Dear reader,

The recent breach at OpenAI, while superficial, underscores the increasing value of AI companies as prime targets for hackers.

Although the hack was limited to an employee discussion forum, it serves as a stark reminder of the sensitive nature of data AI firms handle. The significance of this breach is not in its immediate impact but in the potential vulnerabilities it exposes. AI companies like OpenAI possess vast amounts of valuable data, including high-quality training datasets, extensive user interaction logs, and sensitive customer information.

The training data, meticulously curated from various sources, is crucial for developing advanced models and is highly coveted by competitors and regulatory bodies alike.

Moreover, the user data generated through interactions with AI, such as ChatGPT, offers deep insights into user behavior, preferences, and needs, far surpassing traditional search data in value. This data is not only invaluable to developers but also to marketers, analysts, and consultants.

Lastly, the customer data used to fine-tune AI models represents another layer of critical information, often involving confidential internal databases.

The breach highlights the ongoing security challenges faced by AI companies and the necessity for robust protective measures. As these firms continue to grow and integrate deeper into various industries, their security practices must evolve to safeguard against increasingly sophisticated cyber threats.

Sainul,
Editor.

—-

NEWS

A hacker stole OpenAI secrets, raising fears that China could, too
A security breach at the maker of ChatGPT last year revealed internal discussions among researchers and other employees, but not the code behind OpenAI’s systems.

Delivery Hero flags potential EU antitrust fine, shares slide
The potential fine would be for “alleged anti-competitive agreement to share national markets, exchanges of commercially sensitive information and no-poach agreements”.

Investors chase wealthtech startups in India as affluent class grows
The high-net-worth and ultra-high-net-worth segments are booming in India; Only about 50-55% of India’s wealth management market is currently under professional management.

India’s CoinDCX acquires BitOasis in international expansion push
BitOasis’s team is joining CoinDCX the cryptocurrency exchange, with the original leadership continuing to manage the exchange, which offers trading in more than 60 tokens; BitOasis will also retain its branding.

Clime Capital invests US$10M in Vietnamese rooftop solar startup Nami
Nami provides solutions, such as battery storage and energy efficiency measures, to commercial and industrial clients in Vietnam; It enables businesses to access lower-cost and sustainable power without upfront or ongoing expenses.

Gobi-backed Pakistani social e-commerce startup DealCart raises US$3M
The investors include Shorooq Partners, Sturgeon Capital, 500 Global, and Evolution VC; DealCart will use the capital to expand its reach and provide affordable essential goods to Pakistan’s low- and middle-income consumers.

Mylo, BCRemit, PAMMÉ win ARISE Plus accelerator programme in Philippines
ARISE Plus Ye! Boost Accelerator is a 14-week programme providing internationalisation support to youth-led startups; It’s funded by the European Union and led by the International Trade Centre in partnership with the DTI-CIG and QBO Innovation.

Otoklix to provide aftersales support to VinFast customers in Indonesia
VinFast, which entered Indonesia earlier this year, plans to invest US$1.2B to build a local assembly plant with a capacity of 60K cars per year; Otoklix supports independent workshops servicing gas-powered vehicles.

Taiwan’s WhatsApp conversational sales platform Cooby closes US$1.75M round
The investors are Shilling VC, Surge, and Pear VC; Cooby enables teams to communicate at scale through an organised WhatsApp inbox and claims to have served over 600 customers.

SAFVR bags funding from Antler to create safer work environment using AI, VR
It offers mobile gamified training and advanced VR hazard simulations to engage employees and boost safety protocol retention; It offers immersive training modules to enhance knowledge retention and practical skills.

FEATURES

OpenAI breach is a reminder that AI companies are treasure troves for hackers
No security breach should really be treated as trivial, and eavesdropping on internal OpenAI development talk certainly has its value; But it’s far from a hacker getting access to internal systems, models in progress, secret roadmaps, and so on.

FROM THE CONTRIBUTORS

M&A in Asia: A strategic roadmap for venture builders
This insider’s guide aims to provide a comprehensive overview of how to identify promising M&A spots in Asia, leveraging both strategic insights and practical tips to navigate this complex landscape.

A head start in business: How Westbourne’s Future Leaders Lab empowers students
Westbourne’s Singapore-based Future Leaders Lab fast-tracks high-achieving students into STEM business leadership via an MBA-style programme.

FROM THE ARCHIVES

Web3: idealistic vision or inevitable future? Insights from expert Chris Sirise
Saison Capital’s Chris Sirise shares insights on Web3’s potential impact in SEA, real-life applications, and the challenges it faces.

No achievement is too small, no individual is too junior to be highlighted: Zelia Leong of PraisePal
If you have financial responsibilities, it’s best to assess the company upfront and ensure your role will be essential in their upcoming business plans, says the PraisePal Co-Founder.

‘It will take another 5-10 years to rebuild the Myanmarese startup ecosystem’
Myanmar-based startups and founders have migrated to countries, such as Thailand either to relocate their businesses or join the corporate life.

The mastermind behind the Gojek app is out to help others succeed
Former Go-Jek VP of Product Alamanda Shantika opens up about her new projects, leadership style, and a certain street kid named Rio.

Mastering the art of fundraising: Winning strategies to engage investors
The VC financing landscape is constantly evolving so new businesses must know how to successfully approach investors while fundraising.

Ilham Habibie on what it takes to bring the Indonesian startup ecosystem to the next level
According to Ilham Habibie, the country has the fundamentals to become a strong startup ecosystem. But there is a need for more collaboration.

