Five months after announcing the closing of its US$100M Series C investment round, Aspire, which provides an all-in-one finance operating system (OS) for businesses, has turned profitable.

The Singapore-headquartered company offers corporate cards, multi-currency business accounts, FX payments, and payroll and expense management to over 15,000 businesses, including 5,000 in Indonesia.

In the past 12 months, Aspire claims it tripled its yearly revenues, hitting profitability in Q2 2023 and US$15B of annualised total payment volumes.

e27 spoke with Aspire Co-Founder and CEO Andrea Baronchelli to understand how the company made the achievement amidst an unfavourable business climate.

Excerpts:

This achievement comes when most companies are struggling to stay afloat and laying off employees to cut costs etc. How has Aspire managed to achieve profitability despite this? Did you accelerate the plans to achieve profitability because of the current slowdown?

We have been charting this path for the past 24 months, developing more efficient go-to-market approaches, forging strong partnerships and working relentlessly on our unit economics.

What sets us apart is our razor focus on the mission, which leads us to be highly deliberate with every product or feature we decide to invest in, listening to our customers, and adapting quickly to the macro-environment shifts.

We are also very intentional in building one of the most talented fintech teams in the region, as we need to put great talent together to build an enduring company.

What is next for Aspire? Are there any plans to expand its services to more countries or regions shortly?

We plan to continue building a highly talented team, which is at the core of our growth philosophy and invest in technology and expansion across Southeast Asia and the broader Asia Pacific.

What is your advice for startups struggling in terms of capital management? Can you give them some tips?

• • Every dollar counts: Make sure you’re keeping tabs on hidden costs like unnecessary subscription spend. Ensure you have visibility so know what you have and are paying for.
  • Have a strong system in place to enforce budgets and approval processes and create a culture of cost-consciousness empowered by technology.
  • Start early building a solid financial foundation while your team is small will help you immensely when you scale.

Could you share any success stories or case studies of SMEs benefiting from Aspire’s services?

Verz Design struggled with a lack of real-time visibility over their budgeting as they scaled. Using Aspire’s expense management software, this digital marketing agency could streamline its budgeting and forecasting processes and distribute spending decisions and procurement across the organisation.

Also Read: Finance OS for SMEs Aspire scores US$100M, claims US$12B annualised payment volume

With real-time tracking, cost-savings and automation of manual processes, the Verz team could reinvest that time and money into scaling their business and serving their clients.

Multiplier, a global employment platform with 200+ employees regionally, lacked centralised spending visibility and struggled to implement budget controls. After it started to use Aspire’s expense management solution, it issued as many corporate cards as it wanted with full visibility of all expenses in real time. It can now generate expense reports without waiting until the month’s end. It also implemented full budget controls and merchant locks, helping to adhere to planned budgets and get peace of mind. With Aspire’s solution, Multipliers saves approximately 760 hours and US$73,000 annually.

Endowus needed a business finance partner to support it through its rapid expansion through multiple markets. With more cross-border transactions, expense processing and marketing spending expected due to this expansion, Endowus needed an all-in-one business account tailored to its cost-saving needs.

Today, it manages employee spending and all other business finance needs on one platform (Aspire’s business account), with cost-savings through Aspire cards and time-saving through our various integrations and automation. With Aspire’s solution, Endowus saves approximately 900 hours and US$110,000 annually.

What future developments or enhancements can we expect from Aspire?

We will continue to invest in our product to enhance our offerings further to cater to our growing customers’ needs.

We plan to roll out highly-requested features in the coming months across our Business Account and Spend Management plans, including increased payment capabilities and local rail coverage, advanced software features, and enhanced integrations with partners.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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Finfra, a fintech company providing credit and financial services to businesses in Indonesia, has raised US$1 million in funding.

The investors are DSX Ventures, Seedstars International Ventures, Cento Ventures, Fintech Nation, FirstPick, BADideas Fund, and Hustle Fund.

Finfra plans to utilise the funds to expedite product development, expand its engineering, data, and finance teams, and grow to become a leader in the embedded lending industry.

The company was established in 2017 by Markus Prommik and Reinis Simanovskis as a consumer lending company under the name Danabijak. It later expanded its services to cater to businesses in 2021. Danabijak is now a subsidiary and remains profitable.

Finfra enables underbanked businesses and non-financial digital platforms to embed financial products and services, particularly credit lending, into their distribution channels. It offers a complete loan management system, scoring mechanisms, and portfolio analytics and facilitates access to debt capital.

Also Read: Ex-Chope VP Cassandra Ong launches remote-based marketing consulting firm OtterHalf

Indonesia’s internet economy has grown 10x since 2015, reaching US$77 billion in annual gross merchandise value. However, credit access remains limited for individuals and businesses, with only three per cent of Indonesians owning a credit card.

Finfra aims to tap into this opportunity by offering credit and financial services to existing customers, thereby bolstering user adoption, increasing per-customer spending, fostering deeper customer loyalty, and improving retention.

“Numerous platforms fail to acknowledge the untapped demand their sellers have for capital and the inherent difficulties in building these financial products in-house. Finfra is dedicated to resolving intricate infrastructure problems to enable platforms to optimise their support for sellers,” said Simanovskis.

