The US banking crisis is driving capital flows into Asian assets; analysts say investors are betting confidently on China and the region’s emerging economies. 

2023 is seen as the “winter” of capital raising for tech startups due to shifting preferences among international and Vietnamese venture capital funds (VC); however, the recent explosion in the popularity of artificial intelligence (AI) applications like Sora and Chat GPT has caused many experts and investors to reassess the technology’s development potential. 

Attractive Asia market

Furthermore, financial market indices throughout Asia, except Japan, continued to rise following Silicon Valley Bank’s (SVB) collapse on March 10. In the same time frame, this US bank index saw an almost 10 per cent decline.

Managing director and head of Citibank’s economic and market analysis for the Asia-Pacific region, Ms. Johanna Chua, stated: “We think Asia is still relatively well insulated from market shocks.” The USD will become less expensive as a result of the US fall, supporting capital flows in Asia more.”

The Asia-Pacific region also benefits from generally more flexible monetary policy, according to Bloomberg News. State banks in Australia, South Korea, Indonesia, and India have stopped the capital tightening cycle, in contrast to their counterparts in the West.

Investors take less risks

The general secretary of the Vietnam Bond Market Association, Mr. Do Ngoc Quynh, made it quite evident how the capital markets of established nations like the US and Canada as a whole differ from those of developing nations like Vietnam. 

Also Read: Crafting a winning healthtech pitch deck: The insider’s guide to attracting investors in 2024

Investors in sophisticated nations or countries are ready to invest heavily in research and development even when they have no idea how the final product will look. Funding research and development is a very costly and risky endeavour. It is not guaranteed that research products will be more optimised than existing ones, even with world-class experts.

On the contrary, one area where the Vietnamese financial sector is deficient is in venture capital funds and funding sources for early-stage companies. 

According to Mr. Quynh, the model is either seed (also known as a seed round) or pre-seed, which refers to early capital when the project has not yet been revealed and is used when investment funds are prepared to “put in” between thirty and fifty thousand USD. Few successful initiatives are all that are needed for hundreds of early startup ideas—which are deemed unprofitable—to break even or even turn a profit after a few years. Creating this kind of investor will be challenging in the current climate.

The trend of combining Blockchain and AI

The Decentralised Physical Infrastructure Network, or DePIN, is one area where blockchain and artificial intelligence interact. Big data (big data) is the source of knowledge that AI must acquire, yet this training is highly costly. 

Businesspeople will develop a market where people with unused video cards plug into the system for others who require that resource for training, even though industry giants like iCloud, Amazon, and others do not yet offer services. make AI. This is known as DePIN, and it’s going to catch on soon.

The combination of blockchain and AI will be very special. Some startups that combine blockchain and AI platforms have raised US$30 million, even $120 million, which is a very large sum at the moment, and there aren’t many funds that can disburse such a large amount of money.  

Also Read: Mastering the art of fundraising: Winning strategies to engage investors

Technology scientist Mr. Nguyen Trung Thanh, Chairman of the Web3 Committee, Vietnam Blockchain Association, discusses the initial investment of venture capital funds for projects on deep learning or neural networks, the early forerunners of artificial intelligence, in 2013.

At the time, these projects were not trending at all, and researchers were unable to respond to the trend. Similar to the questions that investment funds currently ask, what is the method of conducting business, or who are the clients? 

They continue to spend, though, and the outcome is the cutting-edge AI technology of today. As a result, there is always a high chance of new technology ventures succeeding and investors ready to contribute money.

It is crucial that the finished product genuinely adds long-term value to society; if we follow trends blindly, these projects will eventually fail financially. An example of this would be projects that exist and develop, such as AI technology, and ultimately fail.  

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Women have a knack for identifying the unaddressed aspects of the female experience that remain untouched by the patriarchal structures surrounding them—think of Grab, ShopBack, and Bumble, to name a few.

Meri Rosich, Board Committee member at SG Women In Tech, said:

“Women’s leadership in tech is crucial for driving innovation, fostering diverse perspectives, and creating products and services that cater to the needs of a broader audience. As technology continues to permeate every aspect of our lives, it is imperative that the individuals shaping these technologies reflect the diversity of the societies they serve.”

Yet, despite significant progress by women in technology and entrepreneurship, a concerning trend persists: a record number of talented women are leaving corporate leadership positions. In what can be termed a “Great Breakup,” where women leaders are demanding more from their work and are increasingly inclined to switch jobs to fulfil their needs, this exodus jeopardises diversity and innovation within organisations.

Identifying one of the most significant barriers to female leadership, Siew Ting Foo, who has been named one of Campaign Asia’s top 50 most influential marketers in Asia five times from 2018 to 2023, offers an insider perspective, stating,

“Often, females experience imposter syndrome, holding themselves back and engaging in self-doubt, believing ‘we are not good enough.’”

Building a sisterhood for success

Hosted by SmartOSC, in partnership with SG Women in Tech and Singapore Computer Society, the SheEO workshop addressed the specific challenges women face, including limited access to funding, underrepresentation in leadership roles, and myths that prevent women from thriving in the workplace.

Also Read: Invest in women, accelerate progress: Why gender equality matters now more than ever

When it comes to empowering women’s leadership, Mathilde Swierczynska, Co-Founder and Director at Inspiring Girls SG, in her talk at the SHEEO workshop, believes in promoting a sisterhood culture to uplift women in the workplace, often mentioning the famous quote:

“There’s a special place in hell for women who don’t help other women.”

Harvard Business Review research suggests that while successful men gain advantages from their connections to various influential individuals, women need more than just that to reach the highest echelons of executive positions. In addition to broad networks, women require a tight-knit inner circle of female contacts.