Industry veteran Marc Mercuri on how blockchain revolutionises gaming for players, creators
However, Mercuri does not see blockchain gaming as a replacement or competitor to the existing AAA titles.

Gen Z says no to climbing corporate ladders: What does it mean for SG’s startup ecosystem?
Recent turbulence has Gen Z searching for more meaning and purpose to the work they do, and a path of true authorship, not only ownership.

Indonesia’s startup ecosystem today is no longer recognisable –and that is a great thing
There seems to be an acknowledgement of the important role that the local startup ecosystem can play in building the economy.

Finding the right co-founder involves having tough conversations–and a great sense of humour
While there is always an option to go solo, there are also many good reasons to for you to have a co-founder.

Edutech in SEA is still “far behind compared to North America” – but there is some hope
In this interview, D2L Regional Director Asia Nick Hutton explains the challenges faced in edutech adoption in the Southeast Asian region.

‘Collaboration is essential in promoting responsible consumption’
According to Stephanie Dickson, founder of Green Is The New Black, responsible consumption encompasses key factors that prioritise the well-being of people and the planet.

Autistic founders, advocates share their vision of a more inclusive workplace
With its openness to innovation and unconventional company culture, the startup ecosystem can be a welcoming place for autistic professionals.

The art of letting go and how it makes you an even better entrepreneur
As an entrepreneur, are we agile enough to let go of our “grit” and change direction when the twists and turns call for it?

Why finding your co-founder is a lot like meeting your soulmate
What I learned about finding co-founders from my experiences at MaGIC, Entrepreneur First, and Singapore-Deep Tech Alliance.

Shedding light on Singapore’s software development landscape: How collaboration drives innovation
Another detail that the report revealed is the programming language dominates Singapore’s software development community.

Angel investor Mike Flache shares his tips to begin investing in startups
Mike Flache considers himself as an investor in people, instead of tech. This is how he approaches angel investing.

Unlikely mentors: What kids can teach you about entrepreneurship
I distilled some key habits and characteristics that business owners can develop to thrive in a chaotic and competitive business world.

The post Ecosystem Roundup: AI firms face growing security threats | Delivery Hero flags potential EU antitrust fine appeared first on e27.

Choco Up, a revenue-based financing (RBF) and growth platform, recently announced that it has partnered with Set Sail AI, an intelligent contact centre solution provider, to promote the adoption of generative AI solutions among businesses and merchants.

The collaboration will allow Set Sail AI’s customers to access Choco Up’s RBF platform, facilitating the expansion of sales, marketing, and distribution channels for Generative AI technology in Hong Kong and beyond. This partnership aims to unify customer care and lead generation, drive sales, and provide a more holistic customer experience.

Generative AI has the potential to significantly boost global economic output, enhance productivity, and improve customer service by transforming various sectors. Studies suggest that the technology could reduce human-serviced contact volumes by up to 50 per cent and increase productivity in marketing functions by five to 15 per cent.

Set Sail AI’s premier product, the SaaS Gen AI Agents Building Platform, was created to help businesses create customised AI agents for various functions. It manages around 120 million inquiries annually and significantly reduces customer wait times.

Choco Up, with a history of providing swift and flexible financing solutions, has financed over US$1 billion in gross merchandise value in Asia Pacific, helping clients increase revenue, launch new products, expand user bases, and achieve successful acquisitions.

Also Read: Ecosystem Roundup: AI firms face growing security threats | Delivery Hero flags potential EU antitrust fine

In an email interview, Choco Up Co-founder and CEO Percy Hung explained to e27 how the partnership came to be and how they aim to help businesses embrace Generative AI.

The following is an edited excerpt of the conversation.

Can you tell us about how the partnership came to be?

We met through mutual business partners and quickly realised a shared vision: helping businesses grow. Set Sail AI has a robust client base seeking to enhance customer experience through AI solutions, but many lack the necessary capital to invest in these solutions. Our discussions revealed that combining our expertise could bridge this gap, enabling clients to leverage advanced AI without financial constraints.

What specific problem does the partnership aim to solve, as the two companies seem to serve two different aspects of business (financing and customer relations)?

This partnership aims to streamline the adoption of generative AI solutions for businesses and merchants. Choco Up’s mission is to fuel business growth, while Set Sail AI provides tools to enhance customer experience and drive sales through AI. By offering flexible payment terms, we enable more clients to realise their potential.

For instance, Choco Up clients expanding into new markets can use Set Sail AI’s tools to quickly launch chatbots in local languages, improving customer interaction and service. Conversely, Set Sail AI will benefit from faster payments through the B2B Buy Now Pay Later model, allowing them to reinvest funds into R&D and further advance their AI solutions.

What is the unique proposition that you offer to your users with this partnership? How does AI play a role in that?

Our unique proposition combines Set Sail AI’s advanced contact centre solutions with Choco Up’s flexible financing, enabling the seamless adoption of generative AI technologies. This partnership leverages AI’s potential to enhance productivity, personalise marketing, and improve customer service, which is estimated to boost global economic output by up to US$4.4 trillion annually.

Also Read: SAFVR bags funding from Antler to create safer work environment using AI, VR

Set Sail AI provides tools that automate tasks, optimise interactions, and reduce wait times, allowing businesses to create customised AI agents for various functions. Choco Up offers swift, flexible financing that supports growth without requiring equity, enabling investment in technologies like Set Sail AI’s solutions.

For example, AsiaPay (PayDollar) used Set Sail AI’s chatbot to increase sales by 70 per cent for more than 500 merchants within 12 months, allowing merchants to comprehensively manage customers from various channels more effectively with AI.

