Visit Echelon X to learn more about the program. Get your tickets here!

In today’s dynamic landscape, countless innovative ideas with the potential to profoundly impact the world emerge from early-stage startups. However, the journey from conception to realisation is fraught with challenges, particularly the barrier posed by limited capital.

Early-stage startups often grapple with a host of challenges arising from the lack of capital. These hurdles encompass various operational aspects, including hiring skilled personnel, developing products or services, and scaling the business.

With limited financial resources, startups face the difficult task of prioritising where to allocate funds, often leading to underinvestment in critical areas like marketing or research and development. This financial constraint can impede the startup’s ability to gain traction in the market, innovate, and effectively compete against more established players. Furthermore, the pressure to conserve capital can stifle creativity and risk-taking, limiting the startup’s potential for growth and success.

Also read: Strategic outsourcing: How iScale Solutions helps you grow your team

In addition to the challenges posed by limited capital, early-stage startups often struggle with accessing the necessary resources to execute their business plans effectively. From securing office space and equipment to investing in technology and infrastructure, startups require substantial upfront investment to establish their operations. Without adequate funding, startups may find it challenging to acquire the tools and resources essential for their day-to-day operations, hindering productivity and growth. Moreover, the lack of capital can limit the startup’s ability to attract top talent, as competitive compensation packages may be out of reach without sufficient funding.

As a result, the world risks missing out on the profound societal benefits and advancements that these innovative startups could otherwise deliver. Thus, the critical importance of adequate capital in empowering these early-stage ventures to thrive and positively impact the world cannot be overstated.

Helping startups reach their full potential

Venture capitalists (VCs) play a pivotal role in addressing the challenges brought about by the lack of capital for early-stage startups. Beyond providing much-needed funding, VCs offer invaluable expertise, industry insights, and strategic guidance to help startups navigate the competitive landscape. Their extensive networks can open doors to potential partnerships, customers, and additional sources of financing, accelerating the startup’s growth trajectory. Moreover, VCs often take a long-term approach, providing ongoing support and mentorship to help startups overcome obstacles and pivot when necessary. By serving as catalysts for innovation and growth, VCs significantly enhance the chances of success for early-stage startups.

Championing innovation, VCs are dedicated to nurturing startups and guiding them toward success. Their mission extends beyond mere financial investment, aiming to empower entrepreneurs to realise their visions, drive economic growth, and effect positive change in society at large.

Taking on this mantle is Antler, the investor backing the world’s most driven founders from day zero to greatness. Founded on the belief that people innovating is the key to building a better future, Antler partners with exceptional founders across six continents to launch and scale startups that address meaningful opportunities and challenges.

Also read: How AppsFlyer helps brands navigate a rapidly evolving market

As the most active early-stage VC globally, Antler has invested in more than 1,000 startups across 30 cities worldwide including Singapore, Indonesia, Vietnam, and Malaysia in Southeast Asia. Antler’s global community backs people from the beginning with co-founder matching, deep business validation, and pre-seed capital. Besides being the earliest backer for startups, Antler is also a long-term capital partner that provides expansion support and scale-up funding to breakout companies from Series A onwards.

Aligned with Antler’s commitment to empowering today’s most exciting innovators, they will be joining Echelon X this May 15 to 16 at the Singapore EXPO where they will be engaging with ecosystem stakeholders to meet and potentially collaborate on the next great thing.

“We back the world’s most driven founders from day zero to greatness. Apart from scouting for them during the event, we will also be showcasing selected founders of our portfolio companies to showcase their startups to investors present at Echelon,” shared Ryan Thoo, VP for Marketing & Growth at Antler.

Get to know Antler and more at Echelon X

Keen on meeting founders, entrepreneurs, startup early-employees, domain experts, startup operators, CEOs, CTOs, CBOs, CCOs, COOs, country managers, and heads of different departments, Antler is looking forward to identifying and backing the most promising entrepreneurs and tech talents where they will be showcasing how Antler is a strong option to build startups with and get deal flow from.

Antler is one of the many exciting industry leaders from across the Southeast Asian region who will be joining us for Echelon X. Joining Antler are other key leaders, visionary entrepreneurs, and groundbreaking startups from all corners of the region who will be gathering together for two packed days. Happening on May 15 to 16 at the Singapore EXPO, Echelon X will feature dedicated content stages, exhibitions, panel discussions, and more — all to support and empower the tech startup ecosystem with actionable insights through a series of knowledge-sharing activities.

Also read: What is Remote? Meet this top global HR platform at Echelon X!

Whether you’re eager to expand your knowledge, network with key players from the tech startup scene, or showcase your innovative ideas, Echelon X offers an unparalleled experience. Join us as a participant or an official partner by securing your spot now on our official page. Together, let’s embark on a journey to shape the future and create a lasting impact.

Join us at Echelon 2024, where innovation knows no limits, and the possibilities are endless!

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Photo by Sora Shimazaki via Pexels

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This week witnessed a flurry of venture capital activity in Southeast Asia, with startups from various sectors raising significant funds to fuel their growth and expansion plans. From Singaporean proptech innovators to Vietnamese SaaS providers and Thai digital marketplaces, these startups are poised to make waves in their respective industries.

Let’s take a closer look at the standout fundraisers and their ambitious visions for reshaping the regional business landscape.

