Retailetics has developed a smart cart called ezyCart

As weekly grocery shoppers, Manirajah Kulanthavelu and Shaji Rajappan were frustrated with the time they had to spend just locating products in the store and lining up in slow-moving checkout queues to pay. Despite these frustrations, they felt online grocery shopping could never match the in-store shopping experience.

With previous experience building companies, the duo sensed an opportunity to enhance the relationship between the retail outlet and the customer.

“We both shared similar ideas of how we wanted to enhance our weekly shopping experience. So, we interviewed hundreds of shoppers inside supermarkets, as well as senior executives and owners of major retail chains in Malaysia and Asia,” says Shaji. “This was the beginning of Retailetics.”

Retailetics — a combination of ‘retail’ and ‘analytics’ — is a retail automation company addressing the challenges of retailers and shoppers.

The startup has developed a smart cart called ezyCart. An AI-powered shopping cart, ezyCart enables supermarkets to seamlessly engage shoppers and deliver personalised in-store experiences while generating rich insights into everything shoppers do between the aisles. “ezyCart offers personalised promotions, rewards, cashless and in-cart self check-out payments, and insights into how the consumer shops,” Shaji remarks.

Also Read: How technology can help small retailers streamline operations with limited staffing

In a nutshell, Retailetics delivers four things: new footfall into the store (primarily driven by curiosity and desire for change), great shopping experiences for shoppers, and real-time insights and capabilities for retailers to sell more to consumers inside the store (captive audience).

The company operates in Malaysia and has just launched its first few pilots. It has letters of intent (LOIs) from four Malaysian retail chains today that allow the startup access to a total of 120 hyper and supermarkets. The firm plans to deploy small volumes of smart carts in their urban stores first, followed by the rest, as it raises more money to ramp up the cart production.

“We also have an LOI from a big retailer in the Kingdom of Saudi Arabia that is keen to test our product in 2023,” claims Shaji, who comes from an enterprise CRM and CX background and previously founded Inxider, an analytics company.

Several major retailers in Thailand, the Philippines, Indonesia, India, and Australia have also expressed interest in the pilot.

Retailetics banks on a subscription model, allowing retailers to deploy its tech by signing a contract for either 36, 48 or 60 months, during which they’d pay a monthly subscription fee (billed quarterly). This gives them access to the smart carts, cloud software and apps, dashboards and supporting technology infrastructure inside each store, and maintenance of the carts.

“Besides subscriptions, we generate revenue from advertising on the cart’s physical surface (cart-wrap), as well as digital aisle-based advertisements on the cart’s screen, and also our ezyList mobile app,” says Co-Founder Manirajah, who earlier built an e-wallet startup which he exited in 2017.

According to him, Retailetics faces several challenges, including the lack of access to venture funding and government support, besides finding good, disciplined, all-rounder knowledge workers such as high-end developers and engineers.

“As for funding, most VCs do not invest in startups they consider a hardware play. Yet, they communicate that to us using hardware such as mobile phones, tablets and computers,” Manirajah quips. “They also need to understand traditional retail and take the trouble to spend time with us to learn enough. Retail is a significant B2B segment as a single contract gives us access to their entire chain of stores. It is also a segment that millions of people buy products from every second.”

“Funnily, take your eyes off our hardware; you will realise we are a data company that generates valuable real-time insights across the entire shopper journey, from home to store and from the list to checkout. Not many companies can claim to do that,” Manirajah says.

The company raised initial capital from angel investors, including Suresh Thiru (former COO of Jobstreet.com and later CEO of SEEK Asia) and Bikesh Lakhmichand (CEO of 1337 Ventures) via a SAFE (simple agreement for future equity) round managed by 1337 Ventures. Several undisclosed investors from Malaysia, Singapore, India, Australia, and the US participated.

Also Read: How retailers could prepare for the next consumer recession if it were to come

While there are no direct competitors in Malaysia, globally, there are companies in the smart cart segment, such as Caper (acquired by Instacart), A2Z (acquired by a NASDAQ-listed company), and Imagr (a Kiwi startup funded by Toshiba Ventures and uses Toshiba’s patented AI tech to power their smart baskets and carts).

“Our biggest competitor is cheap labour. But if you remove everything else we do and deliver and focus on just self-checkout, there are a slew of self-checkout technologies that retailers, even in Malaysia, have deployed,” Manirajah shares.

With the COVID-19 scare gone and offline shopping back in full swing, competition in the retail industry is growing strong. Only retailers that can enhance customers’ shopping experience will win the game in the highly digitalized era. Perhaps, Retailetics’s ezyCart could play a crucial role here as it benefits retailers and shoppers alike.

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Singapore-based VC firm Integra Partners has participated in the US$7 million funding round of Berlin-based CleanHub, a company stopping plastic from entering the oceans.

Other investors that joined the round are Lakestar, Silence VC, 468 Capital, Übermorgen Ventures, Dan Bartus, and Stefan Gross-Selbeck.

CleanHub —  which has a presence in Jakarta, Bangalore, and London — will use the fresh funds to eliminate plastic waste entering oceans and drive systemic change in the waste management industry, enabling the circular economy of plastic.

Founded in 2020, CleanHub aims to prevent 50 per cent of new ocean plastic by 2030 by bringing waste collection systems to coastal regions where they are needed most.

Also Read: Samsung Ventures invests in sleeptech firm Earable Neuroscience

The firm has developed a track-and-trace system, with each bag of waste weighed, photographed, and monitored through AI and manual checks, ensuring accountability.