This partnership helps businesses improve customer interactions and service quality while ensuring they have the necessary resources. Together, we enable businesses to achieve efficiency gains, reduce contact volumes, and focus on growth and innovation.

What is your target for this partnership? How many users do you aim for in the first year? Is there any specific profile of users that you are targeting?

Our goal is to engage businesses across various industries that can benefit from generative AI solutions. In the first year, we aim to onboard users primarily from sectors such as e-commerce, retail, and F&B, where the impact of AI-driven enhancements is most profound. We are targeting companies looking to scale, improve customer engagement, and streamline operations.

Also Read: Google: AI products, solutions to contribute US$146B to Singapore’s economy by 2030

What other areas would you like to explore in the future through this partnership? What other plans do you have this year for this partnership?

In the future, we aim to explore additional industries where generative AI and flexible financing can drive significant value. These include sectors such as aviation, real estate and healthcare, where AI can enhance efficiency, personalise services, and streamline operations.

By leveraging Set Sail AI’s advanced solutions and Choco Up’s financing capabilities, we can facilitate the adoption of AI technologies in these sectors, helping businesses to innovate and grow.

—

Image Credit: Choco Up, Set Sail AI

The post Choco Up, Set Sail AI forge partnership to help businesses grow through Gen AI adoption appeared first on e27.

A new blockchain exchange for impact investors has been launched in Singapore.

The Net Zero-X exchange aims to tackle the significant financing gap impeding the global transition to a net zero future.

Open to institutional and accredited investors, the exchange enables sustainability-minded investors to identify and support vetted green, clean, and climate tech projects.

Also Read: Asia’s climate tech: Communicating solutions and avoiding greenwashing

Net Zero-X has been launched with its flagship project: the world’s first ‘Drive-In Waste Disposal & Energy Recovery Hub’. This UK-based initiative aims to redirect waste from conventional landfill sites to a state-of-the-art facility, reducing carbon emissions and environmental impact while maximising resource recovery.

It has also identified 60 immediate sustainability projects seeking investment. The platform aims to onboard 500 projects within the next five years, facilitating the deployment of over US$10 billion in impact capital over the next decade.

Net Zero-X’s platform is built on technology by the Singaporean blockchain company Chintai. Chintai can offer full transparency and secure the exchange’s investments as it can provide immutable and verifiable records of all transactions.

To minimise the worst impact of climate change, world leaders signed the 2015 UN’s binding Paris Agreement to reduce emissions significantly in the decades to come, reaching net zero emissions by 2050.

Also Read: Driving innovation for a sustainable future: Top climate tech investments of H1 2024

However, the de-carbonisation of the world economy requires tremendous financial investments. A study by Allen & Overy and the Climate Policy Initiative estimates that US$6.2 trillion in climate finance is needed annually from now until 2030, after which it will increase to US$7.3 trillion, totalling nearly US$200 trillion to reach the net zero target.

The cost exceeds what the public sector can finance; the net zero emissions goal requires collaboration between governments and businesses. Today, there remains a staggering US$4 trillion annual global financing gap, which the Net Zero-X exchange platform helps tackle.

—

Image Credit: 123RF.

The post Singapore gets Net Zero-X exchange for investors to invest in climate tech projects appeared first on e27.

Although the term Generative AI (Gen AI) has been around since the 1960s, it’s only over the past year that the application has truly taken hold in the mainstream consciousness. From business use to our personal lives, there are countless benefits that Gen AI can bring.

As Singapore embraces its Gen AI Journey, the market is expected to grow at 46 per cent year on year (CAGR), resulting in a market size of US$5.09 billion by 2030. However, for businesses to get the necessary impact out of their investment and ensure a positive experience for all, Gen AI needs to be adopted in the right way.

There is no shortage of examples and applications where Gen AI can really make a difference. Organisations can automate faster and speed up process discovery and development by enabling users to write prompts to create processes, automation and other components.

Gen AI can facilitate improved decision-making by making it easier to access and analyse data. Complexity of automations can be reduced by seamlessly integrating more complex and nuanced use cases into existing processes, with minimal disruption or impact on quality.

While Singapore has made an investment of up to US$500 million to secure high-performance computing resources for AI innovation and capability building, behind the success, there must always be robust data governance, security and accountability.

Also Read: 5 ways generative AI is transforming the payments ecosystem

Any business adopting Gen AI for whatever process needs to ensure that trust and transparency come first and are ‘by design’, not just an afterthought. This is where the fusion of intelligent automation (IA) and Gen AI make for a winning combination.

Automating responsibly  

Gen AI needs to be accountable and auditable. It needs to be instructed and learn what information it can retrieve. Combining it with IA serves as the linchpin of effective data governance, enhancing the accuracy, security, and accountability of data throughout its lifecycle.

Put simply, by wrapping Gen AI with IA businesses have greater control of data and automated workflows, managing how it is processed, secured, from unauthorised changes, and stored. It is this ‘process wrapper’ concept that will allow organisations to deploy Gen AI effectively and responsibly.

The adoption and transparency of Gen AI are imperative now, as innovation continues to grow at pace. The past 12 months have seen significant innovations in language learning models (LLMs) and Gen AI to simplify automation that tackles complex and hard-to-automate processes. According to IDC, this includes large enterprises relying on AI-infused processes to enhance asset efficiency, streamline supply chains, and improve customer satisfaction.

Five years ago, AI tools and models were fairly limited and had narrow applications, but now with off-the-shelf learning models and applications requiring low skills, the only barrier to entry limiting Gen AI adoption is data quality.

