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How this homegrown fintech is helping Singaporeans with alternate investing

Despite the benefits of alternative investments, their penetration in investment portfolios of regular investors remains disappointingly low, for reasons we will come to. 

Alternative assets have been proven to drive growth in portfolios, serve as protection against inflation, and act as a hedge against volatility in public markets.

However, retail investors have invested only a fraction of their assets in alternatives. According to research by KKR, ultra-wealthy families had invested three times more into alternatives than affluent mass investors and ten times more than retail investors.

Examples of alternative assets include private debt and equity, hedge funds, managed futures, art and antiques, commodities, and derivatives.

In Singapore, access to private debt, which offers exposure to the booming buy now pay later (BNPL) segment, is creating an exciting proposition for institutional and accredited investors.

The hope is that in the not-too-distant future, regular investors will be able to more easily access alternative investments through homegrown fintech platforms that tout the mission of democratising finance. 

The reality is that individual investors today still face intense challenges in accessing alternative assets: it remains very much an insider’s game where opaque asset valuations reign, elitist groups of experts form opinions, and access is limited to high minimal entry tickets.

Investment in buy now pay later debt

The rise of BNPL has created a booming market for SMEs and consumer debt that is remarkably low-risk when pooled together while also offering investors attractive yields.

While every investor in Singapore is likely aware of the growth of BNPL (it’s hard not to see these payment options in most high street stores today), many are probably unaware that it’s already being added to portfolios of credit funds and wealthy clients as private debt.

Public equity markets in the US and elsewhere are near all-time highs. The Federal Reserve is expected to begin reducing its balance sheet (i.e. selling the assets it bought to support markets during the pandemic) and raising interest rates to nearly three per cent by the end of the year.

Also Read: The next fintech innovation will be a customer-led phenomenon

This monetary policy, which will spill over to markets in Asia, means that the primary investment class retail investors have access to (i.e. public equities) will likely be repriced with lower multiples.

For regular investors who have most of their net worth in public equities and bonds without any alternatives, this could mean they see a fall in the value of their portfolios over the coming months and even years.

However, with Asia’s growing private debt from areas like the BNPL boom still providing high yields of around 10 per cent per year and low volatility, it offers high-net-worth investors a way to diversify and hedge their portfolios against declines in public markets.

Addressing Singapore’s wealth inequality

High on the agenda of the Singapore government, as made clear in its recent Budget 2022, is to address the growing financial inequality of the population while at the same time continuing to support innovation and new technologies.

Fintech is a segment that the city-state is known to be a regional and global leader in, so it makes sense that it is the fintech start-ups and innovators who contribute toward solving domestic inequality.

As mentioned, alternative assets are not easy to access for the regular investor, so while they represent a possible solution to rising inequality in Singapore, the question of access first needs to be tackled.

This is precisely where fintech platforms can play a role: conditional on support from the regulator, a new breed of alternative investment platforms are emerging that give investors exposure to alternative investments with as little as US$100 starting investment. 

This will be a game-changer for Singapore and the whole world if it is delivered in a safe, regulated way combined with greater financial education and rising levels of financial literacy.

Just as today, there are online comparison platforms for consumer financial products like credit cards, personal loans, insurance, and mortgages. One day soon, fintech companies may offer greater transparency and access to comparisons of alternative investment platforms for the regular investor.

With the right public-private sector investment and effort, we can bring down the stark contrast between the alternative investment holdings of the regular versus an accredited investor.

That’s a noble mission for Singapore’s fintech and one I hope to be a part of it.

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An amazing opportunity for startups to enter the South Korean market

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.

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Ecosystem Roundup: GrowSari nets US$77.5M Series C, VNG forays into metaverse, Shopee winds up India biz

VNG

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.

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

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Shouldering the responsibility of digital payment security

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.

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Ampverse nets US$12M Series A to grow its e-sports platform in Indonesia, Philippines

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.

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Why is fintech driven lending a game-changer for Thai SMEs

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.

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In this age of digitalisation, is edutech a bane or boon for educators?

Since the COVID-19 pandemic, Southeast Asia’s online economy has grown incredibly. Driven by consumer patterns over the past few years and COVID-19’s impact on business, digital adoption has taken a quantum leap.