Finfra anticipates that the support of the Indonesian Financial Services Authority (OJK), which aims to achieve a financial inclusion target of 90 per cent by 2024 (up from 75 per cent in 2019), will significantly contribute to its growth trajectory.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

The post Finfra bags US$1M to provide embedded lending services to Indonesian businesses appeared first on e27.

On the first day of Echelon Asia Summit 2023 on June 14 at the Singapore Expo, two leading fintech companies in Southeast Asia (SEA) revealed the key points to their steady growth throughout the years: A careful approach to fundraising and regional expansion to neighbouring countries.

According to Richard Koh, Founder/Group CEO of M-DAQ Global at a panel discussion on Forge Stage, regional expansion is all about timing.

“There is no middle ground; you are either too early or too late. So, in the early part of our journey, back in 2010-2012, we tried to scale up, tried to grow, tried to hire a little bit too early. Earlier than what our clients are expecting us to be ready when the market is going to be ready for our product,” Koh said, adding that during this difficult time, there was a moment when his employees did not receive salaries for months.

“At the same time, if we had done it too late, the space that we were trying to get into might be overcrowded. You will become a red ocean rather than a blue ocean. So timing is something we are still trying to get right; unless you have a crystal ball. It’s still a bit of a guesswork, but I guess through various iterations, you get slightly better and better.”

The importance of timing is also something that Nikhilesh Goel, Co-Founder & Group CEO of Validus, agreed on. He also added the importance of resilience in achieving it.

Also Read: Echelon: How MoneySmart Group plans to tap into the future of personal finance in Asia

“The second is not getting swayed positively or negatively by the startup fairyland stories. There are so many startup founders who expect to be valued at US$100 million next year, a billion dollars next year, and so forth. But our stories do not always pan out like that. It takes a very long time,” he explains.

“We spent a long time in Singapore before we decided to add that second country because we wanted to make sure that we believed in our product. We are sure that when we take it outside Singapore, it will work. We did not have the FOMO to add a new country because our competitors were doing it.”

Goel also stressed on the importance of credibility when trying to expand into new markets. Validus achieved it by choosing to partner with investors that are linked to the government of Singapore; something that he dubbed as “easily” marketed to in countries such as Indonesia and Vietnam.

A slow approach to fundraising for fintech companies

The same kind of careful approach was also used by these fintech companies in fundraising.

M-DAQ is known to have a large gap of time between its funding rounds; this gap could reach all the way to five years. These funding rounds are also not well-publicised.

“We enter the market every three to four years even during the heydays of startup funding, when somebody is going to raise some funds every six months. We try to raise enough and just stop. At the same time, we also try to do something a bit unusual. On average, in the last two-three rounds, when we raise the fund, 70 per cent or more of the fund goes back to our previous investor. So we took it upon ourselves to take care of them,” Koh said.

Koh attributed this attitude to the “Asian mentality” that he grew up with, one that puts emphasis on never having to have debts whenever possible.

“Growing up, I was taught never to owe people money. This is why we sort of baulk at doing too frequent fundraising and making announcements about it. Because it feels like I was telling the world that I just borrowed US$100 million,” he said. “But during when winter time, it turns out to be a little bit of a safety net.”

Also Read: Finfra bags US$1M to provide embedded lending services to Indonesian businesses

When it comes to fundraising, Validus is also careful in choosing which deal to close.

“There are tons of VCs who claim to add value. But when you ask them to define it, most are at a loss for words. So, we have chosen our investors very carefully,” Goel said, stressing that the fintech company raised “very little” money from VCs. Instead, they opted to focus on raising money from government-linked entities and large families in the region.

“Our last round was led by Japanese and Korean banks because we believe that they are a lot slower; they are a lot more conservative in terms of valuation,” he explained.

“We have always chosen the term sheet with the lowest valuation because anybody who is giving you a very high valuation basically is not going to add any other value. So, the first term sheet that we got was from Temasek. Once you get that kind of credibility, a whole host of ecosystems opened up to us that would never open up otherwise. But that was the stingiest term sheet we got. The same goes for term sheets from banks. I think there are now too many examples, whether listed companies or private companies in India, where their market cap today … is not even 1/10 of the valuation that it used to be.”

Validus is one of SEA’s largest SME lending players focused on Singapore, Indonesia, Vietnam and Thailand.

M-DAQ is a B2B player that works with local banks and e-commerce platforms. It has just under 300 people operating over eight overseas offices.

The post Regional expansion, careful approach to fundraising remain key for SEA fintech startups to grow appeared first on e27.

What we have all been waiting for is finally here. After months, hundreds of applications and hundreds of connections made over the e27 Pro platform, we ‘re down to the top ten startups who will be pitching for the TOP100 finals on Day Two of Echelon Asia Summit 2023.

One hundred startups pitched their companies to judges and thousands of delegates at the TOP100 stage on June 14, 2023 for an opportunity to move on to the finals and the chance to win the The Unicorn.

Enough with the introductions — here are the 10 startups taking on the TOP100 Stage finals, in alphabetical order:

ALPHACIRCLE

ALPHACIRCLE’s revolutionary technology enables content creators to produce pure, original VR videos with the highest possible quality. By making our software affordable and optimized for all devices, we aim to ensure that anyone can enjoy immersive VR experiences without any compromise on quality.

Ayo Indonesia

Ayo is a sport community app that allows users to meet players and communities, find sparring partners, join sport competitions, book venues and try new sports. Ayo is building an end-to-end ecosystem for sport players.

