Despite Singapore having a robust startup ecosystem, ranking 17th in the world according to Startup Genome’s latest report, geographic and demographic constraints mean that Singaporean entrepreneurs must quickly look to enter new markets in order to achieve scale.

In fact, in the current low growth macro-environment in which competition for market share is increasingly fierce, the ability to scale is synonymous with the ability to survive. It’s scale or die.

However, successfully internationalising a business, particularly a nascent one, is no small feat.

The APAC region is incredibly diverse and no two markets are the same. What works in one market may not be appropriate for the next. This poses a challenge for all Singaporean startups, how to sustainably scale into new markets quickly and effectively?

As a leading venture studio and startup accelerator in the region, Rainmaking has supported the international expansion of hundreds of startups across APAC.

As part of that process, the Rainmaking team have witnessed firsthand how challenging market entry can be, requiring careful navigation of regulatory, cultural and other in-market hurdles in order to unlock new opportunities.

Crucially, Rainmaking has found that the key to successful international expansion is to first validate demand in the market for a new product or service, before investing a significant amount of financial and human capital.

About Rainmaking Expand

Rainmaking Expand is a new generation of market entry programmes designed to address the challenges associated with international expansion. After many years of designing, operating and evolving accelerator programmes around the world, Rainmaking has established a framework that first helps startups assess their viability in new markets before helping them to deploy there.

Their latest programme, Rainmaking Expand: South Korea, supported by Enterprise Singapore (ESG), focuses on providing end-to-end support for Singaporean startups seeking to enter the South Korean market.

In contrast to the traditional accelerator programmes that focus on education, mentoring and pitch preparation, Rainmaking Expand offers customised, modular programme plans for each startup that are designed to maximise commercial outcomes.

The support on offer covers market validation, customer discovery, business development and the facilitation of relevant introductions in South Korea.

With customisation being the main focus, Rainmaking explores each company’s business model and expansion plans and identifies particular areas that require validation before attempting to execute a market entry plan.

Rainmaking also helps businesses explore regulatory, cultural and other in-market challenges that a startup is likely to face, making sure that plans and expertise are in place to deal with them.

Also Read: Holding tight or letting go: A paradox I face as a father and a corporate venture builder

The programme is comprised of two tracks:

• Track one focuses on ramping up in preparation for expansion. During this phase, startups work with Rainmaking to validate in-market demand for their product or service and develop their expansion strategy and roadmap.
• Track two focuses on executing the go-to-market strategies that startups have created. During this phase, startups will engage in focussed business development conversations with potential customers and collaborators in South Korea and concentrate on securing new customers and pilot opportunities with commercial collaborators.

Why South Korea?

South Korea is a compelling market for Singaporean startups looking to expand within the APAC region for a number of reasons:

• Welcoming international startups: South Korea welcomes high potential startups through startup initiatives and by establishing Free Economic Zones (FEZs). This has opened up commercial pathways for expanding into South Korea whilst ecosystem players like Rainmaking help accelerate time to market.
• Major Trend & Tech Testbed Consumer: Trend sensitivity and strong purchasing power make South Korea an ideal market for global brands wanting to test and refine new products and technologies, giving rise to the idea that where the Korean wave goes, the rest of the world follows.
• Global innovation hub: South Korea has produced 17 unicorns and has topped the Bloomberg Innovation Index for seven of the nine years that it has been published. More to the point, South Korean conglomerates are enthusiastically working with startups in a variety of ways, including partnerships, equity investments and M&A.
• Strong government support: The government plays an active role in promoting and nurturing the local startup ecosystem and boasts some of the world’s most generous grant funding programmes for entrepreneurs. The K-Startup Grand Challenge, which invites and incentivises foreign entrepreneurs to set up shop in South Korea, is one such programme.
• Growing despite COVID-19: South Korea’s four per cent growth rate in 2021 is expected to remain robust through 2022 and 2023. Under the Korean New Deal, the government is investing US$133 billion to accelerate the transition towards a digital and green economy, creating a host of new opportunities for startups from around the world.
• Proximity to key Asian markets: Located in the centre of Northeast Asia, South Korea acts as a launchpad for accessing 2 billion tech-savvy potential customers – an ideal location to enter and expand for startups.

How to join the programme

The Rainmaking Expand: South Korea programme is currently accepting applications for the first cycle, and is already helping startups identify their needs for market entry while building a customised modular programme for them in order to succeed.

Interested startups can apply to the programme now via the Rainmaking Expand website in order to begin their market entry journey. Applications close April 3, 2022.