Digitisation has had an enormous effect on many business sectors, from e-commerce to finance and education and everything in between.

Education technology (edutech) investments have been steadily increasing over the last number of years, reaching a total of US$18.66 billion in 2019, with many edutech companies seeing a rise in installations and usage of their Learning Management Systems (LMS) and other software.

Without home-based learning enabled by edutech solutions, an estimated 135 million schoolchildren would have lost access to education during the global health crisis.

Due to the pandemic, teachers are dealing with increased workloads as they move lessons online and make them easily accessible for all students.

Many educators are suffering from burnout and mental health problems from the stress of trying to accommodate all their students’ needs while dealing with the impact of the pandemic on their own lives.

This begs the question, are educators benefitting from edutech, or is it merely adding to their already overburdened schedules?

The teaching crisis

There has been an ongoing concern with teacher turnover, and it’s safe to say the pandemic did not make things easier.

Teacher attrition is a persistent problem across the globe. Parental expectations, higher workloads, long working hours, and a lack of work-life balance have increased discussion on teachers’ mental health status.

Studies show that high teacher attrition lowers student achievement, with high turnover resulting in lower student scores, particularly in math and English Language Arts (ELA). 

Even with the advancement of educational technologies, without the input and support of teachers, a student’s learning progress is potentially stymied, and the addition of edutech can contribute to teachers’ already overstrained workloads, further stretching them.

Suppose these technologies are too complicated and require a lot of time to learn how to use them effectively. In that case, this adds to teachers’ already intensive workloads and makes teachers less confident in the tools.

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

If they feel that they can’t utilise the tech confidently and effectively, they will be less likely to use them. With the pandemic in full swing, finding methods to reach students and continue their education with as little disruption possible is vital. 

For edutech to work and truly benefit both students and teachers, there is a pressing need for educational institutions to improve the working environment and support for educators.

The best way to ensure that these new technologies are helping, not hindering teachers, is to understand their needs the level of knowledge they have of using the systems and collaborate with them as much as practicable.

Edutech as the lever for empowering educators

The main goal of most edutech is to make learning more engaging for students and make it easier for teachers to deliver lessons. This LMS, platforms or software should help them deal with enormous workloads, not add to their stress.

Students already know how to use online reading materials, pre-recorded videos, remote assignments and digital tests. However, educators still need to figure out how to keep students interested and stimulated during their virtual learning journey to achieve better results.  

Edutech makes the personalisation of learning attainable in a way that wasn’t possible with physical classes alone.

It allows for real-time engagement and the creation of bespoke lesson plans and ability-targetted content. It is a time and cost-effective way for teachers to keep track of their student’s progress, aptitude, and skills.

Teachers can also maintain a clear picture of their learners’ overall progress. Customisation, gamification, and artificial intelligence are aspects of learning technology that can help students become more interested in what they are learning and remain engaged in the process.

Using AI to reduce educators’ workloads must not be overlooked.

It is possible to train or set up AI to take over monotonous and time-consuming duties such as taking attendance other administrative responsibilities such as sending reminders or timetables. It can also deliver structured feedback, develop tests and exams, tutor on concepts, answer questions, and evaluate student progress.

These machine learning capabilities will minimise teachers’ workload significantly. Still, it can free them up to devote more time to creating meaningful interactions with their pupils, which AI cannot accomplish.

Implementation of edutech adding to workload burdens

Even though students today are considered “digital natives”, they still depend on teachers to help them learn how to access and use online learning platforms.

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

Many educators are battling against the distractions that internet-enabled devices can bring to the classroom. Some struggle to use the technology effectively despite the available resources and meet the added challenge of policing their students’ online activities during class time. 

Not every student or teacher has the same access to computers and the internet at home. This issue of accessibility presents further difficulties for teachers if they must assign different tasks to different students or avoid assigning homework with a digital component.

Having access to adequate technical support, enough computer labs, software, and time to learn how to use these new technologies effectively are other challenges some teachers face. As a result, they are under more stress than ever before as they grapple with these new pedagogical approaches. 

Edutech implementation should be tailored around the current learning workflow

In many cases, multiple technologies are used in the classroom, which can confuse students and make it hard for teachers to keep track and manage their usage while juggling all of them simultaneously.

