Indonesian microfinance fintech firm Amartha secured a US$17.5 million equity investment from global nonprofit Accion via its Accion Digital Transformation Fund.

The fresh funds aim to help Amartha build a platform using data and AI to provide financial products and services to underserved women-led small businesses in rural Indonesia. They will also enhance Amartha’s MSMEs sector offerings, strengthen audience analytics, and drive digital service adoption to connect more people and businesses to responsible financial services.

In addition to providing investment capital, the Accion Digital Transformation Fund will offer strategic support to enhance customer engagement, operational efficiency, and product innovation through digital technologies.

Established as a microfinance institution in 2010, Amartha became a technology company in 2016. By incorporating an embedded lending and funding model for institutional and retail investors, Amartha streamlines personalised financial solutions.

Amartha offers payment services, a proprietary credit scoring system, and a cross-border funding platform that provides grassroots businesses access to capital, presenting them as profitable and impactful alternatives for institutional investors.

Also Read: Hong Kong-based Buyandship secures US$16M funding led by Altara Ventures

To date, Amartha claims to have disbursed over IDR25 trillion (US$1.6 billion) in working capital to more than 2.5 million women-led businesses in rural and peri-urban areas of Java, Sumatra, Nusa Tenggara, Sulawesi, and Kalimantan.

Ramdhan Anggakaradibrata, Chief Financial Officer of Amartha said, “Amartha and Accion have shared objectives — reducing inequality in access to financial services. We will not only meet the current needs of our customers but also anticipate future trends and challenges. This approach will help us remain at the forefront of fintech innovation, continually evolving to provide cutting-edge financial solutions that empower our customers and drive sustainable growth.”

Managed by Accion Impact Management, the Accion Digital Transformation Fund leverages Accion’s global experience in supporting banks and finance companies to connect millions of people and small businesses to the digital economy. Investments from the US$152.5 million fund focus on MSME-serving companies across South and Southeast Asia, Latin America, and Africa, providing growth capital and strategic digital transformation support.

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GenAI Fund is a new investment vehicle in Vietnam launched early this year by two former AWS veterans with immense experience building startups. The fund, backed by high net-worth individuals, aims to play a pivotal role in fostering innovation and advancing AI technologies in Southeast Asia.

The VC firm was created by Laura Nguyen, who founded and exited an education venture and played a crucial role in expanding Web3 and AI businesses across Southeast Asia for Amazon Web Services (AWS).

e27 caught up with Nguyen to learn more about the fund, its investment thesis and its goals.

Edited excerpts from the interview:

What inspired the founding of GenAI Fund, and what specific market needs does it aim to address in Southeast Asia?

The inspiration behind founding GenAI Fund stems from collaborating with friends to refine a Vietnamese LLM (Large Language Model). Upon presenting our project to VCs, we received feedback indicating their unfamiliarity with this space, particularly in advising on business models and strategic paths for startups.

Recognising this gap, we aim to be at the forefront of understanding founders’ challenges and providing valuable guidance. Our focus lies in Southeast Asia, where our market knowledge enables us to offer tailored support.

For instance, if a founder in Indonesia seeks to develop a Bahasa LLM, we can provide relevant feedback and assistance.

Can you elaborate on GenAI Fund’s investment strategy, mainly its focus on AI-first technology companies and early-stage investments?

GenAI Fund’s investment strategy centres on early-stage investments, aiming to be the pioneering investor for startups in the AI-first technology domain. Our focus is on being the first to provide financial backing to promising founders, coupled with ongoing support beyond the initial investment.

Also Read: Amazon to train 15K individuals in AI skills; to invest US$9B into cloud infra in Singapore

We diligently identify potential founders and offer meaningful connections through our GenAI Builders meetups and peer support via AI Co-working hours (a new concept where we invite select builders to come to an office space to work and learn together).

These initiatives foster a collaborative environment where founders can receive guidance, work alongside peers, and access resources vital for their growth and success.

How does GenAI Fund support the growth and development of the startups it invests in, particularly in terms of iterating through product, market, and technology strategy?

In addition to providing connections meetups, we bridge startups with VCs through GenAI VC Startups Speed Dating Sessions. These sessions enable direct feedback from industry experts — in this case, VCs who have seen different products and can provide feedback.

This early insight aids startups in iterating through product development to identify market fit.

Moreover, we offer technical support by partnering with mentors who provide guidance on GenAI models, benchmarking, and other technological aspects, ensuring startups have the necessary resources to thrive and innovate.

What criteria does GenAI Fund use to evaluate potential investment opportunities in Southeast Asia?