This is because women often encounter cultural and political barriers on their path to executive roles. Hence, they not only benefit from being central in the network but also from having a close circle of female contacts. These networks provide confidential insights into organisational attitudes toward female leaders, empowering women in their job searches, interviews, and negotiations.

Echoing this sentiment, Caitlin Nguyen, Head of Digital and Customer Engagement at Abbott, emphasises the importance of community and support networks in the She Empowers Others campaign at SmartOSC, asserting,

“The role of community and building support networks is not to be underestimated. Not only does it further empower women, but it also strengthens learning agility and fosters continuous improvement both professionally and personally.”

“We recognise access to networks as a significant barrier hindering women’s advancement,”

said Hanh Le, Deputy CEO of SmartOSC. “SheEO workshop aims to empower women to challenge stereotypes and pave the way for a more inclusive and equitable future.”

The SheEO workshop forms an integral part of SmartOSC’s Forward content ecosystem, comprising podcasts, events, and magazines, representing a crucial stride towards nurturing a more inclusive tech industry.

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Dear reader,

OpenAI chief Sam Altman-led Worldcoin cryptocurrency project has faced significant backlash in Hong Kong for violating privacy laws.

The city’s Privacy Commissioner for Personal Data (PCPD) criticised Worldcoin for its “unnecessary and excessive” collection of biometric data, including iris and face scans, labelling the practice as invasive and unjustified. This data collection aims to provide users with a unique digital identity, known as a “World ID,” but the approach has raised serious privacy concerns globally.

The PCPD’s investigation revealed that over 8,000 individuals in Hong Kong had their biometric data collected, a process lacking sufficient transparency and informed consent. The privacy watchdog’s enforcement notice demands an immediate halt to these activities, emphasising the severe potential consequences of data breaches.

Worldcoin’s operations in other countries, including Spain, Portugal, and Kenya, have similarly been suspended over privacy issues.

Despite Worldcoin’s claims of encrypted and secure data handling, the PCPD condemned the project’s prolonged data retention plans and highlighted the legal repercussions of non-compliance with their enforcement notice, which could include hefty fines and imprisonment.

This controversy underscores the critical importance of stringent data protection standards in the rapidly evolving digital landscape.

Sainul,
Editor.

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NEWS & ANALYSIS

Sam Altman’s crypto project halted in HK over privacy concerns
The Worldcoin cryptocurrency project, set up by the OpenAI chief, breached Hong Kong’s privacy laws by demanding “unnecessary and excessive” scans of users’ eyes and faces, the city’s privacy watchdog said Wednesday.

KKR, TPG said to weigh options for PropertyGuru including buyout
KKR and TPG own about 26.5% and 29.6% of PropertyGuru, respectively; Singapore-based PropertyGuru went public in New York in 2022 after a merger with the SPAC Bridgetown 2 Holdings Ltd.

Oyo, once valued at US$10B, shelves IPO plans for second time
Oyo had initially filed paperwork with SEBI in 2021 for a public listing but withdrew it and refiled it in 2023; India’s market regulator has yet to approve either of Oyo’s applications, which raises questions about its readiness to face public scrutiny.

Snowflake talks to acquire Reka AI fizzles with no deal
The details are not available; The deal would have helped boost Snowflake’s business, as it sees generative AI as a key growth driver for its cloud-based data analytics offerings.

Honest Bank extends Series B to US$21.5M with Rakuten, Jetha backing
In 2023, the financial services startup received ~US$19M from Japanese firm Orico in 2023 for the same round; Honest Bank’s core product is the Honest Card, a credit card available in both physical and digital form.

PropertyGuru Q1 loss narrows to US$4.6M
In comparison, the proptech firm recorded US$7.5M net loss in Q1 last year; Revenue for the quarter rose 11.9% to US$27M on the back of a strong growth in its Singapore marketplace segment.

Mighty Jaxx collects US$11M more in series A+ round to fuel US, Europe growth
Sunova Capital and East Ventures joined the new round; Mighty Jaxx creates limited-edition collectibles in partnership with well-known companies; It plans to scale up its business in the US and Europe this year.

Alibaba considers convertible bond sale, following JD.com
Alibaba aims to gain capital by buying back shares and boosting its growth strategies. However, the firm is hoping to get roughly US$5 billion – a lot more than the US$1.75 billion that rival JD.com recently announced.

Singapore-based ThinKuvate launches US$12M India-focused fund
ThinKuvate India Fund will look to invest in 12 to 15 startups annually with an initial amount of up to US$360K; ThinKuvate primarily invests in healthtech, fintech, IoT, AI-ML, consumer-tech, and martech.

Singapore’s warehousing automation firm XSQUARE lands US$7.8M in Series A financing
The investors are Wavemaker Partners, SEEDS Capital, and Goldbell; XSQUARE’s autonomous forklifts simplify warehouse operations without requiring extensive reconfiguration, thus saving time and costs.

Cocoon Capital invests in Bangladesh’s B2B job-tech platform Shomvob’s US$1M round
The startup also received a grant from the Bill & Melinda Gates Foundation; Since launch, Shomvob claims to have registered 600,000+ job seekers and 1,300+ companies, facilitating 12,000+ job placements.

Luxury resale marketplace PopChill bags US$3.1M for Singapore expansion
The investors include Top Taiwan Venture Capital, 500 Global, and Acorn Pacific; PopChill’s marketplace features over 100,000 items in partnership with three of the top ten luxury resellers in Japan and suppliers from Taiwan and Hong Kong.

