to reach their full potential. 

Schools that can provide diagnostic assessment benefit not only educators and students but also the parents. Parents who entrusted their children to the school will now have more transparency and, thus, have more confidence in the school. 

Just like lesson plans, it is also not a ‘one-size-fits-all’. Different schools and different subjects will have other focused areas. For instance, a system that caters to Math would emphasise calculations and working steps. Thus, it would not be suitable for use in English, especially for composition writing.

The data points for analysis are very different; features like Rubric assessment are essential for composition writing but not Math or Science. 

Therefore, a genuinely effective teaching platform also stems from having customisable features and tailor-made to fit the needs of educators and their teaching plans.

Need for 2-way communications

Besides academic assessment, communications are of utmost importance in fostering the relationship between educators and students in non-physical classroom settings.

Online learning is no longer just conducting lessons virtually but as much as possible to recreate the experience of in-person learning with active communications from educators and students. 

Disseminating and retrieval of information are also done most effectively via constant communications.

Active interaction encourages students to participate in the discussion, enables the better articulation of lessons taught, provides assurance and consultation support in the absence of physical class, and fosters relationships and builds life-long social skills. 

To overcome the problem, there has been an increasing interest in interactive whiteboards to facilitate collaborative learning.

Therefore, a total edutech solution also needs to consider enabling educators to provide real-time valuable and detailed feedback beyond text format. 

Timely communications and engagement are vital factors to students’ success and enhance the e-learning environment.

The emergence of digital learning

Education is an essential part of children’s life where they learn and socialise, playing an essential role in their growth and development. Therefore, technology is now seen as an enabler to sustainable education.

It brings everyone out of their comfort zone to explore and adapt technologies to keep life as normal as possible. Economically, harnessing technology has also become a business survival tool. 

Also read: How edutech startups can accelerate active learning

The demand and expectations that came along with COVID-19 have brought the education industry into a new era.

With uncertainties still looming, we will continue to experience disruption to schools and learning centres, resulting from the implementation of restrictive measures or abrupt closures. 

As echoed in the Singapore Parliament by its Education Minister, Chan Chun Sing, on Nov 2, the workload for teachers has more than doubled to keep education going during the pandemic. The stress level has also been at an all-time high, with more school staff seeking support from in-house counsellors.

This highlighted the urgency for schools and learning centres alike to relieve the tension educators face before they burn out. Some measures are being explored to reduce the workload to allow educators more time. 

Short term measures such as re-prioritising school programmes and offering sabbatical leaves are being considered to provide educators with more flexibility and time away from work to rest and ‘reset’ themselves. However, technology will be explored for the long term to scale up teaching resources. 

Therefore, acceptance and adoption of new smart technologies are inevitable, as they vastly improve ones’ efficiency and effectiveness. Like the saying from George Couros, “Technology will not replace great teachers, but technology in the hands of great teachers can be transformational.”

Technology will be deeply embedded in the teaching journey, acting like a facilitator that complements educators in making purposeful interventions and bringing learning to life for students, accentuating the experience of total education

And that also sums up SmartJen motto on empowering educators with knowledge on digitalisation to make personalised education easy. We redefine total education by providing a holistic online teaching platform that supports educators from the beginning until the end to achieve collaborative and engaged learning.

Our unique integrated e-assessment and learning management system streamlines work processes and enables personalised education based on data and AI-enabled technology.

Completing the virtual classroom with video conferencing features and interactive whiteboard, educators can now provide onsite and offsite teaching seamlessly.

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

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

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Crypto mining firm Bitdeer takes SPAC route to go public in US at US$4B valuation

Singapore-headquartered crypto mining company Bitdeer Technologies has announced a merger with the blank-cheque company Blue Safari Group Acquisition Corp. to go public in the US.

The deal values Bitdeer at approximately US$4 billion.

The combined entity is expected to be renamed Bitdeer Technologies Group and remain a publicly listed company on the NASDAQ.

The transaction is expected to be completed in Q1 2022, subject to, among other things, regulatory approvals.

