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Enhancing cyber supply chain resilience: A vision for Singapore

Singapore’s transition into a technologically advanced nation has been nothing short of spectacular. The streets, gleaming with advancements, tell tales of the country’s leap into the digital era.

However, with this swift embrace of technology, we have found ourselves in the midst of a cyber battlefield where Critical Information Infrastructures (CIIs) remain paramount to our national functioning.

I recall a conversation with a young entrepreneur poised to digitalise his family business. His enthusiasm was palpable, but he couldn’t help but express his concerns about the emerging cyber threats. This is the paradox of our time: while technology opens up doors to vast potential, it concurrently ushers in unprecedented challenges.

A particularly disconcerting threat is the supply chain attack. Here, the enemy is not knocking on the front door but sneaking in through the back. They exploit trusted vendor relationships to infiltrate customer environments. It’s the digital equivalent of a Trojan Horse strategy, and Singapore’s intricate CII networks are notably vulnerable.

Recognising this, Singapore introduced the CII Supply Chain Programme, a beacon of hope designed to empower and safeguard our cyber realm. But what does this entail for stakeholders?

The Programme delineates five initiatives:

  • CII Cyber Supply Chain Assessment Toolkit: Imagine giving CIIOs a pair of technologically advanced glasses that allow them to visualise cyber supply chain risks, extract insights, and offer real-time transparency to multiple layers.
  • Cyber Contractual Handbook for CIIs: This becomes the “rulebook”. It ensures CIIOs can confidently negotiate contracts with vendors, ensuring stringent cybersecurity practices.
  • Vendor Certification Programme: A proverbial stamp of approval. It ensures that vendors step up to the plate, meeting and exceeding security benchmarks, driving them towards optimal cybersecurity hygiene.
  • Cyber Supply Chain Learning Hub: Knowledge is the weapon of the 21st century. This hub fosters the sharing of intelligence, bridging skill gaps, and raising cybersecurity awareness beyond just IT departments.
  • International Cooperation: This positions Singapore on the global cybersecurity stage, collaborating with international partners to create a united front.

Also Read: #dltledgers unveils 2023 trends in supply chain digitisation

These initiatives are not merely administrative directives; they reflect a collective aspiration. They challenge stakeholders to rally together, pushing for Singapore’s resilience against cyber adversities.

In the midst of this transformation, I often ponder about the tools and systems that can aid this ambitious endeavour. One such solution is IMMUNE X-TPRM by Responsible Cyber. As cyber threats diversify, IMMUNE X-TPRM offers a holistic approach, facilitating third-party risk management. It’s akin to having a trusted general on the battlefield, guiding the troops to ensure robust cyber defence strategies.

As someone deeply entrenched in the cybersecurity domain, I believe that the human element is as critical as technological advancements. Behind every code, firewall, or system, there’s a person with hopes, fears, and aspirations. It’s these very emotions that drive us towards creating a cyber environment where technology serves humanity, not the other way around.

To every stakeholder, from CIIOs to vendors, this is a clarion call. We’re not just safeguarding systems or data; we’re preserving our way of life, our dreams, and our future. The CII Supply Chain Programme is not just a national strategy; it’s a testament to Singapore’s vision, resilience, and commitment to staying ahead in the cyber age.

In closing, I urge organisations and individuals alike to delve deep, understand the essence of these initiatives, and actively participate in our collective journey towards a secure cyber future.

Let’s march forward, with determination and unity, into a digitally secure dawn!

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TikTok vs Shopee EC war in SEA: How can startups leverage the competition?

In this piece, we spotlight several startups riding the waves of social and live commerce in Southeast Asia while leveraging the war that is going on between TikTok and Shopee. For my Founder readers, I hope you can bring some good takeaways from this article.

E-commerce battle heats up: TikTok and Shopee amp up investments

Shopee has been focusing on profitability, turning EBITDA-positive since the 4th quarter of 2022. After three quarters of focusing on efficiency, in their latest earnings call in August, Shopee stated that they “believe now is the right time to start re-accelerating our investments in growth“. Shopee is willing to risk their bottom line again and is prepared for this to “result in losses“. This is certainly a clarion call made in response to TikTok’s aggressive expansion in the region.

