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GoBear shuts down amidst decreased demand for its financial products, services

Gobear

Singapore-based financial products comparison platform, GoBear, has announced that it will shut down its operations, joining the list of startups that were forced to end their operations due to the COVID-19 pandemic.

This comes amidst an extended period of decreased demand for its financial products and services, with travel insurance hit badly by the pandemic.

“GoBear has made the difficult decision to close the business. Our purpose was to improve the financial health of people across Asia and I’m proud and grateful for the contributions that all our employees and partners have made towards that mission,” said Adrian Chng, CEO of GoBear.

The company further added that it will have adequate financial resources to honour existing contracts with its customers and employees and will work with relevant authorities to ensure smooth closure of the business.

Founded in 2015 by CTO Ivonne Bojoh and Chief Commercial Officer Marnix Zwart (both left the firm in November 2019), GoBear operates a platform for insurance, banking and lending products in seven markets in Southeast Asia.

GoBear was initially meant to be a metasearch engine, before making a transition into financial services. It claimed in May 2020 that it had over 100 commercial partners, including banks and insurance providers, and its services were used by over 55 million people.

The platform has raised US$97 million in funding to date, the latest being a US$17 million round (led by Dutch VC firm Walvis Participaties and asset management firm Aegon) in May 2020. It had also acquired local digital lending platform AsiaKredit in the same month.

Also Read: GoBear grabs US$17M in funding to accelerate its financial services across Asia

In the statement announcing the funding, Chng had claimed GoBear’s digital insurance brokerage segment had seen a 52 per cent increase in average order value in the last three months. It had also registered a 50 per cent year-on-year revenue growth from loan products.

As of May 2020, GoBear had a presence in seven Asian markets, including Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

In the first sign of trouble brewing within the company, GoBear announced in September 2020 that it would cut 22 staff across its operations, product, and technology teams — 11 per cent of its global workforce of 200.

Last year, several companies had ceased operations due to COVID-19, including Indonesian e-commerce platforms Sorabel and Blanja and budget hotel aggregator Airy.

Image Credit: Gobear

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Ecosystem Roundup: Grab demands strong control by founder in gojek merger; China’s digital yuan threatens Alibaba empire

Anthony Tan, Co-founder of Grab

How did emerging markets in SEA fare in 2020?; While COVID-19 has wreaked havoc on the region, with 1.38M confirmed cases in SEA as of December 2020, emerging markets such as Cambodia, Laos and Myanmar have remained relatively unscathed, with Myanmar suffering the greatest impact among the three. More here

Grab demands strong control by founder in gojek merger; Grab is seeking several clauses as condition for merger, including giving CEO Anthony Tan sizeable voting power in the company, veto rights over bard decisions as well as having influence over his own compensation. More here

Can VCs leverage AI to improve the investment process in coming years? Experts speak; In the realm of VC, the notion of applying AI is no doubt attractive; However, the question is where could AI be truly impactful?; Because within early-stage venture investing, very often you are faced with incomplete information and even a lack of data. More here

China’s digital yuan threatens sprawling Alibaba empire; If China introduces the digital yuan, new apps that assist payments will also appear; Even if it does not immediately lead to the strongholds of Alipay and WeChat Pay crumbling, the two companies’ oligopoly might collapse. More here

What the hell is an AI factory?; The key AI technologies used in today’s business are ML algorithms, statistical engines that can glean patterns from past observations and predict new outcomes; Along with other key components such as data sources, experiments, and software, ML algorithms can create AI factories, a set of interconnected components and processes that nurture learning and growth. More here

Indonesia’s digital economy attracting investments from global tech giants; It has been actively trying to attract more foreign companies to set up shop here, as part of these companies’ relocation strategies away from traditional locations like China; To make relocation and establishment more attractive, about 4K hectares in Central Java province has been allocated in the Batang Industrial Park for interested firms. More here

At 19, this Singapore Polytechnic student runs a US$25M tech startup; Harsh Dalal’s software development company Team Labs has clients such as Coca-Cola, Google and Hilton; He manages 120 staff in eight cities while keeping up with schoolwork at the Singapore Polytechnic. More here

Start the year right with a growth mindset; Building a business needs both flexibility and excellent planning for continued success; Thus, it is crucial that the management should be properly organised and should remain focused despite the changing times. More here

Pandemic speeds up digital drive in Thailand; The country has been moving towards becoming a society that uses less cash as consumers use digitised networks and devices, with money transfer stimulus programmes and the pandemic accelerating cashless transactions. More here

