SG-based firms stepped up tech acquisitions in rest of SEA in 2022
According to DealStreetAsia, such tech acquisitions witnessed a 166% surge from 12 in 2021 to 32 in 2022; About 62.5% of the targets were Indonesian firms, mainly from fintech and financial services sectors.

Prenetics announces US$200M JV for early cancer detection
The joint venture Insighta with Dennis Lo, an expert in non-invasive prenatal testing and liquid biopsy, aims to develop and commercialise a breakthrough early detection screening test for several types of cancer.

Singapore-based Apeiron bags US$37M in debt funding
Apeiron collects various types of food and agricultural waste – including used cooking oil, tallow, and palm oil mill effluent – and converts them into biodiesel.

UTU raises US$33M to help travellers get more from tax-free shopping
It has also acquired CardsPal, a Singapore-based fintech that offers deals and promotions nearby to users; Utu’s goal is to create innovation in the tax-free shopping sector, which allows tourists to reclaim VAT on their purchases.

Byju’s assures investors of FY 2022 earnings audit by September
The Indian edutech unicorn previously filed its financial statements for FY 2021 in September 2022; Last week, Byju’s auditor Deloitte resigned due to long delays in completing its FY 2022 financials.

Amazon plans to invest another US$15B in India by 2030
The e-commerce group has invested about US$11B in India to date; The vast majority of the new capital is likely earmarked for AWS expansion in India.

Ant Group expands Alipay+ to all 7-Eleven stores in Malaysia
The integration, which was facilitated by Razer Merchant Services, allows the 2,400 7-Eleven stores in Malaysia to accept AlipayHK, GCash, Kakao Pay, and TrueMoney as payment options.

GoTo-backed Electrum to manufacture 250K e-bikes annually
It is constructing a factory in the West Java province to manufacture two-wheel EVs in Indonesia; These collaborations involve efforts in battery packaging and production, EV adoption, and battery swapping.

Alt-protein firm Green Rebel readies to serve the Philippines, Vietnam
The meat consumption in those markets has been relatively higher than in the rest of the region; People are willing to shift to plant-based meats if the quality is on par and affordable.

‘Starting with a clear culture in mind is a vital for companies’
Finhay CEO Huy Nghiem says short-term financial stability is as important as long-term goals; If we cannot meet the former, we can’t meet the long-term goal either.

How Salmon promotes financial inclusion with AI banking in PH
In its first year since launching, Salmon has achieved significant milestones, including launching its first point-of-sale lending product.

Solarad.ai can forecast accurate energy generation for solar plants
Solarad.ai’s software continuously updates the forecasts to account for real-time weather conditions and fine-tune the accuracy of the predictions.

The future of gamification: Connecting brands with consumers through games
Gamification solutions will bear greater resemblance to mobile games in which consumers can earn rewards through a curated process.

UK implements stricter rules: Crypto airdrops and dree NFTs banned
The UK concluded a consultation on new rules for the crypto sector and proposed an authorisation regime overseen by the FCA.

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Baskit, a startup that focuses on digitalising and growing distribution businesses in Indonesia’s supply chains, today announced that it had raised US$3.3 million in seed funding.

The funding round comes from Betatron Venture Group, Forge Ventures, Investible, 1982 Ventures, DS/X Orvel, Michael Sampoerna, and other prominent global and regional angels.

It followed a US$1.5 million pre-seed funding round that Baskit announced in March.

With the fresh funding, the company plans to accelerate expansion for proven revenue streams while doubling down on its technology stack and leveraging resources to strike numerous important contracts with brand principals and manufacturers.

“We aspire to build a platform that orchestrates all of the relevant players in the supply chain, generating economic gain and ultimately benefiting consumers. To do this, we have a razor-sharp focus on building superior tech that wins in functionality and usability for the SMEs we support,” Baskit CEO Yann Schuermans said in a press statement.

Also Read: Echelon: Breaking barriers in Southeast Asia’s supply chain

“With the raised funds, we will accelerate both our tech roadmap and city-by-city expansion, continuously embedding flexibility into our platform to cater to Indonesia’s vast and diverse landscape.”

How Baskit drives growth to a new height

Launched in November 2022, Baskit said that it had seen rapid growth since its inception, sustaining growth rates of more than 70 per cent month-on-month during the period.

In an email interview with e27, Schuermans explained the keys behind this achievement.

“Growth comes from a carefully executed go-to-market in regions that needed our solutions the most. We used local relationships and referrals to drive quick adoption and an efficient acquisition process, and have been able to effectively monetise our software, revenue-share initiatives (we take a cut if our customers grow), and signed lucrative contracts with lenders and manufacturers who want to access our wholesalers.”

He also shared the user acquisition strategy that Baskit is implementing: “Acquisition strategy is a very localised one; we play city by city and ensure that we build critical mass in each one of the areas we operate in. We’ve been very focused on West Java, particularly Greater Bandung Area, for now, and will be expanding to Greater Jakarta Area and Central Java in H2 2023.”

