The Scaleup Report by Startup Genome that was launched today in Melbourne revealed the three key factors that founders who look to improve their chances of scaling should ensure: Offering stock options for all employees, owning more than five global connections to top ecosystems, and having at least three advisors for their startup.

“Scaleup success rate clearly increases with Global Connectedness and startups that develop a high level of Global Connectedness have a 3.25x higher chance of scaling than those with a low level,” the report detailed.

“Ecosystems that are more connected to top global ecosystems (such as Silicon Valley, New York City, and London) see their startups go global at a much higher rate on average (66 per cent correlations between those very distinct variables).”

Despite the importance of connectedness on a global level, this did not mean that local connectedness did not play a role. The Local Connectedness Index measures the size, density, and quality of a startup’s local network, and it impacts a startup’s ability to scale.

“Startups with a Local Connectedness Index score of six or above achieve a scaleup of 5.1 per cent compared to 3.8 per cent for those with a score of two to four, a 34 per cent boost. Early-stage startups with a higher Local Connectedness Index see their revenue grow twice as fast as those with the lower Local Connectedness Index,” the report said.

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

In addition to Startup Genome’s own research and dataset on startup ecosystems, the report also received contributions from experts such as the Global Entrepreneurship Network and Dealroom.

It provides insights into the characteristics that separate startups that successfully scaled from those that failed and highlights actionable insights for entrepreneurs, enterprise support organisations, and policymakers seeking to increase the proportion of startups scaling to a US$50 million+ valuation.

Factors that help startups to scale up

In addition to access to collaboration with local and global ecosystems, the report also looks at the countries with a significant number of “scaleups”–startups that have achieved significant milestones in their scaling-up journey.

“The US, China, and the UK are the top countries by number of total scaleups, with 7,100 based in the US—4.8x more scaleups than in China and 11.5x more than in the UK. India, Canada, Germany, Israel, France, South Korea, and Singapore (in order), round out the top 10 countries globally for the number of scaleups,” the report said.

“Top countries for VC investment into scaleups are the US, China, India, the UK, and Germany. North America makes up 55 per cent of all global VC investment raised in scaleups, with the US alone contributing 53 per cent. Since 2020, the US has received more VC investment than the rest of the world combined.”

Also Read: Sustainable farming, supply chain traceability startup Koltiva raises Series A funding

The report also said that for early stage startups that go global, they are on a revenue growth curve that is 2x faster than those that do not.

“For non-US startups that target the global market first, the scaleup rate doubles,” the report highlights.

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Speaking to e27 before a panel discussion at the recent Forbes Global CEO Conference 2023 in Singapore, Alpha Intelligence Capital Co-Founder and Managing Partner Antoine Blondeau revealed that the firm is on its way to closing its latest fund, which is targeted to happen in 2024.

“We are sort of halfway through the race right now. We already closed about US$20 million but are about to close more. It is targeted at US$300 million plus, so it’s quite significant,” he said.

Having a presence in the US, Europe, and Asia, Alpha Intelligence Capital intends to invest 10 per cent of the upcoming fund in Asia, where the firm sees great potential for AI technology. Its portfolio consists of notable names such as AI Music (acquired by Apple), Reaqta (acquired by IBM), and Instadeep (acquired by BioNTech).

Blondeau himself is not a new face in the world of AI. He was the CEO of Dejima, the company that powered DARPA’s foundational CALO project that evolved into Apple’s Siri, and COO of Nasdaq-listed Zi Corporation, whose predictive text input software was embedded in hundreds of millions of devices.

In this conversation, we are looking into the present and future of AI in Southeast Asia, from the challenges to the opportunities. The following is an edited excerpt of the conversation.

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

Everybody is talking about Gen AI today. But where do you think this trend is going?

Historically, machine learning was very good at solving things such as perception. So, you could perceive very well, or you could detect a tumour on a CT scan or MRI. It was also very good at optimisation; you could do price optimisations, logistics functions optimisations … But the cognition piece, which is critical to human decision-making, was not yet solved. Things such as being able to understand a question in context and being able to make sense of what is being perceived.

