In the past year, consumers and businesses in Southeast Asia have quickly adopted digital technologies widely used in other parts of the world, especially with the acceleration caused by the pandemic. This movement creates a fertile ground for many regional startups to catapult to stardom with their unicorn status, primarily in the fintech, e-commerce, and logistics verticals. The question here is: what’s next in 2022?

While artificial intelligence, machine learning, Big Data, virtual reality/augmented reality, and blockchain continue to play vital roles in forming these tech solutions, cryptocurrencies, non-fungible tokens (NFTs), and Web3 have significantly set their foot in every sector. Though their use cases outside the financial world still need more time to be proved, this heralds a moment for the next generation of regional startups to blaze a path in the global tech battlefield.

Following the exciting pace of the region’s startup ecosystem in the past year, combined with what VCs tell us about their upcoming investments, here are a few important trends within key tech verticals that you should look out for in 2022.

1. Climate-tech

Climate change remains one of the hottest topics as global temperatures kept going up with each passing month in most of 2021. Bill Gates — the author of How To Avoid A Climate Disaster — believes that funding green innovations is the only way to address the imminent crisis. Larry Fink, CEO of the world’s largest asset manager Blackrock, echoed this viewpoint as he said that the next 1,000 unicorns would be involved in climate technology.

For the record, climate-tech investment is not immune to the overall mounting capital poured into the region, as the domain attracted a whopping US$30.8 billion in the first three quarters of 2021 — already more than the amount recorded in the previous full year, according to the PitchBook data. The launches of new climate tech-dedicated funds in the region last year, including Wavemaker Impact, Investible, and Circulate Capital, will keep the hype in this sector for years to come. 

Also read: How debt financing, crypto, SPACs keep the climate-tech funding momentum in SEA

2. Edutech

2020 and 2021 welcomed a crop of edutech startups unlocking business opportunities during the pandemic-induced lockdowns.

Last year, personalised e-learning became a buzzword as almost every edutech startup integrated this feature in their business models or product roadmap using AI and ML technologies. In a nutshell, this helps make visible and behind-the-scenes data-driven judgments, driving tailored content for each student based on their abilities, chosen methods, or learning experience.

The “study-to-earn” concept — a system that combines cryptocurrencies and education to raise engagement rate — also received recognition from global tech veterans, including Binance founder “CZ” Changpeng Zhao (see the tweet he posted last November). This comes as a part of the gamification trend in edutech in recent years. 

According to a BlueWeave Consulting study, the global education gamification market was valued at US$697.26 million in 2020, growing at a CAGR of 29 per cent during 2021-2027.

Moreover, immersive learning is becoming increasingly popular worldwide, with VR transforming spectators into active participants in events that may engage with the educational setting. The metaverse world will have a place for educational purposes, stated Facebook (now Meta) CBO Marne Levine. 

Also read: Edutech is surging, but here are the 3 issues it is facing 

3. Fintech

Payments and digital lending attract the most funding in the fintech space, with Momo and Mynt bagging sizeable amounts last year to become unicorns. However, VCs keep a close eye on emerging areas like wealth-tech and insurtech.

In 2021, global wealth-tech funding exceeded US$20 billion, with the advent and advancements of robo-advisors, digital brokering, online banking, robo-retirements, new investing tools, and, most recently, NFTs. 

Investors expect this space to go along with vast trade democratisation, enabling more young users to adopt these tech solutions in 2022. 

While insurers suffered from a loss of around US$55 billion due to COVID-19, global investors still funded insurtech firms to the tune of US$7.5 billion in 2020 and were expected to accelerate in the Southeast Asia market as the pandemic continues to concern people on health and asset. Vietnam’s Medici, Indonesia’s Fuse and Lifepal, Thailand’s Fairdee and Singapore’s Bolttech are some prominent insurtech startups that have received funding in 2021.

Besides, as most crypto owners would utilise their banks to invest in cryptocurrencies, we expect to see more “cryptofication” of banks in a bid to catch the wave. As a result, blockchain’s rising popularity as a means of creating a secure digital record cannot be overlooked.

Buy-now-pay-later (BNPL) is also gaining momentum in the region as it is “faster, easier and free for consumers”. This solution has long been going places globally but has only picked up pace in Southeast Asia in recent years, with some successful cases such as PayLater (Indonesia), Atome and Hoolah across Hongkong, Singapore and Malaysia. As the pandemic shows no sign of subsiding, the BNPL model is ripe for an explosion as it can assist consumers in their shift to online shopping.

4. Entertainment

Gaming is the largest and most expansive industry globally in the entertainment vertical. As of 2021, it had a staggering three billion game players, which is equivalent to nearly 40 per cent of the world population.

