Dear reader,
The simultaneous layoffs at One Championship and Love Bonito highlight the challenging economic climate that even successful Singapore-based companies face today.
While both companies have shown promise, with One Championship nearing profitability and Love Bonito expanding its global footprint, external pressures are proving too difficult to ignore. The macroeconomic environment, particularly rising costs and investor demands for immediate profitability, has forced these organizations to implement difficult cost-cutting measures.
One Championship, valued at US$1.3 billion, is striving to balance its growth in international markets like the US and the Middle East with profitability expectations, while Love Bonito, despite securing significant funding in recent years, faces similar pressures. These layoffs underscore the delicate balance between growth and financial sustainability in today’s market.
For employees, however, the human toll of these layoffs is undeniable. Though both companies offer severance packages and career transition support, the emotional and financial impact of such changes is significant.
In the broader business landscape, these layoffs reflect a trend of companies recalibrating to survive in a more competitive, profitability-focused era, especially as investor sentiment shifts in response to the unpredictable global economy.
Sainul,
Editor.
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NEWS & VIEWS
Love Bonito lays off 29, including 14 in Singapore
Originally a blogshop, Love Bonito secured US$50 million in funding in 2021 to advance its market expansion plans, specifically exploring entry into the United States.
One Championship cuts dozens of staff in push for profitability
The strategy is to bring the company to profitability; In an internal email to staff, CEO Chatri Sityodtong said the sports promoter was “on the verge” of profitability on the back of “record revenues and cost efficiencies” and had strong viewership numbers.
Marc Benioff warns that AI, while useful, is overhyped and partly blames Microsoft
Benioff had negative things to say in particular about Microsoft Copilot’s accuracy and usefulness; He even compared Copilot to Clippy, Microsoft’s widely panned 1990s talking paperclip cartoon that was supposed to be an assistant to Microsoft Office users.
Singapore startup funding dips 26% in Q3 2024 amid global economic challenges
In Q3, late-stage investment rose 48% to US$80M from US$53.9M in Q2 2024, whereas early-stage funding fell 8 per cent to US$237M; No US$100 million+ rounds were recorded in Q3 2024 in Singapore.
Q3 fintech funding slips in SEA: Early-stage deals offer hope amid market slowdown
Late-stage fintech investment saw a steep 72 per cent decline, dropping to US$73 million in Q3 2024, down from US$263 million in Q2 2024.
Khazanah unveils strategic initiatives to elevate Malaysia’s VC landscape
Khazanah’s initiatives are the Emerging Fund Managers’ Programme and the Regional Fund Managers’ Initiative under the National Fund of Funds; These initiatives follow Khazanah’s acquisition of MAVCAP and Penjana Kapital in July this year.
Malaysia EV market slows amid consumer worries over charging docks, maintenance costs
Consumers remain cautious and weigh the resale value of EVs (57%), access to renewable energy for charging their EVs (51%), and ongoing battery maintenance expenses (41%).
Philippines leads mobile fintech app adoption in SEA: Study
The penetration is expected to grow to 60% by 2030, with the highest levels observed in the Philippines (72%), Indonesia (64%), and Malaysia (61%).
Bintang Capital Partners launches US$47M gender lens Semiconductor Impact Fund
The fund is designed to invest in high-potential growth-stage semiconductor companies in Malaysia, with a clear focus on environmental and social impact.
Malaysia’s online crime cases rise 35.5% in 2023; e-commerce crime accounts for 33.2%
This was followed by telecommunications crime (30%), non-existent investments (15.6%), non-existent loans (12.3%), e-finance (6.1%) and love scam (2.7%).
Biofourmis founder emerges with new healthtech startup
OutcomesAI, founded by Kuldeep Singh Rajput, has built a multi-modal AI model, Glia, which can integrate information from images, audio and video to build a more accurate model; It is an ensemble of LLMs and large multi-modal models geared for healthcare.
India’s central bank orders Sachin Bansal’s Navi to halt loans
The Reserve Bank of India said the firm violated rules on pricing, income assessment, and asset classification; This action follows months of warnings about responsible lending practices, it added.
FEATURES & INTERVIEWS
AI gold rush: How OpenAI’s Singapore expansion could reshape the startup ecosystem
OpenAI’s presence is incredibly positive; it will help push the region forward and create more opportunities for startups.
FROM THE ARCHIVES
What startups need to know about Claims Code, the new rulebook for making credible climate claims
The Claims Code is one way for startups to contribute to the goals of the Paris Agreement by taking additional mitigation measures.
Evercomm wants to pave the way for corporate decarbonisation success
In 2024, Evercomm is looking forward to expanding to the Middle East and Europe, after winning an award at the COP28.
What is left behind in our conversation on climate change
We focus on startups and the solutions that they build to solve climate change; But there is a stakeholder that we have been missing out.
Muuse wants to eliminate single-use containers in Singapore’s thriving F&B scene
In this project, Muuse received support from the SG Eco Fund. It is also expected to launch a full commercial partnership in 2024.
How SWAP Energy aims to promote EV use in Indonesia through the advantages of battery-swapping
SWAP Energy builds battery swapping infrastructure with more than 400 swap stations already available in Greater Jakarta Area and Bali.
Unlocking green fintech prosperity in Asia: Navigating the top 4 challenges
Despite the ongoing ‘funding winter’ faced by global startups, the trajectory of development for green fintech has shown strong momentum.
Some lessons on how to fulfil the climate tech promise
When it comes to promoting climate tech investment, there is a need for investors to play the long term game.
Propelling SG businesses towards sustainable future: How to inspire emissions plan creation
There are several steps to encourage businesses to develop emission plan, starting with involving CFOs and finance teams.
Unveiling the eco gender gap: Essential insights for a sustainable future
Eco gender gap is when solutions to tackle climate change seem to be geared only toward women. How should businesses deal with this?
Why sustainable power starts with data
Global power companies use data to determine where to allocate their budget for new projects and predict which assets are most likely to fail.
THOUGHT LEADERSHIP
Strategies for Singaporean businesses to thrive in uncertainty — Part 1
Singaporean businesses must adapt to a rapidly changing market by prioritising agility, innovation, and strategic partnerships.
Human-driven interaction in an AI-driven world
There is a fine balance that needs to be struck between the magic of AI and the wonder of human centred innovation.
Cybersecurity in Asia: Trending toward a safer digital future
Cybersecurity in Asia has shifted from just being a protective measure to something much bigger—anticipating what’s next.
The Asian crypto tigers: Roaring into the future of digital currency in Eastern Asia
As CEO of a major cryptocurrency exchange, I believe CEXes will remain key in bringing the next billion users to crypto.
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Image Credit: 123RF.
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