According to the company, the rapid expansion is reflective of a real need in the market for strengthening the operations of distributors and wholesalers.

These two players are now facing increasing competitive and fiscal pressures in the aftermath of COVID-19.

Also Read: Logistics platform for e-commerce merchants Jumppoint raises US$6.5M

This “new normal” involves high awareness but low access to tech, thinning margins and additional operational complexity from rampant inflation, and declining sales from softness in certain sectors. Baskit believes that the timing is conducive for them to support across these areas.

Schuermans said, “Collectively, trade and industry account for more than half of Indonesia’s GDP and are supported by more than 200,000 traditional distribution businesses that ensure that people can access a wide array of products, from biscuits to cement for construction.”

“While it is fashionable to disintermediate these businesses, it is not sustainable as they hold valuable infrastructure and relationships. We are deeply committed to supporting these intermediaries in their pursuits of powering their local communities and believe that doing so will yield tremendous economic benefits in the long run.”

This year, there are three things that Baskit wants to focus on: Expansion into the aforementioned areas; product improvements, particularly around its SaaS product and data product capabilities; and expansion of the number of lucrative contracts to build a solid foundation for profitability into 2024.

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The rapid growth and investment in generative AI have sparked a race among startups to leverage this technology and build AI-native applications. In Q1 of 2023 alone, US$1.7 billion was invested in 46 generative AI companies. However, in the midst of this excitement, it is crucial for these startups to consider the long-term viability and competitiveness of their products.

As we reflect on the transition from the introduction of horizontal cloud software in the early-2000s to the emergence of industry-specific cloud software in the late-2000s, it becomes clear that specialised startups hold immense value.

Building defensibility

We see a few key considerations to think deeply about as startups think about how to build defensibility vis-a-vis the models and potential incumbents coming in. To avoid getting commoditised, there are two critical questions: does the startup provide enough value on top of the model layer? And on what basis does a startup develop its moat?

One of the fundamental considerations for startups is to assess whether they offer enough value on top of the model layer to avoid being commoditised by it. While generative AI models provide a strong foundation, startups must focus on incorporating AI value through prompt engineering and fine-tuning specific to their use cases.

However, it is equally important to evaluate whether the value provided by the startup will remain significant as models continue to improve. Startups should strive to go beyond the capabilities of the underlying models and offer unique features, insights, or services that differentiate them from competitors.

Incorporating private data and customer context into the generative AI model is a powerful way for startups to improve the quality and relevance of their outputs. By leveraging proprietary data sources and understanding customer needs deeply, startups can enhance the accuracy, personalisation, and value of their AI solutions.

Also Read: Solarad.ai can forecast accurate energy generation for solar plants, battery storage

AI’s value will be most powerful when tightly focused, so startups should aim to accumulate proprietary data. This strategy enables startups to create a competitive advantage that is difficult for incumbents or generic AI models to replicate.

The age of generative AI

In the current landscape, generative AI applications are following a trajectory akin to early cloud companies, albeit with a crucial distinction. Unlike the cloud era, where startups like Salesforce, Workday, and ServiceNow emerged as ground-up pioneers, the underlying technology of generative AI now closely aligns with industry giants such as Microsoft, Google, and Meta.

Moreover, with the advent of APIs and open-source models, the adoption of generative AI technology has become markedly more accessible, fostering an environment conducive to both incumbents and startups. Consequently, as these major players dominate the broad horizontal applications, startups must recalibrate their focus toward specific domains with narrow contexts.

To maximise the value of generative AI, startups should consider the optimal insertion point for their product within existing workflows. This requires understanding the pain points, inefficiencies, or opportunities where AI can make the most significant impact. By going deep into specific workflows, startups can minimise disruptions while unlocking the full potential of AI.

In the age of generative AI, the stronger your context window, the wiser your model and product. Founders need to have a deliberate emphasis on the emerging technical capabilities of generative AI, accompanied by a relentless pursuit of identifying functions or vertical problems that stand to benefit from their unique insights.

We’re at an inflexion point. Startups must learn from past platform shifts and understand the importance of narrowing their focus and leveraging proprietary data to create defensible businesses.

By providing value beyond the model layer, incorporating private data, going beyond incumbents, and finding the right insertion point, startups can build specialised AI applications that deliver superior outcomes for customers. In the era of generative AI, specialised software holds the key to success.

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In October 2020, Vitalik Buterin shared his thoughts about a ‘rollup-centric roadmap’ for Ethereum. Looking at projects emerging at the time — Optimism, Arbitrum, zkSync, etc.— he wrote: “The Ethereum ecosystem is likely to be all-in on rollups (plus some plasma and channels) as a scaling strategy for the near and mid-term future.”

