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How early-stage startups can build a thought leadership strategy

thought leadership strategy

Las week, we learned why building thought leadership was essential for your fundraising efforts. This week, we will focus on the ‘how’.

While every founder in Asia Pacific understands that they need to be a thought leader (check out the effort our contributors put in), more often than not, it is ad hoc.

Finding time to speak at (virtual) conferences, networking with journalists to be interviewed and build your your own fan base via LinkedIn and other writing platforms is a lot to juggle with the tasks of running a startup.

And it is this very juggling that makes most of them sound like a content marketing studio. They fail to realise that thought leadership is not just about your product and its features — it is a reflection of your thoughts put forth confidently.

This week, I would like to enlist some tips for you to keep in mind to build your own thought leadership strategy especially when you do not have personnel to take care of it.

What to do

  • Thought leadership distinguishes you and your brand from others. Events, podcasts and blogs can help you build leads, future investors, and even increase consumer base. But bear in mind that it is a slow process and yields no instant returns. It is a consistent and long-term process.
  • Its starts with you. As the founder you are the face of the company and should work on enhancing your PR and marketing skills. Freely share your views about the industry and what’s happening at your startup via your company blog, LinkedIn, Twitter or more. Once the startup grows, the founder can take a backseat, but don’t stop doing it.
  • As your startup grows, it’s important to know who participates in where. Divide and plan all your thought leadership efforts. Slowly, a startup can involve its technologist, sales and market leaders, or even HR executives to share their company practices, product know-how, etc.
  • Steer clear of product marketing. It should not be the thrust of your thought leadership. You never want to appear as just a salesman hawking his products. No one, after all, likes to be sold to. What people do appreciate, on the other hand, is having their problems solved.
  • The major thrust of your thought leadership should always be market education, especially in Asia, where most consumer and enterprise tech industries are still relatively new (at least compared to Silicon Valley).

Where to start

  • Start a company blog if you can. But let it not just talk about your products, but also about what’s happening at your company, how you make decisions, etc. This will help engage all your stakeholders.
  • Join Telegram groups or communities and network your way with peers. The e27 Facebook community is a great place to start. You can not only share your views and tips but also learn from others and stay up to date with industry sentiment.
  • Contributor posts at media such as e27, Inc42, Forbes, etc. Contributed posts are a good break from story pitch and press release and an easy way to earn bylines for key members of your company. LinkedIn is a great tool too and the best way for brands to put company updates out there.

Anyone can become a thought leader and benefit from the added visibility. All you need are passion, expertise, and honesty, says Muara Makarim, who has helped startups such as Shopee and Circles.Life at their PR and thought leadership game.

Image credit: Photo by Sora Shimazaki from Pexels

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MooVita raises ‘multi-million dollars’ Series A to bring driverless cars to Singapore’s public roads

An image of a MooVita car

MooVita, an autonomous vehicle (AV) tech startups based in Singapore, has raised multi-million dollar amount in a Series A round of investment, led by Yinson Green Technologies Division, a subsidiary of Malaysian energy infrastructure company Yinson Holdings.

SMRT Ventures, the corporate venture arm of SMRT Corporation, also participated in the round.

This investment marks Yinson’s first foray into the mobility space.

MooVita will use the funds to accelerate the development, commercialisation and international expansion of its driverless solutions — beginning with the deployment of driverless solutions for public transportation and the urban environment.

As per a press note, these plans are aligned with Singapore’s “Sustainable Singapore Blueprint”, which sets out to achieve a cleaner and greener transport system by 2030.

Also Read: Vietnam launches first autonomous vehicle

“With this injection of capital, we will focus on advancing our driverless technologies, building a fleet of driverless shuttle buses and safe on-road operations, expediting the deployment of the MooVita’s driverless public transport solutions across Asian urbanscapes, starting from Singapore and Malaysia,” said co-founder Dilip Limbu.

Established in 2016, MooVita is specialised in designing and deploying roadworthy autonomous vehicles in urban cities worldwide. It is currently developing a component-based driverless software solution, which transforms various vehicle types into versatile autonomous vehicles for multitudinous driving conditions and applications, such as first/last-mile transportation, logistic transportation, agriculture, and utility solutions.

Headquartered in Singapore, Moovita also has offices in Malaysia and India.

MooVita’s early investors include Pioneer Smart Sensing Innovations Corporation (a consolidated subsidiary of Pioneer Corporation), SEEDS Capital and GreenMeadows Accelerator.

According to Digital News Asia, the company was also the first to receive approval to test its autonomous vehicle in Cyberjaya, Malaysia.

“Our plan is to replace existing infrastructure and develop innovative business solutions in order to make transportation sustainable through the adoption of clean and environmentally sound technologies. The co-investment into MooVita presents a wonderful opportunity to contribute back to the sustainable transportation infrastructure in Singapore,” commented Yinson Group Vice President Eirik Barclay.

“We are adopting a targeted strategy where we tap into our existing strengths in logistics solutions, energy infrastructure, and renewables; and focus on the geo-markets where we’re currently active. We believe that this approach will help us to build profitable, disruptive businesses, that meet the needs created by the global climate action agenda,” added Yinson Group Chief Strategy Officer, Daniel Bong.

According to KPMG’s latest Autonomous Vehicles Readiness Index, Singapore holds first place for autonomous vehicle (AV) policy and regulation and second for infrastructure — surpassed only by the Netherlands — and is widely recognised as a global leader in AV development.

