Rachel Lau is the Co-Founder and Managing Partner at Malaysian VC firm RHL Ventures focusing on growth capital investments in Southeast Asia.

Before establishing RHL Ventures as a partner in February 2016, Lau was VP at Heitman Investment Management in Hong Kong and Australia.

Lau also serves on the Leadership Team of the Hong Kong chapter of Ellevate (formerly 85 Broads), a 34,000-member global network of professional women. She also sits on the Program Committee of EMpower, an international not-for-profit organisation that supports at-risk youths in developing countries.

In 2018, Lau was named one of the 50 People Redefining the Way We Live by Business Times Singapore. 

Lau graduated from Australian National University with a Bachelor of Commerce with Distinction (double major in Accounting and Finance) and received a Master of Law (major in Business Law) from the University of Sydney.

In addition, Lau represented Malaysia in rhythmic gymnastics in various tournaments and the British Council as a delegate in the Young Global Citizen Summit to solve global poverty and human rights issues.

She is a regular contributor of articles for e27 (you can read her thought leadership articles here).

In this candid interview, Lau talks about her personal and professional life.

How would you explain what you do to a five-year-old?

The easiest way to explain is to say I invest in people that change the world.

What has been the biggest highlight/challenge of your career so far?

RHL Ventures was founded in 2016, and we have always been focused on driving transformative growth in the ASEAN through investing in small and medium-sized companies in the region. Setting up RHL Ventures and building it to become Malaysia’s most prominent homegrown VC has been my career’s most significant challenge and highlight.

Also Read: Your identity should not be limited to what you do at work: Sheryl Chen of Qualgro

How do you envision the next five years of your career?

The best way to progress in life is through having a goal and working towards it. The next five years of my time will be focused on building RHL as the go-to VC in the region.

What are some of your favourite work tools?

The best tool ever created was Microsoft Excel. I am a pure nerd at heart.

What’s something about you or your job that would surprise us?

We all have a side of us that people don’t know. What surprises many people is that we invest in the unknown, taking risks into young innovative solutions. We believe in new ideas and support them in making their dreams a reality.

Do you prefer WFH or WFO, or hybrid?

The best version of me is when I am around people. So, Work from Office. I love the energy in the office, the chats, the lunch meetings, all of it.

What would you tell your younger self?

A piece of advice I will always hold close to me is to never listen to people who put you down. Destiny is not what you are born into; chart your path, for the future is what you make it. Be fearless, take risks, fall, and cry, but keep going.

Can you describe yourself in three words?

Disciplined, calm and fearless

What are you most likely to be doing if not working?

Reading. I love always keeping myself updated with new things. It is the one thing that everyone should cultivate.

What are you currently reading/listening to/ watching?

Listening to Smash Mouth’s All-Star and watching Money Heist.

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2022 has been fruitful and filled with growth and challenges, especially for the Innovate team. In a nutshell, our 2022 was focused on digitalisation, adaptability, building a solid foundation, and collaboration. These elements are vital for businesses to thrive in today’s fast-paced and constantly evolving business environment.

“If it’s not working, change it.”

We did a lot of pivoting this year but our goal to provide equal opportunities to startups and founders and to connect you with the right network remains unchanged.

Here’s a recap of what we did and the lessons you can take away from it:

Geography is no longer our master

In the last few years, we have seen a digital transformation happen faster than before. We were limited by geographical and anthropogeographical access, but with most processes now digitalised, it opened a whole new set of opportunities and challenges for everyone.

We worked with Zoom, which is now expanding its vision to support startups innovating hybrid workforce collaboration and delivering happiness to their customers. We organised:

• A webinar where we talked about what customer experience and customer communications are. You can watch the recording here.
• An in-person roundtable with selected VCs to empower companies in the ecosystem to build a memorable customer experience for all its customers and stakeholders.

We are also running the Meta Community Accelerator Programme for the third time to support online communities in APAC and Bangladesh. With community building at the heart of e27, we are honoured to empower online communities by providing them with the necessary tools, training, guidance, and connection to grow and nurture their communities.

We have supported 50+ communities to achieve their goals, conducted their dream activities, and connected them with relevant connections to further amplify their impact. What started as a hobby for some and a safe space for others, these community leaders are continuously providing value to the people around us.

Also Read: A year in review: How e27 served the tech ecosystem in 2022

What used to be physical has now turned digital, and we are no longer bound by geography.