Buterin’s prodigious vision has become a reality due to the synergistic relationship between Layer-2 Rollups and Eth2’s enhanced data availability. Rollups are the Holy Grail of Ethereum scalability, potentially solving the scalability trilemma — i.e., blockchains must compromise security or decentralization to achieve scalability. 

Two types of Rollups are currently very common: Optimistic and Zero-Knowledge (ZK). But while both methods contribute significantly to Ethereum’s scalability, they have considerable limitations. Therefore, emerging ‘Smart L2’ platforms like Metis innovate ‘Hybrid Rollups’ that combine security and scalability while fostering decentralization. 

Experts at Metis, such as Co-Founder and CTO Yuan Su, have found that combining the fast finality of ZK Rollups and the transcendental scalability of Optimistic Rollups enables developer-friendly and secure Ethereum Layer-2 solutions. This is much needed for Web3’s sustainable and long-term adoption. 

The case for L2 Rollups

While Bitcoin lays the foundation for an alternative, censorship-resistant, peer-to-peer money, Ethereum’s primary purpose is facilitating decentralized computation. The latter has an immense scope, especially as it provides a user-centric and community-oriented infrastructure for Web3. 

However, Ethereum—or any other decentralized computing platform, for that matter — must be scalable to fulfil its role efficiently. It has to process thousands of transactions per second securely. Otherwise, DeFi applications, for instance, can’t compete with their Web2 counterparts like VISA.

On the contrary, Ethereum, like most other Layer-1 blockchains, currently has severe scalability limitations. The network clogs up due to traffic surges, as happened with Cryptokitties in 2017, DeFi in 2020, and NFTs in 2021. Congestion spikes gas fees, making Ethereum practically unusable for most users. This is a tremendous hurdle to mass adoption both for Ethereum and Web3. 

Ethereum’s recent transition to a Proof-of-Stake (PoS) consensus model — i.e., The Merge — is said to “set the stage for further scalability upgrades not possible under proof-of-work”. But these ‘upgrades’ cannot happen on Layer-1, for most parts, due to consequent security concerns. 

Also Read: The Merge is coming, but will it help Ethereum dominate the world?

Moreover, PoS doesn’t ensure scalability by itself. It requires implementing specific solutions like Sidechains, Plasma Chains, Channels, Validiums, and L2 Rollups. Among these alternatives, Rollups can leverage the underlying L1’s security effectively while increasing transaction speed and throughput at a much lower cost.

How do Optimistic and ZK Rollups work?

Generally, Rollups are smart contracts that relay transaction data and other information between L1s and L2s. The computation happens off-chain—i.e., on the L2—while the L1 only records and stores the hash or cryptographic address for completed transactions. 

L2 Rollups work by ‘rolling up’ or batching multiple transactions into a single block before sending them to the L1 for finalization. This reduces the burden on L1s, helping blockchains like Ethereum scale from roughly 15 TPS to 1000-4000 TPS. It also optimizes gas fees and lowers the overall costs for end-users, even during peak traffic. 

Optimistic and ZK Rollups adopt the core principle of relaying only critical, rolled-up smart contract data to the L1. However, they have key differences in their approach to validity and finality and the types of ‘proofs’ they use. 

As their name suggests, Optimistic Rollups assume all L2 transactions are valid unless someone challenges them. The process requires L1 nodes to submit ‘Fraud Proofs’ for potentially invalid transactions within a fixed timeframe. Unchallenged transactions are finalized when this window expires.

Most Optimistic Rollups, including Optimism and Arbitrum, are EVM-compatible, general-purpose smart contracts. According to Chris Dixon and Arianna Simpson of Andreessen Horowitz (a16z), “…this close adherence to Ethereum development paradigms results in a very easy transition for developers, wallets, and users: no new programming languages, minimal code changes to existing contracts required, and out-of-the-box support for the majority of existing Ethereum tooling.” 

ZK Rollups, on the other hand, adopt a more adversarial approach. Instead of assuming L2 transactions as valid, they use Zero-Knowledge Succinct Non-Interactive Argument of Knowledge or zkSNARK-based ‘Validity Proofs’ while publishing them on the L1. This method doesn’t require any challenge window and can achieve near-instant finality. It thus reduces the withdrawal time from days to hours, besides ensuring superior data privacy and integrity.

Also Read: The growing adoption of Ethereum in emerging markets

L2 challenges and the need for hybrid Rollups

Optimistic and ZK Rollups go a long way in scaling Ethereum, but they have limitations. For instance, there’s no guarantee that vigilant L1 nodes will successfully produce fraud proofs to refute invalid transactions published by Optimistic Rollups.

As for ZK Rollups, the development process is still highly complicated for most Web3 developers, which increases the scope for error and hampers contract-level security. Moreover, most existing ZK Rollups have difficulty achieving EVM compatibility, which restricts their accessibility. 

