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

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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

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The first US Spot Bitcoin ETF has now been approved, and optimism for the industry has been at its highest levels since April 2022. We can, therefore, expect to see more liquidity enter the space, more building, and an increase in the number of emerging crypto startups.

However, as liquidity returns, token prices increase, and new projects come to fruition, so will interest from hackers. On the same day that Bitcoin reached its highest token price since April 2022, as if on a queue, Orbit Bridge got hacked for US$82 million. Therefore, as we move into 2024, it is fundamental that we learn the lessons from exploits in 2023 and highlight what we need to learn to prevent such exploits from happening again.

Equally, we must look at the technological developments we have made in the past year and plan ahead for the challenges that will arise out of these developments, namely the rise of zero-knowledge roll-ups. However, what is of paramount importance is that builders, in 2024, incorporate security by design and cease to deprioritise security.

Lessons from the HECO Bridge Hack and Curve Finance Hack

The HECO Bridge Hack of November 2023 was yet another reminder that protocols and organisations do not prioritise security. Cross-chain bridge protocols have proven lucrative targets for hackers, largely due to their experimental designs and the fact that they generally have large, centralised repositories of assets bridged by users to other blockchains.

The HECO Bridge Hack of November 2023 was likely due to an attacker gaining control of a private key, which should have been quite preventable. It highlighted a failure on HECO’s part to, above all adhere, to basic security practices such as adopting a multi-signature security wallet. It also showed that HECO Bridge had not been properly audited.

Also Read: Securing the future: Navigating the digital transformation in BFSI amid cybersecurity challenges

Reputable audit reports often explicitly identify which parts of protocols are controlled by external addresses and, therefore, vulnerable to private key theft. It is possible that the hack could have been prevented if more in-depth audits had been conducted.  

Another example, the Curve Finance Hack in August 2023, illustrated that protocols need a “panic button” in place. Nothing in DeFi (Decentralised Finance) is completely safe from hackers and it is essential that, if in the event a protocol is hacked, there needs to be an emergency function. Immutability, a central concept of blockchains, is the idea that they remain unchanged to stop people from tampering with them.

However, it can leave people powerless when trying to fix a potential exploit. This became apparent during the Curve Finance exploit. Curve’s Liquidity Providers (LPs) had a timelock embedded in the smart contracts, making it technically impossible to fix a coding vulnerability within Vyper. By forfeiting the ability to edit the state of the smart contract, the protocol was unprotected against an exploiter who was able to drain US$62 million from Curve.

Although a comprehensive audit might have detected these exploitable functions, the nature of immutability would have made it impossible to fix. Therefore, it is imperative that protocols consider having some kind of emergency stop system that can prevent these types of attacks from occurring.

Examples of this would be the Pausable Contract from OpenZeppelin’s library or the Million Ether Homepage, where the Emergency Stop pattern is implemented inside the main contract and gives the owner of the contract the ability to stop the execution of several functions at any given time.

New challenges from technological developments

Blockchain technology is always developing. These developments can come with their own inherent risks. Ethereum is by far the most popular blockchain for user activity. However, it has considerable issues with scalability. That is to say, the network’s capacity, how many transactions it can process, and how quickly it can process them is low.

Therefore, Layer 2 blockchains were created as scaling solutions for Ethereum designed to speed up transaction speeds and lower costs, and they are seeing significant development. For example, the Total Value Locked of Ethereum layer 2s now amounts to US$14.46 billion, while Ethereum’s TVL stands at US$26 billion. In 2024, Zero-Knowledge rollups are Layer 2 blockchains that are showing promising development and the potential for many projects adopting these solutions.

With this explosive growth comes the need for significant security auditing. However, zkRollups are complex and difficult to navigate, and only limited experts are able to read and write in zk-specialised programming languages.

This introduces an entirely distinct realm of security whereby technological development outpaces the ability of security researchers to study them comprehensively. Understanding zk requires a mathematical background equivalent to that of a master’s or doctoral level.

Therefore, teaching this to current security researchers would be a formidable challenge. Instead, protocols should focus on recruiting security researchers with a strong mathematical background in large numbers as soon as possible to cater to this need. 

Security by design is the way forward 

Security may not always be seen as the first priority to look at for projects in the crypto industry. Companies prioritise rapid development and deployment of their products to stay ahead in the market, which can sometimes lead to overlooking certain security measures.