Probiotics (Singapore)

Probiotics is an antimicrobial peptide technology startup in Singapore. It is engaged in researching and producing recombinant antimicrobial peptides, using novel biotechnology to reduce the manufacturing costs of antimicrobial peptides.

Its first product targets the aquaculture industry, renowned for its antibiotic abuse, where bacterial infections cost shrimp farmers billions in yearly losses.

Funds raised: US$6.2 million
Investors: Seventure Partners, SEEDS Capital, The Yield Lab Asia Pacific, GrainCorp Ventures, Farmabase, Trendlines Agrifood Fund, Ponderosa VC, and others.
Round: Series A

CNV (Vietnam)

Founded in 2020 by Nguyen Tuan Phu and Do Dang Khoa, CNV offers digital transformation SaaS products and marketing growth services to assist enterprises in Vietnam to achieve sustainable growth via marketing, loyalty and e-commerce activities.

CNV currently serves over 2,0000 customers, including multinational corporations, local enterprises, SMEs, MSMEs, and government agencies, helping them optimise their client-facing activities and backend customer data platform analysis activities.

Funds raised: US$1 million
Investors: Wavemaker Partners
Round: Not specified

Mindverse (Singapore)

Founded by former Meta execs and top AI researchers in 2022, Mindverse has developed Artificial Diversified Intelligence (ADI) using the Large Personalisation Model (LPM). Mindverse offers two products: MindOS Studio, which helps businesses create AI-native websites with dynamic, personalised chat experiences, and Mebot, which offers individuals an individualised experience that matches their unique nature. It acts as a digital “second brain” to enhance productivity by learning and analysing user habits, ideas, and preferences.

Funds raised: US$5 million
Investors: Seed
Round: Square Peg (lead)

WYZauto (Thailand)

WYZauto is an online tyre marketplace for vehicle maintenance businesses in Thailand. Launched in April 2021 in Thailand and May 2023 in Malaysia, WYZauto connects two-wheeler and four-wheeler vehicle maintenance businesses with top tyre brands. The company works with numerous wholesalers and brands, helping them increase their e-commerce presence and reach new customers.

Funds raised: US$2.25 million
Investors: Vynn Capital, Vincent Lee, Oak Drive Ventures, Kaya Founders
Round: Pre-Series A

RedDoorz (Singapore)

Founded in 2015, RedDoorz is a technology-driven hotel management company which works with hotels to provide affordable and reliable stays in all major cities and destinations across the region. RedDoorz has operations across more than 80 cities in four countries in Southeast Asia, namely Singapore, Indonesia, the Philippines and Vietnam.

Funds raised: US$28.2 million
Investors: Asia Partners, Mirae Asset Venture Investment, others
Round: Not specified

TradeTogether (Singapore)

Led by CEO Geoff Ira, TradeTogether is a Web3 digital asset management company. The TradeTogether Bitcoin Advantage Fund allows clients to invest in Bitcoin with added protection against market downturns, offering a better experience than traditional ETFs. The startup also provides high-net-worth individuals and financial institutions with transparent solutions in tokenised bonds and Web3 products for receivable financing, moving away from the DeFi platform model.

Funds raised: Undisclosed
Investors: XVC Tech
Round: Not specified

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.

The post Southeast Asian startups secure millions in venture funding this week appeared first on e27.

Building strong communities based on shared values is essential for tackling urgent issues like disaster response, climate action, and access to water. It drives societal change by fostering accountability and active citizenship. Moreover, it boosts political involvement, strengthens social ties, stimulates economic development, expands educational prospects, provides family assistance, and enhances communal connections.

Active community participation offers numerous advantages. For example, engaging in initiatives like knowledge sharing and collaboration fosters belonging, enhancing mental well-being, empathy, and resilience. A survey found that 61% of respondents experiencing a strong sense of belonging through community engagement have excellent mental health. Additionally, involvement in the community cultivates skills, promoting personal and professional growth and empowerment for independent living. Entrepreneurs are more likely to succeed when actively participating in communities and networks that foster entrepreneurial learning and business opportunities.

SAFE STEPS D-Tech Community Hub: A One-Stop Platform to Tackle Disaster Risk Reduction

SAFE STEPS D-Tech Community Hub is a pioneering initiative poised to redefine Disaster Tech (D-Tech) through the fusion of technology, innovation, and community collaboration. At its essence, the SAFE STEPS D-Tech Community Hub transcends the conventional notion of a mere platform; it represents a ground-breaking endeavour. It stands as the world’s first universally accessible space where stakeholders in the disaster tech sphere converge. From emerging start-ups to established entities, from investors to policymakers, this hub serves as a centralised nexus for sharing expertise, pooling resources, and fostering concerted efforts toward a singular objective: building a more resilient world for the future.

Also read: Navigating In-Store Innovation: A Dive into Ingenico’s StartupIN Program

The SAFE STEPS D-Tech Community Hub was among various initiatives initiated by the Prudence Foundation, in partnership with e27, the International Federation of Red Cross (IFRC) and Amazon Web Services (AWS).