Ray Dalio purchases two shophouses in Singapore for US$18.9M
This makes Dalio yet another billionaire to purchase shophouses in the city-state; Zhang Ying, spouse of Alibaba Group co-founder Jack Ma, spent US$33.3M for three connected shophouses on Duxton Road in February.

FEATURES & INTERVIEWS

HKSTP’s Derek Chim on the four skills required for startups to thrive in Hong Kong
Hong Kong has good researchers and scientists but in the innovation and tech sector, there is a particular need for skilled product managers, says the HKSTP’s Head of Incubation.

Right Choice Capital CEO on surpassing revenue milestones, future innovations
The fintech firm recently achieved 114% y-o-y revenue growth and crossed the US$7.4M revenue threshold while maintaining EBITDA; Since its inception eight years ago, the firm has raised over US$22M from private investors.

Nandina REM gives a second life to materials from retired aircrafts
The Singaporean firm builds an innovative approach to reclaiming precious materials from retired or end-of-life aircraft and reprocessing them to aviation specifications for use in new products, such as EV battery casings.

The Indonesian startup ecosystem is facing a Great Reset, but Nicko Widjaja remains a believer
As the market went halfway through 2024, BRI Ventures CEO Nicko Widjaja shared notable trends that he observed in Indonesia.

‘Deeptech startups require more support, but have sustained competitive advantages’
SDTA Founding Partner Luuk Eliens says the venture builder engages with corporates, investors, research institutions, and government agencies to pool resources and expertise for its ventures.

How Plixstar eases digital transformation for plastic manufacturers in Malaysia
Plixstar creates an online platform for plastic manufacturers, helping them undergo digital transformation and grow their business.

CONTRIBUTORY POSTS

From hustle to zen: Learning to pace myself in the startup world
Startup life burned me out, but breaks, box breathing, and writing became my reset button; LFG co-founder Darryl Han is sharing his story to help you avoid the same fate.

A new taste of capital investors for technology startups in Asia
The Asia-Pacific region benefits from generally more flexible monetary policy, according to Bloomberg News; State banks in South Korea, Indonesia, and India have stopped the capital tightening cycle, in contrast to their counterparts in the West.

AI infrastructure: The unsung hero of technological innovation
At a time when AI’s applications and ethical concerns are most discussed, it’s crucial to recognise that the underlying infra serves as a fundamental necessity and a strategic asset for technological advancements, presenting prime investment opportunities.

Uncharted collaborations: From little shiny red dot to startup hotspot
In moving from the ‘Little Red Dot’ to a global startup hotspot, Singapore must foster uncharted collaborations that redefine public-private partnerships.

ESG frameworks and standards: Cutting through the complexity for private markets
Having navigated ESG frameworks myself, I’ve created a concise guide with useful links to demystify these concepts for private markets.

10 decisive factors for choosing your startup’s tech stack in 2024
Crafting your startup’s tech stack requires careful planning to ensure success, considering factors like compatibility, scalability, future-proofing, maintenance, and support.

Building trust through partnership: How collaboration enhances reputation
Building your client base directly is one of the primary ways in which a strategic collaboration may help your company expand.

FROM THE ARCHIVES

Expert advice for crafting a winning deck, straight from the community
While there are many factors that contribute to the success of a fundraising process, you want to make sure that your pitch deck is spot on.

With STEPVR, making AI-generated videos is as easy as creating PowerPoint presentation
STEPVR was part of AI Trailblazers, Singapore’s first Generative AI Innovation Sandboxes established to accelerate AI solutions development.

How to build deep tech startups across borders
Deep tech entrepreneurial journey require both short-term, dynamic, and medium-term, trust-building types of interactions.

Hacking your way into angel impact investing with just US$10K
As the Head of Special Projects at Top Tier Impact, I will give you these much-needed tips on how to start angel impact investing.

Navigating global expansion: Essential tips for entrepreneurial success
For successful global expansion, entrepreneurs must consider these factors to navigate challenges and maximise benefits effectively.

Crowdfunding for startups: Where to begin and how to go about it
Crowdfunding changes the game by reducing dependence on conventional and sometimes exclusive means of financing.

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.

The climate change and gender equality connection: How to support underfunded women-owned business
While there is a distinct relationship between gender inequality and climate change, investment mandates rarely combine both of these lenses.

How is open-source collaboration empowering Asia’s fastest-growing markets?
From startups to multinational corporations, Asia’s businesses actively integrate open-source technologies into their operations.

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This week, Southeast Asian startups secured funding across various sectors including logistics, entertainment, sustainability and e-commerce.

Jalat Logistics, a Cambodian company, aims to revolutionise same-day delivery with its management portal, while Singapore-based Kasagi Labo focuses on bringing authentic Japanese anime content to a global audience.

In the sustainability sector, Humble Sustainability from the Philippines is promoting a circular economy by helping businesses sell used IT equipment. Investors also showed interest in BANIQL’s innovative technology for sustainable nickel and cobalt extraction in Indonesia.

This funding spree highlights the diverse and promising startup ecosystem in Southeast Asia.

Jalat Logistics (Cambodia)

Founded in 2021 by Sou Sethey, Sou Sreyphoung, and Ung Lylay, Jalat Logistics provides a management portal to streamline logistics operations and enhance service delivery. Phnom Penh-based startup ships inventory, optimises it intelligently across its networks, packs it according to brand identity, and delivers it to customers within four hours. According to Chairperson Sreyphoung, Jalat Logistics aims to introduce standard same-day delivery that is “reliable, convenient, and informative”.