With the support of blockchain technology and the cryptocurrency community, gaming has returned to its prime time with the new concept of “GameFi”, a combination of “game” and “finance”. 

As per crypto data tracker DappRadar, crypto play-to-earn apps surpassed decentralised finance (DeFi) in user popularity in 2021. The success of Sky Mavis, which owned the popular NFT-based game Axie Infinity, has led the charge for various followers, dragging along many concerns over scams and market bubbles within the space. 

It is, however, still a burgeoning market to follow as more incumbent players of the traditional game world are looking to compete.

This gaming development trajectory aligns with the nascent metaverse frenzy that shook up the tech world last year. Although it is still in the early days of growth, metaverse fosters the development of a creator economy. Not just gamers but artists are also taking advantage of the decentralised blockchain ledger and NFTs in metaverse to ensure their ownership of digital products — ranging from pictures and photos to music videos and songs, allowing them to be traded globally.

Also read: Metaverse is around the corner and you should play a role in it 

Another business line that emerged in 2021 was audio-based content. Based on eMarketer 2019 data on digital audio listenership and voice assistant usage, the digital audio listener base exceeds 300 million across countries, including Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. 

Last year, we witnessed a handful of startups joining the game, including NOICE, Podcast Network Asia, OnMic, and Fonos, which are creating their own platforms and generating new business models for audio content. 

E-sport also garnered attention as the lockdown blues drove more people to turn to digital platforms and watch live game streams. By 2022, the e-sports ecosystem is expected to generate US$1.8 billion in income, opening windows for more startups to seize opportunities.  

5. Cybersecurity

Cybercriminals exploited the accelerated digital adoption and work-from-home measures during the COVID-19 crisis to tap on the vulnerabilities in the computer networks of individuals and institutions, be it local businesses or global organisations. 

The year 2021 witnessed data breach costs rise from US$3.38 million to US$4.24 million per breach, the highest average total cost reported in the last 17 years, a report by IBM shows. Notably, Southeast Asian countries are being used as hotbeds for cyberattacks, according to a report by AT Kearney. Major cyber threats include business email compromise, e-commerce data interception, and crypto-jacking. 

The region is urging more startups to address the latest challenges in cybersecurity, including risk and compliance, data security, cloud security, and identity and access management.

While Singapore stands at the forefront of cybersecurity tech development in the region, other countries’ startups are looking to gain more traction in 2022 as demand for cybersecurity solutions continue to deepen during the pandemic.

Also read: Why Malaysia is quickly becoming a cybersecurity hub for the rest of the world 

6. Healthtech

With the higher healthcare costs, an ageing demographic, a mounting number of chronic diseases, and growing discerning customers over health issues, the healthcare market in Asia Pacific is slated to climb at a CAGR of 8.8 per cent to US$157 billion by 2022, APACMed estimates. 

This has created an influx of healthtech startups, unlocking faster and more effective medical intervention for healthcare providers, complementing clinical practices and improving healthcare results.

In Southeast Asia, telehealth and on-demand care, predictive analytics, and healthcare management software are among the most well-funded sub-sectors of healthtech during 2020-H1 2021, as per the Global Private Capital Association (GPCA) report.

Moreover, according to Deloitte predictions, 320 million consumer health and wearable wellness gadgets will ship worldwide in 2022, with 440 million units shipping by 2024. In the backdrop of this exponential growth, new products and solutions are being introduced to the market, and more health care practitioners are growing familiar with them. If physicians believe in their utility and individuals trust their data security, the influence of healthtech will set to grow even more.

Also read: [Updated] These 4 medtech startups will help you bust health myths during COVID-19 crisis 

7. Foodtech

As COVID-19 affected food security, private capital investment in foodtech sector spiked from US$20 million in 2019 to US$148 million in 2020, GPCA data shows, expecting this trend to keep its momentum this year.

Startups for alternative protein, such as plant-based meat and dairy alternatives, have been gaining traction since 2019, accounting for around 75 per cent of capital pouring into the sector. 

In addition, tech and tech-driven business models have enormous potential to reduce food waste across the value chain, London-based Aquaa Partners stated. They have gained attention among VCs, who have invested US$1.4 billion into food waste startups during 2018-21 globally.

Also read: Fixing food waste problem means less hungry people and a great economy 

8. HRtech

The pandemic and rising adoption of digital technologies worldwide have placed enormous pressure on the world’s human resources. 

According to US Labor statistics, as of December 2020, the global talent shortage amounted to 40 million developers worldwide and is expected to reach 85.2 million by 2030. 

Companies around the world risk losing US$8.4 trillion in revenue because of this lack of skilled talent, opening up room for innovative solutions in HRtech.

