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Classroom capitalism: Why private equity is quietly taking over Indian schools

There’s a silent shift happening in India’s education system, and it’s not another edutech startup promising to “disrupt learning.” It’s quieter, older, and far better funded.

Private equity (PE) firms, KKR, Kedaara, Gaja, Apollo, and the like, are now deeply invested in schools. Not apps. Not coaching centres. Not gamified math. Actual schools.

This trend could redefine how capital flows into education, raising questions not just for educators, but also for startups, founders, and investors across Asia.

And not in a one-off “let’s uplift society” kind of way. We’re talking ₹1000 crore+ (US$1.2 billion+) deals, multiple rounds, aggressive M&A, and full-blown portfolio strategies.

Here’s what’s already public:

This isn’t just capital inflow. This is the McKinsey-fication of the Indian classroom.

But wait… aren’t schools supposed to be non-profit?

They are. In fact, the law is very clear.

Under Indian law, private unaided schools must be registered as:

  • A trust (under the Indian Trusts Act)
  • A society (under the Societies Registration Act)
  • Or a Section eight company (under the Companies Act, 2013)

All three are non-profit legal structures, which means:

  • No dividends
  • No equity stakes
  • No profit distribution to shareholders
  • No “sale” or “buyout” of the school entity itself

So how does PE get in? Through the backdoor — fully legal, and frankly, very smart.

The real play: Parallel companies

You see, while the school remains a non-profit, there’s nothing stopping the same promoters from setting up for-profit companies around the school. These might:

  • Own or lease the school real estate
  • Sell uniforms and books
  • Provide canteen, transport, or IT services
  • License curriculum IP
  • Supply teachers or staff through manpower companies
  • Build edutech platforms used by the school

The school trust pays these vendors. The vendors are profit-making. And the profit accumulates outside the school, in structures where PE can invest, hold equity, and exit.

Also Read: The future of edutech: Personalising learning for all

If this sounds like a related party playground, that’s because… it kind of is. But if structured right, and it usually is, it’s perfectly legal.

Profit vs purpose: Are we crossing a line?

Not necessarily. Because frankly, India’s school sector needed capital. It also needed structure, scale, and systems. And PE is bringing all of that.

The older model, a single-school trust run by a family, resistant to any change has its charm, but also limitations:

  • No clear succession planning
  • Low investment in infra
  • No capacity for M&A or regional expansion
  • No incentive for teacher training or tech upgrades

So now, PE brings:

  • Operational discipline
  • Standardised curriculum
  • Hiring practices
  • Brand equity
  • And… yes, return expectations

The fear is whether these “returns” will come at the cost of quality or accessibility. But let’s be honest, the idea that private schools were ever truly non-profit is a fairy tale we told ourselves. All this does is move it from under the table to on the cap table.

Why PE is now obsessed with education

Greg Parry, an education investor who’s seen both the big wins and the belly flops calls education the next big frontier for private equity. His thesis?

Education is:

  • US$7 trillion globally, and growing
  • Recession-resistant
  • Emotionally inelastic (parents don’t cut tuition spend easily)
  • And full of predictable revenue from tuition fees, often paid upfront

In other words, this isn’t just a good sector. It’s future-proof capital deployment.

But here’s the tradeoff, profit isn’t pedagogy

If you zoom out of the models and multiples, what you often see is: PE’s 5–7 year horizon clashing with education’s 15–20 year gestation cycle. It’s a cultural mismatch.

Some real, tangible risks:

  • Curriculum narrowing (what’s measurable > what’s meaningful)
  • Decreased investment in teachers or “non-core” programs
  • Arts and humanities fade out as “non-revenue-generating”
  • Students become monthly metrics

As one educationist put it: the child, the very heart of education is missing from most investment decks.

Education as a balance sheet category?

Some fund managers are openly calling schools “predictable assets with EBITDA potential and regulatory moats.”

That sounds more like a toll highway than a classroom.

And sure, in India’s context, with 320 million children in K–12, rising incomes, and a growing aspiration for private schooling the economics are sound.

But just because a thing makes sense on Excel, doesn’t mean it sits right in real life.

Legally speaking: Where’s the line?

This model operates in a grey-ish zone that lawmakers have… well, quietly tolerated.

Also Read: In this age of digitalisation, is edutech a bane or boon for educators?

What’s legal:

  • Having related companies provide services to schools
  • Paying market-rate (or even slightly higher) fees to these vendors
  • Licensing curriculum content
  • Leasing school land from a promoter-owned entity

What’s not:

  • Diverting school fees into private accounts
  • Inflating vendor charges disproportionately
  • Transferring school assets to for-profit entities
  • Misusing charitable status to evade taxes or regulation

The trick is to keep the “non-profit” entity clean and audit-friendly, while letting the economics play out in the surrounding shell. It’s a game of optics, governance, and tax structuring, something PE excels at.

But regulators are slowly catching on.

The bigger picture

Why are global investors so bullish on Indian schools?

Because India offers the holy grail of investing:

  •  Massive demand (320M kids in K-12)
  •  Urbanisation + nuclear families = school selection pressure
  •  Rising disposable income
  •  Parents who treat education as non-negotiable
  •  Low churn: students stay 12-15 years in the system

Also, education in India isn’t cyclical. It’s recession-proof, emotion-driven, and billable.

Some open questions worth asking:

  • Is this funding improving quality or just valuation?
    Are we getting better schools, or just better investor decks?
  • Are teachers benefiting?
    Or are they just another cost centre being “optimised”?
  • Is there enough transparency for parents?
    Most don’t even know their fees flow through 3-4 vendor layers.
  • Are regulators keeping up?
    Because if this goes unchecked, schools might become the new NBFCs — too big, too complex, and too slippery to monitor.

My two paise

I’m not anti-capital in education. Money can do good, if governed right.

But what we can’t afford is:

  • commodified classrooms,
  • academic assembly lines,
  • or “value-added services” that are just fee bloat in disguise.

The school, for all its evolution must remain a place of learning, not just earning.

There’s room for both heart and hustle. But if we start optimising education the way we optimise quick commerce, we’ll lose the very thing we’re trying to build: a smarter, more equitable future.

Final note

India’s schools are becoming more than just places of learning, they’re turning into strategic assets in the portfolios of global investors. For the startup ecosystem, this raises a key question: how will the influx of private equity reshape opportunities in edutech, education services, and the wider learning economy?

If we optimise education the way we optimise quick commerce, we risk losing sight of its true purpose. The challenge, and opportunity, is to strike the balance between heart and hustle.