Some of the other AV companies currently active in the region include nuTonomy, Red Dot Robotics, and OpenSourceSDC.

According to data compiled by Tracxn, there are 10 smart car startups in Singapore as of 2020.

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Image Credit: MooVita

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Alodokter raises fresh capital, claims 30M MAUs and 43K doctors on its telemedicine platform

Alodokter co-founder Suci Arumsari

Indonesian telemedicine “super app” Alodokter has announced that it has secured an additional investment from MDI Ventures, a subsidiary of Telkom group, and Samsung Ventures.

The size of the investment was not disclosed.

This deal takes place nearly eight months after the Jakarta-headquartered startup raised a funding round led MDI Ventures in November 2020 as part of its US$30 million Series C extension.

The health-tech firm will use the funding to further expand and develop new products.

Started in 2014 by Nathanael Faibis and Suci Arumsari, Alodokter provides all-encompassing digital health services that include reliable health content, access to general practitioners and specialists (telemedicine), online booking of doctor’s appointments at hospitals, medicine purchase through e-pharmacy and affordable insurance packages.

Also Read: Halodoc snags US$80M Series C led by Astra to expand its telemedicine platform in Indonesia

The firm claims it has more than 30 million monthly active users and more than 43,000 certified doctors across 1,500 hospitals and clinics on its platform.

Since 2019, Alodokter has raised significant investment from investors such as Softbank Ventures, Sequis, Golden Gate Ventures, Philips, Heritas and Hera Capital.

CEO Faibis said: “…Key focus areas going forward include technology innovation, increasing the talent pool, and adding new features and functionalities…By integrating our ecosystem with additional state-owned enterprises, we expect to provide tech-enabled healthcare access to more Indonesian patients.”

Donald Wihardja, CEO MDI Ventures, said: “Alodokter has a proven track record of growing their comprehensive healthcare solution. All the innovations, from telemedicine to insurance, have been developed to cater to Indonesia’s needs for accessible and affordable healthcare services. The funding from MDI will further extend the growth of health services through the potential collaboration with several BUMN entities in Indonesia.”

“With the increasing demand for the use of health services, this follow-on funding aligns Telkom’s mission to increase innovative products within the SOE environment and continues to be committed to providing solutions to millions of people in Indonesia,” explained Director of Enterprise & Business Service Telkom Group, Edi Witjara.

Previously, Alodokter had raised seed funding in 2015 and US$2.5 million in Series A led by Golden Gate Ventures in 2016.

In April this year, Halodoc, another Indonesian telemedicine startup, raised US$80 million in a Series C funding round led by local automotive conglomerate Astra.

Image Credit: Alodokter

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In brief: Gojek’s courier drivers protest over low incentives

UNOBank CEO Manish Bhai 

UNObank receives digital banking license in Philippines

The story: UNObank has received approval from the central bank Bangko Sentral ng Pilipinas (BSP) to operate a digital bank in the Philippines.

About UNObank: A company under Singapore’s DigibankASIA, it offers anyone in the Philippines to save, borrow, transact, invest, and protect their finances easily with speed and ease.

More about the story: The BSP has granted three digital bank licenses, two of which are conversions from previous bank licenses.

Tonik, another Filipino neobank, also received the license.

“The BSP’s vision and foresight to digitise the local banking industry is future-forward and apt because ultimately it will help align the Philippines as a modern banking center for the region,” says Manish Bhai of UNOBank.

Carousell ropes in former Razer executive as new CFO

The story: Carousell, a Singapore-based mobile listing service company, announced today the appointment of former Razer executive, Edwin Chan, as its Chief Financial Officer.

Also Read:  Ecosystem Roundup: Why SEA’s exits market looks bright

New role: He will oversee Carousell’s overall capital strategy, including corporate development, fundraising, as well as mergers and acquisitions.

Additionally, corporate controllership and accounting, financial reporting, investor relations, legal and compliance functions will fall within Edwin’s remit.

Gojek’s GoSend courier drivers protest over low incentives

The story: Drivers of Gojek’s delivery arm, GoSend, are planning to strike a protest today, according to messages distributed via WhatsApp groups. This was first reported by Kr-Asia.

The reason: GoSend is planning to cut incentives for deliveries by more than half the current rate.

More about the story: Yulianto, a GoSend drive and a spokesperson of the protest, said that the protest will run for three days in Jakarta, Bogor, Depok, Tangerang, Bekasi, and Bandung.

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Image Credit: UNOBank

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wagely bags US$5.6M to give Indonesia’s low-paid workers access to their earned wages

[L-R] wagely co-founders Tobias Fischer (CEO), Sasanadi Ruka (CTO), and Kevin Hausburg (CCO)

[L-R] wagely co-founders Tobias Fischer (CEO), Sasanadi Ruka (CTO), and Kevin Hausburg (CCO)

wagely, a financial wellness platform that enables earned wage access (EWA) in Indonesia, has received US$5.6 million in a strategic round of investment, led by Integra Partners (formerly known as Dymon Asia Ventures).

Also participated in the round were ADB Ventures, PT Triputra Investindo Arya (one of Indonesia’s largest privately held groups), Global Founders Capital, Trihill Capital, 1982 Ventures, and Willy Suwandi Dharma (former President Director of PT Asuransi Adira Dinamika).

