At AWS re:Invent 2024 in Las Vegas this December, climate tech startups Unravel Carbon and Coastal Carbon showcased how they harness Generative AI to tackle pressing environmental challenges. Speaking to e27 on the sidelines of the event, representatives from both companies shared insights into their innovative approaches and the critical role technology plays in addressing climate change.

Despite the ongoing debate about AI’s environmental footprint, both Unravel Carbon and Coastal Carbon are proving their potential for good. Coastal Carbon, known for pioneering work mapping underwater ecosystems, leverages AI to make large-scale environmental monitoring cost-effective and efficient.

Meanwhile, Unravel Carbon, a Singapore-based company, stood out as the sole representative of its country in the prestigious Unicorn Pitch Tank. The startup has gained recognition for its cutting-edge use of Generative AI to provide data-driven solutions for decarbonisation, empowering businesses to meet sustainability goals.

These companies highlight the duality of AI’s impact: while it has its challenges, its capabilities in accelerating climate action are undeniable.

Unravel Carbon: Bridging global gaps in sustainability with AI

Unravel Carbon is pioneering the integration of artificial intelligence in addressing complex challenges tied to sustainability and decarbonisation. Recently, the company achieved a significant milestone with the launch of its International Sustainability Standards Board (ISSB)-certified reporting module at the Singapore Stock Exchange (SGX).

Also Read: Amasia introduces impact assessment framework for climate tech companies

“We are the world’s first AI-assisted reporting module for this framework,” said Grace Sai, CEO of Unravel Carbon. The module, designed in alignment with the ISSB, aims to streamline corporate climate disclosures. “It helps enterprises break down the framework, understand it, and respond effectively,” Sai explained.

The new product leverages AI for peer benchmarking and automation, offering businesses insights into their climate performance. “Our tool turns company data into emissions data, providing a clear picture of hot spots and potential future states,” Sai added.

Unravel Carbon’s innovations have propelled its global footprint, with its solutions now used in over 50 countries and available in more than 70 languages. This year, the company marked its entry into the US, United Arab Emirates, and Thailand, proving its adaptability across markets. “We are growing two times year on year,” Sai noted, underscoring the commercial success of their technology.

Despite these achievements, challenges remain. Sai highlighted the need for greater urgency among business leaders to prioritise sustainability.

“A courageous, forward-thinking approach is essential, especially as the world transitions to a lower-carbon economy,” she stated.

Unravel Carbon’s future plans include expanding into Japan and the US in early 2025, with support from partners such as AWS. The company remains committed to helping businesses decarbonise and automate sustainability processes, setting a new standard in climate technology.

Coastal Carbon: Transforming ecosystem monitoring with AI

Coastal Carbon, a geospatial tech company co-founded by Thomas Storwick and Kelly Zheng, aims to push the boundaries of ecosystem monitoring through innovative applications of Generative AI. Established two years ago, the company has carved out a niche in mapping and monitoring underwater and coastal ecosystems, tackling complex challenges that conventional methods struggle to address.

Also Read: How VFlowTech plans to power Pulau Ubin towards a sustainable future with its batteries

“We started in underwater and coastal ecosystems because this was a particularly hard problem,” said Storwick, the company’s COO. “We could prove our models were not only technically challenging but also novel, valuable, and far more cost-effective than existing techniques.”

Storwick recounted a project where divers manually mapped seagrass over 10 square kilometres, a process that took months and cost hundreds of thousands of dollars. “The capability to monitor these ecosystems at scale did not exist, which is why we chose coastal and underwater ecosystems as our first focus,” he said.

While the company began with seagrass, kelps, and mangroves, it has since broadened its scope. Leveraging its Generative AI foundation models, Coastal Carbon now monitors diverse ecosystems and physical assets such as forests, buildings, and roads.

For clients with extensive geospatial expertise, Coastal Carbon offers tools to manage vast data pipelines and customise models for specific needs. However, it also caters to less specialised organisations, creating tailored solutions to provide critical insights. “For example, we have worked with solar panel investors to ensure their projects are on schedule and in compliance with agreements,” Storwick explained.

The company’s work has also extended to blue carbon credit organisations and conservation groups. It helps assess ecosystem threats, estimate carbon sequestration, and measure the impact of conservation efforts. Its Generative AI models allow it to map mangrove forests across hundreds of kilometres to the individual tree level. This technology is particularly valuable in regions such as Southeast Asia (SEA), where ecosystems often span borders and are difficult to monitor comprehensively.

“There is a huge kelp, seagrass, seaweed, and mangrove ecosystem in SEA that is very hard to manage,” Storwick noted. “We have not done mangrove mapping there yet, but we would love to, given the challenges of obtaining holistic data in the region.”

Also Read: Amasia introduces impact assessment framework for climate tech companies

When asked about the company’s upcoming plans, Storwick emphasised the company’s focus on meaningful collaboration. “It’s very important to us to work with clients we can truly help,” he said. “Many of our clients are trying to understand the world using language models, but those weren’t built for this data. Instead, we use large world models to give them the breadth and scope of data they need.”

Coastal Carbon’s credibility has been bolstered by milestones such as participating in the HF Zero accelerator and winning Amazon’s Compute for Climate Fellowship. These achievements provided significant resources, enabling the team of 15 across Canada and the US to scale its ambitions.

With its foundation model set to launch on AWS JumpStart, Coastal Carbon is inviting the geospatial community to explore its tools. “We are excited to see what can be built,” said Storwick. “Come try our models, and let us see what is possible.”

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Southeast Asia is a fintech powerhouse. ASEAN’s fintech startups raised over US$1.4 billion in 2024 amidst the global economic challenges, marking only a marginal per cent YoY decline. In comparison, global fintech funding fell by 28 per cent YoY to US$39 billion in the first nine months of the year.

Home to a diverse and rapidly growing population of over 680 million people, Southeast Asia presents fertile ground for fintech solutions addressing financial inclusion, digital payments, lending, and wealth management.

The burgeoning middle class, coupled with high smartphone penetration and increasing internet connectivity, has driven significant adoption of digital financial services. Countries such as Indonesia, Vietnam, and the Philippines are emerging as hotspots for fintech investment, fuelled by a growing appetite for financial democratisation and tech-enabled solutions.

This feature highlights the most notable funding rounds of 2024, spotlighting the startups that not only secured record-breaking investments but are also shaping the future of financial services in the region.

Mynt

Mynt provides a digital wallet and lending platform for consumers and businesses. The platform, Fuse Lending, partners with banks to provide consumer and business loans. It also owns GCash, a mobile wallet that can be used for remittance service, bill payment, online shopping, and more.

Country: The Philippines
Founding year: 2015
Funding raised in 2024: Undisclosed
Total funding raised since inception: US$475 million
Investors: Mitsubishi Corporation, Warburg Pincus, Insight Partners, Bow Wave Capital Management, Amplo, Ayala,
Ant Group, and Globe Telecom.

Also Read: Fintech investments in SEA see record drop in Q3: Tracxn

Akulaku

Akulaku is an online marketplace for point-of-sale financing. It provides financing for multiple online and offline products, including mobiles, laptops, electrical household appliances, and more. The company enables users to make instalment payments via credit/debit cards.

Country: Indonesia
Founding year: 2014
Funding raised in 2024: US$100 million
Total funding raised since inception: US$430 million
Investors: HSBC, MUFG, Lend East, Siam Commercial Bank, Silverhorn, Ant Group, FinUp, Blue Sky Alternative Investments, Qiming Venture Partners, Peak XV Partners, Square Peg Ventures, MDI Ventures, Atami Capital, Jungle Ventures, Alpha JWC Ventures, GMO Venture Partners, 500 Global, Eight Roads Ventures, DCM Ventures, China Growth Capital, IDG Global Solutions, IDG Capital, Shunwei Capital, Arbor Ventures, Innoven Capital, Capria, Weiguang Ventures, and January Capital.

Ascend Money

Ascend Money is a financial services platform for individuals. Its product includes True Money, an app-based wallet for money transfers and online payments, Ascend Wealth for mutual funds, Ascend Nano for consumer and business loans, and more.

