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How Koina uplifts lives of Vietnamese farmers through its data-driven agritech platform

Farmers in Vietnam faced many supply chain-related problems, including inconsistent product quality and high cost of production and distribution.

And then, COVID-19 hit, and their hardships increased.

Thi Nguyen couldn’t just turn a blind eye to their problems.

“It was during the pandemic-induced lockdown in 2021 that we realised the inefficiencies got worse,” Nguyen tells e27. Farmers couldn’t sell their crops, and consumers couldn’t buy fresh groceries. The harvested crops were spoiled during long transportation, and farmers, who made less than US$300 monthly, became broke. “We saw the urgency to do something to create a more sustainable agriculture and wanted to uplift farmers’ lives.”

Nguyen teamed up with his former colleagues and launched Koina.

Based in Ho Chi Minh City, Koina is a data-driven farm-to-business agritech platform founded in 2021 by a group of former executives at Grab, VinID, and GiaoHangNhanh.

The startup aims to build an efficient agri-ecosystem. The goal is to grow, harvest and deliver fresh produce from farms to retailers with the highest quality at reasonable prices.

“We place farmers at the centre of the business,” says Nguyen. We build tech-enabled solutions to solve farmers’ various pain points.”

Standardising supply chain

The agri-farm tech platform helps farmers in three ways:

First, it helps farmers sell their crops. It offtakes post-harvest products from each farm and builds a distribution network to deliver fresh products to retailers.

Also Read: VinaCapital invests US$1M in farm-to-business agritech platform Koina

Second, it helps farmers buy better, cheaper farming inputs. The platform connects them with the suppliers of seeds, fertilisers, pesticides and agriculture engineers to give relevant guidance and recipe. It also buys bulk materials and distributes them to farmers at a better price, helping reduce production costs.

Third, the startup connects farmers with scientific institutes to provide them with new farming techniques and technologies to increase productivity, reduce costs, and improve product quality.

“Currently, the traditional distribution of inputs (inputs to farmers) and outputs (agricultural products to customers) is fragmented. It goes through individual traders without transparent information on the source of origin and product quality,” Nguyen shares.

“It’s also challenging for financing partners (such as banks) to support farmers, retailers and distributors with working capital and loans. We plan to introduce new services and solutions (finance, farming, food processing) shortly to add more value to the supply chain,” he goes on.

Hard to change farming habits

Most Vietnamese farmers are old and not tech-savvy; it takes hard work to change their farming habits. They also have experienced many market problems from traders/brokers. It was challenging to bring new technologies and practices to them.

The other major challenge is that farmers have no access to funds from state-owned and non-governmental institutions to support agriculture.

Besides, there are many stakeholders throughout the supply chain, and long-standing habits have been formed. The parties are small and fragmented, and the operation is complicated. “Koina is gradually standardising the supply chain one step at a time and applying technology to support business stakeholders more effectively,” he says.

Vietnam has more than 17 million farmers, 11.8 million ha of land cultivated for agriculture, and revenue from agricultural products accounts for over 10 per cent of GDP annually. However, it is a fragmented industry, which presents a massive opportunity for platforms like Koina.

Only 2,500-plus farmers have signed up with Koina, and there is an enormous opportunity to transform the supply chain.

The market is big (US$24-25 billion annually for the domestic market and US$15-16 billion for exporting). The domestic market itself is huge, and so we have no plan to expand into other markets in the next three to five years,” he shares.

Koina recently raised US$1 million as part of its seed extension round from VinaCapital. The money will be used for customer network expansion, helping to upgrade general trade selling points more effectively, thereby stabilising output to commit to farmers.

A portion of the capital will be invested in product handling, adding value for agriculture products when they reach customers to increase value.

“In the next three years, we will continue to focus on crop products, open to other products within the fruits and vegetables categories (more than US$10 billion market), and expand to other growing consuming areas in Vietnam. “After that, we may expand to other categories like seafood, which is also a big advantage of Vietnamese agriculture,” he concludes.

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NFT platform Aura Network raises US$4M co-led by Hashed, Coin98 Ventures

Vietnamese startup Aura Network, which operates a platform for accelerating global NFT adoption, has closed a US$4 million funding round, co-led by South Korea’s Hashed and Coin98 Ventures.

GuildFi, Istari Ventures, Republic Crypto, K300 Ventures, and other angel investors also participated.