Also Read: Impact-tech investor ADB Ventures in talks to raise US$100M debt fund

The Jakarta-headquartered startup will use the capital infusion to accelerate the adoption of its platform.

Founded by Tobias Fischer (previously with Grab) and Sasanadi Ruka (formerly with Tokopedia) wagely gives employees access to their earned wages and financial education.

EWA is a concept wherein an employ can withdraw a part of his/her already earned salary before the payday. For example, you have worked from 1st-10th June, while payday is on the 25th. You can withdraw a part (say, 50 per cent) of your prorated salary for that month (10 days) before the payday comes.

This is aimed at reducing financial stress for millions of low- and middle-income workers, who struggle with unexpected financial expenses between pay checks.

wagely claims it serves tens of thousands of employees across many industries, including restaurants, factories, hospitals, and retail stores.

“More than 100 million Indonesian lower- and middle-income workers are living paycheck to paycheck and struggle with unexpected financial expenses between paychecks, which in turn impacts businesses with higher turnover, lower productivity, and more employee loans,” said CEO Fischer.

“Our workplaces are changing rapidly, especially since COVID-19 struck. Now the way people are getting paid is changing, too, and at scale. wagely provides a financial flexibility that is perfectly suited for today’s agile and progressive workforce,” he added.

Its financial wellness solution is used by companies such as British American Tobacco, Ranch Market, PT Mustika Ratu, and PT Kencana Energi Lestari.

“wagely offers our employees financial stability in times of uncertainty. It is incredibly important and a crucial step for the long-term resilience of our business,” said Wilson Maknawi, President Director at PT Kencana Energi Lestari.

“With no changes to our payroll process, wagely’s solution has proven to increase our business savings and helped our employees to avoid predatory loans while providing savings and budgeting tools that increase their financial literacy,” he shared.

As concerns over COVID-19 continue to grow, employers around the world, including Walmart, Pizza Hut and Visa, are turning to EWA solutions to reduce turnover, enhance productivity, and increase business savings.

Dailypay, a leading US-based EWA provider, just recently raised US$500 million and reached unicorn status.

Other noted EWA providers are US-based Payactiv, UK-based Wagestream,  Mexican firm Minu, and US-based Even.

Payactiv already counts more than 2 million users and has processed more than US$5 billion in earned wage access, highlighting the tremendous potential of the space.

Also Read: 1982 Ventures partners with 3 Korean investors to help country’s startups enter SEA

Daniel Hersson, Senior Fund Manager at ADB Ventures, commented: “wagely offers workers what they did not have before: a fair and accessible financial tool to help them manage life’s inevitable contingencies and emergencies, including those caused by climate change.”

Over 70 per cent of the Southeast Asian adult population is still underbanked and lacking access to affordable and responsible financial services, while many of the 140 million low- and middle-income workers (72 per cent of the Indonesian workforce) who live from paycheck to paycheck are exposed to the cycle of debt caused by overdraft fees, high-interest credit, and payday loans.

Taking this opportunity, the earned wage access solutions offer a sustainable alternative to employees. With the COVID-19 pandemic and increased levels of financial stress that is directly impacting employers, wagely has become even more important to employees and employers and is well-positioned to further support millions of Southeast Asians with its holistic financial wellness platform.

Image Credit: wagely

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Autopair raises funding to digitise auto workshops in Thailand, Indonesia, Malaysia

Autopair CEO Santi Vajanapanich

Autopair, an online automotive parts trading company in Thailand, has raised an undisclosed amount in a pre-Series A financing round.

Summit Auto Body Industry, one of Thailand’s largest suppliers of automotive parts, led the round.

Prior to this, Autopair has raised US$500,000 in seed funding from KK Fund in 2018.

Autopair said in a statement that it will use the fresh capital to help approximately 1,000 independent automotive workshops digitise their work processes through its newly launched digital business management platform.

Additionally, it has also announced plans to expand into markets like Indonesia and Malaysia.

Despite the slump in domestic car sales due to the COVID-19 pandemic, the impact on the industry has been offset by the corresponding increase in demand for car maintenance.

However, Autopair believes that independent automotive workshops have not fully capitalised on these opportunities due to high fragmentation and a reliance on traditional, inefficient operational processes.

Also Read: Carsome snags US$30M Series D to strengthen its C2B and B2C offerings

Founded in 2018, Autopair’s goal is to transform the automotive aftermarket industry via its online automotive parts trading platform.

Its SaaS offerings are ‘Smart Procurement’ and ‘Smart Workshop’ are its core features.  Smart Procurement provides a virtual inventory of parts, wholesale discounts, as well as a 90-minute contactless delivery of service parts at competitive prices.

The second product streamlines business solutions for calendar scheduling, tracking, managing labour efficiencies as well as inventory management and customer relationship management (CRM) tools for estimates and invoices.

The company has over 50,000 virtual stock-keeping units and its solutions are available in 29 provinces in the region.

In the past three years, Autopair claims to have recorded a compound annual growth rate (CAGR) of over 385 per cent.

Some of its clients are industry leaders including Bridgestone Corporation, Toyo Tires, Nitto Automotive, and Nankang Tires.

“I believe that with an uncertain future in uncertain times, the best strategy is to be part of the disruptive wave instead of standing against it,” said Kornkrit Jurangkool, President of Summit Auto Body Industry.