“As a leader in crypto mining, we will continue to solidify our leading position in the crypto mining space. Today marks a significant milestone for Bitdeer, and we strive to create value for our broader group of stakeholders in the future, including our clients, employees and shareholders,” founder and chairman Jihan Wu said.

Bitdeer provides comprehensive digital asset mining solutions to its customers. It handles complex processes involved in mining such as miner procurement, transport logistics, mining data centre design and construction, mining machine management and daily operations.

Also Read: How Binance acquired 35 per cent market share in a year with its new crypto derivatives line

The firm currently operates five proprietary mining datacenters in the US and Norway.

Blue Safari believes the partnership presents an opportunity to invest in its target sectors, such as fintech, IT, and business services. Following the close of the transaction, the combined company will continue to be led by Wu.

Naphat Sirimongkolkasem, CFO and director of Blue Safari, stated, “The crypto mining space has attracted tremendous attention in recent years, and Bitdeer’s innovative platform has propelled it into the limelight among the most illustrious players in the sector.”

Blue Safari Group Acquisition Corp. is a special purpose acquisition company sponsored by BSG First Euro Investment Corp., a British Virgin Islands company. It was formed to effect a merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination with one or more businesses or entities.

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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New innovation model to drive collaboration in uncollaborative real estate sector

real estate

Innovation in the built environment sector cannot be realised based on a thrust from a single party alone. The built environment sector has traditionally been thought to be large, slow-moving and conservative, and has lagged other sectors in innovation and digitalisation.

This push towards digitalisation must occur at a whole-of-sector level, with cooperation within and across different parties at the corporate, emerging company, and governmental levels.

Awareness of the lack of digitalisation

Countless studies by organisations such as the OECDand management consulting firm McKinsey & Co have rated the real estate and construction sectors as amongst the least digitised. 

A 2020 Statista survey of global real estate C-suite executives found that approximately 33 per cent of respondents shared that their companies did not have the resources and skills required to operate a digitally transformed business.

Thus, these executives realised the ability to generate huge benefits through embracing the technologies which have disrupted the siloed industry.

Also Read: How did Ninja Van build a culture of creativity and innovation

The importance of integrating technology into the real estate sector

Innovations can deliver strong returns on investment and capital expenditure costs can be spread across asset life cycles.

Smart technologies can also help boost top lines– the European Commission found that a smart, higher-performing building can add up to 11.8 per cent in lease value and fetch increased valuations of up to 35 per cent.

However, sector-wide digitalisation cannot be achieved by corporates alone and must be undertaken at an ecosystem level.

Real estate sector in Singapore

In Singapore, the government has been leading the digitisation charter for the real estate sector, but there is a gap in the model for ecosystem-wide collaboration due to legacy mindset issues in the private sector.

In a recent survey on technology and innovation conducted by the Urban Land Institute and Taronga Ventures, it was found that internal challenges were the largest barriers to the adoption of innovative technologies.

Specifically, resistance to change, business-as-usual conflicts and lack of budgets were listed as amongst the largest challenges facing real estate corporations as they undertook their innovation journeys.

To overcome the former two issues, corporates should work closely with emerging technology companies to design optimal change management strategies to seek buy-in from executives.

Collaborating closely with governments by leveraging digitalisation programs, knowledge sharing, and grants can help alleviate some of the budgetary issues faced by corporations.

Hence, adopting a collaborative tripartite can help drive innovation across the sector.

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

Introduction to RealTechX Singapore

An example of a model is RealTechX Singapore, an innovation program that promotes shared support for real estate technologies and knowledge sharing between corporates, emerging technology companies, and government agencies.

Corporate partners in the program include PGIM Real Estate, Mitsubishi Corporation, Nomura Real Estate, CapitaLand, Verizon, and Lendlease’s International Towers.

Together with government partner Enterprise Singapore, the innovation program seeks to support emerging real estate and real asset (RealTech) companies in the sector by accelerating commercial opportunities with corporate partners.

The revolutionary innovations offered by program participants are at the forefront of the RealTech space and span the real estate life cycle, from digital construction management to smart building and smart city solutions.

