This week’s Southeast Asia startup news showcases a mix of legal challenges and financial triumphs.
Nasdaq-listed Society Pass Inc. faces a US$750K payout to its ex-CTO, while Evo Commerce secures US$2.8M for expansion. Sustainable farming startup Koltiva bags a “seven-figure” Series A funding round, and RegenX gains US$500K for regenerative agriculture tech.
Gene Solutions receives US$21M in Series B funding, and INSEACT gets acquired by Karang Foodie. Insurtech bolttech raises US$50M, and Grab introduces a Web3 wallet for its Singaporean user base.
Plus, a call for more female investors in Indonesia and CrossFund’s US$1.5M fresh funding for expansion.
Society Pass ordered to pay US$750K to ex-CTO
In a significant blow to Nasdaq-listed Society Pass Inc., a US court ordered the data-driven loyalty company to pay approximately US$750,000 to its former CTO, Rahul Narain, for breaching his employment contract.
The judgement was delivered on September 13 by the Supreme Court of the State of New York (the US) on a lawsuit filed by Narain four years ago.
The court will likely add a 9 per cent interest rate, adding another US$270,000 to the total amount.
“…Dennis Nguyen’s email sent in connection with the Warrant is prima facie evidence that the Plaintiff is entitled to 130 shares at a valuation of $749,190 as of September 4, 2019, and the Defendant fails submit any evidence to rebut his prima facie showing,” the judgement (a copy is in e27‘s possession) reads.
Evo Commerce banks US$2.8M
Evo Commerce, a direct-to-consumer health & beauty startup based in Singapore, secured US$2.8 million in equity and debt financing.
Shanghai-based firm IJK Capital led the round, with participation from Carousell Co-Founder and CEO Quek Siu Rui, Fave Co-Founder Joel Neoh, and Tipsy Collective.
This comes about eight months after the D2C startup announced the completion of its pre-series A funding round of US$2 million from GSR Ventures, 33 Capital, Rainforest CEO and Co-Founder JJ Chai, Wallex Co-Founder Hiro Kiga, and BrideStory Co-Founder Emile Etienne.
The company will use the money for product development and market growth. The debt financing will be used for expanding its retail presence across Asia, including renowned retailers such as 7Eleven, Guardian, and Watsons.
Koltiva bags Series A funding
Indonesia-based sustainable farming and supply chain traceability startup Koltiva raised an undisclosed “seven-figure” USD in a Series A financing round led by AC Ventures.
Silverstrand Capital, Planet Rise, Development Finance Asia, Blue 7, The Meloy Fund, and an unnamed impact investor in Southeast Asia also joined.
Koltiva will use the fresh capital to expand its SaaS product for multinational corporations.
Koltiva digitises agribusinesses and helps smallholder producers transition to sustainable practices and traceable sourcing.
Wavemaker Impact backs RegenX
Singapore-based regenerative agriculture-focused climate tech firm RegenX secured US$500,000 in pre-seed funding from Wavemaker Impact.
RegenX, already onboarding farmers and buyers on its platform, will use the fresh round of funding to accelerate its growth in the coffee space in Vietnam.
Founded by serial entrepreneur Bao Nguyen, RegenX enables food buyers to source regenerative agri ingredients directly from Regen Ag farmers.
Conventional agriculture diminishes soil health due to the intensive use of chemical fertilisers and monocultures. This leads to a continuous decrease in yield and threatens food security and farmers’ livelihoods. Regenerative farming, on the other hand, solves climate adaptation and mitigation. Transitioning to regenerative farming, however, remains a daunting challenge for most smallholder farmers.
Mekong Capital invests US$21M in Gene Solutions
Vietnamese genetic testing company Gene Solutions received US$21 million in a Series B financing round from Fund IV of local PE firm Mekong Capital, according to a TechInAsia report.
This comes two years after the firm secured US$15 million from Mekong in 2021.
