Day: October 30, 2024

The State of Play: Emerging Trends and Future Prospects in the Philippine Market

Echelon Philippines 2024 gathered key players in Southeast Asia’s tech ecosystem, uniting startup leaders, entrepreneurs, and investors to support the region’s dynamic tech market and economic development.

The event’s keynote, ‘The State of Play: Emerging Trends and Future Prospects in the Philippine Market’, was delivered by Carlo Chen-Delantar, Founding Partner at Gobi-Core Philippine Fund (Gobi Partners).

In his address, Delantar explored the current state of the Philippine market, identifying both the drivers of its rapid growth and the challenges that lie ahead. As one of Southeast Asia’s fastest-growing economies, the Philippines boasts a startup ecosystem valued at nearly US$7 billion, supported by over US$300 million in early-stage funding and median seed rounds around US$800k.

Also Read: Julian Cua of BCG at Echelon Philippines 2024: Understanding Filipinos’ daily challenges to drive meaningful innovation

However, the ecosystem faces hurdles, such as high logistics costs and the need for stronger government support.

Delantar noted emerging sectors like health tech, agritech, and AI as areas with high growth potential. The Philippines has a robust consumer base for AI applications, positioning it as a promising market for innovation. He underscored the importance of policy changes, including startup visas and tax incentives, to sustain and accelerate growth. The conference underscored the Philippines’ pivotal role in the regional tech landscape, with a call for enhanced infrastructure and policy support to realise its full potential.

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Dear reader,

Singapore’s decision to inject US$332 million into deeptech startups through the Startup SG Equity scheme is a bold, forward-looking move that demonstrates its commitment to nurturing high-tech innovation.

Deeptech ventures—known for their groundbreaking research in areas like AI, quantum computing, and biotech—often face significant funding challenges due to high upfront costs and extended timeframes to profitability.

By expanding the scheme to cover early-growth-stage companies and raising government investment caps, Singapore is strategically addressing these hurdles, creating a more supportive landscape for startups to thrive.

The additional initiatives announced at SWITCH 2024 underscore Singapore’s ambition to be a global innovation hub. New programs like StageOne will help local and international startups leverage Singapore as a launchpad, while the expanded Global Innovation Alliance (GIA) network, particularly with new nodes in Amsterdam and Eindhoven, opens the door to the European market for Singaporean tech firms.

Furthermore, the government’s focus on open innovation challenges, especially in AI and sustainability, highlights its drive to tackle pressing global issues through tech.

These moves not only solidify Singapore’s status as an attractive destination for venture capital but also as a key player in global deeptech ecosystems poised for transformative impact.

Sainul,
Editor.

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NEWS & VIEWS

Singapore to inject US$332M into deeptech startup scheme
This comes amid a “slight decline” year on year in the total VC raised by Singapore-based startups so far this year – the figure stood at US$4B across close to 370 deals.

Vingroup’s new venture arm to invest US$50M in SEA tech firms
Named VinVentures, the fund is set to disburse US$50 million in the next three to five years, focusing on investments in early-stage companies in sectors such as AI, semiconductors, and cloud computing.

Khazanah launches national fund-of-funds to boost VC ecosystem
Khazanah Managing Director Amirul Feisal Wan Zahir said that through this catalytic initiative, Jelawang Capital will continue to grow Malaysian fund managers while crowding in regional fund managers with expertise and capital.

Supermom lands US$14M funding to connect brands with 10M+ parents across SEA
Granite Asia, AC Ventures, and Hearst Ventures are the investors; Supermom is an AI consumer data platform that uses the power of the mom community to provide learning opportunities and recommendations on products and services.

KXVC introduces KX Horizon to boost AI, Web3, deeptech innovations in SEA
KX Horizon will provide an expert mentorship network, strategic consultation, and access to funding sources for participating startups; This initiative seeks to attract visionary founders, investors, and partners to collaborate within the programme.

Borong, Maybank launch Malayasia’s first digital halal marketplace Salaam Market
The platform provides a digital marketplace for sourcing Halal-certified products at competitive prices, directly linking SMEs with suppliers.