Other innovations launched digitally

In the digital construction management space, Singaporean companies like Hubble, VRcollab and Voox are leveraging cutting edge technologies to improve collaboration, governance, and safety in construction sites, delivering better quality outcomes with higher productivity.

Further down the life cycle, intelligent solutions such as SmartClean provide IoT sensor-based and data-backed facilities management, while TransferFi is revolutionising the sensor space with its wireless power network technology that abolishes the need for cabling or batteries.

Finally, solutions are also providing corporates with key ESG outcomes– Hydroleap has significantly shifted the water treatment space using its electrochemical technology that is not only cheaper but also greener.

Its technology can be applied to multiple use-cases, including wastewater treatment from construction worksites, or in the treatment of water used in data centre cooling towers.

Corporates have the opportunity to readily test and scale these solutions as they drive innovation in their portfolios and assets.

Along with the strong support RealTech companies and corporates receive from Enterprise Singapore (ESG), this new tripartite model has proven an efficient and successful method of driving innovation in the sector.

Also Read: Tech scouting and innovation partnerships: How co-creation can foster growth post-COVID-19

Establishing and building a network

The agency has been at the forefront of supporting the industry since its inception – in addition to providing support for emerging companies through financial and non-financial assistance, it looks to create network-building opportunities through events like the Singapore Week of Innovation and Technology (SWITCH) which was held from 8-12 November 2021.

SWITCH brought together thought leaders, entrepreneurs, and investors to catalyse collaboration that will bring a meaningful exchange across different fields and markets.

Partnerships with investors, strategic partners, public sector agencies, and emerging technology companies must be formed to drive this change.

The traditionally competitive and uncollaborative built environment sector must work together to overcome a lack of innovation capability and knowledge gaps.

It is extremely encouraging to see that these groups are recognising the benefits of partnerships and are embracing this new model of collaboration.

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Ecosystem Roundup: Malaysia gets new US$25M startup fund, NextTech sets up US$50M fund in VN, Kopi Kenangan may soon hit unicorn status

Kopi Kenangan may hit unicorn status with Falcon Edge-led round
As per a report, the coffee chain is in advanced talks to raise US$100M in Series C; Its existing investors, including Sequoia, GIC, and B Capital are also participating; In 2020, the online beverage retailer raised US$109M Series B led by Sequoia.

Crypto miner Bitdeer to go public through US$4B SPAC merger
The Singapore company was spun off from Chinese bitcoin mining giant Bitmain in January and has been doubling down in its adoption of renewable tech in digital asset mining; The SPAC Blue Safari Group went public in June, raising US$57.5M from IPO.

Vietnam’s NextTech sets up US$50M fund to invest in blockchain startups in SEA
Next100 Blockchain will also serve as a venture builder to incubate entrepreneurs and qualified technical experts in the blockchain domain to start businesses under NextTech; AntLaunch, a decentralised platform that allows crypto-based projects to fundraise, will conduct due diligence of the projects.

Lazada co-founders’ new e-commerce enabler CREA locks in US$25M from SuperOrdinary
The collaboration will help CREA attract new brands to SEA’s e-commerce ecosystem by offering a one-stop solution covering the US, China and SEA; CREA’s core services include store and channel management, fulfilment, digital marketing, data insights, creative and omnichannel solutions.

Kejora Capital, Sunway Group launch new US$25M fund for Malaysian startups
It will also introduce an initiative called “Jakarta Express” to help Malaysian startups and investors explore opportunities in the Indonesian market; Alongside Orbit Malaysia’s current active investments, Kejora Capital has previously invested in regional startups in various industries.

Gojek forms JV with energy company to develop two-wheel EV infrastructure in Indonesia
Gojek and TBS Energi Utama will team up to build a comprehensive and scalable EV ecosystem, including two-wheel EV manufacturing, battery packaging, battery swap infrastructure and EV financing.

Jeff Bezos-backed Indonesian startup Ula rakes in US$23.1M from Tiger Global, Flipkart co-founder
Ula is a horizontal multi-category wholesale e-commerce marketplace that combines modern retail’s technology, tools and skills with the lean cost structure of traditional micro-retail; It claims to have grown 230x since its launch and offers over 6K products and serves 70K+ traditional retail stores in Indonesia.