–

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

Image Credit: aaron90311 via Canva Pro

The post An amazing opportunity for startups to enter the South Korean market appeared first on e27.

GrowSari announces a US$77.5M Series C
Investors include IFC, KKR, and Pavilion Capital; GrowSari aims to help sari-sari store owners transform into comprehensive service hubs for the Philippine grassroots communities.

‘Blockchain could’ve eased the lives of many people fleeing the Russia-Ukraine war’
At the Binance Blockchain Week in Dubai, Global Policy House CEO Michelle Chivunga said blockchain is all about people and can be used to support people during various calamities.

VNG enters the metaverse with a bet on Korean gaming unicorn Haegin
The US$81M Series B round was also joined by Kakao Games and China’s NetEase; Haegin owns the titles such as Play Together, Homerun Clash, and Extreme Golf; The first listed game – which was built on the metaverse – has seen 80M global cumulative downloads.

Indonesian fintech Amartha in talks to buy Shariah bank
The talks to acquire Bank Victoria Syariah comes as the fintech is in the process of raising pre-IPO funding round; The bank had total assets of US$101M as of end-February, according to the bank’s website.

Shopee shutters India business
The exit comes as the platform is looking to reduce its burn rate and shut newer markets that are not “slam dunk” wins; A source said the company’s user base in India had been growing fast before its decision to discontinue operations.

E-sports startup Ampverse raises US$12M Series A
Investors include Falcon Capital, Vulpes and Gandel Invest; The startup will use the new funds to expand into Indonesia and the Philippines, acquire new e-sports teams and scale its play-to-earn business unit.

Quick commerce startup BeepBeep! secures US$6M seed led by Genesia Ventures
It will establish a network of warehouses to enable a 15-min island-wide delivery reach in Singapore, and also selected cities in Malaysia and Vietnam; BeepBeep! will increase its number of warehouses by up to 10x across three countries by the end-2022.

Indonesia Impact Fund (IIF) invests in Cakap
Cakap is an edutecch company that offers non-formal education in Indonesia that mainly focuses on foreign language and vocational courses; A unit of Mandiri Capital, IIF focuses on early-stage startups that are aligned with United Nations’s Sustainable Development Goals.

Warehouse automation platform Woodtrees secures US$500K from Max Capital
It will use the funds for expansion into Thailand, Vietnam, Indonesia, Philippines, Singapore, and China; WoodTrees designs develops and delivers professional automation solutions for warehouses and distribution centres.

Ex-iProperty CEO Georg Chmiel backs Malaysian HR tech firm BrioHR
BrioHR is a cloud-based human resources management platform that offers services ranging from recruitment to payroll for SMEs in Southeast Asia; A YC graduate, BrioHR raised US$1.3M in 2021 from GFC, East Ventures, and others.

NUS wearable tech spinoff Microtube Technologies gets US$808K seed funding
The lead investor is Oriza Greenwillow Technology Fund; Microtube creates stretchable and “imperceptible” sensors that serve as wearable controllers for digital interactions; It is eyeing use cases in gaming, fitness, healthcare, training, and virtual reality interactions.

Kakao Gift operator invests in Indonesian voucher startup Aldmic Technology
The startup offers vouchers that can be purchased by companies and distributed to their employees as part of a loyalty program; It helped develop Samsung Gifts Indonesia, the local rewards programme of the electronics giant.

I spent nearly 5 years at a fast-growing startup. Here’s what I learned
Focus on finding great mentors (and sponsors) who are invested in your growth; Don’t get too hung up on how each piece contributes to your specific career path; instead, learn a wide breadth of skills if given the opportunity.

—

The post Ecosystem Roundup: GrowSari nets US$77.5M Series C, VNG forays into metaverse, Shopee winds up India biz appeared first on e27.

Two years since the surge in the adoption of digital payments, shoppers have seamlessly transitioned to their day-to-day use, with online payments becoming second nature for those buying goods and services online.

To illustrate the extent to which digital payments have become a permanent fixture of shopping behaviour, the volume of PayNow transactions in Singapore alone in Jan-Oct 2021 hit US$64 billion, more than double and well above the US$25 billion recorded in the same time period in 2020.

Further data from PPRO also shows that the e-commerce boom is here to stay, with the sector set to grow from its value of US$5.9 billion in 2021 to an estimated US$10.7 billion over the next five years.

However, digital payments have become a target for scammers like anything that soars in popularity.

