ZUZU Hospitality is a revenue platform provider for independent hotels. It provides hotels —  that lack resources and have limited time — with the technology and expertise of larger hotel chains without the associated costs and restrictions.

Headquartered in Singapore, ZUZU Hospitality has operations in Indonesia, Thailand, Malaysia, the Philippines, Vietnam, and India.

In this interview, its CEO Vikram Malhi shares with e27 how the company survived multiple crises in the recent past, the current global economic slowdown is affecting its business, the new opportunities that have emerged due to the economic downturn, and more.

The firm recently announced a US$9 million (SG$12 million) Series B funding round led by SoftBank Ventures Asia, with participation from Atinum Partners, Wooshin Venture Investment, Visor Ventures, and JG Digital Equity Ventures.

Edited excerpts:

How has been the past 2-3 years for ZUZU Hospitality from a business growth perspective? How did it tide over COVID and the economic slowdown?

We followed this saying closely, “We didn’t just weather the storm; we danced in the rain”.

So, over the last three years, we used the time to improve our product significantly. There was a particular focus on improving and automating our revenue management tools to drive revenue improvements for our hotels and cost efficiency for our business.

The new line of products to help our hotel partners increase their distribution. This includes a direct website and booking engine with a localised payment platform for each country.

During this time, we built an entire payment platform for our hotel partners to manage their payments and collections with all OTA partners and guests. This has dramatically improved cost efficiency for hotels and eliminated breakage suffered by independent hotels in managing payments.

Also Read: ZUZU Hospitality raises US$9M in a Series B funding round led by SoftBank Ventures Asia

We also continued to add hotel partners throughout the last three years and have grown our hotel count by 50 per cent (the last reported number by WiT was 1,800 in Feb 2020 to over 2,500 partners across seven different countries.

As a result, our revenues are 2.5x of pre-COVID-19 numbers because we are able to drive better and higher OTA business for our hotel partners. This has also resulted in the fact that we are practically at break-even.

How does the current global economic slowdown affect its business, and what steps has it taken to mitigate any negative impacts? Has ZUZU Hospitality noticed any changes in customer behaviour or demand, and how has it responded?

After significant challenges during the pandemic, the travel industry is now booming globally. In APAC, travel and hospitality are well on their way to recovery. According to data from Amadeus’s Demand360, in the first quarter of 2023 (January-March), the hotel occupancy growth trajectory of 61.7 per cent, surpassing 2019 levels by 3 per cent.

Specifically in Southeast Asia, the travel rebound has been steadily ramping up post-opening of the borders in July 2022 and as the flight capacity builds back. Because we see so much market opportunity, we are now in aggressive growth mode instead of slowing down, especially with our latest series B round of funding.

How has your financial strategy changed in light of the current market conditions, and what measures have you taken to ensure long-term sustainability?

We’ve always been a capital-efficient business, but the pandemic forced us to be even more careful with our spending. We cut down our growth spending significantly between 2020 and 2022, which allowed us to survive and thrive through the slowdown. This has ensured we had sufficient runway during this period and is entering a strong growth phase already in a solid financial position.

With the Series B funding, we can see the potential for the industry and know that we need to strike while the iron is hot. So we have allocated the funds primarily towards product innovation, including introducing AI elements to our platform. We will also enhance our partner experience and look to expand our sales and marketing within the region.

Can you describe your recent fundraising efforts and how the current economic climate impacted those efforts?

Fundraising was challenging for most companies but especially tough for travel businesses during the pandemic. As we move past that period, there is a strong interest in capital-efficient companies with solid fundamentals.

Also Read: Sustained profitability is crucial for long-term success: PolicyStreet CEO

This is good for us because we have been focused on building a viable business that generates revenue. This allowed us to do as well as possible during the pandemic and then be able to be in the position to capitalise when borders started opening up.

Can you discuss any cost-cutting measures ZUZU Hospitality has implemented and how those measures have impacted your business operations? Did you lay off employees to stay afloat in the market?

Naturally, we had to cut down on growth expenses, which meant reducing marketing and sales budgets. We still had to invest in the company. Still, we look at automation of revenue management to supplement our existing team as a way to manage and even grow during the pandemic.

Have you adjusted your growth projections or other key performance indicators in light of the current economic climate?

We are seeing the industry rebound as travel continues to be strong globally. Southeast Asia is recovering nicely, with an expectation that it will fully recover by the end of the year. We are optimistic, and our projections for the company year and more reflect that optimism.

Can you speak of any market opportunities that have emerged due to the economic downturn and how your company is capitalising on those opportunities?

India is the newest and most exciting market for us. We find it easier to sign hotels in India as hotel partners had tried the branded approach, especially when they were getting significant incentives and realised they disliked it.