“We see climate tech as a key contributor to sustainable, equitable and thriving economies in emerging markets,” said Jennifer Ho, Partner at Integra Partners. “CleanHub’s innovative approach to waste management, coupled with our experience in fintech, creates some really compelling opportunities to tackle the plastic pollution problem in a different way. Their strong presence in Southeast Asia aligns perfectly with our investment strategy.”

In addition to the funding announcement, CleanHub also announced the appointment of Louis Pfitzner as Co-CEO alongside Joel Tasche.

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Image credit: CleanHub

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One of Singapore’s key objectives in becoming 5G-ready was to ensure that half of the nation can fully experience the capabilities of 5G networks by the end of 2022, and the lion city is well on track to offer nationwide 5G coverage by 2025. This encompasses not only the deployment of a comprehensive 5G network but also the utilisation of the various benefits that 5G technology brings.

Singtel, StarHub, and M1, in a joint venture, have been granted the responsibility of operating 5G networks throughout the country. As of today, 5G coverage offered by Singtel has surpassed 95 per cent, with the other telcos following suit.

Mobile data service revenue in Singapore is also expected to grow at a compound annual growth rate (CAGR) of 7.2 per cent from 2022 to 2027. This growth is driven by the rising consumption of mobile data services and the increasing adoption of higher average revenue per unit 5G subscriptions as 5G services become more widely available.

As we delve into Singapore riding the 5G wave, an important question arises: Is Singapore truly ready for the advent of 5G?

Why does Singapore need 5G?

According to Mr Tan Kiat How, the then-Chief Executive of Infocomm Media Development Authority (IMDA), “the ongoing COVID-19 situation underscores the criticality of a robust digital infrastructure and the importance of timely investments to meet our national connectivity needs. Beyond a connectivity infrastructure, we believe that 5G networks will spur innovation, create exciting business and job opportunities, and position Singapore as a leading digital economy.”

As Singapore strives for international economic success in the post-pandemic era, it must not only rely on reliable and affordable cloud-enabled networks for 5G-driven enterprises but also embrace the potential benefits that 6G technology offers.

By 2030, 6G services are expected to be available and will provide speeds up to 100 times faster than 5G, conceivably blurring the lines between digital and physical worlds with holographic telepresence, augmented reality, and virtual reality. Despite being in the early stages of development, 6G aims to revolutionise connectivity with faster speeds, ultra-low latency, and support for numerous devices.

Singapore’s commitment to technological advancement positions the nation at the forefront, ready to harness the benefits of 6G and drive industry transformation, enhanced experiences, and innovation.

How is Singapore building its 5G capabilities?

Singapore is actively building its 5G capabilities, aiming to become a global hub for research and development in this field. IMDA has partnered with the Singapore University of Technology and Design (SUTD) to establish the first 6G lab in Southeast Asia.

Also Read: Does Malaysia have the potential to become a 5G hub of SEA?

The lab will focus on advancing future communication technologies, including 5G and 6G, and exploring applications like holographic communications and intelligent sensing for autonomous vehicles and drones. This initiative is part of Singapore’s commitment to technological advancement and positioning itself as a leader in wireless communication.

Secure and resilient 5G networks

According to Dr. Janil Puthucheary, the Senior Minister of State, Ministry of Communications and Information, a secure and resilient digital infrastructure fosters confidence and trust among competitors, collaborators, and partners, enabling more effective engagement. He further highlighted the significance of cybersecurity in the cloud, especially as businesses increasingly leverage cloud platforms.

To address concerns in this area, Singapore introduced a multi-tier cloud security standard in 2013. This standard provides clarity on security levels offered by various cloud service providers, offering businesses a framework for ensuring adequate protection of their hosted data and systems. The aim is to create an easily understandable and interoperable governance framework.

A 5G ecosystem will benefit enterprises and consumers

Singapore has been conducting 5G trials in its economic sectors to speed up innovation. IMDA and the National Research Foundation had set aside US$40 million to support 5G trials in various strategic sectors. The trials pave the way for a robust 5G infrastructure, which will support a vibrant innovation ecosystem to drive business transformation.

The National University of Singapore (NUS) planned to collaborate with StarHub for a two-year trial leveraging IoT and 5G. NUS aims to enhance campus management through live tests with drones, patrol robots, and immersive classroom experiences. Potential applications include building facade inspections, waste management, and security, to which the use of drone technology and AI can reduce inspection time by 70 per cent.

IMDA, in partnership with Infinite Studios and D.ink, is creating a ground-breaking 5G project in Marina Bay. This outdoor AR setup will offer a cinematic experience, utilising 5G’s bandwidth and computational power. It follows the success of the National Gallery’s AR art exhibition. Additionally, Fort Siloso in Sentosa will feature a 5G-enabled extended reality (XR) experience. These initiatives demonstrate Singapore’s commitment to pushing technological boundaries and providing unique immersive experiences.

Singapore is expanding standalone 5G coverage to its seaport by mid-2025 to drive 5G rollout and adoption in maritime operations via the establishment of the 5G@Sea testbed. The expanded 5G coverage will enable pilots to control ships from onshore centres, improving service efficiency and safety.

The initiative also includes drone-based shore-to-ship delivery, eliminating the need for vessels to dock for urgent inspections and repairs. Singapore’s 5G network in the maritime sector will enhance productivity and reduce downtime, transforming traditional harbour pilot roles and revolutionising operations.

Preparing a pipeline of talent

Singapore’s tech industry is committed to hiring and training professionals to support 5G network deployment. The government aims to boost the tech talent pool by leveraging the 5G Academy, a collaborative initiative established in 2020.

Also Read: Growth and changing landscape of 5G and data

This public-private partnership has successfully trained approximately 10,000 professionals, exceeding its initial target of 5,000, in key areas such as 5G network architecture and software development.