Next time you see a school franchise opening 30 branches overnight with a glossy brochure, 3 logos, and a parent app, check who’s funding it. Because somewhere between the SmartBoards and STEM labs, there’s a term sheet.

And behind every term sheet… is a thesis.

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

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The tri-economy: How AI is reshaping our economic future

The old guard of leadership, fixated on sheer headcount as a badge of honour, is already a relic. In a world increasingly shaped by powerful AI agents, the very definition of economic value, power, and prestige is undergoing a seismic shift. We’re not just looking at minor tweaks to our current system; we’re staring down the barrel of a multi-layered economic reality.

I see a future, one closer than you might think, where our global economy splits into three distinct, yet interconnected, ecosystems. Forget your traditional supply chains and corporate structures.

Get ready for the tri-economy.

Ecosystem one: Human-to-human – The enduring heartbeat

Even as AI scales new heights, the uniquely human elements of our economy will not just survive but thrive. Think of this as the craft and connection economy. It’s where value is derived directly from human interaction, bespoke skill, and the irreplaceable nuances of our nature.

This is the realm of:

  • High-touch services: The empathetic therapist, the inspiring teacher, the skilled surgeon, the dedicated caregiver. These are roles where genuine human connection, intuition, and complex emotional intelligence are paramount.
  • Art, culture and experience: Live music, original paintings, artisanal crafts, gourmet dining, immersive travel experiences designed by human experts. The authenticity and shared experience here are priceless.
  • Deep problem solving and innovation: While AI assists, the grand leaps in scientific discovery, philosophical thought, and solving humanity’s most complex challenges will still be driven by human creativity, interdisciplinary collaboration, and that spark of genius only we possess.

In this ecosystem, the “power” won’t be about scale or efficiency, but about authenticity, mastery, and the ability to forge genuine human bonds. It’s a reminder that even in a hyper-automated world, we are, at our core, social creatures.

Ecosystem two: Human-to-agent – Amplified ambition

This is the bridge we’re already rapidly crossing, where human capabilities are supercharged by intelligent AI agents. Call it the augmented productivity economy. Here, AI isn’t replacing us entirely but acting as an indispensable co-pilot, an infinitely patient assistant, and a powerful analytical engine.

Also Read: Why AI won’t replace developers — but CEOs must lead the transformation

Think about it:

  • Personalised everything: Your personal AI agent could manage your finances, optimise your health plan, curate your learning journey, and even design your next vacation, all tailored precisely to your preferences, far beyond what any human assistant could achieve alone.
  • Supercharged professionals: Doctors using AI to diagnose rare diseases faster, lawyers leveraging agents to scour legal precedents in seconds, architects designing complex structures with AI-powered simulations. Humans remain in charge, but their reach and impact are multiplied exponentially.
  • New job roles emerge: This isn’t just about efficiency; it’s about creation. We’ll see roles like “Agent Orchestrators” designing and managing AI teams, “AI Ethicists” ensuring responsible deployment, and “Human-AI Collaboration Specialists” bridging the gap between human intent and agent execution.

In this ecosystem, human leadership shifts from command-and-control to vision- setting, ethical oversight, and strategic direction. The power lies in effectively leveraging AI to unlock unprecedented productivity and achieve goals previously deemed impossible for individual humans.

Ecosystem three: Agent-to-agent – The autonomous frontier

This is where things get truly mind-bending, and where the “sand pile collapse” moment described by researchers feels most imminent. This will be the autonomous exchange economy, driven by human intent but executed by agents transacting directly with each other, with minimal human intervention.

Imagine this:

  • Self-operating businesses: A customer places an order on your website. Your sales agent confirms it, triggering a production agent to initiate manufacturing. A procurement agent automatically sources raw materials from a supplier agent, negotiating prices and delivery times. A logistics agent then coordinates shipping, all transactions settled autonomously via smart contracts and digital currencies. You, the human business owner, simply set the initial parameters and monitor the dashboards.
  • Dynamic resource allocation: In a smart city, traffic management agents could negotiate with energy grid agents to optimise power for public transport based on real-time demand, or with autonomous vehicle agents to reroute traffic during emergencies – all without human middle-men.
  • Hyper-efficient markets: AI trading agents already exist, but in this future, they would evolve into highly specialised micro-agents engaging in hyper-frequency transactions across vast, interconnected markets, optimising resource distribution with unprecedented speed.

Also Read: Inclusive AI isn’t optional – it’s Asia’s tech advantage

This ecosystem will redefine efficiency and scale. The “power” here will reside in the design and robustness of the agent protocols, the underlying data infrastructure, and the initial human intent that sets these autonomous systems in motion.

Not science fiction, but imminent reality

This tri-economy isn’t a distant, fantastical vision. The building blocks are already here: advanced large language models, sophisticated APIs for inter-system communication, blockchain for trustless transactions, and the rapid advancements in robotics and multimodal AI.

The “sand pile collapse” is the critical warning: as individual agent capabilities and coordination mechanisms improve incrementally, there will be a sudden, non-linear jump in their collective performance. This means our capabilities could rapidly outstrip our current infrastructure, regulations, and even our understanding of what it means to work and live.

The implications are profound. We need to start asking:

  • How do we educate and re-skill our workforce for these new realities?
  • What new ethical frameworks are required for truly autonomous economic actors?
  • Who is accountable when an agent swarm makes a mistake in a complex, multi-agent workflow?
  • How will wealth be distributed in an economy driven by hyper-efficient AI-to-AI transactions?

The shift from “I have 1,000 people under me” to “my agents manage 1,000 autonomous tasks” is more than just a change in jargon. It’s a fundamental reordering of our economic landscape. The future isn’t just coming; it’s already here, taking shape across these three powerful, emerging economies. Are you ready to navigate them?

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

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AI and the frontline revolution: Rethinking workforce efficiency in Asia’s next chapter

Across Southeast Asia and the broader Asia Pacific, a quiet revolution is underway—not in boardrooms or data centres, but on the frontlines of retail stores, factories, and warehouses.

As artificial intelligence (AI) becomes more embedded in everyday operations, its impact is no longer confined to knowledge workers. Frontline teams—often overlooked in digital strategies—are emerging as key drivers of operational efficiency, engagement, and customer experience.

AI’s potential on the frontline is now tangible. When applied thoughtfully, it delivers not only business value but also more inclusive, human-centric workplaces.

From fragmented to frictionless: AI as a communication engine

One of AI’s most immediate impacts is streamlining communication. For large, distributed frontline teams, tasks and updates can be inconsistent, delayed, or lost in translation.