Nokia selected by Thailand’s dtac as its first 5G partner; The deal will see an accelerated large-scale deployment of 5G on low-band spectrum and high-capacity mmWave technology, as well as enhancements of the existing networks utilizing 2300MHz, 2100MHz and 1800MHz spectrum; This combination will provide superior coverage and faster data speeds to subscribers. More here

Meet Lucy, the digital bank platform that aims to empower female entrepreneurs; Setting itself apart from other digital banking platforms, the startup focusses on female migrant worker and home business owners as its target audience; While the company aims to expand its service to the whole of Southeast Asia, they start out with Singapore first. More here

For Tony Fadell, the future of startups is connected and sustainable; The man credited with creating the iPod and building the iPhone has identified a few really difficult things that he sees as big investment areas going forward; They include the electrification of everything, the digital connection of everything, the rise of biomanufacturing, and the eradication of waste. More here

Korea’s LG signs US$9.8B deal to produce EV batteries in Indonesia; It will construct an integrated electric battery factory from upstream to downstream; Mines, smelters, precursors, cathodes, cars, recycling facilities will be built in Indonesia; The project will be located in North Maluku and Central Java. More here

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How Bangkok Bank worked with Pand.ai to develop a conversational AI engine to better service customers

Bangkok Bank

Pao Sriprasertsuk, Head of Bangkok Bank Innovation Department

Conversational Artificial Intelligence (AI) is the technology that allows chatbots to respond to natural languages, similar to a human. However, unlike the latter, a chatbot never gets tired and can provide round-the-clock support with fewer errors.

A chatbot powered by advanced conversational AI delivers a better customer experience by helping businesses increase customer engagement and improve operational efficiency.

Bangkok Bank’s innovation programme InnoHub and Singapore-based fintech startup Pand.ai have joined hands to develop TT01, a Thai conversational AI engine. It is the first time such an engine has been built in-house by a Thailand bank.

Development began earlier this year and the engine was fully developed in October. Bangkok Bank will use the engine as a digital sales assistant for its sales and relationship managers. The chatbot is scheduled to launch in Q1 2021.

Pao Sriprasertsuk, Head of Bangkok Bank Innovation Department, and Shin Wee Chuang, Co-founder and CEO of Pand.ai shared in an interview with e27 their take on topics, including developing a Thai conversational AI engine, the keys to ensuring the older generation can benefit from new technologies and future digitalisation trends in the banking industry among others.

Below are the edited excerpts from the interview:

What were the key challenges faced when creating the AI engine and how did the team overcome them?

Chuang: The biggest challenge we faced was that our data scientists were not native Thai speakers. When it came to building a Thai AI engine, this resulted in a loss of efficiency.

The data scientists had to refer back to the Thai speakers in the team to check if everything is correct. Hence, it was not as intuitive and efficient as developing an AI engine in their native language.

Also Read: Artificial intelligence is a key consideration for companies looking to adapt operations to optimise user experience

Since we were collaborating with Bangkok Bank, we had two sets of data scientists, one each from Bangkok Bank and Pand.ai. Therefore, we split the workload; the processes that required the knowledge of the Thai language were handled by the Bangkok Bank team, while we handled those that did not depend as much on the ability to understand the Thai language.

It was a collaborative effort for which both sides pitched in with what they were good at.

Why are there a lack of Thai chatbots in the market?

Chuang: One of the primary factors, I believe, is the lack of market opportunities. There are a lot of people speaking Thai and Thailand itself accounts for close to 70 million people.

However, in the grand scheme of things, when compared to the number of people speaking English, Mandarin or Spanish, the number of people conversing in Thai pales in comparison to these major languages.

That would that limit the commercial appeal of developing a Thai conversational AI engine.

Secondly, AI is a big field, and natural language processing (NLP), which powers conversational AI, is a subsegment of it. Not every data scientist’s speciality is in NLP.

They could specialise in computer vision and be largely clueless about NLP. Therefore, among the data science community, the number working on NLP is small and it is even rarer to find a Thai native speaker among them.

A screenshot of the jointly developed chatbot (Photo Credits: Pand.ai)

Does digitalisation represent a “must-have” rather than a “nice to have” for banks today?

Sriprasertsuk: Digitalisation has become a must-have, as it drives key competencies for banks in this digital age. Banks are now expected to provide ‘good’ digital services.

Definition of ‘good’ may vary by individual. To some, it may mean ease of usage and real-time support. To others, it might be tailored recommendations and security features.

Ultimately, these services can be only driven by digital technologies such as automation, data analytics, and AI. They also reduce unit costs while allowing banks to serve customers at scale in a wider, faster, and cheaper way.