Gen AI is beginning to solve that. It is the first time ever that we see a non-human intelligence being able to close the loop fully; not just perception, optimisation, but also cognition.

To me, it’s just the beginning. We’ll still be talking about this in 10 to 100 years and beyond.

How do you envision this AI is going to be used in the future, within the next two to three years?

Historically, AI was about a few developers building it for a few users, which are mostly business users. But now, this can be built and consumed by many. That is a big difference.

We see a lot of interest in healthcare. We see a lot of interest in cybersecurity, enterprise software, and all the functions of a company from HR to IT services management, even down the road to accounting, legal to resource optimisation.

Whether it’s B2B or B2C … those are critical aspects where we see AI becoming more and more important and being adopted.

Also Read: RevComm’s MiiTel, Cloud IP phone powered by artificial intelligence, is changing how businesses engage customers

How about Southeast Asia? Is there any particular trend that is happening?

Historically, human talent in the AI space had some amount of critical mass in the Bay Area, London, and Tel Aviv. The requirement for deep talent is less obvious. What you really need is people who can understand how to use it. And also understanding the underlying aspects of the technology well enough to be able to cover for the pitfalls of it. So, the barrier to entry is coming down. And as a result, adoption can be broader, and interesting companies can be built anywhere.

Obviously, in Southeast Asia, Singapore has been the country where there has been more attention paid to it.

In our last fund, we actually invested in a Singapore company in the cybersecurity space, which we were able to sell to IBM. There will be a number of companies like this in Singapore and the region, but I think the opportunity is a lot more for large enterprise-type businesses.

The banking, logistics, and airline industries have begun to adopt it as well.

One thing that Gen AI is doing is pushing cloud consumption dramatically. Because it is like taking a slice of our biological brain and putting it into the cloud; essentially, that is what happening. It drives cloud consumption, which in turn is drive the demand for underlying hardware. Countries that are semiconductors manufacturing countries can benefit from it. It is clearly the case for some countries in Southeast Asia.

Last but not least, countries in Southeast Asia that have young populations, such as Indonesia, [have great promise for AI use].

For large enterprises, what are their main challenges in incorporating AI into their operations?

First is understanding what it can do. I think there is a big educational aspect there.

Also Read: Will China lead the Artificial Intelligence game by 2030?

Second is internal resistance because there is a lot of misconceptions and misunderstanding as to whether this is going to replace jobs. And I think there are also some legitimate concerns. So, being able to understand and assuage concerns is an important deliverable.

The third aspect is that when companies implement AI, they have to marry the technology aspects with deep domain expertise. So [they have to] organise project teams where the expertise is present.

When it comes to regulations and innovation, there is always that concern about it stifling creativity for the sake of security. So, where do we find a middle ground?

The middle ground is always to try and try; you can create things like sandboxes. Whether it is in finance or healthcare, you enable sandboxes so that you foster a certain amount of innovation that is somewhat controlled in terms of its distribution. Then once you cross the bridge of demonstrating value in a context where it is not detrimental to the user and societal fabric, then you proceed.

It is always easier to do when a country is small, where the stakeholders are few. So Singapore is always very well-placed to put that in place.

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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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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.

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.”

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.

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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.

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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 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.

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Image Credit: Recharge Capital

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This article was first published on June 7, 2018. Ever since then, Indonesia has been making progress in its inclusion of digital payments in almost every retail ecosystem, including informal small businesses. The introduction of QRIS during the pandemic has contributed to this milestone. 

Since the startup’s first claim to fame in 2015, Go-Pay has always been an integral part of the Go-Jek experience. Embedded into the Go-Jek mobile app, users can top-up some amount of funds into the e-wallet feature and use it to pay for Go-Jek services from ride-hailing and food delivery to express courier.