Adaptability over sustainability

Put in a different context, sustainability is the ability to sustain your operations and support your customers, but sustaining your operations is not enough to meet the rapidly changing needs and expectations of your customers – especially in the digital world.

We partnered with CleverTap to discuss with key growth and top marketers in the region how to adapt and integrate optimised customer growth and retention strategies on mobile touchpoints to be able to double down on retention and win in the markets in which our businesses operate. 

We just finished our roadshow events in Jakarta and Singapore this year, and we are going to Malaysia, Vietnam, Thailand, and the Philippines in 2023 to discuss how you can craft innovative customer experiences.

Stay tuned to the events’ updates and registration openings through this link.

Building a solid foundation for innovation

Innovation doesn’t happen in a vacuum. The best innovation comes in response to long-standing problems we are facing, and having a stable foundation allows us to explore and innovate freely.

We have been using maps to navigate around cities and places. But despite having a lot of updates to our maps, approximately 75 per cent of the world is poorly addressed, leaving them underserved. 

We teamed up with UNL Global to host a webinar to talk about how they are planning to develop a next-gen micro-location and mapping technology to build maps that bring your business forward, empower your delivery agents, and build the internet of places.

Having accurate data and mapping play a significant role in your business operations. And In the context of e-commerce and last-mile delivery, it refers to the delivery of products and services quickly and seamlessly and to your customer’s doorstep.

Click here to watch the webinar recording.

Collaboration over individual endeavours

There are many benefits to collaboration. With this, individuals and organisations can pool their knowledge, skills, and resources and can achieve more than they could alone. Collaboration can also foster creativity and innovation as it encourages the sharing of ideas and the development of new approaches.

This year we worked with SAP and XS APAC over a series of engagements. Starting with a series of webinars focused on you can do business with large enterprises, a virtual roundtable with investors where they talked about how they can support investor portfolios, and a panel discussion during this year’s Echelon Asia Summit!

Also Read: ‘Focus on your north-star vision’: 30 startups speak of their learnings in 2022

The engagement focused on the importance of Startup-Corporate collaboration to boost:

• Innovation: By collaborating with a startup, a corporation can access this innovative thinking and potentially bring new products or services to market. Click here to learn how you can do business with enterprises to help you focus and improve your product.
• Offering more cost-effective solutions: Startups may be able to offer more cost-effective solutions to problems faced by corporations, potentially leading to cost savings for the corporation, especially during these challenging times. Click here to learn how you can optimize business solutions through customer-centricity.
• Access to new markets: Through collaboration, startups and corporates can work together to reach a wider set of audience, reach new markets, and impact more people. SAP shared some key points on regional expansion in the last Echelon Asia Summit 2022. See how you can explore corporate partnerships as a pathway to scaling your startup here.

Speaking of access to new markets, this year, we teamed up again with JETRO (Japan External Trade Organisation) for their 2022 Global Acceleration Hub Programme to support Japanese startups with their plans for overseas expansion. We’ve worked with:

• Credit Engine: a SaaS products provider for the financial sector that provides services that cover the online lending process to debt collection with data-driven digital technology.
• Cross Sync: Provides iBSEN – real-time monitoring of ICU patients and their severity using AI and ICT. They provide D-to-D Tele-ICU telemedicine service with an AI monitoring function.
• Terra Drone: Focuses on providing drone utilisation services for oil and gas, renewables, terminals, survey, and processing and storage.
• TB-M: Focuses on developing and manufacturing ecological new material, LIMEX – a composite material of over 50 per cent made of limestone. LIMEX has been developed in Japan that provides ecological and economic benefits

If you would love to work with them, please let us know, and we would be more than happy to connect you!

Collaboration is not just limited to startups or corporates partnering with each other or other entities to support their vision and mission. We also work with our network to connect startups with the right investors.

Together with Techstars, Facilitated the Demo Day with 200+ attendees and made more than 130+ matched connections with investors and strategic partners over a two-day programme split between Global Scale and Clean Tech cohorts.

The selected 26 startups also underwent a series of sessions to help address the issues they are facing specific to their companies to help them build and grow their companies. The event was attended by mentors, investors, and other startups, with more than 80 per cent of the attendees looking for business opportunities with the startups.

Collaboration can take many forms, and by working with other organisations, businesses can access new ideas, resources, and expertise and can achieve more together than they could alone.