So far, we have seen HRtech as largely focused on five categories: talent management, talent acquisition, workforce management, HR and admin, and collaboration & productivity. HR departments are increasingly employing AI and automation to seek and hire the proper personnel while reducing workloads.

Notably, payroll fintech startups are also on the radar of various global investors. Salary advances, real-time payments, and crypto payments are just a few use cases of utilising payroll software. 

For instance, earned wage access (EWA) startups enable employees to receive salaries ahead of their payday almost instantly via a mobile app integrated with the company’s payroll system, helping them deal with unexpected financial expenses. 

Also read: How to retain local talent as global demand for remote tech workers surges

Last year, we covered VC investments into Vietnam’s GIMO, Indonesia’s wagely and GajiGesa; these firms are doubling down on improving financial stability for workers through EWA. 

Dailypay, a leading US-based EWA provider, raised US$500 million last year and reached unicorn status. The US-based Payactiv also counts over two million users and has processed more than US$5 billion in EWA. This highlight the tremendous potential of this space in Southeast Asia in the coming years. 

 

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Microsoft Teams saw massive growth because of the pandemic and acceleration of the remote work trend.

Whether you are an end-user of Microsoft Teams or are thinking about developing apps for the Microsoft Teams marketplace, this episode will help you better understand the pros, cons, and full process of what it’s like to develop, submit, and launch a Teams app.

Our guest is Hilton Giesenow, the founder and CEO of ChitChattr, which develops a family of products on Microsoft Teams, including Quicklinks, Reminderz, Shortlinks, and TeamMate.

He’s also the Founder of Experts Inside, which provides a wide range of SharePoint, Office 365 and Yammer services, including strategic consulting, architecture, infrastructure, development and implementation.

In this podcast, you’ll hear about:

• Some background on Teams growth, and the store
• Why did you decide to build apps on MS Teams?
• The “Good” and “Bad” of building an app for MS Teams store
• What was the hardest thing about launching your first app?
• What does it cost to launch and or maintain an app?
• What is the process of launching an app?
• How to get an MVP into the MS Teams store
• And much more!

Also Read: She Loves Tech earmarks US$10M for women-led firms, joins hand with Microsoft

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

Acast
Apple
Spotify
Stitcher

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The article was first published by We Live To Build.

Image Credit: langstrup

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Power Commerce Asia, an Indonesia-based omnichannel e-commerce and supply chain service company, has secured an undisclosed Series A financing round from PT Interport Mandiri Utama, a subsidiary of local energy firm PT Indika Energy Tbk. 

Existing shareholder PT SAP Express Tbk, a local logistics solutions company, also co-invested. 

The new investment will enable Power Commerce Asia to expand in the Southeast Asian market. The firm is currently recruiting team members in Malaysia as the entry point. 

Also read: A look back at 2021: The year after 2020’s e-commerce boom

Besides, the company aims to build a digital logistic ecosystem through SAP Express’ network of 209 warehouse points.

Power Commerce Asia CEO and founder Hadi Kuncoro said in a joint statement that the company will maintain profitable and sustainable growth until the IPO in 2025. 

Power Commerce Asia was founded in 2019 by Kuncoro, who served as the CEO of Bangkok-headquartered e-commerce enabler aCommerce from 2015 to 2017.

The firm offers e-commerce marketplace enablement, technology development, warehouse management, shipping management & delivery service, digital marketing, payment management, and omnichannel ERP system management. 

It aims to assist brands and small businesses by connecting their online and physical product sales and empowering both national and global brands to scale across the international market. 

“In the midst of growing competition in the e-commerce industry, Power Commerce Asia comes with the concept of omnichannel e-commerce and supply chain management, which we believe will be the answer to the problems that e-commerce industry players, especially logistics, often face,” said Yukki Nugrahawan Hanafi, Vice President Director of Interport. 

The startup claims it provides a “seamless shopping experience” by integrating between the marketplace, web commerce, O2O, socio commerce, chat commerce, virtual reseller, point of sale (POS), warehouse management system (WMS), and IP multimedia subsystem (IMS).

Also read: How Shopee uses AI, data to build a marketing strategy that suits changes in user behaviour

Within three years of operation, Power Commerce Asia claims to have recorded a 132x growth, entering the scale-up stage. As of 2021-end, it saw a 22x revenue surge, 28x transactions, 26x buyers, 24x products sold, and 12x average monthly sales. 

Power Commerce Asia currently operates warehouses in Jakarta, Bandung, Yogyakarta, and Surabaya and intends to set its foot in Malaysia. 

Brands such as Ovaltine (a nutritional drink company from Switzerland) and Twinings (a premium tea brand from London) are among its clients.