Country: Thailand
Founding year: 2013
Funding raised in 2024: US$195 million
Total funding raised since inception: US$345 million
Investors: MUFG, Krungsri Finnovate, Bow Wave Capital Management, Charoen Pokphand Group, and Ant Group.

NIUM

NIUM provides cross-border money transfer solutions for businesses. It offers remittance-as-a-service technology to businesses in the fintech, travel, e-commerce, and banking sectors. NIUM also offers APIs to support reporting, tracking, bookkeeping, reconciliation, invoicing, and compliance solutions.

Country: Singapore
Founding year: 2014
Funding raised in 2024: US$50 million
Total funding raised since inception: US$312.5 million
Investors: NewView Capital, Tribe Capital, Operator Stack, Vertex Growth, Riverwood Capital, RocketCapital Investment, Beacon VC, Visa, Temasek, GIC, Atinum Investment, BRI Ventures, Vertex Ventures, GSR Ventures, MDI Ventures, GSR Ventures, Rocket Internet, SBI Ven Capital, Vertex Holdings, Fullerton Financial Holdings, Global Founders Capital, European Union, Ripple, CreedCap Asia Advisors, Innoven Capital, Flexcap Ventures Management, Ncore Ventures, API-First Index, and CapitalSG.

Funding Societies

Funding Societies or Modalku is a P2P marketplace for business loans. It offers multiple loan products including invoice financing, micro-financing, term financing, and more. Modalku features an app-based platform for SMEs to apply for loans and investors to invest in business loans. Investors are offered ROI for the invested funds based on investment tenure and interest rates.

Country: Singapore
Founding year: 2015
Funding raised in 2024: Undisclosed
Total funding raised since inception: US$216.5 million
Investors: Maybank Philippines, Khazanah Nasional Berhad, Cgcdigital, Norfund, Alteriqcapital, Aument Capital, Orange Bloom, HSBC, SoftBank Vision Fund, VNG, Rapyd, EDBI, Indies Capital Partners, K3 Ventures, BRI Ventures, Peak XV Partners, Ascend Vietnam Ventures, 500 Global, Helicap, Social impact bond, Lendahand, Samsung Venture Investment, AMTD, SGInnovate, Qualgro, Endeavor, SBVA, Golden Gate Ventures, Alpha JWC Ventures, Line Ventures, National University of Singapore, Flybridge Capital Partners, SixThirty, Sumieo Mitsui Banking Corporation, Triputra Group, 1337 Accelerator Fund, Innoven Capital, FinTech SuperCharger, RB Investments, The Graduate Syndicate, PacificBridge Capital, Sea Dragons, SPH Ventures, Sinergi Satu Media, Blue7, Iris Capital Partners, Vulpes Ventures, United Family, Mahanusa Capital, Ajex Investment Limited, and Funding Investment Holdings.

Atome

An online marketplace offering multi-category products on purchase finance. The platform offers solutions for buy now, pay later, and consumer financing. The product catalogue includes beauty, fashion, home decor, baby care, and electronics.

Also Read: Atome Financial secures access to US$200M credit facility to drive SEA expansion

Country: Singapore
Founding year: 2016
Funding raised in 2024: Undisclosed
Total funding raised since inception: US$170 million
Investors: EvolutionX, Temasek, DBS, HSBC, Advance Intelligence Group, and JDAC Capital.

Sygnum

Sygnum offers banking solutions for digital assets. It offers multiple solutions, such as custody, brokerage, tokenization, asset management, lending, B2B Banking, and more. The firm also offers venture capital funds for digital asset companies.

Also Read: a

Country: Singapore/Switzerland
Founding year: 2017
Funding raised in 2024: US$40 million
Total funding raised since inception: US$160 million
Investors: Azimut, Sun Hung Kai & Co, META Group, Animoca Brands, WeMade Entertainment, SBI Group, SCB 10X,
SBI Digital Asset Holdings, Singtel Innov8, Swiss Founders Fund, BitRock Capital, Ternary Fund Management, Wille Finance, and Mutschler Ventures.

Validus

Validus provides a P2P lending platform for business loans. The marketplace connects borrowers with lenders for multiple business loan products including invoice financing, purchase order financing, working capital loans, and enterprise financing schemes. It also provides financial news and a loan calculator.

Country: Singapore
Founding year: 2015
Funding raised in 2024:US$50 million
Total funding raised since inception: US$108 million
Investors: HSBC, Lendable, 01Fintech, NongHyup Financial Group, The Norinchukin Bank, Aizawa Asset Management, Vertex Ventures, Vertex Growth, VinaCapital, FMO, Lotte F&L Singapore, Fasanara, Openspace Ventures, AddVentures, The Orion Fund, Banyan, Rising Straits, East Advisory, Adiara Pte Ltd, Cargo, Cathay Holdings, Cathay Financial Holdings, A1 Capital, Nuvo Capital, EDBI, Global Brain, K3 Ventures, Ephesus Capital, Do Ventures, Sea Frontier Fund, Capital V, and CapitalSG.

LinkAja

LinkAja is an app-based mobile payment platform for consumers. The fintech startup supports QR code and NFC-based payments. Services offered include money transfers, data top-ups, bill payments, purchase of game vouchers, and donations. Users can make payments using a token code at LinkAja merchants.

Country: Indonesia
Founding year: 2019
Funding raised in 2024: Undisclosed
Total funding raised since inception: US$100 million
Investors: Mitsui, Gojek, Grab, Telkomsel, BRI Ventures, and Mandiri Capital.

Partior

Partior is a blockchain-based clearing and settlement network. The network allows banks and payment service providers to access real-time, cross-border, multi-currency clearing and settlement

Country: Singapore
Founding year: 2021
Funding raised in 2024: US$60 million
Total funding raised since inception: US$91 million
Investors: Peak XV Partners, Valor Capital Group, Jump Trading, Temasek, J P Morgan, Standard Chartered, Deutsche Bank, and DBS Bank.

Syfe

Syfe is an app based on trading in ETFs and stocks. It allows users to buy, sell, and trade ETFs and stocks through app-based platforms. Syfe features a digitised wealth manager for risk assessment, tracking investment performance, customizing investment portfolios, and accessing recommendations & insights for users.

Country: Singapore
Founding year: 2017
Funding raised in 2024: US$27 million
Total funding raised since inception: US$85.6 million
Investors: Valar Ventures, Unbound, Presight Capital, Apeiron Investment Group, Unbound, AmpVentures, Shubham Global Ventures, Tona Investment, SBM Ventures, CVP, J B Ventures, Rawlinson & Hunter, Moon Land Holding, Pitanga Invest, GE32, ICOA Ug, and Altruistas.

Osome

Osome is a software-based accounting service for small and medium-sized businesses. fintech firm offers services for accounting, taxation, bookkeeping, business reporting, and payroll management.

Country: Singapore
Founding year: 2017
Funding raised in 2024: Undisclosed
Total funding raised since inception: US$75 million
Investors: Constructor Capital, Altair, Illuminate Financial, AFG, Rockstone Ventures, Target Global, Altair Capital, Phystech Ventures, s16vc, ACE & Company, HS Investments, Terra VC, LVL1 Group, Masik Enterprises, AltaClub, Bon Vivant Holdings, Berryfield Ventures, Pagil, Adru Tech, Elliott Trade and Investment, Cognitum, Banean, Digital Direction Singapore Services, XA Network, 10 Square Capital, Altair Capital, AdFirst, Ad.ru, INVESTORO, and GLOBAL ACCELERATION ACADEMY.

Honest

Honest is a provider of an online lending platform offering personal credit cards. It offers a digital credit card called Honest Card. The cards can be used to buy in conventional retail and e-commerce transactions and bill payments.

Country: Indonesia
Founding year: 2019
Funding raised in 2024: US$21.5 million
Total funding raised since inception: US$61.2 million
Investors: Rakuten, Jetha Global, Orient, Insignia Ventures Partners, Better Capital, XYZ Venture Capital, Alumni Ventures, Digital Horizon, GMO Venture Partners, Odyssey Venture Partners, Enovate Capital, South Quad, Klever Internet, Village Global, AdFirst, Broadhaven Ventures, and Launchbay Capital.