Looking back at 2022

In recap, digitalisation, adaptability, building a solid foundation, and collaboration are all key factors that can help businesses to thrive in today’s fast-paced and constantly evolving business environment. By adopting these strategies, businesses can stay competitive, achieve their goals, and create value for their customers, employees, and shareholders.

What’s in store for 2023

2022 posed a different set of challenges, and we are anticipating that some of these challenges will remain.

As we mentioned, we did a lot of pivoting this year but our goal to provide equal opportunities to startups and founders and to connect you with the right network remains unchanged, and it doesn’t end here!

Send an email to programs@e27.co to see how we can work together to craft the right story to showcase your brand, how you can get connected and engage the community in Southeast Asia, and how you can amplify your impact. This is where you start!

This article has been co-written by Selma Ayuanshari and Mayeda Bidushi.

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Indonesia-based banking and digital finance platform Akulaku has secured a US$200 million investment from Japanese megabank Mitsubishi UFJ Financial Group (MUFG).

The investment will support its expansion of banking services across Southeast Asia, including underserved customers and markets.

The company’s future growth plans align with MUFG’s, and their joint expansion into new territories, markets, and products will accelerate heading into 2023.

This is the second strategic investment in the company this year, following the US$100 million in funding closed with Thailand’s Siam Commercial Bank early this year.

Along with the investment, Akulaku and MUFG will enter into a framework agreement for Akulaku to work with MUFG companies across Southeast Asia on technology, product development, financing, and distribution.

Also Read: ‘Asia’s BNPL sector has great potential’, says Akulaku CEO William Li

“Akulaku’s emphasis on emerging markets has highlighted a vast, underserved audience in the banking industry,” the company said in a statement. “By partnering with MUFG, another innovative financial institution, we will have the knowledge, resources, and services to meet the long-term needs of our growing customer base. Both companies will benefit from shared skills and knowledge, enabling us to expand our products and geographical reach.”

“Southeast Asia is key and a second home market to MUFG. Our investment in Akulaku will further solidify our commitment to this region to meet the growing financial needs of underserved customers. With Akulaku’s digital financial services backed by its strong technology, our journey with Akulaku will help us further contribute to the growth of this region,” said Kenichi Yamato, Managing Executive Officer and CEO of the Global Commercial Banking Business unit at MUFG Bank.

Akulaku is a leading banking and digital finance platform in Southeast Asia, with a presence in Indonesia, the Philippines, and Malaysia. Akulaku helps meet the daily financial needs of underserved customers in emerging markets through digital banking, digital financing/investment, and insurance brokerage services.

In addition to the Akulaku virtual credit card and e-commerce platform, the company operates Asetku, an online wealth management platform, and Neobank, a mobile digital bank supported by Bank Neo Commerce.

Akulaku has so far raised US$648 million over 12 equity rounds from investors such as Ant Group, Sequoia India, Qiming Venture Partners, and Arbor Ventures. 

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Remember the days of standing at the reservation counter of an airline company to buy your ticket? Neither do I. Thanks to the transformative effects of tech, industries like transport, food deliveries, groceries and travel bookings, amongst others, are a swipe away.

A big reason for the success of these businesses is that they do one thing, and they do it well. By zooming in on a single problem and solving it effectively, businesses can quickly acquire a targeted user base and build a reputation for reliably offering a service. Travel companies such as Skyscanner and Airbnb thrive on this model by growing and building a solid user base through a focus on customer satisfaction and retention.

Similarly, over the past decade, we have seen a rise in faith-based apps that were produced with a single utilitarian purpose in mind, such as providing accurate prayer times or locating the direction of the Qibla.

However, single-purpose apps – even successful ones – often don’t create enough consistent usage or demand to build a sustainable business in the long run, given the isolated function that they offer. Apps need to evolve with the times to reflect the demands of modern day-to-day life.

Diversification as the way forward

If we look at companies that are really leading the pack globally, diversification is key to many of their strategies. Popularly known as super apps, these are one-stop-shop apps that offer multiple services, including shopping, ride-hailing, groceries and banking through a single user interface.

For apps, diversifying their services helps to mitigate risks, makes the most of their current user base, and gives them access to entirely new audience segments by extending their core offering.

Also Read: Quadria Capital injects US$90M into Con Cung to build super app for Vietnamese mothers

This approach makes more sense, given that the average person has about 40 apps on their mobile device but spends nearly 90 per cent of their time on less than half of them. Not surprisingly, in ASEAN, super apps are growing rapidly – from a market valuation of US$4 billion in 2020 to hitting a forecasted value of US$23 billion by 2025.  

