Thailand’s APX Logistics Solutions has secured an undisclosed amount in fresh investment from Japan’s SBI Ven Capital through its joint fund with NTU Singapore’s NTUitive and South Korea’s Kyobo Securities.

The logistics-tech startup, which expanded into Malaysia, Singapore, and Europe in 2024, is gearing up to extend its digital less-than-truckload (LTL) network into Vietnam by 2025.

The investment from SBI will provide APX with valuable expertise and industry connections, alongside support from its other investors, such as ORZON Ventures, a joint fund by Thailand’s PTT Group and 500 Global, the Asian Development Bank, and Wing Vasiksiri.

Also Read: APX wants to revolutionise logistics in SEA with ‘less-than-truckload’ innovation

“We’re on a mission to help businesses reimagine how transportation can be done in Southeast Asia with sustainability front and centre,” said Uwe Dettmann, CEO of APX Group. “We want to leverage our success and learnings in Thailand and expand to key markets across Southeast Asia, offering sustainable and seamless shipping services for businesses of all sizes.”

Founded in 2019 by Dettmann, Sorawit Tantrakulcharoen, and Sukanya Thamthada, APX provides door-to-door cargo transportation services through its network, with modern platforms for LTL and palletised cargo services. It aims to build a connected truck transport network in Thailand and the ASEAN region to improve logistic efficiency. It also reduces CO2 emissions and the number of trucks needed on the road in the long run; the system measures and tracks the emission impact within its overall network, actively making route recommendations to help reduce fuel consumption and carbon footprint.

At the core of APX’s green innovation is an AI-driven freight management system named Palli. The system uses proprietary data and algorithms to optimise truck-loading plans and coordinate the movement of assets across APX’s logistics partners in Thailand, Malaysia, Singapore, and Europe.

Also Read: APX gets ORZON’s backing to build a connected truck transport network in Thailand

APX’s customers can access solutions such as air and ocean freight management, customs clearance, warehousing and distribution, and specialised services such as fulfilment, kitting, and co-packing. Each solution is designed with sustainability in mind, aiming to reduce waste and enhance resource efficiency throughout logistics.

In July 2023, APX raised an undisclosed sum in pre-Series A funding led by ORZON Ventures.

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Image Credit: APX

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When seed-stage founders receive their first investor check, they invariably take one of several routes: 

• A) They rush to the tech press with their fundraising news. 
• B) They throw a WeWork-style party for all of their employees and stakeholders to celebrate the milestone. 
• C) They take to social media to boast of the achievements of their personal branding.

Based on my experience, the correct answer is actually D) none of the above. The founders who choose A, B, or C will inevitably fall by the wayside: Public relations, personal branding, and even company engagement should only come after what matters the most: customer retention and revenue optimisation.

The importance of retention and revenue optimisation

Upon receiving your first investment, founders should focus only on key performance indicators (KPIs) and metrics that help you understand your customers and, in turn, reduce churn while maximising revenue. This priority is built on a simple premise: You may have money now, but this will not always be the case.

For one, the investor dollars may dry up. In the past, you only needed a compelling story about your team’s growth, the product’s development, and an understanding of the market through the lens of your unique expertise. But times have changed: This narrative-driven approach to fundraising will not be enough to take a startup from seed to Series A.

Customer revenues may dry up just as fast. You may have cash in the back from users or clients, but because your startup is so young, there is little historical understanding of how soon or how fast these customers will leave you. You still only have a vague idea about your customer’s lifetime value.

In the face of these uncertainties, there is only one option that makes sense: You need to focus on driving two levers and two levers alone: reducing churn while increasing revenue. For example, a software-as-a-service (SaaS) company will need to figure out why enterprise customers are cancelling their contracts and, more importantly, determine how to thwart that. Their retention strategy may involve everything from key account management to offering automated discounts at the cancellation screen. The point is that they must understand and subsequently address the outflow of customers.