Now, head offices can issue instructions that are clear, multilingual, and tailored to each employee’s role and location. Frontline staff can access policies or procedures through AI-powered agents in real time—using their native language, at any hour. Whether clarifying a return policy or checking a shift protocol, employees get direct, reliable answers.

These micro-interactions add up. They reduce delays, bolster confidence, and improve productivity—transforming AI into a quiet but powerful co-pilot across geographies and workflows.

Context matters: Localising AI for Asia’s frontline

Asia’s diversity makes one-size-fits-all solutions ineffective. A delivery driver in Jakarta faces different challenges from a retail associate in Singapore or a warehouse clerk in Manila. AI tools must adapt to sector-specific workflows and local realities.

Also Read: The hidden barrier to AI sustainability: Why clean data matters

In retail, AI can flag low inventory and automatically assign restocking tasks. In logistics, it can surface updated SOPs or training based on real-time operational needs. Whether it’s prompting compliance checklists, delivering bite-sized learning, or surfacing urgent communications, AI agents like WorkJam’s aren’t just analysing data—they’re orchestrating action. The common thread? The best tools are designed for the frontline—not simply deployed at them.

Language as a productivity lever

Language diversity is both a hallmark and a hurdle across Southeast Asia. A single store might include speakers of Malay, Mandarin, Tamil, and English. Historically, this created gaps in communication and onboarding.

AI-powered translation eliminates these friction points. Employees ask questions and receive guidance in the language they’re most comfortable with. This inclusivity translates into better understanding, quicker responses, and improved morale. It’s not just a matter of convenience—it’s foundational to performance.

Responsible AI: Embedding governance and trust

Regulatory frameworks vary widely across Asia. As AI tools proliferate, governance must be part of their design—not an afterthought. From Singapore’s AI ethics guidelines to Australia’s employee protections, compliance is essential.

AI platforms are increasingly incorporating governance by default—restricting after-hours communications, tailoring information access by role, and ensuring employee privacy. These measures aren’t just about following rules; they build credibility and demonstrate that the technology serves the worker, not the other way around.

Designing for digital inclusion

As AI tools spread, digital literacy remains a concern. How do we ensure that technology is an enabler, not a barrier?

Design plays a central role. Interfaces that mirror familiar messaging apps, natural language tools, and voice-based interactions reduce the need for technical fluency. Paired with peer support—where tech-savvy employees help teammates onboard—organisations can foster adoption organically.

Also Read: Blockchain to the rescue: How tech can combat food waste and secure our food supply

When AI “just works,” it accelerates productivity without alienating the very users it’s meant to help.

Trust is the ultimate adoption metric

Adoption isn’t driven by flashy features—it’s driven by trust. Employees must see AI not as a burden but as a benefit. Trust is built through consistent, helpful experiences that save time, reduce complexity, and support their goals.

Transparency helps. When companies collect feedback, share updates, and iterate based on frontline input, employees feel heard. Some organisations go further, establishing internal AI councils to ensure ethical deployment, cross-functional alignment, and shared accountability.

ROI is in the details

To gain momentum, AI initiatives must show measurable returns. Improved customer service, reduced turnover, streamlined onboarding, and time savings all contribute to ROI.

Even small efficiencies can yield outsized gains. One global retailer reduced task time by five minutes across 250,000 employees—a minor tweak that translated to millions in annual savings. With the right metrics, the value of AI is not just theoretical—it’s tangible and scalable.

From the ground up: Asia’s competitive edge

AI isn’t replacing the frontline—it’s elevating it. Asia’s frontline workers are becoming more agile, more informed, and more central to digital transformation.

For business leaders, the message is clear: the next wave of innovation won’t originate from the cloud or the corner office. It will come from empowering those closest to customers and operations. Investing in frontline AI isn’t just good strategy—it’s the next competitive advantage.

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

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Can AI make clean energy pay off? CynLing Software thinks so.

We speak with CynLing Software EVP Nathan Lei about how AI, financial modeling, and microgrid simulations are transforming behind-the-meter energy projects worldwide.

CynLing Software uses AI-driven digital energy management and financial modeling to make behind-the-meter clean energy projects scalable, efficient, and bankable. Featured at the center of the front row is founder of CynLing Software, Justin Lan.

Energy systems are becoming more complex and volatile as the world accelerates towards decarbonisation. Behind-the-meter (BTM) energy storage is emerging as a key solution—helping stabilise power, lower costs, and support industrial sustainability. Yet few companies have made BTM projects both technically sound and financially viable.

CynLing Software is among the companies working to change that. As BTM storage gains global momentum, driven by unpredictable energy prices, stressed grids, and the growing need to decarbonise without sacrificing profitability, the demand for intelligent, financially sound solutions is more urgent than ever. From factories to data centres, operators are looking for systems that don’t just manage energy but prove their return.

How CynLing uses AI to turn strategy into precision

CynLing Software, a Singapore-based spinoff from Taiwan’s CynLing Renewables Inc., is tackling this head-on. The company focuses on AI-powered digital energy management, especially behind-the-meter solutions. “We split the energy storage project into two parts: planning and operations,” says EVP Nathan Lei. “AI plays a critical role in both.” 

The software uses artificial intelligence to simulate capacity needs, optimise control strategies, and model financial return. In operations, it helps ensure that the assets perform exactly as predicted, hour by hour.

We speak with CynLing Software EVP Nathan Lei about how AI, financial modeling, and microgrid simulations are transforming behind-the-meter energy projects worldwide.

CynLing Software EVP Nathan Lei

Forward AI: Forecasting every hour, every scenario

At the heart of CynLing Software’s solution is Forward AI, an advanced digital energy management system. Unlike traditional energy software that relies on static assumptions, Forward AI is built on dynamic forecasting and reinforcement learning.

“We predict solar generation and factory load in 15-minute intervals using in-house models,” Lei explains. “For example, we integrate with a factory’s MES system to get production schedules. From there, we simulate the entire microgrid, from solar, to battery, to load, over 8,760 hours per year.”

These simulations aren’t just academic. In one instance, a competitor claimed a battery system would last 20 years. CynLing’s models, however, showed that due to high temperatures and intensive cycles, the actual lifespan would be closer to 16 years. “That insight saved our client millions in miscalculated investment,” Lei notes.

Also read: Empowering the future of Singapore: The need for SMEs to embrace renewable energy solutions

Generalization is the game-changer

One of CynLing Software’s most significant innovations lies in its ability to generalize AI models across geographies. This is something most energy management systems struggle to achieve.

