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Echelon Philippines 2024: Strategies for startups entering Southeast Asia’s dynamic markets

Softlanding into Southeast Asia’s Markets via Key Startup Nodes and Hubs

At Echelon Philippines 2024, a panel titled ‘Softlanding into Southeast Asia’s Markets via Key Startup Nodes and Hubs’ examined strategies for startups aiming to enter and expand in Southeast Asia’s dynamic markets.

Moderated by Richard Ker, Chief Storyteller and Founder of RK Digital, the session featured insights from Alan Cheah, Country General Manager for Malaysia and Philippines at CARSOME; Anna Melissa Nava, Co-Founder and CEO of 1Export; and Patrick Lim, CEO of ACE.SG.

Panelists highlighted the strategic advantages of key startup nodes across Southeast Asia, each with distinct resources and ecosystems that can support new market entrants. The rapid expansion of Southeast Asia’s digital economy presents substantial growth opportunities, especially in populous markets like Indonesia and the Philippines.

Also Read: Echelon Philippines 2024: The next horizon for e-commerce entrepreneurs

Successful entry strategies, according to the speakers, involve a strong understanding of local cultures, the establishment of local partnerships, and careful consideration of regulatory requirements.

The discussion underscored the value of tapping into local networks—such as industry associations, investor communities, and professional services—to facilitate smooth market integration. By building relationships with local stakeholders and leveraging government support, startups can overcome initial barriers and establish a stronger foothold. The panelists agreed that, with careful planning and strategic alliances, Southeast Asia offers fertile ground for startups to scale and succeed.

Watch the session video above to learn more about these insights and the strategies shaping the future of entrepreneurship.

Missed Echelon Philippines this year? You can now catch the recorded sessions on demand, showcasing insights from leading startup experts, visionary entrepreneurs, and forward-thinking investors from the Philippines and Southeast Asia, all geared toward driving the next phase of growth. And stay tuned—more videos are coming soon!

Watch Echelon Philippines and ECX here.

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Dossier secures funding to accelerate AI-powered compliance solutions for emerging markets

Dossier co-founders speaking at an event organized by Meta

Dossier, a Singapore-incorporated regtech startup aiming to revolutionize financial crime investigation and due diligence, has secured undisclosed pre-seed funding from Singapore-based nVentures.

The funding will be used to expand the team and accelerate product development. The company, currently consisting of just the two co-founders, plans to grow its workforce and further develop its AI-driven toolkit.

Also Read: From civil war to innovation: nVentures’s Chalinda on the rise of Sri Lanka’s entrepreneurship

“We’re not just another compliance tool,” said Nisal Periyapperuma, CEO of Dossier. “We’re building an AI-driven ecosystem that adapts to the ever-changing landscape of financial crime.”

“Our goal is to become the go-to regtech solution for tier-3 financial institutions in emerging markets,” Yudhanjaya Wijeratne, Dossier’s co-founder and CRO, added. “These are the entities often overlooked by big players but are crucial for financial inclusion.”

Founded in 2024 by serial entrepreneurs Periyapperuma and Wijeratne, Dossier has developed an AI-powered risk operating system initially focused on anti-money laundering (AML) and customer screening.

Dossier, based in Sri Lanka, distinguishes itself from traditional compliance tools by offering an adaptive AI system that continuously learns and evolves, unlike static databases. The startup’s suite of compliance products aims to simplify operations for institutions by potentially eliminating the need for multiple vendors.

The firm has already secured two paying customers.

Also Read: Small market, big dreams: Meet the 30 Sri Lankan startups that are punching above their weight

Despite the advantages of its AI-centric approach, Dossier faces challenges in the rapidly changing AI landscape, requiring constant innovation to maintain its competitive edge.

The startup’s global competitors are LexisNexis and Chainalysis.

Regtech is a rapidly growing market which is projected to reach US$26.78 billion by 2032, driven by increasing regulatory pressure and the digital transformation of financial services.

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DANA Indonesia’s Vince Iswara: The fastest way to financial inclusion is through frictionless accessibility

Vince Iswara, CEO & Co-Founder, DANA Indonesia

When we met at a local coffee shop in Singapore, DANA Indonesia CEO & Co-Founder Vince Iswara demonstrated to e27 how he used the DANA app to pay for services. “You can now use this to transact abroad at a more reasonable rate,” he said.

This ability, combined with DANA’s profitability, is what he considered the company’s most significant milestone in recent years.