Also Read: The business edge: Why prioritising employee cybersecurity is a smart investment

As Web3 technology is relatively new and continuously evolving, developers face a lack of established best practices, standards, and tools for ensuring security. Certain crypto startups operate with limited resources, including funding, time, and skilled personnel. This can make it challenging to invest adequately in robust security practices and conduct thorough security audits.

All these contribute to products being built that do not have a robust foundation layer, which can be detrimental in the long run. However, building protocols with security woven into the fabric through collaborative code reviews and rigorous audits will significantly curb vulnerabilities before malicious actors exploit them.

In conclusion

In 2024, we are still seeing hacks occur despite being relatively easy to prevent, namely, private key hacks. With optimism high and liquidity returning, growth must be met with robust security or we will see past mistakes continue to repeat themselves which continues to hinder the industry’s progress and reputation.

The lessons learned from hacks like HECO Bridge and Curve Finance show that prioritising speed and neglecting basic security practices leave projects vulnerable. This is especially true as innovative technologies like zero-knowledge rollups emerge, demanding expertise that outpaces current security research capabilities.

Now is the time for protocols to be more responsible and ensure that they have taken all the necessary security measures. Audits should not be worn as badges of approval; they are a means of assessing where vulnerabilities lie, and it is essential that any weak spots are reinforced immediately, as one never knows when one could be the next victim of a hack.

Equally, startups built with security woven into their core, employing rigorous audits and collaborative code reviews, will stand strong against malicious actors. However, this ultimately requires a shift in mindset, where security ceases to be an afterthought and becomes a priority of every project.

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Financial institutions function through a complex web of operations. Technology has long been used to streamline these better and alleviate the burden on human resources. This evolution can be traced from the first computers in bank branches to the adoption of cutting-edge cloud-based software solutions. 

While initially, financial institutions turned to SaaS solutions primarily for assistance with non-essential workloads. We are now also seeing an increased uptake of SaaS solutions for core functions. From core banking systems to customer relationship management, today, they have access to a range of Software-as-a-Service solutions because several benefits can be derived from its adoption:

Scalability

SaaS solutions are highly scalable, which allows financial institutions and fintechs to adjust capacities according to demand. For example, using SaaS solutions designed to conduct underwriting for lending can be scaled up around the festive season when there is a higher demand for financing among users. Users of such SaaS products can upgrade or downgrade their subscriptions, unlock new features, and manage their operations more flexibly.

Accessibility

Since SaaS solutions are cloud-based, users can access them anywhere as long as they have an internet connection. Even professionals using this software can access data anywhere, easing logistical issues. Data accessible through SaaS platforms tends to be real-time, which improves operational efficiency and promotes collaboration.

Also Read: How can you build a living, thriving community around your SaaS product?

Analytics and insights

SaaS solutions analyse data in real-time and, combined with machine learning capabilities, identify patterns and develop insights based on this data. Machine learning has enabled faster trading decisions through algorithmic trading, fraud detection and prevention by flagging anomalies in large data sets, robo advisory to identify investment opportunities with the highest returns, and loan underwriting by scanning consumer data to make decisions.

The evolving role of SaaS and its relevance in financial institutions

Undeniably, SaaS in financial services has gone from being a good-to-have to a must-have. While capabilities such as scalability and accessibility have made it essential for financial institutions, the evolving landscape of financial services now calls for increased value addition from SaaS solutions.

Artificial Intelligence

Artificial intelligence made long strides in 2023. This trend will cause a seismic shift in how financial institutions operate. Where SaaS tools once assisted financial institutions in workflows, the advancements in AI have opened up automation possibilities for administrative workflows, data collection and processing, generating insights, and reporting them. 

Moreover, using large language models (LLMs), as a natural progression from machine learning, is becoming more commonplace now. These models are capable of understanding and generating even human language text.

Its applications include navigation of consumers’ financial decisions while limiting the need for a human in the loop – which could potentially improve user interfaces of customer-facing personal finance management applications by adding the critically missing human context.

Cost-effectiveness

Generative AI will streamline labour-intensive functions such as pulling data from various sources. Financial information trained on LLMs could help customer service agents generate answers to practically any query a user might have about their finances or create loan profiles for potential credit seekers by analysing data from several sources. This would eliminate the costly resources required in procuring and processing data.