Introducing SAFE STEPS D-Tech Community Hub through the Virtual Launch

The virtual launch of the SAFE STEPS D-Tech Community Hub, taking place on March 26 via Zoom, was an enlightening event, uniting stakeholders dedicated to advancing disaster resilience. The event brought together individuals, start-ups, experts, and organisations to exchange ideas and forge partnerships for a safer world. Emphasising collaboration, the event showcased community-driven innovation in disaster response, featuring reputable speakers including Diana Guzman from Prudence Foundation, Sanjay Srivastava delivering the keynote address on behalf of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Jaron Lim from Wateroam, Josh Kao from LivingWater Systems, Anthony Chua from StratifiCare, among others.

Also read: Strategic outsourcing: How iScale Solutions helps you grow your team

Through knowledge-sharing and cooperation, the hub empowered stakeholders to leverage collective expertise and resources for sustainable solutions. A key feature of the event was the panel discussion “Leadership in Disaster Tech,” where speakers offered insights on how technology and partnerships can combat natural disasters effectively, urging start-ups, organisations, and investors to lead the charge in fostering resilience. 

Key Takeaways from the Virtual Launch

In the keynote presentation, Sanjay Srivastava highlighted that in an era characterised by escalating disaster emergencies, societies struggle with increasingly complex risks that pose multifaceted challenges to people, cities, infrastructure, and ecosystems. Moreover, risk amplifiers such as climate change, rapid urbanisation, and residual vulnerabilities exacerbate the severity of these threats. For instance, research pointed out that a 1.50C increase in average global temperature would place 85% of the global population at risk, and cause an annual loss of up to $953 billion.

However, amid these challenges, there exist significant opportunities to build resilience. “Technological innovations are rapidly transforming the landscape, offering new solutions and avenues for mitigating risks. Moreover, the convergence of technology and data ecosystems presents opportunities for harnessing vast amounts of data through cloud computing and big data. Furthermore, the democratisation of platforms allows for the scaling of technology and data platforms, facilitating policy reforms and empowering diverse stakeholders to contribute to resilience-building efforts,” expressed Sanjay Srivastava.  

In fact, participating speakers also shared their insights and innovative solutions to leverage the opportunities to mitigate rising obstacles. For example, Jaron Lim from Wateroam shared about how its easy-to-use and portable water filters help to provide safe drinking water in rural and disaster-stricken areas. Teaming up with humanitarian organisations like the Red Cross and World Vision, the company has supplied safe water to 100,000 people in 38 countries. “For our journey, collaboration, the generous financial support and networking opportunities offered by Prudence, e27, and more are critical, empowering us to reach our goals and serve the community. We are very grateful, and we would also want to invite everyone to join us in the Community Hub space to tackle the world’s water crises head-on together,” commented Jaron Lim.

Also read: How AppsFlyer helps brands navigate a rapidly evolving market

Similarly, Anthony Chua emphasised how Stratificare tackled a vital issue in Dengue disease management: predicting progression from mild to severe dengue. “Thanks to networking opportunities with leading physicians and industry advisors through initiatives such as the SAFE STEPS D-Tech Community Hub, Stratificare succeeded in inventing the world’s first patented dengue prognostic test to save more lives,“ shared Anthony Chua.

As announced during the virtual launch, participants joining the hub can also enjoy various perks such as networking opportunities for all stakeholders in the D-Tech space and providing access to valuable resources such as training, mentorship, funding, and the SAFE STEPS D-Tech Awards.

By joining the community, participants in the D-Tech space can help to create lasting solutions and partnerships that safeguard communities and contribute to a more resilient world for the people of the future.

After the virtual launch

Ever since the launch of the hub, the following startups joined the community as part of their commitment to help sustain our planet: Wateroam, LivingWaters Systems, StratifiCare, Solnovation Analytics Sdn Bhd Malaysia, DayZero Water, SI Analytics, Usher Technologies, H3 Dynamics, Kinetic Analysis Corporation, QUICKBLOCK, and Kacific Broadband Satellites among others.

A number of partners also became members of the community to contribute their work as well to global disaster resilience: International Federation of Red Cross (IFRC), Amazon Web Services (AWS), ALSiSAR IMPACT, Stimson Center, iCube Innovation, Ideaspace & QBO, Plan International, Asian Venture Philanthropy Network (AVPN), and Philippine Disaster Resilience Foundation (PDRF) among others.

If you’d like to know more and be part of the growing SAFE STEPS D-Tech Community Hub, be sure to visit www.safestepsdtech.com.

The post D-Tech Community Hub: Safeguarding communities through collaboration appeared first on e27.

Skills gap continues to become a problem in various markets, but an AI solution might be the answer that they are looking for. This is the exact premise of what Primeskills, an Indonesia-based startup, offers to its users.

“Our vision is to solve a well-known problem called the skills gap between industry and graduates. This gap is caused by the fact that graduates are not learning the practical soft skills that are necessary for today’s workforce. We use AI and immersive tech to help people learn these skills in a fun and engaging way. Gamification can be used to make learning more enjoyable and to motivate people to keep learning,” explains CEO William Irawan in an email to e27.

“Immersive tech can provide a more realistic and engaging learning experience than traditional methods. This can help people to learn more effectively and to retain the information that they learn. AI can be used to personalise the learning experience and to provide feedback to learners. This can help people to learn at their own pace and to get the most out of the learning experience.”

Primeskills offers three main solutions to tackle the problem of the skills gap: Immersive Module Library (Offered through licensing business models), LMS + VR Analytics (Offered through subscription), and Custom Module Creation (Offered through services and licensing).

