Artificial Intelligence (AI) is one of the biggest trends in the global tech industry today for good reasons. Increasingly popular tools such as ChatGPT have opened the public’s eyes to the possibilities of its implementation–and tech companies around the world are rising up to this challenge.

At Echelon Asia Summit 2023, held at Singapore Expo on June 14-15, a number of AI companies from various countries opened their booths to showcase their innovation to the attendees. These companies are working in various sectors from education to agriculture to property and construction, and many of them are part of the TOP100 programme.

The following are some that caught our eyes:

AI Communis
Singapore-based AI Communis builds Auris AI, a platform that generates transcripts, subtitles, and translations using its own ASR technology.

Ailytics
Through its Ailyssa platform, Ailytics leverages AI to help construction companies enhance safety and maximise productivity by providing actionable insights from camera feeds in real time.

CAWIL.ai
The company provides an industry-agnostic AI solution that focuses on computer vision and IoT integration for smart city applications. It is originating in the Philippines.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

DashoContent
The company is a pay-as-you-go content platform to create marketing content for businesses that are consistent with their brand voice. Hailing from the Philippines, the company is currently not fundraising.

FINEXT
Coming from Malaysia, FINEXT helps users to automate personal finance tasks using AI technology. Users only have to scan and upload their receipts.

HeyHi
Singapore-based HeyHi provides an AI-enabled assessment and a personalised learning system that allows educators to upload worksheets for their students and work on them in a collaborative manner. It is currently in the Pre-Series A stage.

MOVE IT MOVE IT LIMITED
The Hong Kong-based company is a one-stop logistics platform that connects clients and service providers by using AI detection technology with the goal of creating a comprehensive property ecosystem. It is currently in the seed stage.

The Pond
South Korea-based LetiTu builds a platform called The Pond that enables academic curriculum building for each grade based on students’ personal goals. It allows students to gain insights into suitable career and educational paths based on their interests and academic performance.

Also Read: These Artificial Intelligence startups are proving to be industry game-changers

Tictag
Tictag is a crowdsourcing data platform that enables high-quality data annotation and collection that aims to provide “exceptional” AI results. Originating from Singapore, the company is currently in the Pre-Series A stage.

TRADEMONDAY
Originating from Hong Kong, TRADEMONDAY is an AI-as-a-Service, low-code platform for retail and consumer brands. Its patent-pending technology allows retailers to gain insight into their customers. The company has raised Series A funding.

Wizher Laundry
Originating from the Philippines, Wizher Laundry is a digital laundry management platform that utilises AI to help enhance the laundry experience for both shop owners and their customers. It has raised a seed funding round.

 

 

 

 

 

 

 

 

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It is quite a well-known fact that the management team is the most important factor for any startup. If the team members are good and gel with one another, then they can take their business to great heights. If the team is bad and members don’t trust each other, that is a perfect recipe for the failure of such an organisation.

This is why every VC puts strong emphasis on the management team.

Singapore-based KK Fund is no different. But this VC, which invests in seed-stage internet and mobile startups across Southeast Asia, Hong Kong and Taiwan, also looks at several other factors before injecting their money into a business.

Also Read: Genesis Alternative Ventures makes final close of US$80M venture debt fund

In a webinar, titled Fundraising Fundamentals‘, hosted by e27, Bookyung Kim, Investment Associate at KK Fund, spells out the VC firm’s evaluation criteria.

Below are edited excerpts from the webinar:

When is the right time to raise money from investors?

Founders should raise money when they have figured out the market opportunity, understand the customer, when they have the delivered product that matched the opportunity and the product is being adopted at a rapid rates.

You need money when you have something that can attract investors/investor interest and you can convince that the investors can make attractive return.

How much should I raise?

Try to dilute only 10-20 per cent maximum for each round. It means if you give up so much equity from the very beginning, you will end up with too little amount of equity in your hands in the end.

When you raise VC money, think ahead of time. Think about at least one/one-year-and-a-half ahead for the runway. Because, it takes time to raise fund. It is always better to think ahead so you don’t face the financial problem in a very short time.

What is the valuation of my company?

The general approach is the comparable method. So you look at other similar companies that have secured funding before you did and then you compare them. You try to find companies that have a similar traits with your competence, and then you can use it as an example.

But that’s not all, always keep in mind that you should find a valuation that allows you to raise the amount needed with acceptable dilution. What it means is that if you give up too much amounts of equity in order to attract VCs at the moment, it’s gonna be a big problem in the future. So always think about how much equity you can, can give away to investors.

You are now all set to raise fund. The next step is to meet the VC that aligns with the goals of its business. Before asking a VC for the money, of course, you need to understand what they are are looking for.

I would like to point out here that different VCs follow different approach and perspectives when evaluating a startup. There is no a single answer to how VCs evaluate a startup for investment.

From KK Fund’s point of view, we look for many important things while evaluating an early-stage startup — the team, market size, business model, traction, and competitive landscape.

Here, I will explain the most important factors.

1) The team

The management team is the most important factor. This is because we cannot change the management team once we invest in the business.

It is possible to change the leadership team in the private equity sector but it is not in an early-stage startup. The management team is the one that actually lives our vision. If they don’t do well, what we can do is to go down with them. Of course, we will try to help them as much as we can, but I’m just talking about the worst case.

The second reason is that for an early-stage startup, the management team is literally all what the company has. They don’t have too much things to ponder over; they don’t have a solid product or service. They don’t have revenue track record or meaningful data so that we can forecast the future.

So team is the most important asset and is the one that decides the future of a company.

2) Target market

Target market is also important. It is more important than the business model of a company because if the business model doesn’t work, we can work on it together and change it. However, changing the target market is hard.

Let’s assume I started a company in Korea but it failed. Then, I think I can work on launching it in Thailand. However, I don’t know anyone there, so it won’t work.

Also Read: Future Flow’s cap table helps founders easily monitor the evolution of their stake, equity dilution

Equally important is the size of the market. If the target market size is so small, there’s nothing you can do.

3) Exit opportunity

Another important factor is exit opportunity. This is somewhat important because you don’t know what’s going to happen in the future. But from an investor point of view, they need to make a decision.

For example, you come to me and then you explain your idea to me. And then I have to deliver it to my boss/the investment committee.

To convince them, I need to show them that these are the possible exit opportunities and we can make this much return on this investment. So it it’s always good to have some level of exit opportunity, some plan or forecasting.

4) Business model

In terms of the business model, if the management team and VC are good, then it shouldn’t be a big problem and it can be fixed.

5) Traction

The last thing is traction. I don’t really care about traction. Of course, if it’s a Series A deal, I’ll probably look more for traction record. But still, we are more focused on the growth trend rather than their current revenue.

So normally, we don’t really care about how much they’re making now at the moment. We don’t ask questions like ‘why is your ARR/MRR less than US$200,000’. Of course, high MRR numbers are good to have but we don’t expect the early-stage startups to have a certain revenue figure.

Also Read: Ex-VinaCapital Ventures exec’s US$50M fund Touchstone Partners hits first close

Rather, what we focus more on is the company’s potential and growth trend. If the revenue is kind of low but if they can show me that it’s growing like 4x, 5x or 10x, then I can say, ‘oh, this company has a potential and maybe I can join them’.