“Legacy EMS solutions are often hardcoded for a single use case,” says Lei. “They don’t adapt well when conditions change.” In contrast, CynLing’s platform is trained using reinforcement learning in simulated environments, enabling it to handle diverse energy profiles, regulatory frameworks, and usage patterns across markets like Taiwan, Australia, and Southeast Asia.

This scalability, from model to deployment, is what powers CynLing’s broader digitalisation vision. “It’s what makes our software portable, cost-effective, and future-ready,” Lei adds.

We speak with CynLing Software EVP Nathan Lei about how AI, financial modeling, and microgrid simulations are transforming behind-the-meter energy projects worldwide.

Cynling Software’s business model utilizes the power of data science and AI-driven EMS to achieve maximization of investment return for energy asset investors.

Sustainability begins with bankability

CynLing Software doesn’t just optimise energy use, it proves financial viability, making clean energy projects more attractive to investors, banks, and insurers.

“Let’s face it,” Lei says, “renewables are unstable by nature. Sunlight fluctuates. Demand shifts. Batteries are expensive. The only way to scale this infrastructure is to prove it pays back.”

That’s why CynLing’s core service is focused on simulating real-world revenue and degradation models. It shows not just how energy is stored, but how much it earns, when, and for how long.

This matters especially in Southeast Asia, where clean energy demand is rising, but market trust is still fragile. “We’re working with private equities and developers in Thailand and Malaysia,” Lei adds. “Our models help them validate investments before deployment.”

Also read: 5 AI trends to watch in the next 12 months: Intelligent agents, cost reductions and compute power

From Singapore to the world: What’s next

With operations in Taiwan, Japan, Australia, and the U.S., CynLing Software is using Singapore as a launchpad for its regional ambitions. And while the company remains selective about new markets, it’s already eyeing broader Southeast Asian opportunities. It is particularly interested in data centers and industrial zones.

But growth isn’t the only goal. “We’re not here just to sell batteries,” says Lei. “We want our clients to optimize their assets. If the market crashes tomorrow, we’ve already simulated that for you. You’ll know how to pivot.”

When asked what drives him to keep pushing forward, Nathan Lei pauses. “At the end of the day, proving bankability is what allows sustainability to scale. That’s our mission: not just technology, but trust.

Join Smart Storage Taiwan in Nangang Exhibition Center Hall 1, Taipei, Taiwan on 29-31 October to connect with CynLing Software.

For more information, visit their website at https://cynling.com/en/.

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The e27 team produced this article sponsored by CynLing Software.

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Featured Image Credit: CynLing Software

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Foxmont secures US$30M in Fund III first close with Grab, DGGF as investors

Filipino early growth investment firm Foxmont Capital Partners has hit the first close of its third fund at US$30 million.

This milestone more than doubles the VC firm’s assets under management (AUM) and surpasses the combined size of its initial two funds.

The first close of Fund III sees the addition of two key institutional investors. The Dutch Good Growth Fund (DGGF), a development finance institution, serves as an anchor investor. Furthermore, Grab Holdings has also joined the fund.

Also Read: Philippine startups break records in 2024: What’s driving the boom?

The Philippines is rapidly solidifying its position within the Southeast Asian funding landscape, which has witnessed remarkable growth, with funding surging from US$440 million in 2019 to US$1.12 billion in 2024.  The nation now commands 19 per cent of the regional funding, a substantial increase from just 2 per cent in 2021, according to Foxmont’s 2025 Philippine Venture Capital Report.

“We have moved from proving Philippine startups can succeed to showing that they can dominate,” noted Managing Partner Franco Varona. “Foxmont’s early access lets us ride this curve from first check to exit. With Fund 1 and Fund 2, we seeded the ecosystem, and with Fund 3 we are now prepared to grow the ecosystem.”

In addition, the nation’s consumption-driven economy continues to outperform its regional counterparts, boasting a 5.7 per cent GDP growth rate compared to the 4.9 per cent regional average in 2024.

Despite its significant potential, the market remains underserved relative to its regional standing. “The Philippines accounts for 20 per cent of the region’s population but has captured just 13 per cent of funding over the last three years,” said Kenneth Albolote, who has been promoted as General Partner. “This asymmetry creates the most compelling capital allocation thesis in ASEAN today. Foxmont’s early-growth dominance positions it to capture this delta as startups mature.”

According to Ronald Roda, Grab Philippines Managing Director, Grab’s participation underscores the growing confidence in the Philippine tech ecosystem. “As a company deeply rooted in Southeast Asia, we believe the Philippines is poised to become one of the region’s most exciting tech frontiers. Our participation in Foxmont’s Fund III is a vote of confidence in the ingenuity of Filipino founders and the strength of the Philippine startup ecosystem.”

Also Read: Pavilion Capital, AppWorks invest in US$21.3M Fund II of Philippine VC Foxmont Capital

Founded in 2018, Foxmont Capital has invested across various sectors in the Philippine market. The firm boasts a strong track record of attracting follow-on capital and scaling companies, maintaining top-quartile returns through its local presence and first-mover advantage. Its co-investors include prominent names such as General Atlantic, the Susquehanna Group, Singapore’s Pavilion Capital, the Asian Development Bank, and the Philippines’ Startup Venture Fund.

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From dollars to digital coins: Tariffs shake the financial world

Solid earnings from megacap technology firms have failed to buoy broader market confidence, while movements in currencies, stock indices, Treasury yields, commodities, and even cryptocurrencies like Bitcoin reflect a pervasive sense of caution.

I will walk you through what’s driving this retreat, weaving in my perspective on its implications for investors and the global economy.

Trump’s tariffs: The spark of uncertainty

At the forefront of this market unease is President Trump’s tariff policy update. The White House has confirmed that a minimum global tariff of 10 per cent will persist, with countries enjoying trade surpluses with the United States facing steeper duties of 15 per cent or more. Specific nations have been hit harder: Canada now faces a 35 per cent levy, and Switzerland a hefty 39 per cent.

What amplifies the market’s anxiety is the lack of clarity on when these new rates will take effect. This ambiguity leaves businesses and investors grappling with unanswered questions about how these tariffs will reshape global trade flows, corporate profitability, and economic growth.

This tariff strategy reflects Trump’s ongoing commitment to addressing perceived trade imbalances, but it risks igniting a broader trade conflict. Tariffs of this magnitude could disrupt supply chains, particularly for countries like Canada, a key US trading partner, and Switzerland, known for its precision exports. The absence of a timeline only deepens the uncertainty, forcing companies to delay investment decisions and prompting markets to price in potential downside risks.