Over the past 12 months, TikTok has become the third-largest e-commerce player in major markets in the region. In Indonesia, TikTok is keeping Bukalapak and Lazada on their toes. Although TikTok is setting a target to unseat Lazada by the end of 2022, achieving this goal won’t be easy. In response, Lazada plans to utilise a fresh injection of US$845 million to bolster its infrastructure and enhance merchant services, aiming to safeguard its market position.

Not to mention Temu’s latest move to land in the Philippines, the competition is certainly intensifying, signalling increased investments and funding throughout the value chain. Unlike the previous “growth-at-all-costs” approach, these giants are now more likely to focus on investing in essential elements that support long-term structural growth, such as improving product quality, service quality, and content quality. These areas present significant opportunities for startup founders as well.

Image source: AppWorks

Opportunities in product quality: Leveraging the manufacturing capabilities in Southeast Asia

In Southeast Asia, the Average Order Value (AOV) on major e-commerce platforms hovers between US$5-10, a stark contrast to China’s US$15-50 and Taiwan’s US$50-70. Increasing wallet share from consumers and elevating the AOV are top priorities for these platforms.

One approach to addressing this issue is to diversify and improve the quality of product offerings. While more than 70 per cent of products sold on Shopee and TikTok come from domestic manufacturers, a TikTok Southeast Asia team member we spoke with mentioned that “the majority of domestic product quality simply doesn’t measure up to that from Chinese cross-border sellers.

Echoing this sentiment, a Shopee Business Development team member stated, “The biggest advantage for local makers now lies in fulfilment speed and cost, but in terms of product quality and even cost structure, Chinese manufacturers remain highly competitive.” Indeed, we reviewed top individual sellers on both TikTok and Shopee, and it shows that most source their products from China.

This gap creates a unique opening. As Southeast Asian governments strive to protect their local economies and manufacturing sectors, demand for higher-quality local manufacturers will inevitably grow. In this landscape, the timing is ripe for new waves of local manufacturers and product brands to establish themselves as essential players. Furthermore, any tech startup that can facilitate this transition is also well-positioned to seize significant opportunities.

Also Read: Decoding the shift: The new era of B2B marketing

Inflow, an HCM City-based startup, is seizing this moment. Founded in April 2022, Inflow connects global fashion brands to Vietnamese apparel manufacturers. They don’t simply help the brand customers to connect, but in fact, guide the local producers on how to improve product quality, fulfilment rate, and even the design and R&D process.

Khanh Lê, the Founder and CEO, noted, Global big brands have achieved their success due to the robust apparel manufacturing resources in Vietnam and Southeast Asia. However, there isn’t yet a tech platform that can unlock this potential for brands of all sizes worldwide. That is our mission.” 

Opportunities in service quality: How to help merchants make more money

Many services on e-commerce platforms could be enhanced, not least of which is logistics infrastructure—a sector that key players are heavily investing in. (A recent Tech in Asia article has some in-depth discussion on this.) Another avenue to explore is how these platforms can boost merchant profitability. Both Shopee and TikTok are expanding their affiliate programs, with TikTok’s Project S also moving in this direction.

Drawing from our experiences in Taiwan, where the e-commerce industry is a decade ahead of Southeast Asia, provides valuable insights. For instance, 91APP (AppWorks portfolio), a leading online store platform now publicly traded on the Taiwan Stock Exchange, achieved early success by assisting merchants in not only opening online stores but also leveraging powerful marketing tools across major social media channels and offline solutions.

While many startups are striving to help online merchants and influencers earn more money on TikTok, one common challenge emerges: marketing effectiveness. There’s still a strong nature of impulsive purchasing on TikTok, marketing results tend to be more unpredictable and sporadic.

Partipost (AW#23, Pre-Series B in 2022) has expanded its presence to six markets in Southeast Asia. They offer a mobile app that allows influencers to effortlessly sign up for marketing campaigns posted by social commerce merchants. From its inception, Partipost established itself as a regional startup, simultaneously opening in three markets: Indonesia, Singapore, and Taiwan.

Tony Jen, the Co-Founder of Partipost, remarked, Astute brand owners and merchants recognise the importance of curating and retaining the influencer community for the long haul. Relying solely on a single platform can be precarious. Partipost’s platform is specifically crafted to assist these savvy business owners in cultivating enduring brand ambassadors and audiences. Then they can deploy better strategies on all major social platforms, including TikTok.