These bad actors recognise that many have adopted digital payment methods for the first time during the pandemic. They chance upon these users’ lack of experience or understanding by convincing them to give away security details and part with their hard-earned money.

In 2021, the number of users of digital payments above 60 years grew by up to five times faster than those younger.

Looking at this data, it would be easy to conclude that this demographic might be the most susceptible to falling victim to banking scams and fraudulent transactions. Still, the recent spate of online banking scams has shown otherwise.

Contrary to popular belief, the younger, digital-native generation who have been surrounded by technology have been some of the biggest victims in the recent turn of events.

With scams on the rise and more and more victims falling foul of them, how can the e-commerce and digital payments industry and the banks rally to combat attacks?

Building defences from the ground up

For all the convenience of online shopping, there have been rising concerns about the security of the users of digital commerce platforms.

Also Read: There’s a lot more to account-to-account payment than meets the eye

While banks and financial institutions are responsible for protecting their customers’ data and financial information, passively watching systems and databases from potential cybercrime is no longer sufficient.

With such high rates of adoption by people from all walks of life and differing levels of financial literacy amongst the digital payments user base, more needs to be done to combat this wave of crime.

But with the payment stage being such a crucial part of basket conversion, a delicate balance needs to be struck between communicating the dangers of misuse of digital payments to users and further encouraging their adoption and usage.

A prolonged loss of consumer trust in digital payments, and an inability to fight back against scammers, would cost banks, e-commerce platforms and payment service providers dearly.

Taking steps to bolster the security for users of digital payments, some payment players have adopted innovative technologies like artificial intelligence to identify scams early and stop them before they come to pass.

Technology like this can play a crucial role in surveillance and in ensuring digital players’ compliance, helping to give the end-user peace of mind when it comes to paying online.

Consumers, ignorance is not bliss

Like many countries across Southeast Asia, online shopping has risen significantly in Singapore in recent times, with 73 per cent of online shoppers in the country having shopped cross-border.

While Singapore’s financial regulator has said that consumers will not be held fully liable for financial losses of fraudulent acts, there is an argument that the consumer should still be responsible for having willingly, although unknowingly, given access to their bank details.

In an increasingly interconnected financial ecosystem, consumers cannot passively depend on third parties to protect them, no matter how robust the security infrastructure of their payment provider may be.

As a result, the onus is also on consumers to always practise vigilance, more so for the digital native generation, who have grown up always having access to digital payments.

Unlike the older generation that was raised without easy access to digital financial services and thus possibly more cautious, the savvier, the younger generation could be more comfortable with such technology and therefore fall victim due to their complacency.

Also Read: E-commerce for the future: How open banking enables greater security and trust

For this audience, there’s an argument that greater financial education is needed from an early age, with continued reinforcement from banks, e-commerce platforms, and payment players key to ensuring education keeps pace with ever-developing scams.

Developing digital literacy to keep consumers safe online

For all our advances in digitalisation, this gap between digital consumption and digital literacy needs to be bridged.

To fill the gap, some banks have taken responsibility to educate their customers and upskill them on financial and digital literacy by launching education and awareness campaigns targeted at those at risk.

At the government level, steps have also been taken to detect and disrupt scams and mitigate losses and strengthen public education levels.

For example, scam prevention app, ScamShield, has seen more than 722,000 SMSes reported to be used in scams, just within the first six months of its launch in November 2020, and we can only imagine the extent of how many potential scams the public has been protected from since then.

But there’s always more to be done, and now is when the education system needs to play a bigger role in preparing the next generation for life even more immersed in the digital realm. Implementing the basics of cyberliteracy into academic curriculums to better equip young people with the knowledge they need to recognise cyber threats is the need of the hour.

Our journey with digital payments has come a long way, and as the world continues to digitalise, scams will grow increasingly complex and sophisticated. Now more than ever, the entire ecosystem needs to come together to fight against digital threats.

–

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

Image Credit: gregorylee

The post Shouldering the responsibility of digital payment security appeared first on e27.

Singapore-headquartered e-sports startup Ampverse has secured US$12 million in a Series A round of investment, led by global investment fund Falcon Capital.

Existing investors Vulpes and Gandel Invest also participated. Gaming, media, sports and e-sports industries veterans, including Rob Gilby (former Disney SEA MD), David NG (CEO GoGame), Michael Patent (CEO Culture Group), Marcus John ( former VP Lagadere and Wolfpack Fund, founded by former IMG and Group M executives), also joined the round.

