The tech industry is currently facing a tumultuous time, with many companies facing massive layoffs due to the economic downturn. Tech companies have laid off more employees in January 2023 than in any other month since the start of the pandemic. 

This is a challenge that is affecting the entire industry, from established tech giants to smaller startups. The impact of this downturn is being felt acutely by employees, who are facing job losses and uncertainty about their future. 

In spite of this, could remote work actually see greater growth?

The normalisation of remote work

Remote work is no longer a novel concept but a rapidly growing trend. According to recent studies by the career site, Ladders, remote work opportunities increased from less than four per cent in 2019 to over 15 per cent today. Another study by Upwork predicts that by 2025, 36.2 million Americans, or 22 per cent of the workforce, will be working remotely. 

While the global pandemic normalised remote work for vast swathes of the office-going labour force, there are compelling reasons to believe that remote work is here to stay. In fact, it may well continue to grow despite the current recessionary fears.

Doing more with less through remote work

For one, offering remote work or flexible work arrangements can allow companies to retain talent without increasing their cost base.

Also Read: 9 tips for creating a remote work cybersecurity policy

A working paper published in July 2022 by the National Bureau of Economic Research looked at hundreds of senior business executives surveyed monthly by the Federal Reserve Bank of Atlanta. 38 per cent said they had expanded remote work as a way to “keep employees happy and to moderate wage-growth pressures” in the past 12 months. 41 per cent said they planned to do so in the next year.

By providing opportunities for individuals to work remotely, several companies have reported increased productivity and employee satisfaction. Crypto payroll startup Request Finance grew five times in the total number of transactions on its platform despite the impending recession, with its remote-first team structure being advantageous to its financial viability.

The advice and best practices shared among the Web3 CFO club, an online community of over 200 members backed by Request Finance, was helpful in mitigating the FTX fallout, said Christophe Lassuyt, CEO and Co-Founder of Request Finance. Trello also found that 75 per cent of remote workers felt they were more productive working from home compared to the office.

Promoting remote work can also see cost savings beyond payroll. A study conducted by Harvard Business School and Stanford University found that organisations could save an average of US$11,000 annually per part-time telecommuter, which translates to a 21 per cent increase in profitability. This is a result of lower costs associated with office space, utilities, and other overhead expenses. 

Remote work has the potential to save companies over US$200 billion as workers are willing to accept lower pay growth in exchange for the convenience of working remotely. A significant portion of companies has embraced remote work as a way to mitigate financial stress on their workforce.

Approximately 40 per cent of the firms surveyed in a working paper by the University of Chicago stated that they had increased the availability of remote work in the past year for this reason, with an equal number of firms expecting to do so over the next 12 months. 

The financial benefits of remote work are numerous and far-reaching for companies. Remote work can build recession-resilient companies by offering cost savings through reduced overhead expenses and increased productivity. 

Global payments enable global teams

Remote work is increasingly driven by global teams. No longer are companies confined to their borders in search of talent. Employees, too, need not leave their shores in search of global work opportunities. But global teams need efficient global payments.

With a distributed team based all over the world, the current state of cross-border payments remains a challenge to businesses. Traditional payment methods, such as wire transfers and credit cards, are slow and expensive. The cost of processing a payment through banks is excessive, with fees averaging over US$36.50 per transaction and even taking a cut of up to 10 per cent of the total transfer value. An alarming 47 per cent of suppliers are frequently paid past their due date, according to Deloitte. 

A study from Juniper Research shows that the total value of B2B cross-border payments, which have grown by 30 per cent in the last two years, will reach US$35 trillion by 2023. There is a need for businesses to look for cross-border payment alternatives, especially remote-first and globally distributed teams. 

Also Read: Building successful remote teams: Navigating cultural differences between Southeast Asia and the world

Blockchain-powered payment infrastructure apps can play a transformative role in making cross-border payments cheaper and more efficient. Crypto payments have eliminated the need for costly and time-consuming intermediaries to process payment transactions. 

Little wonder then, that crypto companies also happen to be remote-first organisations. In fact, crypto companies appear to have been leading the growth in remote work globally. 45 per cent of blockchain-related jobs advertised on Indeed in 2022 were remote, nearly triple the global average of 16 per cent across employment sectors. 