“Autopair has demonstrated its success in digitising the automotive aftermarket industry to date, and given our connections throughout the industry and ecosystem, we believe we can help drive Autopair’s business forward,” he added.

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Image Credit: Autopair

 

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The hidden danger in SPACs. Is the hype worth the risk?

SPAC attractive

More than US$300 billion was raised through IPOs worldwide in 2020, including record numbers of issuances in the US last year despite a sharp economic downturn brought on by the pandemic. A large portion of such issuances was via special purpose acquisition companies (SPACs), which are publicly traded investment vehicles created to merge with an existing company to bring it public.

According to Goldman Sachs, SPAC IPOs have raised a total of US$78 billion across 244 transactions globally in 2020. This represents a remarkable five-fold increase from the year before.

Closer to home, Southeast Asia’s most valuable startup Grab is also set to list on the Nasdaq via SPAC Altimeter Growth Corp at an estimated valuation of US$40 billion.

The sudden boom in SPAC IPOs was more notable given the tepid IPO markets in the years leading up to the pandemic. Companies were trying to stay private longer as venture capital and private equity money was abundant. The rapid renewal of interest in public equity capital raises the question of whether “staying private for longer” will become history.

Public valuations for startups, especially within the tech sector, is at a historic high with a median IPO priced at 24x sales in the year 2020 (a fourfold increase from the preceding twenty-year average).

Such lofty valuations are attractive for the typical SPAC target – young, loss-making, with no clear path to profitability, but are reminiscent of the dot-com bubble. The sustainability of these trends has major implications for the financial markets and thus warrants a more sobering view of SPACs.

Also Read: Ecosystem Roundup: Will SPACs sound the death knell for IPOs in SEA?

How it works

To evaluate the SPAC model, it pays to first understand how one works. A SPAC typically begins life as a team of experienced financiers (often referred to as sponsors). The sponsors leverage their reputation to raise cash in an IPO, then take up to two years in search of private companies to merge and bring public.

Along the way, it issues shares, warrants, and rights to parties that do not contribute cash to the eventual merger, thereby diluting the value of its shares. If investors eventually agree to a proposed merger, the SPAC redeems the majority of its shares from the public market, issues new shares to its sponsors or to third party private investors (PIPEs), and finally merges with the target company. The remaining public shareholders, sponsor(s), and PIPE investors all own a portion of the post-merger company’s equity.

A key risk of SPACs comes from a characteristic inherent to the design of SPACs: dilution. A recent Stanford study found that, on average, SPACs retained only 66.7 per cent of the cash they raised in the initial IPO at the time of merger, after compensating the sponsors and early investors.

Such common practices provide great returns for early investors but leave a gaping dilution hole which is proven to be correlated with poor post-merger performance. Few exceptions exist in the market, yet many SPACs are skyrocketing on the slightest rumours of a deal.

The enigmatic nature of SPACs and their targets’ ability to bypass rigorous IPO due diligence have helped them avoid public scrutiny and thrive in a market where behaviours depart from fundamentals and are driven by the fear of missing out. As market sentiments cool, and the crowd comes to realise the actual enterprise value of a SPAC, share prices typically plunge – posting negative returns.

Another danger stems from the first – the way in which the majority of SPACs are currently structured gives rise to two sets of non-overlapping investors with different, often opposing incentives. The ‘early’ investors who bought into the SPAC at the time of its IPO primarily hedge funds and some private equity firms tended to exit at the time of merger to lock in positive returns.

‘Later investors’ tended to hold shares through the merger and suffer from poor post-merger returns in the short and medium term. Of the 89 SPAC IPOs that have completed mergers between 2015 to June 2020, the median return was a disappointing -36.1 per cent compared to the average after-market IPO returns on the Nasdaq in the same period.

Also Read: Traveloka in talks for a merger with Peter Thiel’s SPAC to go public: Report

Why would anyone invest in a structure that collects cash, looks for a company to take public, and then allow those who invested the cash to exit?

Historically, sponsors have not been very influential in the growth of the post-merger company. If a target company is promising, why would sponsors and early investors not commit in the same way a private equity firm controls a portfolio company? Unlike in a successful traditional IPO where the majority of investors would hold a long position, most SPAC IPOs have a significant portion of investors who are looking for a quick return on their investments. This calls into question the notion of ‘targets benefitting from their sponsors’ experience and resources’ that many sponsors tout.

SPACs are not necessarily a ‘cheaper’ way to go public. If shareholders bear the full brunt of the dilution inherent to a  SPACs’ designs, the cost of raising funds through a SPAC would far exceed that of a traditional IPO, which includes a 4-8 per cent underwriting fee plus a price premium at public offering, which averaged 18 per cent in 2019.

Who is it for?

Dangers aside, SPACs can still be effective vehicles to raise capital for young and truly innovative companies that may otherwise be unable to scale and grow. The pandemic has ushered in the start of another tech revolution as multiple industries are forced to change. With VC funding reaching record levels in high growth areas such as healthcare, remote work, and e-commerce, the need for SPACs will continue to rise in the future.

In Southeast Asia where ECM/IPO activity has been slow, SPACs can lend credibility to regional startups to tap capital markets. The key to success lies in (1) high-quality sponsors and (2) sound governance – quality sponsors can provide the network, mentorship, and experience necessary for companies to reach their potential, while good governance ensures that a post-merger entity continues to thrive.