The company will use the money for ecosystem expansion, including increasing the number of global Web3 projects and products built in its ecosystem.

Also Read: Are NFTs here to stay (with or without blockchain)?

“Web3 and NFTs are here to stay. Standing on the shoulders of giants, we will use this amount of funds to set up for the next cycle of continued development regardless of any market situation,” said Giang Tran, Founder and CEO of Aura Network.

Aura Network is an ecosystem focusing on building the Internet of NFTs and bringing NFT and Web3 to the masses. It helps companies develop projects through its ecosystem. The firm’s aim is to build a one-stop shop for minting, evaluating, and transacting NFTs.

The company’s development team is currently building several new products as a part of the ecosystem.

Also Read: The future of blockchain technology goes beyond just cryptocurrency and NFTs

Founded by a team of serial entrepreneurs and engineers in 2017, Hashed is a high-profile crypto investment firm in South Korea. It has invested in over 80 projects, namely Axie Infinity, The Sandbox, Cosmos, Klaytn, and MakerDAO.

Coin98 Ventures is the venture capital arm of Coin98 Finance, a Web3 Vietnam-based building hub. The firm seeks to invest in founders with disruptive ideas and innovative approaches across the Web3 stack, from layer-1 protocols and infrastructures to consumer-facing applications.

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Lighthouse Canton to offer access to venture debt to investors on Alta platform

Kelvin Lee, Alta’s Co-Founder and CEO

Singapore-based investment firm Lighthouse Canton has announced a partnership with Southeast Asia’s leading digital marketplace for alternative investments Alta.

The partnership will provide investors on the Alta platform access to the rising venture debt asset class. 

It will enable Alta’s investor community to mobilise capital for the region’s startup ecosystem.

Alta’s Co-Founder and CEO Kelvin Lee said, “We are certain the pace of venture capital activities will actively grow with tremendous opportunities, which will only continue to increase its demand.”

Also Read: Cube Asia attracts US$1.5M to help e-commerce consumers make more data-driven decisions

Lighthouse Canton and Alta see a huge opportunity for venture debt rising across Southeast Asia. Venture debt is a relatively new asset class in the region and has a long way to go compared to the US and Europe.

“At Alta, we are devoted to creating access for our global community of over 1 million investors to innovative opportunities and pave the way for firms like Lighthouse Canton to connect with strategic investors that best suit them,” Lee added.

Lighthouse Canton’s venture debt strategy comprises a Singapore-based Variable Capital Company (VCC) for investments in Southeast Asia and a Category II Alternative Investment Fund (AIF) for investments in India. A few weeks ago, it launched a partnership to invest in venture equity in the Indian startup ecosystem. It closed a US$40 million fund to invest in 27 pre-series A and series A companies across various sectors.

In 2022, Alta acquired the digital securities exchange Hg Exchange, bringing its private capital markets, fund management, and exchange businesses under one roof. Through its blockchain-powered exchange, Alta can also support tokenisation, digital custody, and trading of alternative assets.

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.

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F&B ops management platform OrderEZ acquires Cocoon Capital-backed FoodRazor

OrderEZ Founder Jeff Meese

Singapore-based F&B operations management platform OrderEZ has acquired FoodRazor, an invoice automation and analytics platform.

The acquisition expands OrderEZ’s integrated suite of inventory, procurement, and CRM software.

Based in Singapore, FoodRazor is backed by Cocoon Capital.

Launched in 2021, OrderEZ delivers an interconnected software solution providing inventory management, procurement, order, and CRM software for brewers and bakers, restaurants and cafes, and anyone making or wholesaling food or beverage.

The startup claims it has grown nearly 300 per cent since its launch. It now plans a US expansion in 2023 and a fundraising round.

Also Read: FoodRazor snags US$900K seed funding led by Cocoon Capital

“OrderEZ had been on our radar for some time, and when the teams brought this acquisition to us, we saw the potential and synergy between the two businesses,” said Michael Blakley, Managing Partner at Cocoon Capital, which backed FoodRazor in 2018. “OrderEZ is on a brilliant growth trajectory, and we feel that adding FoodRazor will only accelerate the company to new heights.”

“Our mission is to help the world eat and drink better by freeing the food and beverage industry from countless hours spent on admin,” said Jeffrey Meese, Co-Founder and CEO of OrderEZ.