Also Read: All hands on deck: How Iron Sail strengthens blockchain gaming ecosystem through collaboration

With 80 per cent of tech leaders planning to adopt Gen AI within three years (Gartner), organisations across all sectors are chomping at the bit to utilise these exciting new technologies within their business processes. Maintaining data security and compliance is imperative.

Future-proofing Gen AI investment

Whether you’re a manufacturing powerhouse or a global financial institution, summarising vast quantities of unstructured data is a challenge for the C-suite and revenue teams alike. Forrester’s AI Pulse Survey highlights how, as Gen AI adds pressure on systems, measurement becomes unpredictable, complicating insight delivery.

Managing security, privacy, and consent adds another layer of complexity. Machine learning’s random nature demands live data sets for measurement and monitoring, lacking a standard linking Gen AI models to source data, increasing uncertainty and risk, the single biggest barrier to the adoption of Gen AI by B2B enterprises.

Before implementing any sort of new automation technology, organisations must establish use cases unique to their business and undertake risk management assessments to avoid potential noncompliance, data breaches and other serious issues.

With the right guardrails in place via a process wrapper like IA to control data input, output and training models, Gen AI can transform how a business automates its processes. By combining Gen AI with IA as the process wrapper, organisations can ensure the security of their data management and transparency.

With a surge of offerings from vendors, customers need to sift through the hype and realise actual business value. Cloud, data, AI, and automation software will continue to push boundaries and overlap with others to create unique applications.

The combination of IA and Gen AI represents a powerful synergy by facilitating effective data governance and enhancing the accuracy, security and accountability of data throughout its lifecycle. Leaders can now be confident in harnessing the full potential of Gen AI to drive their business forward.

As organisations continue to invest in these technologies and a digital workforce, they are not only future-proofing their data management but also ensuring that they can make well-informed decisions while maintaining trust and transparency in their operations by using IA as the process wrapper.

—

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 Pro

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Mergers and acquisitions (M&A) have long been a key growth strategy for businesses looking to expand their market reach, diversify their product offerings, or gain competitive advantages. With its diverse and rapidly evolving economies, Asia presents a particularly attractive landscape for such strategic moves.

However, navigating this complex terrain requires deep insight and understanding of the regional nuances, market dynamics, and cultural intricacies.

This insider’s guide aims to provide a comprehensive overview of how to identify promising M&A spots in Asia, leveraging both strategic insights and practical tips to navigate this complex landscape.

Understanding the Asian M&A Landscape

The M&A landscape in Asia is characterised by its diversity, encompassing mature markets like Japan and South Korea, rapidly developing economies like China and India, and burgeoning markets in Southeast Asia. Each region offers unique opportunities and challenges, necessitating a tailored approach for effective deal-making.

Understanding the macroeconomic environment, regulatory frameworks, and cultural contexts is crucial for identifying potential M&A targets.

Key economic indicators

Economic indicators such as GDP growth rates, foreign direct investment (FDI) inflows, and sectoral performance can provide valuable insights. For instance, China and India continue to show robust GDP growth, driven by large domestic markets and increasing technological adoption. Southeast Asian countries like Vietnam and Indonesia are also emerging as attractive destinations due to their young populations and rapid urbanization.

Regulatory environment

Each country in Asia has its own regulatory framework governing M&A activities. Familiarity with these regulations is essential for a smooth transaction process. For example, China’s strict regulatory environment requires thorough due diligence, whereas Singapore offers a more transparent and business-friendly regulatory framework. Engaging local legal and financial experts can help navigate these complexities effectively.

Also Read: What is next for Indonesian e-commerce scene after GoTo, TikTok Indonesia merger?

Sector-specific opportunities

Different sectors present varied opportunities across Asian markets. Key sectors to watch include technology, healthcare, consumer goods, and financial services. Each of these sectors has its own growth drivers and market dynamics.

Key markets for M&A in Asia

China: The giant awakes

• Economic growth: Despite recent slowdowns, China’s economy remains one of the largest and fastest-growing globally. The government’s push towards technological self-reliance and the “Made in China 2025” initiative creates opportunities in high-tech industries.
• Sector focus: Technology, consumer goods, healthcare, and renewable energy are key sectors. The ongoing digital transformation and rising consumer demand drive M&A activities in these areas.
• Regulatory environment: Navigating China’s regulatory landscape can be complex. Understanding the local legal requirements and building relationships with regulatory bodies is crucial for successful M&A deals.
• Notable M&A: Alibaba’s acquisition of Lazada, Tencent’s stake in Supercell.

India: The subcontinental surge

• Economic potential: India’s economy is set for robust growth, fueled by a young population and increasing urbanisation. Government initiatives like “Digital India” and “Make in India” are attracting foreign investments.
• Sector focus: IT services, pharmaceuticals, e-commerce, and renewable energy are booming sectors. India’s IT industry, in particular, offers vast opportunities for consolidation.
• Regulatory considerations: The regulatory environment in India is improving, but challenges remain. Understanding local business practices and compliance requirements is essential.
• Notable M&A: SoftBank’s investment in Paytm, Byju’s acquisition of Aakash Educational Services.

Southeast Asia: The emerging powerhouse

• Economic integration: The ASEAN Economic Community (AEC) aims to create a single market, enhancing the region’s attractiveness for M&A. Countries like Vietnam, Indonesia, and the Philippines offer significant growth potential.
• Sector focus: Manufacturing, fintech, real estate, and consumer goods are thriving sectors. The region’s young, tech-savvy population drives demand for digital services.
• Regulatory diversity: Each country in Southeast Asia has its own regulatory framework. Local expertise is invaluable in navigating these varied legal landscapes.
• Notable M&A: Grab’s acquisition of Uber’s Southeast Asia business, Vingroup’s acquisition of General Motors’ Vietnam operations.

