The global thermal energy storage market size reached US$6.3 billion in 2022. According to IMARC Group, the market is projected to expand to US$11.5 billion by 2028, with a compound annual growth rate (CAGR) of 10 per cent from 2023 to 2028.

The market is expanding due to increased demand for energy efficiency and sustainability, driven by the growing adoption of renewable energy sources like solar and wind power. Thermal energy storage (TES) systems play a vital role in this by storing excess energy from peak periods and releasing it when demand spikes, thus improving grid stability and reliability.

Amidst this trend, Alternō, a climate tech startup based in Vietnam, stands out as a significant player dedicated to reducing carbon emissions and generating revenue through the decarbonization of industrial and building heating systems.

Innovating energy storage: The Alternō Air solution and founding journey

Alternō operates in the green energy sector, providing Alternō Air, a Thermal Energy Storage (TES) system powered by sand batteries, which offers a sustainable solution for efficient and eco-friendly energy storage and utilisation.

Alternō Air operates by storing thermal energy in sand, a sustainable and abundant medium. Unlike traditional methods that rely on less efficient or environmentally harmful materials, Alternō’s technology excels in storing excess thermal energy, typically generated from renewable sources like solar or wind power, and releasing it as needed.

The system comprises an insulated container filled with sand embedded with heat transfer pipes. Silicon dioxide, the main component of sand, possesses remarkable heat retention properties, capable of stabilising temperatures up to 1,000 degrees Celsius. During operation, thermal energy stored in the sand is discharged through these pipes, providing heating or cooling solutions.

Also Read: Balancing act: Carbon Balance’s quest to tackle climate crises with tech-driven sustainability

Alternō’s founders Kent Nguyen, Hai Ho, and Nam Nguyen envisioned adapting sand battery technology to meet Vietnam’s energy needs. They explored applications like crop drying, leading to a promising prototype and securing a US$110,000 investment through Antler’s startup incubation program to launch their project.

Ho, who also serves as the company’s Chief Commercial Officer, highlighted, “What sets Alternō Air apart is its novel application of sand as a storage medium, combined with a state-of-the-art heat transfer system. This innovation provides a more cost-effective solution than conventional energy storage systems and significantly reduces carbon emissions. The system’s efficient heat retention capabilities mean that energy can be stored for extended periods, making it a reliable source of renewable energy.”

Empowering sustainability: Alternō’s impact and revenue strategy

Southeast Asia’s focus on sustainable energy solutions due to traditional energy reliance and environmental concerns presents opportunities in climate technology. Alternō stands to benefit from this trend with its technology, aligning with the region’s shift towards greener energy.

Alternō Air’s applications in agriculture and industry revolutionise processes like crop drying, offering a zero-emission alternative for products like tea, coffee, and rice. This ensures sustainable, cost-efficient, and high-quality drying methods, replacing environmentally damaging fossil fuel-based approaches.

Alternō Air also addresses thermal energy management in the industrial sector, particularly benefiting high-energy-demand industries like biotechnology and construction. Its sand battery technology aligns with global efforts to reduce industrial carbon footprints, potentially cutting operational costs while meeting environmental standards.

The firm has secured patents for this unique system, marking it as the world’s first to apply thermal energy storage in zero-emission drying processes.

Ho stated, “Alternō’s revolutionary technology has found a strong foothold in the agricultural sector, with robust demand for sustainable and efficient energy solutions. However, the demand for Alternō’s products currently outstrips supply, underlining the urgent need and market potential for eco-friendly energy solutions. The company is actively working to scale up its production capabilities to meet this increasing demand.”

Also Read: From greenwashing to green living: A guide for startups on sustainable marketing

Alternō employs a three-pronged revenue strategy rooted in a versatile business model generating income through direct sales and deployment of its thermal energy storage systems, supplemented by innovative financial solutions tailored to client needs.

