How GHARAGE leverages resources of its German parent to help Asian startups expand into Europe

Today, Hamburg (Germany)-headquartered GHARAGE, which works in foresight and intelligence, venture building and venture investing, announced its expansion into Asia. Based in Singapore, Gharage APAC will invest and innovate with early-stage travel and retail startups.

The firm is backed by leading global travel retailer and wholesaler Gebr. Heinemann. It has a portfolio of diverse ventures, including an on-demand airport delivery platform, a web3 community for whisky collectibles and a new luxury retail experience for airports.

e27 spoke with GHARAGE APAC Head Darren Soh about its plans in Asia.

Edited excerpts:

What inspired GHARAGE to expand into the Asia Pacific region, and what are your primary goals for this expansion?

Since 2020, we have primarily been venture-building and investing from Hamburg into Europe alongside Gebr. Heinemann’s headquarters. The group Gebr. Heinemann is operating in global travel retail with a global target group.

In Asia, we note that consumers have diverse and unique needs alongside a different brand environment and tech environment with the fast adoption of tech and innovation. Throughout the last few years, founders in Asia have built some of the fastest-growing and most innovative companies in the travel and retail ecosystem.

Also Read: How travel apps are stirring up wanderlust among youngsters in Asia

Our launch in Asia Pacific allows us to tap and invest in the region’s innovation and bring it to our customers globally. The backing of Gebr. Heinemann may also provide strategic levers for GHARAGE and the founders we work with.

What specific qualities do you look for in the Asian tech startups you invest in, and how do these differ from the startups you invest in within travel and retail in Europe?

The fields, technology, diligence lens and process we apply will not differ fundamentally from the startups we invest in within travel and retail in Europe. However, we expect to see more tech/digital solutions catering to the Asian markets than European markets, where consumer brands are more prevalent.

What are the average ticket size and the number of investments you plan to make in Asia? Do you target any specific markets in Asia?

The average ticket size will vary depending on the stage of the target company; we intend to take non-associate positions with our first cheque in pre-Seed to Series A companies.

We will initially target Southeast Asia and Australia, given the resources that we currently have, but we are open to working with innovative companies in any Asian markets.

How does GHARAGE approach due diligence when evaluating potential investment opportunities in Asia Pacific?

As mentioned, our diligence lens and process will stay within what we use for our European startups. We will evaluate opportunities by conducting diligence on its core fundamentals, founding team, potential return profile and our ability to add value to the company with GHARAGE’s and Gebr. Heinemann’s network and resources.

Also Read: How KKday saved for a rainy day when many travel startups called it a day during COVID-19

We also see that the current landscape is being weighed down by macroeconomic conditions such as rising interest rates and inflationary pressures, making many investors, including us, more cautious. Instead of purely focusing on growth, we will spend more time assessing the companies’ fundamentals and ability to grow sustainably or become profitable in the long run.

How do you see the Asian tech startup ecosystem evolving in the next few years, and what impact do you expect GHARAGE to have on this ecosystem?

We believe that the Asian tech startup ecosystem will continue to mature and churn out more interesting, innovative solutions and technology in the future. We note that an increasingly diverse set of investors have established themselves in Asia to provide capital and support to the startup ecosystem.

With a relatively increasing availability of investors for startups to pick from, the value-add beyond capital that investors bring will become a strong differentiating factor. Our ability to potentially open doors for startups to access a robust global network and ecosystem within travel and retail can help accelerate growth for startups in the relevant verticals and hopefully further spur innovation in the ecosystem.

What sets the firm apart from other venture capital firms in the Asia Pacific region, and how do you leverage your unique strengths to create value for your portfolio companies?

GHARGE is a standalone vehicle that is backed by Gebr. Heinemann. This allows us to make fast and independent decisions for any opportunity. Beyond capital, we also have the ability as a strategic partner to potentially open doors for startups to access a strong global network and ecosystem within travel and retail can help accelerate growth for startups in the relevant verticals.

How does GHARAGE work with its portfolio companies in the Asia Pacific region to help them grow and achieve their goals?

We will support our portfolio companies with our network in Asia and Europe. On a case-by-case basis, we will facilitate potential partnership discussions with our parent company depending on the needs of both parties. We thoroughly understand the difficulties and challenges of startups trying to navigate partnership discussions with large corporates and of corporates trying to work with startups. In these cases, we can function as an enabler to help accelerate adoption and resultant growth.

Also Read: What travel tech can look like for the travel industry’s revival

Given our network and operations across both regions, we possess a significant advantage in being able to help travel and retail companies in the Asia region that are looking to enter European markets (and vice versa).

How do you see GHARAGE’s investments in the Asia Pacific region contributing to the company’s overall growth and success over the next several years?

Travel retail has been a rarer, less disrupted industry in the last few years, but we see more and more innovation. Change in travel and retail is accelerating. We are starting to see brands and companies, especially in Asia, that did not exist ten years ago becoming global champions in their category. Looking at this evolution, we think change and innovation adoption is inevitable.

GHARAGE seeks to bring external innovation to Gebr. Heinemann with the mission to turn travel time into valuable time for global travellers.
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