 

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A decade ago, the idea of CEOs spending a portion of their time on social media sounded laughable. Now in the digital age, social media is considered an integral component in every organisation’s business goals.

It isn’t enough for CEOs to show up in conferences, do interviews, and give talks —they now have to be present online. If not, they risk losing lucrative opportunities to not only promote their organisation but also share their breadth of industry knowledge. Fortunately, CEOs of blockchain and crypto communities are already ahead of this.

Let’s take a look at some of the most active crypto CEOs on social media and how they’re spreading their influence in and outside the crypto community.

Changpeng Zhao
Topping this list is the Changpeng Zhao, also commonly referred to as “CZ”. As CEO of Binance, one of the biggest crypto exchanges in the world, CZ provides quick updates about the platform and occasionally shares his insights on various crypto trends. He is currently more active on Twitter, where he has over four million followers, than Instagram.

Justin Sun
Considered as one of the youngest CEOs in this list is Justin Sun, CEO of BitTorrent and founder of TRON Foundation and Peiwo app. He is active on both Twitter and Instagram, and has briefly delved into Chinese social media. Sun uses his online channels to post updates about the blockchain and crypto space and respond to direct mentions.

Also Read: Demystifying NFTs and DeFi

Vitalik Buterin
It comes as no surprise that Vitalik Buterin is included in this list. Even when social media was in its infancy, he had already been advocating for cryptocurrencies in as early as 2011 through a publication called Bitcoin Magazine. Today, he shares his controversial insights on various crypto trends, as well as updates on the Ethereum network on Twitter, where he currently has 2.9 million followers.

Brian Armstrong
Coinbase’s Brian Armstrong also puts his two cents on all things crypto on his Twitter page. Speaking to nearly a million followers, he provides updates about Coinbase, as well as shares articles related to blockchain, finance, and tech.

Tyler Winklevoss
Like Buterin, Tyler Winklevoss is an early adopter of Bitcoin, buying the cryptocurrency as early as 2012 with his twin brother Cameron Winklevoss. Now as the CEO of crypto exchange Gemini and principal of private investment firm Winklevoss Capital, Tyler mostly uses his Twitter page to tackle discussions on his businesses, Bitcoin, NFTs, and, most recently, the metaverse.

Brad Garlinghouse
Ripple’s Brad Garlinghouse expresses his thoughts (and shares his humour) on his Twitter page, where he currently has half a million followers. There he posts updates on Ripple, interacts with other industry leaders, concurs with articles pertaining to crypto and finance in general.

Erik Voorhees
If you ever need some validation of where ShapeShift.com’s Erik Voorhees is mostly active, he said so himself on his LinkedIn page: you can find him on Twitter, posting updates about ShapeShift.com, crypto, blockchain, tech in general, and more. He also has a Medium page where he posts long-form content on Bitcoin and updates on ShapeShift.com.

Also Read: ‘NFTs provide new ways to handle IP management, empower content creators’: Inmagine CEO Warren Leow

Joseph Lubin
Ethereum’s co-founder and ConsenSys CEO Joseph Lubin can also be found on Twitter, where he speaks to more than 200,000 people about ConsenSys, MetaMask (an Ethereum-based crypto wallet used mostly), and other blockchain solutions. He also uses his Twitter page to communicate with fellow industry leaders and share articles on various blockchain and crypto trends.

Sam Bankman-Fried
FTX’s Sam Bankman-Fried is also somewhat of a social media celebrity among the crypto community. For his audience of 480,000 on Twitter, he mainly provides updates about the FTX platform and shares the latest trends in blockchain, NFTs, and DeFi. Occasionally, he goes live on Twitter Spaces to respond to inquiries.

Zac Cheah
Zac Cheah mostly shares his insights on the crypto market through his Twitter page, which has garnered more than 50,000 followers. One would notice that he uses his page to not only post about Pundi X and all things blockchain and crypto, but also share snippets of his personal life. Apart from his interactive and insightful posts, Cheah garners followers from Pundi X’s active community on Reddit, which also is never short of crypto topics to discuss.

Delving into blockchain and crypto is never easy, especially if you’ve never been adept to tech and finance in the first place. Fortunately, we have blockchain and crypto experts who are just a message or tweet away.

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Bukalapak, Salim Group to participate in digital lender Allo Bank’s US$336M rights issue
Upon the rights issue, existing stakeholder Mega Corpora will transfer US$83.56M of its pre-emptive rights to Bukalapak; CT Corp, Grab, Carro and Growtheum Capital Partners also plan to participate.

7 Metaverse companies in Southeast Asia that caught our attention in 2021
As COVID-19 continues to confine people to their homes, companies in the metaverse and NFTs sectors will continue to hit the headlines in the coming years.