These solutions work by placing people in a focused VR environment and analysing their interaction with AI-powered characters. It then analyses the user interaction data to provide personalised feedback and analysis that helps them upskill 4x faster than other alternatives, says the CEO.

Also Read: In the age of AI, which human skills increasingly stand out?

“Our users are currently enterprise employees and university students who are looking to improve their soft skills in order to land their dream jobs or climb the corporate ladder. We often acquire new users through word-of-mouth from our clients and portfolios being showcased, social media, and B2B events. We are always looking for new ways to reach our target audience and help them achieve their goals,” Irawan elaborates.

Primeskills says that it has implemented its solutions to over 10,000 people, distributed over 300 headsets to various sectors in Indonesia (including enterprises, government, and universities), and achieved over 90 per cent high satisfaction ratings from customers.

Behind the solutions

Primeskills was co-founded by Irawan, CTO Feraldo (who is a software engineer with a passion for AI and advanced technology that has a special focus on VR/AR development), commissioner Kiwi Aliwarga (a business advisor who is passionate about technopreneurship in Indonesia), and COO Windy Widjaya (who has a background in branding and analytics).

As one of the companies that participated in the EduSpaze accelerator programme, Primeskills sees the value in participating in the programme that has introduced them to mentors, trainers, and experts.

“Primeskills is committed to providing immersive and accessible soft skills solutions through various platforms. We are planning to integrate AI to help people identify their skills and personalise their learning experience,” Irawan closes.

“Generative AI technology also helps us produce modules faster and deliver solutions to our partners. We are always looking for ways to improve our business model and route-to-market strategy.”

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Image Credit: Primeskills

The article was first published on September 7, 2023.

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As a junior partner at McKinsey, Ani Bhalekar used to travel between Singapore and Brisbane weekly. Frequent journeys resulted in his back pain, and he was advised to do full-time physiotherapy.

However, full-time therapy was not practical for a frequent traveller like him. Online physiotherapy was the only option, but scheduling was an issue. This motivated him to develop a virtual physiotherapist.

Also Read: Is AI the end of originality or a new dawn for creativity?

Based in Singapore, EliteFit.AI aims to democratise fitness by providing a personal trainer to everyone across physiotherapy, rehab, assessments, sports coaching, dance training, and yoga. Users can use this browser-based application on any device — smartphones, tablets, and laptops — and exercise anytime, anywhere. No additional devices or app downloads are required.

The user is given an accuracy score based on their performance. If the user makes a mistake, it provides prescriptive feedback in terms of audio cues and stickers.

“EliteFit.AI can work across 10,000+ micro-movements, and we have over 3000 full-length videos available on our platform,” Bhalekar said. “Initially, it was challenging to create the product because its model was limited by the number of movements it could recognise. Throughout multiple iterations of training on thousands of videos from the database, it is now a generalised AI model which can train on any video provided.”

Currently, most of its users come from its distributor partners — fitness companies, healthcare companies, insurance companies, the public sector, and sports organisations. The product can be integrated into healthcare, fitness, insurance, and sports apps/sites.

Since Elitefit.Ai is a SaaS tool, the startup sees a massive opportunity to expand into other parts of the world and scale across millions of users across different industries.

Bhalekar also claimed that EliteFit.AI is already profitable.

Also Read: Safeguarding your organisation in the age of increasing AI

The startup has so far received an SGD300,000 (US$220,000) SportSG cash grant. It now looks to raise US$5 million in venture capital to build and expand the team, foray into the US, and experiment with B2C value propositions.

Leveraging AI, EliteFit.AI offers a virtual personal trainer accessible on any device, providing personalised fitness training without appointments or downloads. This browser-based solution empowers users to exercise anytime, anywhere, with millions of users on the horizon and global expansion planned. EliteFit.AI plans to transform not just fitness accessibility, but also its bottom line, achieving profitability already.
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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.

The post McKinsey alum’s EliteFit.AI aims to democratise fitness with virtual physiotherapy appeared first on e27.

Singapore-based AI startup Mindverse has secured US$5 million in seed funding from Square Peg, according to a Business Times report.

The funding will be invested in R&D to advance its large personalisation model.

Founded by former Meta execs and top AI researchers in 2022, Mindverse has developed Artificial Diversified Intelligence (ADI) using the Large Personalisation Model (LPM). This technology aims to ensure human uniqueness and diversity remain at the centre of AI development.

Also Read: McKinsey alum’s EliteFit.AI aims to democratise fitness with virtual physiotherapy

Kisson Lin, co-founder and COO of Mindverse said in a LinkedIn post: “Since 2020, Dr Felix Tao (co-founder and CEO) has been pioneering a neuro-symbolic LLM framework at his lab, leading to our advanced Agent framework. By 2022, we introduced MindOS, envisioning AI agents as autonomous entities defining the next-gen operating system.”

“Early 2023 saw the launch of MindOS beta, outpacing competitors like GPTStore. We’ve pinpointed limitations in large models’ long-term memory affecting agent adoption and service quality. Discoveries led to two key applications: AI personal assistants and dynamic AI web experiences,” she added.

Mindverse offers two products: MindOS Studio, which helps businesses create AI-native websites with dynamic, personalised chat experiences, and Mebot, which offers individuals an individualised experience that matches their unique nature. It acts as a digital “second brain” to enhance productivity by learning and analysing user habits, ideas, and preferences.