Take the Grab-Altimeter Growth Corp partnership as an example: the SPAC merger will give Grab’s founder Anthony Tan 60.4 per cent of voting rights with a mere 2.2 per cent financial stake.

The arrangement resembles that of such companies as Google and Facebook, where a dual-class share structure have allowed founders to continue driving their companies’ visions. While there are potential downsides, such efforts to align incentives are a welcome change in how SPACs operate.

Investors reacted to the early to mid-phase of the recent pandemic-driven exogenous shock in a predictable way. With levels of business uncertainty high and interest rate expectations low, the TINA (acronym for ‘There is no alternative’) effect took hold in financial markets.

Also read: What does Peter Thiel-backed Bridgetown’s IPO mean for SEA’s startup ecosystem?

Investors piled into crowded assets (typically growth stocks such as SPAC-mergers) irrespective of fundamentals because other asset classes offered worse risk-adjusted returns. However, with strong economic recovery in sight and interest/inflation expectations set to rise, the allure of the TINA trade is fading rapidly.

Investors now see opportunities in other parts of the market, and it is hard to believe that the enthusiasm for SPAC IPOs will remain. Without a fundamental shift in how SPACs operate – to align incentives and minimise dilution, SPACs will remain unattractive.

Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. This season we are seeking op-eds, analysis and articles on food tech and sustainability. Share your opinion and earn a byline by submitting a post.

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From our community: About EVs, hemp burgers, IPO hacks, Agile manifesto and more…

Contributor posts

Thinking out loud: Are electric vehicles as sustainable as we believe? by Rachel Lau, Managing Partner at RHL Ventures

Although prices of batteries have significantly decreased, it has yet to reach the price-parity ratio suitable for mass adoption.

With the future of electrification on the horizon, existing traditional automotive manufacturers are converting and diverting resources to develop EVs. Together with new and upcoming companies that are either developing EVs and/or other related EV components such as battery swaps and charging stations, this space is heating up.

While Chinese EVs are focused on the hybrid model of battery swaps and charging stations, Tesla and other manufacturers in the West are adopting the Tesla model of building charging stations with high-powered piles.

How New Zealand-based Sustainable Foods is harnessing the power of hemp to produce meat products by Abhinav Mehra, VC and angel investor

Meanwhile, other proteins like pea, myco proteins, and lab-grown cultured meat are also showing growth in this region. To appeal to mainstream meat-eaters, plant-based meat products were developed to mimic favourite foods in familiar formats like burger patties and sausages.

However, as most of them remain processed packaged foods – questions are being raised on their nutritional value.One company in New Zealand, uses not only soy and pea but also hemp. The crop is rich in complex protein delivery and considered one of the most nutritionally complete food sources in the world.

Though Auckland-based Sustainable Foods is among the first to adopt it in the alternative meat industry.

Rise of fintech

Was 2020 the Amazon moment for fintech in Asia? by Sirish Kumar, founder and fintech expert

It is only a matter of time before mobile devices will become the default Point of Sale (POS) device for small business owners. The ubiquity of smartphones has expanded the ability to reach underserved communities easily. Today innovative embedded finance solutions offered by fintech that can leverage this mobile technology has eliminated the need for costly hardware and digitalise previously outdated payment acceptance points at a faster pace.

Fortunately, the transition is occurring at a time when moving online has never been easier. ASEAN governments have championed efforts to invest in core digital infrastructure in both rural as well as urban settings, where the vast majority of the region’s small and micro businesses are located.

From Dogecoin to Cardano: Should you take altcoins seriously? by Duckju Kang, CEO of ValueChampion

Just as there is a laundry list of cons, there are compelling arguments for bitcoin that institutions and everyday investors have been buying. The alternative to fiat, the bitcoin gold standard, and the potential to disrupt traditional banking services offer an attractive looking glass into the future.

So what about the almost 9,000 other altcoins out there?

New banking

Beyond marketplaces and motorcycles: Digital banks need to formalise ASEAN’s informal economies by Kaspar Situmorang, CEO, Bank BRI

Banks cannot rest on their laurels anymore and pretend their corporate and enterprise accounts will keep them afloat. No longer can they ignore microfinancing products due to high transaction costs. The super-apps are only a year into their digital banking war, but it won’t be long before they start sizing up bigger, more lucrative accounts.

Brick-and-mortar banks still have their legacy accounts and large, on-ground networks, as well as strong KYC experience to exploit. As licensed banks with high capital buffers to withstand economic shocks and decades of specialisation (as opposed to super-apps who roll out and shut down new verticals frequently), legacy banks have a lot of fight in them yet– if, and only if, they execute fully digital plays themselves.

Reimagining customer engagement for the AI bank of the future by Renny Thomas, Senior Partner at McKinsey & Company

To remain competitive, incumbent banks must become “AI-first” in vision and execution.

If fully integrated, these capabilities can strengthen engagement significantly, supporting customers’ financial activities across diverse online and physical contexts with intelligent, highly personalised solutions delivered through an interface that is intuitive, seamless, and fast.

These are the baseline expectations for an AI bank– specifically when it comes to customer engagement.

By reimagining customer engagement, banks can unlock new value through better efficiency, expanded market access, and greater customer lifetime value.