Rather than simply following the latest trends, edutech should have the sole purpose of strengthening and improving existing processes and systems. 

There is a pressing need to develop technologies that alleviate the administrative strain placed on educators and make it easier for them to teach.

When this is the case, they can spend more time doing what they are genuinely passionate about, teaching and making a difference in the lives of their pupils.

Complicated technologies that demand substantial training put additional strain on educators, who may lose faith in their tools. Simple, practical tools are the key to success.

Technology plays a crucial role in ensuring dynamic lessons enhancing teaching effectiveness and efficiency in today’s classrooms. It is possible to democratise education and make it accessible to previously disadvantaged populations using digital technology.

However, much of it fails to address the specific needs of teachers and students, becoming a bane to educators instead. It is not enough to utilise an LMS, software or device and expect meaningful technology integration.

Therefore, more significant consideration must be given to the stack of edutech used in schools.

Educators must be involved in the development process to ensure that the technology meets the particular needs of each classroom, whether it is online or in the school building.

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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Pace acquires Polaris-backed buy-now-pay-later pioneer Rely

(L-R) Rely Co-Founders Prakash Raja, Mohamed Abbas, and Hizam Ismail

Singapore-headquartered buy-now-pay-later (BNPL) company Pace Enterprise has acquired the assets of Rely, the oldest local player in the vertical, for an undisclosed sum.

As per a statement, the acquisition will enable consumers to use Pace’s alternative payment solutions across a wider network of brands in Singapore and Malaysia. The Rely team will be working with all existing merchants to transition them to Pace’s merchant platforms.

As part of this deal, all Rely employees will take on new roles at Pace aligned to their previous capacities.

Founded in 2017 by Hizam Ismail (CEO), Mohamed Abbas (CRO) and Prakash Raja (CTO), Rely is the first company to offer BNPL payment solutions in Singapore. The company has since scaled its operations regionally and partnered with leading retailers, including Qoo10 Singapore, ZALORA, JD Sports and SK Jewellery Group, among other brands.

In December 2020, Rely secured US$74.8 million credit facility from Polaris, the strategic partnerships arm of Singapore-based Goldbell Financial Services.

Also Read: Debunking BNPL myths: Is it going to be the primary mode of payment?

“With a shared purpose in democratising financial services across the region, we look forward to delivering more compelling offerings that cater to our customers’ financial needs,” said Turochas “T” Fuad, Pace’s Founder CEO.

Founded by Fuad, Pace aims to build a banking engine that can operate across countries to help merchants create sales efficiencies and provide consumers with an option to spend sustainably. Its BNPL solution for offline and online merchants matches customers with appropriate spend limits and allows them to split their purchases over three interest-free payments.

Pace operates in Singapore, Malaysia, Hong Kong, Thailand, and Japan. It has built over 5,000 points of sale across Asia and is on track to meet its goal of one million users by the end of 2022.

The startup also aims to have an annualised GMV of US$1 billion by the end-2022.

In June 2021, Pace secured an ‘eight-figure USD’ debt financing round led by Genesis Alternative Ventures. This followed a “seven-figure seed funding” round co-led by Vertex Ventures and Alpha JWC at the time of its official launch in January.

Fuad is a well-known face in Southeast Asia’s startup ecosystem, who previously launched and sold three startups. His first startup was WUF Networks, an Internet of things software company based out of Silicon Valley. The company was acquired by Yahoo! in 2005.

Fuad was also CEO and founder of travelmob, an online marketplace for vacation rentals. Headquartered in Singapore, travelmob was acquired by HomeAway (now part of Expedia) in mid-2013.

In 2016, the serial entrepreneur established and ran Spacemob. He was appointed as Managing Director of WeWork Southeast Asia and Korea after the Spacemob acquisition.

The BNPL market is booming in Southeast Asia. Digital lending, including BNPL, is expected to hit US$92 billion in transactions in 2025 in the region, up from US$23 billion in 2020, says a Forbes report quoting a Google, Temasek and Bain study released last year.

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

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Autistic founders, advocates share their vision of a more inclusive workplace

In recent years, there has been a greater sense of awareness of the importance of diversity and inclusion in the workplace, especially as businesses realise the impact it can have in building a more open society and strengthening business performance. This inclusion also includes the acceptance of professionals of different neurotype, including autistic individuals.