Also Read: 4 ways the banking sector can respond to the digital transformation

However, that does not mean that traditional relationship-based banking or physical bank branches will disappear completely.

We do believe that human elements, such as relationship and offline services, will still play an important role as one of the key competitive advantages for banks.

How do you ensure a diverse customer base (especially the older generation) can keep up with the rapid introduction of technological solutions?

Sriprasertsuk: Empathy is key. Different customer segments have different needs and these needs are ever-changing.

For the older generation, learning new technologies remains one of the biggest hurdles for them.

However, it may be surprising to find that they manage to use ‘Paotang’, an e-wallet where Thai government provides government subsidies to the public in the form of e-money in order to boost the economic recovery during COVID-19.

The seniors were able to use the e-wallet due to the help of their families, friends and merchants, who helped guide them through the process, and they mastered it after a few tryouts.

Therefore, support from the people around seniors is a helpful enabler for them to learn and adopt new technologies.

Driven by customer research and Big Data analytics, banks will also need to be empathetic and design solutions that are catered to the needs of their customers.

Take the chatbot as an example, where customers may struggle to get the right keyword to ask a chatbot.

By adding human elements to the chatbot such as programming to analyse the intention of a user or remembering the context of a conversation, it can make an educated response to a user’s inquiry and create a better customer experience.

In what areas of banking do you see technology has the greatest impact in the near future?

Sriprasertsuk: AI and Big Data analytics are technologies that would provide big leaps to this digital era for all industries, not only the banking sectors.

For banking, AI has transformed every aspect of bank function, allowing banks to deliver personalised digital banking experiences, which are seamless across touch-points. AI can also enhance the efficiency of banking processes, reduce costs, improve security and strengthen risk management.

Also Read: Reimagining anti-money laundering processes with blockchain technology

Distributed ledger technology (DLT), more commonly known as the blockchain technology, is expected to play an important role in the future of financial services, although it still needs improvement.

DLT helps enhance security, traceability, efficiency and speed of transactions. The technology allows banks to collaborate better with stakeholders in trade flow, from improving traceability to greatly reducing time and costs.

Additionally, DLT also enables the concept of smart contract and programmable money that could lead to a wide variety of new digital financial products.

Image Credit: Bangkok Bank

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Huawei Pay joins hands with Aleta Planet to introduce NFC, QR code payments for S’pore users

payments

Huawei Pay, the mobile payment service by Chinese telecom giant Huawei, has announced a partnership with Aleta Planet and UnionPay International.

The duo will partner to introduce a mobile payment solution combining Near Field Communication (NFC) and QR code payments for Singapore Huawei users.

Launched in May 2020, Huawei Pay allows Huawei users in the city-state to carry out mobile transactions on their smart devices. Users can transact in-store and in-app using the mobile payment solution upon adding their bank card to the Huawei Wallet app.

The mobile payment platform said in a statement it provides an improved in-store payment experience by offering both NFC and QR code payment methods for greater flexibility. Users can choose to pay with either method in retail stores.

Also Read: 4 expected transitions of online payments in Asia in the next five years

Aleta Planet is a virtual card service provider allowing users to pay, remit and collect payments through the UnionPay network. The Singapore fintech firm remarked it is the first partner supporting both NFC and QR code payments via Huawei Pay within Asia-Pacific.

To access the payment service, users are required to download Aleta Planet’s “AP-1” mobile app from Huawei’s app store and apply for an AP-1 virtual card. Upon successful application, users can add their card to their mobile wallet and begin cashless NFC and QR code transactions at various merchant locations.

“By using Huawei Pay, the AP-1 users can handily make NFC and QR code payments, as well as enjoy a slew of exclusive privileges available,” said Shane Shan, Director of Huawei Mobile Services, Asia Pacific.

Aleta Planet’s AP-1 virtual card users will be entitled to a slew of UnionPay promotions and rewards including dining and lifestyle offers as stated on UnionPay’s website.

Image Credit: Unsplash

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Lessons from experience: Scaling your startup with a remote team

remote work

What do startups want the most? Investment? Space? Early adopters?

As someone who has been through the startup journey, I can certainly say that it is neither of these that startups need the most. 

What they need is people. A team of stalwarts who are great at what they do and can solve problems. Now building a team is definitely a big deal for startup founders. It is difficult finding the right mix of technical and non-technical personnel to assemble. 

Also, the chances of finding them all in one place — from the same city or country is even slimmer. 

But, as Bob Dylan once sang: “The Times They Are A Changin.”

When you are running a startup, you no longer need all your team members in one place. You can have them scattered across the globe and still manage to scale your operations. Thanks to countless communication and collaboration software, managing a remote team is a cake walk for startup founders. 