• Sales and deployment: The startup’s primary revenue source is the sale and installation of its Alternō Air systems, targeting agricultural and industrial clients seeking sustainable energy solutions.
• Rent-to-Own Model: To broaden accessibility, Alternō offers a Rent-to-Own model, allowing clients to use its systems by paying a monthly fee of US$1,000, gradually acquiring ownership over time.
• Heat-As-A-Service (HAAS): Alternō provides Heat-As-A-Service, enabling clients to pay for thermal energy usage similar to a utility bill, appealing to those preferring operational expenditure over capital investment.

Funding journey and future plans

Alternō is on track to conclude an oversubscribed seed funding round of US$1 million in Q1 2024, following a pre-seed round, primarily from VC firm Antler, where it transitioned from concept to commercial product within six months. The firm also utilised grants and partnerships from key contributors like JICA, Qualcomm, Temasek Foundation, and P4G Partnerships to strengthen its financial and operational capabilities.

Alternō plans to expand beyond Southeast Asia, targeting regions heavily reliant on fossil fuels to reduce carbon footprints. By 2030, the company aims to achieve a monumental goal of reducing 100 million tons of CO2 emissions, contributing significantly to the global race towards net-zero emissions by 2050. Alongside this environmental target, the company also aims to generate US$100 million in revenue, demonstrating its sustainable solutions’ economic viability and scalability.

The escalating demand for green energy solutions, driven by government incentives and a global push for sustainability, positions Alternō for substantial growth and profitability. Alternō aims to transform the way energy is consumed and managed across multiple sectors.

With the ambitious goal of reducing the 52 per cent of global energy consumption attributed to heating and cooling, the company is poised to become a key player in the global transition towards sustainable energy practices.

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Image credit: Alternō

The post How Alternō’s vision is changing the energy landscape with sand batteries appeared first on e27.

Amidst swift technological advancements, the dynamics of customer experience are changing at an unparalleled speed. Across the globe, businesses are exploring innovative strategies to maintain a competitive edge, with global cloud communications partner, Vonage, leading the charge in reshaping communications to be more flexible, intelligent, and personal.

Vonage’s fully programmable unified communications, contact centre and conversational commerce applications are built from the Vonage Communications Platform (VCP) allowing for the integration of Video, Voice, Chat, Messaging, AI and Verification into existing products, workflows and systems. VCP enables companies to transform how they communicate, providing the flexibility required to create meaningful engagements.

With their goal of enhancing the customer journey through innovation and tech, Vonage is partnering with e27 to bring you “The Future of Customer Experience: Journeying into Conversational, Personalized, and AI-Driven Engagements” — an event poised to empower everyday customers with a focus on the transformative power of business messaging, conversational AI adoption, and the significant role of WhatsApp in shaping modern customer communications. This event aims to provide actionable insights into the role of emerging technologies in customer engagement, diving deep into the role of AI in personalisation and conversational chatbots.

Also read: Nagoya University transforming from Singapore beyond Six Nobel Laureates

A collaboration between Vonage and e27, the event focuses on the evolving landscape of customer interactions. The Future of Customer Experience: Journeying into Conversational, Personalized, and AI-Driven Engagements delves into the transformative power of business messaging, shedding light on the integral role played by conversational AI adoption in shaping the future of customer engagement.

Moreover, as businesses navigate the complexities of modern communication, the spotlight will be on the influential role of WhatsApp in redefining and streamlining customer communications. Attendees can expect a comprehensive exploration of cutting-edge strategies, innovative technologies, and practical insights that contribute to the seamless integration of conversational, personalised, and AI-driven engagements.

More than an event dedicated to sharing insights, the discussion will focus on actionable knowledge that participants can implement in their own respective organisations.

The panel discussion will not only spotlight the significance of business messaging but also delve into the nuanced adoption of conversational AI, illustrating how these technologies can revolutionise customer interactions. Through its expert-led discussions, participants will gain valuable insights into the strategies and tools necessary to harness the power of tech in bolstering business communication.