Also Read: Decoding PR: The essential tool for tech startup success

Some startups may be so early in their life cycle that customers are not yet churning, but they are not using the product. This sign is also a red flag: Your customers will soon be leaving out the door.

In addition, the business must optimise revenue. An e-commerce business, for example, can maximise revenue through cross-selling, upselling, and even greater personalisation—which can contribute to a revenue uplift of as much as 25 per cent, according to McKinsey. 

The efforts toward improved retention and revenue generation may not immediately lead to a hockey-stick graph, and that’s fine. Investors are not looking to evaluate you based on the current revenue generated by the dollar. Instead, they will evaluate you based on how well you have identified leaks and opportunities, which speaks to your startup’s aptitude and revenue for revenue growth in both the short- and long term.

Shifting the founder paradigm: Moving the goalposts for success

Retention and revenue optimisation is easier said than done because it requires such a deep paradigm shift. Founders are taught to sell, sell, and sell. They are hyper-focused on getting leads to sign across the dotted line or on getting customers to convert that there is considerably less thought on what happens afterwards.

Instead of looking at a finished sale as a “close” — of the natural endpoint of a process — founders must view it as only the first step in a much longer process of satisfying, keeping, and growing each customer. By moving the goalposts, founders stand a much greater chance of succeeding from seed to Series A: Their startup will rocket past competitors who mistakenly viewed the initial contract as the culmination of all business activity. 

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In Singapore, the medtech sector is booming. From just 59 in 2010, there are now more than 400 medtech companies. The Economic Development Board (EDB) estimates that the market  will hit US$225 billion by 2030 in Asia alone. 

However, this rapid expansion comes with its own set of challenges, mostly a compliance issue which has stifled innovation. 

Last year, the Health Sciences Authority (HSA) in Singapore intensified its efforts to crack down on the illicit trade of health products, resulting in the seizure of over 1.12 million units of illegal items and the removal of more than 12,000 listings from online platforms.

The majority of the removed listings were selling sexual enhancement or male vitality products, hair and beauty products such as anti-hair loss treatment, facial fillers and adulterated skin whitening products. 

What’s behind Singapore’s medtech boom

The growth in the medtech sector in Singapore in the past few years has been due to a few key reasons. 

The first being the support from the government, as they have been proactive in fostering a conducive environment for such companies. Initiatives like the Biomedical Sciences Industry Development Roadmap and funding support from agencies such as Agency for Science, Technology and Research (A*STAR) and Enterprise Singapore have been crucial.

Secondly, Singapore’s strategic location and connectivity make it an excellent base for companies to set up, thus providing easy access to the regional markets. 

Thirdly, HSA ensures that Singapore has a robust regulatory framework with high standards of safety, quality, and efficacy for medical devices. This reliability has bolstered confidence among global medtech firms.

Compliance: A double-edged sword

While HSA’s stringent regulations have enhanced the quality and safety of medtech products, they have also introduced significant compliance challenges. 

Also Read: The rise of generative AI in digital mental health solution

As artificial intelligence and digital health technologies evolve, protecting patient data and ensuring cybersecurity have become paramount. Medtech companies are now tasked with adhering to Singapore’s Personal Data Protection Act (PDPA) and implementing robust cybersecurity measures to safeguard sensitive information. This is no small feat and requires significant investment and ongoing vigilance.

Companies must comply with strict guidelines for labelling, advertising, and promotional activities. Ensuring that product claims are substantiated by clinical evidence and that all marketing materials comply with HSA guidelines is essential to prevent misleading information and maintain consumer trust.

Medtech companies cannot afford to be complacent. To stay ahead of regulatory changes, they must establish robust processes to monitor updates from authorities like HSA, the Food and Drug Administration (FDA), and the European Medicines Agency (EMA). Some of the critical steps they need to do is subscribe to regulatory newsletters, attend industry conferences, and engage with regulatory consultants.

Regulatory challenges can have both positive and negative impacts on innovation 

This focus on safety can enhance patient outcomes and increase trust in medtech products. 