Also Read: 7 lessons from building a 7-figure SaaS business with just 1 engineer

SaaS will usher in innovation and agility in financial services

Banking and investment services worldwide were expected to spend US$651.1 billion on IT services in 2023, and spending on software was expected to increase by 13.5 per cent. This is no surprise, as evidence of its efficiency can be seen across analytics, accessibility, and business imperatives like cost-effectiveness and scalability. And SaaS solutions are only being constantly upgraded to enhance productivity and efficiency in delivering financial services. 

The use of generative AI will further boost these interests and many others. It can enable superior forecasting thanks to its capability to write queries and formulas for Excel and SQL. It could also be used to improve reporting exercises by automatically creating graphs, charts, and text.

SaaS is evolving to ease compliance obligations through more efficient screening and better prediction of questionable transactions that could stem fraud, phishing and money laundering at a larger scale than ever seemed possible. 

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The Parentinc, the Singapore-based content, community, and commerce ecosystem for parents in Southeast Asia, recently snapped up Motherswork, a luxury retailer for mum, baby, and kids’ products in Singapore and China, for an undisclosed sum.

In this interview, The Parentinc’s Group CEO Roshni Mahtani delves into the strategic vision behind the acquisition and its implications for Southeast Asia’s parenting retail landscape.

How does the acquisition of Motherswork align with The Parentinc’s long-term strategic vision and goals for the parenting retail industry in Southeast Asia?

The Parentinc’s overarching vision is not only to dominate the online market but also to establish a significant offline presence. Motherswork’s existing brick-and-mortar stores complement our online efforts, providing a holistic approach to meeting the diverse needs of our target audience.

By integrating its established physical retail footprint with our digital platform, we aim to create a seamless omnichannel experience for our customers. This strategic move positions us to capture a broader market share, enhance customer engagement, and solidify our position as a leader in the parenting retail sector across SEA.

Also Read: The Parentinc acquires luxury retailer Motherswork to expand offline presence in SEA

Ultimately, we don’t identify as a typical retail company or an FMCG brand; we position ourselves as a parent-tech company with our community at its core. This fundamental aspect has been well-established for several years. Our portfolio includes key brands such as Mama’s Choice and now Little Ray, which we retail through Motherswork. Additionally, we exclusively distribute over 20 other brands.

We aim to ensure seamless synergy between these elements and expand into new territories and markets. Little Ray, currently exclusive to Singapore, will soon be introduced to all other SEA markets. Mama’s Choice is available in five out of six markets within our operational scope.

Furthermore, we are set to make a strategic entry into physical retail in Vietnam, with plans to replicate this model in several other countries. The upcoming year promises to be dynamic for us, marked by expansion and strategic initiatives.

Can you elaborate on the Southeast Asian markets where The Parentinc plans to expand Motherswork stores and distribute Mama’s Choice exclusively? What factors influenced the selection of these markets?

While we can currently disclose our entry into physical retail in Vietnam, our expansion strategy extends beyond this market. A meticulous analysis of various factors drives the decision to enter specific markets in SEA: evaluating the demographic landscape, consumer behaviour, economic indicators, and the competitive environment in each potential market.

Vietnam, a dynamic and rapidly growing economy that targets 6-6.5 per cent GDP growth in 2024, presents a strategic opportunity for The Parentinc to establish a solid physical retail presence. The decision to distribute Mama’s Choice exclusively through Motherswork in these markets is rooted in the brand synergy and the unique value proposition it brings to our customers.

You mentioned that 70 per cent of SEA retail is still offline. How does the acquisition of Motherswork contribute to The Parentinc’s efforts to establish a significant offline presence, and what challenges do you anticipate in this transition?

Motherswork’s existing brick-and-mortar stores provide a ready-made infrastructure, allowing us to integrate our online and offline operations seamlessly. This move allows us to cater to the sizeable portion of the market that prefers in-person shopping experiences.

However, we anticipate several challenges in this transition. One key challenge is adapting to SEA’s diverse retail landscapes across different countries. Each market has unique consumer behaviours, regulatory environments, and logistical considerations. Overcoming these challenges will require careful localisation strategies and a nuanced understanding of each market’s nuances.