You can have a developer from Japan, a UX designer from Ukraine, a QA tester from India, and a project manager from the US. 

However, there is a catch. Managing a remote team is not the same as managing an in-house team. You need to approach remote team management from a different angle to keep teams motivated, productive, and also to scale your startup. 

Make a management mind shift

At the core of every successful startup is one common trait — a positive management mindset. In management parlance, a positive mindset can be construed as different things: hunger to drive growth, passion to break and build new things, setting new milestones, etc. 

However, while scaling your startup with a remote team, you need a totally different management approach. To begin with, micromanaging is a big no-no. It would be extremely tempting for a startup to track the outcome of every single task assigned to team members. 

It is an activity that shows a lack of trust but also drains the time and energy of the founder. Such time and effort could otherwise be used for strategic thinking and planning. 

So, it is necessary for management to have a mind shift. You must have confidence and trust in your team although they are not physically present in the same building as you. 

At my company Solitaired, where we tie classic games to brain training, we’ve found that avoiding micromanagement and trusting our team has had a profound effect. Our team is taking more responsibility in their work as a result and delivering their best work.

Shifting to remote work is an opportunity to empower your team. 

Measure performance. Not hours spent online.

One question that always comes up when running a remote team is: How will I track the efficiency of my team?

In a startup, resources are precious and the way your team spends their time can make a huge impact on the business. Even the slightest delay from one person can have a snowball effect on the rest of the team. 

As you know, tracking every single task of the team is a futile exercise. Instead, track performance. In a virtual team, the best indicator of productivity and efficiency is results.

For an engineering team this could be feature releases, for a marketing team it could be campaign rollouts, or for a sales team it could be deals closed or pipelines created. 

Prioritising results over time-tracking ultimately leads to a growth and results-driven work culture — a must-have accessory for startups.

Build a virtual team culture

In a remote team, or for that matter, in any team, culture can be the invisible glue that binds together team members. It removes the distance barrier, makes people feel familiar to each other, and builds team camaraderie. 

Also read: Are your influence skills ready for remote work?

The onus is upon the founder to create a remote team culture so that every team member feels an integral part of the team. Virtual team building activities help with that. As a gaming company, we often play games together to improve camaraderie.

A healthy remote culture cultivates strong working relationships where teammates are willing to trust and hold each other accountable.

Lay down clear processes

An F1 pit crew can change a racing car’s tires in 1.923 seconds. Do you know how? They have a process that is meticulously planned. Each team member is trained to do his/her role in the best manner possible. 

A process leaves little room for error. It standardises how everyone in a team works. It brings everyone on the same page and directs efforts in the same direction towards a common goal. 

Similarly, a well-defined process ensures that new employees who are onboarded are also able to ramp up into their roles quickly. It removes the ambiguity that kicks in when there is no direct interaction between team members. 

As a best practice, create a central repository of all process documents. Ideally, they should be created separately for engineering, marketing, finance, IT, and so on. Such practices enable any remote work, new or seasoned, to work independently and effectively. 

Assemble a well-equipped toolkit

Most often, remote team collaboration does not work because team members do not have the necessary tools to communicate

It is only recently that tools like Slack, Asana, Trello, Microsoft Teams, Zoom, etc. have become mainstream. These tools are essential if you want to scale your startup with a remote team. 

Also read: Does remote working really work?

A well-equipped toolkit ensures that remote team members are able to perform their duties and deliver work as planned. Here is a list of tools that you can help you manage a remote team of your startup:

  • Voice and video communication — Zoom, Slack, Microsoft Team
  • Document collaboration — Microsoft Office, Google Suite, Zoho One
  • Project management — Asana, Trello, Monday.com
  • Web management — WordPress, Wix, GoDaddy, Weebly
  • Design — Canva, Snappa, Prezi, Piktochart
  • Cyber security — Anti virus programmes, Firewall, VPN, Azure ID

Plan for time zone differences

One of the most under-rated challenges of working with a remote team is time zone differences. The challenge of coordinating meetings and working across different time zones can be significant.

While managing a remote team, it is necessary to lay down specific timings during which meetings are feasible for all. Also, it is equally necessary to stipulate non-meeting hours. This will help individual team members to plan their working hours with enough rest hours in between.

For example, at my company, the team that develops our Mahjong and Freecell games is based in Eastern Europe, while the rest of our game is based in the New York area. Given the time zone differences, we always have daily meetings at 9AM EST as a unique window when all our teams are available.

Common meeting hours will ensure that every remote team member is in a productive mindset and willing to contribute to the meeting. Without their active participation, remote teams can feel disconnected to the company’s mission and goals.