Funding raised: Not disclosed
Round: Not specified
Investors: Satori Giants and X Venture Holdings

Kasagi Labo (Singapore)

Founded and helmed by anime enthusiast Kendrick Wong, Kasagi Labo delivers authentic Japanese anime content through a multifaceted approach encompassing IP licensing, distribution, and merchandising. The platform aims to unite the entire anime content creation ecosystem, from IP owners to artists and voice actors.

Singapore-based Kasagi Labo, a venture studio that brings authentic Japanese anime to a global audience, has secured US$12 million in a pre-Series A round of financing led by Burda Principal Investments, a division of Europe’s media and technology conglomerate Hubert Burda Media.

Funding raised: US$12 million
Round: pre-Series A
Investors: Burda Principal Investments, CMT Digital, SuperScrypt, Hashed, Sfermion, and Gold House Foundation.

BANIQL (Indonesia)

attracts US$1.6M for its innovative approach to nickel, cobalt extraction
Founded by Willy Halim (CEO), Eric Januar (COO), and Seung Wan, BANIQL has developed innovative technology to make the extraction of nickel and cobalt sustainable and environmentally friendly. Nickel and cobalt are essential components in electric vehicle (EV) batteries and renewable energy storage.

Funding raised: US$1.6 million
Round: Seed
Investors: BEENEXT, Seedstars International Ventures, A2D Ventures, Sopoong Ventures, and angels.

Humble Sustainability (Philippines)

Humble promotes a circular economy by helping businesses sell their old IT equipment instead of throwing it away, reducing electronic waste. It aids clients in reaching their Environment, Social and Governance (ESG) goals by reusing equipment. The company has an ambitious goal of making one billion items circular by 2030.

Funding raised: Undisclosed
Round: Not specified
Investors: Gobi-Core Philippine Fund, National Development Company, Double River Impact, Equitrust Holdings, and angels from XA Network.

PopChill (Hong Kong)

PopChill is a luxury resale marketplace for authentic second-hand fashion luxury items in Taiwan and Hong Kong. The marketplace features over 100,000 items in partnership with three of the top ten luxury resellers in Japan and suppliers from Taiwan and Hong Kong. Its most popular brands are Chanel, LV, and Hermes and they contribute to 60 per cent of the total revenues. Handbags constitute 80 per cent of sales, and PopChill plans to diversify into watches and jewellery in the next six to 12 months.

Funding raised: US$3.1 million
Round: Pre-Series A
Investors: Top Taiwan Venture Capital, 500 Global, Acorn Pacific, ITIC, AVA Angels Fund, Acorn Pacific Ventures, and Darwin Ventures.

XSQUARE (Singapore)

XSQUARE Technologies is an intelligent warehousing automation company. Started in 2019, XSQUARE provides intelligent warehouse solutions designed to address critical gaps arising from recurring labour shortages and the urgent need to automate and optimise operations in brownfield and greenfield environments. Its suite of autonomous forklifts and intelligent warehouse orchestrator software simplifies warehouse operations without requiring extensive reconfiguration, thus saving time and costs. It serves clients in a diverse range of industries, from pharmaceuticals to manufacturing.

Funding raised: US$7.8 million
Round: Series A
Investors: Wavemaker Partners, SEEDS Capital, and Goldbell Corporation.

Honest Bank (Singapore)

Founded in 2019, Honest Bank is a financial services startup focused on the Indonesian market. Its core product is the Honest Card, a credit card available in both physical and digital form. In Indonesia, the company is led by Dharu Estiningrum, who was previously an executive in the credit card division of state-owned Bank Mandiri.

Funding raised: US$2.5 million
Round: Series B
Investors: Rakuten Ventures and Jetha Global.

Mighty Jaxx (Singapore)

Founded in 2012 by Jackson Aw, Mighty Jaxx creates limited-edition collectibles in partnership with well-known companies such as Nickelodeon, Warner Brothers, and Netflix, among others. The design studio has customers in 90 countries.

Funding raised: US$11 million
Round: Series A+
Investors: Sunova Capital and East Ventures.

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The transformative impact of generative AI on company productivity has become clear over the past 12 months. According to Microsoft’s 2023 Work Trend Index, 70 per cent of people say they would delegate as much work as possible to AI to lessen their workloads. At the same time, however, 49 per cent of people worldwide fear that their jobs will soon be replaced by AI, with this percentage rising to 58 per cent in the APAC region.

The anxiety of job obsolescence remains palpable and ubiquitous, undercutting the excitement around the technology. Rather than view generative AI with fear and apprehension, however, I believe we should approach the issue with a more empowering mindset.

AI will replace tasks, not jobs

The first thing to remember is that a high level of fear-mongering that we will all soon lose our jobs to the AI revolution exists. The recent spree of highly publicised lay-offs in the tech industry has deepened the assumption that people are actively being replaced by their digital counterparts — a sentiment that started once the job market took a hit by COVID-19. In truth, many of these tech firms are attempting to right-size their headcount after over-hiring during the pandemic to meet the spike in digitalisation.

According to the 2023 Work Trend Index, most business leaders are looking to leverage AI to improve employee productivity, not reduce headcount. High on the list of priorities are automating repetitive yet necessary tasks, eliminating low-value activities, and augmenting the capabilities of existing talent to accelerate the pace and quality of their output. It is my firm belief that AI will be used to replace tasks and not jobs.

Upskilling up new generations

A study by Salesforce last year reported that while 65 per cent of generative AI users are Millennials or Gen Z, 68 per cent of non-users are Gen X or Baby Boomers. This reluctance to use AI can be attributed to unfamiliarity, perceived uselessness, and uncertainty about the benefits of its impact.