Tech giants such as Microsoft run a programme where they hire and train neurodivergent individuals –which includes autistics– in various roles within the company. These individuals are recruited through a special process that is mindful of their unique needs; for example, the programme uses the popular video game series Minecraft as a tool for a team-building exercise during the recruitment process.

But how about us in the Southeast Asian tech startup ecosystem? Have we done enough? What lessons can we learn from our peers in Silicon Valley?

In this special piece for Autism Awareness Month, e27 speak to openly autistic founders and advocates to discover the challenges that they are facing in the workplace –and learn how we can build a more inclusive workplace for all.

Finding a place to belong

First, we must begin by understanding the urgency of the situation.

In Singapore, according to data by KK Women’s and Children’s Hospital and the National University Hospital, one in 150 children in the country is autistic, a higher rate than the World Health Organisation’s global figure of one in 160 children. The data further detailed that there were 4,400 such children in 2014 –a 76 per cent jump from 2010’s number of 2,500.

Also Read: Towards an inclusive society: Singapore-based startups that are building solutions for people with disabilities

Autism is an incurable lifelong condition. These children will eventually grow up to become adults, with all their strengths and weaknesses. As adults, the matter of living an independent life and finding a job is certainly on top of their (and their caregiver’s) priorities.

So what exactly are the challenges that autistic individuals face in the workplace?

Maisie Soesantyo, Founder of Autistic Career Pathways, a US-based organisation that helps businesses and communities build an inclusive workplace for autistic individuals, explains how the challenge begins in the recruitment process. She explains how there are not many companies that would be openly announce that they are willing to hire and facilitate autistic individuals.

This affects the matter of self-advocacy for autistic individuals.

“It doesn’t matter how brilliant your mind is; it doesn’t matter how talented you are. If you’re not empowered to self-advocate for yourself from the beginning, if you’re not invited to do that, at some point, you’re going to fail,” Soesantyo says.

“We have sensory processing differences. It means that our senses are calibrated differently. So for me, I’m very hypersensitive to sound, temperature change, crowds … and unfortunately, there’s really nothing we can do because we live in this world with all these stimuli input coming,” she continues, describing her personal experience as an autistic individual. “On top of that, of course, we are expected to perform in whatever job we were hired for … You fake it ’til you make it, but it’s very difficult. It comes at a cost to our mental health.”

When asked about the challenges that autistic individual faces in the workplace, Gita Sjahrir, Co-Founder of Indonesia-based Ride Jakarta, puts emphasis on the uniqueness of each autistic individual and the specific challenges they might have.

“When we think about the professional world, my biggest issue lies in executive function and also the ability to read people and their subliminal messaging, their body language. I’m actually notoriously bad at it … [but] I see it as a positive because it makes people speak to me in an extremely clear manner,” she explains.

“Like, ‘Let’s set expectations. Let’s do things with numbers. Let’s set these metrics.’ Because this is what I realise is often missing in the professional world with politics and drama. Issues happen because expectations were just not said,” she stresses, adding that she also struggles with keeping eye contact and managing energy levels.

As with any entrepreneur, fundraising is a challenging process for Sjahrir. But as an autistic professional, the challenges seem to intensify.

Also Read: What this digital shift means for people with disabilities in SEA

“What is considered as the image of a ‘successful potential entrepreneur’ can be anything, depending on the flavour of the moment. A lot of times you just don’t meet the criteria according to people’s perception, whoever the decision-maker is,” she stresses. “And we need to just be more open about that. Because this affects not just neurodivergent people, but also women, who have traditionally raised much less than men for virtually the same type of idea, for virtually the same stage in the investment.”

The challenges that she faces as an autistic individual are actually what led Sjahrir to embrace entrepreneurship. After years of trying to fit into neurotypical (non-autistic people) ways of socialising and interacting in the workplace, and seeing how it impacted her self-esteem, she decided to build her own company where she is free to create a culture for individuals like herself.

Gita Sjahrir, Co-Founder, Ride Jakarta

She builds a company culture that takes a more open and relaxed approach to mental healthcare and facilitates her team with mental healthcare app. In her journey, Sjahrir even finds people who actually appreciate her way of communicating.