The Parentinc has successfully implemented a content-to-community-to-commerce business model online. How do you envision refining and adapting this model by adding offline stores through the Motherswork acquisition?

In today’s digital age, customers seek more than just online transactions; they crave immersive encounters with the brands they support. The addition of Motherswork’s physical stores aligns with this consumer demand—and we aim to provide an avenue for our community to engage with our products in a tactile and experiential manner.

Also Read: I don’t think true-blue text-based digital media companies exist anymore: theAsianparent Founder Roshni Mahtani

This offline expansion not only satisfies the need for a more profound brand experience but also enables our community to receive personalised assistance and answers to their queries in real-time, fostering a deeper connection between us.

Could you share more about how The Parentinc plans to integrate media solutions into Motherswork? What benefits do you foresee for both parties and the parenting community?

We’re nurturing a symbiotic relationship between our media and retail platforms. By leveraging the reach and influence of our media platforms, theAsianaprent and Webtretho, we aim to provide robust promotional support for Motherswork’s partner brands.

Simultaneously, we plan to capitalise on these media platforms to drive customer engagement and traffic to Motherswork. Through targeted content, campaigns, and promotions, we envision a seamless flow of interested customers from our media channels to the Motherswork retail ecosystem. This reciprocal approach not only maximises brand exposure for Motherswork but also enriches the overall experience for our parenting community by offering them curated content and exclusive promotions.

Integrating media solutions presents a win-win scenario, providing valuable promotional avenues for Motherswork’s partner brands while enriching our parenting community’s content and engagement opportunities across theAsianaprent and Webtretho platforms.

What challenges and opportunities do you anticipate in integrating the online success of The Parentinc with the offline expertise of Motherswork, and how do you plan to navigate them?

One challenge lies in harmonising the digital and physical aspects seamlessly. The transition from online to offline retail involves adapting operational processes, inventory management, and customer experiences. Ensuring a cohesive and unified brand presence across both channels is crucial to maintaining consistency and meeting customer expectations.

On the flip side, this integration brings forth numerous opportunities. Combining online and offline channels allows for a holistic approach to customer engagement. The offline stores provide a tactile and experiential dimension, enhancing the brand experience. It also opens avenues for targeted marketing strategies, utilising data from both channels to create personalised campaigns and promotions.

Navigating these challenges and capitalising on opportunities involves a strategic and adaptive approach. A robust technology infrastructure will be key in seamlessly connecting online and offline operations. Training and empowering staff to provide consistent and quality service across channels will contribute to a positive customer experience. Additionally, leveraging data analytics to gain insights into customer behaviour and preferences across both realms will inform decision-making and enhance overall performance.

Also Read: How theAsianparent aims to help reduce stillbirth rates in Southeast Asia

Ultimately, the success of this integration hinges on maintaining a customer-centric focus, ensuring that the benefits of the online and offline synergy translate into a seamless, enriched, and satisfying experience for our diverse customer base.

The recent IPO valuations for Mamaearth and FirstCry have been substantial. How does the acquisition of Motherswork position The Parentinc in terms of future IPO plans, and what factors contribute to the valuation expectations for your organisation? When do you plan to hit the bourses? Will you merge with an SPAC or go for a direct listing?

We do not rule out an IPO within the next three years. But at this point, we are bringing the retail tech footprint into other markets in SEA, so we’ll be expanding the Motherswork store. We’ll add the data and analysis from our community into how mums can experience retail.

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.

The post Why is The Parentinc aggressively venturing into offline spaces? appeared first on e27.

Southeast Asian startups secured US$439 million in venture funding across 31 rounds in January 2024, a 43.65 per cent drop from December 2023 but a 107.1 per cent jump over January last year, according to a report by startup research platform Tracxn.

Of the 31 rounds, 17 were seed-stage deals and 13 early-stage ones.

Silicon Box topped the chart with a US$200 million investment, followed by Motorist (US$60 million), Sygnum (US$40 million), Be Group (US$31.2 million), and FlyORO (US$16 million).

See the picture below for more details:

 

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.

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Hong Kong-based MediConCen, a startup automating insurance claims using AI and blockchain, has raised US$6.85 million in its latest Series A round.

HSBC Asset Management led this round, with support from existing investors G&M Capital and ParticleX and new investor Wings Capital Ventures.