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

However, with many generative AI integrations still requiring human involvement, the professional experience that Gen X and Baby Boomers have would give them an edge over Gen Zs as subject matter experts and enable them to exercise better judgment.

Singapore’s SkillsFuture (SSG) movement, a government initiative aimed at workforce upskilling, recently rolled out its LevelUp programme to encourage workers aged 40 and above to future-proof their careers by acquiring new skills. Upskilling in today’s competitive landscape, especially with the advent of new technologies, is no longer a luxury but an imperative to staying relevant in the workforce.

Orchestrating AI agents in an integrated workplace

Rather than having one job replaced entirely by one stream of AI, a person may have multiple AI agents performing specific tasks in different parts of their workflow. Where 2023 saw the introduction of AI apps to the public, enterprise applications have become a quickly developing area of demand that computing giants such as NVIDIA are keen to get ahead of. With the right training, I believe that workers who can codify their domain knowledge and processes into AI Agents for specific tasks will unlock tremendous productivity gains.

Upholding safety and security in the use of AI

As we integrate AI technology into businesses, there is growing attention to responsible practices and vigilant oversight so that sensitive and proprietary data are not compromised.

While regulators worldwide are drawing up guidelines on AI use, I think organisations should prepare by appointing a qualified Data and AI Governance officer, or team, to rollout AI in the organisation with robust frameworks to maintain staff compliance to evolving guidelines.

Also Read: 6 reasons why startups should invest in sustainability

Having an AI Usage Policy is a good starting point for governing how employees may utilise AI within ethical privacy guardrails, especially if general users in the company leverage public tools for specialised queries and document analysis or creation.

Adopt a co-intelligence mindset in using AI

Productivity and governance are two key themes in the era of enterprise generative AI adoption. While there is understandable apprehension surrounding job displacement, the reality remains that AI is more likely to replace tasks rather than entire roles.

Embracing this technology requires a shift in mindset towards continuous upskilling, ensuring that you have the relevant expertise and oversight to be the human-in-the-loop in an AI-enabled workforce.

As Ethan Mollick, Professor at the Wharton School and the author of Co-intelligence expressed, we should perceive AI as co-intelligence. It is my opinion that its benefits will allow workers to tap into heightened levels of productivity. I feel it would be a disservice to oneself to adopt a Luddite stance when the opportunities are here for the taking.

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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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit: Canva

The article was first published on April 30, 2024

The post AI: Boon or bane? Workers fear job loss despite productivity gains appeared first on e27.

Shomvob, a B2B job-tech and HR-tech platform in Bangladesh, has raised US$1 million in a pre-seed financing round led by Singapore-based Cocoon Capital.

The Dhaka-headquartered startup also received a grant from the Bill & Melinda Gates Foundation.

The funds will support the development of a comprehensive Human Resources Information System (HRIS) that encompasses everything from recruitment to payroll management, streamlining HR processes and improving access to job opportunities, particularly for historically underserved groups.

Also Read: wagely raises US$23M in equity and debt to further expand in Indonesia, Bangladesh

Founded in May 2022 by Rifad Hossain, Naqib Muhammad Faiyaz, and Hasibur Rahman, Shomvob supports the blue and silver-collar workforce in the South Asian country.

Currently, more than 650,000 corporations and SMEs in Bangladesh face critical hiring issues for their frontline workforce due to an over-reliance on paper-based processes and information asymmetry. This often results in a talent mismatch, causing up to 30 per cent productivity loss.

On the other hand, around 70 million people in the country struggle to find jobs that meet their expectations, often falling prey to local brokers or middlemen known as ‘dalals’.

Shomvob addresses these issues by providing job seekers with a professional digital identity application process for relevant positions. Its algorithm matches candidates with suitable jobs, while its Application Tracking System (ATS) offers transparent, real-time updates on application progress. For companies, the platform simplifies their hiring processes, reducing time and costs while ensuring compliance.

Since launch, the startup claims to have registered over 600,000 job seekers and more than 1,300 companies, facilitating over 12,000 job placements. The jobs cover several key sectors, including logistics, retail, and healthcare, demonstrating the platform’s wide-reaching impact.

Also Read: How ShopUp helps Bangladesh SMEs to take on big players with its B2B e-commerce platform

Shomvob has also partnered with UNICEF’s Generation Unlimited P2E (Passport to Earning) to boost job seekers’ employability. This initiative provides youth access to quality education, skills training, and employment opportunities, particularly in underprivileged and marginalized communities.

The HR-tech venture’s long-term vision includes integrating embedded financial services for its clients and expanding into the global mobility market to facilitate the movement of human resources.

The recruitment and staffing market opportunity in Bangladesh is valued at US$17 billion with a broader Asian market size of US$250 billion growing 8 per cent annually.

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Singapore‐based intelligent warehousing automation company XSQUARE Technologies has bagged SGD10.5 million (US$7.8 million) in Series A funding.

Wavemaker Partners led the round, which also saw participation from SEEDS Capital and Goldbell Corporation.

The fresh funds will be used to accelerate the startup’s regional growth and product development efforts.

Also Read: Revolutionising warehousing: An in-depth conversation with XSQUARE Technologies

“Over the past five years, we have enabled companies to overcome automation fragmentation and achieve complete interoperability across a diverse range of warehouses, factories, and dynamic environments,” said CEO Jens Bohnwagner. “This funding serves as a catalyst for XSQUARE’s growth trajectory, empowering us to scale up our operations, further enhance our technological capabilities, and reinforce our position as a leader in intelligent warehouse solutions.”