“Turns out, people did appreciate the fact that I am very upfront with how things are, that my expectations are clear to the nth degree,” she says.

What businesses can do

In a contributed post to e27, serial entrepreneur Jeremy Foo writes about his experience in dealing with dyslexia and how it affects his approach to entrepreneurship.

“I realised from an early age that mixing up my letters and struggling to follow written commands made me almost invincible to failure. I did not avoid it; I expected it,” he states.

This got us wondering if there are certain professions or industries that tend to be more suitable for neurodivergent professionals, including autistics.

For Sjahrir, the opportunities lie in the fact that founding a startup allows autistics to build a company culture that suits the needs of their neurotypes, and others who may live the same experience as them.

“We become so attracted to doing our own thing … because we know that, deep down, as much as we try to be like everyone else, there’s a great chance that you won’t be like everyone else. And that’s not a bad thing, right? That’s actually fine,” she says.

Also Read: Why Khailee Ng puts mental healthcare support as key to successful founders-investors relationship

Soesantyo points out that in major tech hubs such as Silicon Valley, companies are leading the way in embracing the neurodiversity movement. But they still tend to focus on “one type” of autistic talent –those who are working as engineers or developers– when there is a wide variety of skills that an autistic professional may have.

“This is why I created our nonprofit Autism Career Pathways because I want to figure out a different way to spotlight all kinds of artistic abilities and talents,” she says. “Here we have Facebook, Apple, with all these big campuses. They have a cafeteria; they have the community spaces that can be outsourced to autistic people [who have the skills to run an F&B outlet].”

Another step that businesses can take is by doing job recruitments differently. Soesantyo explains that employers can start by opening themselves to different kinds of matrix to screen for neurodivergent jobseekers.

“Instead of just looking at the numbers and talents and abilities, you can really use a different way to get to know the job seekers and help them to stand out in the best way possible. I think some of the companies here in the Bay Area, they’re also already using video interviews,” she says.

“I think the accountability goes both ways. The hiring managers and the neurodivergent candidate need to have that open conversation from the get-go.”

Maisie Soesantyo, Founder of Autistic Career Pathways

From awareness and acceptance

In May 2021, tech billionaire Elon Musk revealed that he has Asperger’s Syndrome –a condition that now falls under the category of autism spectrum disorder in the fifth edition of Diagnostics and Statistical Manual (DSM-V) by the American Psychiatric Association, the “Bible” for assessment and diagnosis of mental disorders.

When it comes to promoting awareness and acceptance of autistic individuals to the public, one might wonder if public figures being open with their diagnosis will create a positive impact.

“Elon Musk or Sir Anthony Hopkins and all these prominent figures, when they come out publicly about their diagnosis, it’s because they feel the need to do that. It’s more for them. It’s not necessarily for the rest of the world,” says Soesantyo.

According to her, the only way to create an inclusive society is by learning to be less judgmental of others who are different.

“It’s often a big distraction for us when we fall into making judgments and saying stuff like, ‘Oh, you’re so smart, you can’t possibly be autistic. My message is that autism doesn’t have a look,” she says.

In her closing statement, Sjahrir puts emphasis on the importance of listening to neurodivergent people.

“When you work with a consultant on this thing, hire neurodivergent consultants, not neurotypicals who will speak over autistic voices and be paternalistic,” she stresses.

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

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The work of the future is hybrid. The office of the future is virtual

oVice

In the last two decades, technological breakthroughs and societal trends have reflected on and transformed the workplace. From the dominance of the urban population to rural dwellers in 2009 to the launch of a fully automated, robot-powered hotel in 2022, it’s becoming clear that humans have to build innovation to thrive rather than rely on natural resources and the environment.

In 2020, we’ve learned that nature can introduce major challenges and disrupt workflows we believed were well in place, such as the traditional model of office work. A great example of this is how the spread of COVID-19 accelerated the shift to all-remote work.

Where, before the pandemic, only 1 in 5 Americans experienced full remote work, in spring 2020, 71% of surveyed workers were doing their jobs from home. Most are happy with the new working style — 92% of employees expect to keep working from home after the pandemic. 

Among the benefits available to the remote workforce are commute-associated time gains (extra 40 minutes daily) and significant cost savings (US$2,500 – US$4,000/year) related to housing and transportation. 