An upside would be having a competitive advantage. Medtech firms that successfully navigate regulatory challenges and obtain approvals can gain a competitive advantage. 

Also, being compliant with rigorous regulatory standards can enhance a company’s reputation and credibility in global markets.

However, the cost and time spent complying with regulatory requirements, particularly for smaller medtech firms with limited resources, can be a huge issue. The investment in regulatory compliance may divert resources away from Research and Development (R&D) activities. 

Also Read: Solving multiple medtech problems with a single device powered by AI

Another downside would be risk aversion, wherein, in some cases, stringent regulations may discourage risky or novel innovations due to concerns about meeting regulatory standards. This could stifle breakthrough technologies that have the potential to revolutionise healthcare.

Advice for new entrants

For companies looking to enter the Singapore market, understanding regulatory requirements is paramount. Familiarising yourself with HSA’s regulations, including the classification of medical devices, setting up a Quality Management System (QMS), and navigating regulatory pathways for registration, importation, and market approval, is essential.

Another important piece of advice would be to understand the local market needs. The products should be tailored to the healthcare landscape and specific needs of the healthcare providers and patients in Singapore.

Future trends in regulatory requirements

As digital health technologies and AI applications in healthcare continue to evolve, regulatory frameworks must adapt to ensure safety, efficacy, and data privacy. This may involve introducing specific guidelines for digital health and AI-driven medical devices.

With the growing connectivity of medical devices and cybersecurity threats, future regulatory requirements may include stringent measures to ensure cybersecurity resilience. Compliance with data protection regulations, such as Singapore’s PDPA, will also be critical.

With the constant threat of global warming and climate change, regulatory frameworks may incorporate requirements related to the environmental impact of medical devices throughout their lifecycle. This could involve considerations such as eco-design principles, recycling and disposal requirements, and sustainable sourcing of materials.

As the sector evolves, so too must the regulatory frameworks, adapting to new technologies and emerging challenges to sustain Singapore’s position as a global medtech leader. The future of medtech in Singapore is bright, but only if we continue to innovate and adapt to the regulatory landscape.

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Fintech has revolutionalised the payments industry and apart from the grand global success, its presence in the Southeast Asian market has attracted many giants from all over the globe to invest and branch out to this region.

Online shopping, food ordering, online taxis, and even money lending are now powered through digital tools by fintechs. But, the most interesting part is the attraction of giants such asGojek, Uber, etcetera to invest in the fintech industries of Southeast Asian markets. 

As the digital financial services tend to generate annual revenue of US$38 billion in Southeast Asian markets by 2025, which is way more than the annual revenue of US$11 billion generated by far in 2019, I look at what led to its exponential growth.

Business models 

There are several vital business models being used by fintech companies in the Southeast Asian region. But, among all the business models the two highest-grossing business models are digital payments and digital lending services.

 

Digital lending services have already made a mark in the global markets and with the rise of digital lending in the Southeast Asian region, there have been new players emerging in the market infusing more capital. But, next to it is the most prolific business model for revenue– digital payments!

Also Read: Fintechs often encounter issues translating a POC into a production order, finds study

Digital payments have been the pioneer of all the digital financial services. It is set to cross the mark of US$1 trillion revenue by the year 2025 and this goes to show that the digital payments business model has been the prime focus for many new and old players in the Southeast Asian fintech industry.

New kids on the block

Fintech industry in this region is quite segregated and there has been no monopoly among the players. But, there has been a tight competition between the local and the global players. Some of the local players are gaining high due to the local presence over the years.

Top five fintech companies in Southeast Asia:

1. Tookitaki
   A Singapore-based enterprise fintech software solution provider.
2. Incomlend
   A Singapore-based online multi-currency invoice exchange platform.
3. Sunday INS Ltd.
   An AI-based insurance and claims solution provider.
4. Growpal
   An Indonesian funds distribution and funding management services provider.
5. Funding Societies
   A Malaysian finance and investment management provider for small businesses.