Also Read: Unlocking efficiency: How Gen AI-powered email automation revolutionises customer service

“Mebot acts as a personal memory assistant, simplifying the management of thoughts and memories, which is ideal for creators and managers. It’s available on the web now and will be on iOS this month. MindOS Studio offers businesses a no-code solution to deploy dynamic, interactive web agents, boosting user engagement and conversion rates,” Lin noted.

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The post Mindverse lands US$5M for its personal memory assistant Mebot appeared first on e27.

Each year, Bain & Company identifies “insurgent brands” in America’s consumer goods sector, known for their independence from large corporations and for challenging market leaders or creating new categories. 

Indonesia is predicted to become the fourth-largest economy by 2045, with GDP per capita reaching US$7,500 to US$10,000 by 2030, presenting a growing market for sectors like wellness and luxury goods due to rising disposable incomes.

Melina Anlin is VP of Investment at AC Ventures and a former Senior Manager at Bain. She recently joined an episode of the Indonesia Digital Deconstructed podcast to discuss the market dynamics of the local consumer sector and the rise of insurgent brands. 

Cultivating bargaining power

Zooming in on the F&B sector, Anlin pointed out that insurgent brands tend to challenge norms by offering unique product narratives and leveraging digital marketing and social media to authentically connect with modern consumers.

She highlighted that early traction online will often lead to increased ease of entry to more traditional, offline retail channels.  

Anlin said, “Not just in Indonesia, but globally, e-commerce marketplaces and social media platforms like Instagram and TikTok are fundamentally changing how brands emerge and evolve, offering a cost-effective test bed for product and brand refinement with minimal initial capital.”

Also Read: Late-stage investments in Indonesia plummet to US$5.2M in Q1

“The digital-first strategy allows new brands to quickly adjust based on feedback, enhancing their online presence and customer loyalty. This may often allow them to more easily move to offline channels and attract inbound attention from traditional retailers, thereby cultivating bargaining power.”

The cost of agility

“The cost of establishing and maintaining an online presence has surged significantly,” said Anlin. “Notably, platform take rates have escalated from nominal fees to, in some cases, 10-15 per cent of each transaction, marking a steep increase in operational costs for brands. Gone are the days when the platforms absorbed shipping costs. These days, the decision of who bears the shipping costs – whether the brand or the consumer – adds another layer to how brands plan their online sales.”

She went on to highlight the growing competition on e-commerce platforms, noting the increasing need for strategic advertising and algorithm mastery to ensure ROI, a significant change from when gaining visibility was simpler.

Anlin said, “Around 20 new local beauty brands are launching every month in Indonesia alone. This proliferation of insurgent beauty brands is making competition much more intense if a brand wants to be featured on TikTok’s For You Page, for example.”

A silver lining

TikTok Shop’s entrance in Indonesia, with initially lower fees, offered cost relief and better advertising deals to brands. However, as competition increases, these advantages are diminishing with promotional costs stabilising across platforms.

Despite these challenges, Anlin still sees a silver lining in the form of digital platforms’ intrinsic agility and capacity for innovation. She said, “What remains unchanged is the dynamic nature of e-commerce and social platforms, allowing brands to test, learn, and pivot strategies in real-time. This agility allows insurgent brands to make smaller, calculated bets, refine their approach based on direct consumer feedback, and progressively solidify their market position.”

She contrasted this with the rigidity of offline expansion, “Once you’re locked into a contract in the offline world, that’s it. The flexibility instantly disappears.”

Digital natives and domestic value-adds

Discussing the direct-to-consumer (D2C) business model, Anlin sought to clarify a common misconception. 

“To be honest, I’m a bit allergic to the term D2C here in Indonesia. It’s something that gets thrown around loosely. True D2C involves selling directly to consumers without intermediaries, a model that’s most prevalent in the US. In Indonesia, however, many insurgent brands sell primarily through third-party e-commerce platforms, thereby not selling directly in the pure sense. If, at the end of the day, the customer still belongs to Shopee or TikTok, you cannot say a brand is D2C, especially if it does not own the customer data.”

Also Read: How Skor empowers Indonesians to take control of their financial well-being

That said, she also discussed how insurgent brands don’t necessarily need to win online to be successful. She pointed to a case study in the form of local granola and healthy snacks company Yava. 

“Indonesia’s local brands often export raw materials for processing and then re-import them for sale, which is costly. However, brands like Bali’s Yava are changing this by sourcing and processing everything locally. This strategy leverages Indonesia’s abundant resources, supports local communities, leads to premium local products in supermarkets, and offers consumers better prices while enhancing brand profit margins.”

Family-owned brands pass the torch

In the context of Indonesia’s longer-running, family-owned brands, Anlin explained that we are currently witnessing the “passing of the torch” from one generation to the next, which is important from an investment perspective. 

She explained, “Many of these businesses are capital efficient and financially stable, and with next-generation leaders open to external capital, there’s a significant opportunity. Investors like AC Ventures can offer growth capital and strategic support, aiding brands in scaling and improving operational efficiencies.”

AC Ventures already has multiple insurgent brands in its portfolio. For example, small home appliances brand Simplus has emerged as a top brand on TikTok, Shopee, and Lazada, tripling its sales in 2023, achieving profitability, and witnessing a record-breaking US$1 million in sales on a single day. Industry insiders are calling it the next “Philips of Southeast Asia.” 