To further foster information, communications and technology (ICT) manpower, IMDA is collaborating with the industry with a focus on new job roles in the 5G ecosystem, such as 5G network engineering and application development. The Skills Framework for ICT professionals has been updated with 5G competencies, and through the Tech Skills Accelerator (TeSA) initiative, companies in Singapore can enhance their employees’ expertise in 5G and related areas.

A new economic reality

Singapore, a beacon of progress and prosperity, embraces the limitless future with unwavering dedication. Recognising the profound impact of the network as a catalyst for innovation, IMDA envisions a thriving and dynamic 5G ecosystem.

This visionary approach unlocks exciting new applications and drives transformative change, delivering unparalleled value across industries. Singapore’s commitment extends beyond 5G as it pioneers the path to 6G.

This transformative leap fuels job creation and empowers individuals to shape the future. By nurturing innovation and strategically investing in digital infrastructure, Singapore is not only preparing but spearheading the connectivity revolution.

With the development of a new national blueprint, known as the Digital Connectivity Blueprint, Singapore is charting its path towards 6G mobile technology and a 10Gbps home broadband network. This comprehensive plan not only aims to drive new growth opportunities but also enhance digital trade and data flow through the nation, attracting more investments.

In addition, significant investments in 6G research and development are underway through the Future Communications Research and Development Programme. By prioritising technological advancement, Singapore aims to unlock a multitude of prospects while strategically positioning itself as a leader in the digital race, where opportunities are aplenty for the nation’s growth and innovation.

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Southeast Asia-focused investment firm Go-Ventures has rebranded into Argor Capital Management and announced the closing of its second fund worth US$240 million.

The investors in Fund II include leading sovereign wealth funds, institutional investors, corporates and family offices from Asia, the Middle East, Australia, Europe and the US.

With the completion of its recent fundraising, Argor plans to deepen its focus by investing in both early and mid-stage companies that address large and attractive market opportunities while driving significant societal impact.

Fund II has already invested in companies spanning sectors, such as verticalised B2B marketplaces, tech-enabled consumer businesses, SME digitisation platforms, environment tech, and embedded finance.

Established in 2018 with the backing of GoTo (then known as Gojek before its merger with Tokopedia), Argor is an independent but ecosystem-linked investment firm. Argor combines the words ‘ardour’, ‘rigour’, and ‘Go’.

Also Read: AgriAku raises US$6M in Pre-Series A round led by Go-Ventures to strengthen market penetration

It invests in high-growth startups across the rapidly growing markets of Indonesia and the rest of Southeast Asia.

Argor closed its first flagship fund in 2020 with a total commitment of US$175 million. The first venture fund has invested in 19 companies.

“Argor captures the passion and spirit of partnership that our team employs as we invest in and help our portfolio companies across Southeast Asia change millions of lives for the better. While we are rebranding at a time of expansion, the word “Go” embedded in our name is an important reminder for us of the strong support we have received from GoTo and our other investors since we started this journey back in 2018″, said Aditya Kamath, a Partner at Argor.

Although GoTo remains an investor in Argor’s funds, its strategy and investment decisions remain independent of GoTo and other Limited Partners (LPs).

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G-P has made a name for itself as a leader in the Employer Of Record (EOR) industry, but this does not mean that it plans to rest on its laurels.

When Founder and CEO Nicole Sahin started the company in 2012, according to Charles Ferguson, General Manager, APAC, G-P, it defined the EOR and global employment industry with the goal of transforming international business. It enables organisations to unlock their business potential by removing the barriers to accessing global talent, including HR, tax, and legal hurdles.

Today, G-P aims to redefine the market again by introducing its vision for a new category: global growth technology.

In an email to e27, Ferguson announces that G-P’s global growth platform is driven by the G-P Meridian Suite of SaaS-based global employment products, which serve as tools to help companies find, hire, and manage talent worldwide – helping customers build and manage teams quickly and compliantly across more than 180 countries.

Some of the features that it offers include:

• G-P Meridian IQ: Tools that provide the intelligence companies need to inform their business growth around the world

• G-P Meridian eLibrary: Customisable and locally compliant digital document templates and software to help customers save time and deliver a richer, localised experience to their global workforce

• G-P Meridian Advisor: Supports employee engagement, addresses employee issues, and answers payroll or benefits questions for teams in markets around the globe using G-P’s proprietary data.

• G-P Meridian Marketplace: Enables companies to connect directly to G-P’s certified partners through a single platform, creating one interface for customers to access products and services needed to support their global expansion.

Also Read: How AnyMind Group achieved profitability through its approach to human resource and leadership

“The need to stay relevant and constantly evolve to be better is key in maintaining G-P’s position as the industry leader, and this is also precisely why we’ve introduced the Global Growth Technology to bring the EOR space to a new territory by evolving and improving the very EOR industry G-P created,” Ferguson says.

On winning the race for talent

When asked about the new opportunities that G-P aims to seize this year, Ferguson puts highlight on winning the race for talent.

“With the intense competition among countries and companies to attract and hire the best talent, moving quickly enough and hiring the best talent as fast and as seamlessly as possible is the only way countries/ companies with the ambition to grow and be successful is to access the best talent in a better way. That’s where G-P comes in to support, and we see plenty of opportunities in the consumer and enterprise technology, biomedical sciences, finance, healthcare, and manufacturing industries,” he says.

Specifically, G-P sees that there are three emerging trends that will impact HR tech and hiring over the next three years–access to global insights/data, frictionless global expansion, and full employee lifecycle management–with all three being complemented and enhanced by technology such as artificial intelligence, automation and customisable SaaS solutions.