However, from that experience, they have learned the importance of hospitality technology and, more importantly, distribution and revenue management. They realised the most significant improvement in their business came from professional revenue management, not necessarily the brand. Now that they have left the brand, they are looking for solutions to help them create that value.

COVID-19 helped push digital adoption by consumers, whether it is food delivery or health. Similarly, digital adoption in travel is expected to leapfrog in the next couple of years. Independent hotels heavily relying on offline business now understand the importance of online channels. That allows us to partner with them and help them manage their online distribution channels and revenue.

How do you balance the need for short-term financial stability with the long-term goals of your business?

With the new capital raised, we are focused on growth to ensure we can reach our long-term financial goals. However, we remain a very capital-efficient business, allowing us to maximise the capital without unnecessary burn.

Can you discuss your plans for diversifying your revenue streams or expanding into new markets in light of the current economic climate?

India is a relatively new market for us and has great potential as travel has fully rebounded since 2019 and is expected to reach historic heights.

This growth has been there for many years, with outbound tourism from India increasing 143 per cent from 11 million travellers to 27 million. More recent projections show a full recovery for the Indian outbound market in 2024, with outbound travellers reaching 28.5 million in 2025.

How have you maintained a strong company culture and motivated your team during these challenging times?

Keeping your spirits high when the world shuts down was challenging. As such, I’ve focused on communicating a lot with my team and made sure that everyone felt appreciated and engaged. After all, the team is most productive only when we all have a common goal to achieve and when we feel supported while achieving the goal.

Do we see an end to the raise-cash-burn-cash growth model and the emergence of the “make profits, sustain & grow” model?

Yes, it is obvious that the days of the ZIRP (zero-interest rate policy) raise-cash-burn-cash model are gone. Now it is strong business models that are being coveted by VCs, and the good news for startups is that there is a lot of capital on the sidelines, ready to be deployed in these sensible businesses.

We were always focused on building a sustainable business model that could scale quickly without the need for constant fundraising. This has helped us create a company that could sustain itself even during COVID-19.

What challenges does a late-stage startup face compared to an early-growth-stage startup? What learnings can early or growth-stage companies make from late-stage companies?

Most late-stage startups are extremely focused on unit economics and capital efficiency, while early-stage startups need to focus on growth rightly, but in the new world, this growth needs to be sensible growth and not growth at all costs.

Like every industry, startups are generally starting to adapt to the new world of investing and growth.

How many rounds of funding have you raised of far?

ZUZU Hospitality has raised four rounds so far, including seed, Series A, Series B1 and Series B2. Our Seed and Series A were led by Wavemaker in 2017 and 2018. Golden Gate Ventures, Alpha JWC and TNB Aura also participated.

Also Read: ‘Want VC funding? Your startup needs to be valued at least US$700M in 10 years’: Jeffrey Paine

Series B1 was a convertible note round during Covid. Wavemaker, TNB Aura, JG Digital Equity Ventures, SEEDS, Visor, and Velocity Ventures were the key participants and Series B2; our current round was led by Softbank Ventures with participation from Atinum, JG Digital Equity Ventures, Wooshin.

How is the mindset and cultural shift happening internally since we are in a high-interest rate environment and funding will take more work than before?

What other companies and even whole industries are going through now in this high-interest rate investment, we have already gone through that for two years during the pandemic. It was an extremely tough period, but it helped us prepare, so we are already in great fighting shape.

With the new capital, we at ZUZU Hospitality now need to focus on growing our business and investing in product improvements because we already know how to handle the current challenges in the market.

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Plastic waste is a multi-faceted problem that requires the involvement and cooperation of many stakeholders, with corporations being one of the key players. In Part 1: Unraveling the Causes, I elaborated on some of the main causes of the plastic epidemic in Asia.

In this part, we will delve deeper into the unique challenges stakeholders face when trying to tackle the plastic problem, either through reducing, reusing or recycling. 

The life cycle of plastics

First, let us do a quick run-through of the value chain of plastics. The infographic below is a very simplified depiction of the journey of plastic waste throughout its lifecycle.

Referenced From: OECD (2022, 22 February), Plastic pollution is growing relentlessly as waste management and recycling fall short, says OECD. 

The following problems outlined are some of the most challenging problems to be addressed in the plastic waste space. 

Cost-effectiveness

The greatest problem when it comes to recycling plastics on a large scale is its cost. According to a McKinsey report, based on existing technologies and assuming there are no business model breakthroughs, recycling may only be profitable for about 50 per cent of plastic-waste volume today. Some factors that contribute to this challenge include the increased cost of production of recycled plastics and limited technological capabilities. 

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

Firstly, the economics of producing recycled plastics such as polyethylene terephthalate (PET) is not in the producer’s favour. There is an increased demand from corporations, especially Fast-Moving Consumer Good (FMCG) companies, to include recycled plastics in new products.