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

This brings MediConCen’s total raise to US$12.7 million.

The capital will be used to expand into the Middle East and Southeast Asia.

“Insurance does good for the society, but often it is not felt by the customers. There is much frustration dealing with the medical claim process for both customers and insurers alike. We are changing the paper-based and human-based claim process to digital and AI-assisted journey, utilising the latest AI and blockchain technology,” said William Yeung, CEO and co-founder of MediConCen.

MediConCen is an insurtech company that utilises Hyperledger blockchain technology to provide clients with an automatic experience in insurance claims. MediConCen has secured a blockchain patent in the US and Hong Kong. The company serves over 16 insurers and over 1 million insured individuals, and its cashless claim platform has over 1,200 medical providers participating.

Also Read: Welcome the new game changer in town: Insurtech

MediConCen is a Cyberport community startup that joined its incubation programme in 2018. With the support of Cyberport Macro Fund, a fund that provides seed to Series A stage and beyond funding to Cyberport digital entrepreneurs, MediConCen has secured extra co-investments to facilitate its growth in 2020.

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.

The post MediConCen bags US$6.85M to take its AI, blockchain-powered insurtech platform to SEA appeared first on e27.

Dear reader,

The recent turmoil surrounding Byju’s, a prominent player in India’s edutech arena, has escalated with major backers advocating for a leadership overhaul and board restructuring.

This demand, echoing concerns over governance and financial mismanagement, underscores a deepening rift within the company’s stakeholders.

Think & Learn’s assertion of shareholders’ limited authority to influence management decisions contrasts sharply with investors’ calls for an extraordinary general meeting to address pressing issues.

Amidst this internal strife, Byju’s faces additional challenges on the global front, with its US division embroiled in bankruptcy proceedings following substantial debt defaults. Allegations of financial impropriety, including claims of fund misallocation, further tarnish the company’s reputation.

The involvement of notable investors such as General Atlantic and the Chan Zuckerberg Initiative underscores the gravity of the situation, casting a shadow over Byju’s once formidable position in the edtech landscape.

As the saga unfolds, restoring trust and stability appears paramount for the company’s future viability amidst a landscape of heightened scrutiny and financial uncertainty.

Sainul,
Editor.

NEWS & ARTICLES

Byju’s US division files for bankruptcy protection
The move comes after the unit, Byju’s Alpha, defaulted on US$1.2B in debt. According to a document filed by the US entity’s CEO Timothy Pohl, Byju’s Alpha lacked the funds to pursue its conflict with its parent firm over the debt.

Byju’s investors call to oust founder
This development comes days after its parent Think & Learn said it was looking to raise US$200M via a rights issue; This would mean a plunge of nearly 99% from the company’s peak valuation of US$22B.

Mobile crypto payment app Oobit raises US$25M in Series A
Investors include Solana Labs’s Anatoly Yakovenko and stablecoin issuer Tether, 468 Capital, and CMCC Global’s Titan Fund; The Singaporean startup will use the funds to expand across APAC, Latin America, and the UAE.

Validus banks new funding to boost SME financing in Vietnam
The investor is Japanese firm Reazon Holdings; Singapore-based fintech firm Validus uses data analytics, AI, and supply-chain partnerships to provide financing for SMEs in the region.

Shopee lawsuit against ex-employee dismissed by Singapore judge
Shopee had sued Lim Teck Yong – who last held the executive director of operations position at Shopee Brazil – for joining ByteDance weeks after leaving his Shopee post in mid-2023.

Genesys acquires Singapore SaaS startup Radarr to flex more AI muscles
Radarr helps companies make decisions based on relevant real-time online conversations – on social media and other digital platforms – through data visualisations, dashboards, and insights reporting.

Temasek exits Policybazaar investment for US$290M
Temasek held a 5.42% stake in the Indian insurtech marketplace; Policybazaar had recently posted its first quarterly profit of US$4.4M as demand for insurance bolstered revenue during the December 2023 quarter.

Jio Financial says not in talks to acquire Paytm’s wallet business
Paytm and Jio Financial Services have reportedly been engaging for months for a deal, something that escalated after the Indian central bank widened its crackdown on Paytm’s Payments Bank.