Meanwhile, profitable brand Rosé All Day Cosmetics saw a 4x revenue growth in 2022 and more than 6x growth in 2023. The company went to market in 2017 on a bootstrapped budget of US$10,000. Due to strong performance against incumbents in the market, the startup recently raised a US$5.41 million funding round led by SWC Global.

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Image courtesy: AC Ventures

The post Digital natives and local power: The rise of insurgent brands in Indonesia appeared first on e27.

As Singapore’s small and medium-sized enterprises (SMEs) navigate the choppy waters of a dynamic global economy, they find themselves at a crucial crossroads. The thrust towards digitalisation is not just a trend but a lifeline as businesses increasingly turn to cloud computing, AI, and big data to enhance operations and unlock new market potentials. Yet, this digital evolution unfolds against a backdrop of formidable economic challenges.

According to the DBS Bank’s SME Pulse Check Survey 2023, the primary concerns for SMEs are rising global interest rates, identified by 50 per cent of respondents, and labour costs and availability, noted by 43 per cent. Furthermore, the Goods and Services Tax (GST) in Singapore saw an increase from seven per cent to eight per cent on January 1, 2023, and underwent another hike from eight per cent to nine per cent on January 1, 2024.

In response to these economic pressures, many SMEs are turning to digitalisation as a strategic solution. Approximately 32 per cent of SMEs aim to reduce business expenses and enhance operational efficiency through technological advancements this year. In recognition of these benefits, a notable 36 per cent of local SMEs have significantly digitised their operations.

Singapore’s economic narrative in 2023 was one of a narrow escape from a technical recession, inching forward with a 0.1 per cent growth in the second quarter after a 0.3 per cent contraction in the first quarter. This razor-thin margin underscores the urgency for SMEs to reimagine and reinvent.

In today’s economic landscape, innovation is not a luxury but a necessity for survival. SMEs are increasingly realising that adopting technologies and undergoing digital transformation is not just about keeping pace — it’s about staying ahead. It’s a critical response to a customer base that demands fast, intuitive, and seamless services.

Transforming challenges into opportunities: Strategies for SMEs to optimise cash flow and manage costs

In the rapidly evolving economic landscape of Singapore, SMEs face the dual challenge of staying competitive while managing financial pressures. To transform these challenges into opportunities, it’s essential for SMEs to adopt these three key strategies that optimise cash flow and manage costs effectively. Each of these strategies offers a unique avenue for SMEs to navigate and thrive in the current economic climate.

Gaining insights into cash flow

According to DBS’s SME Pulse Check Survey, ‘ensuring consistent cash flow and managing costs’ remains the top business priority for 62 per cent of SMEs in 2023, particularly in a persistently challenging business environment.

Also Read: Grab supports digital currencies top-ups under partnership with Triple-A

For many SMEs, understanding the nuances of cash flows is a complex task typically reserved for professional finance teams. However, given the size and resource constraints of SMEs, maintaining a full-fledged finance team is often not feasible. Fortunately, the relative simplicity of SME operations makes them ideal candidates for technological solutions.

Implementing a robust finance stack, which includes accounting software integrated with a spend management solution, can be a game-changer. Such systems enable SMEs to gain detailed insights into critical financial questions: How much cash is on hand? Where is the revenue coming from, and where are expenses going?

With access to almost real-time data on money movement, SMEs can analyse and improve their cash flow. Key considerations include evaluating whether customers are paying on time, assessing the fairness of credit terms, negotiating better terms with major vendors, and ensuring that spending stays within budget.

Strategic cash financial management

In an environment of rising interest rates, strategic deployment of excess cash into interest-bearing investments or deposits can yield attractive returns. By understanding their cash flow and anticipating upcoming business payments, SMEs can time their major cash outflows efficiently. This allows them to maintain a lower level of buffer cash and invest the excess in interest-bearing opportunities.

Additionally, for SMEs engaged in significant overseas trade, foreign exchange (FX) and bank charges can accumulate substantially. To mitigate these costs, SMEs might consider digital business accounts or remittance specialists offering improved FX rates.

Outsourcing accounting work

High labour costs in Singapore present a significant challenge for SMEs managing their finances. The average salary for a certified finance manager is around SG$91,000 (US$67,440), whereas engaging with an accounting firm can be much more cost-effective.

Also Read: Why a customer-centric digital marketing strategy is the way to go?

In fact, outsourcing accounting and financial management tasks to external agencies or adopting digital tools offers a cost-effective alternative. This approach reduces the overhead associated with an in-house finance team and provides access to professional financial expertise at a lower cost.

Digitalisation can also improve productivity and provide real-time insights into cash flow, which is crucial for effective financial management. However, digitalisation is not an easy process, and accounting is one of the easiest roles to start with.

Working with a digital outsourced firm can help accelerate this transition without the risk of business disruption. Embracing this digital approach allows SMEs to streamline their financial operations, ensuring they remain agile and responsive in a dynamic business environment.

Moreover, leveraging solutions like expense management cards can enhance fund allocation accuracy and help SMEs stay within budget for specific functions. By utilising these external resources, SMEs are free to concentrate more on core business activities, thereby fostering growth and innovation.