Boost Capital

Boost transforms Financial Institutions, expanding their client reach through chat-based financial services. Banks in Southeast Asia traditionally operate in-person via brick-and-mortar branch locations – Boost allows these Banks to enable their clients to apply digitally for loans in 5-10 minutes without an app download. This means massive new reach in new customers

EkkBaz

EkkBaz is a B2B marketplace that connects small businesses in the agriculture and food industries across developing countries in Asia, available in Bangladesh, Singapore and expending. The platform leverages cutting-edge technologies and data-driven financing solutions to help small businesses grow and thrive in an increasingly competitive global marketplace.

Letitu

Letitu’s product, The Pond, is a data/AI based high school curriculum builder for high school students who can’t receive college counselling to achieve individual goals and successful college admission. By using The Pond students will be able to seize accuracy, availability and affordability.

Longan Group

Longan is an ethical and inclusive debt management company supporting consumers and financial institutions to manage their finances more efficiently, on a mission to solve consumer indebtedness and promote financial health among the two billion population across Asia

NextPay

NextPay provides easy-to-use financial services without high fees and barriers to entry, empowering MSMEs to automate collecting, sending, and managing of money – all from one powerful platform.

Pajak.io

Pajak.io is a leading tax software provider that offers advanced automation solutions to streamline VAT invoice management for modern businesses in Indonesia. With their innovative Host-to-Host (H2H) solution, they revolutionise the way businesses handle their tax compliance, providing a seamless and efficient experience.

Quest

Quest connects SMEs in Southeast Asia to a “cult-like” community of Gen Z gig workers within 5 minutes. Quest gives businesses everything they need to find, hire, and manage top gig talents for a fraction of the cost on agencies and freelance platforms.

Retimark

Retimark offers the easier and earlier diagnostic and prognosis solutions to prevent eye diseases like Age-related Macular Degeneration (AMD), Diabetic Retinopathy (DR), and Glaucoma, which are the leading cause of blindness and allow to access to the optimal treatments for the preservation of eye health.

Congratulations to the finalists! All the best in the finals and see you at the TOP100 Stage of Echelon Asia Summit 2023 at Singapore Expo.

The post Top 10 startups battling it out at the 2023 TOP100 Finals appeared first on e27.

Use our special promo code: GO for 75% off your Echelon tickets!

The 2023 Echelon Asia Summit is happening at the Singapore EXPO on 14-15 June 2023. Are you a startup founder, investor, corporate, or tech enthusiast? Don’t miss out on one of the most anticipated tech conferences in the region! For more information, visit the official Echelon page.

The year 2023 began with two exciting acquisition news from Southeast Asian (SEA) tech startups.

In February, Indian workforce management firm BetterPlace announced the acquisition of its SEA counterpart MyRobin.

During the announcement, BetterPlace said that this deal is part of a series of investments that it is making to expand into the region. After Indonesia, it is looking to expand into Malaysia, Thailand, and the Philippines through organic and inorganic strategies.

After Better Place and MyRobin, in April, we got updates about the acquisition of iVS by ShowHeroes. This acquisition is also part of the organisation’s plan to expand into the Asia Pacific (APAC) market, including notable SEA markets such as Singapore, Malaysia, the Philippines, Indonesia, Thailand and Japan.

For startups in general, acquisitions by global companies provide a promising alternative to IPOs. As written by Jeffrey Gangemi from SC Johnson College of Business at Cornell University, young companies used to view going public not just as “a rite of passage” into maturity but as a necessary step to access a large volume of relatively inexpensive capital. But this was no longer the case as growth companies remained private for longer.

From the perspective of global companies looking to enter a new market, local tech companies provide great value with their knowledge and presence in the markets.

Also Read: Journeying through the long, winding road of startup investments and M&A in 2023

These are the reasons why we invited speakers from these two companies to speak at Echelon Asia Summit 2023. On June 15 at 11.30 AM on Forge Stage, MyRobin CEO and Co-Founder Siddharth Kumar and ShowHeroes SVP APAC Milan Reinartz are going to share their experiences with being acquired by global tech companies. Moderated by e27 CEO and Co-Founder Mohan Belani, this panel discussion will open our eyes to how M&As can contribute to growth for both companies.

A strong foundation for growth

Prior to the acquisitions, these two companies have made a reputation for themselves in their respective fields.

Launched in 2020 in Indonesia, MyRobin is a workforce-as-a-service platform that provides enterprises with on-demand, pre-screened, blue-collar workers. It provides a solution for businesses with recruitment, documentation, attendance, performance, and workers’ payments all processed on the platform. For workers, MyRobin provides an online job portal, financial services, and training.

The firm claims it has an outreach to more than three million workers across around 270 cities in Indonesia.

In 2022, the company claimed to have recorded a 7x growth with a client list that includes Shopee, Astro, Sicepat, E-Fishery, and Kopi Kenangan.

MyRobin is backed by Antler, SOSV, Accion Venture Lab, and Investible.

Known as iVS before the acquisition by ShowHeroes Group, the company served over 208 million unique users each month through its programmatic marketplace, made up of Asia’s independent publishers, advertisers, broadcasters and DooH providers. It leverages machine learning to enable monetisation and consumer engagement through its AVOD platform, proprietary video player and smart technology.