Established in 2017 by Vietnamese scientists, Gene Solutions has developed triSureFirst, a noninvasive prenatal test (NIPT) for detecting abnormalities of chromosome numbers in the fetus, such as Down Syndrome, Edwards, and Patau.
The test, based on detecting cell-free DNA of the placenta, is released into the mother’s blood to assess the risk of the fetus suffering from birth defects due to chromosomal number abnormalities.
INSEACT acquired by Karang Foodie
Singapore-based alternative protein company INSEACT was acquired by local company Karang Foodie in an all-cash deal.
Other details of the deal remain undisclosed.
INSEACT specialises in producing sustainable insect protein for aquaculture, starting with shrimp feed. It uses waste from palm oil operations as a raw material to feed the insects. It enables a fully circular economy by redirecting waste streams from palm oil production away from carbon-emitting landfills to be bioconverted by BSF.
The process generates three products: protein, oil, and organic fertiliser. The protein products are XFprotein (a nutrient-rich animal feed ingredient obtained from dried and ground black soldier fly larvae), XFoil (a clarified insect oil extracted from its farmed black soldier fly larvae), and XFfrass (a by-product of black soldier fly larvae composting).
LeapFrog joins bolttech’s US$50M round
Singapore-based insurtech company bolttech raised US$50 million from impact investor LeapFrog Investments, bringing its total Series B round to US$246 million.
bolttech will use the new capital to grow in emerging markets and expand its technology-enabled ecosystem for protection and insurance for emerging consumers.
LeapFrog’s track record with tech-enabled insurance businesses in Africa and Asia will help bolttech to target its products to these growing markets.
In May this year, bolttech closed its Series B round at US$196 million, led by Japanese insurance holding company Tokio Marine.
Launched in 2020, bolttech aims to make connections between insurers, distributors and customers easier and more efficient to buy and sell insurance and protection products. It partners with insurers, telcos, retailers, banks, e-commerce and digital destinations to embed insurance into their customer journeys at the point of need.
‘Indonesia needs more female investors’
Helen Wong, Managing Partner at early-stage VC firm AC Ventures, said Indonesia needs more female investors willing to back female founders.
Addressing regional policymakers and prominent business leaders at the Women’s CEO Forum at the ASEAN Business & Investment Summit (ABIS) 2023 in Jakarta, she said women entrepreneurs are key economic drivers.
“In a market as vibrant as Indonesia, women entrepreneurs are not just fulfilling a social role; they are key economic drivers. Our research indicates that investing in women-led businesses is not just the right thing to do, it’s the smart thing to do,” said Wong.
Grab rolls out Web3 wallet for Singapore userbase
In a significant move, Southeast Asia’s super-app giant Grab, launched a web3 wallet designed specifically for its Singaporean user base.
The technology behind the new feature is provided by Polygon, a platform striving to establish a multi-chain blockchain system compatible with Ethereum.
According to reports initially covered by The Defiant, Grab’s web3 wallet is gaining attention among users in Singapore. The wallet facilitates payments using XSGD, a stablecoin backed by the Singaporean dollar and issued by StraitsX.
CrossFund secures US$1.5M
Singapore- and Vietnam-based early-stage investment platform CrossFund raised US$1.5 million in fresh funding from undisclosed investors at a US$47 million valuation.
The fintech startup will use the funds to expand its presence in EMEA (Europe, the Middle East, and Africa), where 40 per cent of its 15,000 accredited investors are based.
Founded in 2021 by Ben Cardarelli and Davide Cali, CrossFund is an equity financing tool for early-stage startups in Southeast Asia and Africa. Investors can own equity in international startups with as little as US$5,000.
CrossFund leverages data to match its investors with startups based on sector, stage, geography, areas of expertise, and other more granular factors. The platform also accepts investments in crypto, leveraging third-party providers. It is soon launching a secondary market to foster liquidity for investors and founders.
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