Embracing a digital future

In conclusion, Singapore’s SMEs stand at the forefront of digital proficiency, embodying the potential to pioneer in innovation and operational efficiency. By adopting the right mindset, leveraging appropriate tools, and utilising available support, these businesses are well-positioned to transform potential challenges into opportunities for growth and success.

This approach not only bolsters their individual capabilities but also contributes significantly to the broader economic landscape, reinforcing Singapore’s status as a hub of technological advancement and business excellence. 

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Last month, Singapore-based cultivated seafood company Umami Bioworks announced a merger with Shiok Meats, a renowned crustacean meat startup backed by Y Combinator, SEEDS Capital, and other high-profile investors. The development surprised many, given that the alt-protein market in Southeast Asia is still nascent and far from mature, its surface is barely scratched, and consolidation is still many years away.

Alternative protein — encompassing a wide range of products, including plant-based meats, insect-based protein, and cell-cultured meat — witnessed an upsurge in interest and excitement in the region in the past four to five years, attributable to a mix of societal, environmental, health, and ethical considerations. Nearly a hundred alt-protein companies currently operate in the region. Massive capital was poured into the space, with investments peaking in 2021 (US$103.8 million across 11 deals) and 2022 (US$178.8 million across 10 deals).

However, the investments witnessed a significant decline in 2023 (just US$9.5 million across six rounds) thanks to funding winter, leaving many alt-protein companies high and dry. Among them, cellular agriculture and cultured meat startups felt more pinch.

Also Read: Shiok Meats CEO Sandhya Sriram to step down after merger with Umami Bioworks

A high capital-intensive business

“Alt-protein is a high capital-intensive business,” says Jonas Eichhorst, Executive Director of Protenga, an insect-based nutrition business in Malaysia. “Many models require significant capital for IP development (PhD researchers are expensive) and to scale the production facilities.”

However, regulatory uncertainties and business scaling challenges forced VCs to turn their focus to traditional high-margin products, and the alt-protein space suffered.

“VCs typically prioritise investment opportunities that align with current trends and emerging market demands,” according to Jason Fong, founder of Wholesome Savour (a plant-based foodtech company. “They follow the money by investing in sectors with the potential for significant growth and returns.

In the context of the alternative protein industry, where there is a growing interest in plant-based proteins, cell-cultured meats and other innovative protein sources, VC funding has been increasingly prominent. “In alt-protein, certain areas, such as cellular agriculture and cultured meat, require substantial R&D and technology investments to scale production and bring costs down,” Fong shares.

But that is not happening. According to experts, VC investments will continue to be slower, and VCs will likely look very carefully at who they’d be co-investing with and if there are deep pockets.

“Alt-protein is a game that needs to be done on a massive scale, so the cost of capital becomes a major constraint here. This means that the business needs to be large-scale, too. However, it is hard because if you want to be a large-scale business, you can’t be a niche/boutique business; rather, you should go mainstream. This, in turn, means low margins,” adds Eichhorst.

Also Read: Shiok Meats wants to bring cruelty-free shrimp products to your dining table with its US$12.6M Series A

However, choosing between being a boutique business and going mainstream is a task in itself. “Because of this, many companies will likely get stuck in the middle; you may find some boutique companies doing interesting work but not venture-backed firms. Then, for large-scale ones, the venture capital still may not be enough because of the scale of capital required and the resulting cost of capital,” Eichhorst explains. “Some players are trying to go into high-margin niche applications, but fundamentally, you need to go mainstream to justify the quantum of capital raised and then subsequently return the capital.”

The way forward

It is important to recognise that there are bound to be winners and losers with any trend or fad. Despite the initial hype or investment, not all companies or technologies within the alternative protein space will succeed. Factors such as product quality, scalability, market fit, competition, regulatory challenges, and consumer acceptance play crucial roles in determining which companies emerge as successful players in the industry.

“Identifying the right niche or space within the alternative protein industry is crucial to succeed,” remarks Fong. “It involves understanding consumer trends, market demand, competition, and regulatory landscape. Companies can differentiate themselves by focusing on product innovation, sustainability, taste, and affordability or targeting specific consumer segments.”

Finding partnerships with players with strong balance sheets or being in niche applications in the value chain is equally crucial. However, they must be cautious about capital as these likely aren’t hypergrowth stories.

“As the global cultivated meat sector continues to evolve, reducing production costs and achieving scalability through innovations in raw materials sourcing, media use reduction, and supply chain optimisation becomes paramount. The (Umami-Shiok Meats) merger allows both teams to leverage their compounded learnings over the years, fostering an environment ripe for breakthroughs that could set new industry standards. Further, it underscores the critical role of sustainable food systems, like cultivated seafood, as integral components of the broader climate solution framework,” said Manav Gupta, Founder and CEO of Brinc, an accelerator-cum-VC fund and an investor in Umami.

Crafting a well-developed go-to-market (GTM) strategy is also vital. A strong GTM plan delineates how a company will engage with its target audience and drive revenue generation. “Companies that clearly communicate and execute their GTM strategy are better positioned to excel in competitive environments. Financial adaptability is crucial during periods of industry unrest. Companies with solid financial structures and access to capital possess the resilience to withstand uncertainties, undertake strategic initiatives, and leverage growth prospects emerging from industry shifts,” says Fong.