In evaluating potential investment opportunities in Southeast Asia, GenAI Fund considers traditional criteria like founder competence, competitiveness, and defensibility.

Additionally, we prioritise the speed at which the founding team can bring their solution to market and deploy it effectively. In a rapidly evolving landscape, being first to market is crucial for staying relevant and gaining traction.

We also emphasise the importance of creating realistic models rather than over-engineered solutions. Aiming for cost-effective solutions that resonate with customers ensures tangible value and sustainable growth in the long run.

Given your background in technology and entrepreneurship, how do you leverage your experience to support the portfolio companies of GenAI Fund?

Drawing from my background as a two-time startup founder and my involvement in refining the Vietnamese LLM alongside a group of friends, I hope to bring experience to support GenAI Fund’s portfolio companies.

Having navigated the intricacies of model selection, business model development, and cloud infrastructure utilisation, I understand the challenges and pitfalls that startups face, which I share with portfolio companies to help them save costs, leverage available resources efficiently, and expedite their journey to finding product-market fit.

What is the size of the fund? What is the average cheque size? How many companies do you plan to back from this fund?

GenAI Fund is a US$10-million fund. We invest between US$50,000 to US$1 million per startup. We are actively deploying the capital right now.

Looking ahead, what are GenAI Fund’s plans and aspirations for the future in terms of expanding its presence and impact in Southeast Asia’s AI ecosystem?

GenAI Fund is committed to expanding our presence and impact in Southeast Asia’s AI ecosystem. We will strengthen partnerships and grow our network of ecosystem collaborators, recognising the importance of collective support in this dynamic space.

Also Read: Microsoft to empower 2.5M Southeast Asians with AI skills by 2025

Concurrently, we will focus on optimising our existing programmes, such as GenAI Builders meetups, AI Co-working Hours, and GenAI VC Startups Speed Dating Sessions. These initiatives facilitate collaboration and mentorship and provide invaluable insights for peer VCs and startups alike.

By nurturing these connections and initiatives, we aim to deepen our influence and contribute significantly to the growth and development of the AI ecosystem in Southeast Asia.

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The article was first published on May 14, 2024

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MSD, a New York-based research-intensive biopharmaceutical company, has launched IDEA Studios, a new initiative aiming to fund and collaborate with entrepreneurs and early-stage companies focused on delivering transformative healthcare solutions in Asia Pacific and Europe.

Led by MSD Global Health Innovation Fund (MGHIF) and MSD’s regional teams, IDEA Studio Asia Pacific and MSD IDEA Studio Europe will combine the parent company’s corporate venture arm with the deep healthcare expertise of its regional business teams.

MGHIF plans to invest US$38 million in the initiative across both regions over the next three years.

As part of these efforts, MSD business teams in the Asia Pacific and Europe will collaborate closely with MGHIF investors to select and fund local entrepreneurs.

Also Read: Amartha secures US$17.5M from Accion to empower women-led MSMEs

Based in Singapore, IDEA Studio Asia Pacific focuses on enhancing access to vaccinations and cancer therapies. On the other hand, the European unit, based in Berlin, aims to innovate in early disease diagnosis, improve medication adherence monitoring for patients and enhance clinical trial recruitment strategies.

Joseph Romanelli, President of MSD Human Health International said, “We are constantly seeking to apply digital and data science technologies to improve patient outcomes and help accelerate our purpose of saving and improving lives. The launch of MSD IDEA Studios will offer entrepreneurs the opportunity to leverage our deep healthcare expertise to accelerate their impact and achieve meaningful innovation to improve patients’ lives.”

MGHIF is a growth investor partnering with innovative digital health and data science companies that facilitate and optimise biopharmaceutical operations to improve patient care. This investment strategy connects innovative companies with complementary technologies to develop integrated healthcare solutions.

MGHIF has US$500 million under management and provides growth capital to emerging healthcare technology companies worldwide. With a vision that data will be the currency in health care, GHIF invests broadly in digital health. MGHIF invests in platform companies with proven technologies or business models where MSD’s expertise and perspectives can accelerate revenue growth and enhance value creation.

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The Singapore Retailers Association recently confirmed that April’s sales figures have not been favourable, with most retailers reporting negative performance compared to the same period in 2023. Just last week, The Straits Times reported a 1.2 per cent drop in Singapore’s retail sales, performing worse than expected.

With retail spending at a low, the pressing question is: How can Singapore boost retail spending by appealing to Gen Z? Given Gen Z’s global spending power of US$450 billion, tapping into this demographic’s potential through unified commerce could be the solution for enterprising retailers.