Thus, the price of recycled plastics has been pushed up, causing recycled plastics to become more expensive than virgin plastics for the first time in a few years. A report from S&P Global Platts, a commodity market specialist, reveals that recycled plastic in 2020 costs an extra US$72 (£57) a tonne compared to newly made plastic.

This was further exacerbated by the falling oil prices caused by the pandemic and an increase in petrochemical production from the US driven by the shale gas boom. With shale oil being a key raw material of virgin plastics, this decreases the cost of production of virgin plastics and dramatically increases the relative price of recycled plastics, forcing recyclers in Asia to slash prices by 21 per cent on average. 

However, the effects of COVID-19 extend beyond the short term. The long-lasting impacts are evident in the sheer number of recycling companies forced to shut down in Asia due to the sharp decrease in demand for recycled plastics.

As seen in the following figure, not only are merely 58 per cent of recyclers in the listed Asian countries operating as of June 2020, but their average operating capacities are at a mere 46 per cent of their full installed capacity.

This paints a worrying picture of the plastic recycling scene. Should they permanently leave the industry, the total recycling capability would shrink even further, posing an even greater problem to the already limited recycling capacities in the region. 

Secondly, the recycling process itself still faces significant technological constraints, making it a costly endeavour. The expensive processes used to engineer alternatives to plastics, especially chemical recycling methods, are a huge deterrent to its adoption on a large basis. Another key area which still heavily faces technological limitations is waste sorting.

Single-stream recycling, which is common in many regions, is a system in which all waste materials, such as plastics, papers and metals, are mixed into a single collection truck. This is convenient for consumers yet often results in contamination, and materials must be sorted by both machine and human hand, making it more expensive.

The decreased efficiency and increased cost thus pose a great challenge to the company when it wants to scale up the system. Brands need millions of tons of recycled plastic for their products, and currently, very few recyclers can provide the same volume. Currently, very few companies can produce at this capacity. 

Quality of recycled plastics

The quality of recycled plastics is another key area that needs to be addressed. Recycling plastics often leads to lower-quality materials, which diminishes their attractiveness. More than 10,000 different additives can be used to make plastics.

Plastics of the same type often contain different combinations of additives, resulting in recycled material with unpredictable and often suboptimal additive combinations. Plus, the long polymer chains that make up these materials become slightly shorter each time they are melted down.

This is especially crucial when we look at the plastic packaging used for food, which only allows for the highest grade of plastic to be used. 

The limited recyclability of plastics compounds the problem, as many plastics can only be recycled two-three times before their properties degrade beyond usability. After undergoing multiple recycling cycles, the plastics eventually become environmentally unfriendly, and they would once again be subjected to the processes of incineration or be chucked into landfills. 

Traceability of plastics

In 2020, Coca-Cola was named the top plastic polluter in the world three years in a row, with 13,834 of its discarded plastic bottles found lying on beaches, rivers and parks in 51 out of 55 countries that were surveyed.

This was in spite of its advertising claims that it was “investing in sustainable packaging platforms to reduce (their) carbon footprint”. And Coca-Cola is not the only one. The prominence of greenwashing in plastic recycling is alarming, and a large part of the problem lies in a lack of accountability. 

Also Read: How climate tech companies in Asia measure the impact of their work

“Tracing plastic resolves the anonymity of plastic waste,” Professor Barner-Kowollik of the Queensland University of Technology opined. That means that plastic waste could be traced back to the producer, paving the way for plastic producers to be held accountable for every inch of their waste via regulations.

Thus, there should be a method to assign a unique code to each plastic waste generated and monitor its journey through the plastic value chain, from production to disposal, pressurising corporations to deal with the waste themselves instead of expediting it to other companies or even countries. Traceability hence presents a unique opportunity that startups looking to enter the plastic waste ecosystem can explore. 

Lack of proper plastic recycling schemes and policies

Finally, the lack of proper plastic recycling infrastructures and enforced schemes is a pertinent area that must be addressed. 

With the lack of proper municipal waste management systems, many households and companies may not have easy access to ways to dispose of their waste. In turn, this means that plastic waste and waste, in general, will not be collected regularly, and the percentage of waste collected from the actual total waste generated will be lower.

Thus, recycling companies may face difficulties in obtaining consistent and high-quality feedstock, thus decreasing their abilities to reap economies of scale. As such, the companies may incur a higher cost of production when trying to recycle waste, and this would manifest in the form of higher prices for recycled plastics.

This exacerbates our very first argument on the costly nature of recycled plastics when compared to virgin plastics, further disincentivising more companies from entering the plastic recycling space. 