However, while Optimistic and ZK Rollups are still restricted in their individual capabilities, innovators like Yuan Su argue that the two approaches ‘can coexist and be unified’ to unlock their full potential. Further research has revealed the possibility of utilizing Optimism’s Cannon framework to integrate MIPS with ZK Proofs for effective EVM equivalence.

Innovating zkMIPS resolves the interoperability crisis facing ZK Rollups. It also eases the development process, enhancing accessibility for Web3 developers and project owners. But even besides that, the framework for Hybrid Rollups adapts a unique Optimistic Data Availability approach. 

During his talk at Devconnect AMS, Yuan explained Optimistic Data Availability as a method where it’s optimistically assumed that sequencers will make the data available for verification when required. This enables on-demand rollups which don’t have to roll up to the entire L1 data set all the time, drastically reducing availability costs and latency.

Given the capabilities discussed, Hybrid Rollups can arguably take Ethereum scalability to the next paradigm. Furthermore, open-source innovation and the consequent network effects can inspire other L1s to adopt Hybrid Rollups or similar solutions, ultimately making Web3 more scalable and cost-efficient.

Finally, as Web3 becomes faster, cheaper, and safer, it’ll be more relevant for diverse business cases and applications. This is the key to boosting adoption in the long run and in a sustainable manner. That’s the horizon for L2 Rollups, which can extend further with progressive innovation.

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With 1.7 billion people around the world unbanked or underbanked, there is still much to do to bring the underserved into the financial mainstream. Access to finance and the formal economy can unleash economic opportunities and raise standards of living for the underserved.

This is especially true in Southeast Asia. According to the World Economic Forum, six in 10 people in this region are unbanked or underbanked today. In Vietnam, it’s as many as seven in 10.

AI is transforming industries at a rapid pace, and Southeast Asia’s consumer finance landscape is no exception. By speeding up data collection and analysis, these technologies enable quicker pre-lending assessments and lending procedures. Lenders benefit from enhanced efficient risk management and streamlined processes and can now serve customers who were previously unbankable due to a lack of credit history.

However, there are two drawbacks to AI that have to be carefully considered.

First, automated processes can speed up decision-making and enable access to finance but are not perfect solutions. For example, AI assumes a borrower’s creditworthiness on standardised characteristics, which can exclude borrowers that don’t always fit, especially when you’re credit invisible. If the data sets used to train the AI system are biased, it may also lead to skewed processes that may treat prospects and borrowers unfairly.

Secondly, technological advancements have also led to a surge in unregulated lenders. Indonesia had around 150 registered P2P lenders before President Joko Widodo ordered a moratorium on permits for fintech lenders in 2021 to clean up the sector.

The Reserve Bank of India found that more than 600 of the 1,100 digital lending applications operational between January 2020 and February 2021 were unregistered and illegal, which unnecessarily hinders the progress of financial inclusion.

There are two key principles lenders should consider increasing more safely and sustainably to ensure the development of the sector: responsibility and financial literacy.

Responsible lending practices

To achieve financial inclusion, we need to ensure the consumer finance industry is properly regulated and doesn’t harm populations already at risk. Without government oversight, predatory lenders may intentionally introduce products with unfavourable terms and engage in deceptive and coercive practices.

These could include providing misleading information about terms and conditions, exorbitant hidden fees and penalties, or illegal and unethical debt collection tactics, such as harvesting data from phones to harass debtors when they are unable to repay their loans.

Also Read: How Salmon aims to promote financial inclusion with AI banking in the Philippines

People with limited financial knowledge are most likely to fall into these traps, perpetuating a vicious financial cycle and creating further financial distress for these vulnerable populations.

Unregulated lenders also exploit AI to speed up the lending process, giving less time for borrowers to make informed decisions and making them more susceptible to debt traps. Automated processes reduce transparency in application processing, making it harder to detect discrimination or predatory lending targeting specific groups.

As technology and the economy evolve, consumers need even better protection from the growing array of complex financial products. That’s why government oversight is needed.

Regulated financial services can offer access to sustainable and responsible credit products in ways that can be supercharged by AI. For example, combining AI with traditional credit bureau data helps lenders to balance risks and maximise financial inclusivity, ensuring loans are offered responsibly based on repayment capabilities.

Home Credit has embraced this type of lending model – for instance, 42 per cent of its customers in 2022 were first-time borrowers using regulated financial services for the first time. This was a 19 per cent increase from 2021.

Responsible lenders can also offer consumer protection services, like payment holidays or repayment insurance, shielding customers from credit risks. For example, Home Credit provided 2.2 million customers with the option of paid holidays and deferred payments during the peak of the Covid-19 crisis in 2021.

Many companies in the region now offer cooling-off periods, allowing people to cancel loans free of charge. This allows borrowers time to properly consider their decisions and facilitates informed decision-making.

As Southeast Asian markets mature, regulated lenders can expand their offerings to include a wider array of financial products, such as insurance. Life insurance penetration in emerging Asia Pacific markets rose to 2.4 per cent in 2021 but still lagged substantially behind developed Asia Pacific markets (8.4 per cent). Regulated lenders have the advantage of existing customer relationships and data and can offer accessible, personalised insurance products tailored to individual needs.