AwanTunai

AwanTunai provides supply chain digitisation by ERP systems with embedded financing. Its ERP infrastructure captures proprietary transaction data that fuels the inventory purchase embedded financing. The firm serves traditional suppliers with an ERP system and traditional micro-merchants with an Android app. Both suppliers and merchants are able to access embedded financing to purchase inventory.

Country: Indonesia
Founding year: 2017
Funding raised in 2024: U$S27.5 million
Total funding raised since inception: US$55.8 million
Investors: Norfund, MUFG Innovation Partners, Finnfund, IFC, Global Brain, Insignia Ventures Partners, OCBC NISP Ventura, Battery Road Digital, Atlas Pacific Capital, BRI Ventures, Accial Capital, AMTD Group, Pegasus Tech Ventures, PayPal Innovation Lab, Tembusu Partners, and Inclusive Fintech 50.

Salmon

Salmon offers a platform that enables customers to access financial products from partners registered with the Securities and Exchange Commission (SEC) in the Philippines.

Country: The Philippines
Founding year: 2022
Funding raised in 2024: U$S30 million
Total funding raised since inception: US$55 million
Investors: IFC, Lunate, Northstar Group, Argentem Creek Partners, TNB Aura, and DisruptAD.

Capital C

Capital C provides financial solutions for lending management. The fintech venture provides users with loans for individuals, including emerging financial products like earned wage access and business loans and lending products for SMEs.

Also Read: Capital C bags investment to build financial inclusion super app for SEA

Country: Singapore
Founding year: 2011
Funding raised in 2024: Undisclosed
Total funding raised since inception: US$53.7 million
Investors: Phillip Private Equity, Azure Capital, Phillip Capital, Luminor Capital, Paradise Group, and Citystate Group.

Amartha

Amartha is a P2P lending platform that connects micro-entrepreneurs and SMEs with investors. It allows individual and institutional investors to invest on its platform. The borrowers post a listing on the platform specifying the amount and tenure of the loan. The lenders can browse and choose the desired listings.

Country: Indonesia
Founding year: 2010
Funding raised in 2024: US$17.5 million
Total funding raised since inception: US$53 million
Investors: Accion, Maj Invest, Women’s World Banking, Community Investment Management, Norfund, MDI Ventures, Mandiri Capital Indonesia, UOB, Lendable, Line Ventures, Bamboo Capital Partners, Beenext, MidPlaza, Lynx Asia Partners, The Graduate Syndicate, SBI Investment, and Z Venture Capital.

Finture

Finture provides POS financing with instalments, tracking expenses, bill payment reminders, and shopping payments.

Country: Indonesia
Founding year: 2021
Funding raised in 2024: US$30 million
Total funding raised since inception: US$50 million
Investors: Mindworks Capital, XVC, Antao Capital, SWC, Richen Pioneer, Tortola Capital, and BitRock Capital.

UNO Digital Bank

UNO offers a personal digital banking platform. It provides users with a digital bank that offers a range of banking services and products to customers. The platform also offers a comprehensive and convenient banking solution for its customers, emphasising accessibility, security, and financial growth opportunities.

Country: The Philippines
Founding year: 2020
Funding raised in 2024: US$32.1 million
Total funding raised since inception: US$47.5 million
Investors: Gateway Partners, Creador, and NextInfinityTech.

Ayoconnect

Ayoconnect offers a platform that provides open banking API solutions. Customised APIs offer solutions to direct debit by collecting recurring and one-off payments directly from customer bank accounts, recurring payment management for revenue operation with subscription billing solutions, virtual card numbers, and more.

Country: Indonesia
Founding year: 2016
Funding raised in 2024: US$2.5 million
Total funding raised since inception: US$40.5 million
Investors: Mandiri Capital Indonesia, SIG Venture Capital, CE Innovation Capital, PayU, Prosus, Tiger Global Management, AltoPartners, Patamar Capital, Taurus Ventures, Colopl Next, Grayscale Ventures, and per cheque.

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Data Credit: Tracxn
Image Credit: 123RF.

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Want to tackle climate change from home? Take a look in your cupboard. Where are you buying your products from and how are they produced?

It is hard to reimagine our supply chains today as the average consumer is spoilt for choice when it comes to their shopping habits. Taking a closer look at our consumption habits means being conscious about buying behaviour and understanding the socio-economic and environmental impact of the products we consume.

Let’s take tea as our example which is almost a staple in every household. In late Autumn many plants around us are beginning their descent for Winter but tea leaves are still shining bright. Tea leaves aka Cameillia Sinensis are renowned for their glossy beauty and resilience. The cultivation and distribution of the second most loved drink in the world offers an interesting use case for blockchain technology.

The journey of tea

Tea cultivation began in China around 350 CE. In 780 CE, Lu Yu published one of the first books about tea, detailing tea leaf shapes and ceremonies. By the early twelfth century, merchants had introduced tea to the Muslim world, where it was consumed in place of wine and other forbidden stimulants. It would take almost another 500 years for tea to become a global powerhouse. There is a message here about never giving up but this is not the focus of our article today.

The colonial impact and tea’s global spread

Although a lot of our colonised past is tainted with invasion, injustice and systemic racism, the awareness of many global plants and products must be attributed to this time also. In the nineteenth century, the British, addicted to tea, began cultivating native varieties in India, relying on indentured Central Indian labourers. By the late 1880s, British imports of tea from India and Ceylon surpassed those from China, embedding tea deeply into British culture and identity.

Using blockchain to track sustainable consumption

Eco-conscious consumers today are fed up with brands that over-promise in regard to their green objectives. Greenwashing, where companies falsely claim to be environmentally friendly, is still commonplace but as consumers have more places to vent online, brands need to act ethically to avoid new levels of backlash.

The demand for transparency when it comes to production and distribution is surging. Blockchain technology offers a new means to verify and validate the sustainability of tea production and consumption, providing transparency from farm to cup.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

By integrating Internet of Things (IoT) sensors in the supply chain, data on energy consumption, water usage, and carbon emissions can be recorded on the blockchain. This data is transparent and tamper-proof, allowing consumers to trust the sustainability claims of their favourite tea brands.

Ensuring ethical sourcing

Blockchain can track tea leaves from their origin in fields to the final product. This traceability ensures that tea is sourced ethically, fair wages are paid, and sustainable farming practices are adhered to. Consumers can scan a QR code on their tea packaging to see the entire journey of their tea, guaranteeing its authenticity and ethical production.

Supply chain transparency

Enhancing supply chain efficiency blockchain technology improves the efficiency of tea supply chains by reducing paperwork, lowering costs, and speeding up transactions. Smart contracts automate payments and agreements, ensuring that farmers receive timely payments and reducing the risk of fraud.

This increased efficiency can lower the cost of tea production, benefiting both producers and consumers. Morpheus Network leverages technology to optimise and automate supply chains. By providing end-to-end visibility and ensuring compliance with regulatory requirements, they can help businesses track their products transparently from origin to destination.

Supporting small farmers

Blockchain can also facilitate financial inclusion for small tea farmers. ReFi DAO focuses on regenerative finance, aiming to build financial systems that prioritise environmental sustainability and social equity. By integrating blockchain technology, ReFi DAO creates transparent and accountable financial ecosystems that support sustainable agricultural practices and fair trade, benefiting small tea farmers and the environment.

Furthermore, Decentralised finance (DeFi) platforms can offer microloans to farmers, using their blockchain transaction history as a form of credit scoring. This access to capital allows farmers to invest in better farming practices, increasing their yield and income.

EthicHub connects small farmers with global investors through a blockchain-based crowdlending platform. By providing micro-loans and ensuring fair interest rates, EthicHub empowers farmers to improve their agricultural practices and achieve financial stability. Their successful model in the coffee industry demonstrates the potential for similar applications in the tea sector.

Blockchain technology has the potential to revolutionise the tea industry by ensuring ethical sourcing, combating greenwashing, enhancing supply chain efficiency, and supporting small farmers. Embracing this technology can build trust with consumers, enhance environmental credibility, and contribute to a more sustainable future for the world’s second-most loved beverage.