Taking your startup from one to 10X

Today, scaling a startup with a remote team is easier than ever before. There are countless tools to facilitate remote work and abundant supply of remote workforce who are talented.

However, it still takes effort and planning to make remote work productive for startups. 

Setting the right management mindset, building a positive team culture, developing processes, and adjusting for time zone differences can all help your remote team function better, improving your chances of success.

Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.

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Image credit: Sigmund on Unsplash

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Tribecar partners with Carro, NTUC Income to launch usage-based motor insurance in S’pore

tribecar

Carro Group CMO Manisha Seewal (L) and Tribecar Co-founder Adrian Lee

Singapore-based car-sharing platform Tribecar announced today it has partnered with local insurance firm NTUC Income and wholesale automotive marketplace Carro to provide usage-based insurance (UBI) coverage for its fleet of rental cars.

Unlike conventional fixed costs auto insurance premiums, UBI charges are tied to the vehicle’s data, such as mileage, location and timing consumption.

Developed through a joint initiative between NTUC Income and Carro’s leasing arm Carro Leap, the UBI platform combines telematics, insurance and data analytics.

As per a press release, Tribecar has adopted this insurance programme, allowing it to provide car-sharing rentals from S$0.50 (US$0.38) per hour for its “Super Economy” Category.

Also Read: Carro raises US$110M funding as contactless car buying boosts its revenues

“It is very encouraging to see the growing interest in new insurance models like UBI within the motoring community, which is testimony to the value it brings to drivers — customisation and convenience,” said Max Tiong, Head of Digital Transformation at Income.

“With a usage-based model that allows them to pay insurance based only how much they drive, Tribecar’s customers can now enjoy a new level of flexibility with rental cars,” said Aaron Tan, Founder and CEO of Carro.

Existing commercial fleet insurance typically require motor fleet owners to pay a fixed lump sum premium even when their cars are left idle.

In contrast, UBI charges the value of insurance incurred, starting from the first kilometre. With UBI, motor fleet owners can have greater autonomy over their car insurance and have enabled car rental firms to save costs by adopting a ‘drive less, pay less’ business model.

Also Read: The future of insurance isn’t just digital; it’s efficiently digital

Since launching in 2016, Tribecar has invested over S$4 million (US$ 3.03 million) in research and technology initiatives from its profits to accelerate product development.

The startup claims its cars see a strong uptake of about 18 hours of road use every day, an indication that car-sharing vehicles can be used more effectively than privately-owned vehicles. It further remarked its effort in promoting car-sharing is in line with the push by local regulators to reduce car usage in Singapore.

“We’re also experimenting with new ways to deliver greater value for our members. Currently, we’re in talks with authorised car distributors in Singapore to roll out ‘drive before you buy’ schemes for members that may be keen to buy a new car,” said Adrian Lee, Co-founder of Tribecar.

Image Credit: Tribecar

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Don’t let obstacles stop you from succeeding: An interview with Lori Cheek

Just because your business looks like it’s doing well, doesn’t mean there aren’t people and things conspiring against you.

Lori Cheek went through Shark Tank, lawsuits, and a pandemic that all tried to destroy her company, and she’s still pushing!

If you don’t see the Apple player above, click on a link below to listen directly!

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This article was first published on We Live To Build.

Image Credit: Michal Czyz on Unsplash

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Startup of the Month, January: Singapore-based digital therapeutics startup Neuroglee

Neuroglee

Aniket Singh Rajput, Founder and CEO of Neuroglee.

Every month, the e27 team runs a ‘Startup of the Month’ poll to pick the outstanding startup and give it the extra attention it deserves.

Three startups are selected internally by taking into account various criteria, including the quality of their idea, team, product and founders, and the size of their VC funding.

The winner of January is Singapore-based Neuroglee, a company providing digital therapies for neurodegenerative diseases to improve the quality of life of the patients as well as caregivers.

Digital therapy for Alzheimer’s

An effective drug solution for neurodegenerative diseases is still far away, although an estimated 60 million people are still suffering from it. These diseases — which include Alzheimer’s, Parkinson’s, amyotrophic lateral sclerosis  or ALS) — are not only expensive to treat but also have a c effect on patients.

Extensive researches are being carried out around the world and researchers are hopeful that a new effective drug will be developed soon and and the progression of these diseases are controlled/stopped.

Also Read: Bolstering healthtech: Thailand’s bid to become Asia’s medical hub

Neuroglee is one such company, which is attempting to find a new solution to cure these chronic diseases.