All this is to say that there is a massive opportunity for faith-based apps, such as ourselves, to diversify our offering and bridge the gap for tech-savvy users looking for relevant products and services. This is particularly true for Muslim users. Globally, the Muslim population stands at 1.9 billion, but there are only a handful of global lifestyle apps available to serve their needs. 

Among users of the Muslim Pro app, a survey found that seven in ten respondents struggled with having to tap into multiple sources and platforms when seeking viewer-appropriate content. Based on these insights and learnings from how other successful apps have grown, it’s clear that a diversified all-in-one platform is a crucial first step to meeting the demand for Muslim-centric lifestyle solutions.

Creating a faith-based super app

From prayers and other daily rituals to dietary requirements, fashion and media consumption, religion has an expansive influence on the day-to-day lifestyle of its practitioners. It is only natural for users to value the convenience of having all their go-to resources available on a single platform, where they can access the content they need in a seamless manner.

To this end, the Muslim Pro app has recently expanded its services into Qalbox; a subscription video-on-demand (SVOD) streaming platform that celebrates the best of Muslim-friendly entertainment. With hundreds of hours of films, documentaries, kids’ programmes and more, Qalbox offers content that is thoughtfully curated and carefully moderated in accordance with strict guidelines and experts, giving communities peace of mind through platform-based compliance. 

For us, this is only the start. It is no easy task to continuously understand, meet and address gaps in user demands, but this is critical for any business or app looking to deliver solutions that are helpful and sustainable in the long term. Regardless of the platform, this remains an ever-evolving challenge – but one that presents opportunities for growth.  

Super apps that are leading the pack across the region are doing so by keeping a finger on the pulse of consumer needs. For those of us seeking to close the gap in the faith-based lifestyle market, there is much we can learn and adapt from these success stories to achieve the same.

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Digital marketing is a dynamic field that gets more sophisticated and advanced every year. It also puts a lot of pressure on us as agencies to adopt best practice strategies faster. The more we understand these changes, the better we can cater to our clients.

There are many things to be excited about for the new year, and here is a breakdown of our top few.

Brands will focus on leading with purpose and impact

Leading with purpose and impact is important because every organisation runs because of people. People, by nature, are driven by purpose.

According to Forbes, “52 per cent of purpose-driven companies experienced over 10 per cent growth compared with 42 per cent of non-purpose-driven companies, and this included growth in purpose-driven companies benefiting from greater global expansion (66 per cent compared with 48 per cent), more product launches (56 per cent compared with 33 per cent), and success in major transformation efforts (52 per cent compared with 16 per cent).”

The organisation’s purpose starts from the hiring process all the way to the business’s day-to-day operations. Employees are starting to introspect and soul-search more when reflecting on their purpose in life, especially after the COVID-19 pandemic. 

Work is also no longer a place to solely make profits. It is a place where positive social impact can be made. This brings us to ESG (environmental, social, and governance) principles which more and more companies are looking into. This could mean taking measures to produce positive social outcomes, such as making efforts to lower pollution and CO2 output and also reducing waste.

Also Read: “Consolidation and explosion”: SEA startup investors reveal 2023 trends they are keeping close watch of

It could also mean creating a diverse and inclusive, well-rounded workplace. As time-consuming and expensive philanthropy is for an organisation to undertake, it will create deeper connections both internally within the organisation and externally with customers, which will be rewarding for the business in the long run. 

More and more companies will start figuring out ways to help employees feel more fulfilled and supported both purposefully and impactfully because if they get this right, the potentials are endless.

How brands will onboard Web3, creating utility for NFTs, metaverse

I am excited to see how marketing strategies will innovate to adapt to Web3. I’ve seen a lot of luxury brands onboard the metaverse and showcasing their craftsmanship in creative ways, and it’s fun to see how Web3 will take shape.

Building more relevant and personalised content experiences for customers

Brands can issue NFTs for collectors to gain access to new product launches (aka “drops”) and physical entry to clubs, events, and shows. They can also personalise the entire funnel and create a unique experience for individual collectors since it is built on blockchain, a decentralised network. And as this is still in the infancy stage, the possibilities for brands to be creative are endless.

Creating scarcity

Brands can also create exclusivity through NFTs to target a new generation who are constantly seeking to boost their digital presence. This can be done via investing in digital clothing like avatars, skins, and gliders. Think about it, we are living in an era of material culture and identity, and digital identities are becoming more of an extension of oneself.