Also Read: Umami Meats secures US$2.4M seed funding to scale its cultivated seafood business in Singapore

“Ultimately, success in any sector hinges on delivering value to customers by effectively meeting their needs. Companies that comprehend market requirements, innovate to address these demands, and provide superior products or services will likely thrive, regardless of prevailing industry trends or competitive pressures,” he goes on.

In Fong’s view, VCs have a unique opportunity to drive positive change and make a lasting impact on society. By embracing a longer-term perspective that includes considerations for green, sustainable practices and social impact, VCs can catalyse innovation that benefits their bottom line, the planet, and communities.

“Prioritising initiatives that contribute to environmental sustainability, social responsibility, and ethical practices can lead to long-term value creation and positive outcomes for both investors and society. By going beyond the pursuit of immediate financial gains and focusing on holistic, sustainable approaches, VCs can play a pivotal role in shaping a more prosperous and equitable future for all,” the Wholesome Savour founder says.

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From exploring the integration of artificial intelligence (AI) into our daily lives to anticipating the opportunities presented by 6G, Malaysia is reshaping the landscape of the digital society and economy.

This transformation holds significant economic value, as the digital economy may contribute an impressive 24.4 per cent to Malaysia’s gross domestic product (GDP) this year against a backdrop of a forecasted economic growth of 4.2 per cent, as indicated by a recent study conducted by a local digital association, PIKOM.

Digital and internet-driven applications form the foundation of future value creation, a truth universally acknowledged worldwide. In the Malaysian context, this certainty extends to the pivotal role of data-intensive AI applications, collaborative business models, and the immersive internet in ensuring prosperity for tomorrow.

Additionally, it is imperative to recognise that current infrastructure may fall short of meeting the demands of future applications. The impending need for swift data exchange will elevate latency as the new currency in Malaysia’s evolving digital economy. 

The significance of every millisecond

Latency, the duration of time taken during data transfer, plays a crucial role, especially in scenarios where milliseconds can make a difference. Take, for instance, autonomous vehicles, which have only recently started to navigate Malaysian roads; onboard computers must make split-second decisions on obstacles, pedestrians, and open lanes.

Similarly, in local plants or factories, where AI facilitates the safe collaboration between humans and machines, and in immersive experiences like the metaverse, latency becomes a decisive factor.

Also Read: New-age internet platforms are breeding grounds for financial crimes. Here’s how to tackle them

Feeling, seeing and hearing — our brains require 20 milliseconds to process tactile sensations, 13 milliseconds for the central nervous system to interpret visual stimuli, and less than 1 millisecond for auditory perception. In matters of latency, our perception remains steadfast. This unwavering quality becomes the arbiter of the metaverse’s success or failure.

Why is this the case? Simply because our engagement with immersive applications is complete when the experience feels entirely natural. If the synchronisation between visuals and audio is amiss, it is not merely an inconvenience — it is deemed unacceptable.

Reduced latency, enhanced prosperity

In the evolving landscape of the internet, an increasing number of devices in Malaysia must rapidly exchange vast amounts of data. Low latency becomes imperative to ensure the safety of autonomous vehicles, seamless collaboration between robots and engineers in local factories, and the sustained growth of the digital economy, contributing significantly to the nation’s prosperity.

To pave the way for the next-generation internet, be it through fibre optics, mobile networks, or satellite connections, it is important to elevate the current infrastructure’s capabilities to handle faster data packet exchanges.

This requires a collaborative effort that prioritises customers and applications, not only between the network and users but also among different networks themselves. One approach involves strategically relocating extensive data lines and high-performance computers closer to areas where intelligent applications are integral to daily life and work.

The ultimate objective is to establish a robust, globally distributed, and interconnected infrastructure with future-ready capabilities, fostering agility from the cloud to factory server rooms and even the compact edge units in smart vehicles.

The correlation between reduced latency and heightened prosperity is evident in markets where the interconnection ecosystems surrounding DE-CIX Internet Exchanges (IXs) thrive. For instance, in Dubai, a remarkable reduction in latency from 200 to 3 milliseconds between 2012 and 2022 has spurred regional entrepreneurship. During the same period, on-site data centres tripled, and network numbers increased eightfold.

A similar trend is unfolding on the Iberian Peninsula, particularly in Madrid, where the data centre count has risen from 20 in 2016 to over 30 today, with 15 more in the pipeline. Our joint study with Digital Realty and IDG market researchers, soon to be unveiled in Spain, reinforces this trend: where networks intersect, data centres emerge — generating employment, fortifying the economy, and securing prosperity.

Also Read: To capture value creation, tech companies must understand internet user on a global level: Report

According to IDG experts, every Euro invested by the Spanish data centre industry contributes 7 Euro to the gross domestic product. Similarly, in Malaysia, the expansion of data centre infrastructure, spurred on by interconnection infrastructure like robust IXs,  correlates with economic growth, job creation, and enhanced prosperity.

Fostering progress together

The path forward necessitates collaborative efforts within the industry to address technological challenges and prepare for future digital advancements. By investing in technological infrastructure today, Malaysia can ensure its readiness for the forthcoming era of digital progress.

Deloitte estimates the impact of the metaverse on GDP in Asia to be between US$0.8 trillion and US$1.4 trillion per year by 2035, roughly 1.3 to 2.4 per cent of overall GDP per year by 2035. With the potential for substantial economic returns, particularly in emerging concepts like the metaverse, the opportunities for Malaysia’s digital future are vast and promising.

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

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