Aerodyne snaps up Synapse to develop next-gen drone data intelligence platform
Synapse focuses on designing and developing machine learning algorithms for cloud-based predictive analytics services for the agri, infra and oil and gas sectors; Aerodyne expects the investment to “supercharge” its AI and data analytics capabilities.

Insignia Ventures, Visa join open finance platform Brankas’s US$20M Series B round
BEENEXT and Integra Partners also joined the round; Brankas works with banks to design and maintain their open finance infrastructure, including APIs for real-time payments, identification and data, account opening, and remittances.

Timo nets US$20M to bring digital banking services to unbanked Vietnamese population
Investors include Square Peg, Jungle Ventures, Granite Oak, and FinAccel; Timo has no physical bank branches; instead, it offers customers meeting spots with coffee and seating areas to make their deposits and manage funds.

Used cars platform Moladin raises US$10M Series A led by GFC
Started in 2017 as a motorcycle platform, Moladin pivoted to become a used car marketplace in 2021; Moladin, which operates as a social commerce company leveraging agents to sell used cars to end customers, will use the funds for expansion in Indonesia.

These 8 tech verticals are ripe for explosion in Southeast Asia in 2022
While e-commerce, fintech and logistics tech were in the brightest spotlight last year, some other verticals are gradually picking up space.

Ex-aCommerce CEO raises Series A financing for his new venture Power Commerce Asia
Investors are PT Interport Mandiri Utama and PT SAP Express Tbk; Power Commerce Asia offers services, including e-commerce marketplace enablement, tech development, warehouse management, delivery service, and payment management; It will use the money for regional expansion.

X0PA AI bags US$4.2M Series A to scale its SaaS recruitment solutions
Investors are ICCP SBI Venture Partners, SEEDS Capital, AI8 Ventures, XCEL NEXT VENTURES, and SASV Investments; X0PA plans to use the capital to expand into Asia, the US, Latin America, and Europe.

Singapore’s Smarter Health raises US$3.8M for SEA expansion
Investors include East Ventures, Orbit Malaysia, Citrine Capital, HMI Group, and Emtek; Smarter Health is a unified platform that facilitates secure data exchanges between insurers, healthcare providers and patients throughout the entire healthcare journey.

FoodMap raises US$3M to connect farmers, food producers directly to B2C, B2B customers in Vietnam
Investors include Vulpes Ventures, Beenext, Ascend Vietnam and Wavemaker; FoodMap aims to solve the gap between demand and supply across the invisible supply chain with a back-end management system for farmers and suppliers.

SK Group joins Malaysia’s BigPay consortium for digital banking licence
In July 2021, Air Asia-owned Big Pay had submitted its application to Bank Negara Malaysia with the support of a consortium comprising MIDF, Ikhlas Capital, and a foreign conglomerate; In August, SK Group made a strategic investment of US$100M in Big Pay.

Bukalapak to appoint Willix Halim as new CEO, President Director
This followed the resignation of Rachmat Kaimuddin, who left Bukalapak to join the Coordinating Ministry for Maritime Affairs and Investment; A Forbes report said the company’s shares fell as much as 4.9 per cent after the resignation was being announced, touching an all-time low of IDR430.

Singapore scions form exclusive club centred around NFTs
Arc, founded by Kiat Lim and Elroy Cheo, also plans to create its own metaverse – a virtual world – with events and games; With Arc, the two will look to connect individuals from around the globe who are interested in cryptocurrency.

Beenext leads US$2.6M seed round of gaming marketplace VCGamers
Rans Ventures, Google executive Ari Fadyl and Collab Asia VP Jerry Soer also joined; The company is in the process of launching its own crypto token called VCG, which will be used for transactions on the platform.

Pandai nets US$2.03M to help students learn using gamified quizzes in Malaysia
Investors include YC, GFC, 500 Global, Soma Capital, RHL Ventures, Falnas Capital, and Kembara Kapital; Pandai allows primary and secondary school students to learn using gamified quizzes and provides personalised analysis using AI and ML learning algorithms to identify their strengths and weaknesses.

ASEAN Fintech Group acquires JazzyPay for US$1.8M to set foot in Philippines
AFG looks to leverage JazzyPay’s existing partnerships with leading national banks, e-wallets and payment processors; AFG intends to expand into Vietnam and Cambodia in 2022.

Gojek, Google and Grab CEOs back Vietnam’s stock trading app Anfin’s US$1.2M round
The app enables users to buy and sell stocks actively and quickly with small capital starting at only ~US$2; Anfin will utilise the funding to improve its “fractional share” system further to assist users in real-time trading.