For example, Home Credit now partners with more than 20 insurance providers, offering various solutions to customers that range from life insurance to accident insurance for mobile phones. These broader offerings help clients better manage their financial health, supporting them in enhancing living standards and financial security in the long run.

Financial literacy

Educating customers and prospects on the vast array of financial products and services available as well as basic financial management principles is also essential, as this knowledge in making better financial decisions beyond our relationship with them.

Also Read: How affable.ai aims to dive deeper into GenAI with its new magic search feature

Consumer finance firms needn’t limit themselves to educating or working with existing customers even though Home Credit serves around 140 million customers around the world and has reached 225 million people globally in 2022 through financial literacy activities.

Financial literacy activities can take the form of publicity campaigns through popular mediums, such as radio or social media, direct community workshops and consumer-facing campaigns. While a significant investment, consumer lenders can reach new markets, build a stronger brand and enable inclusion, improving the long-term well-being of customers.

Consumer finance players can also better enable societal development and inclusion by focusing financial literacy efforts in particular ways. For instance, research shows that women generally have reduced access to formal financial services than men.

They also have specific financial literacy needs, as they tend to live longer and earn less than men, according to an OECD study. Through programmes tailored to improve women’s financial literacy, lenders can potentially increase their economic participation, promoting gender equity and making an impact on individual women, their families, and the wider society.

Digital literacy is also a crucial component, as many of the financial transactions are now processed online. It is also a big factor contributing to customer protection in this digital age. An Asian Development Bank Institute research study shows that digital literacy has significant positive effects on saving and borrowing as well as risk management behaviours. The crucial point is that despite the rise of AI and its enormous capabilities, a human approach to financial inclusion is more important than ever.

According to a PwC study on digital pathways to financial inclusion, AI could have a transformative impact on the lending business. They estimate that a 15 to 30 per cent rise in AI-facilitated credit approvals could take place with no impact on loss rates for lenders. Despite the genuine promise that new technology offers in this space, financial literacy and broader inclusion efforts cannot be ignored.

As technology transformation accelerates changes in multiple industries, the financial services sector cannot lose sight of the critical goal of empowerment and inclusion of communities.

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On my first Echelon in 2019, I had the wonderful opportunity to speak about cybersecurity in one of the Echelon stages. Along with my AntiHACK.me co-founder, Dexter Ng, we gave a series of live demos on how easy it was for hackers to scam potential victims with only an email address or a phone number.

Fast forward four years, and we’re back as exhibitors in Echelon. This time, we represent our cybersecurity and data protection firm, Privacy Ninja. It was a great experience to physically mingle with the startup community again!

Having witnessed the ebb and flow of startup businesses over the years, my recent experience at Echelon reinforced one unwavering truth: cybersecurity remains as crucial as ever in an increasingly advanced threat landscape.

Businesses acknowledge the need for cybersecurity, but they don’t know where to start

The consensus of the young business owners I spoke with echoed throughout the event. This, is despite the well-documented rise of industry-shattering hacks and the escalating numbers associated with such incidents. In light of this reality, businesses and startups have become acutely aware of the perils they face and the critical need for cybersecurity measures to avoid falling victim, as countless others have done before them.

However, many find themselves at a loss as to where to start. At Privacy Ninja, we emphasise that one of the keys to business success lies in a proactive approach to addressing cybersecurity concerns. By adopting this approach right from day one, organisations can ensure comprehensive protection at every juncture, leaving no room for exploitation or compromise.

Outsourcing to experts for effective cybersecurity

To address the challenges faced by businesses, seeking the assistance of cybersecurity experts is a strategic choice. When it comes to effectively navigating the complex landscape of cybersecurity, outsourcing to experts offers numerous advantages.

Also Read: Time to elevate the CFO’s stake in cybersecurity

For instance, when young startups engage the services of a trusted and CSA-licensed VAPT provider like Privacy Ninja, they gain access to a wealth of knowledge and expertise. This enables them to quickly address queries and concerns regarding pen testing activities, including frequency and timing. We also value-add by guiding businesses on the specific exercise that will satisfy their requirements.

Additionally, outsourcing to experts offers numerous advantages, allowing startups to harness specialised knowledge and experience while avoiding resource-intensive endeavours. Building an in-house team of Data Protection Officers (DPOs) and penetration testers, for instance, requires significant time, training, cost, and practice before these individuals can effectively contribute. Moreover, investing substantial resources in training comes with the risk of trained professionals leaving the company, resulting in a loss.

Finally, outsourcing to third-party service providers provides the added benefit of cost-effectiveness. Privacy Ninja, for example, provides a price-beat guarantee, understanding the financial constraints that startups face, particularly when focused on revenue generation.