Founded early this year, Neuroglee is the brainchild of Dr Aniket Singh Rajput, a PhD in Neuroscience from Nanyang Technological University. The startup aims to build a completely new care system for people suffering from neurodegenerative diseases, which aims to help them preserve their cognition and independence.

According to Rajput, evidences suggest that strategies such as games and reminiscence therapy can improve mental cognition. However, there has been no “one size fits all” solution, and each patient has to deal with the same condition differently.

What sets Neuroglee apart is that it tailor-makes therapies for each patient in accordance with his/her needs through its software platform, which monitors symptoms using biomarkers such as tapping speed, speech and motions, and then recommends patients with the right treatment.

The firm has developed a patent-pending AI technology for this.

NG-001

NG-001 is Neuroglee flagship product, which is a prescription software intended for the treatment of mild cognitive impairment (MCI) and patients with early-stage Alzheimer’s Disease.

How it works? Clinicians prescribe NG-001 as a drug to the patient and Neuroglee acts as a pharmaceutical company to provide him/her with the support infrastructure, called Neuroglee Connect (NGC).

NGC will then act as an end-to-end digital support centre to fit into the clinician’s existing practice workflow.

“With NGC, clinicians can get access to dedicated case managers to support them in every step of the patient journey. This includes the facilitation of patient access to support and assist with care coverage, as well as assist clinicians with reimbursement calls, prescription and management of patients,” he said.

“So when a patient is enrolled, the clinician prescribes a therapeutic solution to the patient. This is when he starts his/her six-month journey. We have designed several mechanisms of actions, which will be tailored to that particular patient, depending on what he/she is responding to and what he/she is not good at, and we will try to improve, for example, certain aspects of emotions,” he explained. 

NG-001, according to Rajput, can be used independently and/or in conjunction with pharmacotherapy for better patient management.

From researcher to entrepreneur

Born and bred in India, Rajput did not originally intend to enter the field of neuroscience. After securing his undergrad in Robotics from Visvesvaraya Technological University India, he went on to pursue his Master’s in Robotics and Healthcare in Hong Kong.

After this, he went to MIT Labs in Singapore and started working on Human Perception and Human Control Strategy algorithms. Later, he received an offer to pursue PhD in Neuroscience in NTU.

Rajput shared that during his time in Singapore, he primarily focussed on stroke and Parkinson’s patients and built rehabilitation strategies for them. Later on, he realised there was no effective solution to treat and manage Alzheimer’s patents.

Also Read: Healthcare wearable Ybrain raises US$3.5M in Series A funding

A researcher at heart, this got him thinking about developing a solution and he decided to start Neuroglee.

Market opportunities

The startup targets market such as Singapore, the US and Japan, where neurodegenerative diseases are more common among the elderly population. The prevalence of dementia is higher in developed countries such as Japan, South Korea and the US, making it a good base for the startup to roll out its services.

Having said that, NG-001 is still in its nascent stage and needs to go through the whole proof of concept phase and be approved by regulatory agencies such as the US Food and Drug Administration (FDA) to enter foreign markets.

“Our initial focus would be to obtain the FDA approval and then roll out our products in the US and Singapore, followed by Japan,” he said.

Neuroglee, however, is not the only startup working in this space. There are companies such as Denali Therapeutics, Neurotrack and MyndYou which are providing innovative solutions, and over years, they have raised large amounts of funding from notable investors.

Funding

Last month, Neuroglee raised US$2.3 million in pre-seed funding from Eisai Co., one of Japan’s largest pharmaceutical companies, and Kuldeep Singh Rajput, the founder and CEO of predictive healthcare startup Biofourmis.

Also Read: Neuroglee bags US$2.3M in pre-seed funding to strengthen fight against Alzheimer’s

With the money, the startup will advance product development for NG-001, which is intended for the treatment and management of patients with early stages of Alzheimer’s Disease.

Clinical trials are expected to begin in early 2021 and the startup plans to open its US operations in Boston in 2021.

Image Credit: Neuroglee

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Meet Lucy, the digital bank platform that aims to empower female entrepreneurs

Digital banking is one of the most exciting themes to come out in 2020, and the hype will continue next year as leading Southeast Asian markets such as Singapore issued digital banking licenses to leading companies in the country.

Amidst this excitement, one startup stands out among the rest with its unique offering: Lucy.

Currently undergoing a trial process, Lucy is a digital bank platform that aims to empower women through entrepreneurship and financial inclusion. Setting itself apart from other digital banking platforms, the startup focusses on female migrant worker and home business owners as its target audience.