Ampverse will use the new funds to expand into Indonesia and the Philippines, acquire new e-sports teams and scale its play-to-earn business unit. This includes acquiring play-to-earn (P2E) guilds as the company moves into the P2E space to complement its existing e-sports IP pillar.

Also Read: Play-to-earn: Understanding the popularity of Axie Infinity

CEO Ferdinand Gutierrez said: “Ampverse has witnessed tremendous growth over the last twelve months, with 125 per cent revenue growth and expansion into the Vietnamese and Indian markets, while also strengthening our e-sports assets portfolio. We will utilise these funds to move forward to solidify our position within Southeast Asia by continuing our expansion into Indonesia and the Philippines. We will continue scaling our e-sports and new play-to-earn business unit through further M&A.”

According to him, the Indonesian and the Philippine markets are strategically crucial, given the dynamics of their e-sports and P2E markets and the popularity of certain games in these countries. They will complement the existing titles its portfolio of teams compete in.

“Both markets share several commonalities in terms of the popularity of certain game titles and their buoyant streaming markets. Indonesia is evidently a significant market due to its sheer scale. Furthermore, its high e-commerce adoption presents a huge opportunity to provide fans with engaging gaming products and experiences,” Gutierrez told e27. “With the Philippines specifically, we see some fantastic gaming talent emerging from the region who can cut through and become mainstream celebrities, thus presenting some exciting opportunities to develop original content and IP.”

Ampverse owns and operates e-sports teams across Asia, including top brand ambassadors and pro players that sit at the intersection of gaming and popular culture. It owns some of the world’s best e-sports teams, influential gaming talent, P2E guilds, and a series of experiential-driven products and gaming collectibles.

Also Read: How play-to-earn is fueling the next wave of blockchain adoption

Its client base includes Disney, Samsung, McDonalds, Nestle, Lazada and Porsche.

Ampverse has offices throughout Southeast Asia and India.

The gaming and e-sports market is growing exponentially, not just within South and Southeast Asia but globally. NFT adoption in Southeast Asia ranks as some of the highest markets globally. The Philippines ranks first with 32 per cent ownership, Thailand second with 27 per cent, and Malaysia third with 24 per cent. Vietnam rounds off the top five worldwide with 17 per cent NFT ownership, just below the United Arab Emirates (UAE) at 23 per cent.

“P2E game adoption is also on a high growth trajectory in the wake of the breakthrough game Axie Infinity, a Vietnam-made P2E game that generated over US$2.3 billion in sales and attracted some 2.5 million players. Since then, we have seen even more P2E games surface in the market with high potential to drive fast user adoption,” he said.

—

The post Ampverse nets US$12M Series A to grow its e-sports platform in Indonesia, Philippines appeared first on e27.

Like everywhere else in the world, Thailand has been battling the worst pandemic crisis. This does not come as a surprise for Thailand, as in 1997 and 2009, the country fought both the great Asian Financial Crisis and the rapid spread of the H1N1 virus.

With my experience in working with small and medium enterprises (SMEs) in traditional banks for over a decade, as well as working in the Information Technology sector in internet pioneers and a global consulting firm before that, I have been well placed to understand the needs of the SME market in Thailand.

Amidst this crisis, I know that SMEs are particularly vulnerable, and I am working with the Siam Validus team to use technology to help bridge their financing gaps. 

SMEs form the backbone of growing economies, and Thai firms are no exception. The Asian Development Bank Institute reported that SMEs contribute about 45 per cent to Thailand’s GDP growth and created 14 million jobs.

SMEs face a recurring challenge, the lack of access to capital and financing. The Bank of Thailand has made efforts to revive the economy during the pandemic by offering billions of dollars at low-interest rates.

These measures allow tax reductions for SMEs and ease rules for granting loans from commercial banks. But despite these efforts, SMEs in Thailand are still struggling with debt loans that could drive them to bankruptcy.

While financial institutions have used collateral-based lending for years, most local SMEs have insufficient collateral. This makes the complex and cumbersome loan application process intimidating for proprietors. This process has been unfavourable to SMEs and challenging for financial institutions to address.

The use of old financial statements of SMEs to assess credibility is also a hindrance for high growth SMEs. Evaluating which firms could be entitled to loans based on the earlier profitability or number of years in operation.

Still, it does not quite capture the capability and potential of SMEs. Thus aside from self-financing and soft loans, SMEs must diversify their sources of financial support.

They can achieve this through digital crowdfunding platforms that use analytics to help them become creditworthy. Since SMEs do not have hard collateral to pledge to banks, they must look at alternative sources of financing their growth.