Opportunities in content quality: Top influencers in Southeast Asia are not that top; content quality is way early in this region

Supporting merchants and influencers is paramount, especially considering the nascent state of content quality. For perspective, in Singapore, a mere 10 million followers can rank an account in the top 3, while in Vietnam, Indonesia, and the Philippines, this count would place one within the top 10.

However, on a global scale, even 50 million followers wouldn’t guarantee a spot in the top 20. On the top merchant side, examining the top accounts, many employ a basic and straightforward selling strategy, evoking memories of traditional TV shopping channels.

Furthermore, a significant number of these top merchants are linked to Chinese parent companies. When we examine the TikTok ecosystem in Southeast Asia, there are only a few local vendors, most agencies are still from China.

Central to social commerce is the intertwining of commerce and culture. As such, two focal points are pivotal: enhancing content quality and tailoring content for local relevance. Hepmil Media Group (Series A in 2021), a Singapore-based startup, epitomizes this trend. They doubled their revenues in 2022 and are on a promising trajectory to continue. Widely recognised for its iconic meme Facebook page, @SGAG, Hepmil has positioned itself as a leading social media content figure in Southeast Asia across six markets. They also own the popular Indonesian meme Instagram account @mrci.id.

Karl Mak, the Co-Founder of Hepmi Media Group, noted: “The creator economy in SEA has entered a captivating era in the past three years. TikTok has given birth to millions of new creators in the region with varied content styles, formats and monetisation opportunities. As the sector continues to ripe, we expect to witness SEA creators develop a unique localised flavour to their content while continuously innovating on formats and styles.

“Brands and business owners would also be presented with new and varied ways of reaching local audiences through a larger supply of creators on the platform. Hepmil’s focus for the next few years will be expanding our regional network through the refinement of our creator incubation strategy to give rise to the next generation of creators that will define culture and captive audiences.”

Hepmil Media Group

Image source: Hepmil Media Group

Navigating e-commerce competition: Tips for startup Founders

The escalating investments from TikTok in this region are intensifying competition within the e-commerce sector. As major platforms redouble their efforts to serve merchants, influencers, and customers, ample opportunities emerge for startups. By nature, a startup must offer solutions that are at least 10x better than what current platforms provide, addressing pain points at a much better scale. Speed is also of the essence; startups must move quickly before established platforms catch up.

Also Read: Tried-and-tested marketing strategies for startups across all stages in Singapore

For startup founders, the key is to seize immediate opportunities without losing focus on the long-term vision: Build your business on a sustainable model with solid unit economics at its core. Prioritise achieving product-market fit over premature scaling or excessive fundraising. Empower your customers rather than simply seeing them as revenue sources.

Furthermore, it’s essential to recognise that most platforms remain predominantly centralised. Echoing the words of Fleire Castro from DashoContent (AW#26) – a content creator platform based in the Philippines: Investing in content on channels that you don’t own or control will result in wasted dollars. The only thing that business owners own is relationships done through several touchpoints (especially digital). Your social account is just another touchpoint. Be holistic in your approach.

Indeed, maintaining a cohesive master plan is key to longer-term success. Construct an unassailable moat that is as difficult to breach as it gets. Ride on the waves driven by the e-commerce giants’ rivalry, but navigate on your own terms.

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

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Can Malaysia have smart cities?

We have smartphones, smart homes, smart cars, and even smart robot vacuum cleaners. So, why aren’t our cities smarter?

Sadly, our lifestyle is more expensive, environmentally destructive, and inconvenient than it needs to be.

All that may be about to change, however. Malaysia has high ambitions to be one of the leaders in the global smart city movement, even though that is easier said than done.

Technology, meet city

But first, what is a smart city?

Creating one is a simple equation: technology + city = better life.

In Malaysia, the Smart City Framework aims to use technology to address issues such as inefficient urban services, environmental pollution, and traffic.

Sometimes, visionary elites try to create new smart cities where there isn’t even a town. Last month, we learned that Silicon Valley billionaires have spent US$600 million on empty land near San Francisco for this purpose. Other would-be city founders have talked of sea steading, which means creating floating cities in international waters outside the control of any government.