The acquisition transformed iVS CEO Milan Reinartz to the role of ShowHeroes SVP, APAC.

Also Read: Beyond the union: Understanding the complexities and impacts of M&As

After the acquisitions, these companies will have access to the resources and network that will empower them in the next stage of their journey.

“We now also have access to a global intelligence system through ShowHeroes, with all its learnings, rather than relying solely on our local expertise – in the principle of economies at scale, the cost advantages we’re seeing from this acquisition are brilliant,” Reinartz says in an interview with e27.

“Furthermore, evolving from a successful startup company – with all the work that entails – to now being part of a larger global company and team allows us to fully focus on our customers and partners, both old and new.”

Echelon Asia Summit 2023

Get to know these experts and more at this year’s Echelon!

Echelon Asia Summit 2023 is happening on 14-15 June, at the Singapore EXPO. Featuring a slew of speakers, exhibitors, business matching sessions, pitching stages, and more, the event enables participants to connect, network, and engage with the larger tech startup ecosystem.

At the Echelon Asia Summit, participants get the chance to attend a diverse range of sessions, including keynote speeches, panel discussions, and workshops, all exploring exciting topics like AI, blockchain, e-commerce, fintech, and marketing. You’ll also have the opportunity to join networking sessions and meet-ups where you can connect with fellow entrepreneurs, investors, and industry leaders.

To learn more about Echelon Asia Summit 2023 and sign up for the event, visit the official page here.

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Image Credit: MyRobin, ShowHeroes

The post Echelon: How global companies are winning APAC through acquisitions in SEA appeared first on e27.

Amidst the challenges of a tough funding climate, e27 is launching an exciting new article series called Angel’s Advocate to provide fresh perspectives on angel funding. In this exclusive series, we sit down with prominent angels to hear their stories and strategies and gain unique insights about the early-stage financing space.

Christina Teo is the Chief Builder of she1K. Launched in November 2018 and backed by Enterprise Singapore, she1K is the world’s first and only corporate executive angel network with more than 50 per cent female representation that champions and funds startups.

Teo is an avid angel investor herself and builds a strong portfolio of investments through their flagship program, C-shark Tank, which runs two-three times a year. She recently launched a peer network programme, called chiefX, catering only to C-suites.

Teo has been recognised as Linkedin Top Voices 2020 and is a strong proponent of women’s empowerment through her WomenChangemakers community events. She is also a much sought-after speaker as well as a judge for many startup pitch events and competitions.

In this edition, Teo shares her take on angel funding.

Edited excerpts:

How do you typically approach investing during a funding winter?

This is the first we have experienced. Generally, at the angel stage, we would continue to invest but be mindful that projections will need to be more conservative than before, and our expectations of outcome will also need to accommodate a longer-term horizon.

This is an investor’s point of view. For a founder, it may be quite a different story. Having said that, we changed the admission criteria for the eighth season of our flagship program, C-shark Tank, to only accept post-revenue startups.

What are your typical investment criteria, such as industry, stage, and geographic location?

We are sector agnostic, but we lean towards medtech, deeptech, agritech, and foodtech with the potential to IP. Sustainability is a bonus, not a condition. Geographies we do not cover include China, Africa, the Middle East, Russia and South America.

Can you describe your investment process from initial contact to closing a deal?

Whether it’s a referral or we scout directly, or they write in, we first must receive a deck. If we think there is a potential fit, we will book a one-hour call.

How do you evaluate a startup’s potential for growth and success?

Our questioning is very business and operations-oriented right from the get-go, i.e. who are their target customers, how is their go-to-market, and how will they position themselves in the market to achieve their targets?

The extent to which they are clear in articulating these aspects speaks volumes and/or instils confidence. We are a syndicate of C-suite executive angel investors, so technically, I am curating the deal to present to the C-suites (aka C-sharks).

Also Read: My advice is to approach raising funds as a learning process: Jeremy Au of Monk’s Hill Ventures

Other important points to consider are how their value proposition can grow over time with technology with a clear product-market fit with sparing customisation. Once it gets too bespoke or the sales cycle is too long, the probability of success may correspondingly be lower. We are generally more akin to B2B, so we are more patient with startups who sell to enterprises which implies a longer selling cycle.

How important is the founder’s experience and background when making investment decisions?

Because we are IP-centric, chances are the founder has direct experience with the solution sector. That may differ from the sector of the customers they are selling to.

For instance, if a biotech startup is selling to the beauty industry, it may be very convinced of all the productivity gains, innovation standards, etc., it brings to the table, but if they have not worked in the beauty sector, it might not know how the purchasing cycle and approvals work.

Can you share your successful investment and what made that investment successful?

Our first investment of almost four years has just been acquired. Performance Rotors launched the world’s smallest drone used for confined space inspection.

It was originally targeting the oil and gas and maritime sector. The combined technologies of the merged entity allow it to target a new sector that has already garnered a lot of traction. There is value contributed by both parties, and the merged entity commands a higher valuation.

Our smallest investment is in a medtech in Australia that has executed at a

speed far above average and has successfully raised another round with a strong escalation of valuation backed by reputable VCs.

What are some common mistakes that startups make when pitching to angel investors? What are some myths about angel investment?

Early-stage startups tend to pitch the big picture and stress how big the problem and market are. To what extent they themselves understand the statistics is questionable. Any solution they pitch is not addressing the entire market, even if we do not factor in competition.