Again, speaking of the revenue, we don’t care about the performance forecasting either. How can someone forecast the future performance of a young startup? Especially, how can you, as a VC, trust the numbers prepare by a startup just to get some money out of them. Even conglomerates cannot predict their future performance, so it doesn’t really matter.

According to my mentor who has over 10 years’ experience in this business, he has never seen a startup that got their traction right. So, you don’t have to spend one whole slide/two slides to show all these small numbers and come up with three years or five years of prediction. It doesn’t have much effect when I evaluate a startup.

But if you still want to include the forecast performance, I think one year should be enough. So, in terms of recording revenue, if you do well in the future and get the highest revenues, great. But how can you be so confident that you can achieve these numbers?

What matters most is the cost prediction, because unlike the revenues, you can always control costs. When I look at a startup, I look at the details of the cost plan to understand how sensible and how skilled the management team/founders are.

For example, when you look at the forecasting cost, I might ask ‘why hiring cost is so high’, ‘how many people are you hiring’, ‘what was the salary range you were thinking about’ and ‘what level of people are you hiring’ etc.

Through these kinds of things, we can sense the skills of the management team and founders. So I suggest you focus on the side that you can control and show your management capabilities.

Again, this shows much important the management team is. When you look at the reasons why startups fail, you may find it is the management team. If your team is bad, it is highly likely to jeopardise the company and your business.

So my suggestion is, try to form a great management team. When you’re meeting an investor, try to appeal him that you have a great team work.

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The article was first published on April 15, 2021.

Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here.

Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

Image Credit: KK Fund

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“We need to take a “Swiss cheese” approach to plastic waste management. Focusing on just one aspect of the plastic recycling and waste management system will not be enough — we have to apply multiple strategies to mitigate the complexities or “holes” in the plastic value chain,” –  Laura Benns, Director, Programs, SecondMuse. 

Plastic pollution soared from two million tonnes in 1950 to 348 million tonnes in 2017, becoming a global industry valued at US$522.6 billion, said UNEP. It is expected to double in capacity by 2040. Given the statistics, it is clear that to a capitalistic firm, the plastic industry presents a highly lucrative opportunity to aspiring and seasoned entrepreneurs alike. 

In this final part of this three-part series, we will look at some of the solutions and startups that are already in this space in Asia. 

Strategies by startups

Firstly, in the plastic waste space, the areas with the greatest room for innovation are: 

• Plastic alternatives
• Plastic reduction
• Better waste and collection methods
• Recycling

At Marico Innovation Foundation, an organisation with a keen focus on nurturing disruptive Indian innovations, they have identified that the most effective startups tend to have a mix of the following qualities: 

• The solution is cost-effective or has a path to becoming cost-effective with scale.
• The solution addresses a problem area gap that few startups are working on at present or a problem area that is severely underserved.
• The solution is based on a proprietary technology that can help the startup create a moat and be defensible as a business in the future.
• The solution should save carbon emissions on a net level.
• The solution is supplemented with strategies to procure waste in bulk and has the potential to supply an output level required by corporates.

Below are some examples of notable and interesting startups for each category in Asia. 

Also Read: Alterpacks converts food grains into bio-degradable containers to combat single-use plastics

Plastic alternatives

The startups below provide alternative materials that can replace plastic to create plastic products such as packaging. 

Startup	Founded	Country	Details
Evoware	2016	Indonesia	Produces packaging made of seaweed and algae, which provides nutrients to the soil and water when it decomposes and breaks down.
AlterPacks	2019	Singapore	Created a new material from food waste to replace plastics.
Cleanbodia	2015	Cambodia	Utilises cassava, a root vegetable grown extensively throughout Southeast Asia, to make biodegradable bags, which can decompose within five years in water, soil, and buried garbage.
Mushroom Material	2020	Singapore	Mushroom Material has developed mushroom-based packaging materials that are sustainable and compostable as a direct replacement for expanded polystyrene/styrofoam.
Evlogia Eco Care	2018	India	Produces straws made from fallen-down coconut palm leaves.

Plastic reduction

The startups in this category tackle the demand side of the plastic ecosystem, which includes directly encouraging consumers to change their consumption habits by reusing or removing the plastic component in consumer products and services. 

Out of all the categories for plastic waste solutions, this is likely the one that is the hardest to scale. Ironically, this is likely the most effective solution, as it completely removes plastic from the equation. 

Startup	Founded	Country	Details
Mottainai World Eco Town	2015	Cambodia	Refills household and personal hygiene products, enabling households to reuse plastic containers.
Klean	2012	Malaysia	Offers a Malaysian-made smart reverse vending machine (SRVM) and an app that rewards people for recycling empty PET bottles and aluminium cans with a points scheme.
AYA REUSABLE CUP	2019	Vietnam	Allows a request of an eco-friendly cup AYA at any participating coffee shop or smoothie bar with consumers’ ID code. With the Life Time Membership Pass option, consumers can drop the AYACUP at any participating location.
Siklus	2019	Indonesia	Delivers refills of everyday needs to people’s doors without plastic waste and offers refill station services.
MUUSE	2018	Singapore	Supplies restaurants and cafes with reusable and returnable takeout containers to F&B partners.

Better waste collection and sorting

The solutions under this category aim to improve the efficiency and effectiveness of waste collection systems. 

Startup	Founded	Country	Details
Ishitva	2018	India	Ishitva makes automation solutions for sorting of recyclable materials using Artificial Intelligence, Machine Learning and IoT.
P.E.T. Plastic Ecological Transformation	2017	China	Incorporates blockchain technologies in their products which are recycled from plastic materials, allowing for plastic traceability.
GEPP Sa-Ard	2017	Thailand	A one-stop shop for waste management with data and traceability.
Gringgo	2014	Indonesia	Provide on-demand services to book a truck to collect regular or specific waste types and uses artificial intelligence to give waste workers tools to track their collections and productivity.
Kudoti	2019	India	Their platform works to track and trace waste materials both internally and across supply chain partners and provides real-time data to support decision-making.

Plastic recycling

Startup	Founded	Country	Details
Magorium	2019	Singapore	By marrying the industries of waste management and construction, Magorium created an inter-industry to convert plastic waste into an innovative new material – NEWBitumen.
Ricron Panels	2009	India	Ricron is a technology-driven company that converts multi-layer plastic waste into 100 per cent eco-friendly scalable substitutes of plywood.
PURA Loop	2021	Hong Kong	Builds solutions for the treatment and recovery of non-recyclable hazardous industrial sludge and mixed plastics, and the entire process requires no pre-processing or sorting of waste.
Rebricks	2012	Indonesia	Rebricks Indonesia recycles multi-layered plastic waste into building materials with an eco-friendly production process.

Of all the categories, the category that currently has the least solutions or least scaleable solutions is the “Waste Reduction” category, especially when it includes the concept of reusing. Case in point, a study by Front Sustain highlighted that the vast majority of solutions (79.8 per cent) from waste reduction are pilots or startups, indicating that this area within the plastic waste industry still remains at its nascency.

