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Grab’s Q2 revenues grow 79% to US$321M; losses narrow by 29%

Grab

Southeast Asia’s super-app giant Grab Holdings reported a 79 per cent rise in its revenue, reaching US$321 million, driven by solid growth in mobility and delivery, including Jaya Grocer’s contributions.

The losses for the quarter narrowed by 29 per cent to US$572 million from a year ago.

“In the quarter, we streamlined our organisational cost structure. We optimised our fixed costs, shut unprofitable lines of business and continued to taper incentives as a percentage of GMV,” said Grab CFO Peter Oey.

In Q2, the firm closed GrabWheels support operations in Malaysia and Singapore in the mobility segment. It also combined Indonesia’s GrabWheels operations with its car rental business in the country.

In addition, it wound up its dark store operations in Vietnam, the Philippines, and Singapore.

The adjusted EBITDA for the quarter ending June rose marginally to US$233 million from US$214 million y-o-y. This is attributed to reduced spending on incentives as a percentage of GMV.

Also Read: Grab acquires Jaya Grocer to expand its on-demand grocery delivery in Malaysia

The total gross merchandise value for the three-month period stood at US$5.1 billion, rising by 30 per cent over Q2 2021. Grab also announced that engagement with the users improved in the quarter, with monthly transacting users (MTUs) up 12 per cent y-o-y to reach 32.6 million, driven by strong mobility segment MTU growth. The average spend per user, defined as GMV per MTU, rose 16 per cent to US$155.

According to Group CEO Anthony Tan, Grab’s deliveries segment continued to grow in Q2, despite tougher year-on-year comparisons and as dine-out trends moderated food delivery demand. The company is laser-focused on accelerating its path to profitability.

In the mobility segment, GMV grew 51 per cent, and revenue rose 37 per cent y-o-y as ride-hailing demand continues to be strong. Mobility achieved segment adjusted EBITDA margin of 12.1 per cent for the second quarter, an increase of 224 basis points versus the prior quarter and in line with our expected steady-state margins of 12 per cent.

“We will get there (profitability) by doubling down on product innovation that increases user engagement and reduces our cost-to-serve and focusing on growing high-quality transactions on our platform,” added Tan.

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Ecosystem Roundup: Grab’s Q2 revenue up 79%; SCBX abandons US$500M Bitkub buy; S’pore recognises 3AC liquidation

Grab’s Q2 revenue climbs 79%, losses narrow
The Q2 revenue rose 79% to US$321M from a year ago; Net loss narrowed 29% to US$572M; The growth is credited to its fixed cost optimisation, shutting down unprofitable business lines, and thinning down incentives.

Once SEA’s most valuable startup, Grab falls US$13B behind GoTo
The unprofitable companies are both struggling to convince investors of their moneymaking potential after staging their stock-market debuts in recent months; The ride-hailing firms are struggling to reverse losses amid competition.

Thailand’s SCBX abandons US$500M Bitkub acquisition
The due diligence (DD) exercise found numerous issues that need to be addressed by Bitkub’s management and resolved on the orders of the Thai SEC; This follows the indefinite postponement of the deal first announced in July.

Hodlnaut discloses US$280M in outstanding liability after crypto dip
The company also recently announced massive layoffs affecting 80% of staff; The news came after it froze withdrawals on August 8; The firm oversaw US$750M at its peak volume in March.

Singapore recognises 3AC liquidation, allows further probing
3AC’s core team reportedly has 5 luxury properties in Singapore; Teneo, the advisory firm handling the liquidation, has already seized 3AC’s US$40M assets, although its creditors have reported US$2.8B in unsecured claims.

‘Web3 games should aim to have sustainable tokenomics, ecosystems’
Froyo Games’s Co-Founder Douglas Gan says we will see Web3 games materialising in the next five years, infused with finance like an injection needle, boosting the entire gaming ecosystem.

LiquidX acquires Anime Metaverse to invest in anime IP, grow brand
LiquidX functions as an investor, acquirer, and operator, helping family offices and PE funds diversify into Web3; Anime Metaverse acts as a conduit for anime, manga, and dorama into Web3.

How LiquidX aims to help Web3 founders make their visions come true
LiquidX is a Web3 venture capital studio for the metaverse; It recently announced its acquisition of Anime Metaverse; It is currently in talks to acquire an additional two or three seed-stage investments by year-end.