Pyxis bags US$3.4M to help make the maritime industry greener
Investors include Motion Ventures, Shift4Good, Seeds Capital, and MarImpact; Pyxis will use the new funds to accelerate its electrification tech development and expand the production of its electric harbour crafts.

Web3 gaming IP company Pixelmon secures US$8M seed funding
Investors include Animoca Brands, Delphi Ventures, Amber Group and Bing Ventures; Pixelmon delivers ownership of IP and in-game assets through its fractionalised IP ecosystem Mon Protocol.

Indian EV ride-hailing firm Snap-E Cabs secures US$2.5M
Inflection Point Ventures is the lead investor; Snap-E currently operates with 600 electric cars in India’s eastern city of Kolkata and looks to add 300 to 400 more by the end of this financial year

Snapchat’s parent lays off 10% of workforce
The layoffs would impact roughly 500-plus employees; The layoffs were announced in an SEC filing, where Snap explained the move was necessary to support its further growth; In November 2023, it conducted a saw small-scale layoff.

Chinese EV sales drop in Jan amid decreased demand
The decline was especially marked for BYD, which accounted for nearly a third of the country’s green energy vehicle sales last year; BYD, the biggest Chinese EV maker, witnessed a 41% sales decline compared to December.

CONTRIBUTORY POSTS

Nagoya University transforming from Singapore beyond Six Nobel Laureates
How Nagoya University empowers students, faculties, researchers, and startups as they explore growth and innovation in Singapore beyond its global accomplishments such as Six Noble Laureates.

AI transforming LinkedIn content: Our custom GPT journey
We plan to refine our custom GPT further, exploring broader applications in storytelling and thematic content.

Tech firms in Southeast Asia poised to ‘leap’ forward with gender equality
Within the tech industry, Southeast Asia is seen as a force leading the way for change by steadily narrowing the gender gap.

Beyond the union: Understanding the complexities and impacts of M&As
More often than not, M&A between organisations involves more stakeholders and impacts more people than a marriage between two families.

AI and ethics in digital marketing: Building trust in the tech era
AI presents a world of opportunities in digital marketing, but it also demands a new level of ethical responsibility.

Leveraging AI and ML in supply chain management for smarter decision making
By leveraging the convergence of AI and blockchain, future supply chains will become intelligent, self-learning networks that maximise value.

Breaking the myth: The reality of social entrepreneurs and their business approach
Pragmatically and operationally, social entrepreneurs are entrepreneurs as their endeavours are rooted in entrepreneurial principles.

Using AI to save your time by 50 per cent in your business operations
By integrating AI into our processes, we’ve not only increased our productivity but also improved our job satisfaction.

FROM THE ARCHIVES

Web3 needs novel prevention tools for novel attack vectors: AI saves the day
AI is Web3’s security lifeline, enabling tools to protect millions and billions of dollars worth of user funds.

Embracing AI’s promise: Navigating the future of marketing
In an era where AI is reshaping the marketing industry, we explore how marketers, particularly in Singapore, can unlock AI’s potential.

Embracing global entrepreneurship: Redefining startup success beyond Silicon Valley
Throughout our quest to support founders, we have found that a collaborative and strategic approach is always required when building startup communities.

Financial models for Web3 startups: Guiding principles for success
By comprehending the dynamics of the Web3 landscape, startups can leverage the power of decentralised technologies in their financial models.

Oh my cash: Navigating cash flow management in today’s market
Learn how to effectively manage cash flow in today’s market by implementing strategies that prioritise financial stability and flexibility.

How to unlock new horizons with generative AI
In the current search engine paradigm, information synthesis is a manual process. Generative AI models like ChatGPT bridges this gap, internalising and summarising vast amounts of data, offering succinct and accurate responses.

FEATURES & INTERVIEWS

M&A process in SEA is stuck in the dark age: say match.asia co-founders
Singapore-based match.asia disrupts M&A in SEA with a free marketplace, data-driven matching, and global buyer network collaboration.

What is next for Indonesian e-commerce scene after GoTo, TikTok Indonesia merger?
This deal is a major blow for Shopee, and it would be interesting to see what strategy will come up next.

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.

The post Ecosystem Roundup: Byju’s in deep mess | Temasek exits Policybazaar investment | Oobit secures US$25M appeared first on e27.

