Dear reader,
In recent months, Southeast Asian tech startups have faced significant challenges, leading to a wave of layoffs across the region. The latest company to downsize its workforce is ShopBack, a leading shopping rewards platform.
ShopBack’s decision to downsize its workforce by 24% — 195 employees –reflects a strategic shift towards sustainability and efficiency in the wake of rapid expansion.
According to CEO Henry Chan, ShopBack aggressively focused on expansion over sustainability in 2021 and early 2022 by scaling the team from 550 to over 900 when the economic situation was favourable. However, from Q2 2022, when market sentiments shifted and aggressive growth became unsustainable, its focus turned to cost efficiency. This led to the last resort.
CEO Henry Chan’s candid message underscores the gravity of the decision and his personal accountability for pursuing overly ambitious growth strategies.
Chan’s emphasis on minimising future layoffs by implementing more substantial reductions underscores the company’s long-term vision for stability and resilience.
As businesses worldwide navigate economic uncertainties, ShopBack’s strategic realignment offers valuable lessons in adaptability and prudent decision-making for sustainable growth.
Sainul,
Editor.
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NEWS
ShopBack lays off 195 employees to become ‘self-sustainable’
A leaner and more agile team, significantly different from ShopBack’s current organisational structure today, is needed to succeed, says CEO Henry Chan.
Philippine startups raised US$956M in 2023 amidst funding winter
While this is a relatively modest dip (14%) year-on-year, the number of deals increased by 16 per cent to 96 in 2023; Fintech (22 deals), B2B SaaS (14), and e-commerce (13) were the top 3 funded verticals in 2023.
Kaya Founders looks to back 30-40 startups in SEA with new funds
The VC firm has invested in 44 companies, spanning e-commerce, SaaS, healthcare, financial services, and agriculture; Kaya invests in pre-seed to Series A, with the cheque size ranging between US$100K and US$500K.
EFishery acquihires Indonesian AI-powered IoT startup DycodeX
The deal will let eFishery expand its AI plans, which include an upcoming brand called eFishery.ai; Currently, eFishery has one AI-powered product called eFeeder, which allows its clients to enable automatic feeding for fish and shrimp cultivation.
AnyMind Group sets foot in Malaysia by acquiring e-commerce enabler Arche Digital
Arche Digital’s operational expertise in e-commerce will be combined with AnyMind’s proprietary software for e-commerce and marketing to strengthen its BPaaS capabilities for enterprises in Malaysia.
B Capital closes US$750M Opportunities Fund II
Opportunities Fund II will make primary and secondary investments in later-stage companies across the VC firm’s core sectors of technology, healthcare and climate tech, with a focus on North America and Asia.
Verifiable digital identity startup Accredify raises strategic funding
The investor is Okta Ventures; Accredify uses blockchain technology to ensure the authenticity of a shared or received document, protecting against fraud and forgery.
NUS Enterprise commits US$15M to help university grads, alumni turn deeptech entrepreneurs
It will provide US$155K pre-seed funding each to successful teams under the NUS Graduate Research Innovation Programme; It aims to boost the translation of cutting-edge research and innovation by NUS faculty and researchers into impactful solutions.
GoTo Group logs adjusted profit for Q4, plans to buy back US$200M worth of shares
In Q4 2023, the company’s adjusted EBITDA improved to US$4.9M, recovering from US$197M in adjusted losses in the same period the year before; GoTo expects to hit group-level adjusted EBITDA breakeven for the full 2024 financial year.
GoTo, TikTok to launch BNPL service in Indonesia
In an earnings call upon the release of GoTo’s Q4 2023 results on March 19, GoTo Financial head Thomas Husted said BNPL has shown promising growth prospects; Financial services is expected to be a significant driver of the group’s growth.
Ex-Alibaba Group CEO Daniel Zhang joins Chinese VC firm Firstred Capital
He brings 16 years of experience to Firstred; He led the transition of Tmall from a purely PC offering into a mobile app and spearheaded the idea of “Singles Day” in the platform.