Companies using crypto payments have also noted that the programmable nature of crypto payments simplifies managing global payroll. According to data from Request Finance, crypto companies have used its app to process nearly US$290 million worth of crypto invoices, payroll, and expenses since January 2021. Giuliana de Luca, Operations Manager of Decentraland, said “The time we spent on processing crypto payments went from a week to a day or two”.

Remote work as a key to the future of work

Remote work has the potential to revolutionise the tech industry and the world as we know it. Back in the early days of the Internet, remote working was still relatively new and met with scepticism by many.

Fast forward to today, we see that remote work has grown into a full-blown global movement. Companies of all sizes are embracing remote work as a means of cutting costs, accessing a wider pool of talent, and improving employee satisfaction. 

The future of work – at least office work – is remote. Despite the challenges faced by companies in transitioning to a remote-first approach, companies that embrace this shift will be better equipped to withstand economic downturns and build resilience in the face of adversity. 

As the world continues to navigate the impending recession, it is important for businesses to consider this shift and adapt to the changing landscape of work.

–

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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

The post Is remote work the answer to tech’s layoffs? appeared first on e27.

In the face of a tumultuous past few years – from the global pandemic and economic slowdowns to simply how we go about our everyday lives – the entrepreneurial spirit in Asia is still very much alive.

In fact, the spirit continues to burn brighter than ever in our young, who increasingly seek to unravel new opportunities and ways of doing things to improve the lives of others in the community. According to an Economic Development Board report, Singapore alone is home to more than 3,800 tech-enabled startups, fuelling a wider ecosystem worth over US$22.5 billion.

As we set new directions and ambitions for 2023, it is perhaps important for us to not only take stock of what startups today need to thrive but also decide how best we can rally this growing ecosystem together to distil important resources to our aspiring entrepreneurs of tomorrow.

It takes a village to set the next-gen entrepreneurs up for success

It can be tough to navigate the startup scene, especially in a day and age where consumers’ needs, wants, and desires have shifted drastically from what they were a couple of years ago. The e-commerce and live streaming boom, as well as the rise in conscious consumption, are just some of the many things fresh faces in the industry must now face.

Also Read: Turning vision into digital reality: How The Sandbox Co-Founder creates a rich metaverse of creators and gamers

Yet, despite the roadblocks ahead, they are not alone – and we must do our part to remind them of this. In my role leading Ngee Ann Polytechnic’s (NP) Innovation and Entrepreneurship (I&E) office, The Sandbox, I have come across countless entrepreneur-alumni who have made waves with their products and solutions, wanting to do more to uplift and empower the next generation of trailblazers.

This has set us and other passionate alumni – including Legatcy’s Dennis Poh, serial entrepreneur Desmond Lee, and ASEAN Fintech Group’s Douglas Gan – on a path to create the NP Angel Network, Singapore’s first alumni-angel investment network for polytechnic students. This programme will see accomplished alumni entrepreneurs commit a minimum of US$20,000 each as angel funders, with the final investment amount potentially increasing following the biannual pitches by students.

Today, the network has seen the contribution of over half a million to date and continues to remain on track to bring together 30 alumni angel funders in the next two years. While aspiring entrepreneurs in the cohort can look forward to closing guidance from the alumni angel funders, alumni can also pitch for the funds and gain support in the form of mentorship and industry connections.

This is in addition to NP’s other programmes like AGILE, Pollinate, Global Entrepreneurial Internship Programme, Kickstart Fund, and Entrepreneurship First Steps, available to students and alumni.

Arming tomorrow’s entrepreneurs with the tools to do good

While funding is undoubtedly important for startups to take flight, guidance is equally crucial in forgoing the right path ahead, especially with issues like sustainability and net zero taking centre stage in the global agenda.

In other words, we must do more to breathe life into sustainopreneurship (i.e. innovation and entrepreneurship for sustainability), encouraging new players to pair their growth with green ideas that tackle issues pressing to the modern consumer, including overconsumption, carbon emissions, and waste management.