Having once been a startup ourselves, we appreciate the importance of maintaining a healthy cash flow while ensuring top-notch cybersecurity measures are in place. By partnering with service providers, startups can secure their digital defences without breaking the bank.

Prioritising cybersecurity from day one of business planning

With funding and achieving MVP taking centre stage (and nothing wrong with these), cybersecurity is often put on the back burner. Organisations must establish a solid foundation for protecting all aspects of their entity, especially the proper management of the personal data it manages.

Also Read: The future of cybersecurity: A plan to fill the workforce gap and protect the world

When cybersecurity is treated as an afterthought, it may result in uncovered and unprotected areas of concern, leading to organisational consequences. In Singapore, the consequences may include a hefty financial penalty of up to US$1,000,000 (a significant burden for small enterprises and startups), business disruption, reputation damage, and loss of potential clients and customers due to credibility issues regarding sensitive information.

In a recent case involving Fortytwo, the breach could have been prevented if only the e-furniture company had conducted a vulnerability assessment and penetration testing on its e-commerce website to properly determine the severity of the existing vulnerabilities, which they decided not to patch, eventually leading to exploitation by malicious threat actors.

The same fate was also suffered by Vhive when it fell prey to a preventable ransomware attack. With this, rather than considering cybersecurity as an afterthought, prioritising it can save organisations the trouble of going through the consequences.

In an ever-evolving threat landscape, the importance of cybersecurity for startups cannot be overstated. Given the ever-evolving threat landscape, cybersecurity holds paramount importance for startups, demanding proactive measures from day one. 

As the startup community, including exhibitors like us, are relishing the post-Echelon high, here’s my advice to startups out there: don’t delay, prioritise cybersecurity from day one to protect your business and ensure long-term success. Take proactive steps today to safeguard against potential threats and secure the future of your business.

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Malaysia-based iMotorbike, an e-commerce platform for preowned motorcycles, has raised RM12 million (US$2.6 million) in a Series A funding round led by Gobi Partners and Ondine Capital.

Penjana Kapital, The Hive Southeast Asia, 500 Global, SOSV’s Orbit Startup, Goodwater Capital, Seedstar Capital, Permodalan Negeri Selangor Berhad (PNSB), and other undisclosed institutional VCs also joined.

The funds will be used to strengthen its operations in Malaysia and Vietnam, besides investing in technology and talent.

iMotorbike has secured US$4.2 million since its pre-seed funding round.

Founded by Gil Carmo and Sharmeen Looi, iMotorbike enables users to buy and sell preowned motorcycles. With connections of 5,000 dealers across Malaysia and Vietnam, it also provides financing options, insurance and road tax. In 2022, the firm generated over 2,500 transactions with over US$3.5 million in total revenue.

Also Read: Is there a sudden slowdown of the pace of digital transformation globally?

iMotorbike has 170 inspection points, six days return, six months warranty, countrywide delivery and a bundle of finance, road tax and insurance.

CEO Gil Carmo said: “This infusion of capital will be instrumental in fueling the next growth phase for the company as we spearhead the transition towards a circular economy in the two-wheeler market. We will expand our efforts to promote sustainability, create a robust ecosystem for the reusing of motorbikes, parts and accessories to reshape the future of mobility.”

Gobi Partners Co-Founder and chairperson Thomas Tsao said: “In Malaysia alone, there are 1:1 motorcycles for every car, and this ratio increases to 6.5X in Indonesia and a staggering 14.2x in Vietnam. This represents a combined market size of 216 million motorcycles which iMotorbike is poised to tap into.”

With rising inflation and higher cost of living amid surging fuel prices, iMotorbike expects to see more people turning to motorcycles as a mode of transportation and generating income.

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Southeast Asia’s thriving digital economy is priming for huge innovation in the payment services ecosystem. Across the region, everything from payment apps to wallets and even digitised national currencies are at play.

However, SEA’s payments ecosystem remains hampered by a chronic lack of interoperability between different platforms. Because how can you use one payment method when it remains completely cut off from any other?

The absence of interoperability has created a huge missed opportunity for the financial technology (fintech) industry. SEA’s burgeoning consumer base is expected to reach 623 million people by 2030. The region’s digital economy reached a US$200 billion gross merchandise value in 2022.

In addition, digital finance is the top investment sector in SEA, and the segment is projected to reach US$226.60 billion this year. These are big numbers indeed: but they could be so much more.

Unfortunately, SEA’s size and diversity mean there is a complete lack of uniform regulations. There is neither a common currency nor a consistent economic agenda within SEA, which makes it difficult to integrate payments across the region.

Similar to other large regional markets like Latin America, the banking and financial infrastructure in many SEA countries is outdated and fragmented, and the legislative framework does not support most cross-border and e-commerce business models.

Although the answer could be to simply launch local subsidiaries in new growth markets, this can be cost-effective and risky for payment firms.