Next, limited infrastructural development by governments also means that there are insufficient and inadequate waste disposal facilities. The lack of support and funding from the government would further disincentivise entrepreneurs to explore the plastic recycling space, leading existing corporates and startups to struggle when finding appropriate facilities or partners to handle larger volumes of plastic waste.

The best way to scale collaboration is through markets that have the right incentives in place. Thus, without the right financial or business incentives, the lack of structured support can pose a great setback to the growth of this industry. On a larger scale, this can even lead to the decreased capacity of plastic recycling in a country. 

In part three, we will look at some of the possible solutions offered by startups, governments, and many more stakeholders to tackle the plastic problem.

This article is part of a three-part series adapted from the Plastics and Circularity Report under the HyperScale Waste-Tech Accelerator 2023 programme. For more information on the programme and how you can be a part of the inaugural Waste-Tech Accelerator problem in the world, find out more here: https://hyperx.global/hyperscale.

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As the dreary funding winter soars, at e27, we are kickstarting a new article series Line of Hire to understand a company’s culture and hiring philosophies to empower tech workers with the right growth tools to enable business owners to attract talent.

Daryl Lim currently holds the role of Co-Founder and COO at MetaPals, a blockchain entertainment venture designed to facilitate user transition from Web2 to Web3 with the aid of digital pets in the metaverse.

Lim is an active mentor for startups, having imparted his knowledge and experience at many platforms, from hackathons to accelerator programmes.

In this episode, Lim shares his organisation’s culture and hiring philosophies.

Excerpts:

What personality traits/qualities do you look for in potential employees?

At MetaPals, we seek innovators with a pioneering spirit, individuals who are unafraid to challenge conventions and push boundaries. Authenticity, values alignment, and the drive to make a genuine impact are crucial to us, more so than titles or years of experience.

We prize a diverse, inclusive and open-minded team, as we believe that diverse perspectives fuel the most creative solutions. Continual improvement and curiosity are not just traits we appreciate but values that are deeply woven into our fabric. If you resonate with our mission and culture, you might just be what we’re looking for.

How do they fit into your company culture? Tell us a little more about your company culture.

Our company culture thrives on creativity and collaboration, fostering an environment where every voice matters.

We’ve created a virtual headquarters using GatherTown, a tool that brings the team together in a digital space, encouraging spontaneous communication and collaboration akin to a physical office. We also utilize Slack to facilitate open dialogue, where every team member’s work is visible and can benefit from the diverse perspectives across the company.

This fusion of technology and culture helps us create our digital companions, MetaPals, enhancing the emotional bond between users and their virtual pets. This approach ensures every MetaPal becomes a unique, trusty companion on the user’s journey through the metaverse.

How do you foster transparency and encourage achievement in the workplace?

At MetaPals, transparency and achievement are deeply woven into our DNA. We run regular alignment meetings across product, development, and growth teams, ensuring each team member is well-informed, and their voices are heard.

Also Read: It is better to have a great team than a team of greats: Jeff Lee of Zoala

During sprint planning sessions, every team member’s input is valued and welcomed, fostering a sense of ownership and commitment. We celebrate achievements in our weekly company-wide meetings where supervisors highlight individual accomplishments, boosting morale and encouraging high performance.

Do you have a mental health policy? What does that look like?

At MetaPals, we emphasize a healthy mental state for all our employees, recognising that our mission of fostering virtual companionship extends to our team as well.

We foster an open-dialogue culture where each team manager has weekly one-on-one discussions with their team members about non-work related matters, ensuring that any personal struggles or events impacting their mental well-being are addressed. Our HR managers play a crucial role as confidants, fostering relationships with team members while maintaining their anonymity.

This approach encourages more open discussions about personal issues and well-being. We also respect and understand the need for personal time off. Hence we have an unlimited leave policy that allows our team to take a break whenever needed.

WFH or WFO, or hybrid?

At MetaPals, we embrace a hybrid work model. By default, we are a remote-first company, leveraging tools like Gather to provide a virtual office that encourages natural communication, collaboration, and team alignment.

However, we also understand the value of physical interaction and are establishing office spaces in Singapore and Jakarta. These spaces foster creativity and collaboration, making them appealing to team members who wish to work in person.

We view the use of our offices not as a requirement but as an added benefit for those who choose to utilise them. Our goal as management is to provide an environment that supports all modes of work and caters to the diverse needs of our team.

How should a tech worker prepare for the funding winter?

Just like a bear prepping for winter, tech workers can fortify themselves for the funding winter. Bears fatten up and find safe dens before the freeze; similarly, tech workers should enhance their skills, make themselves indispensable, and secure a supportive professional network. Like bears storing energy, tech workers should save and invest wisely.

A bear doesn’t sleep through all winter; they wake intermittently, ready to adapt. Similarly, tech workers should stay updated with trends and be ready to pivot. Just as the bear trusts the cycle of seasons, tech workers should remember winter always leads to spring. And in spring, opportunities bloom again.