I see this as a double-edged sword: while it may bolster certain domestic industries, it could also inflate costs for consumers and businesses reliant on imported goods, potentially stoking inflation at a time when central banks are already on edge.

The immediate market response underscores this concern. US stock markets closed lower, with the S&P 500 slipping 0.4 per cent, the NASDAQ holding flat, and the Dow Jones dropping 0.7 per cent. These declines suggest that investors are prioritising the macroeconomic fallout of tariffs over other positive signals, a theme that recurs across asset classes.

Tech earnings: A bright spot overshadowed

Amid this tariff-induced turbulence, megacap tech firms have delivered robust earnings reports. Companies like Apple, Microsoft, and Amazon have showcased strong quarterly results, buoyed by resilient demand for technology products and services. Under normal circumstances, such performances might spark a rally in equity markets. They have failed to lift broader sentiment, a telling sign of the market’s preoccupation with larger forces.

In my view, this disconnect highlights a critical shift in investor psychology. While these tech giants demonstrate operational strength, their success cannot offset the uncertainty surrounding trade policies. Investors appear more focused on how tariffs might erode profit margins for multinational corporations, many of which rely on global supply chains.

Also Read: The Fed, tariffs, and Bitcoin: Unpacking the market dynamics

For instance, higher duties on imported components could squeeze profitability, even for firms reporting solid earnings today. This suggests to me that the market is in a risk-off mode, where macroeconomic narratives trump individual company fundamentals.

Currency markets: Diverging reactions

Currency markets offer a mixed picture, reflecting the varied impacts of Trump’s policies. The US Dollar Index climbed 0.2 per cent, signaling a modest strengthening of the dollar. This uptick likely stems from its safe-haven status amid uncertainty, as well as expectations that tariffs might bolster US economic activity in the short term by favouring domestic production.

However, other currencies tell a different story. The Swiss franc edged lower, likely pressured by the 39 per cent tariff on Swiss exports, which could dent its export-driven economy. Meanwhile, the Canadian dollar held steady despite a 35 per cent levy, perhaps buoyed by its linkage to commodity prices, particularly oil.

The dollar’s modest gain suggests cautious optimism about US resilience, but the stability of the Canadian dollar surprises me given the tariff burden. It may indicate that traders see Canada’s energy exports as a buffer, though I suspect prolonged trade tensions could eventually weigh on the loonie. The franc’s decline, conversely, aligns with expectations, as Switzerland’s smaller, trade-dependent economy has less room to absorb such shocks.

Treasury yields and commodities: Inflation fears and demand worries

In the bond market, US Treasury yields rose, with the 10-year yield increasing 0.4 basis points to 4.374 per cent and the two-year yield climbing 1.7 basis points to 3.957 per cent. This upward movement stands out against the risk-off backdrop, where yields typically fall as investors seek safety in bonds.

To me, this suggests that markets are anticipating higher inflation, possibly driven by tariffs raising the cost of imported goods. It could also reflect concerns about the fiscal implications of trade policies, as reduced trade volumes might not offset the revenue gains Trump envisions.

Commodities present a contrasting narrative. Gold rose 0.5 per cent to US$3,290 per ounce, reinforcing its role as a safe-haven asset during uncertain times. I view this as a classic flight to safety, with investors hedging against both geopolitical risks and potential economic slowdowns.

Also Read: ESG frameworks and standards: Cutting through the complexity for private markets

Brent crude, however, fell 1.0 per cent to US$72.5 per barrel, driven by expectations of increased OPEC+ output following their upcoming meeting to set September quotas. This decline puzzles me somewhat: while higher supply makes sense, softening global demand due to trade tensions could also be at play, signalling broader growth concerns.

Jobs report: A looming test

The market’s gaze now shifts to the upcoming July jobs report, due Friday, which economists predict will show a more deliberate pace of hiring and an unemployment rate rising to 4.2 per cent. This data point carries significant weight.

A softening labor market could amplify fears of an economic slowdown, especially if paired with tariff-related headwinds. Conversely, a stronger-than-expected report might offer temporary relief, though I doubt it would fully dispel the tariff overhang.

In my opinion, this report will serve as a litmus test for US economic resilience. A tick up in unemployment could prompt the Federal Reserve to reconsider its rate stance, particularly if inflation pressures from tariffs persist. For investors, it’s a moment to watch closely, as it could either reinforce or challenge the current risk-off sentiment.

Bitcoin’s plunge: A crypto microcosm

The cryptocurrency market, particularly Bitcoin, mirrors this broader retreat. Bitcoin’s price dropped 2.18 per cent to US$115,621 over 24 hours, a decline fuelled by leveraged liquidations, technical breakdowns, and waning institutional enthusiasm. Between July 31 and August 1, over US$560 million in crypto positions were liquidated, with US$153 million tied to Bitcoin alone.

This cascade of forced selling intensified as Bitcoin breached the US$118,859 support level (the 23.6 per cent Fibonacci retracement of its 2024-2025 rally), turning it into resistance and accelerating technical selling.

Technical indicators reinforce this bearish turn. The Relative Strength Index (RSI) is at 49.44, and a MACD histogram at -630 signals weakening momentum, with the next support at US$114,500 (38.2 per cent Fibonacci) in sight. If breached, an additional US$149 million in liquidations could follow, per technical analysis data.

Also Read: Balancing ambition and well-being: A founder’s take on sustainable company building

Beyond technicals, institutional demand has cooled, with spot Bitcoin ETF assets under management stagnating at US$151.48 billion despite US$47 billion in corporate purchases. Meanwhile, a shift toward altcoins has seen Bitcoin’s dominance dip 0.51 per cent, as capital flows to riskier crypto assets.

Coinglass data paints a stark picture: in one hour on August 1, US$284 million in liquidations hit the crypto market, with US$276 million from long positions, including US$91.6493 million for Ethereum and US$76.0871 million for Bitcoin. Over four hours, liquidations exceeded US$409 million. The Fear & Greed Index slid to Neutral (57) from Greed (62), capturing this sentiment shift.

To me, Bitcoin’s woes encapsulate the broader market’s struggles. The liquidation wave reflects overleveraged optimism meeting harsh reality, while the technical breakdown and institutional pullback suggest a maturing market reacting to global cues. I see this as a warning sign: if even speculative assets like Bitcoin falter, the risk-off mood may be deeper than it appears.