Also Read: How to make remote work more seamless and less distributed

This laid the bricks for the creation of the NP X Carousell Sustainability Lab, a dedicated incubator space brought to the fore by alumni entrepreneurs Marcus Tan and Quek Siu Rui. This three-year collaboration will give students access to Carousell’s array of innovative solutions and products, including complimentary CarouBiz (Carousell for Business) accounts and predictive artificial intelligence to drive personalised and frictionless experiences for end-users.

As part of this mentorship programme, students will get the chance to collaborate with Carousell’s specialists to re-imagine second-hand shopping experiences, develop high-recall sustainability campaigns, and use data to forecast trends and develop sustainable e-commerce strategies.

Paying it forward to build stronger startup ecosystems for the future

These new initiatives – led by our very own alumni at NP – serve as great examples of how paying it forward in the startup ecosystem can do wonders in not only protecting dreams but bringing them to life, even amidst challenging periods. Together, we can build the network needed to chart a brighter future for new leaders, fresh ideas, and sustainable growth.

Interested students and up-and-coming entrepreneurs can learn more by visiting The Sandbox page here.

–

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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit:  Canva Pro

The post How Singapore’s entrepreneur network can sow the seeds for tomorrow’s brightest stars appeared first on e27.

Registration for TOP100 is now open and we are looking forward to seeing your startup on the list!

TOP100 Program gives you the one golden chance to connect with hundreds of investors, showcase your startup at Echelon, pitch on the TOP100 stage, and access special programs. Find out what’s new in TOP100 and join here: https://bit.ly/TOP100_2023

– –

Now that Echelon Asia Summit is coming back in full swing, e27 is determined to make one of its key features, the TOP100, one of the best yet!

The TOP100 program is an annual initiative organised by e27 to showcase and recognise the most promising startups in the Asia-Pacific region.

The program is open to exciting new startups from the Asia-Pacific region with innovative ideas that break barriers across different industries. The selection of the TOP100 involves a rigorous screening process, including an evaluation of the startup’s product or service, team, market potential, and traction.

Also read: Echelon Asia Summit is back! Get to know our PR partner

The selected startups are given the opportunity to pitch their business ideas at the Echelon Asia Summit this June 14-15, 2023, at the Singapore Expo. The program also provides exposure to investors, mentors, and potential partners, enabling growth among participating startups and helping them expand their networks across the larger global tech ecosystem.

The TOP100 program has become one of the most prestigious startup competitions in the region, attracting thousands of applicants each year and providing valuable visibility and support to the most promising startups in the region.

15 startups closer to competing at this year’s TOP100

Being a frontrunner refers to startups close to making it to this year’s TOP100 program.

With all the amazing startups sprouting across the Asia-Pacific region’s vibrant tech startup ecosystem, we now present you with 15 frontrunners closer to competing at this year’s TOP100. Get to know them here!

Bizsu

Bizsu’s main solution is a patented net made of a specific ceramic that saves 25% on air-conditioning consumption on average.

It also uniformises the temperature while purifying the air, only requires a few minutes of installation, fits any air conditioning unit, and can be used continuously.

In a nutshell, Bizsu offers fast ROI and easy-to-implement solutions to reduce energy consumption for real estate, hotels, warehouses and schools.

eMobily

eMobily exist to serve the ebike and escooter community. Providing sustainable transportation in the EV industry. Under its belt, eMobily develops a technology based on micro-electric vehicle infrastructure. Such as charging and security port station for micro-mobility to organised fleets. Including developing a localised machine learning / AI geolocation sensor that can help riders and robots to pinpoint the exact location needed during making trips in large areas that are not accurately listed on their maps.

eMobily is an all-in-one-stop solution for the EV Market. It has a consortium group of specialties to solve end manufacturing, distribution, and global expansion to accelerate electrification.

GeeTest

GeeTest is the leading bot management vendor and the creator of the SlideCAPTCHA, which is the most intelligent and robust solution that frees your website, mobile apps, and APIs from malicious traffic.

For 10 years GeeTest has been focusing on the field of cybersecurity, polishing innovative products and ideas to strongly promote the development of this industry. GeeTest believes that the imminent challenges perturbing the cybersecurity landscape are the challenges between improving the quality of traffic (managing the proportion of fraud traffic) to enable companies to efficiently monetise traffic and combating the hidden and profit-driven bot threat.