How do you measure the performance of your employees?

We measure performance through a comprehensive four-part yearly review.

Q1 involves creating a career progression plan, where we set individual KPIs and expectations. In Q2, we have a mid-year review, taking stock of an employee’s culture fit, KPI progress, and overall career trajectory. Q3 is a recalibration stage, where we update the career progression plan based on the year’s experiences. Finally, Q4 hosts the end-of-year review, which significantly impacts salary adjustments, ESOP allocations, and promotions.

This methodical approach ensures constant alignment and transparent dialogue, allowing us to jointly navigate the journey towards each employee’s professional growth.

Will you consider a moderately skilled person with great honesty or a highly skilled person with less honesty when hiring?

We value honesty and personal growth, making us inclined towards moderately skilled individuals with high integrity. Our long-term mindset appreciates the value of trust and authenticity in building a sustainable and innovative team.

Honesty, especially with oneself, fosters introspection and personal growth, which is essential for adapting to our fast-paced industry. While skills can be developed over time, integrity forms the bedrock of our culture, and it’s non-negotiable. We believe in investing in individuals who show potential for growth, especially when they demonstrate a strong alignment with our core values.

Also Read: The ownership is with the leadership to be honest and respectful: Madhura Moulik of KarmaV

Do you encourage ‘intrapreneurship’ in your organisation?

At MetaPals, ‘intrapreneurship’ is not just encouraged; it’s celebrated. We’ve created an ‘Idea Pool’ on Coda where all team members can contribute their visionary concepts for the future of our platform. Our Slack channels are buzzing hubs for innovation, used to brainstorm and discuss the game’s potential.

We also host weekly idea competitions in our company-wide meetings, covering everything from naming our in-game currency to designing inventive guerrilla marketing campaigns. Our employees who bring the most innovative ideas to the table are recognised with unique rewards, fostering a culture where every voice can shape MetaPals’ future.

How do you support upskilling for your employees?

We are committed to nurturing our team’s growth beyond their current roles. We encourage employees to expand their horizons and acquire skills that align with their KPIs and interests.

A perfect example is Rachelle, who started as a junior UX/UI intern and rose to manage our product team, ultimately becoming our full-time product manager.

We provide a rich assortment of online courses, including Masterclass, and offer a flexible compensation allowance for any additional upskilling required. Our aim is to foster an environment that empowers each member of our team to reach their full potential.

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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.

The post Our company culture thrives on creativity and collaboration: Daryl Lim of MetaPals appeared first on e27.

The gaming revolution is in full swing, with over one-third of the world’s population embracing the fun and excitement of playing games. From hardcore console fanatics to casual mobile players, more than 2.7 billion individuals worldwide engage in gaming across mobile, PC, and console devices today.

The appeal is clear, as outlined by one of the co-authors previously — gaming simultaneously fulfils the need to escape from reality, the need to belong to a community and the need to achieve. Web3, in particular, represents a significant evolution in the gaming industry, as it shifts the traditional power dynamic between players, game developers and game publishers.

Web3 games empower players by offering them shared ownership and financial value, transforming them from mere consumers into active participants. By democratizing access to ownership and value, Web3 gaming creates a more equitable and inclusive gaming experience.

Yet the state of Web3 gaming remains nascent, with general consensus among industry participants that we are at the tail-end of the first “market cycle”. In this first cycle from late 2019 to early 2022, popular play-to-earn games like Axie Infinity introduced millions of gamers to Web3. It would be unsurprising to see the next cycle familiarize an even larger swathe of gamers with Web3, even as US$4.5B of funding was poured into Web3 games in 2022.

The plethora of choices gamers have today will further expand as these Web3 games mature through the development cycle. As gamers experience a mind-boggling and ever-increasing array of options, how can pre-launch Web3 games position themselves for success in the next cycle?

We believe the answer lies in selecting the right ecosystem partner to build and publish with. By choosing a partner that is aligned, Web3 games can expand audience reach, support user data sharing, safeguard interests, and support creators.

Also Read: Don’t just build a Web3 community, start a movement

These ecosystems often offer valuable resources such as dev resources, marketing support and user access, thereby helping Web3 games stand out in what is likely to be a hyper-competitive market when the next bull cycle begins. With a growing number of ecosystems, how should Web3 games identify the right partner to collaborate with?

Expanding audience reach

All that glitters are not gold grants. While ecosystems often invite Web3 games to partner up through the disbursement of grants, often in the ecosystem’s native token, we think the primary consideration of Web3 games should not be related to the grant.

While it is tempting to go with the ecosystem that dangles the most attractive “carrot” with a sizable grant amount, founders should take a step back and consider two questions: what is capital used for, and are there more challenging problems to solve than capital access?