The Indonesia landscape: Harnessing AI

In Indonesia, the current state of business messaging reflects a dynamic landscape marked by rapid digital transformation. With a burgeoning population of smartphone users and an increasing reliance on online platforms, businesses recognise the importance of effective communication through messaging channels.

Popular messaging apps such as WhatsApp have become integral to daily life for personal communication and as a primary avenue for customer-business interactions. Companies leverage these platforms to provide instant support, deliver personalised services, and streamline transactions. The embrace of business messaging in Indonesia is not just a trend but a fundamental shift in how enterprises connect with their customers, creating an environment where quick and accessible communication is achievable without breaking the bank.

Also read: Strengthening mental healthcare in Asia through local data that enhances efficacy

WhatsApp has emerged as a central hub for customer interactions, solidifying its status as a preferred communication channel for businesses globally. The platform’s widespread adoption has prompted businesses to strategically integrate AI chatbots across various communication channels within WhatsApp. These chatbots, powered by advanced conversational AI, are revolutionising customer engagement by providing instantaneous responses, personalised recommendations, and streamlined transactional processes. Whether it’s resolving queries, facilitating purchases, or delivering proactive customer support, businesses are leveraging AI chatbots on WhatsApp to enhance efficiency and offer a seamless, 24/7 customer experience. 

Concurrently, Indonesia is experiencing a swift and widespread adoption of conversational AI in business. As businesses in Indonesia embrace this transformative technology, they are not only keeping pace with global trends but also reshaping the customer experience landscape in a nation where digital innovation continues to be a driving force in economic development.

Explore future trends and anticipated developments in the CX landscape for the year 2024, with practical insights on strategic starting points to achieve impactful success.

The importance of hearing it straight from the experts

Discovering the advantages of integrating Conversational and Generative AI into customer engagement through business messaging platforms is pivotal in navigating the evolving landscape of modern communication. By harnessing Conversational AI, businesses can offer instant support, answer queries, and guide users through transactions seamlessly. Generative AI, on the other hand, enables the creation of dynamic and context-aware responses, enhancing the natural flow of conversations.

Generative AI, on the other hand, enables the creation of dynamic and context-aware responses, enhancing the natural flow of conversations. As businesses grapple with a fast-changing market, we must come together and share ideas that can help benefit each other.

Vonage as a catalyst for insight and innovation

With these exciting developments in mind, global cloud communications leader  Vonage hopes to promote tech innovation in ways that enable businesses in Indonesia to connect with their customers better for more meaningful engagement. As such, the event will serve as a deep dive into how companies can strategise their customer engagement efforts not only to fit today’s trends but also to preempt emerging market shifts in the future.

The event will feature stalwarts in customer engagement across the Indonesia business landscape, including Ajay Tawde, Head of Experience at Ogilvy; Yanuar Rezqi, ​Head Of Customer Experience at Kasoem Group; Suzanna Buniardi, Key Account Director at Vonage Indonesia; and Juinita Senduk, Consultant at Bridge Academy Indonesia. Moderating the esteemed panel of experts will be Rio Kiantara, CEO of Advisia Group.

Also read: Empowering businesses: Lalamove’s impact on local enterprises

At the panel discussion, these industry giants will be answering the question of how companies can leverage business messaging in their operations to enhance customer communication and satisfaction. Moreover, the program will shed light on what trends to anticipate and how to strategise in ways that can aid your organisation in adapting swiftly and effectively.

They will be joined by thought leaders and industry insiders who are pushing the boundaries on the possibilities of customer engagement across Indonesia and beyond.

Your perspective matters

Your unique perspective is important to moulding the future of customer experience. We are eager to be joined by you as we delve into the potential of AI in revolutionising customer experience on February 29, 2024, at Pullman Jakarta Indonesia Thamrin CBD.

Join us for an engaging series of discussions that holds the promise of redefining the landscape of customer engagement in Indonesia.

For more information, visit the official event page here.