Ex-Tiki executives attract US$1M for their work-and-play social network for engineers startup Oi
Investors include January Capital, Goodwater Capital, and SonTech Ventures; Startup Oi plans to utilise the money to expand its global team; Its goal is to reach 2M users in the next two years, starting with engineering talent hotbeds such as Vietnam, Indonesia, and India.

Binance Labs backs Vietnamese DeFi platform Coin98
Coin98 allows users to swap, borrow, lend, invest, and earn crypto with ease, boasting over 700K users in more than 150 countries; Through the deal, Coin98 will also contribute to the DeFi infrastructure on the Binance Smart Chain.

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XCEL NEXT VENTURES
https://e27.co/investor/xcelnext/
An early-stage VC firm with a presence in Taipei, Singapore and Silicon Valley
Verticals: AI, AR, Big Data, blockchain, cybersecurity, e-commerce, enterprise solution, healthtech, ICT, IoT, logistics/supply chain, platform, robotics, smart cities, SaaS, transportation, and VR
Investment Location: All
Stages: Angel/pre-seed, seed, pre-Series A/bridge, Series A
Investment Range: US$100K to US$3M

January Capital
https://e27.co/investor/january-capital/
It invests in early-stage and high-growth technology companies that are powering the digitisation of commerce in Asia
Verticals: All
Investment Locations: Singapore, Australia, Indonesia, Vietnam, Thailand, the Philippines, New Zealand, Malaysia, and the US
Stages: Seed, pre-Series A/bridge, Series A, Series B
Investment Range: US$1M to US$5M

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VE Capital Asia, a Singapore-based management consulting and deep-tech solution and service firm, has made three new acquisitions, including robotics service startup Ourglass, for SG$13 million (~US$9.5 million).

The other two firms are point-of-sale (POS) system vendor Coobiz IT Solutions and business management and consultancy firm Arcana Advisory. All three firms are headquartered in Singapore.

The latest transactions follow VE Capital’s previous US$37 million purchase of three other startups in October. These bring its total approximate acquisition value in 2021 to US$46.5 million.

With the new deals, VE Capital Asia aims to reinforce its key business verticals specialising in management consultancy, IoT and automation, software houses, artificial intelligence and machine learning.

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

Founded in 2018, Ourglass provides its robotic technology to various sectors, such as food and beverage and shopping malls. Its offerings include delivery robots, dine and discover waiter robots, plate return robots, and customer service staff robots.

The purchase of Ourglass Robotics will assist VE Capital Asia’s retail and F&B partners and clients in implementing robotic solutions in their operations.

Ourglass, alongside the 15-year-old POS system vendor Coobiz IT Solutions, will further solidify VE Capital’s POS offerings and IoT and automation capabilities, as per a press note.

At the same time, Arcana Advisory will boost the acquiring company’s management consulting department, while Coobiz IT Solutions will help it assist more local firms to go digital.

VE Capital claims its revenue grew 5,000 per cent in 2021 compared to 2020.

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Indonesia-based gaming e-commerce platform VCGamers has received a US$2.6 million seed round of financing, co-led by Beenext and Rans Ventures.

The round is joined by Google executive Ari Fadyl and Collab Asia Vice President Jerry Soer.

With this deal, VCGamers’ valuation has touched US$20 million, said a company statement.

The startup plans to use the fresh money to speed up product development and expand to another country in Southeast Asia.

Also Read: Mobile, e-sports, live streaming shaping SEA’s gaming startup landscape in 2021

Established in 2021 by Isya Sony Subrata, Wafa Taftazani, Hartanto Lee, and Ibnu Anggara, VCGamers is an online marketplace for in-game currencies, items, and services. The platform enabled users to interact and build e-sports teams or organise tournaments.

The company is currently working on its own crypto token called VCG, which users can use for transactions on the platform.

Rans Ventures is an early-stage VC firm run by Indonesian influencers Raffi Ahmad and Nagita Slavina.

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Vietnamese digital banking platform Timo has raised US$20 million in a new financing round led by global investment firm Square Peg.

Jungle Ventures, Granite Oak, and FinAccel, besides existing backers Phoenix Holdings and unnamed angels, also co-invested, the neobank said in a press note.

Timo expects to capitalise on Square Peg’s expertise in fintech to bolster its growth, aiming to “set the benchmark” for modern banking in the country.

Also read: How digital banking is driving financial inclusion in SEA

Founded in 2015, Timo is a 24×7 online bank aiming to bring greater financial inclusion and accessibility to the large majority of the unbanked Vietnamese population. In addition to helping customers save time during onboarding processes, it also provides access to other banking services through its online platform.

Timo has no physical bank branches; instead, it offers customers meeting spots with coffee and seating areas to make their deposits or manage their funds.