For me, the key takeaway is adaptability. Investors must brace for volatility, balancing safe havens like gold with selective exposure to resilient sectors. The interplay of inflation risks, trade disruptions, and labor market signals will shape the near-term outlook.

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

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Ecosystem Roundup: TaniHub whistleblower speaks | Grab swings to US$35M Q2 profit | Crypto crime map revealed

The recent detentions of MDI Ventures CEO Donald Wihardja and former TaniHub executives mark a stunning turn in Indonesia’s startup investment narrative, where optimism around tech-for-good ventures now collides with a sobering accountability reckoning. Allegations of corruption, money laundering, and data manipulation not only cast a shadow over TaniHub’s agritech promise but also raise broader concerns about governance in venture-backed startups.

What makes this scandal particularly troubling is the cognitive dissonance between TaniHub’s social mission—empowering farmers—and the alleged financial misconduct. As whistleblower testimony reveals, internal misreporting, vague “Special Projects” expenditures, and the artificial inflation of success metrics suggest a culture where perception took precedence over transparency. The revelation that failed farmer loans were reclassified as produce losses to mask defaults is emblematic of deeper systemic flaws.

This case also implicates investors and ecosystem enablers, who may have turned a blind eye to red flags in pursuit of impact narratives and portfolio growth. With both private and state-affiliated funds now under scrutiny, there is a clear call for stronger due diligence, post-investment oversight, and whistleblower protections.

TaniHub’s fall from grace should serve as a cautionary tale: mission-driven startups are not immune to scrutiny, and good intentions cannot excuse ethical lapses in financial stewardship.

REGIONAL

“Special Projects” and shady metrics: TaniHub whistleblower speaks as top execs detained
A former employee reveals financial misreporting and questionable practices at TaniHub, as authorities detain top executives in corruption probe.

Grab posts Q2 2025 earnings of US$35M on rising revenue, margins
This is a reversal from US$53M loss in Q2 last year | Revenue rose 23% y-o-y to US$819M | The turnaround was driven by operating profit and lower finance costs, though this was partially offset by higher income tax expenses.

PropertyGuru rebounds with double-digit growth after US delisting
The group’s newly appointed CEO Lewis Ng said the revenue and adjusted EBITDA saw double-digit growth between June 2024 and June 2025 | Its last announced adjusted EBITDA was US$5.3M for the quarter ended June 30, 2024.

Grab joins Foxmont’s US$30M Fund III to back Philippine startup boom
The Philippine funding surge from US$440M in 2019 to US$1.12B in 2024 | The nation now commands 19% of the regional funding, a substantial increase from just 2% in 2021.

Singapore ranks second globally in AI readiness, leading Asia Pacific
With robust regulation, strong digital infrastructure, and a focused national strategy, Singapore cements its leadership in agentic AI.

Indonesia’s AI ambitions face hard limits amid foundational gaps: Salesforce
Indonesia stands to benefit significantly from AI—but only if it can address the structural weaknesses that currently hold back its progress.

Blibli H1 revenue rises 22% to US$592.6M
The company operates online and physical retail platforms, including the Blibli and Tiket.com brands, and holds a 70.6% stake in PT Supra Boga Lestari Tbk, which operates Ranch Market.

Peak XV leads US$8.5M Series A in Singapore startup SixSense
SixSense develops an AI platform that helps semiconductor manufacturers detect and predict chip defects on production lines in real time.

REPORTS, FEATURES & INTERVIEWS

Crypto crime has a map: Where victims—and losses—are concentrated in 2025
New data reveals 2025’s crypto crime hotspots, highlighting regional disparities in victim counts, asset types, and severity of losses.

Laundering, layered: The strategy, psychology, and mistakes of crypto thieves
Crypto laundering in 2025 reveals diverging tactics by threat actors, with rising costs, regional shifts, and growing reliance on blockchain obfuscation.

From Singapore to 70+ areas in Japan: How SWAT is using AI to rewire ageing transit systems
SWAT Mobility brings AI-powered, demand-responsive transport to Japan, tackling ageing demographics and inefficient transit with scalable, smart mobility solutions.

Crypto-security race: Sysdig believes real-time visibility is non-negotiable
As crypto exchanges face relentless cyber threats, Sysdig champions real-time visibility and AI-driven defence as essential for cloud resilience.

The power of automation: How Sabrina ‘Princessa’ Wang uses AI to create time for what matters most
Wang reflects on her journey, blending resilience, tech, and storytelling to guide entrepreneurs and creators to thrive.

How Hasan Venture Capital uses AI to build an ethically grounded investment future
Hasan Venture Capital views AI as a catalyst for ethical transformation. The firm uses the tech in reviewing and supporting halal innovation.

Tariff fallout: What performance marketers must know to stay competitive
According to Stella Zhu of Playturbo, performance marketers can create a real edge through their creative strategy.

ECHELON SINGAPORE 2025

10 powerful sessions now available to stream
​​For less than the cost of your daily coffee, you can access every one of these thought-provoking sessions—and hundreds more—via Echelon Recorded Sessions On Demand.

Investing in innovation: The role of banks and CVCs in the Indonesian tech startup ecosystem
The session offers clarity on how CVCs can be more than capital providers: they can be catalysts for sustainable growth.

INTERNATIONAL

Apple revenue hits US$94B, strongest growth since 2021
IPhone sales rose 13% to US$44.6B, while Mac revenue increased nearly 15% to US$8.1B | The services business grew 13% to US$27.4B | However, iPad and wearables revenue declined 8% each.

CEO Tim Cook says Apple ready to spend big on AI
Apple’s AI strategy has included developing in-house improvements to its Siri voice assistant | The company has also partnered with OpenAI to integrate ChatGPT into certain iPhone features.

OpenAI reportedly doubled annualised revenue to US$12B
This suggests OpenAI is generating about US$1B in monthly revenue | The company reportedly has around 700M weekly active users for its ChatGPT products used by both consumers and business customers.

Coinbase drops after Q2 revenue miss on low trading volume
The US cryptocurrency exchange’s shares fell 7% in after-hours trading after the company reported second-quarter revenue of US$1.5B, missing analyst expectations of US$1.59B.

SEMICONDUCTOR

Korean chipmaker FuriosaAI bags US$125M to scale chip production
The investors include Korea Development Bank, Industrial Bank of Korea, and Kakao Investment | FuriosaAI plans to use the funds to ramp up production of its RNGD inference chip and develop its next-generation chip.