Microtube Technologies Pte Ltd

Microtube Technologies is a wearable sensing technology University spin-off focusing on soft, stretchable sensing technologies that can be incorporated for fitness, gaming, healthcare and metaverse interactions. Its solution allows objective data capture using these imperceptible wearables, building a seamless integration between wearables and activity tracking in both the real and virtual or metaverse worlds.

ARIS is a wearable developed by Microtube Technologies Pte Ltd to revolutionise gym strength performance. Weighing less than 35g, it is capable of providing accurate and real-time muscle analysis and deriving more than 15 data metrics, including muscle expansion/contraction, range of motion, stability, control, consistency, fatigue level, power, speed, estimated 1 rep max, tempo, uniformity, rep count, total volume, time under tension, among others.

MOVE IT MOVE IT LIMITED

MOVE IT MOVE IT is an AI logistic platform powered by big data and AI, advocating for tech innovation in green logistics and a comprehensive property ecosystem. The platform connects clients and service suppliers, including moving firms, logistics firms, recycling firms, reselling furniture stores, etc., for residential, commercial, and event relocation purposes. Through utilising furniture detecting technology and integrated solutions, MOVE IT MOVE IT delivers data visualisation of properties’ and customers’ status.

They provide services such as a SaaS platform for B2B clients to streamline fleet management for delivery and relocation progress.

The H2 World Inc.

With more renewable energy and electrification, electrical grids are more strained and less reliable. This grid instability, Net Zero compliance, and volatile and high third-party energy costs are major challenges for customers. H2 World’s customers need to store and use energy longer-term, flexibly, and reliably, whether for powering equipment or heating or electricity.

The H2 World Inc. provides affordable turnkey hydrogen generation, storage, and energy systems — pods for homes and small businesses, and containerised packs for larger customers.

Umami Meats

At Umami Meats, they are pioneering “not caught” seafood. They are crafting delicious, nutritious, affordable cultivated ocean protein that is better for our health, our oceans, and our future.

Umami Meats is weaving together the deep wisdom of our oceans with modern innovation to develop delicious, affordable, and healthy cultivated seafood that provides a sustainable alternative to the harmful impact of traditional fishing practices. They believe that nature is our first and greatest teacher, and they are dedicated to preserving its delicate balance by thinking differently, honouring tradition, and protecting the taste of the sea.

Reachbots Automation

Reachbots Automation designs and manufactures ultra-mobile, modular robots fully capable of negotiating obstacles in hard-to-access, or even inaccessible complex, confined spaces and heights to perform mission-critical tasks (e.g. inspection, cleaning, welding) while the worker monitors it from a safe location. With their Robotics and AI, they aim to double productivity at half the cost for their customers and improve the overall safety of the operation.

Reachbots Automation’s core competencies lie in the ground-up design and development of modular autonomous mobile robotics (AMR) of both ground-based systems and climbing robot systems. Their modular and reconfigurable designs enable multiple applications to be performed, providing an end-to-end solution for their customers.

GoBike

GoBike.sg is an excellent platform for anyone looking for a convenient and eco-friendly way to get around Singapore. With its user-friendly interface and comprehensive range of services, GoBike.sg is the perfect solution for anyone looking to rent a bike or join a bike tour in Singapore. Some of the key features and benefits of GoBike.sg include a wide range of bikes, an easy rental process, affordable rates, expert guides, and an eco-friendly cycling experience.

Overall, GoBike.sg is an excellent platform for anyone looking to rent a bike or join a bike tour in Singapore. With its easy rental process, competitive rates, and expert guides, GoBike.sg is the perfect choice for both locals and tourists alike. So why wait? Visit GoBike.sg today and start exploring Singapore on two wheels!

storify.me

storify.me is a performance-driven marketplace that connects brands to influential consumers who can create authentic and beautiful content about the products they love. The platform analyses data from content on social media to predict the potential performance of a creator’s next posting and establishes fair rates.

storify.me stands for a more authentic engagement model that taps the true voice of consumers, who are also influencers of their networks, and whose recommendations other consumers can trust.