“Especially in our ‘remote’ world, how can you assist your team if you don’t know what they require? Learn everything you can about your team so you can keep a better eye on their morale. Keeping your crew’s morale up is beneficial to everyone… except the competitors. You must recognise the differences and supply your colleagues with the unique assistance, training, and tools that each person requires, whether they need supervision or training or are ready to take on new tasks on their own,” Ferguson says.

“However, make sure you’re evaluating how they’d feel in their shoes, not how you’d feel.”

Also Read: Will AI replace humans in customer service?

Of all these trends, when it comes to the company’s own technology, G-P sees the highest interest and demand in access to data to insights as business leaders look for information to help support and inform their global strategies and inform.

“The opportunities tied to global employment are huge – well over US$50 billion. Currently, there are only hundreds of thousands of knowledge workers available in the EOR space; there is an opportunity to expand this model to hundreds of millions,” Ferguson explains further.

“Tapping into even a fraction of this workforce would be significant, but there are huge hurdles – access to local market insights and expertise, understanding local labour laws and compliance requirements and infrastructure to build and manage a distributed workforce. G-P Meridian Suite addresses these pain points through new comprehensive solutions – like G-P Meridian IQ, Advisor eLibrary and, Marketplace – that enable companies to expand globally and unlock opportunities for individuals.​”

To elaborate further on the company’s plan, G-P will be product-focused this year and committed to rolling out the G-P Meridian Suite.

“With the G-P Meridian Suite, now we see a new way to enable global growth with complete compliance, rich insights and global expertise that power full employee lifecycle management with an efficient alternative to traditional HR technology,” Ferguson continues.

“​While the rest of the industry prioritises HRIM and Payroll software integrations, embedding companies in more complicated contracts, our offerings better position G-P to tap into the total addressable market of 350 million global knowledge workers that represent well over US$50 billion in value. G-P will continue to take advantage of industry growth as we believe the industry has the potential to grow five to 10 times over the next four to five years.​ G-P is reinventing the category we created, removing every barrier that stands between businesses and the global talent pool.”

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Image Credit: G-P

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Filipino B2B e-commerce marketplace Shoppable Business has secured US$1.15 million in an oversubscribed pre-seed funding round, co-led by Foxmont Capital Partners and Seedstars International Ventures.

An unnamed global network of angel investors also participated.

The startup will use the funds to grow its business development team, develop more products and features, and expand into new regional markets.

Founded in 2022 by Carlo Silva, Sam Blanquera, and Chris Blanquera, Shoppable Business aims to digitise procurement and wholesale distribution for businesses in the Philippines, where procuring authentic branded products online and offline is hard.

Also Read: Carro invests in digital content, marketing services agency Driven Communications

Shoppable Business offers thousands of products from trusted brands, such as computer equipment, furniture, appliances, construction supplies, made-to-order goods, and food.

In addition to product discovery, the platform also provides services such as marketing, sales support, procurement outsourcing, logistics, financing, and payment infrastructure.

Shoppable Business is a marketplace partner of GS1 Philippines, the global standard for barcodes and product identification in 116 countries, with two million member companies. It also issues official BIR-certified sales invoices and receipts, which companies need to claim the full purchase in the Philippines.

“Our cost-effective e-commerce procurement technology, access to 100 per cent authentic branded products and services at wholesale prices with no MOQ, empower entrepreneurs so they can focus on growing their business,” said Silva.

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Flash Express, owned by Flash Group, is an all-in-one logistics service provider serving e-commerce players.

A unicorn company, Flash Express has so far attracted over US$780 million across several funding rounds from investors, including Buer Capital, SCB 10X, eWTP, PTT Public Company Limited, OR Retail Limited, Durbell, and Krungsri Finnovate.

In this interview, Flash Group CEO Komsan Saelee shares how the group grew in the past two-three years, how the current global economic slowdown is affecting its business, the market opportunities that emerged due to the economic downturn, and the company’s working culture.

Edited excerpts

How has been the past two to three years for Flash Group from a business growth perspective? How did it tide over COVID-19 and the economic slowdown?

During the first year of the pandemic, it was a favourable period for the logistics industry, and not only Flash Group and other players gained market share. Flash was able to handle delivery volumes reaching millions of parcels. We also started looking for opportunities to expand our business into Southeast Asia.

Flash Group provides services in Thailand, Malaysia, the Philippines, Indonesia, Laos, and Vietnam. We are preparing to cover the entire Southeast Asia region by 2024.

After the intense period of the pandemic subsided, the logistics market also began to decline. The growth of e-commerce, although present, was not as robust as anticipated by all parties. The high management cost and the market situation have slowed down the business.

Also Read: Flash Express adds US$150M more to its kitty, becomes Thailand’s first unicorn

However, Flash has been able to adapt by adjusting our business plans promptly. We always have Plan B and Plan C for overall business management. We expedite cost management and policies to ensure the organisation moves forward steadily.

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

The overall global economic situation indicates that the global economy will experience a slowdown or slower growth than the previous year due to various factors.

However, the overall economic outlook for Thailand this year is expected to show slightly better growth than the previous year’s. This is partly due to the recovery in tourism and increased domestic and foreign investments that have returned.

Meanwhile, Flash Group continues to follow our original expansion plan in Southeast Asia (SEA). This means that the global economic slowdown has not significantly impacted the business in this industry.

The e-commerce market continues to expand, although fluctuations may occur during certain periods. Overall, the market still demonstrates growth. The company closely monitors Thailand’s global economic situation and other relevant factors. We have developed contingency plans for both the medium and long term to ensure preparedness for coping with the situation and aligning the company’s policies accordingly.