On the former, the two largest expense categories for Web3 games are product development and user acquisition, in sequential order. With the average initial funding round approximating US$2.5M to US$5M, Web3 games are likely to invest the majority of funds in product development, only to find themselves with limited remaining capital for user acquisition.

While pursuing subsequent fundraising rounds emerges to be a viable and popular option, the first-principle question Web3 games should ask themselves is — can the ecosystem partner reduce user acquisition costs and expand distribution reach efficiently? 

As it turns out, solving for user acquisition for Web3 games often turns out to be more challenging than capital access. In spite of the funding slowdown in current market conditions, there are still a sizable number of investors, individual or institutional, who are actively investing in Web3 gaming (one of the co-authors leads a venture capital fund that actively invests in Web3 games).

As such, we believe that solving for efficient user acquisition is more complex than accessing capital. Thus an ecosystems’ existing distribution and audience engagement are one of the most important criteria Web3 games should consider when picking an ecosystem partner.

Enabling users to share first-party data

Related to the two largest expense categories for Web3 games — product development and user acquisition — are the perennial questions of “How can we make our game attractive (to new players) and sticky (to existing players)?” and “How can we bring a gamer in for as low a cost as possible?”

These are questions that can only be well answered with data — not just third-party data from in-game actions or on-chain transaction history, but also first-party data around an individual’s preferences, behaviour and peculiarities.

Today, most of this first-party data exists in walled garden silos – the likes of Twitter, Instagram, Twitch, YouTube, among other social media platforms. Accessing this data requires the individual’s consent, and it is the role of the ecosystem to facilitate or even incentivise users to share their first-party data.

As discussed in an earlier piece on incentives around data sharing, incentive mechanisms are varied – from simplistic “pay-to-play” to removing Web3 friction such as gas. Ecosystems can play a role in experimenting with these mechanisms, with the eventual goal of unlocking first-party data on behalf of Web3 games, as in the case of Sky Mavis’ partnership with Qu3st to synthesize on-chain data with first-party data and create user segments. 

The case for ecosystems to be the first-party data aggregator instead of individual Web3 games is clear. Firstly, users want permission for first-party data sharing as few times as possible, and the friction of permissions every Web3 game an individual interacts with is counterproductive.

Secondly, the synthesis of on-chain and off-chain data across multiple sources, each with different formats and granularity, is complex and requires non-trivial engineering effort. Instead of diverting resources away from core game development, Web3 games can begin to look to ecosystems that help unlock the potential of users’ data.

Thirdly, ecosystems play an important role in fostering trust — a fledgling Web3 game asking an individual to connect socials for data sharing might be met with scepticism and uncertainty over privacy and security, whereas an ecosystem often carries more credibility and projects confidence.

Safeguarding the gamer experience

The protection of an individual’s privacy and security extends beyond first-party data to encompass all interactions between the gamer, the game and the ecosystem. Given that a core tenet of Web3 gaming is the creation and sharing of economic value, it is certain that bad actors will emerge to seek profiteering opportunities through hacks, fraud, deception and other devious schemes. As such, the onus is on both the games and the ecosystem to safeguard the gamer experience. 

Also Read: Echelon: Unlocking global growth opportunities with Web3

Interestingly, this could be an opportunity for newer, smaller ecosystems to leapfrog mature, larger ecosystems. If the sole criteria for ecosystem selection were audience reach (the first criterion outlined in this article), mature ecosystems such as Ethereum would almost always emerge as the preferred choice (save for its other shortcomings, such as high costs of transactions).

Yet Ethereum is an open, largely unpoliced ecosystem where fraud is rampant, malicious smart contracts are abundant and mostly masked behind technicalities that are incomprehensible to most. This presents an opportunity for more secure environments to foster user confidence and trust – a gap for ecosystems that are more agile and well-designed to fill.

Nurturing creators to expand UGC

As Web3 games empower players with shared ownership, another pertinent question Web3 games should consider in selecting ecosystems is the support for user-generated content (UGC) by nurturing creators. UGC forms a key growth driver for Web2 and Web3 games alike, allowing players to create and share content and fostering a sense of community and player engagement.

Also Read: Web3 gaming: The next big thing in online entertainment

A trend we have observed from the first market cycle is a tendency for Web3 games to return to the same few content creators and influencers — often, those with sizable distribution and reach. This influencer base tends to be relatively narrow as Web3 gaming is nascent, resulting in the same few individuals monopolizing the share of voice.

We believe this may also be counterproductive for Web3 games, even as these influencers promote multiple games a week, resulting in weak brand recall among audiences. 

Going forward, we see increasing importance in the role of ecosystems to nurture gamers to become creators and get rewarded for sharing their experiences. In a recent pilot by Qu3st in collaboration with Axie Infinity to encourage UGC, 70 per cent of submissions were from first-time content creators. While the incentive mechanism was simple — the first 100 gamers who submitted UGC would receive a reward, the flywheel effect this sparked was a positive surprise.