IronYun, Inc. USA

IronYun is the next-generation AI 2.0 vision and big data video search B2B platform software company. We provide enterprise customers with a real-time AI vision analytics platform for the management of safety and physical security.

The AI vision analytics are deployed in various industries including banks, corporate campuses, retail, government buildings, power plants, school campuses, public transportation, stadiums and international airports.

IronYun developed VAIDIO, the industry’s first AI hyper-converged video search, an all-In-One Software platform. Our platform, underlying technologies and solutions are the results of over 300 man-years of R&D. The breakthrough AI 2.0 video analytics include Google-like video search, intrusion detection, face recognition, license plate recognition, abnormal event detection and COVID-19 video analytics for social health applications.

Alt Atlas

Alt Atlas is developing an AI digital manufacturing platform to unlock the potential of cell cultivation. As the company has a platform technology, the Cultivated Meat market (Phase I) is bringing in the first successful cases to then serve the Biotech market (Phase II).

Alt Atlas team has more than 70 years of combined relevant experience at top universities, research institutes, multinational food and agritech corporations, and in entrepreneurship. The team developed software platforms, AI models, state-of-the-art stem cell lines (disease modelling), and built a Biotech startup in the cultivated meat field. Having a track record in the Foodtech and Biotech fields, the Alt Atlas team has insights and understands the key challenges of the industries. Based on that, they are currently designing and developing products and services with value added to their customers.

SoundEye

SoundEye is a social enterprise that employs sound recognition and depth-sensing technology to detect and prevent falls by detecting abnormal sounds. SoundEye’s solution is currently used by airports, research labs, hospitals, nursing homes, orphanages, boys’ and girls’ homes, homes for mental impairments, and many more.

SoundEye’s solution assists welfare organisations in monitoring the residents in their facilities with little effort, addressing incidents within seconds and hopefully preventing incidents from happening. To summarise everything, SoundEye hopes to bring peace of mind to stakeholders.

ERP360 (PT ERP SAAS INDONESIA)

ERP360 delivers Integrated Real Estate ERP Cloud in Indonesia, specialised for real estate developers enhanced with Automation & Business Intelligence, and at an affordable price.

Nowadays, real estate developers have challenges in collection or cashflows. They are difficult to bill when it comes to instalment payments from the customers. With ERP360’s SAAS-powered solution of automatic reminder payment, real estate developers will have an easier time because it automatically sends the message to remind the customer of the instalment payment. The message will be sent directly through WhatsApp or email. This feature helps keep track of the company’s cashflows, helping save manpower and costs.

Pandatron

Pandatron supports the adoption of digital, agile, cultural transformations by 1000s of employees with conversational AI coaching that also allows them to collect data on systemic issues.

Pandatron is riding the ChatGPT wave and building an AI coach with a long-term goal of getting closer to world peace. Mature people lead to a better world. AI coaching tackles the multi-billion dollar problem of corporate change management.

A step closer to the 2023 TOP100

After a rigorous screening process, these startups are a step closer to qualifying for this year’s TOP100.

If you are one of the founders of the startups above, a representative from e27 will be reaching out to you soon to discuss with you the next step in your application process. Feel free to get in touch with us for any inquiries.

Also read: 15 startups that are among this year’s frontrunners for TOP100

If you have an exciting startup with innovative ideas that can eclipse the best and the brightest in the region, join the 2023 TOP100 and stand a chance to pitch your ideas to some of the top investors in the Asia-Pacific at this year’s Echelon Asia Summit. Register for TOP100 here.

The post Check out these 15 startups closer to conquering the 2023 TOP100 appeared first on e27.

Ever since its entry to Southeast Asia (SEA) through its launch in Singapore a few years ago, SeedLegals has made some exciting milestones in the country.

In a conversation with e27, Hsiang Low, Head of Asia-Pacific, SeedLegals, explains the company’s recent participation in the IMDA SPARK Programme and how it has helped in their expansion into Singapore.

“Last year, SeedLegals was onboarded into the SPARK Programme. It means we have that endorsement from IMDA that we are one of the companies that it recognised. That enables us to service the startups that are within the community,” he explains.