Differing habits, but the same goals

At the moment, e-commerce is one of the biggest driving forces behind SEA’s digital economy, with its growth rate of 22 per cent spurring the region towards US$230 billion in GMV by 2026. Cash wallets and super apps are predicted to grow more than fivefold to exceed US$114 billion by 2025. Retailers, such as Singapore’s Cheers, are even developing their own apps to link customers’ shopping carts to their wallets. 

Also Read: Breaking the cycle: How Paywatch grows your business while taking care of your employees

However, creating a seamless and efficient ecosystem across SEA is challenging. First, payment habits differ dramatically from country to country. While the European Union (EU) has successfully built a single economic market, the correlating Association of Southeast Asian Nations (ASEAN) has a highly fragmented payments landscape. 

In Indonesia, e-wallets are booming, with transaction values rising by over 200 per cent in 2019. Malaysians tend to prefer payments made through bank transfer apps, as well as e-wallets. Cash remains king for Filipinos, even in online transactions. Vietnam, lastly, shows a tendency towards credit cards, as well as playing home to dozens of licensed non-bank payment service providers.

Nevertheless, there are clear moves towards improving interoperability. As recently as March 2023, Singapore and Malaysia announced the launch of a new QR code payment code link for Nets and DuitNow users, which will enable cross-border payments across the Causeway. Singapore and India have also linked their digital payments systems, UPI and PayNow, in an effort to increase instant and low-cost fund transfers between the two nations.

Also Read: Bridging the gender gap and boosting women entrepreneurship with embedded finance

India has also made enormous waves with UPI, a real-time online payment system that allows instant funds transfer between accounts. This is a benchmark payment method in the largest market in Asia – an example for others to emulate. As of now, 382 local banks are integrated with UPI, and more than 100 million users use it monthly. This is the kind of interoperability banks and fintech players in SEA should be seeking.

There is potential for greater payment interoperability through Central Bank Digital Currency (CBDC). This is a digital version of a country’s legal tender backed and issued by its central bank. Although no Asian nation has officially launched a CBDC yet, 35 countries are either in research, development or pilot exploration. CBDC projects can drive further financial inclusion across markets, especially as these enable users in rural areas to transact digitally. However, time will tell whether these pilot projects will turn into tangible products.

SEA has a bright future for developing a world-class digital payments ecosystem. Indeed, based on the success of UPI and the promise of CBDC, there is huge potential for SEA to gain an inclusive and user-friendly payment system. 

Within the six nations of ASEAN alone, there are 60 million people, of whom are some of the world’s most digitally engaged e-commerce consumers. Today there is significant demand for a region-wide digital system that will enable efficient and transparent payments across platforms and borders. 

While the problem is not easily solved, it is navigable with the right approaches. Based on our experience in Latin America, a similar market in terms of nuance and complexity, success is achieved from a combination of local expertise, especially regarding the legal and regulatory frameworks.

Operations in a new territory can evolve quickly, but if you are prepared and, importantly, compliant, you can benefit and positively impact payments and business ecosystems. The dots are already there in SEA: all that’s left to do is connect them. 

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Despite being some of the most talented, adventurous, and resilient individuals, startup founders are found to be susceptible to mental stress and depression. This is often due to the high-risk, fast-paced, and demanding nature of the tech startup world. Such environments often require founders to lead extreme lifestyles with few hours of sleep, isolation from non-work related peers resulting from long hours spent at work, and loss of control over personal life. 

According to a survey, 72% of startup founders revealed that their work had detrimental impacts on their mental health, with the most common symptoms including stress (44%), anxiety (37%), burnout (36%), depression (13%), and panic attacks (10%). In some severe situations, some even considered suicide.

Also read: WAOHire: Empowering both developers and the businesses that need them

Consequently, before finding themselves under the global spotlights for creating the next “unicorns” in the startup ecosystem, many entrepreneurs reported living through devastating moments of despair and self-doubt which can greatly impede their decision-making process and business acumen, further exacerbating the situation. For instance, a decision made by a startup founder under extreme stress can yield adverse consequences for the company, causing their business to lose profit or face legal action from investors or regulators. This also creates deeper damage to the psychological, emotional, and mental well-being of the said founder. 

As a result, it is therefore essential for entrepreneurs to not only take care when making business-related decisions but also look out for themselves mentally — taking regular breaks and seeking professional support when necessary.  

How Anapi tackles the mental toll on startup founders

To help address issues with the mental well-being of startup founders, there exist several products and services including mindfulness classes and professional counselling to counter burnout and other mental health issues. 

Anapi, one of the pioneering insurance brokers for startups based in Singapore understands the needs of founders. They offer a unique proposition by including mental wellness counselling for startup founders as an added value service under their new Startup Director & Officers (D&O) Insurance.