Go-to-market is a prevalent weakness partially because of the work/market experience of the team or an over-focus on product/tech problem fit but not on how the market is going to know or be educated about the solution.

In the same token, projections make unrealistic assumptions based on a much bigger market than the one they can tangibly address given the limited resources of an early startup, which could very well be struggling with fundraising or if the sector is experiencing a downtrend in terms of attractiveness to venture capital.

How important is the alignment of values between the investor and the startup founder?

Given we are a syndicate and it is a wise option to invest via a syndicate vs going in directly, there is some limit to how much can be aligned.

Realistically, the value I ask for is accountability and transparency. Given the adverse economic dynamics these days, it is important that founders see investors as their partners, i.e. sounding board and not initiate contact only when they need funding.

Also Read: Founders should act as custodians of investors’ capital: Jed Ng of Angel School

The best alignment is when investors care and can open business leads, and the startup knows what kind of help and advice to get from each investor on his cap table. There are no perfect matches, and there can be a diversity of roles played by different investors in the same startup too.

How do you manage risk when investing in startups? Are there any specific metrics or indicators you look for?

Angel investing is perhaps the most risky. The founder, team and business have not proven their legs, and it is mostly not a relationship between friends. We go with eyes wide open, and the risks can be calibrated by sectors. On the other hand, we would want to manage a diverse portfolio to diversify the risks.

Can you share any advice for startups looking to raise funds from angel investors?

Take it seriously. “Too busy” is not a good reason to give, no matter how hot you are in demand. If you say you will send something by a certain time, please do so. Take pride in what you send over, so check the quality and accuracy.

Stay in touch with the investor even if they did not invest initially. Progress is part of the proof of concept. When you have pitched to many investors and still struggle to obtain funds, do some soul-searching. It’s not the system that is at fault. Show that you are on top of your business – you should know your numbers by day, week, month (depending on your sector), and year-to-date without looking at your spreadsheet.

Manage your pipeline actively — review it constantly to ensure you can manage your runway and also deliver on your promise to investors. Last but not least, an LOI/MOU is not a purchase order, so it does not validate much. The point to remember is angel investors are investing out of their own pocket of hard-earned money and not money belonging to the institution or to others as part of a fund.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

The post It is important that founders see investors as their partners: Christina Teo of she1K appeared first on e27.

Use our special promo code: GO for 75% off your Echelon tickets!

The 2023 Echelon Asia Summit is happening at the Singapore EXPO on 14-15 June 2023. Are you a startup founder, investor, corporate, or tech enthusiast? Don’t miss out on one of the most anticipated tech conferences in the region! For more information, visit the official Echelon page.

At e27, our mission is to connect the regional tech startup ecosystem together. And what bigger testament to that commitment than by mounting one of the largest and most attended tech conferences in Asia: The Echelon Asia Summit 2023!

Happening this 14-15 June 2023 at the Singapore EXPO, the Echelon Asia Summit is one of the most anticipated tech and business conferences in Asia that gathers entrepreneurs, investors, and industry experts from across the region. The event aims to provide a platform for startups and businesses to showcase their innovations, network with peers and investors, and learn from renowned speakers and thought leaders.

Also read: Our final batch of startups competing at this year’s TOP100

The summit features a range of activities, including keynote speeches, panel discussions, workshops, and exhibitions that cover a diverse range of topics concerning today’s tech startup ecosystem. The event is also home to the TOP100, one of the region’s most prestigious pitching competitions, enabling startups to gain exposure, connect with potential investors, and forge new partnerships.

Build partnerships at Echelon Connect (ECCO)

As an ecosystem enabler and community builder, it is important for Echelon to offer space for innovators, enablers, and other stakeholders to come together and build meaningful relationships with each other. As such, we present to you: Echelon Connect — a platform for structured meetings to take place between companies that want to work together to achieve common goals.

Up until 2019, the Echelon Asia Summit has always featured an avenue for businesses to connect with investors to possibly access and secure different forms of funding that can help propel them to greater heights. During the pandemic, when all major offline events took a halt, e27 pivoted by replicating this business matching platform in a purely online setting.

Also read: What exhibitors to watch out for at Echelon Asia Summit 2023?

Over the years, we have seen startups leverage this platform to pursue growth plans of every kind: from regional expansion to product development and co-creation. We believe that as we grow and evolve as a community, so must our services. As such, we are launching a dedicated physical space at the Echelon Asia Summit 2023 designed specifically for different stakeholders to connect with each other — not just between startups and VCs.

This year, Echelon Connect transcends beyond investor-startup business matching. Companies are now welcome to connect with each other in a structured meeting with the goal of ultimately building long-term partnerships and collaborations. These partnerships and collaborations have the potential to result in regional expansions, co-developing innovations and solutions, and even wider market access.

The e27 team is hard at work making sure that these connections flourish. Today, we have scheduled nearly 200 meetings already, and still counting!

Echelon Asia Summit 2023

Be part of this milestone by joining this year’s Echelon!

Echelon Asia Summit 2023 is happening on 14-15 June, at the Singapore EXPO. Featuring a slew of speakers, exhibitors, business matching sessions, pitching stages, and more, the event enables participants to connect, network, and engage with the larger tech startup ecosystem.