“Essentially, what we are doing is providing a range of very carefully tailored services to help female entrepreneurs at all socio-economic levels to start and grow their own businesses. The way we are doing this, as a digital platform, is entirely via our app. This will provide women who are lacking access to the financial services and support [with solutions] to help them grow and thrive,” Debbie Watkins, CEO of Lucy, explains to e27 in an interview.

While the company aims to expand its service to the whole of Southeast Asia, they start out with Singapore first. In addition to the country being a base for the co-founders, there are also opportunities that Lucy wants to seize in the country.

“The common belief is that everybody [in Singapore] as banked, but there are definitely segments that are unable to access the services that they actually need. They have bank accounts but don’t have access to the full range of financial services that they need,” Watkins says.

Also Read: Ecosystem Roundup: Ant Group, Grab’s venture win digital banking licences; What will a Grab-gojek mean for Singapore users?

In Singapore, there are two groups that are experiencing this challenge: Female migrant workers and home business owners –from web designers to bakers.

There are about 250,000 of female migrant workers in Singapore, coming from countries such as the Philippines, Indonesia, and Myanmar. They come to the country with a dream to save enough money to start their own small business back home, but there is often situation –such as natural disasters or sudden illnesses– that force them to let go of their savings and turn to loan sharks.

The Lucy app is set to be launched in Q1 2021. In addition to using social media as part of their user acquisition strategy, the startup is also teaming up with non-profit organisations that are working closely with migrant workers in the country.

Making dreams come true

Even for those who manage to gain access to the financial solutions that they need, there is often the other challenge of understanding how to use it well. This is why Lucy also includes the educational aspect of their service.

“What people who are running small businesses really need is mentoring and peer support … because it can be quite challenging. I like to say that it can be lonely and scary to be an entrepreneur, particularly for people who have just started something by themselves. So, what we’re aiming to do is to provide them with everything that they need to succeed [in running their own business],” Watkins says.

This is especially important as Lucy’s potential customers are those that have been disappointed by conventional banking institutions before. As a solution, Lucy tries to design a platform that fits the personality and needs of its users.

Also Read: Why neobanks are better than digital banks

“What we’re doing is combining the kind of services that are tailored to the customers rather than just being some sort of generic services that banks might offer … We are also breaking down that barrier where many women feel that banks don’t really listen to them or are not a partner for them in any kind of way,” Watkins elaborates.

“Essentially, the aim is to make Lucy feel like a community … that Lucy is a person who is this kickass, fearless woman that got their back and is there alongside them, to help them succeed. I kind of like to describe Lucy as a little bit of the anti-bank. Everything that we have been doing, if you look at our website, the way our apps designed, is really designed to feel like home,” she continues.

A team of wonder women

Lucy was started by three founders with backgrounds in business, fintech, and social enterprises.

Watkins started working in a bank at only 16 years old and has built a career in the business and financial IT sectors before moving to social enterprise after a volunteer work trip to Cambodia.

Director and Co-Founder Hal Bosher had spent a decade working with the World Bank before relaunching Yoma Bank in Myanmar and co-founding Wave Money, an Ant Group-backed fintech platform.

Last but not least, Chairman Luke Janssen was previously known as the founder of Australia-based fintech company Tigerspike, which he had exited in 2017.

In September, the startup has secured a S$500,000 (US$377,000) pre-seed funding round, bringing its total funding to date to just over S$1 million (US$750,000). In line with its mission to empower female entrepreneurs, all of the 18 angel investors involved in this funding round are women based in countries from the UK to Vietnam.

It has previously secured funding from its own founders and the Savearth fund.

For its next stage of fundraising, Lucy is looking for VC firms with a strong gender perspective in its investment philosophy.

Image Credit: Lucy

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How did emerging markets in Southeast Asia fare in 2020?

As 2020 draws to a close and we take stock of the year, we ought to move away from the traditional powerhouses of the regional startup ecosystem and analyse the impact of the year on emerging markets within the region.

Less glamorous than the regional giants of Singapore, Indonesia and Vietnam, emerging markets in Southeast Asia play an equally important role in the development of the region as they represent the potential growth.

Investors have recognised they remain an unpolished gem and thus have taken the lead in providing them with the resources to succeed.

Singapore-based private equity firm Ascent Capital announced in November that it closed a US$88 million Myanmar-focused fund to invest into companies across a variety of sectors, including consumer, education and healthcare.

While COVID-19 has wreaked havoc on the region, with 1.38 million confirmed cases in Southeast Asia as of December 2020, emerging markets — Cambodia, Laos and Myanmar — have remained relatively unscathed, with Myanmar suffering the greatest impact among the three.

Despite making up 11.8 per cent of the regional population, the trio from the Mekong sub-region accounted for only 8.3 per cent of COVID-19 cases regionally.