Started in 2019, XSQUARE provides intelligent warehouse solutions designed to address critical gaps arising from recurring labour shortages and the urgent need to automate and optimise operations in brownfield and greenfield environments. Its suite of autonomous forklifts and intelligent warehouse orchestrator software simplifies warehouse operations without requiring extensive reconfiguration, thus saving time and costs. It serves clients in a diverse range of industries, from pharmaceuticals to manufacturing.

The firm recently partnered with Mitsubishi Logisnext (ML), one of the world’s largest material handling equipment companies, to collaborate on the development of a new line of Automated Guided Vehicles (AGVs) and the distribution of XSQUARE’s existing products through ML’s global distribution network.

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Right Choice Capital Group, a Singapore-based provider of SME and consumer lending, remittances, payments, and wallet services, recently announced its FY2024 revenue surged over 100 per cent.

Started as a small lending business in the Philippines, RCC has grown into a diversified financial services group with four business units across Singapore and the Philippines, six office branches, over 100 employees, and multiple revenue streams. Since its inception eight years ago, the firm has raised over US$22 million in funding from private investors.

The group recently announced that it achieved 114 per cent y-o-y revenue growth and crossed the SGD10 (US$7.4) million revenue threshold while maintaining EBITDA (SGD3.4 million or US$2.5 million) and net income. All its business units grew steadily during this period, including Right Choice Finance Corp, Right Choice Payments, the Rural Bank of San Luis, Right Choice Kapital, and RCC-Tech.

Right Choice Capital’s CEO and founder, Kodi Kodrowski, spoke with e27 about the growth and its diversification and expansion plans.

Edited excerpts from the interview:

Can you share insights into the key drivers behind this exceptional performance for Right Choice Capital Group?

Two business units have had an outstanding performance during FY2024.

Firstly, our newly established Singapore SME financial services consulting business, Right Choice Kapital (RCK), did exceptionally well in its first full year of operations, generating over 25 per cent of group revenue. RCK provides consulting services and loans in a substantial market niche related to SME and small company funding. The SME funding gap in Singapore is estimated to be more than US$10 billion per year.

Also Read: Right Choice Capital gets nod to acquire Filipino rural bank, in talks for US$10M funding

RCK provides strategic guidance, tailored finance solutions, and access to essential resources. This has led to a successful start for the business unit and the ability to quickly ramp up the business and turn it into a profitable operation and margin contributor in year one.

RCC Tech was the other successful business unit within the group during the last financial year. It provides technology services to a broad range of external customers, serving some of the largest BPOs in the Philippines.

Starting as our internal technology provider, it has now expanded into a fully-fledged and profitable business unit.

How has each of RCC’s business units contributed to the significant revenue growth, particularly highlighting the performance of Right Choice Finance Corp, Right Choice Payments, and the Rural Bank of San Luis?

Right Choice Finance in the Philippines continued to provide loans primarily to SMEs and consumers via our earned wage access and salary loan products. Essentially, it operates in a very large, underbanked, and underserved lending market in the Philippines, where existing players are unable to meet the growing borrower demand. This business also has a strong ESG and social impact aspect.

Right Choice Payments has also continued on its steady path of providing international payment services to Singaporean customers who need to efficiently and cost-effectively send funds overseas to its 12 main remittances “corridors.”

Finally, the full acquisition process for the Rural Bank of San Luis will be completed in 2024, providing the group with a fully licensed banking operation that complements its lending operations, a deposit-taking capability, and digitised and streamlined banking operations.

How does RCC ensure sustainable lending business performance through prudent loan underwriting and portfolio management, especially across different markets such as Singapore and the Philippines?

Right Choice Capital ensures sustainable lending business performance through prudent loan underwriting and portfolio management practices tailored to the specific characteristics of each market, including Singapore and the Philippines. It achieves this by using comprehensive risk assessment and due diligence, risk-based pricing, diversification across industries, regions, and borrower profiles, adherence to regulatory standards, proactive portfolio monitoring and management, and stress testing and scenario analysis.

What are the key areas of focus for RCC in terms of pushing boundaries, pursuing innovation, and creating value for stakeholders moving forward?

Technology and digital innovation: RCC will continue to invest in technology and digital innovation to enhance operational efficiency, improve customer experience, and drive business growth.

Product development and differentiation: RCC will continue to focus on developing innovative financial products and services that meet clients’ evolving needs and differentiate the company in the market.

Market expansion and diversification: RCC will explore opportunities for market expansion and diversification, both geographically and across different industry sectors.

Client-centric approach: RCC will deliver exceptional value and service to clients through a client-centric approach. By putting clients at the centre of everything RCC does, the company aims to foster long-term relationships, loyalty, and trust.

Risk management and compliance: RCC will prioritise risk management and compliance to safeguard the interests of stakeholders and ensure the integrity and stability of its operations.

Talent development and culture: RCC will continue to invest in talent development and culture to build on our existing culture of innovation, collaboration, and excellence within the organisation.

Can you provide more information about Right Choice Capital’s investment track record and the opportunities it offers for both fixed-term private debt investments and equity investments in its Series A Funding round?

RCC’s investment track record is solid. Approximately S$30 million (over US$22 million) has already been invested in the business, and S$18 million has been disbursed in interest and principal repayments to its investors.

Also Read: Unlocking the future of lending with risk-based pricing

Based on recent solid growth and strong base business, the RCC group continues to be an attractive investment proposition, particularly for accredited private debt investors seeking fixed investment terms with relatively high yields (up to 19 per cent). The private debt investment funds offer liquidity to lending portfolios to service the continuing borrower demand in the Philippines and Singapore.