After the campaign, a significant proportion of participants created subsequent pieces of content, with quite a few gamers even starting to live stream their gameplay consistently. This writing on the wall is clear — ecosystems, alongside the games they support, can create simple yet effective quests and campaigns to nurture creators. Not only will UGC deepen engagement with gamers, but it will also extend game longevity and contribute towards the “fun” experiences players seek.

Building and publishing a successful Web3 game is no easy feat, especially when more than half of mainstream gamers remain unfamiliar. With only 12 per cent of gamers having tried playing a Web3 game to date and a further 15 per cent who have not played but are interested in doing so, it can almost be tempting to write off Web3 gaming as a niche interest for a select few.

Yet we believe that mainstream adoption of Web3 games will accelerate in the next market cycle, with the close-knit support from the ecosystems that envelop these games. These ecosystems can broaden audience reach, facilitate data sharing, protect gamers and nurture creators, which in turn positions the games they support to stand out in the crowded market for gamers’ attention.  

This article has been co-written by Hantao Yuan, Co-Founder of Qu3st. 

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Echelon Asia Summit 2023 has just concluded last June 15, and we are delighted to share the key highlights of the two-day conference that took place at the Singapore EXPO. Having gathered startup founders, corporates, investors, and other ecosystem stakeholders from across the Asia Pacific, Echelon 2023 was attended by over 5000 participants, with over 130 booths and exhibitors from different startups, VCs, and enterprises, and over 30 sessions consisting of keynote speeches, fireside chats, panel discussions, and pitching competitions that featured some of the most sought after industry insiders, all spanning three major stages: the TOP100 stage, the Forge stage, and the Forward stage.

Since its inception, the Echelon Asia Summit has facilitated thousands of connections between startup founders, VCs, corporates, and other stakeholders, and has played an important part in building many important partnerships and collaborations over the years.

Also read: These 11 AI companies caught our eyes at Echelon Asia Summit 2023

“It has been humbling to see the resilience and grit of the various stakeholders in the Southeast tech ecosystem and them coming together towards building a better ecosystem. In partnership with the ecosystem, Echelon will collectively drive to support and engage stakeholders towards striving for sustainable growth. We are grateful for the support of the community in making Echelon a success in 2023 and look forward to doubling the scale in 2024,” explained Mohan Belani, Co-Founder and CEO of e27.

This year’s Echelon Asia Summit marks the full comeback of the anticipated Southeast Asian tech conference, having been put on hold in 2020 and 2021 due to the COVID-19 pandemic, returning on a smaller scale in 2022 in partnership with SWITCH.

This year, the Asia Pacific tech startup ecosystem truly came together to help bolster and enable the region’s vibrant business landscape for all stakeholders to thrive in, fostering impactful connections, networking, partnerships, and collaborations — proving that the region’s tech startup community is back in full speed.

Longan Group hailed as the winner of TOP100

After hundreds of applications, pitches, and a rigorous judging process, debt management company Longan Group emerged as the winner of the prestigious TOP100 program. The TOP100 grand finals was one of the biggest highlights of Day 2, featuring pitches from a diverse range of startups operating across different verticals and domains, including fintech, agritech, healthtech, and more.

Longan is an ethical and inclusive debt management company supporting consumers and financial institutions to manage their finances more efficiently, on a mission to solve consumer indebtedness and promote financial health among the two billion population across Asia. The company is currently operating in Indonesia and Vietnam.

This year’s TOP100 grand finals was adjudged by our esteemed panel of investor-judges, including Weisheng Neo, General Partner at Qualgro Partner; Susli Lie, Partner at Monk’s Hill Ventures; Martin Cu, Partner at 500 Global; Tanuja Rajah, Partner at M Venture Partners, and Johan Surani, Vice President, Peak XV Partners.

Forge Stage sparks important conversations

The Forge Stage featured key insights from industry leaders and insiders concerning some of today’s most pressing topics.

The sessions held at the Forge stage spanned a diverse range of subjects, including a panel discussion on the topic, “Building a Sustainable Fintech Ecosystem: Unlocking the Potential of Southeast Asia and Predicting the Future Unicorns”, moderated by Sandeep Laxman, Head of Fintech Business Development, APJ, at Amazon Web Services (AWS) and featuring Nikhilesh Goel, Co-Founder & Group CEO of Validus as the speaker; a fireside chat on “How generative AI can help uncover profitable areas in your business”, moderated by Hung Nguyen, Head of Consulting at e27, and featuring Jinu VM, Sales Engineering Lead at Sendbird as its speaker; and and a fireside chat on the topic, “How Can Women Play an Increasing Role in Tech and is it Time for Southeast Asia to Have More Gender-Neutral Collaborative Organizations”, with Devina Mardiputri, Senior Account Executive for APAC at e27 as moderator and Chrisanti Indiana, Co-Founder and CMO of Sociolla as the speaker.