Also read: Unlocking potential: The evolving role of corporate accelerators

D&O is a liability policy that covers founders, directors and management staff from any legal actions taken against them for errors resulting from their management decisions. “As it is primarily taken out by founders to protect themselves from their individual liabilities, it makes sense to provide founders with a more rounded offering. After all, mistakes occur more often due to stress and pressure”, says Andrew Lai, COO of Anapi. “Anapi helps Singapore’s startup and entrepreneurial ecosystem by enabling companies to protect themselves through insurance. We believe this protection should extend to the individual founders themselves as they are the ones driving innovation and change in the market”.

What is included in the new D&O offering by Anapi

The policy protects founders, directors and other high-level officers of a company from any legal actions taken against them for errors resulting from their management decisions by covering the legal defence, settlement and investigation costs. Common sources of risk come from other shareholders, employees or regulators and include claims arising from employment disputes, errors in statements to shareholders, breach of regulation and alleged fraud claims. This type of coverage has become increasingly important for businesses as it helps mitigate legal risks faced by their key persons as they scale their business and manage multiple stakeholders, thereby giving them more peace of mind and empowering them to try more daring and innovative solutions.

On top of the insurance coverage, Anapi provides three sessions of counselling for the startup founders. This is extremely helpful for first-time founders or even serial entrepreneurs. Having an outlet to speak with an impartial professional is necessary during times of stress. Knowing that you have the channel to access professional help so easily will be a game changer for many founders, especially because stressful events can happen unexpectedly.

Also read: Marketing best practices? Indonesian business leaders weigh in

This special D&O offering is aimed at new startups incorporated in Singapore. Anapi’s solution is backed by a specialist Lloyds of London insurer which provides extended coverage compared to other Singapore policies. An example is that the policy also covers the entity itself which is needed in cases of lawsuits from vendors or breaches of contract.

Anapi’s new startup D&O Insurance is very easy to sign up for Singapore-incorporated startups. You just need to complete a simple form to provide some basic information about the company. There is no need to provide financial statements for review. Coverage can start within a matter of days, meaning that founders get protected quicker and get access to mental health benefits sooner. Anapi has also reduced the barrier for startups to get insurance by offering monthly payment options. This brings insurance more in line with how startups are used to paying for other services, making it easier for them to manage their cash flow.

Who is Anapi

Founded in 2018 in Singapore, Anapi strives to be the pioneering insurance broker for new and emerging businesses based in Singapore. They work mainly with startups and entrepreneurs in the finance, technology or medical space, providing deep yet concise advice and helping clients to obtain specialised insurance coverage all over Asia from Anapi’s wide network of general and specialist insurers.

To learn more about Anapi’s all-inclusive insurance products, please visit: https://www.anapi.co 

 

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

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The success rate of an influencer can be drilled down to several factors. While there is no fixed formula for success, certain factors generally play a significant role in determining an influencer’s success rate.

Firstly, the quality of content produced by an influencer is crucial. It should be engaging, unique, and resonate with the target audience. High-quality content is more likely to attract and retain followers, ultimately leading to a higher success rate.

Engagement and interaction also play a vital role. Successful influencers actively engage with their audience by responding to comments and messages and participating in discussions. Building a community and fostering relationships with followers increases engagement and develops loyalty.

In addition to content creation, influencers need to have business savviness. Understanding the business side of their industry, including negotiations, contracts, and branding, can significantly contribute to their success. Knowing how to effectively monetise their influence and manage partnerships is essential for achieving a higher overall success rate.

Why brands should tap into influencer marketing in Indonesia

Influencers in Indonesia are categorised by follower count and are split into end-users (100 – 1,000 followers), nano-influencers (1,000 – 10,000 followers), micro-influencers (10,000 – 100,000 followers), followed macro-influencers (100,000 – 1,000,000 followers), and finally mega-influencers (over 1 million followers) in 2023.

Also Read: How can influencer marketing help the travel industry in a post pandemic world

Influencer marketing has evolved beyond its initial purpose of engaging and raising awareness among target audiences. It now plays a significant role in creating trends and driving various marketing strategies.

These include influencers expanding into video content, affiliate programs, and live shopping experiences, which present new and compelling opportunities for brands to connect with their target audiences.

According to the State of Influence Report 22/23, brands in Indonesia, particularly in the food and drink, fashion and beauty, lifestyle and home, and entertainment and hobbies industries, utilise influencer marketing as an effective way to reach their desired audience.

Besides selecting appropriate influencers, brands should also be aware of their objectives when running an influencer marketing campaign, which includes choosing the right social media platform.

Based on the same report, Instagram dominated the market in Indonesia, accounting for 69.9 per cent of total influencer marketing campaigns. Additionally, TikTok has quickly gained popularity, with nearly 1 in 4 campaigns delivered through the AnyTag platform in the past year.

Influencer marketing is a collaborative effort between the brand and the influencer. By maintaining strong relationships, providing value to the influencer and their audience, and tracking results, brands can harness the power of influencer marketing to effectively reach and engage their target audience.

Is your brand ready?

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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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