Unified commerce and its benefits

Meeting evolving consumer expectations, particularly those of a digitally native Gen Z, requires unified commerce – which leverages technology to let retailers track all data from a single source of customer interaction across multiple channels and stages of shopping.

According to a Salesforce report, 71 per cent of Gen Z shoppers are willing to pay more for excellent customer experiences. A McKinsey report also highlights that customers engage with 3 to 5 channels on average before making a purchase.

Also Read: A paradigm shift on the Z axis: How Gen Z is shaping the new work culture

While the business case for unified commerce is well-established, many retailers are still in the early stages of adoption. 

Unified commerce offers several key benefits:

• Seamless shopping: It connects all sales channels (online, mobile, physical stores), providing customers with a consistent and flexible experience.
• Simplified operations: By consolidating backend and frontend systems, unified commerce streamlines operations and reduces complexity for retailers.
• Centralised data: It allows retailers to track all data from a single source, providing real-time visibility into customer interactions, inventory, sales, and other metrics.
• Real-time insights: This data enables retailers to monitor performance, identify trends, and react quickly to opportunities.
• Personalised experience: Unified commerce helps retailers gain a 360-degree view of customers across all channels, allowing for tailored marketing, product recommendations, and services.

In short, unified commerce empowers retailers to deliver a seamless, personalised, and connected shopping experience that meets the demands of today’s consumers.

The tech and retail situation in Singapore

Singapore presents a compelling case for unified commerce adoption. The city-state’s robust digital infrastructure and strategic regional hub status provide the foundation for seamless online experiences.

Additionally, supportive government policies, exemplified by the Smart Nation Initiative and the recently refreshed Retail Industry Digital Plan (IDP) launched by Enterprise Singapore and IMDA in September 2023, foster a business environment conducive to innovation. 

This commitment translates into concrete resources for retailers, including tools and training to enhance customer experience, optimise operational efficiency, and drive business growth. Compared to more mature markets like the US and UK where digital disruption is forcing adaptation, Singapore offers a unique advantage: a fertile ground for experimentation and accelerated growth in the realm of unified commerce.

Also Read: 5 lucrative strategies Gen Z investors use to empower themselves financially

This strategic positioning equips Singaporean retailers to capitalise on the global shift towards digital commerce and seize emerging opportunities.

Challenges and solutions

Unfortunately, the promise of unified commerce comes with several challenges:

• Outdated systems: Conventional brick-and-mortar retailers often depend on outdated systems that were not originally designed to handle the complexities of digital commerce. Modernisation efforts require strategic investment and phased implementation plans to minimise disruption and optimise cost-effectiveness.
• Data consolidation challenges: Both offline and online channels generate extensive data in disparate formats and standards. Effective data governance strategies are crucial to ensure data integrity and facilitate seamless data consolidation.
• Resistance to cultural change: Internal resistance to change can impede integration efforts within organisations. Overcoming these cultural barriers necessitates buy-in from leadership, comprehensive employee training, and an effective communication strategy.
• Organisational fragmentation: Many companies manage offline and online channels through separate teams, resulting in fragmented customer experiences and disjointed strategies. Breaking down these silos requires a focus on cross-departmental collaboration and establishing clear lines of communication to ensure alignment across the organisation.

Singapore’s retail sector stands at a crossroads. With Gen Z representing a significant portion of global spending power, there is a tremendous opportunity to revitalise the industry by adopting unified commerce.

By leveraging Singapore’s robust digital infrastructure, supportive government policies and innovative spirit, retailers can overcome current challenges and set new standards in customer experience and operational efficiency.

The time to act is now, and the path forward is clear: embrace unified commerce to capture the attention and spending power of Gen Z, ensuring a vibrant and thriving retail landscape for the future.

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The communication and marketing landscape is undergoing a revolution driven by automation advancements. While the efficiency gains offered by hyper-automation, the extensive use of Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) to automate a vast array of processes are undeniable, a more strategic approach lies in embracing human-centric automation.

Beyond efficiency: The drawbacks of excessive automation

Hyper-automation boasts impressive efficiency gains. AI-powered content creation tools can churn out content at an industrial scale, while ML algorithms facilitate laser-focused audience segmentation and campaign targeting. Using automated social media management and real-time chatbots can further enhance efficiency and outreach. However, this over-reliance on automation presents a hidden cost — the erosion of the human element that’s critical for successful communication and effective marketing.