Japan and South Korea: The mature markets

• Economic stability: Japan and South Korea offer stable, mature markets with advanced infrastructures. These countries are leaders in technology, automotive, and electronics industries.
• Sector focus: High-tech industries, robotics, AI, and biotechnology are key areas for M&A. Japan’s ageing population also presents opportunities in healthcare and elder care.
• Regulatory environment: Both countries have well-established regulatory frameworks. Partnering with local firms can facilitate smoother M&A processes.
• Notable M&A: SK Hynix’s acquisition of Intel’s NAND memory business, Hitachi’s acquisition of ABB’s Power Grids business

Identifying M&A opportunities

To identify M&A opportunities in Asia, venture builders should focus on several key factors:

Market trends and growth potential

• Industry analysis: Evaluate the growth potential of various industries. Look for sectors with high growth rates, technological advancements, and rising consumer demand.
• Market entry strategies: Determine whether acquiring an existing company or forming a joint venture is the best approach for market entry. Consider the benefits of local expertise and established networks.

Also Read: GoTo completes merger with TikTok Shop Indonesia

Regulatory and legal landscape

• Compliance requirements: Understand the regulatory requirements for M&A in each country. This includes foreign investment restrictions, antitrust laws, and tax implications.
• Due diligence: Conduct thorough due diligence to identify potential legal and financial risks. This includes assessing the target company’s compliance with local regulations and its financial health.

Cultural considerations

• Cultural fit: Ensure that the target company aligns with your organisational culture and values. This can facilitate smoother integration and improve the chances of post-merger success.
• Local expertise: Engage local advisors and partners who understand the cultural nuances and business practices of the region. This can help navigate potential challenges and build stronger relationships.

Strategic approches to M&A in Asia

Leveraging technology and innovation

• Digital transformation: Invest in companies that are leading the digital transformation in their respective industries. This can provide a competitive edge and open up new revenue streams.
• Innovation hubs: Focus on regions with strong innovation ecosystems, such as China’s tech hubs (Shenzhen, Beijing) and India’s IT cities (Bangalore, Hyderabad). These areas attract top talent and offer access to cutting-edge technologies.

Fostering strategic partnerships

• Joint ventures: Form joint ventures with local companies to gain market insights and share risks. This approach can be particularly effective in navigating complex regulatory environments.
• Collaborations: Collaborate with local universities, research institutions, and startups to drive innovation and tap into new technologies.

Focus on sustainability and ESG

• Sustainable investments: Prioritise investments in companies that align with environmental, social, and governance (ESG) criteria. Sustainable investments are increasingly important for long-term success.
• Green technologies: Invest in green technologies and renewable energy sectors. Asia is making significant strides in this area, driven by government initiatives and rising consumer awareness.

Final thoughts

Identifying M&A spots in Asia requires a deep understanding of the region’s diverse economic landscapes, regulatory environments, and sector-specific opportunities. By leveraging strategic insights, conducting thorough due diligence, and fostering cross-cultural integration, companies can successfully navigate the complexities of the Asian market and capitalise on the abundant M&A opportunities.

As a venture builder with extensive experience in Asia, I have seen firsthand the transformative impact of successful M&A transactions. By adopting a strategic and informed approach, businesses can unlock significant growth potential and achieve long-term success in this dynamic region. Whether you are looking to enter new markets, acquire innovative technologies, or expand your product offerings, Asia offers a wealth of opportunities for forward-thinking companies.

In the ever-evolving landscape of M&A, staying informed, agile, and culturally aware is key to identifying and capitalising on the most promising M&A spots in Asia.

—

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 Pro

The post M&A in Asia: A strategic roadmap for venture builders appeared first on e27.

Otoklix, an O2O digital solution for automotive aftermarket services, has partnered with Vietnamese electric vehicle (EV) manufacturer VinFast to serve as the latter’s authorised service provider for customers in Indonesia.

VinFast, which entered Indonesia earlier this year, plans to invest US$1.2 billion to build a local assembly plant in the Jakarta suburb of Depok with a capacity of 60,000 cars per year.

Also Read: YouTube co-founder, Alpha JWC, AC Ventures back Otoklix’s US$10M funding round

Launched in 2019, Otoklix supports independent workshops servicing gas-powered vehicles. Its solutions serve both sides of the market by simplifying the process of booking vehicle maintenance services with a customer-facing application and equipping independent car workshops with visibility, business software solutions and procurement savings.

Otoklix operates its signature shops across major Indonesian cities, empowering “millions of workshops”. Currently, the partnership with VinFast is limited to these proprietary outlets.

In Q3 2023, the AC Ventures-backed company claims to have doubled its topline revenue year-over-year, alongside notable improvements in unit economics, with profitability in sight.

“Over the next ten years, as the EV market expands, we expect to see a rise in demand for car parts that are as good as original but more affordable. This includes mechanical parts and components of batteries, like individual cells, but not whole batteries. We plan to partner with companies that make these parts instead of making them ourselves. This will enable us to supply independent workshops with components, offering EV owners more affordable and competitive options beyond just original parts,” said Otoklix co-founder and CEO Martin Reyhan Suryohusodo.

According to him, specialised services, particularly those related to battery maintenance and software management, will become increasingly in demand as vehicle technology evolves in Indonesia.