In a post-COVID-19 world, Vietnam is SEA’s latest hotspot for venture capital investment by Duyen Tran, Public Relations at Loship

Emerging from the pandemic while other countries are still in the midst of the crisis is giving Vietnam an advantage. The country’s startup ecosystem has been transformed from the second-least active to the third-most active among ASEAN countries, trailing only Indonesia and Singapore.

Also, profiles of investors making deals in Vietnam are increasingly diversified. If the majority of deals were from Singapore and Japan back in the 2017-2018 period, the market now is extremely vibrant with the participation of several investors from different parts of the world such as South Korea, China, even the Europe, Middle East, and Africa (EMEA) region. Many of them have made investments in Vietnam for the first time. Local investors are also active, participating in roughly 30 per cent of deals.

SME and startup growth

How tech can help smaller brands scale in SEA by helping them maintain customers’ loyalty by John Jess, CEO and founder of Stash

Tech innovations created to troubleshoot everything from labour-intensive marketing campaigns to the messiness behind multi-market rewards programs tend to not only be expensive but difficult to customise and manage as well. It is like handing an infantry soldier a tank and asking them to drive it into battle with no prior experience.

That is why tech tools need to evolve to keep up with the needs of smaller businesses. I am the founder of Stash, an incentive tech startup that’s changing the way businesses keep their customers loyal and committed.

We have been pioneering the forefront of the tech revolution with a suite of software products that include, among others a mobile-based platform that brings together over 1,000 reward partners onto a single screen.

How founder-CEOs can setup their startup for a successful IPO by Sophie Chiu, VC Investor, AppWorks

This piece of article is more written for growth stage founder-CEOs. However, if you’re an early-stage founder, I believe this article can also shed some light on what is ultimately valued the most in the sometimes arcane process of filing for an IPO.

Trust is what helps companies earn long-term loves in the public market. It’s a playing field with big guys that have already proved their sustainability, building layers upon layers of trust as each quarter passes.

Trust is cultivated not only through data (a result of management and operation), but also through market reaction. This means, executing a good or even strong IPO is indeed very important because the trust is then solidified from day one.

How diversification of business models is helping SMEs’ post-pandemic restructuring by Benjamin Wong, co-founder and CEO of Transwap

While globally it seemed to be that we were all in the same choppy seas, over the span of a few months, if not weeks, it was apparent that not all businesses were on board the same boat. The differences in the treatment to SMEs was glaring; Interest rates were slashed to new record lows with Central Banks channelling greater efforts into printing money.

The scale at which monetary interventions took place resulted in seemingly optimal financial conditions of the market and yet many companies are still suffering the repercussions of the whiplash brought about with the onset of the pandemic and. When it comes to funding, however, SMEs in the Southeast Asian region do not have access to the lion’s share but instead are at the mercy of the shorter end of the stick.

Building your startup culture

Startups should celebrate failures. This is how to keep the experimenting culture alive by Sagar Chaudhary, marketing and PR Manager at Chinaccelerator

In the startup world, things move at a rapid pace and ideas alone do not bring success. Success requires implementation and the right implementation process requires different business experiments in order to test and validate those ideas.

Experimentation can be as small as tweaking the font on a website or as big as pivoting the entire business, as long as these are steps towards a predetermined goal.

Why it is time to reinvent The Agile Manifesto to answer challenges of a remote team by Cliff Berg, founder of Agile 2

Organisations today have embraced agility as a strategic imperative. For many, the Agile Manifesto is one of the sources of guidance on how to achieve agility. Yet, the Agile philosophy strongly favours working with others in person. This manifests through the “Agile team room” and the preference for face-to-face communication.

But these preferences are not backed by any research or evidence: they are assumptions of those who crafted the original Agile ideas and the various practices that evolved from those ideas.

It turns out that collaboration in an Agile team room is actually less than in a more traditional setup.

Smaller brands should have that option too. That is why I’m highlighting some of the ways businesses can scale sustainably and intelligently in 2021, to make the most of their digital transformation.

Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. This season we are seeking op-eds, analysis and articles on food tech and sustainability. Share your opinion and earn a byline by submitting a post.

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

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Building the rainbow bridge: How businesses can foster Diversity & Inclusion in the workplace

For LGBTQ+ professionals, the unfortunate reality is that the discrimination that they face in their personal lives can also be found in the workplace. This phenomenon — known as the “rainbow glass ceiling“– can prevent them from progressing in their career and realising their true potentials.

“Overt homophobia and indirect aggressions at the workplace do happen and the trickle-down effects are real,” Kennede Sng, co-host of Singapore-based LGTBTQ+ podcast series The SG Boys, tells e27.

“For one, identity self-censorship is something that LGBTQ+ persons struggle with. This refers to queer individuals hiding aspects of themselves, sometimes even going as far as presenting an untrue version of themselves out of fear of exclusion or being denied opportunities,” adds Sng.

Even in Thailand, a Southeast Asian country that is perceived as having a relatively open attitude for the community, LGBTQ+ professionals are going through a similar struggle.

In an interview with e27, Best Chitsanupong, founder/director of Chiang Mai-based youth organisation Young Pride Club, explains the barriers that LGBTQ+ fresh graduates faced when applying for jobs. She gives the examples of university students who were unable to wear clothes that reflect their gender identity in their transcript or certificates, making it harder for them to apply for internships or jobs.