Ironically, amongst the vast plethora of solutions, plastic reduction is the exact area that we should be focusing our resources on. A recent UNEP study confirmed that it is not recycling or carbon taxes but rather reusing that will emerge as the most promising solution. 

“Reuse – as opposed to recycling – was identified as the most effective measure, and would cut plastic pollution by up to 30 per cent by 2040 with the introduction of things like refillable water bottles, packaging take-back schemes and ‘reverse vending machines’”  – United Nations Environment Programme, May 2023.

Other solutions, such as recycling and diversifying from plastic as our most common material, are also key. The same UNEP study shed light on how recycling plastics can reduce plastic pollution by an additional 20 per cent by 2040, while replacement of plastic packaging and related materials can deliver an additional 17 per cent decrease.

Strategies from the public sector

To garner more inspiration for what the public sector can do in Asia, we can also look towards some solutions that have been offered by governments in other regions. 

Also Read: Climate conferences won’t save us: How to start taking action all year round (Part 1)

In European countries such as Germany, Deposit Return Schemes (DRS) for plastic bottles have been implemented with much success. DRS refers to adding a small deposit to the cost of a plastic bottle, which is refunded to consumers when they return the bottle for recycling. With the monetary incentive, consumers will be more inclined to change their habits, thus pushing forth a culture of recycling. This same idea can be implemented in Asian countries when we wish to also cultivate a culture of recycling instead of disposing.

Of course, this also means that the recycling infrastructures in the country must favour the easy formation of the habit — another aspect that the public sector can look towards improving. 

Funding for corporates and startups to implement better waste management practices and technology is also another aspect that is hindering the rapid transformation in the Asian ecosystem. This is something that governments should prioritise, especially with the numerous positive spillover benefits to society in terms of increased hygiene when municipal waste management systems are improved. 

In Asia, it is also worth mentioning that the informal sector plays a large role in the plastic waste industry. In fact, it contributes to 97 per cent of all PET collected for recycling in the nine cities studied in SEA, making it pertinent to include the informal sector in any solutions to increase recycling efforts.

By studying a case study in Suzhou, China and how they formalised their informal recycling system, researchers have suggested that governments of developing countries looking to integrate the informal recycling system with the following methods:

• Giving professional training to recycling practitioners and improving their recycling facilities.
• Giving the formal recycling channels a price advantage.
• Setting up information platforms.
• Optimising the layouts of recycling systems.

The role of consumers

However, having briefly discussed what the government can do, we must also look at the biggest stakeholders in the ecosystem – consumers. 

Large-scale systemic change can only be achieved should consumers be willing to change their consumption habits. In order for large-scale policy and corporate changes to take place, consumers must take a real stance and pressure governments.

Voting with our wallets by consciously choosing more sustainable products, though minuscule at the individual level, can achieve serious influence on a collective scale. For instance, in 2019, after widespread climate protests, the UK parliament declared a symbolic climate change “emergency” on Wednesday. 

Additionally, consumers should also be educated on not only the importance of recycling but also the ways in which they can contribute. For example, some countries like Japan have embraced the idea of multi-stream recycling, which is when consumers have already sorted their waste into specific categories such as plastics and glass, leading to more efficient recycling processes.

Also Read: How to navigate the investment opportunity in climate tech sector

The efficacy of the Japanese system can be seen in how around 85 per cent of all of the country’s plastic bottles are recycled, with the aim of reaching 100 per cent by 2030. 

Role of accelerators

Finally, accelerator programmes also form a key solution to increasing recycling rates in a country. To better bridge the gap between supply and demand, accelerators can provide networking opportunities to allow for a mutually beneficial relationship to be forged between corporates looking for solutions for their pain points and startups who are aspiring to scale up their initiatives. 

One such programme is HyperScale. As the inaugural waste-tech accelerator in the world, HyperScale has a hyper-focus on helping startups with waste solutions and corporates who wish to reduce or eliminate their waste in a sustainable manner.

With the programme, startups can access expert mentorship and guidance tailored to their unique business needs, connect with a powerful network of industry leaders, investors, and potential partners and accelerate their market expansion within Asia’s waste ecosystem.

HyperScale accepts applications from Seed to Series A startups working on innovative waste solutions in Electronics Waste, Plastics Waste, Food Waste, Textiles Waste, or Mixed Waste. 

Conclusion

As economies develop, everyone has a part to play in working towards a world where plastic is produced on a need-to basis. In order to maximise the effectiveness of schemes, it is pertinent that governments, corporations and consumers work hand in hand. We look forward to innovative solutions that will help to solve the plastic problem.

At the same time, corporates and governments should be unwavering and show their commitment to creating policies that will support these causes. My final words are that you, as the consumer, decide the type of life you want to lead; a life of plastic or a life that’s fantastic. It starts with you. 

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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Vietnam’s e-commerce is expected to keep growing in 2023 and rise steadily in the years to follow, supported by several growth drivers, including the wave of digital transformation, consumer trust, technological infrastructure, and advantageous processes and laws issued by the Government.

The event has been organized annually by the Vietnam E-commerce Association (VECOM) from 2017 to the present. With the theme “Smart E-commerce”, this year’s event attracts more than 2,500 individuals and businesses operating in the field of e-commerce in Vietnam and internationally.

Speaking at the opening of the forum, Mr. Nguyen Ngoc Dung, Chairman of the Vietnam E-commerce Association shared: In the context of the post-epidemic economy and affected by the wave of the world economic crisis, the e-commerce industry has been and is one of the industries with the fastest and strongest changes to adapt to the new situation in Vietnam. Exploiting the “smart” perspective in e-commerce, the forum focuses deeply on current and future e-commerce trends, business models, and solutions for e-commerce in the world.

“Smart e-commerce will be a prominent trend in 2023 when AI is considered an inevitable development trend. AI applications will completely change the e-commerce industry not only in Vietnam. Because Therefore, “Smart E-commerce will be a long story that many experts and big brands in the field of e-commerce… will share at this year’s Vietnam E-commerce Panorama Forum,” Mr. Nguyen Ngoc Dung emphasized.

Also Read: The ‘gold mine’ of food ordering apps in Vietnam

The numbers tell the truth

With over 100 cross-border e-commerce platforms, Vietnam is one of the top five countries in the world in terms of the 20 per cent annual growth of the industry, according to eMarketer. The top four platforms in the nation, Shopee, Lazada, Tiki, and Sendo, generated 135 trillion VND (US$5.73 billion) in sales last year.

The size of the nation’s retail e-commerce market was estimated to be US$16.4 billion in size last year, or 7.5 per cent of the nation’s income from the sale of products and services. Vietnamese consumers spent an average of US$260–285 online purchasing, numbering 57–60 million.

Up to 74.8 per cent of Vietnamese internet users purchased goods and services online, according to the White Book on Vietnamese E-Business 2022, with clothes and cosmetics, household goods, and technological and electrical devices being the most popular products.

Business on e-commerce and social networks is on the throne

According to the Vietnam E-commerce Association, business activities on e-commerce platforms and social networks are the highlights of Vietnam’s e-commerce industry in 2022 and the first quarter of 2023. Survey results show that up to 65 per cent of businesses have implemented business activities on social networks.