Vietnam EV maker VinFast officially launches in the Middle East
VinFast, together with its partner Al Tayer Motors, officially opened its first dealership in the UAE, located in the downtown area of Dubai; The VF 8 model will be sold in the Middle Eastern market.

Indian fintech Slice seals bank merger
The merger transforms the Bengaluru-based startup into a banking entity; Slice, which gained prominence by issuing credit card-like products, will maintain its existing digital payment and lending services.

FEATURES & INTERVIEWS

Echelon Philippines 2024: Why the Philippines is the next big tech hub
The Echelon Philippines panel explored the nation’s economic landscape, key industries, and immediate market entry opportunities.

New Ventures: By focusing on value, SEA startups can build models that resonate with consumers
New Ventures plans to invest up to US$100 million over the next few years by making annual allocations from inDrive’s balance sheet.

As demand soars for alternative solar panel materials, Cosmos Innovation uses AI to make the search faster
Cosmos Innovation is an AI-focused company developing advanced solar technology with the goal of increased efficiency.

FROM THE ARCHIVES

How this founder is helping businesses accelerate tech transformation to aid economic recovery
New trends fade away just as quickly as they set in, but the key drivers of business growth remain the same.

How to incorporate sustainability into corporate strategies
With the impact of climate change around the globe, the push for corporate sustainability initiatives has never been greater.

Exploring the rise of finance-as-a-service in APAC
The fact that many fintechs aspire to win in the APAC region, and not just in domestic markets, gives finance-as-a-service a unique opportunity.

How AI, AR, and live streaming are changing the online shopping experience
Businesses are using AI-powered chatbots, product recommendations, and emerging technologies like AR and VR to create immersive and interactive e-commerce experiences.

Unleashing AI’s potential: The vital role of human guidance in AI’s growth and learning
Artificial intelligence and humans have the potential to become invaluable partners in our pursuit of knowledge, growth, and innovation.

Life in plastic, it’s not fantastic: Unraveling the causes (Part 1)
Asia stands as the world’s largest plastic-producing region, manufacturing approximately 51 per cent of the total global production of plastic materials.

How to build customer trust with improved data privacy
Protecting customer data privacy is paramount for cultivating consumer trust and ensuring business operations run smoothly.

The tale of the have-yachts and the have-nots in the proptech sector
The use of proptech can create an alternative for developers and can combine investors into a powerful buying group.

Top 4 lessons I’ve learned building a deeptech brand from scratch
Here I pen down my marketing journey, detailing how I developed a strategy to position Accredify as a thought leader and trusted brand.

How to shape Singapore’s attractiveness in deep and frontier tech
The frontier tech sector in Singapore needs to produce more promising research ventures that are geared towards commercialisation and international growth.

‘AIR’ review: 3 lessons for dealmaking and entrepreneurship
Nike has effectively over 70 per cent share in the basketball shoe market; this article summarises three key takeaways for founders and VCs from the movie, AIR.

Adopting electric construction machinery for a sustainable future in Singapore
Switching to eco-friendly equipment in construction sectors provides environmental, health, safety, economic, and efficiency benefits.

Unlocking hidden gold: How overlooked wet waste streams hold profit potential despite challenges
Wet waste presents a unique challenge due to its exceptionally high water content, often exceeding 80 per cent of the waste’s mass.

Balancing economic growth and climate action: Decarbonising SEA’s built environment
The rise of green buildings and climate challenges create vast opportunities for sustainable innovation in the built environment sector.

Navigating the climate tech landscape in Germany: Opportunities and pathways
Germany’s climate tech landscape offers opportunities for innovation and growth, backed by strong government support and a thriving ecosystem.

What makes a great customer experience?
The modern consumer is multifaceted and complex, reacting to a wide range of factors: economic, social, political, and beyond, and they are more demanding than ever before.

Digital transformation: It starts and ends with our people
Kickstart any digital transformation initiatives by involving your employees and helping them understand their roles, workflows, and needs.

New player emerges in Vietnamese startup ecosystem: Accelerator as a service
Emakase is bridging the service gap to serve “highly self-aware” startups and SMEs with tailored accelerator resources and innovation programmes.