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This article is produced by the e27 team, sponsored by Vonage

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

The post Vonage to lead customer engagement deep dive in Indonesia appeared first on e27.

Doxa Holdings, a Singapore-based fintech startup providing a digital procurement platform for the supply chain space, has secured undisclosed funding from Cento Ventures.

The company plans to utilise the funds to expand into Malaysia.

Founded in 2019 by Edmund Ng, Leon Yeo, and Henry Kwan, Doxa helps connect and digitalise the workflow of buyers, suppliers, and financiers through its enterprise platform Doxa Connex. It also creates a single source of truth within a secure system architecture, enabling data authenticity and data analytics and helping buyers to trade seamlessly and financiers to assess and qualify financing.

Also Read: Unlocking Southeast Asia’s financial potential with AI-powered fintech

Primarily targeting the construction industry, Doxa Connex provides a clear trail of the transactions that occurred. Such data can provide financial institutions the credibility they need in assessing the creditworthiness of SMEs seeking financing. Only verified invoices can be triggered for financing requests.

“We set out years ago to solve real, present challenges a building contractor faced in Singapore and realised similar challenges exist in other industries such as logistics and healthcare. Hence, we are working on expanding our coverage for new kinds of customers and new geographies,” said CEO Edmund Ng.

Doxa is working with some top-tier contractors in Singapore. In addition, it has also set foot in the Indonesian market, starting with a customer in the healthcare industry.

Through various partnerships formed with Visa and top banks in Singapore, the company is now working on expanding to Malaysia through a collaboration with a key financial institution.

Supply chain financing for SMEs in Southeast Asia typically carries a higher risk due to limited credit data and tools for credit decisioning. This often results in lengthy risk assessment and underwriting processes for most SME financing applications. Considering the construction industry’s supply chain, characterised by a relatively long credit cycle, there is a clear and evident demand for credit financing,” according to Cento Ventures.

Also Read: SaaS revolutionises finance: From streamlining to AI integration

One of the ways to mitigate this challenge is through anchor financing, where SME suppliers and subcontractors monetise their invoices with large buyers and leverage the buyers’ credibility to obtain credit or financing. By digitising the procurement process where every transaction record is verified and recorded, financial institutions could then leverage these transaction data to provide invoice financing to SMEs.

“We invested in Doxa to help address these two challenges faced by SMEs when it comes to digitising their procurement process as well as enhancing their accessibility for credit and financing from financial institutions,” Cento said in a statement. “A digital procurement platform like Doxa is essential for expediting and automating transaction cycles that often occur manually. It is also crucial in tracking and analysing transaction data that are usually inaccessible to lenders — this could greatly improve credit accessibility for the supply chain industry.”

In 2022, Doxa raised US$2.2 million in a pre-Series A round.

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The post Cento Ventures invests in digital procurement platform for the supply chain space Doxa appeared first on e27.

In January, Indonesia-based AC Ventures announced that it had closed its fifth investment fund, ACV Capital V LP (ACV Fund V), totalling US$210 million.

Having invested in more than 120 companies, with this new fund, AC Ventures wants to add around 25 more companies to its portfolio. It has started deployment and announced funding rounds for companies such as MAKA Motors, Koltiva, Simplus, and Super Mum.

It also aims to seek out more investments in Indonesia in fintech, e-commerce, health tech, MSME enablement, and climate space, with a particular interest in consumer space sectors.

“We continue to believe that the demographics of Indonesia present the strongest investment case for the ASEAN region and that, more than ever, the ecosystem has reached a maturity level ripe for new generations of technology-enabled companies to thrive. We will continue finding the most promising entrepreneurs and businesses to work with and create societal and economic impact,” writes Adrian Li, Founder & Managing Partner of AC Ventures, in an email to e27.

Also Read: AC Ventures aims to drive positive societal change, economic impact in SEA

To understand more about how the VC firm aims to create an impact through their portfolio companies and Indonesian startups’ standing when meeting ESG-related expectations, check out this edited excerpt of our interview with Li.