Also read: Fostering inclusion: AI’s role in SEA’s education sector

It is imperative for us to work alongside powerful machines to unlock incredible insights from data as well as to automate repetitive tasks. This frees us to focus on our unique strengths and creativity. For example, in communication and marketing, we have the unique ability to connect through storytelling, building relationships, and understanding emotions. These are areas where AI can’t quite match our ability to connect with the audience.

While AI and automation are valuable tools, relying solely on them can feel impersonal. A social media feed full of robotic messages wouldn’t be very engaging, would it? The key is to leverage the best of both worlds: the efficiency of machines and the human touch that builds trust and loyalty.

People-centric automation: The power of collaboration

Imagine a future where automation works alongside you, not against you. Here, technology takes care of repetitive tasks like data entry and reports, freeing you to focus on what matters most: Strategic planning, creative brainstorming, and crafting captivating content.

Think of AI as your intelligent co-pilot. It gathers valuable insights from data to help you make informed decisions about your content strategy and campaigns. But the final call remains yours. While AI can be a powerful tool for content creation, its true potential shines when combined with the expertise of a communications consultant.

Let’s imagine a situation where a company needs to respond to an ethical and sensitive issue. A communicator with strong communication skills can craft a response that is empathetic and rebuilds trust, while AI can assist with analysing data and providing relevant information to support it.

The synergy of people and machine intelligence

The ideal scenario isn’t a battle between people and machines, but a synergistic collaboration. Imagine streamlined workflows that free up time for creative exploration, allowing teams to experiment with new content formats and storytelling techniques that resonate on a deeper emotional level. Imagine data-driven insights that fuel targeted campaigns that reach the right audience but also speak to their specific desires and aspirations. Imagine forging stronger customer relationships through personalised interactions informed by AI analysis, yet delivered with a person’s touch to help build trust and loyalty.

Also read: OceanBase INFINITY 2024: Pioneering Indonesia’s digital economy

What if the future of communication is shaped by people and machines working seamlessly side-by-side? How can AI and automation empower agency leaders and in-house creative leads? By understanding the role automation plays and its many advantages, we can create a smooth transition for everyone. Equipping employees with the right skills is crucial and this could involve training programs that enhance their creative and strategic thinking, along with data analysis skills to make the most out of the insights provided by automation tools.

The communicator’s edge: Creativity, strategy, and emotional intelligence

While collaboration is key, a more people-centric approach also acknowledges the unique strengths that we bring. Here’s how a communications consultant truly shines in marketing:

• Creativity and Fresh Ideas: Machines can crunch data and spot trends, but they lack that special spark of creativity. A communications consultant can take those insights and turn them into original concepts, captivating stories, and engaging content that grabs the audience’s attention.
• Strategic Vision and Decisions: Effective communication and marketing demands a clear understanding of the overall goals. Communications consultants excel at strategic planning, building long-term objectives, creating brand alignment, and analysing potential challenges and opportunities. These are key judgments that we use to consider to make well-informed choices that could fuel successful campaigns.
• Understanding Our Audience: Building genuine connections with the target audience is crucial for brand loyalty. We have emotional intelligence that allows us to connect with the audience’s needs, desires, and aspirations. With these understandings, we can craft messages that resonate deeply on an emotional level, while building trust at the same time.

Building trust and adaptability in the age of automation

Transparency and trust are the cornerstones of successful communication. By openly explaining the role of automation and its benefits, teams can foster a culture of acceptance and collaboration. Furthermore, a people-centric approach can foster a more adaptable and future-proof marketing team. As AI and automation continue to evolve, teams that have embraced a culture of continuous learning and collaboration will be best positioned to adapt to new technologies and leverage them to their full potential. This ensures that the communication and marketing function remains at the forefront of innovation, consistently delivering value and achieving its strategic objectives.

Also read: Driving innovation and growth in Southeast Asia with Employment Hero

In conclusion, the future of communication and marketing is not a world dominated by machines, but one where our creativity and strategic thinking are amplified by intelligent automation. When founders embrace a more people-centric approach, communication and marketing teams can unlock a future brimming with possibilities, forge deeper connections with their audience, and deliver impactful experiences that resonate further on an emotional level.

Finding the perfect balance can be a challenge, but startups don’t have to go at it alone. Agencies can be valuable partners in this journey since we are constantly on top of the latest trends. Working with an agency will bring a wealth of experience in experimenting with different strategies, allowing you to explore options and discover the perfect fit for success. This will also free you up to focus on your core strengths — building great products and serving happy customers.

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This article is produced by the PRecious Comms team, published by e27

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