An interesting development happened in July 2017 with the launch of Go-Resto, which aims to enable Go-Food drivers, in general, to do transactions at various F&B and merchant outlets using Go-Pay. The platform was launched with the expectation that, eventually, customers will be able to use Go-Pay for transactions outside of the Go-Jek ecosystem.

The prospect of being able to use the cashless payment system to buy food at the mall (and other daily necessities) seemed promising in a market where cash is king –and a long-reigning king, that one is.

So when Kompas Tekno reported that several street food stalls in Kebon Sirih, Central Jakarta, have begun to accept Go-Pay for payments, followed by the launch of Go-Pay at several offline and online merchants, I decided that I just had to try these myself.

So off I went on a three-day shopping trip to test out Go-Pay at various merchants.

The experience

 

Just in time for Ramadan, together with several leading retailers, Go-Jek launched a special promo that will allow users to get cashback by using Go-Pay to pay for their transactions.

Guided by the list of merchants on their site, I started off by paying visits to bubble drink outlet Chatime and bookstore chain Gramedia to test out the new service.

Also Read: Indonesian ride-hailing giant Go-Jek to launch online content production house, streaming service

There was a considerable queue at Chatime as it was near time for iftar; people in the mall were getting themselves ready by buying food and drinks.

I took the risk of being called a creep by watching every single person standing before me, and what they used to pay for their drinks. The majority of them used cash, followed by credit or debit cards, despite notification on the cashier that this shop accepts Go-Pay.

When my turn came, I asked the shopkeeper if it was possible for me to use Go-Pay. She said yes and took out an EDC machine with a Kartuku label on it.

(Friendly reminder that fintech startup Kartuku was acquired by Go-Jek in December 2017.)

The machine then printed out a piece of paper with a QR code on it. I opened the “scan QR code” part on my Go-Jek app and scanned the code. The next thing that showed up on my screen was an option to choose between the Go-Jek and Go-Life apps.

I picked the Go-Jek app and confirmed my purchase with a passcode; within seconds, my purchase was approved. I got to left the counter with a sense of victory; I liked to imagine that people were staring at me enviously as well.

The next day I decided to stop by Gramedia. Honestly, I had no plan to buy any book at the moment, so I stopped by the magazine section and got some back issues as they were really cheap.

Like the previous day, I was also the only person in the waiting line who was using Go-Pay for transactions. The lady behind the cashier even said that this was the first time she ever used it to process a transaction.

We repeated the same process as the one at Chatime, and once again, I walked out of the store excited.

My journey continued the next day to a noodle shop in South Jakarta which had been reported to accept Go-Pay as payment method. But unfortunately this is the first time I have been let down by the experience, as despite the reports, the cashier told me that the Go-Pay service is meant only for Go-Food drivers.

Also Read: Go-Jek, Openspace inject money into Bangladesh’s bike-hailing startup Pathao

I am not sure what happened here. Have I been misguided by the reports, or does it indicate the lack of communication between the noodle shop management, Go-Jek, and the staff?

No idea. But all that matters is that in the past three days, I have gotten enough materials to make a verdict.

Indonesia’s cashless revolution

If you have been using Alipay in China or ApplePay in Singapore, you may wonder: It is 2018, and someone in Indonesia is actually excited about using a QR code-based payment?

We have every right to be excited as we have been behind when it comes to the use of cashless payment methods. In the same way Go-Jek was not the first business to try to digitise ojek services, they were also not the first company to offer e-wallet service in this market. Think DOKU or Tcash.

Yet, as successful as these businesses go, they still fail to make e-wallet a must-have item in every Indonesian’s smartphone. No matter where we go, we always have a stack of cash ready in our wallet.

Let me explain to you why.

It is said that the lives of a typical Indonesian, particularly in Jakarta, revolve around the nearest shopping malls. True, we spend countless weekends and nights at shopping malls, hanging around or even just waiting for the traffic jam to calm down. But there is life outside the shopping mall, and this is why we always have a stack of cash ready.

As you move your car out of a parking lot, there will always be a tukang parkir (“Parking man”) showing up with a whistle to help you out.