Rather than a flawless (and unobtainable) utopia, I think most Malaysians would prefer to aim for a “protopia.” That is a society where we make incremental progress over a long period. Your life might not change much over the next year, but it will be dramatically better in five years.

Also Read: Getting smarter with tech: How will smart cities look like 10 years from now? 

In just ten years, smart cities can make our environment healthier, our standard of living higher, and our bank accounts fuller.

Everyone can agree this would be a good thing. So, what is standing in the way? Well, one of the biggest threats to smart cities is cyber-attacks.

The hacker threat

Hackers have disrupted other smart city projects all over the world. Smart cities rely on technology. This tech depends on the internet, giving hackers a way in.

Smart cities increasingly rely on IoT devices to collect and process data, which aren’t always as secure as they should be.

In the United States, hackers shut down a major city’s courts, police, and water systems.

In Ukraine, a cyberattack turned off the lights in a blackout, with over 230,000 victims.

In Asia, hackers have penetrated smart services in Taipei, Mumbai, and Seoul, shutting down metro systems, traffic management, and power supplies.

Thankfully, Malaysia has learned from the hard experiences of others and has put cybersecurity at the heart of its efforts.

Smart Malaysia

Malaysia has fully embraced the idea of using technology to improve the quality of life in its urban areas. Four places in Malaysia are among the 26 Asean pilot smart cities: Kuala Lumpur, Kota Kinabalu, Kuching, and Johor Baharu.

Besides these projects, Selangor has its own Smart Selangor Blueprint.  Cyberjaya and Putrajaya were the first Malaysian cities with 5G technology. Melaka is offering smart electricity metering. And Penang has its own Smart City Blueprint.

The Prime Minister wants the Federal Territories to be smart cities by 2030. He sees a more sustainable and liveable lifestyle for residents, featuring non-polluting electric buses, more CCTVs to ensure safety and traffic management, fewer floods and better water management, and more WiFi in people’s and public housing projects.

We will also see more green energy, reduced waste and pollution, better transit infrastructure, more 5G access, and easier access to health care right in your local community.

In future posts here, I’ll discuss smart cities in more detail. For now, I hope this introduction has you thinking about the possibilities. If you have some ideas, please contact me and share them.

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

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We see prevalence of robotics, IoT solutions across the globe: SIMPPLE CEO

SIMPPLE CEO and Co-Founder Aloysius Chong

Singaporean proptech company SIMPPLE provides SIMPPLE Ecosystem, an integrated suite of facility management software, IoT devices, and robotics to empower facility owners and operations managers to streamline their operations. By assigning tasks to human and robotic workforces, the firm aims to ensure quality through IoT solutions and CCTV camera integration.

The company recently listed its shares on the Nasdaq Capital Market under the ticker symbol “SPPL”.

Aloysius Chong, CEO and Co-Founder, sheds light on the IPO, SIMPPLE Ecosystem and its impact on workforce management in building maintenance, surveillance, and cleaning.

Excerpts:

Can you provide more details about the SIMPPLE Ecosystem and how it enhances workforce management in building maintenance, surveillance, and cleaning?

SIMPPLE is an advanced technology solution provider in the emerging proptech space, focused on helping facility owners and operations managers manage their facilities. We do so by having a proprietary ecosystem solution suite comprising facility management software, Internet of Things (IoT) devices, and robotics that are integrated at its core.

The SIMPPLE Software then takes in the workflows and processes that a building requires in the areas of building maintenance, security, and janitorial services, then assigns the task to the human or robotic workforce to handle it while ensuring that quality is maintained through a series of IoT solutions and integration with CCTV cameras.

Also Read: Proptech firm SIMPPLE lists on Nasdaq, looks to raise US$8.4M

This, together with our development in Artificial Intelligence, results in our next-generation Autonomic Intelligence Engine, which we coin as SIMPPLE AI, which leverages capabilities in machine learning, computer visioning, and data analytics to position buildings to be future-ready and equipped with new technologies.

In Singapore, our technologies are found in approximately half of the public schools (209 out of 432 schools), seven private hospitals and four of the six universities amongst our deployment across the various commercial and industrial properties sectors.

Why did you choose the Nasdaq over local bourses?