Amid the current economic conditions, consumer purchasing power remains high, as evident from the continued increase in online platforms, which are experiencing profitability this year after previously facing losses.

Additionally, consumer behaviour in choosing our services has remained consistent. This can be seen from the growing number of customers, with an average daily peak parcel volume exceeding 2 million pieces.

This indicates that the strategies previously employed by Flash Group, such as pricing, accessibility to remote areas, and an effective IT system, continue to be successful. These factors are considered strengths of Flash.

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

The current market situation has little impact on Flash’s financial strategy. We regularly perform materiality assessments, including all actual and potential factors impacting our finances or operation. We have also established a monitoring process to follow up and review management approaches related to those material topics.

Lastly, we set up metrics to evaluate our performance through corporate and department OKRs to ensure we can achieve our business purpose and generate long-term value for our sustainability.

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

There hasn’t been any official news regarding the latest fundraising round. However, every fundraising round is always challenging, and each round presents challenges.

Regarding the overall investor perspective, we believe everyone is looking for opportunities and tends to choose companies with a future potential to generate income and profit. Therefore, the state of the economy may not be the primary indicator of its impact on fundraising.

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

Flash has implemented measures to continually improve policies and plans within the organisation to manage costs and reduce unnecessary expenses. Particularly, energy costs are considered a major expense for us. Therefore, the company has incorporated technology and alternative solutions; for example, developing a technology application that analyses the most efficient delivery routes to ensure the fastest delivery of parcels to their destinations, enabling our delivery personnel to utilise it.

Additionally, the company has conducted experiments with electric vehicles for transportation, such as electric motorcycles and three-wheeled vehicles. These initiatives aim to enhance cost management and explore environmentally friendly options.

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

Flash continues to pursue our main objective of expanding business coverage throughout Southeast Asia and connecting logistics networks, with Thailand as the centre. We aim to create an ecosystem and infrastructure that positions us as the logistics hub in SEA.

In 2023, Flash is progressing according to the original plan and is preparing to open operations in another country. We are studying the market in Singapore and Vietnam and our existing expansion in Laos, the Philippines, and Malaysia. Furthermore, the European market is also considered a significant target for the company’s business expansion.

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

We are fortunate that despite the economic downturn, Flash Group’s business has been minimally affected. The transportation business has become an integral part of people’s lives and the driving force behind the economic system. Most of society still needs to make purchases, and transportation businesses have become crucial to people’s lives. During the COVID-19 pandemic, it acted as a force that changed people’s behaviour from offline to online.

However, we prioritise materiality by constantly reviewing and reassessing it. Our materiality encompasses trending issues or external factors that may impact our business. This allows the company to sense and respond quickly, resulting in corporate resilience in turbulent situations and economic downturns.

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

Flash continues to seek business opportunities to increase market share in Thailand and internationally. We focus on developing and improving our services to meet the needs of various target customer groups, including online businesses and individual customers.

We emphasise a policy of offering a diverse range of bundled products and services, catering to both corporate clients and online merchants. Furthermore, we seek business partnerships to expand our reach and coverage across different industries, including courier and logistics services. Flash constantly innovates and develops new services and offers to meet the evolving demands of our customer base.

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

The cultivation of five core values is essential for Flash Group. Customer-first means prioritising customer needs, while Result Oriented involves actively contributing to the business and striving for the best outcomes. Teamwork emphasises collaborative efforts and continuous learning within the team. Integrity entails acting honestly and doing what is morally right. Dedication represents a passionate commitment to achieving both individual and team goals.

These beliefs and attitudes guide Flash Group, shaping how people interact with customers and colleagues. They provide a comprehensive understanding of the company and foster self-awareness among individuals. Moreover, these values form a vital foundation for the company’s growth and ability to adapt to changing circumstances.

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

Flash Group believes we have consistently operated our business with a profit-driven approach for sustainable growth, especially when the startup industry has faced new realities.

With the Federal Reserve’s interest rate hikes and the decline of Silicon Valley Bank, investors have become more cautious, causing startups to reassess strategies that heavily rely on fundraising. Therefore, what is essential now for startups is to build investor confidence by having a business plan that goes beyond relying solely on fundraising but also generates revenue from customers. Then we can have the opportunity to navigate through the current circumstances successfully.

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

For those who are interested in initiating a business venture, it is recommended that you engage in genuine and comprehensive research. Identify the distinctive qualities that differentiate you from competitors in that industry and determine what value you can offer your target customer base. Once you understand this, have faith in yourself and actively pursue your goals. Additionally, timing is also a critical factor that contributes to achieving success.

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?

Flash has internal management within the organisation divided into three eras: the era of empowerment, the era of regulations, and the era of cultivating organisational culture. In the first era, which we call the era of empowerment, the focus was on results because it was a starting point where we did whatever it took to satisfy customers with our services and make them return to use our services again.

Also Read: Flash Express secures US$200M Series D to expand its e-commerce logistics service in SEA

The next era is called the era of regulations because after doing business for two years, we gained customer acceptance, resulting in a significant increase in daily shipments. With more employees, we had to adapt by implementing regulations, having auditors to examine accounts and strict financial controls. The advantage of this era was that everything was done according to regulations. The company did what it should do, and we had employees who understood the organisation, worked as a team, and were more professional.

We are in the third era, which is the era of cultivating organisational culture. We have five core values that we use in our work. We strive to instil these values in our employees so everyone works together to achieve the organisation’s goals. Thus, we are confident that our people will show this strong and fighting spirit against all the difficulties and achieve our goal. This will build investors’ confidence in our business success, even during this challenging time.

We are focused on the mindset of individuals who can deliver good work under the company’s planned direction and reflect the business performance, which will build long-term investor confidence.