Fortnight made US$9 billion in revenue in its first two years. Roblox boasts a collective US$1.2 billion on their in-game currency, up 171 per cent from last year. The more embodied one feels in their avatar, the more likely they are willing to pay to improve their appearance in the virtual space.

What does this mean for brands? It all comes down to how they decide to converge tokens and Web3 to drive business goals.

Interacting with customers in the metaverse

Decentraland and Sandbox are currently the top two leading metaverse platforms, and big brands are already heavily investing in this space. Brands can buy real estate in the metaverse to greet and communicate with their customers in a shared virtual space, which brings about a new form of “direct-to-avatar” marketing. It is pretty exciting to see how brands can personalise experiences to interact with individual customers in the metaverse over time.

A shift from Web2 marketing strategies to community building

Community building has also become the foundation of Web3. It’s time for brands to inspire people to join and engage by creating an inclusive space where they ideate, contribute and make a difference for them to thrive in the Web3 space. 

There are many competing versions of what Web3 will look like for businesses when it’s riper, and only time will tell.

SEO voice search

Voice search technology has advanced over the years due to improvements in natural language processing. It is becoming more exciting because it represents a new way for people to search for and find information online.

With the increasing popularity of speakers and other voice-activated devices, more and more people are using voice search as their primary method of accessing information.

A survey by PwC found that 40 per cent of adults use voice assistants on their phones at least once a week. This shift presents a new set of challenges and opportunities for brands to look into so that they can reach potential customers.

Google reports that 27 per cent of the global online population is using voice search on mobile devices. So while it is still in its infancy, voice technology is getting to a point where it has become mainstream. 

Also Read: How to leverage personalised advertising in 2023

We’ve been carefully considering the advantages of ranking for voice search when it comes to SEO optimisation as part of our client’s digital marketing strategies. The goal is to gain a competitive edge because, soon enough, voice search will become more widely available, with a growing number of people using smart speakers, phones, and other devices featuring voice search capabilities.

The growth of AI and automation

Automation

Automation is evolving and becoming more and more sophisticated as it helps brands personalise their communication to audiences better while also improving on cross-channel integration. This will enable brands to deliver more seamless and cohesive experiences to customers while saving time with monotonous, mundane tasks.

Artificial Intelligence

Then comes artificial intelligence (AI), which essentially takes broad rules outlined by humans but determines its pathway. These include analysing customer data, predicting customer behaviour, and even automating certain marketing processes. 

Our agency has been using Jasper.ai over the past year for our first layer of generating content drafts, but recently we’ve been fiddling around with Elon Musk’s Chat GPT, and it is pretty amazing what AI has evolved into.

Its been trained to engage conversationally so you will be able to ask mathematical questions, code, create content and also summarise content, acknowledge errors, refute false assumptions, and more.

We need to start thinking about the potential of AI and how we use it to improve business strategies and marketing efforts. 

It is exciting to learn about new innovations and market trends, and I am looking forward to technological developments that can improve the way my agency operates.

As an entrepreneur, you always need to be readily available to pivot to new changes because the business environment will constantly evolve. Having a growth mindset is key because it will help my team stay agile and responsive in a constantly changing business environment.

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Wareflex, an on-demand warehousing platform in Vietnam, has closed an undisclosed pre-seed funding round with lead investor Genesia Ventures.

Existing backer Antler also participated, bringing the startup’s total raise to US$785,000.

The company will use the money to develop its technology platform and expand the team.

Wareflex simplifies the warehouse procurement process with a B2B marketplace, a business network of related products and services, and a SaaS supply chain tool to support clients in optimising their operations.

The firm provides flexible warehouses of all types on a pay-per-use basis. It has a network of over 100 warehouses across Vietnam, including general/ambient warehouses, cold storage, open yards, and e-commerce fulfilment centres.

Also Read: Vietnamese EV maker VinFast files for US IPO

On-demand warehousing platforms match companies with underutilised warehouse and distribution centre capabilities and customers needing extra space or expanding their distribution network. This new business model has unique advantages in terms of flexible capacity and commitment granularity but also has different cost structures compared to traditional ways of obtaining distribution capabilities.