US chip equipment supplier KLA forecasts strong Q1 revenue
KLA Corp expects first-quarter revenue of US$3.15B, plus or minus US$150M, surpassing Wall Street’s average estimate of US$3B | This is attributed to strong demand for AI-supporting advanced processors.

ARTIFICIAL INTELLIGENCE

AI at work: Moving forward with employee engagement
While AI can revolutionise employee engagement, it requires thoughtful implementation, ethics, and a human-centric approach.

What big tech won’t show you about the future of AI
Real AI progress is being made by focused startups solving business problems with speed urgency and practical innovation.

AI and the frontline revolution: Rethinking workforce efficiency in Asia’s next chapter
AI is reshaping frontline work in Asia, driving efficiency, inclusivity, and trust while redefining digital transformation.

The tri-economy: How AI is reshaping our economic future
The rise of AI is shaping a new tri-economy, blending human skill, AI collaboration, and autonomous agent-driven systems.

THOUGHT LEADERSHIP

The Fed, tariffs, and Bitcoin: Unpacking the market dynamics
Global markets balance strong US data with Fed caution, trade tensions, and crypto volatility as investors await clearer signals.

Classroom capitalism: Why private equity is quietly taking over Indian schools
Private equity is quietly reshaping India’s school sector with billion‑dollar investments, raising questions on profit and purpose.

Why traditional wealth strategies are failing India’s new-age investors
Most Indian investors still rely on outdated wealth models even as a new data-driven generation seeks smarter, adaptive strategies.

From founder to investor: Shifting your mindset to sustainably grow your company
Smaller companies can scale sustainably by adopting an investor mindset and making strategic acquisitions that align with long-term goals.

Indonesia’s fitness pivot: From big-box gyms at the mall to agile shophouse startups
Shophouse gyms are reshaping Indonesia’s fitness scene as health-conscious youth drive growth beyond malls into accessible spaces.

The evolution of influence: The next chapter of creator leadership
Influence today is no longer about chasing noise, it is about clarity, balance, and building connections that truly last.

Startup winter hits SEA: Choosing investors wisely matters more than ever
In Southeast Asia’s funding slowdown, startups must target smart capital that offers networks, expertise, and long-term strategic alignment.

You can scale a product, but can you scale purpose?
Purpose-driven teams endure startup pressure by anchoring on shared values and fighting industry imbalances with integrity and clarity

A new insights attitude for SMEs in the era of the ‘insights engine’
Adopting an all-hands-on-deck insights attitude, SMEs can reach new horizons with sails as effective as insights engines.

A startup founder’s guide to navigating a VC funding round: A lawyer’s perspective
A guide for founders on navigating VC funding rounds with legal prep, smart negotiations, and long term success in mind.

The SEA headcount trap: Why more people ≠ more progress
In SEA, growing headcount doesn’t always mean progress; scaling smartly with clear roles and goals is what drives results.

Inside SEA’s new work culture: A look into Vietnam’s hybrid transformation
Hybrid work in SEA is evolving slowly but deeply, with Vietnam at the centre of a shift toward more flexible, human-first models.

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SixSense nets US$8.5M to bring AI-driven precision to chipmaking


SixSense, a Singapore-based startup that applies artificial intelligence (AI) to semiconductor manufacturing, has closed a US$8.5 million investment round led by Peak XV’s Surge.

Alpha Intelligence Capital, Febe Ventures, and other unnamed investors also participated.

Founded by engineers Akanksha Jagwani and Avni Agarwal, SixSense directly addresses one of the semiconductor industry’s most formidable challenges: transforming vast quantities of raw production data–ranging from intricate defect images to precise equipment signals–into actionable, real-time intelligence.

Also Read: ‘The future of semiconductor manufacturing is regional’: Global TechSolutions CEO

This intelligence is critical for factories to pre-empt quality issues, enhance throughput, and ultimately produce a greater number of high-quality chips from existing production lines.

The demand for advanced chips is escalating rapidly, driven by emerging technologies such as AI, 5G, the Internet of Things (IoT), and electric vehicles. Chipmakers are under immense pressure to design and manufacture smaller, more intricate chips, leaving significantly less margin for error.

“Making a single chip is one of the most demanding feats in modern manufacturing; it happens in cleanrooms thousands of times cleaner than hospital operating rooms and relies on precise coordination across hundreds of machines and thousands of ultra-sensitive steps,” said Akanksha Jagwani, co-founder and CEO. “Imagine trying to build a skyscraper out of microscopic Lego blocks, where a tiny shift in one brick–invisible to the eye–can collapse the whole structure. That’s what chip factories face every day.”

Identifying early indicators of potential failure before they escalate into costly defects or delays remains a significant hurdle, making AI an indispensable tool for the industry.

The SixSense AI platform empowers engineers with the crucial early warnings to address problems proactively. It achieves this by analysing massive volumes of production data to detect, classify, and predict failure patterns, thereby enabling factories to transition from reactive inspection processes to proactive control mechanisms.

Also Read: Singapore’s semiconductor stars: A look at key players and startups

With the SixSense platform, manufacturers gain the ability to:

  • Catch rare, minute, and critical defects that often elude human detection.
  • Avoid over-rejecting perfectly good chips, consequently boosting usable output, commonly known as yield.
  • Predict process drifts before they precipitate larger, more significant failures.

Avni Agarwal, Co-founder and CTO, added: “Unlike traditional AI tools, SixSense is hardware-agnostic, explainable, and built for engineers, not data scientists.” This design philosophy ensures that process engineers can fine-tune models using their proprietary fab data, deploy them in under two days, and trust the results – all without the need to write a single line of code. “That’s what makes the platform both powerful and practical.”

The platform has already established a presence globally, powering inspection lines at leading semiconductor manufacturers, including GlobalFoundries and JCET. According to SixSense, its customers have processed 100 million chips through the system, consistently achieving “substantial benefits”.

These typically include:

  • 30 per cent faster production cycles.
  • 1-2 per cent higher yield through the recovery of chips that would otherwise have been incorrectly rejected.
  • Up to 20 per cent fewer errors and more than 90 per cent less manual effort.

Furthermore, the SixSense platform is well-integrated with major inspection equipment vendors, collectively covering over 60 per cent of the market.

Also Read: South Korea’s semiconductor revolution: The startups behind the boom

The new funding round is set to fuel SixSense’s ambitious expansion plans.