As of December 2020 and according to official statistics from respective health ministries, Cambodia and Laos collectively accounted for only 400 confirmed cases, with no deaths reported. Myanmar has over 122,000 cases and reported close to 2,700 deaths, making it the fifth worst-hit country in the region – by the number of cases per million residents.

Despite escaping the wrath of the pandemic, emerging economies have been negatively impacted by the effects of an ensuing economic downturn.

Cambodia

According to a World Bank report, the Cambodian economy contracted by 2 percentage points in 2020.

The same report shared a rebound is anticipated and the Kingdom’s economy is projected to grow by 4 per cent in 2021 due to increased domestic activity, spurred on by the relaxation of social distancing measures and stimulus packages handed out by the government.

The local government has spent close to 5 per cent of its GDP on income assistance schemes and tax relief to help both workers and corporates tide over the downturn.

Foreign direct investment (FDI) into the country is also increasing, driven by a free trade agreement signed between Cambodia and China in October 2020. The country’s inaugural bilateral free trade agreement is expected to boost trade between the two countries to US$10 billion by 2023.

Also Read: 500 Startups launches Angkor 500 to accelerate the development of Cambodian startups

However, challenges persist within the Kingdom.

Despite the partial recovery of the travel and tourism industry by domestic tourists, the sector remains negatively affected as international travel restrictions remain in place.

The share of respondents of a World Bank survey who were working declined from 82 per cent before the COVID-19 outbreak to 71 per cent in May 2020 — a number that remained relatively unchanged in August 2020.

This has led to a decline in household income and more will fall into poverty. The government has attempted to stem this by launching a cash transfer programme to assist the poor and vulnerable.

However, the efficacy and sustainability of such an initiative remain to be seen.

While China continues to account for the majority of FDI, there has been a shift to finance non-garment manufacturing sectors at the expense of the tourism sector. (Photo credit: World Bank)

Laos

Despite having avoided a health crisis with only 41 total cases — as of writing this piece — Laos has not escaped the worldwide economic downturn.

The country’s economy is projected to contract by up to 1.8 per cent in 2020, with the downturn particularly affecting the services sector. Similar to Cambodia, the Laotian economy is expected to rebound by close to 4.5 per cent within the next two years.

Despite the seemingly minute contraction in growth this year, it comes at a period where Laos can ill-afford a slow down of its economy due to structural macroeconomic vulnerabilities stemming from its high public debt levels and low reserves buffers.

Also Read: Will Laos be home to a unicorn someday?

In a country where 11 per cent of total employment is in service industries such as travel, tourism and hospitality, the pandemic has had far-reaching economic and social consequences on Laotians. Up to 214,000 additional people are projected to fall into poverty due to the loss in jobs and a decline in income.

Labour migration remains an important livelihood option for the Lao workforce. However, many migrant workers have returned home amidst lockdowns worldwide.

It is estimated that the reverse in labour migration has resulted in a loss of US$125 million in rural household income.

Myanmar

Despite having the most number of COVID-19 cases among the three emerging markets, the Burmese economy grew by 1.7 per cent in 2020.

Although this represented a slowdown from its 6.8 per cent growth in 2019, it remains one of few in the region who have stayed in the green.

Domestically, growth in manufacturing, construction and service sectors have slowed due to a platitude of reasons including disruptions in supply chains, lockdowns and reduced demand.

However, it was observed internet-based businesses were better positioned to weather the downturn and reported increased earnings during the year.

Also Read: How understanding culture can drive the digitalisation of payments in Myanmar

Despite economists expecting Myanmar’s economy to grow by 2 per cent in 2021, concerns over the coronavirus outbreak remain. The country is experiencing a new surge in cases with over 900 daily cases reported last week.

While the government’s immediate priority should be stemming the rise of cases, it has diverted efforts to rejuvenate the economy for future growth, announcing fresh financing to support the development of industrial and urban development projects.

The future

Despite a slowdown in the growth of regional emerging markets in 2020, the outlook for these three countries remains positive. However, the projected recoveries in these economies are contingent on a successful containment of the virus.

As vaccines begin to be distributed worldwide, these countries must secure access to them — a difficult task given many wealthier countries are also vying for access.

When they do secure contracts with vaccine manufacturers, the mammoth task of vaccinating the population would be the next challenge. With a significant part of the population in these countries still residing in rural areas, local governments must have plans in place to reach these parts of the population.

Only then can the virus be contained and the emerging markets of Southeast Asia will continue on its path to economic growth.

Image Credit: Photo by Jesse Schoff on Unsplash

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