Wareflex’s Co-Founder and CEO Rajnish Sharma said: “We believe the supply chain industry in Vietnam has an opportunity to improve in terms of standardisation, transparency, efficiency, and innovation. With that in mind, Wareflex is helping to improve the openness of the warehouse attributes, service pricing, and availability. Secondly, we increase the efficiency and utilisation of warehouses across Vietnam by facilitating the matchmaking process between supply and demand. And finally, we boost innovation by providing flexibility and agility to businesses to access warehouse services and build their distribution network effectively.”

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Nowhere else in the last few years has there been as unexpected and unprecedented growth as there has been in the e-commerce industry, which was significantly influenced by the COVID-19 crisis. Consumer behaviour has changed due to the pandemic, lockdown measures, and uncertain economic times, driving more people to shop online rather than in person.

As more people lost trust in traditional commerce, they became more attracted to the convenience of online shopping. In economies where e-commerce already plays a significant role, the share of online spending increased more between January 2018 and September 2021, according to a study by the International Monetary Fund. The pandemic accelerated the shift away from physical stores to online shopping by up to five years, according to IBM’s US Retail Index.

A Visa study found that 31 per cent of Singaporeans made their first-ever online purchases during the pandemic, purchasing items from websites or mobile applications. 52 per cent of those surveyed said they shop less frequently in physical stores, compared to 74 per cent of Singaporean consumers who shop more frequently online.

However, the effects are reversing as the world gradually recovers from the pandemic’s aftermath, despite predictions that the digital and e-commerce industries will continue to grow quickly.

Challenges affecting the growth of the e-commerce industry

As we gradually leave behind lockdowns and other restrictions, the transition from the digital economy to a more mature e-commerce landscape will begin. Retailers should be cautious and watch what they expect as more and more shoppers are turning away from online shopping and returning to traditional commerce.

While retailers can expect growth in sales, they should watch for overgrowth, as well as overestimation. Some companies, like Shopify, over-delivered on the anticipated growth in e-commerce, causing the company to have too many employees.

Also Read: How Graas aims to help brands evolve their e-commerce strategy

Fast-paced industries like e-commerce are fuelled by advertising and marketing efforts, which require significant capital for larger businesses. The fast-paced nature of these industries also demands constant vigilance from retailers, as digital marketing is becoming more competitive than ever.

In 2021, the e-commerce industry was predicted to account for 21 per cent of global retail sales by the end of this year, a small increase of about 10 per cent from five years ago.

Access to funding to maintain growth momentum in a fiercely competitive market or enter a new market is the biggest pain point for businesses. In fact, according to CBInsights, running out of funds accounts for 38 per cent of startup failures.

E-commerce businesses will probably need to access additional funding as a result of the global slowdown in the industry to expand or, in some cases, maintain their current level of revenue. But for many businesses, this is where the issue lies.

The gradual decline of traditional funding

Traditional funding methods are the most common way for businesses to raise money; in fact, this practice has become standard in the business world. Various traditional funding options exist, including bank loans, venture capital, and angel investors.

Of the numerous traditional funding options, bank loans are probably the most preferred because they enable borrowers to raise capital at typically low-interest rates without giving up company ownership.

However, getting a bank loan is more difficult than one might imagine. Banks and other financial institutions typically analyse the borrower’s risk before approving a loan. The amount of the loan itself varies based on factors such as how much income a business generates, its record of profitable operations, the level of risk involved in its operations, and its capacity to repay debt.

In other words, a business is more likely to receive a loan if its asset value is higher. This is done primarily to safeguard the banks so that, in the event of a default, the bank can recoup its losses by selling the borrower’s assets.

However, the biggest flaw is that these digital businesses, like e-commerce businesses, typically don’t have many assets. The risk and return of these high-volume businesses, which may have high revenues but low-profit margins, are difficult for banks to assess.

In addition to not having eligible assets to pledge as collateral for loans, bank loans are usually time-consuming to apply for, and loan repayments in fixed instalments can put pressure on their companies’ cash flow, both of which are things businesses will want to avoid during this time of financial uncertainty.

Also Read: GuavaPass co-founders’ new alternative lending startup Jenfi lands US$6.3M led by Monk’s Hill

Bank loans can provide businesses with considerable amounts of capital at low-interest rates without the need to sell ownership, but because of rigid repayment terms, they aren’t as accessible to every business. This suggests that acquiring funding will become a bigger challenge for e-commerce businesses because these businesses are labelled as high-risk.

A fresh approach

Running a business has become a little bit simpler thanks to the development of new technologies over the past few years.  The advancements in financial technology have made it possible for businesses to expand beyond the limits imposed by traditional funding methods, changing the way business is conducted and attracting a new breed of investors.