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The generative AI landscape has seen warp-speed growth in recent months.

Take ChatGPT, for example. The world-famous chatbot boasts 25 million daily visitors and currently holds the record for the fastest-growing consumer Internet app—reaching one million users in just five days.

Globally, popular platforms such as Duolingo, Khan Academy, and Stripe are also embracing the generative AI trend, introducing AI-powered features into their platforms.

But perhaps generative AI’s meteoric rise is most evident in the startup space. On Y Combinator’s Startup Directory, the prestigious startup accelerator known for backing successful ventures like Airbnb, Coinbase and Dropbox, the number of startups tagged as “Generative AI” in its Winter 2023 batch made up 22 per cent of the cohort, surpassing the combined number of startups with the same label over the past five years.

Across the globe, generative AI is now being used to power a diverse range of industries, from content marketing to deep tech engineering. At the time of writing, the number of generative AI startups under Y Combinator stands at 108 and counting.

The homegrown startups making waves in their respective verticals

Standing out in one of the fastest-moving tech spaces is no easy feat.

Against all odds, these three trailblazing homegrown startups have received the prestigious backing of Y Combinator and are continuing to lead the pack in their respective verticals.

Also Read: Use AI to clone yourself with Oleksandr Vysotskyi

We speak to the Founders to learn more about what they think of humanity’s future with generative AI.

Hypotenuse AI (YC20)

Hypotenuse AI was founded in 2020 by Singaporeans Joshua Wong, a former machine learning scientist at Amazon Alexa and Cambridge University alumni, and Low Lin-Hui, an early hire in Stripe’s APAC team and ex-founder of her own e-commerce brand.

What does Hypotenuse AI do?

Hypotenuse AI is an AI content marketing platform that manages and creates content for businesses, including blog articles, product descriptions, AI images and advertising copies. Hypotenuse’s AI is built using proprietary machine learning techniques designed especially for marketers and copywriters to write high-quality, high-conversion content that matches a brand’s tone and style.

How did Hypotenuse AI come about? What inspired you to start it?

Through a personal pain point.

During my time as a machine learning researcher at Amazon, I was helping a colleague to start an e-commerce website selling vegan soap bars. We realised that the most frustrating part of this process for us was getting the copy written for product descriptions and marketing.

Given my background, I started building out AI models to automate this process and realised that while it was a challenging problem, it was possible to solve. I went to speak to a dozen businesses and realised that it wasn’t only a problem for us but for many online companies out there.

So I left Amazon to solve this problem for all businesses out there.

Generative AI tools are becoming increasingly popular in recent months. What are your predictions over the next year?

Generative AI will become widespread in marketing teams globally. The hallucination problem (of AI making up facts) still won’t be solved, but it will be greatly reduced to the point that it beats human error rates in many areas. The cost of large language models will continue to fall. Multimodal models will rise—ones that work across video, audio, text and more. Advancements will keep pouring out of research, and the hype around AI will still continue to grow. It won’t slow down yet.

Smaller open-source AI models will gain popularity, but the biggest advancements will still come from large language models that are too gigantic for the average user to train. Many generative AI start-ups will die because they created fancy demos but never found product market fit. A handful more billion-dollar generative AI start-ups will be spawned.

Governments will begin to regulate the development of the most advanced AI models. Educational institutions will be in an existential debate, but good ones will embrace generative AI carefully and adapt parts of it to fit into their curriculum. PhDs in AI become less relevant, but engineering with these models become increasingly in demand. The face of things we took for granted as constant in our lives would change—including how web search is done, how we find the right words to explain concepts, and

Yuma.ai (YC W23)

Yuma.ai was founded in 2023 by Guillaume Luccisano, a French software engineer and serial entrepreneur living in Singapore and a seed investor in over 50 startups in the US and France. His first startup, Socialcam, was acquired by Autodesk in 2012.

What does Yuma do? 

Yuma is ChatGPT for customer support. We focus on helping Shopify merchants with their support burden. We are a one-click install app on top of their helpdesk software, such as Gorgias or Zendesk. Once installed, we start suggesting the best draft for answering support inquiries.

How did Yuma come about? What inspired you to start it?

Yuma got started by accident. This is my third YC startup after Socialcam (W12) and Triplebyte (S15). I started playing with LLMs in late 2022 and released Yuma as a prototype for fun in mid-December 2022 and was overwhelmed with demo requests. That’s when I knew I was onto something and had to turn this into a real company once again.

Generative AI tools are becoming increasingly popular in recent months. What are your predictions over the next year?

The pace of change is currently astonishing. Although we may not yet fully realise it, AI will have a profound impact on our day-to-day lives, potentially as significant as the introduction of the smartphone and the internet.

Many roles will need to adapt or change, and we will have to learn how to harness the power of AI. Education, for example, will never be the same. On a global scale, AI will become a major geopolitical focus and will be a key competitive advantage for nations that own the best technology.

Also Read: Regional expansion, careful approach to fundraising remain key for SEA fintech startups to grow

Defog.ai (YC W23)

Defog.ai was founded in 2021 by Medha Basu (left), a former journalist, and Rishabh Srivastava (right; interviewee), a full-stack developer and data scientist living in Singapore.

What does Defog.ai do?

Defog is an AI data assistant that developers can add to their apps—no machine learning expertise is required. For example, fintech companies use Defog to help their users analyse complex expense trends just by asking questions in plain English.

How did Defog.ai come about? What inspired you to start it?

Prior to starting Defog, Rishabh had run a data company for six years. His biggest limitation in scaling the business was the time spent in servicing ad-hoc questions asked by customers. With LLMs improving, he realised that an AI system that could generate and execute Python or SQL code for answering user questions was becoming feasible. And that led to the start of Defog.