Also read: DARe: Bridging Brunei startups to the world via Echelon 2023

At the Echelon Asia Summit, participants get the chance to attend a diverse range of sessions, including keynote speeches, panel discussions, and workshops, all exploring exciting topics like AI, blockchain, e-commerce, fintech, and marketing. You’ll also have the opportunity to join networking sessions and meet-ups where you can connect with fellow entrepreneurs, investors, and industry leaders.

To learn more about Echelon Asia Summit 2023 and sign up for the event, visit the official page here.

The post Echelon Connect: Bridging companies through structured meetings appeared first on e27.

PolicyStreet, a full-stack insurtech group of companies with operations in Southeast Asia and Australia, directly works with over 40 life, general, and takaful providers globally to offer a comprehensive range of products and services. Its products and services include embedded insurance, customised employee benefits, financial advisory and aggregation of insurance, as well as the development of digital solutions to make insurance purposeful and simple for businesses and consumers.

Through its regional group of companies, PolicyStreet serves over 5 million customers with over US$6 billion in sum insured.
In 2022, it was named one of the 100 Leading Emerging Giants in the Asia Pacific by KPMG and HSBC. The insurtech company recently raised US$15.3 million in a Series B round of investment led by Khazanah.

In this interview, Co-Founder and CEO, Yen Ming Lee, discusses how PolicyStreet navigated multiple global crises to secure a place in the region’s insurance space.

Excerpts:

How has been the past 2-3 years for PolicyStreet from a business growth perspective? How did it tide over COVID and the economic slowdown?

From a business growth perspective, the past 2-3 years have been transformative for PolicyStreet. Despite the unprecedented challenges, we achieved significant progress and demonstrated resilience during this period.

We realised the importance of adaptation and agility and diversified our product offerings to mitigate the effects of the economic slowdown. As digital and gig economies boomed during the COVID lockdown, we noticed that the backbone of the two economies — gig workers — were underinsured and at risk for financial instability.

Having always upheld a customer-centric approach to serving communities, we developed strategic partnerships while obtaining relevant licences that allowed us to serve this group of underinsured individuals better.

Also Read: PolicyStreet aims to advance embedded insurance in SEA with its US$6M Series A financing

As the economy recovers, we’ve developed an ecosystem of insurtech products and services that complement each other, supporting the growth of the gig and digital economies. Given our resilient business model in prioritising problem solving, we recorded 5x growth and attained a sum insured of over US$6 billion as of FY22.

How does the current global economic slowdown affect your business, and what steps have you taken to mitigate any negative impacts? Have you noticed any changes in customer behaviour or demand, and how have you responded?

In 2019, we received the Financial Adviser and Islamic Financial Adviser approval from Bank Negara Malaysia, which allowed us to work agnostically with 40 insurers and takaful providers in Malaysia.

When the COVID-19 lockdown hit, we had just launched our B2B business, offering customised employee benefits to SMEs by bundling different coverages from insurers and takaful providers to create the best value coverage according to budgeted requirements.

As businesses went into lockdown, we saw that SMEs were cutting costs. Although customised employee benefits helped companies save costs compared to obtaining coverage from individual agents or insurers, insurance was often not the priority for businesses struggling to keep their heads above water.

To ensure our business sustainability, we diversified our products and offerings. In 2021, we were awarded the General Insurance and Reinsurance licence from Labuan Financial Services Authority, enabling us to underwrite our insurance products and expand our product offerings.

Instead of merely targeting underinsured businesses, we launched our B2B2C business by providing embedded insurance to underinsured gig workers through strategic partnerships with p-hailing and e-hailing service providers. We started as a customised employee benefits business and grew to become a comprehensive insurance solutions provider to all stakeholders within the digital and gig economy.

How has your financial strategy changed in light of the current market conditions, and what measures have you taken to ensure long-term sustainability?

Our financial strategy remains the same — to provide customer-centric insurance solutions. We believe narrowing the protection gap by making insurance accessible through optimised problem-solving would ensure our business’s sustainability.

We will continue innovating, deepening and advancing our tech and underwriting capabilities better to serve the underserved and underinsured communities in the region.

Concurrently, we will also monitor market and industry trends and changes to ensure our insurance solutions are relevant and effective, evolving the dynamic needs of individuals and communities.

Can you speak of any recent fundraising efforts and how the current economic climate impacted those efforts?

We’re thankful to have completed an oversubscribed Series B fundraising round recently, with Khazanah, Malaysia’s sovereign wealth fund, as the lead investor.

Our existing investors Altara Ventures, Gobi Partners, and Spiral Ventures also joined the round.

Fundraising is no easy feat for any startup, and we’re thankful for the US$15.3 million (RM 67 million) raised to support our company expansion efforts.

Can you discuss any cost-cutting measures PolicyStreet has implemented and how those measures have impacted your business operations? Did you lay off employees to stay afloat in the market?

Despite challenging times during the COVID-19 lockdown, we did not have to resort to layoffs. We have remained prudent in our spending throughout the years, which helped us remain resilient during the economic slowdown.

Have you adjusted your growth projections or other key performance indicators in light of the current economic climate?

PolicyStreet monitors market conditions and adjusts growth projections and key performance indicators accordingly. As a responsible organisation, we recognise the importance of staying agile and adaptable.

While I can’t disclose specific details, we regularly review and recalibrate projections based on data-driven insights and industry trends. Our ability to adjust strategies allows us to remain resilient and responsive. By monitoring economic indicators, we identify opportunities and mitigate risks.