In addition, the number of employees in enterprises who regularly use tools such as Zalo, WhatsApp, Viber, or Facebook Messenger has also continuously increased year by year.

Selling on social networks is also considered to be the most effective, surpassing other forms such as business websites or applications as well as e-commerce platforms. The most prominent is the birth and strong growth of TikTok Shop. Doing business on this platform is creating a great attraction for a large number of traders across the country.

Besides retail e-commerce platforms have emerged B2B data technology platforms that connect small-scale traditional retailers with manufacturers or wholesalers on a centralized platform. By aggregating demand, platforms can provide small retailers with more choices, better prices, and more efficient logistics.

Also Read: Shoppertainment in Vietnam fuels e-commerce profitability

Competition is expected to continue to be fierce

The total revenue and output of the entire e-commerce market in the first quarter of 2023 both increased by about 22 per cent compared to the same period in 2022, but the number of homes for sale decreased sharply by 17 per cent.

At the same time, the revenue share of retail and non-professional retailers in the first quarter of 2023 decreased by 0.46 per cent compared to the same period in 2022, while the genuine stores — Shop Mall increased both market share and market share revenue.

It can be seen that amateur retailers are being left in the game and gradually withdrawing from the market. This means that profits go to really professional sellers who have invested in selling on e-commerce platforms. According to Metric’s forecast, the shift to the Shop Mall model will be a trend for sellers to increase their reputation and revenue on e-commerce.

In addition, before the rapid development of logistics, domestic sellers also face stiff competition from foreign sellers. To be able to survive and develop, business people on the e-commerce floor need to prepare carefully for all factors, starting right from the step of analyzing the market and developing an effective business strategy.

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It is the world, but bigger and more accessible. It is a vision of the internet’s future — a single, shared, immersive, persistent, 3D virtual space where humans experience life in ways they could not in the physical world.

Essentially an interoperable online space, the metaverse merges physical and digital reality, giving people across the globe a space to shop, socialise, trade and interact with one another. All you need is an internet connection. 

And with the integration of metaverse technology such as AR, VR, 3D displays, haptics and more, the ultimate goal of creating a seamless, immersive experience that provides new ways to connect and collaborate seems almost within reach.

Coming from a career in Business Analytics and Strategy Planning, the metaverse and its implications were something almost dreamlike for me, especially its ability to foster empowerment and inclusivity in the community. Of course, this does not always guarantee equal opportunities. 

Addressing the “miss-ues”…

Some of the problems from reality seem to have tailed us into the metaverse — right at the foundational level. Imagine a space for limitless connection, unlimited opportunities to reach out and network, and still navigating people who think that tech “isn’t really for girls”. 

It’s no secret that gender imbalance and inequities are something the tech sector has long faced criticism for, as evidenced by renowned tech giants like Apple and Meta maintaining a male-to-female employee ratio of 6:4. While there is some hope in the growing trend towards greater gender inclusivity in the tech sector, with 41 per cent of applicants to the field consisting of women between 2020 to 2021, more needs to be done. 

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

Beyond the process of actually joining the field, a major obstacle for women in tech is constantly having to deal with implicit gender bias within the workspace. A blunt example would be the GitHub coding case: When the gender of coders was undisclosed, computer code authored by women had an acceptance rate of 78.6 per cent on GitHub, which is four per cent higher than that of code written by men. However, when contributors’ gender is identifiable, the acceptance rate of code written by men tends to be higher.

In spite of women being more than capable, there remains a belief that technical roles are more suitable for men — which only further compounds the notion that women are not naturally inclined or competent in technology-related fields.

Instead, women are believed to be more sensitive and empathetic rather than tech-savvy. Consequently, women have been underrepresented in technical positions, with a greater emphasis placed on non-technical roles such as project management or user experience.

…and dodging them

The resultant domino effect does not bode well for the future of women in IT. Bias also impedes our professional advancement, leaving us overlooked for promotions or experiencing unequal pay compared to our male counterparts.

With stereotypes keeping women firmly entrenched in specific roles, young girls entering the tech arena find themselves without any representation, making even envisioning a successful future in the field a challenge. But there are some ways to get around these roadblocks. 

Playing your strengths and focusing on achieving your tasks as quickly and efficiently as possible — hard to argue about your inability to manage a task when the task is already done! As for arguments that women are more ‘emotional’, it always helps to have the relevant data and evidence ready to add weight to your arguments. Substantiating decisions, arguments, or opinions with factual information prevents them from being discredited as solely emotional or subjective.

In the workspace, know your allies, both male and female. These are the people who will provide unwavering support, empowerment, and encouragement to strive for excellence. Recognising and appreciating managers and male allies from previous workplaces can be particularly beneficial. And most importantly, communicating, voicing one’s aspirations and taking the initiative to create opportunities is crucial. 

It’s important to challenge gender stereotypes and recognise the individual potential in all areas of tech in order to create a more inclusive workforce that will leverage everyone’s talents, regardless of gender. By enhancing the visibility and acknowledgement of accomplished female tech leaders, we can foster a more inclusive and equitable industry that benefits everyone — and we have to start at the roots. 

Also Read: Women in tech have leaned in enough. This is what we should do instead

In Malaysia and across Asia, students’ career choices are often limited by cultural influence, parental expectations, and a lack of awareness about alternative paths. The cultural emphasis on prestigious professions in fields like medicine, law, business, and engineering reinforces this narrow focus. To address this, two strategies can be implemented: promoting STEM education and fostering industry-academia collaboration.

Why IT matters, and why it matters

Enhancing STEM education from an early stage introduces students to technology-related fields and cultivates their interests and skills. Curriculum enhancements and engaging teaching methodologies can achieve this goal. Close collaboration between the tech industry and educational institutions is equally crucial.

Internships, apprenticeships, and industry-led training programs provide real-world tech experiences and inspire students, including women, to pursue tech careers. Industry professionals serve as mentors, guiding students in career exploration.

More than overcoming traditional career limitations, we need to implement these strategies to broaden perspectives and empower and guide students with the necessary skills to explore diverse tech career paths. The metaverse is a mine of untapped potential, and we have both the talent and the drive to unleash that same potential, regardless of gender. It is time we utilise it.

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Poko, a Singapore- and Vietnam-based startup facilitating local fiat payments for Web3 applications, has raised US$4.5 million in a seed funding round from Y Combinator, NAZCA, and Global Founders Capital.

Goodwater Capital, Soma Capital, Amasia, CreditEase, Dentsu Ventures, Orange DAO, and MS&AD Ventures also participated.

Poko was founded by Geoffrey See and Van Tran after their social commerce firm Shoppa had to pivot its business model in March 2022. Poko enables seamless transfers from local payment rails to Web3 infrastructure, expanding user acquisition for Web3 wallets, marketplaces, games, and DApps.

With Poko’s SDK, Web3 builders can enable fiat-to-crypto on-ramping with over 100 common local payment methods or easily pay for NFTs with local payment methods.

Also Read: GM.co launches crypto-exclusive B2C e-commerce marketplace

Currently, Poko concentrates on two primary products: an on-ramp aggregator and a direct checkout solution.