GREENS aims to empower Indonesia’s 240M non-farmers with its meta-farming solutions
The firm has created a seed-to-meal dine-in platform, indoor growing chambers, and farming as a service for anyone to grow food in their community; It recently bagged funding from East Ventures.

Lazada ex-VP’s P2E mobile gaming platform MetaverseGo scores US$4.2M
Investors include Galaxy Interactive, Delphi Digital, Dragonfly Capital, and Mechanism Capital; MetaverseGo provides access to Web3 games without the usual prerequisite of understanding how to use cryptocurrencies.

EVOS Esports Founder’s new Web3 media startup Avium lands US$2M funding
Investors include Saison Capital, East Ventures, Mirana Ventures, and Hepmil Media; Avium builds an entertainment brand to greenlight original content by the studios behind Marvel Comics, Valve, Netflix, Prime Video, and Tencent.

Edutech firm BrightCHAMPS acquires SEA-focused Schola for US$15M
Schola offers a variety of courses in a live, 1-on-1 class model for kids from four to 15 years of age to build important capabilities for successful global careers tomorrow.

Echelon 2022: Going through the long and winding road to growth
The Echelon agenda is designed to suit a company’s journey to grow; Echelon attendees get countless opportunities to meet and connect with investors, corporates, governments, and entrepreneurs.

How mental health startup Intellect’s founder catalysed his personal battle with anxiety
Intellect’s top aim is to expand to broaden the company’s product offerings to include self-care programmes, live coaching, counselling, and crisis management services.

Singapore edutech firm Jackett raises US$1M funding
Investors are Forge Ventures, EF, Epic Angels Network, and Carousell’s Siu Rui Quek; Jackett helps teachers scan and digitise questions, create custom and personalized assessments from the platform’s library, and auto-grade them through AI.

Indonesia’s cold chain logistics startup Superkul nets funding
The lead investor is East Ventures; The startup offers a fleet of motorcycles equipped with refrigerated boxes, called Superkul boxes, that can carry -22॰C to 10॰C.

Founders of Singapore’s personal finance firm Seedly depart
Kenneth Lou and Tee-Ming Chew have handed over the reins to Yeap Ming Feng, Seedly’s marketing manager, and Ian Hutchinson, SingSaver’s general manager; SingSaver is a unit of Seedly’s parent firm Hyphen Group.

BookDoc CEO Chevy Beh passes away at 37
He has received recognition for his entrepreneurship and outstanding achievements and was the top nominee of Ernst & Young’s (EY) Entrepreneur of the Year in 2013, 2014 and 2020.

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Where does the IT outsourcing landscape of Ukraine stand now?

Despite the progressively violent Russian invasion, Ukraine’s long-vibrant software sector is churning out code for clients worldwide and contributing to the country’s war effort.

Nearly a week after Russia launched its full-scale invasion of Ukraine, many companies in the country’s major information outsourcing industry claim to have relocated thousands of employees to the west of the country, especially the tech hub of Lviv, which has so far been largely spared the fighting and damage.

Keep reading if you’re also among the many wondering what will happen to the Ukraine IT outsourcing industry and what alternatives companies can use in times of need.

Ukraine’s IT industry before the war

Let’s not forget that the pandemic prompted a massive shift from the physical to the digital world, with entire workforces going remote and most businesses moving online. Companies around the world were forced to undergo quick digital changes, resulting in a surge in IT service demands. Ukraine was no different.

Moreover, the long-standing emphasis on high-quality education, especially in technical disciplines such as math, physics, and engineering, has laid the foundation for skilled employees. The Ukrainian workforce is inherently capable of performing the most complex technical tasks, such as developing network systems or managing entire IT infrastructures.

In fact, Ukraine’s leading enterprises have evolved over time from basic software development to higher-level work such as network infrastructure, business analysis, and interface design.

This creative flair has also spawned a thriving startup scene. Last year, a total of US$571 million was invested in Ukrainian or Ukrainian-founded technology startup companies. The country has created many unicorns (startups worth more than US$1 billion), such as software development platform GitLab and online writing assistant Grammarly.

All of this had an impact on the growth of the Ukrainian IT industry, as well as Ukraine’s IT outsourcing company. That was, of course, all before the brutal Russian invasion. Let’s review some key statistics and information about Ukraine’s IT industry before learning more about how the ongoing war has affected this sector.

Key data about Ukraine’s IT sector

Since the mid-1990s, when the first IT companies arrived, the industry has grown at an incredible rate. It now accounts for four per cent of GDP and employs around 200,000 people, with some of the highest wages in the country.