Also Read: It is costly to develop and sell insurance products in Indonesia: PasarPolis CEO

We strike a balance between prudent expectations and aspirational targets, aiming for sustainable growth while considering the realities of the economic climate. Rest assured, PolicyStreet is committed to navigating the challenges and seizing opportunities as we evolve in the dynamic market landscape.

Can you speak of any market opportunities that have emerged as a result of the economic downturn and how your company is capitalising on those opportunities?

With the insurance penetration in ASEAN lingering around 4 per cent of GDP, lagging behind the global average of 7 per cent of GDP, the market opportunity has always been the protection gap with or without the economic downturn.

It was always a matter of making insurance accessible to these vulnerable individuals and communities and how insurtech startups such as PolicyStreet approaches the problem. Accessibility does not necessarily mean affordability. It can sometimes translate to various approaches ranging from simplifying processes which reduces the administrative workforce needed, to working according to the behaviours of consumers to encourage uptake.

The needs and preferences of the underserved are often ever-changing. We aim to continue monitoring these changes, remaining quick to respond, and developing solutions that make a difference to consumers and businesses.

How do you balance the need for short-term financial stability with the long-term goals of your business?

We strategically toe the line between short-term financial stability and long-term business goals. We emphasise prudent spending and strategic investments to ensure our sustainability on a daily basis.

Through disciplined financial management, we control costs and optimise operations for immediate stability. Simultaneously, we make strategic investments in technology, talent, and partnerships to drive long-term growth.

We continuously evaluate our performance to make informed decisions and align with our strategic vision. This balanced approach allows us to address immediate risks while capitalising on growth opportunities for a sustainable future.

Can you discuss any plans you have for diversifying your revenue streams or expanding into new markets in light of the current economic climate?

We’re unable to comment on precise future plans to diversify revenue streams.

Nevertheless, with the recent funds raised, we aim to utilise it to:

• Deepen our technology development and underwriting capabilities and further advance on-demand insurance policies
• Improve our market position and expand our reach to serve the underserved and underinsured audience segments better
• Expand our operations regionally.

How have you maintained a strong company culture and kept your team motivated during these challenging times?

At PolicyStreet, we believe that our people are the backbone of the business. While we are selective in our recruitment process and ensure that we have the right people onboard, we also host several culture-building activities, ranging from Halloween costume contests to annual all-you-can-eat buffet dinners.

We also believe in fair compensation and treatment for team members of all levels. We promote extreme ownership and provide opportunities without prejudice. We encourage autonomy for our team to contribute and lead projects according to their capabilities, ultimately allowing them to hone their skills along the way.

Additionally, we constantly remind our team of the significance and impact of their contributions to community growth and financial stability. Being at the forefront of innovation within the insurtech industry, PolicyStreet’s employees feel empowered, knowing that they are making a difference in the lives of millions of people across the region by working to close the protection gap.

Do we see an end to the raise-cash-burn-cash growth model and the emergence of the ‘make profits, sustain & grow’ model?

In the challenging startup scene, where only a handful of startups achieve profitability, we acknowledge the inherent difficulty. However, we remain committed to advancing towards the “make profits and grow” model despite the climate.

We recognise that sustained profitability is crucial for long-term success. By adopting prudent financial management and strategic investments, we strive to continue on our positive growth trajectory.

While the startup landscape poses unique challenges, we aim to navigate them and contribute to the paradigm shift towards sustainable growth and profitability.

What challenges does a late-stage startup face compared to an early-growth-stage startup? What learnings can early or growth-stage companies make from late-stage companies?

As a startup in its early stages, we’re taking a page from the late-stage startup playbook when it comes to scaling operations, increased market competition, and investor expectations.

We observe how late-stage startups handle scaling challenges, plan our future scalability, optimise processes and allocate resources efficiently.

Also Read: PasarPolis: selling insurance in a country that considered purchasing insurance a ‘loss’

We’re also consistently monitoring late-stage startups’ market positioning and differentiation strategies, ensuring we carve out a unique value proposition and adapt to evolving customer needs. PolicyStreet also embodies the financial discipline demonstrated by late-stage startups, prioritising growth and establishing solid financial management principles early on.

By embracing a learning mindset and adapting strategies, we navigate challenges and position ourselves for long-term success.

How is the mindset and cultural shift happening internally, since we are in a high-interest rate environment and funding isn’t going to be as easy as before?

Internally, we at PolicyStreet remain cautiously optimistic in response to the challenges posed by the current high-interest rate environment.

We have always embraced a culture of financial prudence, carefully evaluating expenditures and prioritising investments with clear returns and will continue to uphold this as our standard practice.

Strategic decision-making and resource optimisation are also paramount, as we conduct thorough analyses, risk assessments, and scenario planning to align our strategies with market conditions while also leveraging technology to improve our offerings.

We maintain a learning mindset, staying informed about market trends and adapting our strategies accordingly. Through these efforts, we aim to navigate the high-interest rate environment and ensure long-term success and sustainability.

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Atirah Danial and her younger sister Amirah Jasmine wanted to help their pre-diabetic mother enjoy regular food but were afraid that the products available in the market could worsen her condition. Jasmine, who comes from a culinary background, was determined to find a solution.