Generative AI tools are becoming increasingly popular in recent months. What are your predictions over the next year?

Generative AI will start moving from consumer and SME usage to the enterprise. Privacy and governance considerations will be critical for this, and we will see smaller models that can be deployed on-premises to do specialised tasks get more adoption.

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Southeast Asia’s leading integrated car e-commerce platform, Carsome Group, has closed a new round of funding, bringing its total raise to approximately US$200 million.

The round saw participation from existing investors, including 65 Equity Partners, Seatown Private Capital Master Fund, Qatar Investment Authority, Gobi Partners, and Asia Partners.

EvolutionX Debt Capital, a growth-stage debt financing platform that provides an alternative source of financing to technology companies in Asia, also co-invested.

Carsome aims to digitise the region’s used car industry across Malaysia, Indonesia, Thailand, and Singapore. Together with subsidiaries iCar Asia, WapCar and CarTimes, Carsome provides end-to-end solutions to consumers and used car dealers across the decision funnel, from car content consumption, car inspection, and ownership transfer to financing and other ancillary services.

Also Read: Carsome acquires WapCar, AutoFun to strengthen automotive content strategy

It claims to sell over 150,000 cars annually and serves more than 15 million unique customers monthly across its diverse online and offline channels in the region. In addition to achieving over 30 per cent growth in revenue and reaching profitability, its ecosystem companies have also contributed to a 60 per cent reduction in the group’s customer acquisition cost.

Currently, the group has more than 4,000 employees.

In Q1 2023, Carsome hit an operational profitability milestone for the first time on the back of significant growth in trade margin, which doubled compared to the same period last year. Over 80 per cent of the trade margin came from transaction margins.

In 2022, the group announced its revenue grew 250 per cent to US$1.5 billion, with the newly established regional retail line, Carsome Certified, contributing 35 per cent.

Carsome Service Centres (CSC) have seen more than 100 per cent month-over-month growth since its launch at the end of last year. They are expected to reach nationwide coverage in Malaysia by the end of Q3 2023.

Co-Founder and Group CEO Eric Cheng said: “We have spent the last eight years building a more trusted way for customers to transact within Southeast Asia’s used car industry. Our comfortable liquidity position and strong backing from both existing and new investors place us on solid footing to deliver the world’s first integrated car ownership ecosystem, going beyond just buying and selling cars to include ancillary services across the whole ownership lifecycle.”

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WiredScore defines and certifies digital connectivity and smart technology in homes and offices globally. Founded in New York in 2013, WiredScore claims to have certified more than 800 million square feet of commercial and residential space, impacting more than eight million people across 37 markets.

Last year, the company expanded into Asia by opening its regional headquarters in Singapore. In late March this year, it opened an office in Thailand. So far, WiredScore has raised US$28 million across four rounds from Bessemer Venture Partners, Fifth Wall Ventures, Sterling VC, Beringea, Cushman & Wakefield, Crow Holdings, and Taronga Ventures, among others. This includes a US$15 million Series B funding in 2022.

e27 recently caught up with Thomasin Crowley, Global Director of APAC at WiredScore, to learn how the company has been addressing different challenges in the market, including the current economic slowdown.

Excerpts:

How have the past 2-3 years been for WiredScore from a business growth perspective?

WiredScore’s mission is to make the world’s buildings smarter and better connected. In line with this, we’ve continued to set the standard for technology in the built world in the past 2-3 years by assessing and improving global digital connectivity and smart capabilities in buildings through our WiredScore and SmartScore certifications.

As part of our global expansion plan, we are thrilled to have launched in Asia with the opening of our Singapore office in March 2022, our first office in Asia Pacific (APAC), which also serves as our regional headquarters. Since then, we’ve expanded our offerings to Hong Kong and, most recently, Thailand, as we aim to bring integrity and learnings from a global perspective to facilitate and advocate for the region’s transition towards a first-class, smart built environment.

To date, we have worked with over 40 owners and developers across nearly 150 buildings in APAC, certifying more than 60 million square feet (5.5 million square meters) of space.

Also Read: ‘Develop a wartime mindset during global crisis like this’: Xendit CEO Moses Lo

Some of the leading landlords and developments in Asia that we’ve been partnering with include:

• Singapore: AEW, Frasers Property, IOI Properties, Keppel REIT, Lendlease, PAG, and Shaw Towers Realty,
• Hong Kong: Swire Properties, Henderson Land Group, Kerry Properties, Nan Fung Group, Sun Hung Kai Properties, Sino Group and Empire Group
• Thailand: APAC Land, Frasers Property (Thailand), Magnolia Quality Development Corporation (MQDC), Muang Thai Life Assurance, One Bangkok, and Siam Motors

Across the globe, more than 800 million square feet of commercial and residential space have been committed to WiredScore certification, impacting more than 8 million people across 37 markets.

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?

With our strong business fundamentals, a proven track record across North America and Europe, and a robust growing footprint across APAC, WiredScore empowers building owners to combat fluctuating social, economic and climate challenges head-on, leveraging technology implementation. We aim to expand widespread access to our offerings to encourage and foster greater connectivity, reduce carbon emissions, increase resilience against cyber threats, and enhance the health and well-being of building users worldwide, all via the power of technology in the spaces we occupy.

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

Given the current market conditions, we have carefully managed our financial strategy by selectively investing in priority areas that best support our long-term goals. We are focused on delivering more impact by continuing to bring industry-enhancing products to market and empowering people and places through technology. WiredScore, as a growing team, will be in a prime position to deliver new tools and features continuously that empower landlords and occupiers of WiredScore- and SmartScore-certified buildings to thrive.