SCB 10X backs rendering tool for interior designers Spacely AI
Spacely AI is expanding its global footprint, serving users from Thailand, the US, Portugal, and several other countries; Spacely offers 12+ innovative features, 100+ interior curated premium styles, and supports more than 100+ space types.
Indonesian edutech platform PINTAR raises US$3M in pre-Series A funding
PINTAR offers various online education programmes for college and university levels, enterprise training programmes for employees, boot camp certification and masterclasses.
Binance founder unveils new project amid legal woes
The platform Giggle Academy provides education for grades one to 12 learners, according to its concept paper; It is also a zero-revenue platform that uses AI and automation and is fully online.
Crypto exchange OKX ceases services in India
The move follows Apple and Google pulling the eponymous app of OKX in the country after an Indian government agency said many crypto exchanges were operating illegally in the South Asian market.
FEATURES
AirX Carbon turns coffee grounds, rice and coconut husks into bioplastic
Its biodegradable products are used as shoe soles and in electronic devices, household appliances, and furniture; AirX has set up a production facility in Long An Province in Vietnam with a production capacity of 100 tons per month.
Forte Biotech: Helping farmers with early detection of prawn diseases in Vietnam
The timely identification of disease outbreaks allows for targeted treatment strategies, reducing the need for costly interventions; Forte Biotech was one of the three winners of the Net Zero Challenge 2023 in Vietnam.
Book Excerpt: How entrepreneurs can implement visual thinking to achieve success
In their latest book, esteemed academic lecturers Sherrie Low and Goh Ai Yat reveal the transformative potential of pictures.
KodeGo allows Filipino workers access digital skill development programmes
It implements a flexible payment scheme that includes a study-now-pay-later format while providing end-to-end career assistance and support for its students post-training; Each curriculum takes between two and 22 weeks to complete.
MiyaHealth reveals details of its expansion plan to Indonesia, the Philippines
MiyaHealth builds digital infrastructure to power healthcare. It serves all facets of healthcare by enhancing interoperability.
CONTRIBUTORY ARTICLES
From peak scrolling to personalised communities: The Gen AI solution
As AI drives change, creators aiming to build a Gen AI app must reassess data flows to craft a magical, creative Gen-AI experience with meaningful data.
Bold moves: Capitalising on market dips in edutech
The examples of Memeland and Animoca Brands highlight the potential for businesses to achieve significant leverage by strategically “buying the dip” in overlooked or undervalued sectors.
The future of AI-driven tech solutions in enhancing business infrastructure
Embracing AI-driven tech solutions offers businesses more than an edge; it provides a telescope into the future of innovation.
Multifaceted effects on Vietnam’s e-commerce: A near-term potential to break through in the Asian market
Forecasts suggest Vietnam’s e-commerce will continue growing, with Hanoi and Ho Chi Minh City remaining competitive markets.
FROM THE ARCHIVES
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It often happens that when you aim to solve a particular problem that affects a significant chunk of humanity, you end up solving a whole bunch of related and similar problems.
Ask yourself, are you building a cathedral with your startup ideas?
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What you should –and should not– say when fundraising for a crowdfunding project
New research revealed that claiming your product to be both “novel and useful” may actually ruin your chance to reach the crowdfunding goal.
4 key growth metrics startups should watch closely
In order for a startup to gain the traction it needs to propel forward, its marketing strategies must be better than average for its industry; Gauging metrics and ROI is quite a challenge during the initial phases.
How to keep your remote employees’ networks more secure
As remote working becomes more commonplace, here are some steps you can take to ensure your IT security is not compromised.
How to use podcasts to enhance your brand visibility and reach
So almost all the power of podcasting lies in your own voice; The key is to make it recognizable above all the others that the audience hears on a daily basis.
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The post Ecosystem Roundup: ShopBack cuts 195 roles | New Kaya Founders funds to back 30-40 startups | EFishery acquihires DycodeX appeared first on e27.