How corporate innovation in Vietnam is fledgling the B2B startup ecosystem
Zone Startups is contributing to Vietnam’s push to leverage its well-known software outsourcing industry into a fledging B2B startup ecosystem.

How to scale your digital business
Now is the time to build a resilient and scalable business to handle the fluctuation of the consumer market and optimise revenue.

THOUGHT LEADERSHIP

The state of digitalisation in Malaysia 2024: How other Southeast Asian countries can learn from them
The future of digitalisation in Malaysia and Southeast Asia holds great promise, offering numerous opportunities for growth and innovation.

Looking for the next Shou Zi Chew: Moulding Singaporeans into global firm CEOs
It’s never easy being a CEO, but those at the helm of global organisations today have it tougher than most.

The post Ecosystem Roundup: Singapore’s US$332M fund to boost deeptech innovation | Vingroup arm to invest US$50M in SEA tech firms | Supermom raises US$14M appeared first on e27.

Indonesia-based lending infrastructure firm Finfra has received US$2.5 million in a funding round led by Cento Ventures.

Accion Venture Lab, Z Venture Capital, Matiss Ansviesulis (founder of Avafin), and existing investors also participated.

The company will use the new funds to expand onboarding capabilities for customers and target profitability. Additionally, Finfra plans to enhance its data analytics, scoring, and risk assessment products.

Additionally, the fintech firm has announced a partnership with Tyme Group, the multi-country digital banking group behind TymeBank in South Africa and GoTyme Bank in the Philippines. It aims to support Tyme’s expansion into Indonesia as part of its broader Southeast Asia growth strategy following its launches in the Philippines and Vietnam. Tyme can leverage Finfra’s platform to scale its embedded lending solutions, such as merchant cash advances.

Also Read: Finfra bags US$1M to provide embedded lending services to Indonesian businesses

“Southeast Asia is a central part of Tyme Group’s growth strategy, and Indonesia has long been a goal for our Group. Partnering with Finfra allows us to tap into Indonesia’s immense SME segment by leveraging its robust embedded lending infrastructure and network within digital platforms. This collaboration not only accelerates our mission of driving financial access but also enables us to offer innovative lending solutions to a broader audience of businesses and consumers in the region at an unprecedented speed,” Coen Jonker, Executive Chairman at Tyme Group, said.

Founded in 2022, Finfra allows non-financial platforms to integrate lending and unlock new revenue streams easily. Its comprehensive, API-driven infrastructure offers a full loan management system, scoring, portfolio analytics, and access to debt capital while ensuring regulatory compliance through its licensed affiliate.

The company has raised US$4.3 million in funding so far, including US$1 million from DSX Ventures, Seedstars, Cento Ventures, Fintech Nation, FirstPick, BADideas Fund, and Hustle Fund in June 2023.

. Since its last raise, Finfra claims to have doubled its client base and expects to more than double its quarterly gross profit in Q4 2024 compared to Q4 2023. The firm claims it recently facilitated over US$65 million in credit to underserved Indonesian businesses and business owners.

Indonesia, the largest economy in Southeast Asia, boasts a vibrant SME sector that is rapidly digitalising. By the end of the year, 24 million micro, small, and medium-sized enterprises (MSMEs) are expected to be online or using digital services out of the country’s total 64 million. The government aims to accelerate this transformation, targeting 30 million digitalised businesses by 2025.

The post Finfra secures US$2.5M to power Indonesia’s lending ecosystem in new partnership with Tyme Group appeared first on e27.

DCAP Holdings, a Malaysian fintech company focused on promoting financial inclusion, has bagged an undisclosed strategic investment led by Gobi Partners.

The capital will help DCAP accelerate its mission to provide equitable financial solutions to marginalised communities across Malaysia.

Also Read: How fintechs can contribute to the world’s sustainability goals

Founded in 2020 by Sonia Ng and Wilson Kok, DCAP leverages AI, machine learning (ML), data analytics, and automation to address the financial challenges of underserved and unserved consumers. Its go-to-market lending-as-a-service (LaaS) model allows traditional financiers to embrace digital transformation to streamline processes, enhance customer reach, and offer more accessible services for the underbanked.