“Battery swapping stations require significant capital investment in infrastructure. Currently, NIO in China is a notable example where heavy investments have been made in this technology. Tesla initially considered this approach but abandoned it due to the high costs involved. A critical issue for global investors interested in Indonesia’s EV market is regulatory clarity concerning the commercial sale of electricity. Currently, all commercial electricity sales must go through PLN, Indonesia’s state electricity company, which could pose a challenge for any third-party charging station provider,” Suryohusodo added.

Otoklix recently launched an academy dedicated to training mechanics in the intricacies of EV servicing. The initiative addresses the urgent need for a workforce skilled in the specific requirements of EVs, focusing on safety and technical proficiency.

Also Read: VinFast to soon begin construction of US$500M EV factory in India

“In our academy, we teach that servicing EVs isn’t just about the mechanical aspects—like brakes or tyres, which are similar to those on gas-powered cars—but crucially about the software and electrical components, especially the battery. Unlike traditional vehicles, you don’t replace the entire battery on an EV. When a cell fails, you replace just that cell, not the whole battery. Ensuring a tight seal during this process is critical to prevent damage from moisture or dirt. This requires not just technical skills but also proper safety practices. Very importantly, mechanics must wear insulated gloves and use specific tools to avoid electrical hazards, a fundamental shift from conventional car repair.”

In 2021, Otoklix secured US$10 million in a financing round from Alpha JWC Ventures and AC Ventures. Sequoia Capital India’s Surge, Astra International’s former CEO Prijono Sugiarto, YouTube co-founder Steve Chen, and Google executives in XA Network also participated.

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Mylo Speech Buddy, BCRemit, and PAMMÉ have been announced as the cohort 3 winners of the ARISE Plus Ye! Boost Accelerator Program at its recently concluded Demo Day in Taguig City in the Philippines.

Launched in 2021, ARISE Plus Ye! Boost Accelerator is a 14-week programme providing internationalisation support to youth-led startups. It is funded by the European Union (EU) and led by the International Trade Centre (ITC) in partnership with the Department of Trade and Industry – Competitiveness Innovation Group (DTI-CIG) and QBO Innovation.

Also Read: QBO partners with e27 for Startup Venture Fund Pitch

Mylo Speech Buddy, a speech development app for children with autism and speech delays, won first place and secured a US$2,500 pitch prize.

BCRemit, a London-based fintech company that empowers Overseas Filipino Workers (OFWs) with efficient money transfers, was awarded second place and received a US$1,500 grant.

PAMMÉ, a fashion brand that crafts sustainable accessories from recycled plastic made by women deprived of liberty, came third with a US$1,000 pitch prize.

In addition to the cash prizes, the programme will also provide the winners with opportunities to build stronger networks with EU partners and investors to support their global market expansion.

Other participants of the ARISE Plus Ye! Boost Accelerator Program Cohort 3 are:

Capilli: a social enterprise creating eco-friendly products from upcycled human hair waste

Hibla Philippines: a social enterprise preserving Philippine weaving traditions

IndieCo: an SEO company blending human creativity with AI for business content

Nama Urban Farms: an urban agriculture startup cultivating nutritious produce

Nutricoach Inc.: a platform aiding dietitians in building and scaling nutrition clinics

Also Read: How Mylo Speech enhances speech therapy accessibility for autistic children in the Philippines

Prezenter: a company that simplifies presentations in under 10 seconds, helping teachers put their lessons on Smart TVs

Reelist8: a proptech x Shoppertainment marketplace for real estate transactions

REPAMANA: a circular fashion brand repurposing hotel textiles into new garments

TERPCAP Inc.: an accessibility solutions provider for inclusive workplaces.

Separately, the DTI, in partnership with the EU and ITC, has unveiled a comprehensive mapping report to identify and leverage growth opportunities for young Filipino entrepreneurs and ecosystem actors, such as Technology Business Incubators (TBIs).

The report titled ‘Entrepreneurship Ecosystem in the Philippines – Network Analysis and Mapping of Institutions Supporting Youth Entrepreneurship’ aims to foster an inclusive environment where young entrepreneurs can thrive, innovate, and contribute to sustained economic development.

The report’s recommendations include creating a TBI info-sharing network to streamline access to relevant updates and content, establishing a country guide to support services for entrepreneurs, and expanding support beyond the tech sector.

Also Read: The rising tide: The Philippines’ thriving startup ecosystem and strong support

The Philippine startup ecosystem has shown continuous growth despite the challenges posed by the COVID-19 pandemic. In 2021, the country ranked 52nd globally, with thriving industries including fintech (19 per cent), e-commerce (7 per cent), education and healthcare (5.2 per cent), and agriculture (3.1 per cent).

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DealCart, a social e-commerce platform enabling consumers to access essential goods in Pakistan, has raised US$3 million in a seed funding round led by Shorooq Partners and Sturgeon Capital.

500 Global, Evolution VC, Rayn Capital, and Khyber Venture Partners also joined the round. The venture earlier raised funding from Fatima Gobi Ventures, a joint venture between Pakistan-based Fatima Group and Southeast Asia-focused Gobi Partners.

Also Read: In SEA’s healthcare space, occasional regulatory hurdles, legacy infra are hard to penetrate: Gobi Chief

This capital infusion will support DealCart’s mission to expand its reach and provide affordable essential goods to Pakistan’s low- and middle-income consumers. “Our goal is to make everyday necessities more affordable and accessible, and this funding will help us get closer to that vision,” co-founders Haider Raza and Ammar Naveed said in a joint statement:

In 2023, Pakistan’s inflation rate soared past 30 per cent, putting significant financial strain on households. DealCart aims to ease the financial burden and offer low-cost goods by sourcing products directly from manufacturers and collaborating with locally manufactured brands.