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This article was first published on June 25, 2024

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Innovation in the financial sector has always pushed boundaries, with major leaps of advancements in the integration of technology and services. Some of such notable innovations that have vastly improved financial efficiencies include internet banking displaced paper statements and servicing at bank branches, and in most recent years, tokenised payments through mobile phones that displaced the need for physical cards.

One of the most significant shifts in the past decade has been the rise of ‘Open Banking’, where banks and financial firms share consumer data with third parties through APIs. This proliferation of Open Banking across major financial cities began with the European Union (EU) introducing the world’s first Open Banking regulations in 2015, followed closely by a ruling for the nine biggest UK banks to allow licensed start-ups direct access to their data in 2016.

Since then, other major financial hubs including Hong Kong, Japan, Australia and Singapore successively introduced similar regulations, resulting in a global boom of fintech activities that dramatically disrupted traditional financial systems, benefiting consumers and businesses alike.

Today, fintechs are set to continue displacing traditional banks. In 2021, 41 per cent of retail consumers surveyed by McKinsey said they planned to increase their fintech product exposure. In 2022, 35 per cent of the small and medium-sized enterprises (SMEs) in the United States considered using fintechs for lending, better pricing, and integration with their existing platforms while in Asia, 20 per cent of SMEs leveraged fintechs for payments and lending.

According to McKinsey’s analysis, fintechs accounted for five per cent (or US$150 billion to US$205 billion) of the global banking sector’s net revenue in 2022.  They estimate this share could increase to more than US$400 billion by 2028, representing a 15 per cent annual growth rate of fintech revenue between 2022 and 2028, three times the overall banking industry’s growth rate of roughly six per cent.

To capitalise on this demand, fintechs will need to rapidly launch relevant products and services to stay ahead of competition. However, ensuring that such products remain compliant and efficient operationally requires acute expertise and significant resources.

The details: The future of fintech with ‘as-a-service’ models

This marks the start of an accelerated adoption of ‘as-a-service’ models – an approach that allows businesses to integrate solutions without the complexity of building from the ground up. By tapping into established financial infrastructures, fintechs can create and launch customer-first products and services faster and at a fraction of the time and cost, democratising access to regulatory controls, technology and applications.

Also Read: The future of payments in SEA: Regional cooperation remains critical in pushing for progress

The initiation of ‘as-a-service’ models in the financial industry started with BaaS (or Banking-as-a-Service). Following the growth of Open Banking, fintechs were able to tap into APIs to access foundational banking products such as virtual bank accounts and local networks for collections and payments. Soon, other new constructs started getting into the market including Cards-as-a-Service, Payments-as-a-Service etc to facilitate quicker access to myriad payment platforms.

DCS Innov is set to revolutionise this space with InstaWally, one of the world’s first ‘Wallet-as-a-Service’ (WaaS) solutions that offers access to an instant mobile wallet app with embedded financial services.  As a start-up spun out from a 50-year-old financial institution that issued the first charge cards in Singapore, it leverages a set of strong core advantages that optimises fintech enablement.

InstaWally provides a mobile-first customer engagement platform, intersecting brand loyalty with payments. Besides saving on development time and resources, it further removes the burden on regulatory licences, end user onboarding and operations and maintenance of payment systems. It delivers a mobile app designed with a user interface that is constantly optimised against industry benchmarks in terms of payments experience and services.

As such, fintechs and businesses can channel limited resources towards scaling their core services and improving customer engagement while generating new revenue streams from payment solutions and increased loyalty.

Without the prerequisite of payments expertise and yet be able to incorporate related products and services into their customer platforms, businesses across industries, from retail and travel to tech and web3, will be able to easily adopt such ‘as-a-service’ models making the future of payments more inclusive, flexible, and accessible across the globe.

Also Read: How local payments are unlocking digital commerce’s potential in Latin America, Africa, and India

A future-ready, global payment ecosystem

As digital payments become the norm, businesses must be equipped to meet changing consumer preferences and expectations. More importantly, payments must also be connected globally as businesses scale and expand beyond their own shores.

Payments-as-a-service is the key to empowering fintechs and non-financial companies to access such services to complement or complete their overall customer journeys. By leveraging this model, companies can innovate faster, offer more customised payment services, and unlock the full potential of the digital economy.

The future of payments is not just about providing access—it’s about empowerment. With the right infrastructure, businesses can meet the demands of the digital-first consumer while fuelling their own growth. The message is clear: any brand is now empowered to build the next super app with financial services. Be ready to ‘bank’ with your favourite brand, very soon.

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South Korea’s semiconductor startup industry is experiencing significant growth, bolstered by substantial government investments and a robust industrial foundation.

The country holds a dominant position in the global semiconductor market, accounting for 60.5 per cent of the memory semiconductor segment, with a 70.5 per cent share in DRAM and 52.6 per cent in NAND as of 2022. 

In May 2024, President Yoon Suk-yeol announced a comprehensive support programme worth 26 trillion Korean won (approximately US$19.1 billion), encompassing financial aid, infrastructure development, research and development, and support for small and medium-sized enterprises (SMEs) within the semiconductor sector. 

This initiative includes the creation of a “semiconductor ecosystem fund” valued at 1 trillion Korean won (US$734 million) to support semiconductor companies and SMEs linked to the industry.

Additionally, the government is establishing a “mega chip cluster” near Seoul, which aims to be the world’s largest semiconductor manufacturing complex and is projected to generate millions of jobs. 

To further enhance its semiconductor capabilities, the South Korean government plans to invest US$1.66 billion over the next five years to strengthen the competitiveness of advanced industries, including semiconductors, rechargeable batteries, and biotechnology. 

These strategic investments and initiatives underscore South Korea’s commitment to fostering innovation and maintaining its leadership in the global semiconductor industry.

Also Read: Singapore’s semiconductor stars: A look at key players and startups

Here is the list of trailblazers in South Korea’s semiconductor sector.

SemiFive

SemiFive designs and develops SoC with a RISC-V. The product offerings include RISC-V Core IP and custom SoC.

Founding year: 2019
Total investments raised since inception: US$147 million
Institutional investors: Korea Investment Holdings, BonAngels Venture Partners, LB Investment, Mirae Asset, Pavilion Capital Partners, Gamechanger, UTC Investment, Intops Investment, and SBVA.

Auto-L

Auto-L manufactures lidar systems for self-driving cars and robots. Its product portfolio includes self-driving car lidar sensors and autonomous mobile robot lidar sensors.

Founding year: 2021
Total investments raised since inception: US$81.5 million
Institutional investors: ZER01NE, Hyundai Wia, HANA Micron, Autonomous.ai, Schmidt Futures, L&S Venture Capital, IK Partners, Seoul Investment Partners, POSCO Capital, and Schmidt.

Panmnesia

Panmnesia develops cache coherent interconnect (CCI) technologies using Compute Express Link (CXL). It has developed a rack-scale resource disaggregation solution called PanCluster for high-performance data centres and HPC.

Founding year: 2022
Total investments raised since inception: US$72.5 million
Institutional investors: InterVest, Korea Investment Holdings, KB Investment, WOORI Venture Partners, BSK Investment, Murex Partners, Daesung Startup Investment, Daekyo Investment, GNTech Venture Capital, SL Investment, Timeworks Investment, Quantum Ventures Korea, Yuanta Investment, T S Investment, Nvester, Smile Gate Investment, and Mirae Science and Technology Holdings.

MangoBoost

MangoBoost provides an AI-based DPU to accelerate data centre workloads. Its DPU enables data centres, supporting application performance and processing time.

Founding year: 2022
Total investments raised since inception: US$65.5 million
Institutional investors: IMM Investment, Shinhan Venture Investment, Premier Partners,
KB Investment, IM Capital Partners, Korea Development Bank Europe, Stonebridge Capital, DSC Investment, Must Asset Management, and IM Capital.

SAPEON

SAPEON provides AI processors for data processing. Its product portfolio includes AI chips, AI servers, AI cards, and an integrated hardware and software solution for cloud AI as a service in the data centre. The firm offers solutions for object detection, 5G edge cloud operating, indoor navigation, and image quality enhancement.