You wait in a traffic jam, and a street seller shows up at your window with bottles of drinks. You decided to buy one.

You aim to take a U-turn, but the other cars and motorbikes just will not let you. A group of teenagers showed up to help you get your chance. They expect a reward, so you hand them some coins. This profession is called a pak ogah.

Once you arrive home, you realise that you are running out of sugar for your evening tea. So you walk out to a nearby warung.

These are all the kind of services provided by small businesses and individuals that are essential to the life of every Indonesian. And these services can only accept cash.

(I personally have never seen a pak ogah with an EDC machine, so yeah. These services are also the reason why vending machines will never be popular here.)

Also Read: Go-Jek to invest US$500M to support international expansion plan

Now let us link it back to the reason why previously released services such as DOKU and Tcash did not work.

Many of these services team up with retailers at the malls, which is great until the customers walk out of the mall itself.

Also, while Tcash has recently announced its plan to become agnostic, the service was previously only available for users of mobile operator Telkomsel.

I personally find it off-putting to sign up for something new. Last year the government made it obligatory for all toll roads to use cashless payment methods; only then did I actually apply for one, as provided by the bank. Because otherwise, I would not be able to use the highway.

This is why Go-Pay might actually has the chance to bring forth the cashless revolution.

Though they have also used the strategy of partnering with major retailers, they also include small businesses and street food sellers as part of their launch strategy, covering a previously untouched segment by cashless payment methods providers.

The platform also have a network of small and big F&B retailers through its Go-Food service; looking at all the services available on the Go-Jek platform, there is a strong possibility that one day we get to use Go-Pay for transactions at the cinema, the pharmacist, or the supermarket.

The e-wallet is also integrated into a mobile app that provides a core service that is even more essential to Indonesians’ lives than the malls: Transportation. (Otherwise, how do you get to the mall!?)

With an integrated service, you do not have to download another app or sign up for something with the bank. If you are lazy like me or have limited space on your smartphone, this is a great way to lure you in.

Now what?

 

So what is next for Go-Pay? Considering the fact that the service has only been launched in the past month, there is a limited number of merchants that we get to use it. This is understandable, but we are definitely looking forward to seeing more coming. Not only in numbers but also in variety. If my favourite laundry shop starts to accept Go-Pay next month, I will be a very happy person.

Also Read: Southeast Asia is setting itself up for disappointment with Go-Jek entrance

If there is anything that Go-Jek needs to work on, it is educating the customers about the existence of such a service. As I have explained in previous paragraphs, I was the only shopper in the queue line who was using the service. I talked to friends and family about my experience shopping with Go-Pay; most of them are even shocked that you can actually use Go-Pay at Starbucks.

What is the best way to educate the society about this service? I honestly do not know. Promos are nice, but sometimes people need to be encouraged by seeing a person using the service in real life. Hopefully, the person standing behind me in Gramedia will be inspired to use his Go-Pay to buy books.

The last thing I am going to say is that: Your move, GrabPay.

The post (Updated) I used Go-Pay to buy these magazines and a bubble drink. Here is why I think it’s game-changing appeared first on e27.

Though we may not talk about it so often anymore, many of us would still remember what happened at the end of 2022: When news about FTX’s collapse took over the headlines.

This write-up by Forbes might serve as a good reminder of what happened.

“The crypto market is swinging from left to right, comfortable in limited range and smooth curves. The FTX fallout in the year 2022 shook the market and turned it down. This year gave a fresh and positive perspective to major cryptocurrencies like Ethereum and Bitcoin, which gradually turned green helped by the relaxed macroeconomic situation of macroeconomic and cooling inflation,” the article writes.

“Nevertheless, the market sentiments have slowly turned from fear to greed and then to neutral.”

With the exception of those who are actively involved in the industry, some of us might wonder: So, what is the state of crypto exchanges today? Has it managed to gain (back) the trust of the general public, who could potentially be the next investors? What are the ways that exchanges are using to attract, particularly retail investors?