DealCart targets consumers spending about 50 to 60 per cent of their income on groceries and essentials to enable them to save more and invest in a better future. The company also targets a digitally sophisticated younger population that prefers online retail spaces.

Also Read: The evolution and regulation of social commerce in Indonesia: The TikTok Shop ban

“DealCart has identified a market gap and is developing a distinctive approach to social commerce and providing affordable essentials to most consumers, an approach that aligns with our mission to support market-leading disruptors,” said Omer Zabit, principal at Shorooq Partners. “We believe this investment will enable DealCart to scale rapidly and significantly impact the lives of millions in Pakistan.”

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Image Credit: DealCart.

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The current funding squeeze in the private capital markets has closed many startups. In the recent Pitchbook survey, about 3,200 venture-backed businesses went bust last year. With Venture Capital Firms taking a more cautious stance on parting with their “dry powder,” more and more startups are experiencing a cash crunch, unable to secure additional funding to finance their operation as they pursue product-market fit.

This is particularly tricky when a startup is in the “chasm,” the market purgatory where its product is yet to break into the early majority customer base. More than ever, a startup must be diligent in testing and experimentation while providing consistent operational support to its customers at this stage.

Hiring for critical roles is integral at this stage, and marketing spending is essential. Holding off to preserve cash at this stage could put the startup in the zombie zone, a stagnant state that prevents immediate collapse and hinders meaningful growth. 

I call such a stage in a startup’s life death by a thousand paper cuts.

Also Read: Don’t drink the Kool-Aid: Remembering why we build

Though VC firms are using dry powder for bridge financing on their active portfolios, there is no guarantee that your existing investors will write you a check so you can live another day. 

However, keeping an open and healthy relationship with your current investors remains essential. Continuously improving the efficiency of your operations while keeping investors abreast of your situation is even better.  

So, when your runway cannot support your scale during a funding crunch, these five points can help you avoid death by a thousand paper cuts.

Keep your books clean

When the runway is short, running a tight ship on your cash flow is a must. It is easier to find leaks when you know where to look, and having clean and timely financial records can help. Since setting up a fully functioning finance department is expensive, you can consider outsourcing it to service companies with operational knowledge of your industry. If you still need one, a fractional CFO can provide value in scenario planning, financial modelling, and cash flow management.

Adopt the Kanban method when working on priorities across your organisations

Set a limit of work-in-progress items at any given time to avoid stretching finite resources. In his book The Lean Startup, Eric Ries recommended that no more than three items be at any stage at any given time. Limiting the priorities at any given time will ensure that resources are allocated efficiently on high-priority tasks and train the organizations to separate the “need to be done” versus the “nice to be done”.

Focus your efforts and attention on your identified beachhead market

Running after different customer personas can stretch your cash flow thin and drain your war chest inefficiently. The more targeted your customer is, the more equipped you are to establish coordinated efforts across your departments. Refining product-market fit and generating revenue cost-effectively with limited resources is much easier if you are not chasing multiple buyer personas.

Trim the fat on your overhead

The Friday mixer, where only the same people keep showing up, could be skipped. Avoid multi-year or annual contracts on apps and tools that are not integral to your operations. Also, the savings in going long-term versus monthly payments are moot if you cease to exist in a year. Taking proactive measures toward efficient capital allocation can message your investors of fiscal discipline.

Outsource “certainties” so your core team can focus on managing “risks”

A startup’s challenges as it grows are either certainties or risks. Risky initiatives are often iterative and require a certain degree of commitment and foresight that only your core team can execute. On the other hand, certainties are often procedural and repetitive tasks that are easier to delegate to the right outsourcing partner.

Also Read: 3 things I have learned about the SEA startup ecosystem in the last 8 years

Understanding which of your day-to-day operations are certainties would allow you to tap reputable service providers with the organizational capacity to monitor and train their people to deliver the agreed KPIs for you. Data extraction, Labeling, bookkeeping, Data Analytics, HR Admin, and Customer Support are some roles your startup can easily outsource. 

A short runway during a funding squeeze is no small feat to manage. However, skirting around the issue of a cash crunch could do a startup more harm than good, mainly when follow-on funding rounds are more challenging to close. Putting all your bets on a lifeline from investors without changing how you carry out your operations is risky.

In the best scenario, you only have to deal with dilution and a downround. In the worst case, the lifeline may not arrive, and you have to close the shop. Staying ahead and on top of the crunch can allow you and your team to set priorities on focused, interconnected wins before your startup reaches an irreversible position. 

There is, however, a silver lining here. The current fundraising environment in the private capital markets would further separate the winners from the losers more clearly than the bull run we experienced between 2020 and 2022. Startup founders who can navigate this current funding squeeze will have an advantage in driving their business forward once the storm subsides. The ones who don’t could either fail big or die a little every day.  

Remember, you do not get bonus points on how close you are to getting product market fit if you run out of money on your way to getting there.

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Westbourne College Sydney, a new STEM-centric high school for academically elite students seeking pathways to the best universities in Australia and around the world, is always on the lookout for students’ experiences in the Business/STEM and leadership space.

An MBA-style experience for high schoolers

All of these things coalesced in the involvement of 14 of our students in the Westbourne Future Leaders Lab at the Singapore college campus from June 24-28. Having spent the week in Singapore with Westbourne students and seeing it all firsthand, it is no doubt an opportunity like no other – an invaluable experience for high school students to obtain a genuine MBA-styled education adapted appropriately for their level of experience while challenging them to learn business at the next level.