In addition to continually raising private debt funding for loan portfolio liquidity, we are also seeking to raise US$20 million in Series A equity funding as growth capital to increase our stake in the Philippines Bank, digitise the bank, grow all business units, and for general working capital.

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Did you know that an estimated 8,000 retired aircraft are stored in deserts, jungles, and storage yards worldwide, with a projected increase of 11,000 over the next decade?

This situation presents a significant opportunity to utilise decommissioned aircraft as a source of valuable circular materials, addressing the waste pollution challenges faced by the shrinking legal boneyards globally. High-value materials such as aluminium and carbon fibre, which constitute the majority of aircraft components, are expected to see rising demand, particularly from industries supporting the green transition.

This is why Singapore-based Nandina REM builds an innovative approach to reclaiming precious materials from retired or end-of-life (EOL) aircraft and reprocessing them to aviation specifications for use in new products, such as electric vehicle battery casings. The company has achieved significant milestones this year, including launching reclaimed carbon fibre from EOL aircraft—an industry first—at the Singapore Airshow.

Run by a team of 13, Nandina REM has raised an undisclosed funding round and is preparing for its next funding stage.

Apart from that, the company has also spearheaded the Aviation Circularity Consortium, an alliance of organisations on a joint mission to accelerate supply chain decarbonisation by catalysing a circular economy model that creates value from the 8,000 end-of-life retired aircraft housed in boneyards around the world.

Also Read: Collaboration and a sense of urgency: What it takes to support climate tech startups in Southeast Asia

Nandina REM CEO Karina Cady explains to e27 the company’s journey and the future it envisions with its solutions.

The following is an edited excerpt of the conversation.

Can you elaborate on the significance of reclaiming carbon fibre from end-of-life aircraft and how it contributes to the aviation industry’s journey to net zero?

Carbon fibre is everywhere, from automotive and aviation products to green technologies like wind turbines. Its unique combination of high strength and light weight makes it a sought-after material for various industries. Demand for it globally is increasing, with signs of a supply deficit already appearing. However, producing virgin carbon fibre has raised considerable environmental concerns as it is extracted from fossil fuels and involves an energy-intensive process, requiring 14 times the energy production of steel.

Nandina REM’s innovative approach mitigates this supply shortfall while addressing the environmental issues of producing virgin carbon fibre. The key to this is retired aeroplanes decommissioned and left parked in boneyards worldwide. There are an estimated 8,000 retired aircraft globally today, with 11,000 estimated to come in the next 10 years – and they increasingly contain more and more carbon fibre.

Some aeroplane recycling does exist, but after parting out critical components like the engine, the rest of the fuselage is usually crushed and used as construction scrap as it loses its material integrity in the process. However, our proprietary recovery technology can reprocess carbon fibre while retaining mechanical properties comparable to its virgin counterpart. To add, it is 30 per cent lower in cost and produced using 71 per cent less energy.

Our approach provides the aviation industry with a new source of sustainable aviation-grade materials that meet its increasing material needs while supporting its transition to net zero. In doing so, we are also eliminating the increasing waste pollution of retired aircraft discarded in boneyards.

Also Read: The climate change and gender equality connection: How to support underfunded women-owned business

How does Nandina REM access these retired aircraft materials? Is there any particular challenge to it?

We have developed a strong network of partners where we source and disassemble the planes into parts before sending them to our reprocessing facilities. The challenge is sourcing planes that have been discarded and left to deteriorate in places that can be hard to access – including in jungles and nearby communities within Southeast Asia. Without proper handling, they can cause contamination in their environments and are a liability to local governments.

We are engaged with several brokers for planes in official boneyards but also have an open invitation for governments or organisations in the region to send discarded planes to us as we can breathe new life into them, minimise (or even remove) the risk of contamination in the communities they’ve been left in – and create opportunities for local employment along the way.

Can you tell us the history behind the company? What inspired the founders to focus on this as a solution?

Aeroplanes are some of the most highly-engineered assets in the world, and we wonder what happens to them once they reached their end of life. On average, commercial aircraft can operate between 20 to 30 years before retiring. With commercial aviation existing for decades, you can imagine how many thousands of retired aircraft sit idle around the world today.

With over 90 per cent of aircraft able to be reused or recycled, we made it our mission to turn these decommissioned aircraft into new sources of valuable, low-emission circular materials that can forever be reused in greener manufacturing supply chains.

Each of us holds our passions and professional ties to the aerospace industry, and we bring learnings from our diverse backgrounds across multiple industries, including aviation, finance, and environmental impact.

What is your business model? Who are your users, and how do you acquire them?

A wide range of industries can adopt our aviation-grade circular materials, but our immediate focus areas are aviation and automotive.

Also Read: Why these startups focus on informal plastic waste workers in the fight against climate crisis

Adoption in the automotive market will happen faster as there are relatively fewer market entry requirements (compared to aviation), and we are already seeing great traction in that part of the business, particularly for our circular metal alloys.

Meanwhile, carbon fibre makes up a significant percentage of an aircraft frame. It will continue to be increasingly utilised for its strong and lightweight characteristics, crucial for aviation purposes. Recognising more stringent testing and certification requirements, we spearheaded the launch of the Aviation Circularity Consortium, which is developing the certification roadmap to ensure the circular materials meet international safety regulations and uphold the highest safety standards necessary for aircraft manufacturing within a reasonable period.

Manufacturers can use our reprocessed materials in products as diverse as aircraft cabin galleys and seats and electric vehicle battery casings. Our strong network of partners, including one of the leading trading houses, Sumitomo Corporation, puts us in a strong position to engage with customers along the global supply chain.