Poko’s fiat-to-crypto onramp aggregator reduces on-ramping costs by up to 70 per cent and increases transaction success rates by up to five times through smart routing logic and a single integration to multiple onramps. Its Direct Checkout solution enables one-step purchasing from fiat payment rails from any smart contract for 79 per cent higher user conversion.

The company said it has over 11 million active wallets using its payment rails across markets in Latin America, India, and Southeast Asia.

Some of the projects in Poko’s pipeline include a virtual card offering on Visa and Mastercard rails and a savings product that would enable users to earn interest on their stablecoin holdings.

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Amidst the challenges of a tough funding climate, e27 is launching an exciting new article series called Angel’s Advocate to provide fresh perspectives on angel funding. In this exclusive series, we sit down with prominent angels to hear their stories and strategies and gain unique insights about the early-stage financing space.

Amit Parekh, the VP of Revenue and Fintech at Eureka AI, is a seasoned enterprise leader with a track record of over 20 years in developing high-growth annuity businesses. His domain expertise spans across multiple areas, including banking, credit risk, scoring, payments, fraud management, compliance, and AI/ML Ops.

With a proven ability to scale enterprise B2B SaaS businesses across the US, ANZ, and APAC, Parekh is an active angel investor and trusted advisor to numerous AI, analytics, and fintech startups.

In this edition, Parekh shares his take on angel funding.

Edited excerpts:

How do you typically approach investing during a funding winter?

In terms of investing approach, not much has changed. As an angel investor and advisor, I typically get involved early, at pre-seed or seed stages. Overall, the deals haven’t undergone significant changes.

However, one notable change is that some founders now have more realistic expectations. Compared to the booming days of 2021, I have observed a greater willingness among founders to invest time and listen to feedback. Previously, deals were rushed, with limited interaction and due diligence, and investors often relied on basic criteria such as the space the venture operated in or the founder’s pedigree, along with the names of other potential angels or VCs involved.

Presently, the market reality indicates that later funding rounds, including Series A, are taking longer and happening at a slower pace than anticipated. In my focus on B2B ventures, it has become crucial to achieve revenue, secure good margins, and ensure sustainable and profitable growth before seeking further funding. Therefore, it is vital for the team to have a clear roadmap, sufficient runway, and an execution approach post-seed round to achieve these milestones.

The funding winter has also opened up opportunities for founders to access capital from angels and angel syndicates, resulting in an improved flow and access to funding. Consequently, investors have become more selective, now considering ventures in early stages that demonstrate some revenue, signed proof-of-concept (POC)/pilot programs, or joint development agreements rather than solely relying on a pitch deck.

What are your typical investment criteria?

Most of my investments typically fall within the pre-seed or seed stage, with some extending to the pre-Series A stage. I engage as an advisor and angel investor, either directly or through angel syndicates.

While I have made investments across various domains such as fintech, software/technology, biotech, consumer durables, and e-commerce, I tend to have a bias towards areas where I possess experience and expertise and where I can provide valuable assistance to the team. Specifically, my focus lies in AI/ML platforms, B2B-focused SaaS businesses, and ventures operating in the banking and enterprise verticals.

Also Read: Pure ideas with no executions to prove do not attract savvy investors: Shao-Ning Huang of AngelCentral

My background and passion for credit scoring, wealthtech lending, alternate data, payments, and fraud detection have also led me to invest in and collaborate with innovative ventures in these areas. As a result, there is a noticeable bias in my portfolio towards fintech, AI startups, and enterprise SaaS, driven by both my network’s recommendations and the alignment with the venture’s needs and my capabilities.

Geographically, my initial investments and deal flow were primarily concentrated in Southeast Asia (SEA) and India, but I have since expanded my investments to include ventures across the US, Israel, and the UK in addition to SEA and India. I hold a strong belief in the growth potential of SEA and India, particularly within the sectors I mentioned, which serves as one of my investment criteria.

Participating in and contributing to angel networks and syndicates has been instrumental in broadening my access to opportunities in terms of both domain expertise and geographic reach.

Can you describe your investment process from initial contact to closing a deal?

The investment process varies depending on whether it’s a direct deal or a syndicated investment. For direct deals, where I am taking the lead, the approach is relatively straightforward, often facilitated through a known network introduction.

The initial screening involves conducting quick desktop research, which includes understanding the industry landscape and reviewing any available news, demos, or online videos related to the venture. Additionally, I delve into assessing the key personnel involved, their prior experience, and their involvement with other investors or advisors.

Following the initial screening, a business pitch session or discussion meeting takes place to gain a deeper understanding of the venture, including its product, key personnel, financials, roadmap, and key challenges. The discussion also explores the envisioned trajectory and potential game-changers for the venture.

Subsequently, I validate the market, founder, and venture through my network, which may involve seeking input from fellow investors, advisors, clients, or other industry ecosystem players.

In many cases, specific negotiation of terms is not necessary as the venture may already have existing terms in place with other investors or venture capitalists, typically with standard terms and contracts. The entire process for direct investments usually takes a few days, while syndicated investments may require one to two weeks to complete.

How do you evaluate a startup’s potential for growth and success?

In addition to standard total addressable market (TAM), serviceable obtainable market (SOM), and serviceable available market (SAM) metrics, primary research involves evaluating a realistic TAM and achievable market based on the region or market in which the venture currently operates.

This evaluation takes into account the specific segment the venture is targeting and compares it to industry data, competitors, and public company information. It is essential to focus on sectors that are experiencing growth and have regulatory or industry tailwinds, such as the recent adoption of AI or the emergence of generative AI-based solutions.

Taking a localised example, in Southeast Asia (SEA), there has been significant adoption of digital onboarding in the banking sector in recent years. Startups operating in this space have benefited from this trend. However, it has also led to a rise in identity and application fraud, creating opportunities for ventures focused on identity, fraud detection, and authentication.

It is important to recognize that a startup’s potential is closely tied to the founding team’s experience, expertise, and track record. Building a successful venture requires a team effort, and while solo founders can succeed, scaling can be challenging.

Therefore, it is preferable to have two-three co-founders who bring complementary skills and experiences to the team. This is crucial for navigating challenges and driving growth. When evaluating the team, it is important to assess founder dynamics, clarity of roles, and the ability to work collaboratively across domains and roles during the initial stages of the journey.

How important is the founder’s experience and background when making investment decisions?

Evaluating the founding team is indeed a crucial criterion when assessing an early-stage venture. At the pre-seed/seed stage, there might not be much else to rely on, as product-market fit, financials, GTM metrics, and customer retention metrics may not be fully developed or have a small sample size. Additionally, most startups are likely to pivot from their initial approach or focus area.

When evaluating the founding team, I utilise a model called RATE, which stands for:

• Resilience: Successful founders possess resilience, which is a combination of determination and the ability to overcome challenges and problems along the entrepreneurial journey. Understanding the founders’ connection to the problem or domain they are addressing, their passion to solve it, and their motivation helps gauge their resilience and how they will react when faced with setbacks.
• Adaptability: The founding team’s adaptability is crucial in responding to market changes, shifts in the competitive landscape, and evolving customer preferences. A team that is open-minded, flexible, and willing to listen to new ideas, experiment, test, and learn has a higher chance of success.
• Track record and credibility: Evaluating the founders’ track record, including previous successes or failures, provides insights into their experience and the lessons they have learned. Some of the most successful founders have gone through failures and gained valuable experiences that help them avoid making the same mistakes again.
• Experience and expertise: Beyond their domain knowledge, it is important to understand the founders’ experience and expertise. They may not necessarily come from the same industry, but what matters is their unique insight and approach to the identified problem or gap. Experience in hiring and building a strong team is also paramount.