Globally the F&B industry was one of the hardest hit throughout the COVID-19 pandemic. Many of the millions of workers forced out of the industry simply aren’t returning, fueling a staffing shortage.

Solutions like OrderEZ and FoodRazor help bring automation and efficiency to an industry that previously relied extensively on manual processes. The need for operational tools that facilitate delegation and transparency, increase ease of operations, and deliver deep insights into the health of a business has never been greater, and OrderEZ is uniquely positioned to meet this challenge.

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Why these startups focus on informal plastic waste workers in the fight against climate crisis

An informal worker is sorting “high-value” recyclable plastic waste in a facility

When we are talking about the plastic waste pollution problem, the narrative often centres around technology and the end product as a solution.

But there is an aspect of this problem that is not often discussed: The human resource aspect of it.

In many parts of Asia, plastic waste is commonly processed by informal workers who are part of the marginalised society. According to data, these workers contribute to over 95 per cent of the plastic materials that are being used to recycle, with many of these workers being women. There are many challenges that these workers face, from worker safety issues to disproportionate earnings.

How can startups help in tackling this problem?

Laura Benns, Director of Programs, at SecondMuse explains to e27 in an email interview the value that startups can provide to informal waste workers–that may not be provided by other institutions.

She highlights that waste management ecosystems are complex, including in Asia where it is mostly run by marginalised members of society. But she stresses that innovative design thinking behind new business models around waste management ecosystems has huge potential to break the mould on who stands to benefit from these innovations.

Also Read: Shoes from waste plastic bottles! Neeman’s is going places with its sustainable footwear products

“Startups with business models that involve the informal sector are well placed to strengthen social and economic protections for informal waste communities. Beyond support like training on health and safety, financial literacy, waste management practices and more, informal waste workers can also benefit from increased legitimisation through branded PPE (personal protective equipment). Introducing a uniform-like of sorts creates a social signal that reduces public discrimination and harassment, creating better access to public and private spaces with higher value plastic waste,” Benns explains.

For startups working on digital marketplaces, access to data through tech-based solutions creates knowledge and power for the informal sector to elevate their working conditions, she adds.

“Informal waste workers are given agency to optimise their collection routines and receive better pricing transparency and market information. This leads to higher and more stable incomes,” Benns says.

Benns explains that through the projects supported by The Incubation Network–an initiative by SecondMuse and The Circulate Initiative to tackle the plastic pollution problem–she sees how digital solutions provide platforms for the informal sector to organise themselves and convene to discuss opportunities. This indirectly creates opportunities to enhance their digital skills.

For examples of how these startups help create opportunities for the workers, she gives an example of AMBILIN, a recyclable materials marketplace app developed and released by the Bina Katara Lestari (BINTARI) Foundation. The app convened 49 informal waste pickers in Semarang, Indonesia, to increase their service coverage and competitiveness and to foster a community to sort and collect more recyclable materials.

“The platform allowed the informal waste sector to establish a motorised waste picker association. This brought legitimacy to the role of informal waste workers with recognition from other waste management actors and city development stakeholders including the city government, police, and banks,” she says.

Benns says that in order to support these startups, mentorship, technical assistance, and market linkages are keys to their success.

“Our program, The Incubation Network, has connected startups with industry experts and mentors across the plastic waste supply chain and provided them with technical assistance and specific connections to corporates who can take their solution further. We’ve also facilitated connections between startups and other key organisations, who are working on similar problems in other parts of the world.

Also Read: Throwaway gold: How data can tap into the unrealised potential in plastic waste

The startups who are working on it

In Southeast Asia, there are several startups that are working with informal plastic waste workers to help tackle the plastic pollution problem–and improve the workers’ livelihood.

One of them is Indonesia-based Plustik, a startup that uses plastic waste from landfills to create construction materials.

The company took a closer look at the plastic waste problem and target its roots. According to Reza Hasfinanda, Founder and CEO of the company, “visible” plastic waste such as plastic bottles may get a lot of attention from the public. But the more dangerous one is the low-value and hard-to-recycle plastic waste.

This is where Plustik focuses its research and development. “By focusing on these difficult-to-use materials, we have developed a process that can turn all types of plastic into new reusable products, such as pavement blocks, without needing to segregate plastic waste by type. By ensuring all plastics can be used, Plustik avoids redirecting significant plastic waste to landfill,” Hasfinanda says.