Consumer trends

As the fintech industry is rising to its peak, the Southeast Asian fintech market set a new annual record with US$701 million raised throughout the third quarter of 2019. Consumer trends have seen a fundamental shift in the adoption of new Fintech technologies.

With the digitisation of the fintech products and adoption of AI in the efficient management of financial services, it is creating new opportunities and new markets to be explored.

Also Read: Swiss fintech incubator F10 enters Singapore, soon to kick off accelerator programme

Many chatbots and AI-based startups are gaining traction and the most interesting part is the adoption and trust of consumers in these technologies for the management of their finances.

Innovative footholds

Innovations have found a new foothold in the fintech industry in the Southeast Asian region. The biggest innovative adoption for fintech in the region has been AI-based, machine learning and Natural Language Programming (NLP). 

Banks have the problem of storing BigData, process them and analyse them to design personalised financial products for their consumers, which can be delivered through highly reactive real-time apps developed through mobile app development. But, with the AI-based technologies and power of cognitive computing solutions, this has been achieved by several Southeast Asian banks and financial service providers.

Digital lending has been a popular innovation in the fintech industry. With modern technologies and innovations in data processing and predictive analysis, the digital lending paradigm has grown more personalised and custom-tailored for the Southeast Asian markets.

What does the future hold

The future of fintech evolution in the Southeast Asian markets lies in the innovations and development of some key factors. Connectivity is one of the important factors as the fintech industry is moving more towards digital expansion. In countries such as Indonesia, Philippines, Vietnam, and Thailand; rural areas have huge internet connectivity gaps.

Higher broadband access and digital literacy can change this scenario and bring in more users and consumers from rural areas. There are several other challenges to be overcome. Like the once where a centralised payment infrastructure is in need to reduce the hassles of cross-border payment regulations and issues.

Also Read: Strengthening its expansion into fintech, Grab introduces GrabPay Card

Countries such as Indonesia, Vietnam, and Myanmar need some data protection regulations. Though Singapore, Malaysia, and the Philippines do have data regulations for users. Other concerns over cross-border data flow and issues pertaining to the digital trade need to be addressed.

About 47 per cent of fintech Startups in the region depend upon the loans for funding and that is the key issue to be addressed for the fintech industry’s development in the region. This needs to be realised and more funding and venture capital should be infused into the startups and digital financial service providers.

So, if you are a financial startup, looking to storm into the fintech industry of the Southeast Asian market, then this the right time for you to cash in!

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This article was first published on December 20, 2019

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M-DAQ Global, a Singapore-headquartered fintech group, has completed the acquisition of Easy Pay Transfers, a licensed B2B payments service provider based in Malaysia.

This acquisition will bolster the Singaporean firm’s local payment capabilities in Malaysia, creating synergy with its existing B2B solutions for foreign exchange and cross-border payments.

Also Read: A new breed of fintech payment is here to slay the game

With this acquisition, M-DAQ Global is now present in seven countries and territories and serves nearly 39,000 clients worldwide.

Licensed under the Money Services Business Act 2011 in Malaysia, Easy Pay Transfers provides businesses with online payment services. As companies expand their customer and supplier channels across the Asia Pacific region, the Singaporean fintech firm aims to facilitate seamless cross-border transactions across regional currency corridors.

Jared Ang, founder and CEO of Easy Pay Transfers, said: “This deal signifies our united aim to expand our market reach across Southeast Asia and foster greater ease of conducting business.”

M-DAQ Global empowers businesses and individuals in cross-border transactions by providing a holistic suite of cross-border FX and payment solutions.

Also Read: M-DAQ raises funding from Samsung

In 2022, M-DAQ acquired Wallex, a B2B cross-border payments provider in Singapore, Indonesia and Hong Kong.

The firm is backed by international institutions, such as Affinity Equity Partners, Ant Group, EDBI, NTT Communications, and Samsung.

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