How does Nandina REM foresee the future trajectory of its initiatives in reclaiming materials from end-of-life aircraft, especially given the projected increase in retired aircraft over the next decade?

With the projected increase in retired aircraft over the next decade, we are strongly positioned to claim at least 1.5 per cent of the carbon fibre market, which is estimated to be valued at US$790 million. Our feedstock is large, growing, and accessible through our strong network of partners.

Once the certification pathway to get circular aviation materials back into aeroplanes is established, our reprocessed materials can essentially be used across all industries. We will continue to encourage broad industry collaboration towards establishing a new system where reclaiming materials from decommissioned high-value assets such as planes and wind turbines will be the norm. In doing so, these materials can essentially forever be reused in manufacturing supply chains, thereby removing the need to build new mines and further extract them from the environment.

Also Read: Collaboration and a sense of urgency: What it takes to support climate tech startups in Southeast Asia

What is your focus for 2024?

We are on track to reprocess 40 planes this year and aim to double capacity within the next two or three years. In partnership with the Aviation Circularity Consortium, we are also working towards the release of the certification roadmap to get circular aviation materials back into aeroplanes later this year.

In the longer term, we are on a mission to cut one gigatonne of greenhouse gas emissions from industrial supply chains by 2030. Whilst ambitious, it is doable, and we are only at the beginning.

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Image Credit: Nandina REM

The post How Nandina REM gives a second life to materials from retired aircrafts through its reprocessing solutions appeared first on e27.

As the Chairman and CEO of GreaterHeat, I am strategically positioned at the forefront, witnessing firsthand the transformative impact of artificial intelligence (AI) across various sectors of our economy and society.

At a time when AI’s applications and ethical concerns are most discussed, it is crucial to recognise that the underlying infrastructure serves as both a fundamental necessity and a strategic asset for technological advancements, presenting prime investment opportunities.

AI infrastructure: The key to future technological innovation

Artificial intelligence (AI) technology has revolutionised various industries in recent years, from healthcare and automotive to finance and retail. AI is reshaping every aspect of our work and lives. However, while people eagerly discuss AI applications and ethics, the infrastructure supporting AI development is often overlooked. In fact, without a solid infrastructure, even the most advanced AI technology cannot truly play its role.

The urgency of investing in AI infrastructure

The demand for AI is growing rapidly among enterprises. According to Mordor Intelligence, the global AI market will reach US$170 billion by 2029. This means enterprises must deploy AI infrastructure as soon as possible to keep pace with technological developments and seize this wave of opportunities.

Also Read: Embracing AI’s promise: Navigating the future of marketing

Conversely, the lag in infrastructure construction will lead to the loss of opportunities. This is a strategic investment concerning future competitiveness, which cannot be delayed.

From expansion to innovation: Reshaping computing and data management models

AI is challenging traditional IT infrastructure. Simply increasing capacity is no longer sufficient; we need to fundamentally reshape IT architecture, shifting from focusing on data management to focusing on AI empowerment.

AI computing prioritises performance and scale, requiring high-performance, high-bandwidth storage and networking. It often monopolises physical machine resources, and many offline computing tasks do not demand high availability, complex scheduling, or disaster recovery mechanisms, making virtualisation unnecessary.

These differences are driving a transformation in IT infrastructure. We must explore more flexible and efficient new infrastructures to unleash AI’s potential fully. This is a revolution from quantitative to qualitative change, which will profoundly affect the future of IT infrastructure.

Embracing blockchain, welcoming a secure, decentralised new era of AI

The rise of Web3 and blockchain technology has ushered in a new era for secure and decentralised AI. These technologies provide AI applications with data security and integrity, which are particularly suitable for sensitive data scenarios.

This forward-thinking new approach safeguards current AI applications and paves the way for future technological innovations. As a responsible technology company, we must embrace these new technologies and proactively lead industry transformation.

Sustainable development: A new consideration for technology investment

While pursuing technological progress, we must also consider the importance of sustainable development. This means that when building AI infrastructure, we should prioritise energy efficiency, actively use renewable energy, and strive to reduce the carbon footprint of digital operations.

This is our responsibility as corporate citizens and an important way to attract environmentally conscious investors. Sustainable development has become a new dimension for measuring the value of technology investments.

Managing risks, choosing the right strategic partners

Investing in AI infrastructure is not without risks. Technological iteration, policy changes, and large project management can all bring challenges. The key is to remain sensitive to risks, focus on flexibility in technology selection, and strictly follow international standards.

Also Read: Human-AI collaboration: The key to unlocking Gen AI’s potential

Choosing the right strategic partners is also crucial. We should seek partners who are not only technologically advanced but also share common values in business ethics and sustainable development. Quality cooperation can bring twice the result with half the effort.

Infrastructure, the foundation of innovation

AI infrastructure serves the present and lays the strategic foundation for future innovation. At GreaterHeat, we are building a robust and flexible new generation of infrastructure to support the long-term development of AI technology.

This requires a forward-looking vision and courage, and we must always keep our vision in mind when making investment decisions and strategic partnerships. We can always stay at the forefront of innovation by keeping our eyes on the future and our feet on the ground.

Driving tomorrow requires today’s cornerstone

Looking to the future, artificial intelligence is bound to set off a profound wave of technological change. And all of this requires a solid infrastructure as the cornerstone. At GreaterHeat, we are trying to build a rigorous and responsible AI infrastructure to match a sustainable technological future.

This is an investment field full of opportunities, an indispensable part of the global technology landscape, and the necessary path to a highly connected, efficient, and sustainable society. Let us join hands and work together to create a new intelligence era.

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Image credit: GreaterHeat

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