The company intends to:

  • Expand its footprint into key chipmaking hubs across Malaysia, Taiwan, and the United States.
  • Forge deeper partnerships with more AI-first inspection equipment makers to deliver enhanced on-the-ground AI integration.
  • Invest significantly in next-generation research and development (R&D), transitioning from isolated inspection tools towards comprehensive line-level intelligence. This future development aims for multiple machines to communicate with each other through AI, optimising factory-wide decisions in real time.

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Gaming in SEA: Understanding the growing opportunity for SMEs and payment providers

The gaming ecosystem in Southeast Asia is evolving rapidly, not just in terms of player numbers but also in how gamers interact with digital goods and spend. Once considered a niche or youth-driven domain, gaming is now a sprawling digital economy. This presents a clear opportunity for small and medium enterprises (SMEs) and payments providers to tailor solutions to fit the preferences of an increasingly sophisticated user base.

“We’ve observed a significant shift in how gamers perceive and interact with digital goods,” said Ken Chee, Group CEO and Founder of G2G, a global marketplace for gaming assets. “What used to be a niche segment has become mainstream. Gamers today are more willing to spend on in-game assets, microtransactions, and account enhancements that personalise and optimise their gaming experience.”

Chee notes that this transformation is driven by multiple factors: the rise of competitive gaming, the gamification of social identity, and increasing professionalisation among digital traders. Importantly, this behavioural shift is not uniform across regions, and local context plays a critical role in how gamers spend and what they demand from platforms.

“Users in Southeast Asia (SEA) and the MENA region show a stronger preference for mobile-first interfaces and region-specific digital services,” Chee explained. “They also expect seamless and secure transactions, regardless of where they are in the world.”

Gamers demand fast, frictionless checkout processes—expectations that mirror their real-time gaming environments. Pooja Sanan, Head of Sales for Southeast Asia at PayPal, says, “Gaming has evolved into a fast-moving economy where seamless, secure payments are a critical part of the user experience.”

Also Read: From dollars to digital coins: Tariffs shake the financial world

The significance of this evolution is reflected in global trends. “In-game spending is up 12 per cent since Q4 2024. Gaming has become a high-frequency commerce category, and payments need to be instant, reliable, and invisible to the player,” Sanan noted.

This is particularly true for platforms such as G2G, where success depends on handling large volumes of low-value transactions with minimal delay. One failed payment or a slow checkout can disrupt gameplay and erode user trust.

An example of a product designed with such scenarios is PayPal’s Complete Payments platform (PPCP). It supports over 200 markets and enables real-time settlement, multi-currency payments, and advanced fraud protection—critical infrastructure for high-volume environments like gaming. Chee said, “Integrating PPCP has brought measurable improvements across user experience and operational efficiency.”

SMEs must meet gamers where they are

For SMEs exploring the gaming sector—whether by selling digital goods, game-related merchandise, or adjacent services—the imperative is clear: offer payments that feel local, fast, and secure. This is where payment providers can play a transformative role.

“In SEA, merchants face everything from fragmented payment preferences to evolving regulations,” said Sanan. “We meet businesses where they are—whether a startup launching with no-code tools or an enterprise integrating via API.”

This is not just about technical support, but also cultural and commercial adaptability. Localisation is essential. For G2G, multi-currency support and seamless integration helped avoid the need for separate technical configurations for each region. “With transparent fees and instant settlements, we’ve been able to accelerate fund flow and reinvest faster in growth initiatives,” Chee added.

Also Read: Singapore’s SME fintechs face growth hurdles amid restricted API access

As gamer expectations rise, so too must the sophistication of payment systems. Mobile-first, cross-platform behaviour is the norm, and platforms must offer embedded checkouts where users already spend their time—on social media and in-game environments.

“Gamers are increasingly mobile-first, with more than 84 per cent spending at least 30 minutes per day on social,” Sanan said. “That means checkout experiences must feel native to where users already are.”

The growth of the gaming industry in Southeast Asia signals a larger shift in digital behaviour—one that merges entertainment, commerce, and identity. For SMEs and payment providers alike, the opportunity lies in understanding and meeting gamers on their terms.

“Gaming is no longer just about playing. It’s a digital economy in its own right,” said Chee. “And those who can enable trust, speed, and adaptability will be best positioned to grow with it.”

Image Credit: Sean Do on Unsplash

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MetaComp finds 3-tool KYT setup reduces crypto compliance blind spots by over 99 per cent

A newly released study by MetaComp Research, the analytical arm of Singapore-based digital finance infrastructure firm MetaComp, has issued a decisive recommendation for regulated digital asset entities: deploy three Know-Your-Transaction (KYT) tools to strike the optimal balance between anti-money laundering/counter-financing of terrorism (AML/CFT) compliance and operational efficiency in cryptocurrency transactions.

The study, which analysed over 7,000 real transactions across the Ethereum and Tron blockchains, sheds light on growing concerns within the crypto compliance ecosystem, particularly around fragmented KYT systems, inconsistent risk scoring, and the lack of standardisation among blockchain monitoring providers.

Also Read: Laundering, layered: The strategy, psychology, and mistakes of crypto thieves

“No single blockchain screening tool can provide complete visibility into on-chain risks,” the report states, citing significant blind spots when institutions rely on a single or dual-tool setup.

One tool isn’t enough

MetaComp’s research finds that relying on only one or two KYT tools may result in up to 25 per cent of medium-high risk transactions being incorrectly marked clean. In contrast, a three-tool configuration reduces this “false clean rate” to just 0.10 per cent, closely approaching the accuracy of a four-tool system.

However, a four-tool setup comes at the cost of speed: screening times stretch up to 11 seconds, compared to 2 secondswith three tools—an operational liability for businesses requiring near real-time decisions.

Tron blockchain poses greater risk

In addition to benchmarking KYT performance, the report highlights stark differences between the two examined blockchains. Tron was shown to have a significantly higher risk profile:
Severe-risk transactions were 10x more frequent on Tron than Ethereum.
Over 20 per cent of Tron transactions were flagged as medium-high risk or above, compared to 8.61 per cent on Ethereum.

Implications for the region

These findings are poised to shape compliance strategies across Southeast Asia’s increasingly regulated crypto markets, where digital asset service providers must navigate stringent AML/CFT requirements under evolving frameworks. MetaComp’s proposed three-tool KYT methodology offers a scalable path forward for balancing regulatory scrutiny with operational agility.

Also Read: Crypto crime has a map: Where victims—and losses—are concentrated in 2025

MetaComp intends to build on this foundational study with continued research into tool harmonisation and real-world case testing, signalling a push toward industry-wide KYT standardisation.

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