Westbourne Sydney students joined students from our sister schools in the UK and Singapore from our Westbourne International network to learn from INSEAD Professor Adrian Johnson and other industry professionals. This week-long workshop covered many of the areas one would expect to see in an MBA, and the students were able to use some of the latest AI tools to sharpen their business, communication and strategic skills.

The course revolved around keynote presentations on areas such as communication, creativity, negotiation, use of AI, start-up business planning, strategic analysis of business viability, financial planning and the roles of key people in imagining, planning, launching and ensuring the sustainability of a business.

Case studies on how successful businesses started allowed students to strategically apply this information and, in groups, brainstorm their own business ideas, which were then analysed, challenged and ultimately distilled down to one business venture per group.

Even in the earliest stages, it was clear that all of these businesses were not only achievable but would have a unique place in the business sector and could easily attract financial backing. Most business ideas involve sophisticated, cutting-edge technology and are not listed in detail here because the ideas are so good that they could easily be snapped up by others!

Students gradually devised and revealed aspects of their business operation and used Johnson’s experience and expertise as an academic at INSEAD to continually refine and enhance their business proposals. It is worth noting that INSEAD is ranked 2nd  in the world business school rankings and is determined to regain the number 1 spot previously held.

Also of note, Johnson is no theoretical academic, he has started and grown a highly successful business of his own and has extensive networks around the world. Students at the Future Leaders Lab gained incredible insights and connections that would normally be only accessed by MBA students with at least a decade of experience in the business world.

One of the most compelling sessions explored the students’ negotiation skills, with students engaging with an AI tool that saw them negotiate a contract with a fictitious Hollywood star. It was impressive to see students take on characters and force themselves to adapt their negotiation style to suit the different characters and the demands of the situation, respectively.

The negotiations were complex and went beyond the fictional star to include his family, his agents and those in the industry. Students held negotiation sessions using the AI tool, which adapted to the negotiation approach and scored the groups on how well they managed this complex individual, with the winning group scoring 79, only just below the scores gained by experienced negotiators completing their MBA!

Industry exposure and insights

A major highlight I observed from our students was when the programme reached its full-day excursions to Google and INSEAD Singapore. The sheer excitement of visiting these well-established corporations was clear from their facial expressions.

First, we visited INSEAD, where students toured the leading business universities and learned about their current focus on sustainability. They had a taste of university life by hearing a lecture within a lecture hall and then entered a graffiti-decorated Creative Lab purposely built for brainstorming.

Following that visit, students stepped into Google to learn about their work culture from ‘Googlers’ themselves, along with the recruitment process. This was then followed by a tour of the building, where students were able to see how a business environment takes into consideration the design of workplaces, such that each space is intentionally built with purpose.

When I asked Eliott, a student of Westbourne Sydney, what he enjoyed most, he responded, “My favourite thing about Google and INSEAD was being able to see the facilities. It was really cool being able to see all the different ways that INSEAD’s trying to be more sustainable.”

On Thursday, back at the Singapore College, the programme kicked off with a business communications session by Anna Ong. Ong assists major organisations such as JP Morgan with how to use narrative to engage stakeholders, preceding the final session on Friday afternoon, which was the eight-minute “pitch” to venture capitalists for backing of their business proposal.

As a Comedian by night, she has an impressive ability to mix humour with strong business communication skills. She brought to this session her extensive experience in dealing with different types of organisations, including cultural awareness from her experience living, working and operating businesses across the globe. This exposure is certainly invaluable as our students begin their own journey beyond Australia.

Culminating event: Pitching to venture capitalists

On the final day, Friday, students faced the audience of venture capitalists. This was a combination of local Singapore business guests, parents, students and staff from Westbourne College in Sydney and Singapore. The quality of the ‘pitches’ was staggering. Some teams used AI-generated content to create promotional videos that were of market quality.

All groups led with their mission and vision, explained the feasibility and sustainability of the product, produced financial forecasts, detailed how they compared to any market competitors using the Blue Ocean strategy presented by Professor Johnson, and explained their roles in the venture.

In eight minutes, the groups managed to create a compelling and realistic business plan for their product or service and, just as significantly, faced a two-minute interrogation of their business by the judges who scored each team. The quality of every presentation was high, and as two teams received the same score, the final winner was decided by the quality of a one-minute summary pitch.

Key takeaways: Preparing for successful futures

Speaking with Johnson, he mentioned, “At the Westbourne Future Leaders Lab, we delved into topics typically reserved for elite universities, tackling subjects that are the domain of top students and executives.

It never ceases to astound me how adeptly these young high school students grasped the sophisticated concepts and themes we explored this week. We kicked off with an ideation session, brainstorming new ventures harnessing the power of AI. This was followed by a comprehensive business modelling exercise, covering leadership and entrepreneurship topics from the business model canvas to the blue ocean strategy.

The week culminated in dynamic strategy fair presentations, where each team created innovative booths and presented their projects in a lively and impactful manner. The energy and creativity on display were nothing short of inspiring.”

The Future Leaders Lab, a world-first of its kind, certainly matched my own education in my early years as Deputy Principal. All these key learnings and insights from the programme have helped shaped the future leaders of tomorrow in Singapore, Australia and UK who will become the next generation business leaders and entrepreneurs across science, tech and engineering.

I am particularly thrilled that high school students have this learning opportunity, where they learn directly from industry professionals and gain a head-start in preparation for their future.

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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.

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