Its AI/ML-powered Credit Scoring Model and Mobility Hire Purchase Lending solutions offer tailored and affordable financing options by seamlessly connecting financiers with borrowers through its proprietary tech-driven platform.

The company’s data-centric approach allows for fairer lending terms, designed for lower-income individuals, who currently account for 92 per cent of its customer base.

The startup partners with banks, credit companies, motorcycle dealers, and cooperatives. Since 2022, the company has provided green vehicle financing for electric two-wheelers (E2Ws).

Also Read: Exploring the rise of finance-as-a-service in APAC

Gobi’s investment is driven by DCAP’s potential to disrupt predatory lending by providing innovative financial solutions that empower vulnerable consumers. Using its proprietary risk framework, DCAP offers transparent loan options for lower-income groups. Its advanced credit scoring models enable accurate risk assessments, driving the digital transformation of traditional motorcycle retailers while helping borrowers access fairer financing.

The post DCAP nets strategic funding to advance financial inclusion with AI-driven lending solutions appeared first on e27.

As we approach the final quarter of 2024, the global venture capital landscape is undeniably in flux. Funding has tightened, and Emerging Venture Markets (EVMs) are also feeling the pressure.

Our latest quarterly update shows that the first nine months of this year saw a significant 45% year-on-year decline in total investments across markets in Southeast Asia, Africa, the Middle East, Turkey, and Pakistan. It’s a tough environment to navigate, and yet, not every market is feeling the pinch in the same way.

The standout story so far has been seen within the markets of the Middle East and North Africa (MENA). Despite global headwinds, MENA has managed to buck the broader trend, with just a 13 per cent decline in funding—far from the steeper contractions seen elsewhere. This resilience is no accident; it reflects the region’s increasing maturity, its appeal to international investors, and the strategic role it plays in the broader global investment narrative.

At MAGNiTT, we’ve been closely tracking these developments, and what we’re seeing in MENA is remarkable. The region’s startups raised US$1.3 billion in the first nine months of 2024, and although the number of deals dropped slightly, MENA has proven itself capable of weathering the storm.

In fact, Q2 and Q3 of this year both outperformed the same periods in 2023. This speaks volumes about the growing confidence investors have in the potential of this region.

Also Read: Golden Gate Ventures hits first close of US$100M MENA Fund

The driving force behind this performance is clear: international interest in MENA has surged. In the first nine months of 2024, we’ve seen a 34 per cent increase in the number of investors, with a staggering 69 per cent rise in international participants. Events like Expand North Star and the Future Investment Initiative Forum are only amplifying this trend, bringing global investors into direct contact with the opportunities this region has to offer. With Q4 typically being the strongest quarter for VC activity in MENA, we’re optimistic about what’s to come.

Countries like the UAE, Saudi Arabia, and Egypt are leading the charge. The UAE saw a 12 per cent rise in the number of closed deals, capturing nearly 40 per cent of all MENA transactions. It’s no surprise—this is a hub where early-stage rounds are thriving, particularly in seed and pre-Series A deals, which grew by 40 per cent year-on-year.

Saudi Arabia isn’t far behind, with deals counting up to seven per cent, driven by a 46 per cent rise in seed deals from innovative startups like Moyasar and SiFi. Even Egypt, while experiencing some headwinds at the pre-seed level, posted impressive growth in seed and Series A deals, signalling a shift toward more mature startups.

Of course, the picture isn’t universally bright. Africa and Southeast Asia have faced significant challenges this year. Africa’s startups raised US$839 million, a sharp 38 per cent YoY drop, while Southeast Asia saw the largest contraction of all EVMs, with a 51 per cent YoY decline in funding. These markets are currently recalibrating, particularly as mega deals are becoming fewer and the ecosystem shifts.

Looking ahead, we believe Q4 2024 will be critical—not just for MENA but for the global venture ecosystem. With global trends suggesting lower interest rates and an uptick in investment activity, the real question is: can we expect a rebound in Q1 of 2025?

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