Alternative revenue-based finance companies, such as Jenfi, are now better positioned to meet the funding needs of these companies. They assess risk for digital businesses and also control how their funding is used.

This ensures the entire amount can only be used for growth on digital platforms such as Google, Facebook, Instagram, LinkedIn, and other digital platforms. By doing so, there is a controlled use of funds and the ability to funnel the funds into growth solutions.

Companies who choose alternative revenue-based solutions such as Jenfi benefit from more flexible target repayment plans than fixed instalment repayment plans. Jenfi’s application procedure is entirely online, and companies have secured funding in as little as 24 hours in rare circumstances. This type of alternative funding is far better than traditional financing, which might take months.

Charting the future for the e-commerce industry

By 2025, it was predicted that the e-commerce industry would expand at a rate of 16.23 per cent, with a market value of US$11.45 billion. While it’s clear that e-commerce businesses are prepared for future growth, it will come with its own set of challenges. As the industry experiences a global slowdown, traditional funding methods are inadequate to support the expansion of e-commerce businesses.

To tackle the challenges that lie ahead, companies in the e-commerce industry should begin utilising alternative modes of funding to optimise their growth. Alternative funding can play a significant role in the growth of the e-commerce industry. It could give these businesses the tools they need to deal with the challenging effects of a slowing global economy.

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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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Ant-backed Akulaku raises US$100M from Japan’s MUFG
The capital infusion counts as the second strategic investment closed by the Indonesia-based company this year, following the US$100M funding it raised from SCB at the start of this year.

Line Man Wongnai in talks to buy Foodpanda’s Thai unit
A Bloomberg report says that Foodpanda Thailand, owned by Delivery Hero SE, was previously valued at US$100M but the potential deal size may have been trimmed due to market headwinds.

Tencent chief blasts managers in fiery townhall: sources
Founder Pony Ma told employees many corruption issues had been discovered within the company and mismanagement was draining its vitality; Tencent reported a second straight quarterly revenue drop last month.

Hyphen Group secures US$22M in funding led by PCCW
The fintech firm concurrently announced that its CEO Sam Allen has stepped down; Headquartered in Hong Kong and Singapore, Hyphen has reached 8M+ monthly users and partnered with over 270 financial institutions.

Indonesian B2B construction startup BRIK said to finalise US$12M funding
It is in talks for pre-Series A round with AC Ventures, Accel, and B Capital; In July, BRIK raised US$3M from AC Ventures, Accel, and Alternate Ventures.

ALVA raises US$10M from Standard Chartered Indonesia
The capital will help ALVA, a subsidiary of IDX-listed Indika Energy, produce electric motorcycles to build sustainable practices within its supply chain systems.

Singaporean Alchemy Foodtech nets US$3M in extended bridge round
The investors include Thai President Foods, Pine Venture, Thai Union, Heritas, and SEEDS Capital; Alchemy Foodtech provides tasty, healthier food options that reduce the negative impact of excess carbs and sugar on people’s health.

Baidu expands driverless robotaxi service in Wuhan
Baidu’s vehicles are equipped with multi-layer technologies such as redundancy monitoring, remote driving, and a safety operation system; These mechanisms are backed by the firm’s over 32M kilometres of self-driving mileage.

Vietnamese on-demand warehousing platform Wareflex closes pre-seed round
Genesia Ventures and Antler are the investors; Wareflex has a network of over 100 warehouses across Vietnam and provides flexible warehouses of all types on a pay-per-use basis.

YouTrip’s 4 steps to ensure financial resilience during crisis
The payments startup’s CFO Weijern Lim also shares the company’s experience in applying for grants, an excellent alternative to VC funding for startups.

Climate conferences won’t save us: Sparking systems change that benefits us all
Everyone can and should play a part, there is a unique and valuable part each one can play in advancing the climate fight.

What is the future regulation of crypto?
Without the establishment of consistent international rules, customers’ assets cannot be protected, and the crypto asset industry cannot be further developed.

Anticipating 2023: What’s on our radar
As an entrepreneur, you must always be readily available to pivot to new changes because the business environment will constantly evolve.

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Alchemy Foodtech, a Singaporean startup aiming to reduce carbohydrates, sugar and GI (glycaemic index) of foods, has raised US$3 million in funding from public-listed Thai President Foods, Pine Venture Partners and Sour Sally Group investment arm Selera Kapital.