What is the most significant trend in the Indonesian startup ecosystem today?

In recent years, the Indonesian venture capital landscape has significantly shifted towards investing in startups with higher-quality business models, emphasising the ability to generate positive cash flow. This trend reflects a maturing market where investors are increasingly looking for businesses that promise high growth and demonstrate a clear path to profitability. This change in investment criteria is a move away from the earlier focus on rapid user growth and market share acquisition, with less immediate concern for revenue and profit.

From a sector standpoint, there is growing interest in startups addressing climate change and sustainability. This reflects a global trend of increasing awareness and concern over environmental issues, but it is particularly pertinent in Indonesia, given its vast natural resources and the challenges it faces in terms of environmental conservation and climate resilience. Startups in renewable energy, waste management, and sustainable agriculture are attracting attention, signalling a shift towards investments that promise financial returns and positive environmental impact.

Additionally, general consumer businesses continue to attract significant interest from venture capital investors. With Indonesia’s large and growing middle class, startups in the e-commerce, fintech, health tech, and edutech sectors are seen as well-positioned to capitalise on the increasing digitalisation of consumer behaviours. These businesses often have clear revenue models and the potential for rapid scalability, making them attractive to investors looking for sustainable growth.

Also Read: Merchants selling via TikTok could be harming Indonesian economy: AC Ventures

This evolution towards more financially sustainable and socially responsible investing reflects a broader understanding within the Indonesian venture capital community that long-term success is driven by more than just rapid growth. It signifies a deeper alignment with global investment trends that prioritise sustainability in business models and the broader impact on society and the environment.

Recently, more and more investors have taken ESG into consideration when assessing potential investments. How do Indonesian startups fare in this matter? Are they ready for this?

In response to the growing emphasis on ESG considerations among investors, Indonesian startups are gearing up for a more mature and resilient ecosystem. Early signs suggest that these startups are well-positioned for the shift.

Early-stage deals are expected to thrive, especially in emerging sectors such as electric vehicles, renewable energy, healthcare, and food and agriculture. Additionally, fintech, commerce, and support for MSMEs remain attractive investment areas.

We have always emphasised the importance of economic and social impact for our portfolio, and to track this, we have adopted ESG tracking for our portfolio from the start of our last fund. Working with IFC as well as using The Upright Project, a tech company based in Helsinki that measures impact according to Northern European standards, to create a Net Impact Score for our portfolio, we can see what areas they perform well in as well as areas they need to improve on.

With an internal ESG function, we can also work with our portfolio to guide them on improving ESG scores. It is also important to note that improvements in ESG metrics can improve bottom lines economically, not just ensure businesses have a lower environmental footprint.

Also Read: Indonesia needs more female investors willing to back female founders: Helen Wong of AC Ventures

How does AC Ventures help its portfolio companies balance ESG and profitability?

Within our portfolio, we run baseline assessments across the four key dimensions of ‘environment,’ ‘health,’ ‘society,’ and ‘knowledge.’

The metric that guides our hand is the ‘net impact ratio.’ This percentage score quantifies how effectively a group of companies turns resources into positive impact. Per our latest measurements, our firm and portfolio’s overall net impact ratio delivered an above-average +37 per cent, with our strongest areas being ‘society’ and ‘health.’

The Nasdaq Small Cap Index (NQUSS) features an average net impact ratio of +29 per cent. On the environmental side, a few of our notable portfolio companies include electric motorbike manufacturing company MAKA Motors and sustainable farming and agriculture supply chain traceability platform Koliva. Another one is Indonesia’s responsible waste management company, Waste4Change.

On the societal side, a big aspect that we try to understand is job creation and how many lives our portfolio companies are improving. Our portfolio at AC Ventures has improved the lives of millions of low-income and middle-income earners and MSMEs. Most of our portfolio companies are in second-and third-tier cities, creating hundreds of thousands of jobs.