Founding year: 2022
Total investments raised since inception: US$45 million
Institutional investors: Ascent Equity Partners, DBCS, Hana Financial Group, Mirae Asset Venture, We Ventures, and E1.

bitsensing

bitsensing provides radar solutions for various industries. The platform offers features like vehicle monitoring, speed detection, traffic flow information, and sleep monitoring systems. It caters to automotive, smart cities traffic management, and healthcare applications.

Founding year: 2018
Total investments raised since inception: US$42 million
Institutional investors: HL Mando, Korean Development Bank, Industrial Bank of Korea,
Woori Financial Group, LIFE Asset Management, Samchully Group, ARGES, Mando Corporation, LB Investment, SJ Investment Partners, FuturePlay, Hansae, SB Partners, SparkLabs, Korea Science and Technology Holdings, Orange Fab, RISE, and Plug and Play APAC.

FADU

FADU designs and develops memory and storage architectures. Its offerings include FADU Annapurna (SSD controller and FPGA-based AIC), FADU Bravo (low-power enterprise SSD), and FADU Alpha (high-performance consumer SSD). The company also aims to develop FADU Charlie (high-performance enterprise SSD) and FADU Delta (hyper-performance enterprise SSD) with PCIe 0.0×4 and 8 interfacing. The products have applications in the semiconductors and electronics industry.

Also Read: From keypads to chips: How Polymatech advances semiconductors with sustainability at the core

Founding year: 2015
Total investments raised since inception: US$32 million
Institutional investors: Forest Partners, IBK Capital, Capstone Partners, Company K Partners, Ncore Ventures, and Positive Investment.

IVWorks

Intellectual Value Works (IVWorks) develops wide bandgap epitaxial wafer products for semiconductor fabrication. Its products include GaN FET Epiwafer and AlN Epiwafer which can be used to produce high-performance wireless and photonic integrated circuits. It has applications in power conversion ICs, 5G wireless networks, server power supply, and wireless power transfer.

Founding year: 2011
Total investments raised since inception: US$24.5 million
Institutional investors: Wonik, Wooshin Venture Investment, Hyundai Venture Investment,
DT&Investment, Korea Development Bank Europe, KB Investment, Samsung Venture Investment, Songhyun Investment, Magellan Technology Investment, Hi Investment, Enlight Ventures, and SOORIM venture capital.

Smart Radar System

Smart Radar System offers AI-enabled radar solutions for automotive. It develops various products like Retina for 4D image radar for automotive & industrial applications, IRISv offers real-time monitoring & detection solutions for traffic analysis, etc.

Founding year: 2017
Total investments raised since inception: US$24 million
Institutional investors: Korea Investment Holdings, Hemi Ventures, SPARX Group,
NEXTY Electronics, GU Equity Partners, BSK Investment, Kakao Ventures, Hyundai-invest.com, Murex Partners, and Hyundai Investment Partners.

CK EM Solution

CK EM Solution’s platform offers electrical and electronic materials based on TIM and EMI/EMC

Founding year: 2021
Total investments raised since inception: US$10 million
Institutional investors: Pebbles Investment and IBK Capital.

Power Cube Semi

Power Cube Semi designs and manufactures EV charging systems, MOSFET, and other semiconductor products.

Founding year: 2013
Total investments raised since inception: US$5.8 million
Institutional investors: Hana Ventures, Albatross Investment, Nautic Investment, Bilanx, and ANDA Asia Ventures.

SOFTPV

SOFTPV provides solutions for solar and electrode cells. Its product generates power from sunlight and general light. The firm’s other products include a soft form to boost the performance of the solar cell, soft goods, multi-functional modules, and others.

Founding year: 2017
Total investments raised since inception: US$3 million
Institutional investor: SBVA

BOS Semiconductors

BOS provides semiconductor testing, fabrication, and packaging services.

Also Read: Driving semiconductor innovation: AMD’s vision for AI and sustainability in Singapore

Founding year: 2022
Total investments raised since inception: US$1.5 million
Institutional investors: ZER01NE and Hyundai Motor Company.

DeeDiim Sensors

DeeDiim is a developer of a machine vision-based sensor for surface inspection. The product offered is Surf.Finder, an illumination system that provides a solution to detect surface defects. It can be used to improve product quality and lower manufacturing costs.

Founding year: 2017
Total investments raised since inception: US$1.2 million
Institutional investors: Laguna Investment and Lighthouse Combined Investment.

HICS Company

HICS Company offers real-time nano accuracy measurement and inspection for Hologram integration. It has developed a technology that uses light nanoscale NDM (Depth Measurement Nano), where light can be used as a ruler to measure the surface shape of the object and the internal light physical characteristics accurately to the nanometer. This technology has applications in process checks that require accurate nanometer measurements, such as semiconductors, OLED boards, smartphone microlens, etc., in the precision electronic components market.

Founding year: 2014
Total investments raised since inception: US$892,500
Institutional investors: TwoTowers Capital, Daekyo Investment, Seoul Investment Partners, MassChallenge, ActnerLab, SJ Investment Partners, and Enlight Ventures.

Blue Dot

It provides AI-based semiconductor IPs. It features 4K/8K resolution and high-definition video encoder solutions that support 5G networks for live social video, cloud gaming, immersive video VR/AR, and OTT/VOD.

Founding year: 2019
Total investments raised since inception: Undisclosed
Institutional investors: NAVER D2 Startup Factory, KB Investment, Smile Gate Investment, and BluePoint Partners.

Lake Led

Lake Led provides LED material-based technology for the petrochemical and electronics industries. It offers LED materials like metal-organic sources, precursors (trimethyl gallium, indium, and aluminium), triethyl gallium and bis-cyclopentadienyl magnesium for manufacturing epi-wafers of the LED chip manufacturing process, and MOCVD precursors.

Founding year: 2010
Total investments raised since inception: Undisclosed
Institutional investors: DSC Investment, Stonebridge Capital, NHN Investment, Hyundai Venture Investment, Premier Partners, Korea Investment Holdings, and We Ventures.

AiM Future

AiM Future provides edge AI and vision solutions. It accelerates the transition from centralized cloud-native AI to distributed intelligent edge solutions. The platform offers software, AI system integration services, and provides solutions for AI.

Founding year: 2020
Total investments raised since inception: Undisclosed
Institutional investors: L&S Venture Capital, Hi Investment, Daedeok Venture Partners, KB Investment, and WE Ventures.

HiDeep

HiDeep is a developer of 3D touch technology, which helps the touch screen to detect the amount of force exerted by the user on the screen and react accordingly. The company is also the 3D technology provider for Huawei’s Mate S phone.

Founding year: 2010
Total investments raised since inception: Undisclosed
Institutional investors: SkyLake Investment, Walden International, Big Basin Capital, BNK Venture Capital, and Celesta Capital.

RNSLab

RNSLab has developed low-power, chip-based carbon dioxide sensors. Its chips have built-in wireless connectivity, making retrofitting existing appliances easy. The sensors use MEMS technology to enable on-chip carbon dioxide detection and add multiple gas detection on the same platform.

Also Read: SEA’s role in the global semiconductor supply chain is poised to strengthen: GlobalFoundries’s Siah Soh Yun

Founding year: 2014
Total investments raised since inception: Undisclosed
Institutional investors: Digital Entertainment Ventures and Daedeok Venture Partners

Ateco

It provides a memory test handler, automation equipment, dispenser, and manipulators

Founding year: 2012
Total investments raised since inception: Undisclosed
Institutional investor: AEM.

EXSEN

EXSEN is a manufacturer of carbon dioxide gas sensors.

Founding year: 2012
Total investments raised since inception: Undisclosed
Institutional investors: ActnerLab and Tech Incubator Program for Startup.

PiQuant

PiQuant develops customised sensor modules or devices that can measure the components that users want to detect based on spectroscopy. Its offerings include customised sensor modules for smart home, smart farm, and smart factory applications; sensor solutions to improve SNR i.e. distinguish and remove the noise waves from the continuous wave and amplify it; PiScanner/LiquiScan- a mobile IoT liquid scanner which detects and measures the dose of lead, mercury, and artificial dyes from all kinds of liquid products, especially melamine from milk for babies; and MonAir- a mobile air quality measuring device.