What could be their saving grace?

Enter digital solutions.

In partnership with the OSMEP, the US-ASEAN Business Council conducted a webinar for SMEs in Thailand on digitalisation during COVID-19.

The seminar explained that digital understanding solutions would help SMEs to take advantage of online payment systems and increase online presence with digital marketing.

But that’s not all. Digital solutions such as fintech-driven lending can also help SMEs’ long battle with financing. This is crucial as Thailand heads into the recovery phase post-pandemic.

Diversifying financial support through crowdfunding

A prominent digital solution is Siam Validus. Since the pandemic began, Siam Validus has seen an increase in loan applications 30 times. In particular, short-term working capital loans are in high demand from the logistics and construction sectors.

Reinforcing its mission to increase access to financial services for SMEs across the ASEAN region, Siam Validus is the Thai arm of award-winning fintech headquartered in Singapore. Validus uses Data Analytics and AI to drive growth financing to the underserved SME sector via debt crowdfunding.

Also Read: How voice AI is revolutionising the fintech scene

Crowdfunding is an efficient and proven way for SMEs to raise capital. It is a form of digital financing where anyone can receive financial support for their businesses through an online platform.

The Thai crowdfunding landscape is poised for growth, despite the impact of COVID-19. Some key challenges for SMEs could be treating debentures, which larger companies traditionally issue.

But with crowdfunding regulations, SMEs can take advantage of debenture issuance too. However, they could face challenges in meeting all the onerous requirements of debenture issuance. These requirements could make the process difficult for small loans and high velocity of transactions.

For example, they could not verify relevant information to assess their creditworthiness. This means that some businesses would not be able to access financing to meet their cash flow needs.

How Siam Validus can help SMEs with financing in Thailand

Siam Validus went live in Q1 2021. Siam Validus onboarded and signed with Siam Cement Group (SCG), the largest and oldest cement and building material company in Thailand and Southeast Asia despite the ongoing pandemic.

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

This partnership allows us to access affordable financing for SMEs and vendors under SCG. Siam Validus can thus pre-approve unsecured credit limits of up to US$1 million and disburse loans quickly without meeting the customer or even asking for their financial statements.

This means faster cash flows and immediate working capital for vendors, allowing them to increase output or take on more projects. Instalment buying becomes accessible to dealers and distributors, allowing them to buy more with longer credit terms.

Siam Validus was also the first foreign fintech firm to be granted a debenture crowdfunding license by the Securities and Exchange Commission of Thailand (SEC).

We could thus bring our best practices and robust governance framework from our regional operations to Thailand. This affirms our past performance and helps us to make an impact on local SMEs, especially in these crucial times.

To date, Siam Validus has already disbursed close to $10 million and is on track to finish 12 months of go-live with US$100 million in loans disbursed.

Siam Validus thus provides SMEs with an accessible and intelligent platform to access capital. SMEs can offer crowdfunding bonds for sale to investors, while investors can search for these bonds on the same platform. A return on investment will then be received from the repayment of the bond issuer.

The firm is backed by reputed VCs, including AddVentures by SCG, Openspace, Dutch Development Bank FMO, Vertex Ventures Southeast Asia and India, and Vertex Growth Fund.

Validus aims to disburse over US$200 million to Thai SMEs in the first 24 months and support SMEs through this pandemic.

Personally, my proudest career-defining moment happened early in my career when I helped transform and scale the SME segment at Siam Commercial Bank.

So this is my dream to succeed in breaking the barriers to financing for SMEs in Thailand at Siam Validus. Along with my team, we are working towards becoming the top SME financing platform in Thailand, making sure key visions are achieved while maintaining operational excellence.

Growth-oriented SMEs deserve easy access to funding even in an economic downturn. I am determined to help Thai SMEs raise capital through crowdfunding.

I hear stories of SMEs who keep coming back to us, their inspiring growth and their ability to increase jobs translates to employment for the economy.

Every tiny drop makes a difference, and seeing that translates into a ripple effect positively gives me tremendous joy! With an accessible platform that connects SMEs with investors, Thai SMEs are one step closer to relieving their financial burdens and poised for recovery and growth.

And to any fellow aspiring female leaders or anyone who wants to tread an unconventional path, my answer to you is to work with passion, be true to yourself and your team, and make yourself open to learning new things every day.

–

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

Image Credit: pitinan

The post Why is fintech driven lending a game-changer for Thai SMEs appeared first on e27.