DANA Indonesia is one of the leading digital payment platforms in the country. Beyond payments, the platform has also expanded to include gold and mutual fund investments that allow users to start investing with less than US$1.

In addition to Singapore, Thailand, and Malaysia, users will soon be able to use DANA to pay for transactions when travelling to Japan, China, South Korea, and India.

In this interview, Iswara speaks to e27 about building financial inclusions and what it takes for an Indonesian fintech startup to achieve this. Having reached profitability, he shares the strategy that DANA uses to reach out to underbanked and underserved users in the archipelago.

The following is an edited excerpt of the conversation.

Can you tell me more about the role that a startup plays in promoting financial inclusion in Indonesia? What impact has it had?

The reality is that most of the Indonesian population is either underbanked or unbanked.

But one factor that is not often discussed is that they also [feel] undeserved, meaning that they feel intimidated when they have to go into a bank. This is based on an interview that we have done with some users. “How come you don’t have a bank account?” It is because they feel intimidated. They feel undeserved because banking feels too fancy for them.

Also Read: Report: New fintech talents emerge as GenAI becomes increasingly popular in Singapore

The other factor is that, even when they only have a minimum amount in their accounts, there are usually fees associated with it, which makes people reluctant.

Many startups in Indonesia have provided frictionless access, which means that everyone can open their accounts more easily and seamlessly. We offer e-KYC, facial recognition, and integrations with the civil registry. We also do not charge fees for this service.

For most people, these are the more frictionless way to access banking services. It has been absolutely one of the fastest ways to inclusion. Because once you have your first digital bank account, you can use it for transactions and daily needs. You will then have access to other financial services, from insurance to lending. With that, you will have your credit score built.

The financial services ecosystem provides that. It includes accessibility, literacy, and eligibility for people to access other financial services. This is what we call inclusion.

What changes have you seen in Indonesia since DANA’s inception years ago, especially since the pandemic?

I am not saying that we are the last, but when we first got started, we were the later one to enter the market. So, at the time, it required a lot of marketing efforts to convince someone to try DANA.

What changes now is that people have become more educated about the usefulness and values [of digital payments]; they are willing to try even without incentives. That goes with the maturity and the push from all sectors to embrace digitalisation. Not just the industries but also the regulators.

Are there any remaining challenges that you have to tackle back home?

The challenge is to build a product that fits the customer’s needs and rights. Because, here is the thing: no product can always fit everyone’s needs. For example, the products needed by users in Tier One cities can be different from those needed by users in Tier Two and Three cities.

Also Read: From fintech to IoT: Southeast Asia’s standout startups with the largest funding rounds in 2024

Digital payment might be a universally accepted platform, but even then [there are varieties] in its forms.

We need to do things to ensure that [the product] fits more of the user profile so that adoption can happen faster.

Any unique strategies that you are using to adjust between the Tier One cities and those outside of it?

We have to ensure that the product is seamless, easy to understand, and fits their needs.

In Tier Three cities, the solutions that we provided cater to much smaller tickets compared to the other cities. The difference is not in the way the transactions are handled; it is in the merchants themselves. So, if we are targeting lower-tier cities, make sure that your solutions allow users to shop at merchants with lower ticket sizes and more frequent transactions.

Since we are nearing 2025, what are the exciting plans that you have in store?

We aim to expand many of our financial services, creating even more accessibility for the unbanked and underbanked, because we believe this will drive the Indonesian economy as well.

I would say there is an untapped potential for turning informal economies into formal economies. This is one of the biggest tasks as well. It is not just about accessibility and literacy but also about security, making sure that you can trust the platform and the digital ecosystem. So, we are doing a lot of activities related to protection, cyber security, anti-scamming, and anti-phishing.

Image Credit: DANA Indonesia

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Wavemaker launches US$60M fund to bridge Series B gaps in SEA

Wavemaker’s Founding Partner Paul Santos

Wavemaker Partners, a prominent venture capital firm in Southeast Asia, has announced the first close of its inaugural Wavemaker Growth Opportunities Fund at US$30 million.

The fund, with a target size of US$60 million and a hard cap of US$100 million, will focus on supporting high-potential startups in the enterprise, deeptech, and sustainability sectors across Southeast Asia in Series B funding rounds and beyond.

Also Read: Wavemaker Impact launches Numat to transform bamboo into sustainable products

This initiative seeks to bridge the operational and funding gaps that startups often encounter as they scale. Historically, securing Series B funding has been a challenge for many promising startups in the region due to limited specialized support and capital. Wavemaker Growth will predominantly invest in promising companies already within the Wavemaker group’s portfolio.