“She applied for a job in several companies but received no replies. She assumed that this is probably because these companies may not be finding match between her application and identity. She eventually got rejected,” Chitsanupong explains.

According to her, this is in line with the findings of a UNDP study on discrimination and social attitudes towards LGBTQ+ people in Thailand.

“The survey revealed that non-LGBTQ+ respondents have favourable attitudes towards LGBTQ+ people and support equal right and equal access to services for LGBTQ+ community. This supports drop when it comes to accepting LGBTQ+ people as family members, fellow workers, students and social acquaintances,” the report reveals, citing both formal and informal discrimination faced by LGBTQ+ people in Thailand.

Also Read: This gay founder is creating a safe media platform for LGBTQ community in SEA

Things are no different in other parts of SEA either; in Indonesia and the Philippines, LGBTQ+ professionals are also forced to hide their gender identities, and this practice has a profound impact on their career progression.

“In the Philippines, for instance, a number of companies require their trans employees to wear uniforms that match their assigned sex at birth, lest they lose their jobs. One of our employees shared her experience as a trans-person in her previous company. She received a memo for using the women’s comfort room. She was further asked to use the comfort room dedicated to people with disabilities instead,” says Victoria Alcachupas, Vice President of Business Development, People Branding, Marketing, and Communications, at TaskUs.

So what can businesses do to ensure that employees of all background can strive in a safe and supportive environment?

In this Pride Month Special series, e27 speaks to companies and NGOs about building Diversity & Inclusion (D&I) in the workplace, and what LGBTQ+ professionals need and how employers can meet that.

What D&I are made of

Before we get to the details of what a company that has successfully implemented D&I looks like, we can start by pointing the result that they can achieve by having an inclusive workplace.

GAYa NUSANTARA, an Indonesia-based NGO advocating for the LGBTQ+ community in the country, gives e27 the parameters of such an organisation.

“We strongly believe that a company that has successfully implemented D&I has a wide spectrum of diversity in its employee roster, which ranges from diversity in geographical presence, ethnicity, culture, gender and sexuality, religion, age as well as physical and mental disability,” says Purba Midnyana, Communications Officer at GAYa NUSANTARA.

“There should also be a high happiness index that leads to a lower turnover rate; this is due to a high sense of ownership in cultural and environmental aspect [of a workplace],” he continues, citing a 2018 report by McKinsey about diversity in the workplace.

Sng of The SG Boys shares the five traits of an inclusive workplace. These workplaces have:

1. An established code of conduct among employees that explicitly bans discrimination on the basis of sexuality and gender identity.

2. Employee networks or initiatives that allow LGBTQ+ persons and allies to connect — which is especially relevant for larger companies with existing D&I initiatives.

3. Continuous effort to reduce bias in performance reviews

4. A signal of allyship from senior management, which can start from something as simple as introducing themselves in preferred pronouns and inviting others to do so.

5. An internal channel to flag concerns as the standard HR avenues are often not enough to create a safe space for conversation.

In implementing D&I in the workplace, Sng puts emphasis on the importance of collaboration between LGBTQ+ professionals and allies which can be facilitated by the management.

Also Read: Riding the irony: Can Indonesian GO-JEK afford supporting LGBTQ rights in a country that condemns it?

“Speak to management on creating spaces where LGBTQ+ persons and allies can gather and share ideas. It truly takes a village. A ‘grassroots’ strategy will help to put initiatives into practice and can show how LGBTQ+ concerns are actively represented in the company,” he explains.

Getting it right

But today, especially in the SEA tech startup ecosystem, is there any example of companies that have done it right?

Singapore-based proptech startup 99.co is one that allows its employees to express their gender identities starting from the use of pronouns. While the company is yet to provide spouse benefits due to several constraints, it encourages employees to bring their partners and families, same-sex and otherwise, to company events.

“Every new LGBTQ+ employee that joins us is fully aware of our culture, hence it allows them to be at ease quickly and become comfortable with sharing their preferred pronouns with other colleagues during their first week at work. Once they have made it clear on their preferred pronouns, everyone plays a part in being conscious and correcting others when the wrong pronouns are used,” 99.co COO Yan Phun explains to e27.

“Our People/HR team also has an open-door policy for anyone who faces issues at work, including discrimination, and they can make a report anonymously should they feel uncomfortable to reveal their identities,” Phun adds.

The principles of D&I that the company is embracing can also be seen in the products and campaigns that they are launching for their customers. For example, 99.co runs an annual “Home for All Campaign” to raise awareness for the discrimination faced by LGBTQ+ individuals at home and in Singapore.

It also introduces features such as the “Diversity Friendly” tag in its property platform. The feature started out as the “All Races Welcome” tag in 2016; its creation was inspired by 99.co CEO Darius Cheung’s personal experience with racial discrimination from agents and landlords.

“As our company and audience base grew, we saw an increase in discrimination faced by other minority groups outside of race and felt that the tag needed to evolve as well to address these groups. Although this tag remains optional for agents and landlords and it is not a comprehensive solution to the larger issues, we felt that it was the least we can do to raise awareness and create a safer space,” Yan Phun elaborates.

“Hence, we decided to relaunch this tag under a new name and also include an info tip to the tag that explains what this tag stands for. There was no resistance within the team when we decided to roll this out and it was like a matter-of-fact that this should be done.”