Founding year: 2015
Total investments raised since inception: Undisclosed
Institutional investors: SparkLabs, Orange Fab Asia, and KIC Europe.

Global Bridge

Global Bridge provides wireless IoT chips and devices offering transmitting and communication solutions. Its products include Guardian RF SoC, having PAN, LAN & and based connectivity solutions; Sky Bridge (wireless CDMA transmitter & receiver solution for video & data transmission); Sky Link (wireless CDMA transmitter & receiver solution using ISM band frequency range); and System Configurations with binary CDMA technology. Has use cases in security, defense, healthcare, entertainment, fitness and other sectors.

Founding year: 2016
Total investments raised since inception: Undisclosed
Institutional investor: SparkLabs.

Sensor Topia

Sensortopia provides a sensor for sensing rain on the windshield of vehicles. The startup leverages the optical interference blocking structure of the light source for detecting and maximizing the rain-sensing efficiency. Its sensor is installed on the upper part of the windshield and controls the automatic wiper operation. It also offers a PCB pattern coil.

Founding year: 2017
Total investments raised since inception: Undisclosed
Institutional investor: ActnerLab.

SDOptics

SDOptics provides a 3D microscope, medical camera and display vision sensor.

Founding year: 2010
Total investments raised since inception: Undisclosed
Institutional investor: BNK Venture Capital.

BlueTech Korea

BlueTech offers component development, repair and maintenance services for the semiconductor industry.

Founding year: 2016
Total investments raised since inception: Undisclosed
Institutional investor: The Gain.

RC Tech

HobbyPlus RC Tech Co., Ltd specialises in remote control surface vehicles. It offers a complete product line from 1:24 to 1:8 scale.

Founding year: 2019
Total investments raised since inception: Undisclosed
Institutional investor: ReVentures.

Neo Nanotech

Neo Nanotech is a manufacturer of microelectromechanical system-based biochips. It uses microfluidics, micro-injection moulding, and MEM technologies to develop biochips based on microstructured plastic. Neo Nanotech’s product portfolio includes chips for disease diagnosis, preprocessing biosamples, and synthesis of liposomes.

Founding year: 2016
Total investments raised since inception: Undisclosed
Institutional investor: Daedeok Venture Partners.

Medicentec

Medicentec provides microelectronic device manufacturing and sensor technology services.

Founding year: 2019
Total investments raised since inception: Undisclosed
Institutional investor: Mirae Science and Technology Holdings.

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Data credit: Tracxn.

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Asia isn’t just a continent; it’s a world of contrasts. With more than 4.6 billion people spread across diverse economies, cultures, and regulatory environments, it’s a region bursting with opportunity—and complexity. For startup founders, Asia’s ecosystem is both a blessing and a challenge: the potential to tap into huge markets comes with the responsibility of understanding them.

In this guide, we’ll explore the unique strengths and challenges of Asia’s top startup hubs, offer advice on choosing the right location for your venture, and provide strategies for scaling across the region.

Understanding Asia’s startup landscape

Asia’s startup ecosystem can’t be painted with a single brushstroke. Each country offers distinct advantages that cater to specific industries and growth stages.

Singapore: A Launchpad for the region

Singapore has earned its reputation as Asia’s startup hub for good reason:

• Pro-business policies: With its low corporate taxes, ease of company registration, and robust intellectual property laws, Singapore makes it easy to start and scale.
• Access to funding: The government actively supports startups through grants and co-investment programs, while regional VCs flock to Singapore as a gateway to Southeast Asia.
• International connectivity: Singapore’s geographical position and global mindset make it an ideal base for startups aiming to scale across Asia.

However, the high cost of living and doing business can be prohibitive for early-stage startups without substantial funding.

India: The talent powerhouse

India’s strength lies in its vast pool of tech talent and growing digital economy:

• Affordable talent: India produces millions of engineers annually, providing startups with access to skilled professionals at competitive rates.
• Massive market: With over 1.4 billion people, India offers immense opportunities for B2C startups, particularly in sectors like fintech, e-commerce, and edutech.
• Startup ecosystem growth: Cities like Bangalore, Hyderabad, and Gurgaon are buzzing with innovation, incubators, and accelerator programs.

But founders should be prepared for challenges such as regulatory red tape and infrastructure gaps in some regions.

China: Scale and speed

China’s startup ecosystem is unparalleled in its speed of growth and access to funding:

• Unicorn factory: China produces more unicorns annually than any other country except the U.S.
• Tech ecosystem: With giants like Alibaba, Tencent, and Baidu leading the charge, China’s ecosystem thrives on innovation and rapid execution.
• Massive consumer market: Chinese consumers are tech-savvy and eager adopters of new products, making it a fertile ground for startups.

However, breaking into China’s market as a foreign founder can be daunting due to regulatory barriers and cultural differences.

Vietnam: The emerging contender

Vietnam is quickly becoming Southeast Asia’s rising star:

• Young, dynamic workforce: With 70 per cent of its population under 35, Vietnam offers a vibrant, tech-savvy talent pool.
• Affordable Costs: The low cost of living makes it an attractive base for startups looking to bootstrap.
• Government Support: Vietnam is investing heavily in its digital economy, with policies to encourage foreign startups.

While promising, Vietnam’s ecosystem is still maturing, and founders may face challenges in scaling beyond its borders.

Also Read: Why Southeast Asia’s locally owned adtech and martech industry will survive the recession

Choosing the right location for your startup

The decision of where to base your startup depends on three key factors: your industry, growth stage, and long-term goals.

Industry match

Each country in Asia has strengths in specific sectors. For example:

• Fintech: India, Singapore, and Hong Kong lead the way with strong regulatory frameworks and funding opportunities.
• E-commerce: Indonesia and China are prime markets due to their massive online consumer bases.
• Medtech: Japan and Singapore are strong hubs for medical technology due to their advanced healthcare infrastructure.

Growth stage

• Early-stage startups might benefit from lower-cost ecosystems like Vietnam or the Philippines, where they can stretch their budgets while testing ideas.
• Growth-stage startups looking to scale internationally might prefer Singapore or Hong Kong for their connectivity and investor networks.

Long-term goals

If you aim to build a globally recognised company, choose a hub with strong international ties. Singapore and China excel in this regard, while markets like Thailand might be better suited for regional dominance.

Strategies for scaling across Asia

Scaling across Asia is a complex but rewarding endeavour. Here’s how to do it effectively:

Start local, think regional

Even if your ultimate goal is to scale across Asia, begin by dominating one market. Establishing a strong foothold in a single country gives you the resources and credibility to expand.

Understand cultural nuances

Asia’s diversity means what works in one market might fail spectacularly in another. For example:

• In China, user experience often prioritises speed over aesthetics.
• In Japan, consumers value trust and reliability over price.

Tailor your approach to each market.

Leverage regional networks

Organisations like ASEAN and APAC-focused accelerators can provide introductions, funding, and mentorship. Partnering with local companies can also ease entry into new markets.

Also Read: Is Asia ready for programmatic job advertising?

Common challenges and how to overcome them

Regulatory complexities

Each country in Asia has its own set of regulations and navigating them can be overwhelming. Work with local advisors or consultants to ensure compliance.

Hiring talent

While Asia has a large talent pool, competition for top-tier professionals can be fierce. Offering remote work options or attractive perks can help you secure the best talent.

Funding gaps

While some countries have thriving VC ecosystems, others may require bootstrapping or exploring alternative funding options like government grants.

Success stories: Inspiration from Asian startups

Grab (Singapore)

What started as a taxi-booking app in Malaysia is now a Southeast Asian super app. Grab’s success lies in its ability to localise services for each market while maintaining a regional vision.

Byju’s (India)

India’s leading edutech platform leveraged the country’s digital transformation and hunger for affordable education. Its innovative content delivery methods now serve millions globally.

Tiki (Vietnam)

This e-commerce platform grew by focusing on local needs, such as cash-on-delivery payments, before scaling to compete with giants like Shopee and Lazada.

Building a startup that fits the ecosystem

Asia’s startup ecosystem is vast, vibrant, and full of opportunity, but success requires strategy. Founders must consider where their business fits best, how to leverage regional strengths, and how to scale in a culturally diverse market.