Sleek lands US$14M Series A to offer back-office services to SMEs worldwide
Investors include Jungle Ventures and White Star Capital; Sleek automates and integrates company setup, financial and regulatory reporting, bookkeeping, and banking services; Sleek manages a portfolio of over 5K businesses that produce US$700M in sales and complete over 1.4M accounting transactions in 2020.

Thai Wah Group launches VC arm to back food, agtech startups in SEA
The VC firm will invest in eight to 10 early-stage startups over the next two to three years in its first phase; It will look at startups that are revenue-generating and on the brink of scaling their business.

Thai e-logistics startup GIZTIX nets US$10M in Series B, eyeing IPO in 2025
Investors include WHA Group, AddVentures, KK Fund, and CAC Capital; GIZTIX help business customers to outsource delivery services and manage their own trucks simultaneously.

SG-, UK-based payments firm Pomelo Pay banks US$10M Series A led by Inference Partners
Pomelo Pay provides integration with over 30 payment networks globally. It’s used by both banks and NBFIs; It plans to enter new markets in Europe and Asia; The startup said it has processed over US$500M in payments for the year, projecting a 5x increase by 2022.

InLife leads investment round of Filipino D2C insurtech platform Maria Health
Co-investors are Wavemaker Partners, tryb Group, and Celo Foundation; Maria Health aims to simplify comparing, choosing and purchasing health insurance through its D2C marketplace; About 10% of its first-time coverage buyers are families of Overseas Filipino Workers, and 75% are women.

Golden Gate Ventures co-leads US$4M round of Indonesian healthtech firm Klinik Pintar
Co-investors are PT Bundamedik, Skystar Ventures, and Sequis Life; Klinik Pintar helps its users book teleconsultations, virtual health services, as well as in-clinic sessions; It currently has over 120 clinics from 60 Indonesian cities on its platform.

Ex-Rocket Internet Asia head secures US$3M seed capital for his on-demand workspace venture
Investors include YC, GFC, Pioneer Fund, Seed X, Starling Ventures, and TSVC; Deskimo provides on-demand access to over 100 professional workspaces in Singapore, Hong Kong, and now Jakarta.

Resync scores US$2M from GGV Capital to expand energy management solutions to Asia, Middle East
Resync provides an energy cloud platform for renewable energy assets, building energy management, and industrial energy management; So far, Resync boasts of having deployed its solutions in more than 150 buildings and 300 MWp of solar assets with over 20 customers in seven markets in APAC.

Malaysia’s ReSkills, ‘Netflix model in e-learning’, bags US$1.5M to expand across SEA
Investors include JSF Platinum and unnamed angels; ReSkills allows coaches to build online courses on their preferred topics and applies a subscription model for learners; It focuses on education-based services, with a target age ranging from 15 to 35 years.

AgFunder-backed agritech accelerator Grow opens applications for 3rd cohort
Grow will invest up to US$200K for each startup accepted to its third Impact Accelerator cohort; Applicants should at least have a minimum viable product, operate in at least one market, and be “well on the way to establishing product-market fit.”

Gojek officially launches GoCar service in Vietnam
Gojek had wanted to roll out car-hailing services in the country much earlier but faced difficulties in getting permission from regulators; It also had to reshuffle its leadership team in Vietnam, losing two CEOs within 18 months.

Indonesian influencer platform KaryaKarsa bags US$500K from Accelerating Asia, others
KaryaKarsa can help content creators distribute and monetise their works, such as books, comics, and videos; Currently, there are 40K creators and 300K users on its platform; The company will use the fresh funds to provide more offerings and onboard more content creators.

Image Credit: Kopi Kenangan

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3 easy tips for SMEs to build overseas customer loyalty

customer loyalty

It is no secret that a loyal customer is the most valuable type of customer. They are likely to bring repeat business, spend more and try new products.

Tough business conditions have put pressure on businesses to cultivate loyalty, which is not surprising given an increase in customer retention by 5 per cent can increase profits by 25 per cent to 95 per cent, according to an earlier study by Bain and Co.