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

We regularly review our growth projections to identify potential gaps for improvement to achieve results that are more closely aligned with our targets.

We registered good growth in the past year as we expanded our global presence from 24 markets to 37 markets. Besides opening our APAC headquarters in Singapore and subsequent launches in Hong Kong and Thailand, another key milestone for us in 2022 was our launch in the Middle East, where we work with key players in the United Arab Emirates, Saudi Arabia, and Qatar, among others.

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

Amidst a global recession, we’re already witnessing a phenomenon the premium tier of office space tends to hold its value better, underpinned by an ongoing flight to quality by occupiers, which bolsters demand for prime spaces. Developers and occupiers should come to a unanimous realisation that smart technology is almost a defining characteristic of a prime office – an essential rather than a luxury.

This presents significant opportunities for retrofitting real estate that is future-proofed for generations to come, a part in which WiredScore could play an integral role.

One prime example is Keppel Land, which introduced emerging technologies to Keppel Bay Tower (a commercial property owned by Keppel REIT) to transform the 20-year-old building into Singapore’s first BCA Green Mark Platinum (Zero Energy) commercial building. Keppel has worked with WiredScore to benchmark Keppel Bay Tower’s digital connectivity and smart building capabilities, turned it into a manifestation of Keppel Land’s Sustainable Urban Renewal capabilities, and achieved impressive WiredScore and SmartScore recognitions.

Having grappled with waves of economic fluctuations, sustainability is one area that shows no signs of diminishing and offers real estate leaders the needed flexibility and resilience to prepare for potential future shocks. As such, it becomes a priority to secure ESG+R (Resilience) against future change, ensure we create spaces that are resilient to external challenges, and mitigate any risk factor of our investments.

The urge to build best-in-class office space and portfolio resilience has posed a significant opportunity for office landlords to embrace technology and entice global occupiers, with WiredScore’s expertise as a stepping stone. Without ESG+R commitment in place, technological obsolescence will gradually become a price that investors find exorbitant to afford, and there will be a point when we are left with stranded, un-leasable, unsellable and, ultimately, unusable assets.

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

Focus is something we’ve had to hone as we’ve developed as a company. While we will always invest for longer-term goals, we won’t invest our time and resources in everything. Instead, we’ll look at initiatives with the highest chance of succeeding. This isn’t just a financial challenge but an operational one too.

We want to inspire deep focus across our business, and while that means turning down exciting opportunities in the short term, this is all with the view to having more capacity in the future for others.

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

Since establishing a footprint in APAC just over a year ago, we are excited to deepen our regional roots. We’ve seen how maintaining momentum in our other, more established markets has enabled us to see the impact of empowering people and spaces through technology.

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

We strongly believe that nurturing and sustaining a healthy workplace culture is key to maintaining engagement within the firm. During the COVID-19 pandemic, we reassessed our overall employee engagement strategy. We introduced several initiatives to drive morale and energise our team members as we adopted a remote working model. Since then, we’ve sustained our commitment to being a culture-driven company and have continued to prioritise our employees’ well-being.

Some of our initiatives include ‘Donuts’, a weekly, half-hour, casual chat with a randomly selected colleague to encourage people to stay in touch and get to know colleagues from our offices globally and a dedicated annual well-being budget.

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

We are seeing slight shifts in the industry, with businesses now focusing more on achieving a positive cash-flow milestone rather than pushing unsustainable growth and scale. Looking at funding in 2021, for example, it was all about growth. Now, the tune has changed, and investors care more about profitability. There is a danger in following trends of what investors want rather than the right strategy for the individual business.

For example, we didn’t raise our first round of funding until five years after we launched, which was the right thing for us and our business.

WiredScore has always grown with operational effectiveness at the core; this will continue to be our approach for as long as it works for us.

What challenges does a post-Series B startup like WiredScore face compared to an early-growth-stage startup?

Post-Series B startups like WiredScore tend to have a wider team with members dispersed across several markets worldwide, compared to early-stage startups that may have just established their footprints in a single or a few markets.

For example, we have members working in the US, the UK, Singapore and Australia. Therefore, startups with global operations must establish the right structure to support their growing team, network and objectives and maintain consistency and alignment across operations while being flexible enough to tailor their products and offerings to the local markets. The executive leadership team would also need to broaden their perspective and focus on making strategic decisions that impact the firm.

Also Read: Start building a solid financial foundation early when your team is small: Aspire CEO

Another challenge companies may face is repeating success. Early adopters help you to figure out a product market fit and turn this into a scalable playbook. Replicating this with later adopters with a more established product isn’t always as straightforward.

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

Later-stage startups have experienced the journey that early-stage startups are bound to go through. This is especially so in the case of fundraising. What we’ve learned and believe is the importance of finding the right investor-company fit when it comes to fundraising for early-stage companies.

Thousands of venture capitalists are out in the market looking for companies to invest in, but that doesn’t necessarily mean they are the right people for the firm. Early-stage companies must find the right strategic investor with relevant expertise to guide the firm’s growth journey and aligned values.

WiredScore has been fortunate to work with lead investors who are enthusiastic about our real estate space and have their values aligned with ours. Our strategic investors have generously devoted capital and expertise to helping us embark on an ambitious growth journey.

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?

Despite the challenging environment, WiredScore remains committed to doubling down on its solid business fundamentals. The company stands in a unique position to make material contributions to the future success of the real estate industry as it navigates some of the most pressing challenges it has ever seen, including climate change, health and well-being and widespread access to connectivity. We are confident that our laser-focused approach to championing technology as a lever for greater transparency will enable a faster optimisation of the buildings that house our day-to-day lives.

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