Existing investors Thai Union, Fuchsia Venture Capital, Heritas Capital, and SEEDS Capital also participated.

The new funds will continue to support Alchemy Foodtech’s next stage of development in markets locally and overseas. “With the funds raised, we can pursue our growth in China, support our new China office, and expand to other countries, including Thailand, Indonesia, Korea, Japan and the US through distributors and B2B partners,” said CEO Alan Phua.

Also Read: Thai Union invests in Singapore’s Alchemy Foodtech, VisVires New Protein from its US$30M fund

The global demand for healthier food options is growing as more than one in three adults is overweight, and one in ten adults lives with diabetes. Alchemy Foodtech addresses these issues by providing tasty, healthier food options that reduce the negative impact of excess carbs and sugar on people’s health.

The company has developed its patented Alchemy Fibre technology platform based on plant ingredients to replace sugars and carbs and reduce glycemic index while delivering great taste and texture.

The interest in carb and sugar reduction is growing, with many companies pledging to reduce sugar in their product offerings by 2030. With strong global demand, Alchemy Foodtech has collaborated with several MNCs on various products, including noodles, bread, cookies, ice creams, yoghurts, and beverages. It will launch some of these in H1 2023.

In 2018, Alchemy raised 7-figure funding in a pre-Series A round led by Heritas Capital and SEEDS Capital.

Alchemy was part of the first cohort of SPACE-F, the first food tech incubator and accelerator programme in Thailand.

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Indonesia-based digital signature and identity platform Privy is set to expand its business to Australia. The country will be the startup’s first destination following its US$48 million Series C funding round in November 2022.

The update was announced by Privy Co-Founder and CEO Marshall Pribadi in his LinkedIn post. “Thanks IA-CEPA ECP Katalis for supporting Privy’s expansion to Australia. Looking forward to working together with you guys!” he wrote on Tuesday (13/12).

DailySocial has reached out to Pribadi for comments, but he had not replied by the time of this article’s publication.

The expansion was made possible due to Privy’s partnership with the IA-CEPA ECP Katalis (Katalis). Katalis is a partnership programme to support stronger, sustainable, and inclusive bilateral trade and investment relations between Indonesia and Australia. The programme was set up based on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) trade agreement valid from July 5, 2020.

Katalis is working with business players and the government to implement IA-CEPA, complementing existing development initiatives by Australia, presenting a bilateral, commercially oriented and social-gender-inclusive approach in its activities.

Also Read: Get Privy for secure digital ID solutions

The formation of IA-CEPA started with the background of Indonesia-Australia’s strategic trade partnership; it was aimed to create a framework for the two countries to dig the potential of bilateral economic collaboration, encouraging partnership between businesses, communities, and individuals.

This expansion plan was first mentioned by Pribadi when the company announced its Series C funding round in November 2022. The CEO said that the network and global experience of KKR & Co Inc., combined with the support of investors MDI Ventures, GGV Capital, and TMI, played a crucial role in the startup’s success.

“Privy is in the right position to innovate further with our offerings and capacity while building a stronger foundation for an international expansion,” he said.

This statement was supported by Louis Casey, Growth Technology Lead at KKR in Southeast Asia. He said, “Privy had built a leading platform in the industry by combining main features, user-friendly design, and a strong and stable infrastructure. We want to tap into KKR’s global network and operational expertise to bring Privy to its next level of growth and expand its leadership in digital trust for leading individuals and corporations in Indonesia and beyond.”

Privy’s milestones

Founded in 2016, Privy offers a wide range of products that include digital identities, signatures, verification, and document management services in various sectors, from financial services, to health, to education.

In its development in 2018, Privy was the first non-government institution in Indonesia to receive the Certification of Authority (CA) from the Ministry of Communications and Informatics. A year later, it became the first e-KYC service provider to be listed on the Financial Services Authority.

Privy claimed to lead the market for digital trust platforms in Indonesia with more than 30 million verified users and 1,800 customers for its digital signatures, verification, and subscription services and onboarded more than 40 million signatures each year.

According to Statista, the global market for digital identity platforms is projected to grow from US$23.3 billion in 2020 to US$49.5 billion in 2026. Increased identity theft cases, data leaks, and new government regulations trigger this rapid growth.

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The article was written in Bahasa Indonesia by Marsya Nabila for DailySocial. English translation and editing by e27.

Image Credit: Privy

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