By assessing the founding team based on these criteria, one can gain a deeper understanding of their potential to drive the venture’s success.

Can you share your successful investment and what made that investment successful?

Most of my investments are focused on pre-seed and seed stages, which means the exit or liquidity events are still a while away.

However, I have had successful exits in some later-stage investments. One example is Taulia, a company that offers working capital management and supply chain financing. Taulia’s success was driven by continuous innovation, leveraging cloud-based platforms, data analytics, and AI models to streamline the supply chain finance process. They had a strong leadership team, industry expertise, customer focus, and impressive financials.

Their strategic partnerships with banks, technology providers, consulting firms, and industry associations contributed to their growth and eventually led to their exit when SAP acquired them as part of their Business Network. Taulia’s strong balance sheet and consistent positive cash flow were notable factors. While I joined this investment at a later stage, I would have loved to be involved earlier.

In a related area, I invested in a venture that provides non-dilutive revenue-based financing for e-commerce businesses. They have experienced rapid growth, achieving returns of four-five times in just a couple of years and reaching unicorn status.

Also Read: Your investors are your number one fan: Tina Di Cicco of Manila Angel Investors Network

They benefited from the e-commerce boom during the COVID-19 years, with substantial revenue growth in 2021 and even higher growth in 2022. However, the current macro environment poses challenges, and I continue to closely monitor this space.

On the other hand, it’s important to acknowledge that not all investments go according to plan, despite having the right ingredients and meeting all the criteria. Angel investing is inherently risky, and not all early-stage ventures succeed.

I had an investment in an AI/MLOps player with a distinguished team and a strong pedigree in the data analytics space. They operated in a hot segment providing DevOps tools for data science in the growing AI space, attracting investments from top-name VC firms.

However, they struggled with the burn rate and couldn’t secure the follow-on funding they needed. While they managed a strategic exit, the liquidation preferences meant that those holding ordinary shares didn’t receive any returns.

It’s important to highlight both successful and unsuccessful investment examples to provide a balanced perspective on the outcomes and risks involved in angel investing.

What are some common mistakes that startups make when pitching to angel investors? What are some myths about angel investment?

While angel investments may involve smaller checks compared to VC investments, it is important for founders to maintain their intensity, energy, and professionalism when pitching to angels. Just like with VCs, founders should conduct thorough research on the angel investor’s investment thesis, past investments, and areas of expertise and interest.

Many founders make the mistake of approaching multiple angels or family offices without adequate preparation, relying on a numbers game to secure funding. However, every pitch meeting is crucial, and founders should approach it with the same level of seriousness and preparation as they would with VCs.

Angels, often being professionals or practitioners with experience in the field, can provide valuable advice, feedback, and insights. They can help founders fine-tune their messaging for future VC pitches. Angels are more likely to delve into the details of the market, product/technology, and sales approach, so being well-prepared is essential.

Regarding myths about angel investing, one common misconception from the founders’ perspective is that angels are solely motivated by quick financial returns. While financial returns are indeed an important consideration for angel investors, many angels, including myself, invest for reasons beyond just financial gain.

Angels often enjoy working with innovative ideas, mentoring founders, sharing their experiences, and supporting the startup community. Passion for a specific problem, domain, or technology also drives angel investors. Another myth is that angels should be quicker to decide and more open to all who approach them due to their smaller check sizes.

In reality, many successful angels are highly selective in their investment decisions. They consider not only the capital they are investing but also the value they can bring, the time commitment, and the potential for mutual benefit. Good angels are patient and selective, willing to fold many hands until they find a venture that aligns with their criteria and interests.

From an investing perspective, one myth close to my heart is the belief that angel investing requires a large amount of capital. This is not necessarily true. If you can demonstrate the value you can bring, many founders may be open to accepting smaller checks or finding ways for you to participate in their venture.

Additionally, with syndicate networks, crowd investing, and token sales, it is possible to get started with smaller investments, even as low as US$1,000. I firmly believe that the best way to learn is by doing, and by getting involved in syndicates and angel communities, you can learn from the experiences of others, share insights, and start with smaller capital at risk.

How important is the alignment of values between the investor and the startup founder?

Maintaining alignment of values is a critical factor and something to assess prior to making an investment. When values are aligned, it facilitates a working relationship with reduced conflict, a shared sense of purpose and passion for the desired outcomes, and increased trust and open communication. This alignment also ensures that the advice and strategic input provided by the angel investor are in line with the business and more likely to be acted upon.

Also Read: I use strategies such as diversification to manage risks: Blockchain expert Anndy Lian

How do you manage risk when investing in startups? Are there any specific metrics or indicators you look for?

First and foremost, it’s important to acknowledge that perception and risk appetite can vary based on individual factors such as portfolio size, personality, and timelines. With that disclaimer in mind, managing risk in this asset category follows similar advice to general investing principles.

Firstly, it’s crucial to educate yourself and understand how angel investing works. Familiarise yourself with basic valuation and financial analysis techniques, create an investment thesis and criteria, and stick to them. Diversification is key, both geographically and across different domains, stages of investment, and industry segments/sectors. Angel investing, like any early-stage venture investing, involves a degree of a numbers game.

Making multiple investments increases your chances of achieving a decent return, even with a relatively low success rate. At the seed stage, only about 1 in 10 companies make it to Series A, and the number drops even further to 1 in 100 for the pre-seed stage. If a startup manages to raise a Series A, only around 20 per cent survive to an exit.

Based on your desired return and assuming a 10 times return on successful investments, you can determine the number of investments required and the capital allocation for each. Maintaining consistency in deployment can help avoid excessive losses, and doubling down on successful ventures by participating in their follow-on rounds can be beneficial. This approach provides more insights and data on the business compared to investing in new ventures.

While there are numerous metrics to consider, they encompass financial metrics such as burn rate and capital efficiency, market-related metrics, operational metrics, and sales metrics like customer acquisition cost (CAC), customer lifetime value (LTV), and time to break even on a customer.

In addition to metrics, honesty and integrity in representations are crucial. Conduct basic due diligence to ensure the accuracy of information provided by the startup. Instances of misrepresentation, such as false claims about existing investors or firm interests, can be avoided through thorough investigation.

To reiterate, it’s important to understand that the guideline numbers I mentioned are examples, and relying solely on averages can be misleading. Individual outcomes can deviate significantly. Angel investing carries risks, including the possibility of losing some or all of your capital. Therefore, only invest an amount that you are comfortable losing and still able to maintain peace of mind. As a personal example, I allocate five per cent of my overall portfolio to angel investing.

Can you share any advice for startups looking to raise funds from angel investors?

Maintaining a professional and engaged relationship with your angels is crucial even after the investment. It’s important to treat them as valuable partners and leverage their expertise and network for strategic advice, introductions, and support.