Also Read: “Diversity and inclusion aren’t getting enough airtime in SEA’s workplaces”

TaskUs, a digital outsourcer, was one of the first companies in the Philippines to offer healthcare benefits to LGBTQ+ partners.

“During the time when this practice wasn’t common, we worked with our HMO partner to come up with a plan that would cater to our employee’s nominated beneficiaries regardless of the absence of a SOGIE law/ordinance,” Alcachupas explains.

Apart from that, the company also allows employees to use their pronouns in both formal and informal settings, and have even introduced gender-inclusive restrooms and sleeping quarters in their TaskUs Philippines sites.

It also has an employee resource groups (ERGs) called Unicorns@TaskUs, which consists of LGBTQIA+ employees and allies. The ERG creates programmes, organises events, and helps leadership craft policies on D&I.

“Each ERG has an executive sponsor that supports the initiatives of its members and puts it forward to the agenda of leadership teams. Apart from securing budget for ERG initiatives and projects, executive sponsors represent the group’s interest during the creation and review of company policies and activities,” says Alcachupas.

“By having executive sponsors, members of ERGs can be assured that they have someone at the table of decision-makers to empathise with their needs and to voice out their feedback and policy suggestions. As stakeholders, ERG members are also consulted on how these policies will be carried out throughout the organisation.”

For these companies, having an inclusive work environment does pay off.

“Having an inclusive environment definitely improves our employees’ productivity, as they are able to focus on their work and put in 100 per cent when they are being their authentic self. This also promotes transparency and eliminates unnecessary resistance caused by fear of being misgendered or misunderstood when it comes to cross-team projects,” says Yan Phun.

“As a company, this has also helped us attract various talents from the LGBTQ community who applied to work with us specifically because of our inclusive culture.”

After the rain

Certainly, this was only the beginning. While some companies in SEA have started to embrace D&I policies in their operations, there is still a need to continue the conversation about this issue.

It was still fresh in our mind when a Gojek executive received a backlash for speaking up about D&I practice in their company several years ago.

In building D&I, Alcachupas puts an emphasis on three things. Firstly, the initiative has to come from the top; secondly, the management should always do their best to listen to the employees; and lastly, as leaders they need to start the conversation.

“Apart from lending an ear, letting them know that they have a voice is vital in terms of helping them grow professionally and personally. This will also establish a safe and mentally healthy environment for your employees,” she stresses.

Also Read: How to use Maslow’s hierarchy of needs to drive resilient leadership in 2021

“Our difference makes us an asset, not an opportunity to meet a diversity quota. Ultimately, everyone wants to be recognised and valued for the skills they bring to the table. It is my hope that anyone who identifies with being on the LGBTQIA+ spectrum steps into their office feeling celebrated, not hindered, by their identity,” says Sng.

Ideally, as a champion for innovation and disruption, the tech startup ecosystem should in the forefront of this movement. As we continue to seek ways to improve the way we work –to realise the #futureofwork– D&I should be a key agenda for every business.

Especially as the pandemic provided us with the opportunity to look within and re-examine how we are doing things.

Image Credit: Clem Onojeghuo on Unsplash

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In brief: Nium to buy UK startup Ixaris; GoTo names Jacky Lo as CFO

Nium to acquire London-based payments optimisation platform Ixaris

The story: Singapore-based B2B payments platform Nium has signed a definitive agreement to acquire Ixaris, a UK-based payments optimisation firm. The transaction is expected to close early in the third quarter of 2021, subject to customary closing conditions.

Also Read: BRI, Visa join remittance firm Nium’s Series C round to facilitate tuck-in acquisitions

Objetive: Temasek-backed Nium aims to provide one API integration to access the world’s payments infrastructure. Through the Nium platform, customers in a variety of sectors can quickly deploy new financial services from card issuance to cross-border payments.

About Ixaris: It provides flexible funding and payment methods that help airlines and online travel agents (OTAs) reduce surcharges, earn rebates, flatten FX fees, and streamline reconciliation.

Ixaris claims it have issued more than 10 million virtual cards in 2019. Since inception, it has processed 24 million transactions for 200+ customers in 40+ countries.

Former OneConnect CFO joins GoTo

In the new role: Working from its Jakarta office, Lo will lead GoTo’s finance function and teams across all areas including tax, treasury, financial planning, accounting and procurement.

Who is Lo: Lo was previously the CFO of OneConnect Financial Technology, a technology-as-a-service platform for financial institutions and an affiliate of Ping An Insurance of China, for which he led its New York Stock Exchange (NYSE) listing in 2019.

Also Read: Gojek, Tokopedia confirm merger with the launch of GoTo Group

Before that, he was the CFO and Treasurer of Yum China Holdings, one of the largest restaurant companies in China, where he managed a finance team of over 600 employees and led the NYSE listing in 2016.

Lo worked for Ernst & Young for 15 years, including as a partner and deputy director in the Asia Pacific Capital Markets Center, at which he specialized in US SEC reporting and Sarbanes Oxley compliance requirements.

About GoTo: Formed on May 17 through the combination of Gojek and Tokopedia, GoTo is a technology company with the leading marketplace in Indonesia. The agreement was the largest ever business combination in Indonesia, the largest between two Asia-based internet media and services companies to date and created an ecosystem that combines e-commerce, on-demand and financial services.

Image Credit: Nium

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