The journey is challenging but rewarding. For those who navigate it with insight and intention, Asia offers a launchpad not just for regional success, but for global impact.

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This article is the tenth in a series from the ASEAN GenAI Startup Report 2024. GenAI Fund invests in early-stage GenAI startups across Southeast Asia, focusing on growth strategies and exit opportunities.

The Southeast Asian (SEA) region is rapidly establishing itself as a fertile ground for Generative AI (GenAI) innovation, driven by a vibrant startup ecosystem and strong governmental support. The ASEAN GenAI Startup Report 2024 provides a comprehensive analysis of the current state and future prospects of GenAI in the region, offering insights into emerging trends, challenges, and strategies that can propel SEA to a position of global leadership in AI innovation.

Emerging trends in SEA’s GenAI landscape

The GenAI landscape in SEA is characterised by dynamic growth and diversification across various sectors. Key trends highlighted in the report include:

• Increased focus on niche markets and specialised applications: SEA startups increasingly target niche markets with specialised GenAI applications, tailoring solutions to meet specific industry needs. This trend is driven by the realisation that customisation and specialisation can lead to deeper market penetration and higher barriers to entry against competition.
• Collaboration between startups and big tech: There is a growing trend of partnerships between local startups and global tech giants. These collaborations are often symbiotic, with startups leveraging Big Tech’s advanced technologies and broad market access while contributing local insights and agility.
• Rise of mergers and acquisitions (M&A): The GenAI space in SEA is seeing increased M&A activity as startups seek to accelerate growth and expand capabilities through strategic acquisitions. This consolidation is expected to strengthen the ecosystem, making it more competitive globally.

Challenges ahead

While the future is bright, SEA GenAI startups face several challenges that could impede their growth and scalability:

• Talent shortage: Despite a large pool of IT professionals, there is a significant gap in highly specialised AI talent. This shortage could limit the region’s ability to innovate and keep pace with global advancements in AI.
• Regulatory hurdles: Diverse regulatory environments across SEA countries can complicate data governance and cross-border data flows, posing challenges for startups that aim to scale across the region.
• Infrastructure inadequacies: While countries such as Singapore and Malaysia are well-equipped, other parts of the region still lack the necessary infrastructure to support high-intensive AI operations, potentially hindering the development and deployment of AI solutions.

Also Read: The SEA advantage: Harnessing regional strengths in the GenAI era

Strategic roadmap for GenAI ecosystem

To navigate these challenges and capitalise on emerging opportunities, the report suggests a strategic roadmap that includes:

• Enhancing AI education and talent development: Governments and educational institutions must invest in specialised AI training and education programs to build a robust talent pipeline. Initiatives could include scholarships, research grants, and partnerships with industry leaders to provide practical, hands-on training.
• Harmonising regulatory frameworks: SEA could benefit from a more harmonised approach to AI regulation to facilitate easier cross-border operations and data exchanges. Establishing common standards and practices across the region would simplify compliance and foster a more integrated market.
• Strengthening infrastructure: Investment in digital infrastructure is critical to support the growth of AI startups. This includes not only physical infrastructure like data centres but also the digital frameworks that support secure, fast, and reliable data transmission and processing.
• Fostering innovation through government support: Continued government support through funding, incentives, and international collaboration can help nurture the ecosystem. Policies that promote innovation, protect intellectual property, and encourage startup growth are essential.
• Encouraging international collaboration: SEA startups should be encouraged to form partnerships and collaborations beyond regional borders. This will not only provide access to new markets but also expose these startups to global best practices and advanced technologies.

The trajectory of GenAI in SEA is poised for remarkable growth, with the potential to influence global AI developments significantly. By focusing on building a robust talent pool, harmonising regulatory frameworks, enhancing infrastructure, and fostering a culture of innovation and collaboration, SEA can solidify its place as a leader in the GenAI space. 

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The renovation industry, a key contributor to Singapore’s urban lifestyle and development, is increasingly grappling with a serious challenge. In recent years, cases of renovation nightmare stories and scams taking place in renovation projects have surged, threatening both homeowners and interior designers themselves. These cases not only cause financial distress to the parties involved but also damage trust in an industry that plays a vital role in shaping Singapore’s living spaces.

The growing problem of renovation scams

Renovation scams in Singapore often involve unreliable IDs, shoddy workmanship, lack of transparency, and can take place in a few forms. 

The most straightforward case involves misappropriation of funds, where homeowners’ funds paid to the IDs do not go towards the deliverables and works but towards their own pockets. In some cases, this takes place without the firm or bosses being aware of their actions.

In the worst case, a company can even shut down operations without prior warning. When either of these happens, homeowners are left stranded before their renovation even takes place or is completed. 

The second and perhaps more sinister form comes about when the homeowner makes upfront payments to their ID firms based on progressive payment milestones, and are promised certain deliverables but the workmanship and end result is not up to expectation.

Oftentimes, homeowners also have little to no say by the time it comes to this, since they had already paid the ID, sometimes in full.

Resistance to change in the traditional industry

The renovation sector is traditionally slow to adopt new technologies. Many firms rely on manual processes and outdated payment systems, clinging to long-standing practices. For small and medium-sized enterprises (SMEs), the perceived high cost and complexity of digital solutions deter innovation. This reluctance not only fosters inefficiency but also leaves businesses and homeowners vulnerable to scams and financial mismanagement.

Also Read: Singapore’s green future – Are homes and condominiums ready for EVs?

Contractors, subcontractors, and designers all play a role and contribute to this problem — making it easier for accountability to slip through the cracks. Without proper digital tracking systems, it becomes difficult for firms and bosses to monitor transactions and hold their interior designer hires accountable throughout the whole renovation & project management process.

On top of that, traditional payment methods like cash or bank transfers, although simple and straightforward, make it easy for dishonest IDs to misuse funds without being detected until it’s too late. 

Fintech solutions: Prevention over cure 

To address these issues, fintech payment solutions are emerging as a critical defence. These innovations provide secure, transparent methods for managing transactions, enabling all parties to track payments in real-time and ensure funds are used appropriately.

One such platform is HomePay, designed for the renovation sector to combat chance for fraud and irresponsible delivery. HomePay’s escrow payment system ties payments to project milestones, ensuring funds are released to IDs or contractors only when pre-defined deliverables are checked and approved by homeowners. This milestone-based payment approach minimises the risk of scams, guarantees deliverables, and builds mutual trust between homeowners and IDs.

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In the fast-paced world of fintech, startups at different funding stages offer distinct working environments and unique challenges. This article explores the experience of working in an FX (foreign exchange) payment provider at two pivotal stages: Series A and Series D. We’ll take a closer look at the operational, cultural, and growth differences, highlighting case studies to illuminate how these factors shape employees’ day-to-day work and career paths.

Overview of FX payment providers in fintech

Foreign exchange payment providers in the fintech space have transformed how businesses and individuals handle cross-border transactions. These companies leverage technology to streamline currency exchanges, reduce fees, and speed up transactions, often focusing on transparency and accessibility. As these providers progress through funding stages, their focus shifts from establishing product-market fit to scaling operations and optimising the customer experience.

Series A FX payment providers: Building foundations

Series A funding is often when a company moves from an idea to a market-ready product. For an FX payment provider, this is a period of high energy, risk, and rapid development as the company attempts to carve out a niche within a highly competitive fintech landscape.

Customer-centric product development: The foundation of Series A

• Case study example: Airwallex
  When Airwallex, an FX and cross-border payment startup, secured its Series A funding, it focused on small and medium-sized enterprises (SMEs) needing reliable, low-cost solutions for international payments. Early employees were deeply involved in researching customer pain points, iterating on user feedback, and shaping a product that could serve this underserved market segment.
• The challenge
  At Series A, resources are limited, and the focus is on identifying a viable market. Employees need to be hands-on with customer interactions to understand specific pain points, testing features with real users, and frequently refining the product. Every role, from software engineering to customer support, plays a critical part in understanding and serving the customer base.
• The experience
  Working in a Series A FX provider involves tight collaboration across teams. Product development is fluid, and employees often juggle multiple roles. Engineers may double as customer support for technical issues, while marketers test and tweak campaigns on limited budgets to see what resonates with early adopters.