This begs the question: how can small and medium-sized businesses (SMBs) in Hong Kong with limited resources cultivate customer loyalty with their newfound overseas customers from thousands of miles away?

How can they capture growth opportunities brought on by the pandemic, not least with time zone differences, differing consumer preferences and more?

Businesses often believe that the panacea to loyalty is a loyalty scheme; however, this should not be the only consideration. The starting point should be an overall strategy to loyalty that incorporates hygiene factors and elements that build trust with the customer.

Brand loyalty starts with a smooth customer experience

One major hygiene factor is to ensure that there is a smooth customer experience. Not only does this create a reason for customers to return, but it also prevents the consequent negative effects associated with poor experiences.

This is particularly important for PayPal as we look to design products that help our business clients across the world ensure a seamless and simplified payment experience for their customers: a key aspect to building and retaining loyalty.

This is even more important when engaging with customers in different time zones since the lengthened service and query response times create friction in the overall experience which add to the chance of a “moment of truth” being missed.

Also read: 3 ways to get more customers and increase loyalty

Investing in the right e-commerce and payment infrastructure to ensure a smooth customer journey can go a long way. For instance, allowing guest checkout for first-time customers or a quick click to complete checkout for repeat customers will reduce cart abandonment and maximise the chance of securing purchases.

Consumers trust brands that resonate with them

Many businesses are familiar with drivers of customer loyalty here in Hong Kong, but these can be very different from the corresponding factors in international markets. A 2019 study conducted by KPMG found that the biggest drivers of brand loyalty for Hong Kong consumers were personalisation and meeting expectations.

Although these are to be expected, a 14-market study by Edelman reveals a more complex picture as it found that 43 per cent of consumers will stay loyal if they trust a brand, even when something goes wrong.

Nowadays, especially since the pandemic, consumers trust brands with cultural, purpose, and societal aspects that resonate with them.

Communicating what your brand stands for can be a powerful tool in acquiring customers who share your beliefs and are more likely to remain loyal. This will create resonance in existing loyal customers and galvanise them to action, no matter where they are in the world.

Many examples of successful global brands have started small but gained a loyal following because of their purpose. This could be a commitment to organic products, charity donations, or simply bringing your personality into your products.

Rewards mechanisms incentivise customer purchases and drive loyalty

When it comes to loyalty schemes, an area worthy of discussion and a popular marketing tactic in Hong Kong is customer rewards, yet it is often misapplied.

Many businesses treat rewards as a short-term promotional giveaway; however, this mechanism only incentivises new or existing customers to buy a particular product.

Instead, businesses should design reward mechanisms to encourage new customers to behave like their most profitable fifth-year customers.

Also read: Building up customer loyalty with emotional branding

Potential examples include rewarding customers that participate in early-bird events or regularly make purchases from new lines.

Some might think that being successful in building loyalty with overseas customers is expensive and complicated. However, in recent years, there has been an explosion of eCommerce platforms that sellers can use to reach new customers.

Many even offer localised marketing to help businesses attract and engage customers without learning a new language.

Technology is lowering the barriers to building a great customer experience and cultivating customer loyalty. Together with the right fundamentals, small businesses selling cross-border can punch above their weight and capture new growth no matter where their customers are.

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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Could China’s CBDC threaten decentralised cryptocurrencies?

CBDC

As China continues to make advances in developing its own central bank digital currency (CBDC), it’s worth asking how the arrival of currencies like the eYuan will impact the world of cryptocurrencies. Could CBDCs pose a threat to bitcoin’s dominance? 

China’s state-sponsored digital currency, the digital renminbi, commonly referred to as the eYuan, is already being developed to solve fiat currency’s inefficiencies in cross-border transactions. 

The country’s central bank, the People’s Bank of China, claimed in a recent white paper that the digital renminbi is “ready for cross-border use,” however, for China’s new digital currency to be operational, it will need other international CBDCs to be functional to trade with.

With this in mind, the People’s Bank of China supports the development of global central bank digital currency standards and works alongside other monetary authorities to launch multi-CBDC arrangements. 