Another startup is Thailand-based Trash Lucky, a company that has designed a smart-bin infrastructure that connects post-consumer recyclables with independent waste collectors.

In solving the plastic waste problem, Trash Lucky highlights the fact that on the consumers’ end, there is no strong incentive to recycle. CEO & Co-Founder Nattapak (Nat) Atichartakarn says that the recycling supply chain in Southeast Asia is heavily reliant on the manual process of informal waste collectors, who roam around the city looking to buy and sell post-consumer recyclables into the recycling supply chain.

“Given this inefficiency, we saw an opportunity to use technology to build a smart recycling bin infrastructure that connects post-consumer recyclables with informal waste collectors. By recycling waste into the smart bin, consumers earn raffles for winning gold and other exciting prizes. When the bin is full it will alert our partnered waste collector to collect and buy the deposited recyclables,” the CEO explains.

Also Read: In brief: New incubation programme for SEA’s plastic waste startups

“We also aim to set up our smart bin at hypermarkets and retail spaces across the country to provide convenience for consumer to drop off their recyclables. Since the smart bin knows the type and amount of material deposited, informal waste collectors would know exactly when, where, and what to collect from our full smart bin. Thus, they save time and gas money, resulting in an increase in profit,” he continues.

This helps to solve a significant problem faced by the workers.

“Typically, informal waste workers would need to cover great distances to source specific high-value plastics and face unstable incomes. By working with us in our sorting facility, we can offer workers training and a steady income with less of the risks associated with collecting plastics. We also provide fixed hours of work helping them to retain a better work-life balance so they can spend time with those who matter most,” Atichartakarn stresses.

From the bottom up

The question that one might have for startups who are working with informal plastic waste workers is that: How do you reach out to them? How do you convince a marginalised member of society that your organisation can provide the right solution for them?

Hasfinanda and Atichartakarn reveal how they did it.

“While high-value plastic waste (such as plastic bottles) is collected prior to the landfill, our sorting facility is based at a landfill site, where informal waste workers help us sort low-value plastic waste,” Hasfinanda explains.

“We speak with these workers directly, which enables us to build a stronger and more collaborative relationship so we can educate them on the types of plastic waste we can work with, ensure women in this line are given equal opportunity to work.”

According to Atichartakarn, Trash Lucky works by recruiting independent waste collectors by staking out at local recycling shops in the area they aim to expand into.

Also Read: The Alliance to End Plastic Waste, Plug and Play announce 11 finalists selected for their startup programme

“The goal is to shorten the distance the recyclables have to travel from consumers to our recycling bin to waste collectors to recycling shops and the rest of the supply chain. We have a referral programme for collectors to refer their peers to our platform too. Once we have reached the informal waste collectors, we would train them on the best practice around the waste collection and how to operate on our digital platform,” he elaborates.

The startup also helps the workers by providing them with a series of training.

“We also focus on improving social recognition and removing common stigmas around informal waste workers by equipping them with communication skills to engage with our communities that recycle with Trash Lucky such as gated residential communities, condominiums, schools, and offices. We are also training our partnered waste collectors on professional conduct and starting to equip them with PPEs (personal protective equipment),” Atichartakarn says.

So what advice can these startup founders give to fellow startups who would like to work with the grassroots community, including informal workers, in their fight against climate change?

According to Atichartakarn, the key is to have an in-field strategy.

“You need to be on the ground and reach people or community leaders directly. The rapport and personal connection you build will break barriers and garner the trust needed to benefit both sides,” he says.

“Doing so will help you recruit your targeted demographic within each grassroot society. Later, once you’ve gained their buy-in and commitment, community leaders and onboarded individuals can become your ambassadors who help refer more people to you,” the CEO continues.

Also Read: One man’s trash is another’s gold: How Tridi Oasis plans to transform plastic waste management

Echoing Atichartakarn, Hasfinanda stresses the importance of co-creation and collaboration in reaching out to grassroots communities. He dubs it as the “most effective way” to work with them.

“Encourage the community to be involved in the development process and to have a say in what they would like to see. Doing so ensures that the outcome is something that is beneficial for both the community and your startup,” he points out.

“It’s also important to be respectful of differences in working culture and to avoid making assumptions about the communities you are working with. Be open-minded and flexible, and be willing to adapt your approach to meet the unique needs of each community,” he closes.

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Image Credit: The Incubation Network

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