As we started this journey and charted out our fundraising strategy, we had to consider multiple exchanges around the world that were deemed suitable for our listing. A few considerations were the structure and rules of the exchanges, a brief analysis of the financial performance of respective markets, investors and liquidity on the exchanges, and the technology-friendliness of these exchanges as we are a technology company.

In weighing local bourses and the Nasdaq, we actually considered SGX Catalist Board in our discussions. However, after rounds of discussions and deliberation, the team decided that Nasdaq is the most suitable for us as a fast-growing technology company that plans to internationalise.

Through a global platform like Nasdaq, we can access the capital markets in the US, leveraging its strong liquidity. Being a Nasdaq-listed company also improves our brand visibility so that we can access and attract new talents to support the company’s growth.

With the funds raised from your recent IPO, what specific R&D initiatives and IP strategies do you plan to pursue to develop your technology further?

We intend to further our R&D efforts on SIMPPLE AI and ensure its commercial viability for scale-up implementations and deployments. We live in a world where technology advances very rapidly. We remain committed to trialling new technological methods in applied settings (e.g., computer vision analytics and machine learning).

Could you elaborate on your plans for expanding sales and marketing into overseas markets, particularly in Australia and the Middle East? What is your market entry strategy?

Every geographical market presents expansion opportunities, but each market also presents different problem statements and strategies unique to penetrating abroad. One of our successful go-to-market (GTM) strategies includes a partnership approach when entering these markets.

You mentioned potential acquisitions and strategic investments as a use of capital. Are there any specific targets or sectors you are considering for these investments?

At this moment, we cannot comment much on this question, specifically on targets or sectors. We remain open to identifying potential acquisition options to advance our R&D efforts or support our global expansion.

How do you foresee the adoption of robotics and IoT devices in building maintenance and security evolving in the coming years, and how does SIMPPLE plan to stay at the forefront of this industry?

We are already seeing the prevalence of robotics and IoT solutions across the globe. While we cannot comment on the future of robotics and IoT devices, the future of work and play will involve robots and smart solutions. This may also apply in the facilities management industry as it relies heavily on labour, and labour supply shortage also affects labour costs. Technologies like ours will increase efficiency and streamline workflows to overcome labour challenges and address the concerns of facility owners on accountability and transparency.

With SIMPPLE AI, our next-generation Autonomic Intelligence Engine, the workflows between people, processes and technology are automated using Artificial Intelligence, enabling a building to “take care of itself”.

With the opening of selected satellite offices, how do you plan to leverage local talent and expertise to support your global expansion efforts and provide better service to clients in different regions?

When expanding, we believe in a ‘go global, stay local concept’. On top of understanding local laws and regulations, we believe that culture, adoption, and attitudes towards technology implementation play a big role in our implementation success.

That said, being a Singaporean company with a majority Singaporean workforce, our staff are mobile, and we would certainly explore opportunities for our staff to understand various markets together with their overseas colleagues so that we can bring the expertise and knowledge of a Global implementation and apply it to Local requirements.

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Recharge Capital implements thematic-first strategy to empower women’s health industry

Margaret Wang, Managing Partner, Recharge Capital

Recharge Capital today announced the appointment of Margaret Wang as its Managing Partner, leading its Women’s Health Strategy. She will lead the firm’s Singapore office and spearhead its operations in the Asia Pacific (APAC) region.

Prior to the appointment, Wang was the former Executive Director and Head of Bridgewater Associates Singapore. She had also served as the firm’s Chief Representative for the Beijing Office, who helped launch its fund in Shanghai.

“I’m thrilled to join the Recharge team and drive value creation across key international markets,” said Wang in a press statement.

“The firm’s thematic strategy is well-positioned to foster innovation and societal impact across the value chain, and I’m excited to tackle the crucial challenges our world faces through our unique approach to investing in and building meaningful businesses.”

Recharge Capital positions itself as a thematic-first private investment firm. In June, it launched a US$200 million women’s health fund backed by the likes of Peter Thiel, The Disney Family, The Olayan Family, and Ian Osbourne.

Also Read: How Singapore became a leading femtech startup hub in SEA

What exactly is the thematic-first approach that Recharge Capital is implementing? What is their vision for the women’s health industry in APAC? Let Wang explain to you in this email interview with e27. The following is an edited excerpt of the conversation.