As the data shows, global efforts towards the development of CBDCs has grown significantly over the past three years, with more than 84 institutions actively engaged in CBDC work, while experimentation towards the development of digital currencies has also grown globally in the same time frame. 

So what will central bank digital currencies look like? And will they have the potential to muscle in on a cryptocurrency market dominated by the likes of bitcoin? Let’s take a deeper look at a growing movement that has the potential to overhaul finance as we know it: 

What is a CBDC?

As an emerging technology, there are no templates for what a CBDC should look like as a currency.

Typically, these digital currencies are formed by government priorities, constitutional limits and individual policy and design decisions, meaning that each national CBDC is likely to look different depending on where you are. 

But what is a central bank digital currency? The term refers to the virtual form of a fiat currency. CBDCs act as a form of an electronic record or digital token of a country’s official currency.

This means that it can be issued and regulated by a nation’s central bank. The currencies’ digital nature can help simplify the implementation of monetary and fiscal policy whilst promoting better financial inclusion in developing economies through fintech solutions.

Also read: What does the future of CBDCs actually look like and why does it matter?

Unlike cryptocurrencies, which run on decentralised blockchains– meaning that no single entity holds the assets or retains the information about individuals using them– the centralised nature of CBDCs has some privacy concerns depending on how respective governments use the digital currency. 

China’s system isn’t even the most advanced form of CBDC globally, with both Cambodia’s Bakong and the Bahamas’ ‘Sand Dollar’ being rolled out on a larger scale, according to PwC data.

However, it’s worth noting that China is the world’s first major advanced economy to start implementing a digital currency at any scale. Its lofty ambitions make the country a significant innovator in the field. 

Could CBDCs Replace Cryptocurrencies?

As news of international projects to develop central bank digital currencies spread around the world, In 2018, Nouriel Roubini, a professor of economics at New York University’s Stern School of Business, wrote in The Guardian that “if a CBDC were to be issued, it would immediately displace cryptocurrencies, which are not scalable, cheap, secure, or decentralised.

Enthusiasts will argue that cryptocurrencies would remain attractive to those who wish to remain anonymous. But, like private bank deposits today, CBDC transactions could also be made anonymous, with access to account-holder information available, when necessary, only to law-enforcement authorities or regulators, as already happens with private banks.

Besides, cryptocurrencies such as bitcoin are not anonymous, given that individuals and organisations using crypto-wallets still leave a digital footprint,” Roubini added.

However, in a recent CoinShares article, James Butterfill rebukes the notion that CBDCs can replace bitcoin and other cryptocurrencies, noting that crypto’s purpose is far too different to that of digital currencies. 

“Bitcoin and CBDCs are very different, with the former being of fixed supply while the latter is backed by fiat currencies,” Butterfill explains.

With this in mind, CBDCs take on a far more similar role to stablecoins, where users are far more inclined to spend their money.

Whilst Roubini is correct in claiming that CBDCs can outperform many cryptocurrencies practically, fixed supply means that crypto will always be seen as a far more effective investment opportunity. 

Maxim Manturov, head of investment research at Freedom Finance Europe, points to the mainstream emergence of cryptocurrency as a critical reason behind its coexistence alongside CBDCs, highlighting the emergence of major fintechs like Revolut and their efforts to accommodate cryptocurrency trading: 

“Revolut has grown into one of Europe’s dominant consumer financial technology companies, constantly adding new features. The app started as a way to avoid currency conversion fees when travelling but quickly added banking, trading and crypto features among dozens of products,” Manturov explained.

Also read: How interoperability between private and public players will accelerate the CBDC Race

Today, bitcoin is a globally recognised store of wealth, which has been adopted by significant finance players like PayPal and is accepted worldwide. The cryptocurrency’s fixed supply makes the asset closer to assets like gold rather than CBDCs, which behave more like stablecoins. 

As CBDCs make their emergence, it’s clear that digital currencies will play a key role in shaping the future of finance.

Though, it’s far more likely that they will emerge alongside the likes of bitcoin rather than replace the world’s most popular cryptocurrency.

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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