Also Read: Smart outsourcing means hiring partners without losing your core brand identity

Outsourcing has fueled much of this development. However, while the ability to hire skilled programmers at reduced prices used to be the key selling point for foreign consumers, the value proposition has altered significantly as the industry has matured.

In the Good Country Index, which ranks countries based on how much they contribute to human society, Ukraine ranked 13th out of 124 countries in the science and technology category in 2014 and 14th out of 163 countries in 2020.

The authorities considered science and technology, culture, health, and well-being among the seven categories. They examined the following parameters in the “science and technology” section: The number of international students, export-oriented tech journals, scientific and academic publications, Nobel Laureates, and the number of submissions for the International Patent Cooperation Treaty.

According to the Innovation Cities Index, Kyiv, Lviv, Odesa, Kharkiv, Dnipropetrovsk, and other Ukrainian cities are among the world’s most inventive cities. These results are an example of Ukraine’s technological and scientific achievements in the pre-war period.

Ukraine’s IT industry during the Russian invasion

Ukraine’s IT sector has been one of the fastest-growing in Europe in recent years. It had an annual growth rate of 25 to 30 per cent and employed roughly 300,000 people.

But the conflict in Ukraine has taken a heavy toll on the local economy and global supply networks.

The IT industry in Ukraine is operating at about 80 per cent capacity at the present time, compared to its pre-war levels. However, it is unclear whether this trend will continue and what the consequences will be.

As the Ukrainian IT industry is mainly based on service exports, it is much less location-bound than other industries, allowing organisations to use flexible working methods such as teleworking and outsourcing.

Before the war, Ukraine’s third-largest export was technology, and the country aspired to become an innovation centre in the heart of Europe. However, Russia’s invasion threatens the country’s progress, and it needs support from outside its borders.

Future of Ukraine’s IT outsourcing

Much of the thriving IT sector has become resistant and accustomed to living under the pressure of the ongoing conflict that began in 2014 with Russia’s annexation of Crimea.

The Ukrainian spirit is indeed strong. One of the pillars of resistance in Ukraine is the tech community, which is an active part of society and consists of thousands of educated people with a global perspective.

However, it is unclear whether the country’s IT sector can continue to operate or not and for how long. The severity and duration of the Russian strike will significantly impact future developments and the extent of economic disruption.

If the fighting continues, business people may lose investments and cancel contracts. It’s also worth mentioning that ‘outsourcing businesses,’ which serve at least partly as outsourced IT departments for foreign companies, employ nearly 45 per cent of Ukraine’s IT labour force.

If Ukraine’s IT sector collapses, this could have consequences for many European companies. In the run-up to the war, for example, the outsourcing firm Krusche & Company warned that obstructing IT services from Ukraine could technologically cripple the West.

Also Read: How global fintech companies are reacting to Russia’s invasion of Ukraine

In these challenging times, it’s important to remember that there’s always an alternative to which both Ukrainian and international clients can turn. For example, did you know that India is one of the major hubs for high-end outsourcing solutions?

According to a recent report, India is the top outsourcing destination for 80 per cent of European and US outsourcing organisations. Additionally, statistics show that India is one of the world’s largest technical and professional talent hubs in the IT sector.

Concluding thoughts

Ukraine’s dynamic IT industry, which includes a growing number of large organisations such as Google, Samsung, and Oracle, is attracting an increasing number of major corporations to set up R&D centres in the country. It’s also attracting the attention of investors looking for early entry into one of Europe’s most active IT hubs.

With the ongoing conflict between Ukraine and Russia, international outsourcing companies have to redirect their IT projects to other valuable IT hubs in the world, like India. We hope this article could help you to form an opinion about IT outsourcing to Indian providers and find enough information about credible Indian IT companies.

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

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Animoca Brands Japan secures US$45M from parent, Mitsubishi

Animoca Brands Founder and Board Chairman Yat Siu

Animoca Brands KK has raised a total of US$45 million from MUFG Bank and Hong Kong-based parent Animoca Brands Corporation.

Animoca Brands KK is a strategic subsidiary focusing on cooperative partnerships in Japan for NFT-related business opportunities.

The new round brings the Japanese subsidiary’s valuation to approximately US$500 million (pre-money).