One of the best practices I’ve observed is founders providing regular updates to their angel investors. These updates can be in the form of monthly or quarterly summaries that highlight the progress of the business, challenges being faced, and any specific areas where assistance or support may be needed. These updates can be shared via email or a document, keeping the angels informed and engaged in the journey of the startup.

Unfortunately, some founders tend to become less communicative once the investment is secured. This can lead to a loss of potential benefits from the angel investors’ knowledge and network. By maintaining regular and transparent communication, founders can foster a stronger relationship with their angels and continue to benefit from their insights and support throughout the growth of the business.

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Dear Pro member,

Good day!

TikTok is doubling down on Southeast Asia.

The short video app, owned by China’s ByteDance, said it plans to invest billions of dollars in the region over the next few years. This will further accelerate the competition in the e-commerce market in the region, which is dominated by Shopee, Lazada, and Tokopedia. This will further bleed all these e-commerce giants, some of which are under pressure from the VCs and the market to achieve profitability. The end consumer will be the ultimate winner as he will have more choices.

In 2022, TikTok facilitated US$4.4B worth of transactions across the region, a jump from 2021’s US$600 million in 2021. However, Shopee with US$48B in 2022 transactions still leads the pack.

The TikTok news is the highlight of today’s Ecosystem Roundup.

Let’s also take a look at the other major developments from across the region.

Have a great weekend.

Sainul
Editor.

TikTok to invest billions of dollars in SEA to boost e-commerce business
Southeast Asia, a region with a collective population of 630M – half of them under 30 – is one of TikTok’s biggest markets in terms of user numbers, generating more than 325M visitors to the app every month.

East Ventures grows AUM to US$1.5B as ESG takes priority for investments
The VC firm is putting ESG and sustainability at the forefront of its investments, following a two-pronged approach of “doing good and avoiding harm”; East Ventures has more than 300 portfolio firms operating across 30 countries.

Peter Thiel backs Recharge Capital’s US$200M women’s healthcare fund
The fund will find investment and roll-up opportunities in the women’s fertility value chain across SEA, LatAm, Europe, and the Middle East; Its efforts will focus on international fertility tourism, menstrual wellness, and women’s disease prevention.

Philippine VC raises US$12M to back SEA startups from the ground up
Kaya Founders now has US$16.5M in committed capital and looks to bump that up to US$25M; Kaya Founders’ two new funds are the Zero to One Fund (for pre-seed startups) and the One to Ten Fund (for seed to series A startups).

Poko raises US$4.5M to reduce Web3 payments friction
The investors are YC, Goodwater Capital, and GFC; Poko is Web3 payments startup based in Singapore and Vietnam; It enables seamless transfers of assets from local payment rails to Web3 infrastructure.

Singapore’s Inex Innovate acquires Yourgene Health Taiwan for US$4M
With the acquisition, Inex Innovate – which specialises in women’s and fetal health – will see increased capabilities in biobanking, bioinformatics, fetal health and oncology R&D, as well as clinical lab services for gynecological and reproductive health cancers.

Decentralised Gaming Ventures wins 7-figure amount for SEA investments
The funding will help Decentralised Gaming Ventures acquire and support emerging game development teams in Southeast Asia and provide them with access to world-renowned entertainment IPs.

Indonesia’s embedded lending startup Finfra raised US$1M
The investors include DSX Ventures, Seedstars International, and Cento Ventures; Finfra plans to utilise the newly acquired funds to expedite product development and expand its engineering, data, and finance teams.

SG’s Pilon secures new funding to bolster presence in the Philippines
The investor is Kaya Founders; Pilon offers a cloud-based supply chain financing system; It collaborates with banks and financial institutions to digitalize their factoring processes.

SOSV backs 9 startups in latest accelerator cohort
Each participant received initial funding of US$180K from its Orbit Startups programme; Orbit encompasses SOSV’s Chinaccelerator and MOX programmes.

GM.co launches crypto-exclusive B2C e-commerce marketplace
GM.co’s Beta platform, launched in March, has already added over 1,000 items, including apparel, shoes, luxury items, and collectibles, besides extraordinary offerings like Mech pilot training, a luxurious omakase yacht experience.

Ex-Chope VP Cassandra Ong launches remote-based marketing consulting firm OtterHalf
OtterHalf brings over 10 years of combined experience in marketing and design within the tech industry, with 100+ campaigns and partnerships.

Longan Group named as winner of 2023 TOP100
TOP100 winner Longan is an ethical, inclusive debt management company supporting consumers and financial institutions to manage their finances more efficiently.

These 11 AI companies caught our eyes at Echelon Asia Summit 2023
At Echelon Asia Summit 2023, a number of AI companies from various countries opened their booths to showcase their innovation.

Collaboration with corporates plays a crucial role in climate tech startups’ success
However, cultural differences between corporations and climate tech startups mean there have to be some adjustments.

‘Develop a wartime mindset during global crisis like this’: Xendit CEO Moses Lo
More than ever, we need to band together through crucible moments in wartime, says Moses Lo; Xendit provides payment solutions and simplifies the payment process for SMEs, e-commerce startups and large enterprises.

These Malaysian sisters’ startup Manis Leting produces condensed milk with zero white sugar
Manis Leting also makes products, such as cordials, café syrups, and sweeteners, which are lower in calories but still retain the sweet taste.

Sustained profitability is crucial for long-term success: PolicyStreet CEO
‘PolicyStreet strikes a balance between prudent expectations and aspirational targets, aiming for sustainable growth while considering the realities of the economic climate’.

The days of the ZIRP raise-cash-burn-cash model are gone: ZUZU Hospitality CEO
VCs now look for strong business models, and there is a lot of capital ready to be deployed in sensible startups, says ZUZU Hospitality’s Vikram Malhi.

Start building a solid financial foundation early when your team is small: Aspire CEO
Aspire has been developing efficient GTM approaches, forging strong partnerships and working on unit economics to achieve profitability.

Our company culture thrives on creativity and collaboration: Daryl Lim of MetaPals
We aim to foster an environment that empowers each member of our team to reach their full potential, says the Co-Founder & COO at MetaPals.

ApartX allows landlords to share their properties via smart home solutions remotely
ApartX automates up to 90% of the operation process of 1,700 properties by using biometrics, smart locks, and digital sign technologies.

Breaking gender barriers in the metaverse: Women pioneering emerging tech
The metaverse is a mine of untapped potential, and we have both the talent and the drive to unleash that same potential, regardless of gender.

Unstoppable surge: Vietnam’s e-commerce growth continues to soar
With over 100 cross-border e-commerce platforms, Vietnam is one of the top five countries in the world with a 20 per cent annual growth.

Life in plastic, it’s not fantastic: Unearthing the solutions (Part 3)
As economies develop, everyone has a part to play in working towards a world where plastic is produced on a need-to basis.

Life in plastic, it’s not fantastic: Understanding the problems (Part 2)
The lack of proper plastic recycling infrastructures and enforced schemes is a pertinent area that must be addressed; The greatest problem when it comes to recycling plastics on a large scale is its cost.

The battle for regulation: Can cryptocurrency be tamed?
As the United States cracks down on crypto exchanges, there is a growing sense that regulatory clarity is lacking.