Can you explain more about the thematic-first approach that your firm is taking?

Recharge Capital takes a differentiated, thematic-first approach to investing focused on deploying capital into specific objectives or key themes. We aim to drive societal and technological shifts rather than traditional sector-based strategies. This thematic-first philosophy has allowed Recharge Capital to carve out regional winners across its core themes of women’s healthcare, fintech democratisation and deep-tech enablement and presents an incredible opportunity to help foster innovation across the value chain.

I will be taking a heavy focus on women’s healthcare. The firm has had past successful investments in the industry, cementing the belief that fertility and women’s health are two of the most profitable sub-sectors of healthcare investing. We’re passionate proponents of increasing access to family planning services worldwide, and we believe that this vehicle will be a crucial driver in its mass adoption.

Why is this better than existing alternatives? How did you come up with this?

The traditional asset management strategy of ‘asset class first, geography second, sector third’ is the general industry standard, yet it remains outdated and doesn’t reflect today’s more complex and dynamic economy. With our restructured strategy, we’ve built an investment philosophy to be ‘thematic first, geography second, and asset class third.’ This allows us to identify cross-sector category winners aligned with our core themes like women’s healthcare, fintech democratisation, and deep-tech earlier than others.

Recharge Capital Founding Partner Lorin Gu has assembled a highly diversified team across the firm’s different thematic strategies to emphasise sector specialisation and generate alpha in both early and late stages. He’s been instrumental in defining our investment thesis and ethos as a firm. The thematic-first philosophy provides an information advantage to spot opportunities of the future rather than looking retrospectively.

Also Read: Femtech: VC interest grows as new frontier for women’s health beckons

Can you explain how you implement this approach in reviewing a potential investment?

Our thematic-first approach involves assessing company fit, leveraging specialised expertise, and making ecosystem-building investments within thoroughly researched themes. This differentiated process gives us an edge in spotting winners.

When reviewing potential investments, we first evaluate alignment with our core themes like women’s healthcare and fintech democratisation. Rigorous market research into each theme allows us to understand addressable market size and growth drivers. Our experts then conduct diligence through the lens of building integrated ecosystems within each theme.

For example, Recharge Capital recently closed the first tranche of its US$200 million Women’s Healthcare Investment Vehicle, backed with funding from esteemed investors. To close this first tranche, we researched the full fertility value chain and selected companies that strategically fit rolling up a comprehensive women’s fertility platform across target regions.

What is your big plan for 2024? Do you have anything specific for Southeast Asia (SEA)?

I’m especially eager to lead Recharge’s Women’s Healthcare strategy, which addresses a growing global issue that remains under-addressed from an investment perspective. By 2045, close to 50 per cent of couples are expected to rely on women’s healthcare services like IVF for fertility, and yet female health conditions totalled just one per cent of pharmaceutical research funding in 2020.

There are nearly 1.5 million annual IVF cycles in Asia alone, with China exporting ~500,000 cycles to other countries. There is tremendous demand for medical tourism related to family planning and women’s health, and Recharge Capital is funding a network of clinics through Generation Prime to satisfy this demand with cost-effective and cutting-edge services.

Also Read: Overcoming advertising woes and other challenges for the femtech industry

The serviceable market for IVF and related treatments in Singapore is around US$350 million. If you take into account all of SEA, the hubs for IVF services are mainly in Singapore, Malaysia, and Thailand – serving across the entire SEA markets, it goes up to almost US$11 billion. This is just for fertility. If you take IVF plus other women’s health needs, it can get close to US$48 billion in market size, and this is only in SEA.

What are your targets for 2024?

For 2024, my primary focus will be on international fertility access and medical tourism, menstrual wellness, and women’s disease prevention as part of Recharge’s Women’s Healthcare strategy. Recharge Capital aims to transform the sector by creating a full-scale integration of disruptive technologies, diagnostic solutions, and seamless patient experiences through digital platforms and local clinic chains.

Recharge’s thematic model has improved family planning to be a holistic, all-encompassing, and long-term approach, and its clinics like Generation Prime ensure that patients in Southeast Asia have access to the most robust fertility services from the onset.

Image Credit: Recharge Capital

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