As per a statement, Timo is one of the few banks in Vietnam that provide eKYC services. 

In 2019, Timo formed a strategic partnership with Viet Capital Bank to further ramp up operations.

Recently, the company has been moving forward with its social banking concept. Timo’s features, including TimoPay by Link and Smart History, allow receivers to reply to transactions in the same way they would on a social networking site while also integrating various financial needs such as insurance and investing.

As of 2021, Timo claims it processed over two million transactions every month, resulting in an expected gross transaction value at a US$2.5 billion run rate.

According to McKinsey report, in comparison to APAC’s emerging nations and some APAC developed markets, Vietnam recorded an arguably higher increase in active digital bank users. 

In addition, 88 per cent of APAC customers in developing nations use digital banks between 2017 and 2021, with Vietnamese users increasing by 41 per cent to 82 per cent in 2021 alone. 

With over US$1 billion in assets under management, Square Peg has invested in various fintech firms, including Southeast Asian buy-now-pay-later firm Kredivo, robo-advisor startup StashAway, and Indonesia-based wealth tech firm Pluang. 

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Image Credit: Timo

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This series is produced in collaboration with the Fintech Association of Malaysia (FAOM), a national platform that supports Malaysia become the leading hub for fintech innovation and investment in the region.

An academic working in Indonesia told me that nowadays, the easiest way to win a research grant is to throw in the phrase Industrial Revolution 4.0, with all its accompanying accessories: digitisation, innovation hubs, 5G connectivity, etc.

The COVID-19 pandemic has vastly accelerated the pace of digitisation, bringing millions, whether by entrepreneurship or by pure necessity, into the realm of e-commerce, digital payments, and virtual spaces. It has galvanised talk of fostering innovation and thrust government policy surrounding the digital economy into the spotlight. Every policymaker is eager to crack the code in terms of what can attract founders, and of course, investments, into a nation.

For more than a decade, Dato Ng Wan Peng was a key figure at the Malaysian Digital Economy Corporation (MDEC), driving investments, building local tech champions, and propagating digital inclusivity. She was crucial to the rollout of the Multimedia Super Corridor. She has weathered through sweeping reforms, a historic change in government (twice), and gained a formidable reputation as a highly pragmatic, systems-focused executive. She is perhaps one of the most experienced people in the region regarding growing a digital economy.

Twenty minutes into the interview, when I bring up the impact of the pandemic, she pounces on the topic with frank, sobering precision:

“The digital divide has always been there. It just has been laid bare by the pandemic and it is a wake-up call that a lot more needs to be done. Infrastructure was supposed to be the ‘easy’ part, but there are huge gaps that still exist.”

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

Indeed, the pandemic has supercharged digital adoption. Karen Puah, President of the Fintech Association of Malaysia (FAOM) noted that QR code registration has tripled, going from 330,000 to more than one million in one year; while digital payments have grown 44 per cent in the first half of 2021 to MYR4.5 billion (US$1 billion). Yet, it has also highlighted glaring gaps. “What Dato Wan Peng points out is absolutely key. Financial literacy, connectivity, merchant coverage, all these aspects of digital inequality are going to be the make or break as to whether this transformation benefits the larger segment of society.”

Dato Wan Peng wastes no time in pressing the issue:

“Now is the time to make it happen. The crisis has made it such that awareness of the importance of digitalisation is now sky-high. It has become a mainstream political agenda, where internet and e-commerce have become voter issues even during the recent state elections. What we need now is a clear plan. The plan should be out in the open so everyone knows, everyone can participate, everyone can contribute. Communication is key; the policies are usually there but it is sometimes not clear, and people feel changes are arbitrary or sudden.”

Of course, there is the elephant in the room – we can talk a good talk, but at the end of the day, can Malaysia really be a digital innovation hub, for fintech or for the larger tech industry?

“After everything is said and done, it comes down to execution. Look, this is a cliché by now, but Malaysia has a lot of advantages. Our talent is adaptable, trainable, loyal, linguistically accomplished, and culturally-savvy; our jurisdiction is business-friendly, flexible.”

“So local talent is great, but are we retaining them? Are we providing a conducive environment for them to grow? We have a lot of money being poured into the digital economy, but is it being used at the right places, with purpose? We consistently have great blueprints, but how is it being implemented on a day-to-day, person-to-person basis?” Even through the glaring blue light of the computer screen, through the audio encoding of Zoom, one can hear Dato Wan Peng’s real passion (and frustration) for the topic.

Also Read: I want MaGIC to breed entrepreneurs who create solutions for the world: CEO Dzuleira Abu Bakar

But we come back to solutions, not problems. What is the grand panacea to all these issues? What is the glue that could tie in all the building blocks Malaysia (or many other jurisdictions) supposedly already has?