Is there room for offices in the post-pandemic world?

From the operational standpoint, employers benefit from the all-remote transition — on average, they save US$11,000 per year in rent, utilities, and other expenses.

However, executives are worried about the strength of their organisations and the unity of their remote teams. In fact, most employers believe that teams should work at the office at least 3 days a week to ensure a strong corporate culture.

Also read: oVice, a virtual office platform, uses innovative technology to redefine remote work

While acknowledging the added productivity and cost-efficiency of remote work, many employees also admit to its shortcomings. 35% of surveyed remote workers struggled to set up efficient collaboration workflows and loneliness, 29% had a hard time staying motivated, and 24% couldn’t make the most out of networking opportunities. 

Fresh hires felt the need for an office more pressingly than experienced employees. They want to spend as much time at the office as possible, working remotely at most 1 day per week. In their opinion, the office environment improves productivity and creates a comfortable environment for catching up with experienced colleagues. 

Hybrid work: connecting remote and office-based work

Instead of making remote and office work an either-or problem, executives are looking for ways to keep the best of both worlds by transitioning to hybrid workplaces. By enabling employees to work both from home and at the office, team leaders improve the autonomy, satisfaction, and work-life balance of their peers. 

In fact, hybrid work has become a standard for high-growth companies: 63% of such workplaces have adopted the model. 

It’s worth pointing out that the hybrid work model offers its unique challenges: operational strain (maintaining offices that don’t reach full capacity), a disconnect between the office team and the remote team, and others. Thus, in order to be sustainable, the hybrid work model should offer a common ground for employees inside and outside the office space. 

Virtual offices: a sustainable approach to hybrid workplaces

As is the case for many challenges of this century, technology is a helpful tool for solving the challenges of remote workplaces. Since the start of the pandemic, virtual office platforms have become a new trend. 

These spaces follow the physical laws of an office (you can move around, walk up to someone’s desk and start a conversation) but are more comfortable, accessible, and cheaper to maintain.

Also read: Breaking barriers and bias: How this VC empowers women to take the lead

oVice

Here’s how virtual offices revolutionise hybrid work: 

From an employee’s standpoint:

  • Provide a playground for interacting with co-workers and building meaningful relationships
  • Improve productivity by eliminating the need to schedule calls and use multiple communication tools
  • Facilitate onboarding: new hires can get answers to on-the-fly questions and complete their training faster. 
  • Promote work-life balance. Virtual offices encourage teammates to work only when they are logged into a workplace. 
  • Offer networking opportunities: at a virtual office, it’s easy to get to know the entire team and connect with colleagues from different departments. 

From an employer’s standpoint:

  • Operating cost-cutting: virtual offices are more affordable compared to physical spaces. 
  • No location restrictions in hiring, full access to global talent, and the ability to build diverse, inclusive teams. 
  • Ability to foster team building and corporate culture: virtual offices are customisable so they can be designed to reflect the company’s mission, vision, and values. 
  • Constant availability: unlike Slack, email, or messengers, a virtual office helps team managers and founders get instant feedback from employees, eliminating bottlenecks and improving workplace productivity. 

oVice is connecting global teams in a virtual office

oVice is one of the leading virtual office platforms, used by over 2,000 companies worldwide and connecting over 45,000 people across global teams. The space is used by WeWork, AstraZeneca, Yamaha, Panasonic, and other large-scale teams.

oVice

oVice helps remote teams stay productive and connected through the mix of innovative performance-oriented technology and easy-to-use features. It connects employees through: 

  • Spatial audio: all voice-based interactions have a range and are heard only by teammates inside that range. 
  • Full customisation: organisations can edit and re-design office layouts to meet their needs and reflect their vision. 
  • High-quality audio calls and seamless video connection. 
  • Multiple screen sharing, one-click broadcasting, and shareable links.

Also read: Bridging the gap between insurance accessibility and the gig economy

oVice offers first-time users a 14-day free trial, allowing teams to fully experience the benefits of the platform and make sure it meets their needs. 

The product’s internal team also uses oVice to build and promote the product. To take a look behind the curtain and see how the platform is made, discuss the technology behind it, and oVice use cases, take a look at the team’s tour space.

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This article is produced by the e27 team, sponsored by oVice

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