A substantial part of this comes from our fintech portfolio, with names such as KoinWorks becoming category leaders in productive financing for Indonesia’s MSMEs – of which there are more than 64 million that serve as the backbone of the nation’s economy at large.

Also Read: Wealthtech, insurtech, SaaS fintech are the new hot verticals in Indonesia: AC Ventures report

Is it true that environmental sustainability and profitability often go hand in hand?

Yes, it is increasingly evident that environmental sustainability and profitability are not mutually exclusive; they can and should go hand in hand.

Many businesses recognise the value of integrating sustainable practices into their operations for ethical reasons and as a strategic advantage. Efficient resource management, reduced waste, and a focus on environmentally friendly solutions often contribute to cost savings and operational efficiency, ultimately enhancing long-term profitability.

At AC Ventures, we have observed this synergy within our portfolio, where companies adopting environmentally sustainable practices demonstrate financial resilience and profitability.

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Image Credit: AC Ventures

The post AC Ventures: Investors put more focus on ESG, but Indonesian startups seem “well-positioned” for this shift appeared first on e27.

The Indonesian General Election is coming up on February 14–just next week.

Having lived in Singapore for years, I needed to reach out to family and friends at home to find out about the general mood in the home country recently. The answers were quite gloomy, to be honest. “We’re avoiding going out, if possible,” some said. “My business struggles; people are becoming extra careful about money.”

In a recent email interview with e27, Adrian Li, Founder & Managing Partner of AC Ventures, writes about how the upcoming 2024 elections introduce “a degree of uncertainty that may temporarily slow down startup investments.”

“As stakeholders navigate the political landscape, there is a natural inclination for investors to exercise caution and adopt a wait-and-see approach. This cautious stance arises from concerns about potential policy shifts, regulatory changes, or alterations in the business environment that could impact the risk-reward dynamics for startups. The period leading up to and immediately following the election might witness a slowdown in funding activities, as investors assess the post-election scenario and adjust their investment strategies accordingly.”

All of this might sound dreary, but Li sees that there is a possibility that the situation might improve in the future—depending on what happens post-election.

“… The exact impact [on the startup ecosystem] will hinge on the election outcome, subsequent policy decisions, and the government’s stance on fostering a conducive environment for business and innovation.”

Also Read: Beyond Singapore and Indonesia, SEA startups are working their way out of global crises

Startups and politics

When asked about the relationship between startups and politics in Indonesia, one might think about that particular moment in 2019 when former Gojek CEO Nadiem Makarim was named Minister of Education and Culture. Makarim was not the only familiar face in the local startup ecosystem to expand their wings into the public sector; several startup founders were also named as special presidential staff for the same period.

For some founders, this did not end well.

One might treat this as a cautionary tale of what can happen when innovation crosses paths with politics, but I personally see this as a testimony of the strength of the local startup ecosystem. The word “startup” no longer belongs to college kids in hoodies trying to build an app to disrupt the existing system; startup founders today find themselves where their potentials are acknowledged and their voices heard. They have unlikely opportunities to open up for themselves.

They are now powerful.

As always, there are always two sides to everything. On the brighter side, this means the startup community are becoming more influential in Indonesia’s different layers of life. On the darker side, some might wonder: Just how much power can one person have until it becomes too much?

Also Read: What is next for Indonesian e-commerce scene after GoTo, TikTok Indonesia merger?

I firmly believe in the philosophy of “with great power comes great responsibility”, as declared by the great philosopher Uncle Ben from the older Spiderman films. If you have been living in Indonesia for a while, you might understand how easily one can turn to the dark side when in a position of power.

So, as we wait for the uncertainty to pass, as we go through another day of our existence with diligence and perseverance, may we remember how our decisions and actions can impact something beyond ourselves.

May the best men win.

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Image Credit: prananta haroun on Unsplash

The post Startups and the Indonesian general election 2024: Thoughts on the intersection of innovation and power appeared first on e27.