The sisters thought over this and came up with the idea of Manis Leting.

Founded in May 2022, Manis Leting (meaning ‘really sweet’ in Bahasa) creates a range of low-calorie products that are both healthy and affordable. The startup makes food products, such as cordials, café syrups, and sweeteners, which are lower in calories but still retain the sweet taste. They are affordable, too.

Also Read: Manis Leting, Triphie win 1337 Ventures’s Alpha Startups pre-accelerator programme in MY

Sweetened condensed milk is its flagship item, which doesn’t use white sugar. Instead, it uses sweeteners such as Stevia to sweeten the product. It is designed by Jasmine, who has years of experience as a low-calorie and is also a food fortification expert.

According to the duo, Manis Leting’s condensed milk is a good alternative to the regular condensed milk in the market, which is 70 per cent sugar.

“We are the world’s first creator of sweetened condensed milk with zero white sugar,” says Danial. “We bring innovations to daily food products to make them healthier, lower in calories and lower in sugar for better health.”

Manis Leting, which has set up its own lab to produce food alternatives, also sells Timi syrup. The company targets café chains, restaurants, bars, and coffee distributors to market and sell Timi.

Having said that, the alt-food startup plans to develop more products, such as sauces, ready-to-drinks, sports drinks and other household products that use high amounts of white sugar.

“We also plan to export our products to neighbouring countries such as Thailand, Indonesia, Singapore, and the UAE in the future,” shares Danial.

One of the main challenges facing Manis Leting is inflation, which has resulted in the higher price of raw materials. Despite this, the company wants to keep the products affordable for the masses.

There are no competitors for Manis Leting in the market but the duo expects more companies to crop up as their products become a hit.

The startup recently received pre-seed funding of about RM50,000 (US$11,000) as part of the latest Alpha Startups pre-accelerator programme run by 1337 Ventures.

Also Read: Sustained profitability is crucial for long-term success: PolicyStreet CEO

“We will use the funds to get our Halal certifications and other required licenses. We will also invest some capital in operations, patent submission, and marketing,” says Danial.

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Use our special promo code: GO for 75% off your Echelon tickets!

The 2023 Echelon Asia Summit is happening at the Singapore EXPO on 14-15 June 2023. Are you a startup founder, investor, corporate, or tech enthusiast? Don’t miss out on one of the most anticipated tech conferences in the region! For more information, visit the official Echelon page.

Darussalam Enterprise (DARe) was established in February 2016 to spearhead the growth of local Micro, Small and Medium Enterprises (MSMEs) in Brunei towards increasing contribution to the economy, employment, and export. DARe bridges the public and private sectors to facilitate a conducive business environment. Their mission is to enable enterprise growth through a pro-business ecosystem with the necessary infrastructure, reliable support, and effective development programmes.

At the Echelon Asia Summit 2023, DARe will be bringing with them a slew of startups from the Brunei tech startup ecosystem to network, connect with, and hopefully build long-term partnerships with ecosystem stakeholders from across the region. “We are going to Echelon to give our startups the opportunity to attend the summit and to see what opportunities they can get while networking and attending,” shared Syuaib Rafie, Executive Officer at DARe. “We are looking forward to networking with ecosystem builders and also learning what verticals are trending in different industries,” he added.

Also read: Meet these six exciting exhibitors at Echelon Asia Summit 2023

DARe’s participation at this year’s Echelon Asia Summit opens possibilities for some of the most innovative startups from Brunei to access and explore opportunities within the broader Southeast Asian tech startup ecosystem. Conversely, the event serves as a conduit that enables other startups, investors, corporates, and ecosystem stakeholders to potentially connect with, collaborate, or even partner up with Brunei startups.

Bruneian startups to check out at Echelon!

Spanning a variety of verticals, here are the three startups that will be at the Echelon Asia Summit 2023 via DARe:

1. The Woke Company – “Woke demystifies and democratizes investing by providing personalised digital investing education for all.”
2. Super Thirteen Clothing Co – “Super Thirteen is a Brunei streetwear and lifestyle brand established in 2017. Originated from the passion of an individual towards streetwear culture and graphic designs, Super Thirteen aims to be a medium for the youth to express their individuality and also to support the growth of extreme sports, arts, various independent underground cultures, empowering small businesses, and creative scenes in Brunei.”
3. Teaspoon F&B Services Company – “A tailor-made supplier of delicious wholesale food and flour-based products for your F&B business. We provide enhanced professional consultations and innovative solutions in the F&B industry to simplify your operating processes. With Teaspoon, we help you overcome challenges so you can focus on your customers and service deliveries. We fuse culinary experts of experienced chefs, restaurateurs, and food engineers to shape the future of your business. With a teaspoon of magic, a dash of fun, and an unwavering love for food, let’s collectively transform Brunei into a culinary hotspot filled with its own unique characteristics.”

Also read: Check out these 10 startups vying for the TOP100 top prize

Echelon Asia Summit 2023

Get to know these unique startups and more at this year’s Echelon!

Echelon Asia Summit 2023 is happening on 14-15 June, at the Singapore Expo. Featuring a slew of speakers, exhibitors, business matching sessions, pitching stages, and more, the event enables participants to connect, network, and engage with the larger tech startup ecosystem.

To learn more about Echelon Asia Summit 2023 and sign up for the event, visit the official page here.

Photo by Thirdman via Pexels

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