Also read: Longan Group named as winner of 2023 TOP100

One of the key highlights from the Forge stage was the fireside chat entitled, “What does it take to build an ideal growth equity platform for Southeast Asia?” where Saemin Ahn and Martin Cu, Partners at 500 Global discussed key trends and insights as well as strategies to take on growth equity funding in the region. The session was moderated by Mohan Belani, Co-Founder and CEO of e27.

Trends and key insights at the Forward Stage

Similarly, the Forward Stage became the site of important discussions on trends and key insights as shared by a variety of experts and industry insiders.

These discussions included a keynote on the topic, “The Philippine Opportunity: Mass Digitization of a Population” featuring Franco Varona, Managing Partner for Foxmont Capital Partners; a fireside chat on “Breaking Boundaries, Bridging Korean startup ecosystem to Southeast Asia through an integrated approach” with Jinkyo (Jade) Choi, Director of Startup Ecosystem Development at the Next Challenge Foundation as the speaker and Justin Chin, Head of Business Development at e27 as the moderator; and a panel discussion on “The upcoming rise of the Philippines startup ecosystem, and what founders and investors should take note of”, with John Aguilar, Founder and Host of The Final Pitch, Glenn Estrella, Head of Ideation and Acceleration Group for 917Ventures, Rexy Josh Dorado, Co-Founder and President of Kumu, and Franco Varona, Managing Partner at Foxmont Capital Partners.

Culminating the stage on day 2 was a fireside chat on “Breaking Down Borders: How YC Alum, Dropee, is redefining the SEA supply chain”, with Lennise Ng, CEO and Co-Founder of Dropee serving as our esteemed speaker, joined by Lalitha Wemel, CEO and Co-Founder for Opt-In Studio as the moderator.

Other highlights from Echelon Asia Summit 2023

Prudence Foundation’s SAFE STEPS D-Tech Awards 2023 also culminated at the year’s Echelon Asia Summit, with all six finalists battling it out for the top spot. Emerging as the winner is Wateroam, a social enterprise which provides honest water solutions for a better world. Their vision to end global thirst is being accomplished by producing efficient and affordable water treatment products that are used for emergency relief and rural development. Specifically, their solution is The ROAMfilter Plus 2, a community water filtration system that is simple to operate, long-lasting, lightweight and cost-effective. The system’s hand pump operation requires no electricity, making it an ideal and immediate solution for rural and disaster-hit regions. With the ROAMfilter Plus 2, a person becomes a mobile water station which can produce safe drinking water quickly for 100 people.

Also read: Collaboration with corporates plays a crucial role in climate tech startups’ success

Over at the e27 Ecosystem Booth, apart from being an open networking space that enabled ecosystem stakeholders to meet, chat, and network with their peers, we also saw a series of workshops and sessions including, “e27 Contributor Program Workshop: How to become a thought leader in the startup ecosystem”, featuring Anisa Menur of e27 and Cheryl Liew of Monk’s Hill Ventures; “Building your Investor Network: Strategies for Nurturing VC-Startups Relationships and Effective Fundraising”, with Paulo Oscuro of e27, featuring Sejung Yun of ColoplNext and Davin Dedhia of Auptimate; and “Innovating on the Acceleration Model with Communities, Meet the Leaders and Hear their Impact Stories”, with Jieyu Chan of Work on Climate and featuring Melvin Chew, Founder of Hawkwers United Dabao 2020, Johnson Lam, Founder of KakiRepair, Myles Delfin, Founder of The Bike Scout Project, and Rauf Raphanus, Founder of Peri Kertas.

Overall, the Echelon Asia Summit 2023 was a huge success and we have the APAC tech startup ecosystem to thank! We hope that the connections built over the 2-day conference will yield a lasting impact that will help define the business landscape of the region and beyond.

We can’t wait to see what’s next in store for all of you. See you at the Echelon Asia Summit 2024!

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Echelon Asia Summit is e27’s flagship tech conference, bringing APAC’s startup ecosystem together to build connections, gain insights, and meet talent from all over Asia. Explore how startups, investors, corporates and government bodies work together across borders to tackle similar challenges and pressing issues and empower the larger ecosystem to build the Future of Asia. Gather meaningful insights from industry leaders and stakeholders through stage discussions; build connections within the industry with over 300 exhibition booths. As Asia’s leading platform for tech startups and investments for 13 years now, Echelon Asia Summit will take on cross-border engagements, talent growth, and showcasing APAC’s emerging and leading companies from the heart of Singapore.

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