Originating from the UK, SeedLegals is a one-stop platform to help founders handle all the legal matters involved in building a company, from securing an investment to building a team. In addition to providing the templates for the legal documents that founders might need, they also have access to the data, educational content, and networking that they need to grow their company.

Run by a team of 150 people, outside of its home country, the company is now operating in Singapore, Hong Kong, France and Ireland. It said it has onboarded 50,000 companies and 10,000 investors in the platform.

In his recent visit to Singapore, Anthony Rose, Founder & CEO, SeedLegals, explains to e27 the key learnings that the company found regarding the differences between its users in Singapore and the UK.

Also Read: Why SEA’s startup ecosystem is making a strong case for legaltech

“In the UK, there are fantastic government tax advantages for angel investors, but there are no government programmes for startups. So, you find founders are very scrappy. To find angel investors, there’s nothing to help them get started themselves. So they learn very quickly how to find angel investors and close the investment very quickly,” he says.

Meanwhile, in Singapore, things are a bit different, according to the CEO.

“There are many generous government programmes from the S$50,000 programme to the S$250,000 programme, but afterwards, there is not the same tax incentive for investors. What I found in Singapore is that companies get started with the government programmes, which are fantastic, and when they get out of those programmes, then there’s [this nuance like] leaving home suddenly, and you have to fend for yourself. There’s a bit of learning,” Rose explains.

“So, there’s a gap between government grants and readiness for a VC [funding]. And that’s exactly the space that SeedLegals fills because it helps those founders find angel investors which are the necessary next step,” he continues.

Rose stresses the gap between startup grants and VC funding that can be filled by angel investors, but he sees that in Singapore, finding an angel investor is not that easy. “I think that space in Singapore is underdeveloped compared to the UK.”

The differences between their UK- and Singapore-based users also lie in the verticals that they are working on: their users in Singapore tend to work on deep tech due to the strong government support in the sector.

Also Read: Justika nets seed funding to connect people who need legal services to lawyers in Indonesia

Helping startups go through tough times

Today, the SEA startup ecosystem is facing what is known as the tech funding winter. We ask SeedLegals if this is affecting their clients and how they are using the company’s services.

Rose begins by stating he would like to take a contrarian point of view that today is a “bad time” to fundraise.

“Firstly, if you’ve got some mission in mind, such as making some new device, then you either going to work out how to get the funding, or you have to give up on your idea and put it on hold. But that’s not really an option. So what you need to do is adapt,” he says.

He goes on to explain the concept of “agile fundraising” that SeedLegals says it has enabled.

“Once upon a time, I was going to hire 10 people. I need to raise like one and a half million dollars … but that’s really difficult. So, instead of having to do a funding round every 12 to 18 months, and spend ages looking for investors … with the tools that we have on SeedLegals, you can raise smaller amounts more frequently,” he says.

“[Founders] think that they have to wait for another four months to find all the other investors. But then after talking with them and actually showing them that you can just get the smaller amounts, and use that to hire developers to build the product … when you have more traction, you can go later. So fundraising has been transformed.”

Also Read: Meet the 2 SEA startups joining Allens’s legaltech accelerator

“We found that in the UK, there is now more money raised outside of the funding round than in a funding round. We’ve really pioneered that over the last four years. That is an inversion of the way startups raise. I see the same happening in Singapore thanks to the tools and platform that we provide.”

For the year 2023, the company is looking forward to further developing its tools for investors.

“The key part of our next set of things is to connect founders and investors, to make it easier for investors to find great companies to invest in, and for founders to find investors. So that’s one of the key things that we’re all working on,” he closes.

—

Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

Image Credit: SeedLegals

The post How SeedLegals plans to win SEA market by helping founders sort out their legal documents appeared first on e27.

An ex-customer of B2B CRM platform Gimmie.io approached founders Liyana Sulaiman and David Ng, seeking their help liquidating excess inventory in its Singapore-based stores.

During that liquidation process, the duo realised the excess inventory problem was more extensive than they thought.

And that motivated them to launch Pollen in 2022.