Dato Wan Peng looks at me, and states her case simply as if it were the most obvious thing in the world.

“Clarity. From an investor’s perspective, they want clarity. This is not the same as a guarantee of results; all investors understand there is risk involved. But clarity in terms of the plan is essential. Then we need to stick to it. The issue is that policies keep changing direction, chasing the latest fad, and moving on to the next thing without having pursued the previous goal properly. This, of course, feeds into political stability: whether investors can trust the policies you say will be there now, will still exist into the future.”

In this respect, Puah completely agrees. “Political stability is a real issue for investors, it has a direct bearing on the reliability of our policies. If we can get our policies consistent and clear, then we can do a lot better. For a business to truly scale, they need to hit a market with a sizeable middle class.”

Dato Wan Peng continues to expound on what clarity could bring to a country:

“We need that clear goal then we need to break it down to bite-sized tasks we can execute, then push it forwards at every single level –public and private. Many people go on and on about how other places are awash in money. Money is undeniably a factor, but it cannot keep people around forever. There needs to be a value add; as a country, you have to be very clear you are driving this agenda, and it cannot be wishy-washy.”

“One example is global business services (GBS), especially in animation, design, and game studios. Malaysia has done very well in this.  This is because we tackled it from multiple angles with a clear and consistent strategy: having the right educational institutes produce quality talent, having the facilities and infrastructure, and having supportive policies which allowed us to position ourselves well in this burgeoning market.”

Also Read: Expo 2020 Dubai: The Malaysian companies ready to break into the global Islamic fintech market

Turning to specific industries, I ask what could be the next technology that may revolutionise the Malaysian digital economy. Unwavering, Dato Wan Peng puts me down gently: “It’s not what technology that is the question. It is how we are going to utilise that technology that really matters.”

Puah provides a ground-level view of what needs to happen next. “Ultimately, it falls back to how companies are enabled and how they respond. This pandemic, we saw a huge growth in fintech, but really, it was not so much the result of new products, but more of the influx of older generations, SMEs, and migrant workers into these digital systems.”

“Whether or not they continue to stay past the pandemic, whether companies can ride on this momentum to supercharge their growth, it will be back to basics: expanding financial literacy initiatives, improving the user-friendliness of the product, ensuring the customer is taken care of throughout their lifecycle. They need to keep at it.”

At the end of it all, it always comes back to clarity and consistency.

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ASEAN Fintech Group (AFG), a fintech acquisition company in Southeast Asia, has acquired JazzyPay, a digital payments provider in the Philippines, for US$1.8 million.

The acquisition builds on ASEAN Fintech Group’s vision to create a regional omnichannel platform in the fintech space.

With this deal, ASEAN Fintech Group looks to leverage JazzyPay’s existing partnerships with leading national banks, e-wallets and payment processors of the metropolitan city.

JazzyPay’s founders and key management personnel will continue to spearhead its growth with accelerated resources and support at the Group level.

Also Read: Fintech is transforming how Southeast Asian companies process international payments

“We believe working together and being a part of AFG’s fast-growing portfolio of companies will enhance our capabilities across ASEAN, fast-tracking the advancement of Southeast Asia’s fintech ecosystem and digital future,” said Kathleen Acosta-Marindo, Co-Founder and COO of JazzyPay.

JazzyPay is a registered operator of payments system (OPS) regulated by the central bank of the Philippines. The platform enables onboarded businesses to collect online payments through multiple channels across credit and debit cards, online banking, digital wallets, and over-the-counter cash deposits for unbanked customers.

ASEAN Fintech Group was founded in 2017 by Dato Larry Gan, Lau Kin Wai and Douglas Gan. It builds an integrated fintech value chain through innovation, network and scale across four verticals: payments, lending/ BNPL, insurtech and digital wealth management.

The firm has ASEAN financial licenses and quick market access to more than 1,000 companies and millions of consumers in the region.

As per a statement, ASEAN Fintech Group has invested more than US$10 million to date on strategic M&As of burgeoning fintech startups within the region.

“Fintech in Southeast Asia has seen tremendous growth in 2021. We are bullish that this rapid growth will continue into 2022 as we acquire and merge with companies in the ASEAN region, showing solid fundamentals. We also see a more matured fintech regulatory framework, guiding us through the complexities of each market,” said Douglas Gan, Executive Director of ASEAN Fintech Group.

Also Read: Banks and fintech: An arranged marriage built on trust, but does it last long?

AFG has identified and intends to expand into two ASEAN countries in 2022, namely Vietnam and Cambodia. The group will also expand its operational capacities and grow its key verticals of insurtech, payments and lending.

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