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While tens of trip-planning apps are in the market, only some have made the best use of Artificial Intelligence technology.

Malaysian online travel startup Triphie is one.

Created by Nour Araar and Esther Koon and launched in 2022, Triphie is a personalised trip planning app that provides all-in-one booking and comprehensive travel assistance.

Triphie stands out from other trip-planning apps for its curated and optimised data and tailored recommendations for Malaysia. “While other apps may provide general trip-planning features, Triphie focuses on delivering highly personalised recommendations and a seamless booking experience for users exploring the Southeast Asian country,” says Co-Founder Araar.

Araar, who oversees all technical aspects of Triphie, has extensive experience in the tech field. Araar is a software engineer with work experience at BigPay and Fave. Koon is a product designer at Choco.

Also Read: These Malaysian sisters’ startup Manis Leting produces condensed milk with zero white sugar

AI plays a crucial role in analysing user preferences, historical data, and real-time information to provide personalised recommendations. This allows Triphie users to receive tailored suggestions for accommodations, attractions and activities based on their preferences and interests.

AI also helps the platform optimise travel itineraries and enhance the overall user experience.

“Our approach to personalised and collaborative trip planning involves actively empowering users to participate in the planning process. Users can input their preferences, such as preferred activities, budget, and travel dates, and Triphie’s AI algorithm uses this information to generate customised itineraries,” Araar explains.

Triphie also encourages users to share their trip plans with others, enabling group planning and “seamless” coordination.

Initially, the app targets domestic and international travellers looking to explore Malaysia. Araar claims it has gained a substantial customer base since its launch, attracting travellers interested in exploring Malaysia.

The company also sees massive opportunities in other countries in APAC as it grows. “Our focus on personalised trip planning and leveraging AI technology can be applied to other regional destinations, providing users with tailored recommendations and booking services. We have plans to gradually expand into other APAC countries, tapping into the growing international and domestic travel markets,” he adds.

Triphie’s revenue model is primarily based on commissions from bookings made through its website. It has collaborated with hotels, airlines, and other travel service providers, earning a commission for each successful booking made through Triphie.

The company plans to introduce premium features and explores partnerships with local businesses to introduce new revenue streams.

While the company has made some traction, the competition from established players in the travel industry is making things a bit tough. Other than this, building brand awareness among potential customers is also a key challenge. However, Nour is confident that the company will be able to make a mark.

Also Read: Manis Leting, Triphie win 1337 Ventures’s Alpha Startups pre-accelerator programme in MY

Last week, Triphie secured pre-seed funding of about RM50,000 (US$11,000) as part of the Alpha Startups pre-accelerator programme run by 1337 Ventures. It will use the capital to enhance its technology infrastructure, expand the team, and accelerate its marketing efforts to increase brand awareness and user acquisition.

“As we grow and scale, we may consider raising additional funds to fuel our expansion plans and further improve our product and services,” Araar says.

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Xendit provides payment solutions and simplifies the payment process for SMEs, e-commerce startups and large enterprises in Indonesia, the Philippines, and Southeast Asia. 

Founded in 2015 by Moses Lo (CEO), Tessa Wijaya (COO), Bo Chen (CTO), and Juan Gonzales (Principle Software Engineer), Xendit enables businesses to accept payments (from direct debit, virtual accounts, credit and debit cards, eWallets, retail outlets, and online instalments), disburse payroll, run marketplaces and more on an easy integration platform supported by 24×7 customer service.

The fintech firm serves over 3,000 customers, including Samsung Indonesia, GrabPay, Ninja Van Philippines, Qoala, Unicef Indonesia, Cashalo, and Shopback.

Xendit, the first Indonesian startup to graduate from Y Combinator, became a unicorn in 2022. Last year, it closed a US$300 million Series D investment round. It has raised US$535 million across several rounds of funding so far, and its investors include Coatue, Insight Partners, Tiger Global, Accel, Amasia, and Goat Capital.

Also Read: Xendit bags US$64.6M Series B led by Accel to scale its digital payments service across Southeast Asia

In this interview, CEO Moses Lo discusses the company’s journey and achievements and how it navigates the current global economic crisis.

Excerpts:

How has been the past 2-3 years for the company from a business growth perspective?

It has been great. We have continued growing fast and are proud of our growth coming out of COVID-19. It is also good to see our new markets growing well too.

How does the current global economic slowdown affect your business, and what steps have you taken to mitigate any negative impacts? Have you noticed any changes in customer behaviour or demand, and how have you responded?

We see a general slowdown in the economy which means we see slower growth from many of our customers. To respond to this situation, we’ve looked for new types and new verticals of customers that we can help with our products and services.

We continue to talk to our customers about what they need the most and what’s important to them during this period. We focus on parts of the product that can increase efficiency and solve the pains that customers are talking about

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

In a macro environment like this, the money you get won’t be as cheap as when the markets were good, so we need to be more controlled and aware of costs relative to revenue.

Can you speak of recent fundraising efforts and how the current economic climate impacted those efforts?

We were lucky to raise enough funds when markets were strong. Our latest round was a Series D in 2022. We’ve managed the cash wisely, so we have a long runway. So we don’t need to raise more money for a long period.

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

We’re putting greater emphasis on the return on investments (ROI) of teams and initiatives. This means making sure we are being more careful in spending money, and when we do, we make sure that the ROI is there.

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

From a product point of view, times like this bring different challenges from our customers, so we are adapting to meet their needs (e.g. increasing conversion rates increases ROI on our merchant spend).

Also Read: Xendit becomes a unicorn after a Tiger Global-led US$150M Series C round

Our war chest allows us to form strong partnerships with other tech companies.

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

For a long time, with previous market conditions, startups focused more on short-term wins rather than long-term goals. Macros now provide an excellent shift to better balance the two – which means we can also focus on and achieve our long-term goals.

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

We’ve already expanded into Malaysia and will continue to see more opportunities in these macro conditions. Southeast Asia presents many growth opportunities, and we’re looking at more countries for expansion.

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

More than ever, we need to band together through crucible moments in wartime – these are often the best opportunities for teams to bond because you know you can make it together.

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

Given the macro-environment, more companies are moving down the profit and loss (P&L). There’s still an appetite to ensure growth, and those that can scale are more valued than those that can’t. Contribution margins and lower parts of the P&L matter more these days.

What learnings can early or growth-stage companies take from late-stage companies?

If I knew I would get here, I could’ve done many things to prepare for this scale, such as putting in the proper mechanism to support large-scale distributed teams. Amazon has excellent advice and experience doing this well.

How is the mindset and cultural shift happening internally since we are in a high-interest rate environment and funding isn’t going to be as easy as before?

At Xendit, we’re spending a lot of time doing three things:

1. Setting the context: developing a “wartime” mindset

2. ROI and accountability: measuring the ROI of every single initiative/person/idea and forcing much greater responsibility for decisions, resources, etc.

3. AI: the advent of AI means we can be much more productive at higher quality. For example, our engineers saw 60–6,000 per cent capacity and efficiency improvements.

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The post ‘Develop a wartime mindset during global crisis like this’: Xendit CEO Moses Lo appeared first on e27.