Also Read: The evolution of investing: How fintechs and neo-brokers are empowering retail investors

Navigating regulatory hurdles and compliance

• Case study example: Currencycloud
  For FX payment providers, regulatory compliance is a cornerstone. Currencycloud, during its early funding stages, had to build a compliance framework that aligned with various international regulatory standards while offering a user-friendly experience.
• The challenge
  At Series A, the company likely has minimal staff dedicated to compliance, even though regulatory hurdles are significant. Employees may work directly with legal advisors or external consultants to ensure the product complies with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, which are essential for gaining customer trust.
• The Experience
  Team members gain deep insights into regulatory requirements and have unique opportunities to directly influence how these regulations are integrated into the product. This can be highly valuable for those interested in fintech compliance and the legal aspects of product development.

Flexible, high-stakes work environment

• The challenge
  At Series A, uncertainty is high. Product-market fit is not guaranteed, and the focus is on finding the right balance between innovation and financial stability. The stakes are high, and employees may have to pivot quickly to adjust to new insights or shifts in market demand.
• The experience
  The flexibility of a Series A company can be thrilling for those who thrive on fast-paced, hands-on environments. Equity packages are often part of the compensation, which could be highly valuable if the company succeeds, though there is always a risk of volatility.

Direct access to leadership and high-level strategy

• The challenge
  In Series A startups, executive teams are accessible to most employees, offering the chance to engage directly with high-level decisions. This can be a double-edged sword; while it’s a great learning opportunity, the lack of structure can lead to confusion if the strategy changes rapidly.
• The experience
  Employees often get firsthand exposure to investor meetings, fundraising efforts, and executive decision-making processes. Those in product and operations roles can observe (and sometimes even help shape) strategic shifts, which is a rare and invaluable opportunity.

Also Read: Building bridges to close gaps in cross-border payment

Series D FX payment providers: Scaling with precision

By Series D, an FX payment provider has a more stable foundation and is in a high-growth phase. The company has achieved product-market fit and now focuses on market expansion, compliance, and scaling operations efficiently. This stage is more about execution and optimisation than experimentation.

Operational efficiency and process optimisation

• Case study example: TransferWise (now Wise)
  When TransferWise reached later funding rounds, it faced the challenge of expanding to new regions while maintaining efficiency. The company focused on automating backend processes to support a growing customer base and integrating AI for risk and fraud detection.
• The challenge
  In a Series D environment, employees focus on refining processes and enhancing efficiency rather than constant product pivots. Many Series D companies prioritise automating manual processes to improve operational scalability.
• The experience
  For employees, this translates into more specialised roles and the chance to contribute to process improvements. There is a focus on metrics, KPIs, and data-driven decisions, as companies like Wise use these tools to maintain and improve efficiency at scale.

Sophisticated compliance and regulatory focus

• Case study example: Revolut
  As Revolut expanded into new markets, the compliance team grew to meet the demands of diverse regulatory requirements across countries. Employees focused on building robust KYC and AML systems that could adapt to each region’s regulations.
• The challenge
  By Series D, an FX provider faces increased scrutiny and complex regulatory landscapes, especially as it moves into new geographies. Teams must handle ongoing audits, regulatory reporting, and build scalable compliance frameworks.
• The experience
  Compliance specialists in Series D companies have structured processes, and they focus on ongoing training to stay ahead of regulatory changes. This stage appeals to professionals looking for stability and in-depth expertise in regulatory compliance.

Emphasis on customer retention and market expansion

• Case study example: Payoneer
  After achieving product-market fit, Payoneer focused on expanding its presence in Asia and Latin America, requiring a dedicated customer experience team to tailor the product to new regions.
• The challenge
  Unlike Series A companies focused on attracting customers, Series D companies invest in retention and expansion strategies. Customer success and support roles become highly specialised, focusing on minimising churn and maximising satisfaction.
• The experience
  Employees in customer-facing roles leverage detailed analytics to understand user behaviour, address pain points, and increase loyalty. For those in data analytics or customer success, this stage offers opportunities to implement data-backed strategies that significantly impact growth.

Also Read: The future of startup fundraising in Singapore

Structured career paths and job stability

• The challenge
  A Series D FX company generally has a more hierarchical structure, meaning less direct access to founders but a clearer progression path within specific departments.
• The experience
  Employees benefit from job stability, clear roles, and well-defined responsibilities, making this stage ideal for professionals focused on advancing within a more structured environment. Compensation often includes competitive salaries with performance bonuses rather than early-stage equity.

• Compensation often includes competitive salaries with performance bonuses rather than early-stage equity.

Comparing Series A and Series D experiences: Key takeaways

Conclusion: Choosing your stage in an FX payment provider startup

Choosing between Series A and Series D in a fintech startup like an FX payment provider depends on your career goals, risk tolerance, and preferred work environment. Series A companies offer dynamic, fast-paced environments where your contributions directly impact product evolution, while Series D companies provide stability, structure, and defined growth paths within an optimised, data-driven framework.

Whether you’re drawn to the innovation and high-stakes world of a Series A or the stability and scalability of a Series D, fintech companies at both stages offer unique learning experiences in the rapidly evolving landscape of cross-border payments.

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Dynamic pricing has been a controversial practice as it raises ethical questions about fairness and transparency.

Instead of prices fluctuating due to supply and demand, e-commerce and hotel booking websites have been subjected to scrutiny; prices may vary based on a user’s browsing behaviour, location, and potentially their perceived willingness to pay, and different users are charged differently.

This practice involves analysing data such as:

• Browsing history: Websites may track which products or services you’ve looked at, allowing them to adjust prices based on perceived interest.
• Location data: Users from wealthier regions may see higher prices compared to those from less affluent areas.
• Device used: Some reports suggest that users on mobile devices may be charged different prices compared to those on desktop computers.
• Cookies and tracking: Sites may use cookies to identify returning visitors and adjust prices based on their previous interactions.

As regulators focus on ensuring that AI credit scoring does not result in racial profiling etc where individuals from historically disadvantaged groups are not unfairly penalised or charged more due to their race, which may not accurately reflect their creditworthiness, such efforts are mainly to develop guidelines, and most lenders are not explicitly forbidden from deciding on the vendor of their choice.

Such efforts, even when observed, can be negated as lenders, especially those in developing countries, increasingly rely on alternative credit data to gain an edge over their competition and be more competitive in their pricing to borrowers or where the maturity of the lending ecosystem or credit bureaus is unable to give them a comprehensive view of the borrower’s creditworthiness or repayment behaviour. When inaccurate data are used, the reverse can happen and borrowers can be charged more than if alternative data had not been used.

Also Read: Are the glory days of direct to consumer brands over?

In Singapore, members of the credit bureau are still predominantly the banks, while there are many more non-bank players that smaller or “weaker” SMEs also rely heavily on. This may prompt local lenders, because of the incomplete picture, to increase their weightage of assessment by using alternative credit data too.

Some fintech lenders have even raised millions, touting their proprietary credit scoring and alternative data collection while some lenders have asked if we can provide alternative credit data which is not our business model.

While Google has now explicitly forbidden Chrome extension developers from selling users’ data to data brokers or other information resellers for credit creditworthiness or lending qualification purposes, there are no checks to see if the developers are doing so.

Many websites can also do it since Southeast Asia’s equivalent of GDPR or PDPA is generally reactive (if there is even a robust one), meaning years of data can be collected and circulated already.

To make matters worse, alternative credit data providers have nowhere near the collection means of credit bureaus (which, to begin with, can be highly inaccurate, with 44 per cent of Americans finding errors in their credit reports). They often have to trade data with one another when one has a stronger subset of data than the others, in order to provide lenders with a more complete data set. It becomes a circular loop where any biases and inaccuracies can be amplified.

As a digital loan marketplace, where we are the first in Singapore that is digitalised end-to-end without a human, to eliminate the biases of loan brokers and their conflicts of interest, the use of alternative data by lenders is still something we or any intermediaries are unable to influence.

As we advocate for transparent borrowing and ethical practices, we invite regulators and industry stakeholders to not just look at AI scoring but also how to leverage alternative data responsibly to ensure a more equitable financial ecosystem for all.

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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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