Wavemaker Growth intends to invest in eight to 12 companies, with individual investments ranging from US$3 million to US$8 million as part of syndicate rounds of approximately US$20 million. These rounds may include other equity and debt investors.

The launch of Wavemaker Growth coincides with a strategic rebranding of the firm, uniting its various investment arms under the Wavemaker Partners brand.

The organization now comprises three distinct fund strategies:

Wavemaker Ventures: Concentrates on early-stage investments in Enterprise, Deep Tech, and Sustainability startups. Since 2012, it has backed over 200 companies across the region, managing over US$500 million in assets and generating over US$2 billion in enterprise value through successful exits. Notable portfolio companies include eFishery, Growsari, Lhoopa, and Silent Eight.

Wavemaker Impact: A climate tech venture builder in Southeast Asia launched in October 2021. It collaborates with established entrepreneurs to co-found startups aiming to reduce the global carbon budget. In December 2023, Wavemaker Impact closed its debut fund at US$60 million, surpassing its initial target by 2.5 times. Portfolio companies include Agros, WasteX, Helios, Rize, Bumibaru, RegenX, Refy, Elevate Foods, MetroElectro, Octayne, Numat, and HiFeed.

Wavemaker Growth: The newly established growth fund aims to support startups scaling from Series B onwards, offering financial backing and strategic guidance to help them overcome operational hurdles and prepare for successful exits.

Also Read: A deep-dive into Wavemaker Impact’s decarbonisation strategies in SEA

In addition, the VC firm has announced that Shiv Choudhury and Xue Koh have joined as founding partners of Wavemaker Growth.

Choudhury, co-founder of Growsari, previously led the regional consumer and consumer tech practice at The Boston Consulting Group (BCG) and held various regional leadership roles at Procter & Gamble (P&G). Koh leads the investment team at Black Kite Capital, a Singapore-based single-family office, and previously worked at Silver Lake and The Boston Consulting Group.

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Why the Fed’s 2 per cent inflation target is outdated and harmful to today’s economy

The Fed’s two per cent inflation target has long been a pillar of US monetary policy, but its origins are more arbitrary than economic theory might suggest. This benchmark was first introduced in New Zealand in the 1980s to combat their runaway inflation. The Federal Reserve only adopted it as a formal target in 2012. Yet, as we move further into an era defined by global economic shifts, adhering to this rigid figure may harm more than it helps, not only within the US but also on a global scale.

Current employment data in the US tells only part of the story. Official statistics paint a picture of job growth, but white-collar unemployment remains elevated, and an influx of undocumented workers in cash jobs distorts the real employment picture. The Fed’s reliance on these metrics to justify rate hikes is problematic when higher interest rates create corporate layoffs, particularly in sectors that rely on skilled, well-paid labour. This cascade effect has global implications.

The US dollar is the world’s reserve currency, and a high interest rate in the US puts upward pressure on the dollar, causing challenges for emerging markets, particularly in China, Southeast Asia, and Latin America. In China, a strong dollar complicates exports, as US demand for imports falls when borrowing costs are high, affecting trade balances worldwide. Many emerging economies with debt denominated in dollars find it more costly to service their obligations, forcing budget cuts that can slow growth and erode social stability.

Also Read: Path to profitability: How SEA startups are thriving in 2024’s digital economy

Meanwhile, as the Fed’s two per cent target drives policy in the US, the impact spills over into global capital flows. Higher US interest rates divert investment away from emerging markets, which rely on foreign capital to drive growth and innovation. Countries like Brazil, India, and Indonesia face tougher competition for investment as their borrowing costs rise and growth projections become less stable. As investors flock to dollar assets, emerging economies are left with currency depreciation, inflation spikes, and fiscal stress.

Finally, the real estate and housing markets in the US demonstrate how inflexible targets fall short of understanding global trends. Rate hikes have made homeownership less attainable, increasing demand for rentals, which in turn drives up rental costs. This creates ripple effects in global cities where housing affordability is already a pressing issue. When US policy prioritises a two per cent target without flexibility, it doesn’t just risk domestic instability; it creates vulnerabilities in a globally interconnected market.

If the Fed were to adopt a flexible inflation target—perhaps in the three to four per cent range—it would not only benefit US economic conditions but also relieve some pressure on emerging markets. It’s time to consider whether the two per cent target, rooted in a different era and economic landscape, can adequately serve both US interests and global stability in 2024 and beyond.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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