Singapore-based crypto payment app Oobit has concluded its US$25 million Series A investment round.

The backers in this round include the investment arm of USDT parent company Tether, CMCC Global’s Titan Fund, 468 Capital, and Solana co-founder Anatoly Yakovenko.

The startup plans to use the funds to expand into Latin America, the UAE, the Asia-Pacific, Canada, and Australia beyond its primary markets in the European Union and the UK.

Also Read: ‘Young, tech-savvy population contributes to cryptocurrency growth in Vietnam’

Oobit provides a gateway to spending cryptocurrencies in traditional commerce settings. Consumers pay with crypto, but merchants receive fiat money, like a typical credit card transaction.

Using Oobit, crypto holders can tap and pay at over 100 million retailers across the globe, anywhere Visa and Mastercard are accepted, similar to using Apple Pay.

Tether CEO Paolo Ardoino said: “Oobit, in our perspective, stands as a catalyst, breaking down barriers and facilitating frictionless transactions for crypto holders worldwide.״

Also Read: Tether under scrutiny: A deep dive into cryptocurrency crime allegations

In the near future, Oobit intends to open up the same capability to any external third-party wallets, creating a bridge between Web3 and spending. This will transition Oobit into a non-custodial crypto payments app, allowing external wallets to tap & pay with crypto anytime, anywhere, just by connecting via the Oobit app.

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.

The post Tether, Solana co-founder back Oobit’s US$25M Series A round appeared first on e27.

Angel investors and syndicates are just some of the alternatives that tech startups can tap into for their fundraising. In its operations, angel investors and syndicates may face unique challenges, including dealing with hefty paperwork when setting up their syndicate or Special Purpose Vehicles (SPVs). This is the area where Auptimate aims to make a difference.

Auptimate is an online platform that aims to help angel syndicates, founders, and fund managers set up and operate SPVs and Syndicates. It has helped more than 70 syndicates and SPVs raise over US$40 million from at least 400 investors for deals across Southeast Asia, the Middle East, and Europe.

As a one-stop solution, Auptimate solutions do not require users to use different kinds of services for different purposes. It also offers a fully digital experience without needing papers or face-to-face meetings.

Since launching in 2022, Auptimate has been through the incubation programme with SMU IIE’s BIG programme and Accelerating Asia in 2023.

Also Read: Angel investor Mike Flache shares his tips to begin investing in startups

In an email to e27, Auptimate co-founder Davin Dedhia explains that the company’s users consist of angel investors, syndicate leads, startup founders who are fundraising, and fund managers.

It has three different products catering to all of these users: Angel Syndicate, Founder SPV and Venture SPV for syndicates, startup founders and fund managers, respectively.

Auptimate charges a one-time set-up fee of US$500 for each of these three products. It also charged between US$6,000 and US$11,500 for the Angel Syndicate- this fee is to cover 10 years of coverage.

For the Founder SPV and Venture SPV, the company charges between US$750 to US$4,000 as annual recurring fees.

“We recently closed our 75th client and have onboarded over 400 investors on our platform. We are seeing a lot of network effect and are now seeing a lot of referral business coming in, thus enabling us to reduce our marketing spends.”

In reaching out to its potential users, Auptimate uses a multi-channel approach and reaches out to prospects via digital marketing channels as well as events.

Also Read: Your investors are your number one fan: Tina Di Cicco of Manila Angel Investors Network

The company attempts to make its process as seamless as possible with the use of technology.

“We are investing heavily in technology and automation, which will require us to have fewer interactions with clients. This helps us not require a very large team to handle many clients,” Dedhia explains.

What’s in the future

There are many exciting things coming up for Auptimate in 2024. With the upcoming launch of more SPV products and fund administration, Auptimate aims to exceed US$1 million in revenue this year.

But for the company, that is not the only thing on their agenda.

“We are only a one-year-old startup, and our KYC and customer onboarding is already fully automated. We expect to focus on the three products we have for the large part of this year, and we see ourselves expanding into more regulated structures with Fund Administration,” Dedhia says.

“We are also going to expand our team with key hires across Sales, Operations and Technology functions to bolster our efforts to reach the milestone.”

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Image Credit: Auptimate

The post Auptimate facilitates US$40M raised across 70 syndicates, SPVs with its one-stop digital solutions appeared first on e27.