Pollen is a private B2B liquidation marketplace incorporated in Singapore, Malaysia, and Indonesia. It connects manufacturers with companies looking to acquire slow-moving, obsolete and near-expiry products (SLOBs) at low cost. Its cloud-based inventory liquidation management system (LMS) connects multiple liquidation channels, including a B2B marketplace, a B2C marketplace, and donation partners. 

The LMS enables brands to list inventory for liquidation and view and accept offers quickly. Lots for liquidation will appear on Pollen’s private marketplace. These lots will be visible to ‘Pollen Pass’ members, who can make offers for listings.

Focusing on brands with a global appeal

The startup focuses on manufacturers with local production of FMCG products (mainly hair care, dry food, makeup, and home). It doesn’t accept tobacco and tobacco-related items, alcohol, and medicine.

“We wanted to focus on categories and brands with a global appeal because to reduce the world’s business waste from this excess inventory going to landfills, we had to tackle the hardest challenge in liquidation, which is aligning with sellers on the fair market value of depreciating products with overseas buyers,” Ng explains.

Pollen caters to two types of buyers: 1) traditional businesses involved in import/export, distributors, wholesalers and offline retailers/discounters, and 2) tech-enabled B2B or B2C marketplaces or reseller networks, which usually consolidate many small orders into one. 

Also Read: How to incorporate sustainability into corporate strategies

Ng says Pollen has buyers from over 20 countries, and many of its orders are cross-border.

It works with several brands and manufacturers across Southeast Asia, including Unilever and Lorealand. The primary focus is Indonesia and Thailand. 

It is expanding into India. The firm also works with some new sellers in Japan, Europe, and the US.

Lack actionable data

According to Ng, brands and manufacturers in Asia are stuck with unsold inventory and reluctant to liquidate because they lack actionable data. “In almost all emerging markets, goods price depreciation varies widely on many factors, such as domestic resale vs export and other variables on the products offered. However, the fair market price of a near-expiry product can widely vary as it gets closer to its expiry date.”

“Because traditional channels tend to be offline, transparent data is lacking to set the right expectation around fair market value. Therefore, when decisions to liquidate are made, they are largely reactive, and this lack of a proactive plan based on data leads to an increase in potential waste,” Ng shares.

Pollen’s global recovery rate data set, Pollen SLOB Index, solves this. “This will give transparency to our customers on how much of their cost they can get back for either domestic or global liquidation. We’ve seen this increase in conversion and sell-through of our customer’s items by 5x in the first year, and we have many more optimisations and new data sets to make it even better,” Ng claims.

Pollen works only with the principal brand owners, so the authenticity of the products is verified, he says. In addition, buyers get added security by having actual photos of the batches of products and real product photos showing their condition and can inspect the collection.

The company claims to have liquidated over 400,000kg of inventory in 2022 and has helped brands liquidate 200,000kg of goods in 2023 alone.

Eliminating the middle-men

According to Ng, the startup eliminates the middlemen/brokers, who could damage the brand reputation if they illegally resell SLOB to markets that are not allowed. 

“Unlike brokers and intermediaries who hide the final destination of where products go, Pollen enables full transparency before and after each order, so sellers can ensure that goods are resold in the intended markets. If not, there is a digital audit trail. Because we track this distance from the origin to the destination and have all the product weight and volume information, we can also provide transparency on the sustainability impact when these goods get sold (or unsold and disposed of),” he elaborates.

So far, Pollen has raised two rounds of funding from undisclosed angel investors, syndicates, and family offices, mainly in SEA. It is now raising its first equity round with interest in the region and globally.

In Southeast Asia, B2C platforms like Humble are expanding into B2B in the Philippines. Then there is Zaapko in Indonesia, which is trying to use existing liquidation marketplace models of publically selling in a single market like those in the US, Liquidation.com, and B-Stock Solutions.

“Our goal is to live in a zero-waste world, ensuring sustainable liquidation becomes the de facto way brands and manufacturers globally deal with their unsold inventory.”

—

©amlanmathur/123RF.COM

The post Singaporean startup Pollen can liquidate slow-moving, near-expiry FMCG items sustainably appeared first on e27.