Also Read: With new US$100M fund, KXVC aims to help global AI, Deep Tech, Web3 founders win APAC market

On the second day of TOKEN2049 in Singapore on September 14, there was a discussion about the importance of education in acquiring retail investors on board.

According to Huobi Ventures Managing Director Edward Chen in a panel discussion, the strategy that they are taking is to focus on providing support to new users. He sees that in the case of most of its users, who are mainly professional investors, there is already a basic understanding of crypto.

“We also provide education programmes, but we usually come up with a third party.”

On being compliant

Another big theme that seems to have surfaced in the industry lately is the matter of regulation.

In August, Singapore became among the world’s first to agree to stablecoin crypto regulation. As detailed by CNBC, The Monetary Authority of Singapore (MAS) proposed framework includes key requirements such as reserves that back stablecoins must be held in low-risk and highly liquid assets.

If trust is one of the key issues that prevented users from embracing crypto and the Web3 industry from becoming mainstream, perhaps the sense of security provided through regulation can be a piece of good news.

It has definitely helped investors—in this context, VC firms—to be more confident in investing in Web3 industries.

Also Read: How to stay creative in the age of Generative AI and Web3

KX Venture Director Thanaarmates “Paul” Arriyavat, in an interview with e27 during his visit to Singapore, highlighted that several countries in SEA are more promising when it comes to becoming a hub for Web3 companies, such as Thailand and Singapore. The one thing in common between these two countries is the regulatory certainty that enables companies to operate smoothly.

“Because the rules and regulations over there are pretty forward-looking; it has a clear separation between tokens or digital asset that has utilities and security … We’re still waiting for the regulations on liquidity announcement [from the government] so that we will be able to move forward with a lot of use cases,” he stressed.

Like with many regulations, there are plenty of aspirations—and plenty of waiting. But I would like to think that, after a turbulent time, players in the crypto and Web3 space would like to have reasons to feel optimistic.

Whether Web3 will become mainstream or not, it might be up to the customers to decide.

The post Web3 industry players forge ahead after a year of challenges appeared first on e27.

Evo Commerce, a direct-to-consumer health & beauty startup based in Singapore, has secured US$2.8 million in equity and debt financing.

Shanghai-based firm IJK Capital led the round, with participation from Carousell Co-Founder and CEO Quek Siu Rui, Fave Co-Founder Joel Neoh, and Tipsy Collective.

This comes about eight months after the D2C startup announced the completion of its pre-series A funding round of US$2 million from GSR Ventures, 33 Capital, Rainforest CEO and Co-Founder JJ Chai, Wallex Co-Founder Hiro Kiga, and BrideStory Co-Founder Emile Etienne.

The company will use the money for product development and market growth. The debt financing will be used for expanding its retail presence across Asia, including renowned retailers such as 7Eleven, Guardian, and Watsons.

Also Read: Evo Commerce, parent of D2C anti-hangover solution BounceBack, nets US$2M

Evo Commerce aims to reshape the landscape of health & beauty products in the region by bridging the accessibility gap and “empowering Asian consumers with top-quality products”. The company owns two brands: back (focusing on post-party recovery aids and daily supplements) and Stryv (specialising in the affordable luxury segment for personal care electronics).

The startup claims to have achieved 25x growth in the past 18 months. It aims to achieve EBITDA profitability within the next six months of operations.

The founders have plans to raise an additional US$1-2 million before closing the current round.

Roy Ang, Co-Founder and CEO of Evo Commerce, said: “We believe that the health and beauty category is significantly underserved in Southeast Asia markets. Our mission is to enhance the lives of Asians by solving accessibility issues for these products.”

In 2022, Evo Commerce secured US$600,000 in seed funding, led by East Ventures, with notable angel investors Aaron Tan from Carro, Joel Leong from ShopBack, Mohandass from Spenmo, and Jonathan Tan from Prism+.

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Image Credit: Evo Commerce

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