Also Read: Web3 is going to redefine labour in Asia in a big way: Animoca Brands’s Yat Siu

The subsidiary will use the new capital to secure licenses for popular intellectual properties, develop internal capabilities, and promote the adoption of Web3 to multiple partners. A portion of the money will also go into increasing the value and utility of its partners’ branded content while fostering the development of a safe and secure NFT ecosystem in Japan.

Established in 2021, Animoca Brands Japan supports the adoption of Web3 among Japanese IP and content holders. It enables famous IP holders in the country to participate in the Web3 ecosystem while leveraging the network, reach, and expertise of Animoca in contributing to establishing the open metaverse.

Headquartered in Tokyo, Mitsubishi UFJ Financial Group (MUFG) is a financial group with a global network in approximately 2,400 locations in more than 50 countries. The Group has about 170,000 employees and offers commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing services.

The parent company develops and publishes a broad portfolio of products, including the REVV token and SAND token; original games including The Sandbox, Crazy Kings, and Crazy Defense Heroes; and products utilising popular IPs including Disney, WWE, Snoop Dogg, The Walking Dead, Power Rangers, MotoGP, and Formula E.

Also Read: Animoca Brands banks US$75M+ more to fund strategic acquisitions, investments

Its subsidiaries include The Sandbox, Blowfish Studios, Quidd, GAMEE, nWay, Pixowl, Forj, Lympo, Grease Monkey Games, Eden Games, Darewise Entertainment, Notre Game, TinyTap, and Be Media.

Animoca Brands has a growing portfolio of more than 340 investments, including Colossal, Axie Infinity, OpenSea, Dapper Labs (NBA Top Shot), Yield Guild Games, Harmony, Alien Worlds, Star Atlas, and others.

In July this year, Animoca Brands completed a capital raise of US$75.32 million. It was the second tranche of the US$359 million funding round led by Liberty City Ventures announced on 18 January 2022.

Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

Image Credit: Animoca Brands.

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Investree completes acquisition of Amar Bank, increases stake to 18.4 per cent

Vishal Tulsian, President Director of Amar Bank (left); Adrian Gunadi, Co-Founder & CEO of Investree Indonesia and CEO of Investree Regional

Fintech startup Investree today announced that it had completed the acquisition of local bank Amar Bank, increasing its stake from 10.9 per cent of all issued and fully paid shares in June to 18.4 per cent.

This acquisition confirmed Investree as a minority stakeholder in the bank, while Tolaram Group remained a majority stakeholder.

In a press statement, Investree and Amar Bank said that by utilising its “solid ecosystem”, they will build a digital bank for MSMEs, who is described by the companies as “the backbone of the country’s economy”, and utilise existing products by the two companies to support MSMEs.

Investree Group operates in Indonesia under PT Investree Radhika Jaya. Currently, Investree Group itself has a business unit engaged in the provision of business solutions such as e-invoicing and stock management.

Also Read: How payment networks are crucial to the rising fintech movement

“Investree welcomes this latest step with great enthusiasm. This initiative is part of creating a cohesive cross-collaboration between fintech and banking as well as jointly innovating products, providing digital financing services and more integrated business solutions, and also expanding the reach to prospective debtors or MSME actors in cities that are part of Amar Bank’s network. In addition, this acquisition will further enhance Investree’s solid ecosystem, enabling increased strategic potential to empower MSMEs across the country. After this, we hope that we can start carrying out the key initiatives being prepared by the Investree Group and Amar Bank,” says Adrian Gunadi, Co-Founder & CEO of Investree Indonesia and CEO of Investree Regional.

Amar Bank transformed its business to be a fully digital bank in 2014. Its employees went from 17 in 2014 to more than 1,000 in 2022.

Through its platform Tunaiku, Amar Bank has disbursed more than IDR8 trillion in loans to impact more than 575,000 customers.

Vishal Tulsian, President Director of Amar Bank, said, “The strategic partnership with Investree will strengthen Amar Bank’s position as a digital bank that leverages technology to positively impact the country. Investree is the largest fintech lending player in Indonesia with a strong focus on SMEs. Amar Bank’s Tunaiku is the strongest Big Data driven digital consumer and micro businesses lending platform, and Senyumku is the most advanced AI driven digital banking platform. Amar’s strong balance sheet + Tunaiku’s digital lending + Senyumku’s digital banking + Investree’s SME lending + Investree’s ecosystem = Poised to become the strongest MSME focused Digital Bank of Indonesia.”

Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

Image Credit: Investree

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