Southeast Asia’s digital economy is projected to surpass $600 billion in gross merchandise value by 2030, according to figures cited by the World Economic Forum. This highlights how certain innovations and policies can drive the region toward tremendous growth beyond the trillion-dollar mark.

Innovations like Web3, immersive technologies, and artificial intelligence are among the drivers of this change, and these will transform how brands engage consumers across the region. Such technologies now see use cases involving personalised, immersive, and user-driven experiences.

From digital collectibles to decentralised decision-making, brands are no longer limited to traditional means of ensuring customer loyalty.

Redefining ownership with digital collectibles

Non-fungible tokens (NFTs) and digital collectibles are reshaping how brands offer personalised experiences to their customers. In the context of Web3, these digital assets provide a new form of ownership that extends beyond physical goods, creating exclusive and immersive experiences for consumers both in the digital and potentially in the physical world.

A brand could issue NFTs as part of a new product launch, allowing consumers access to exclusive content, early product releases, or VIP events. These digital assets can be traded or collected, creating a new layer of engagement where consumers are not just passive buyers but active participants in the brand’s digital ecosystem.

Brands across Southeast Asia, including global giants like Nike, have already started to integrate NFTs into their customer engagement strategies. Its .SWOOSH platform allows members to collect and trade digital assets such as virtual shoes or jerseys. It goes further in terms of engagement, enabling NFTs’ owners to co-create these virtual goods and even earn royalties from these products.

Immersive engagement opportunities for brands

Augmented Reality (AR) and Virtual Reality (VR) also present new opportunities for brands to create immersive, interactive experiences that engage tech-savvy consumers.

For example, beauty brand L’Oréal in Singapore has successfully integrated AR with their virtual makeup tool, allowing customers to see how different products look before purchasing. This “try-before-you-buy” approach increases customer confidence in their purchase decisions and enhances the overall shopping experience by making it more engaging and interactive.

Also Read: How to scale voluntary carbon markets with DeFi and Web3

Virtual influencers are also gaining popularity in Southeast Asia, offering brands a unique way to connect with audiences. Anime live streamers, also known as vtubers, are next-generation influencers portraying as characters that have para-social interactions with their viewers and allow brands to create new targeted and interactive marketing campaigns. Some of these examples include Gawr Gura with more than 4.51 million YouTube subscribers, Hoshou Marine with over 3.43 million YouTube subscribers, and Ironmouse with 2.1 million Twitch followers.

Memecoins moving beyond novelty

Memecoins, once seen as humorous and highly speculative digital assets, have increasingly become one of the most flexible and profitable areas in the crypto industry. Despite their light-hearted beginnings, memecoins have grown in potential in terms of trading and other use cases as well.

In 2024, top-performing memecoins saw average returns exceeding 1,300%, driving market interest beyond their initial novelty. These digital currencies reached a US$60 billion market in Q1, with trading activity on decentralised exchanges (DEXs) reaching record highs.

While memecoins have been dismissed for being mostly speculative, the appeal lies in their community-driven, viral nature, such as the recent Moo Deng memecoin based on the same baby hippo that went viral on social media. It reached an all-time high market capitalisation of over US$300 million shortly after its launch on the Solana blockchain.

Also Read: Global Web3 companies on why Asia Pacific is the future of the industry

Beyond speculation, memecoins are now beginning to find more utility within the Bitcoin ecosystem. Thanks to advancements like the Taproot upgrade and the Runes protocol, Bitcoin now has the infrastructure to support more use cases, including minting and trading of memecoins.

These innovations allow Bitcoin to compete with Ethereum’s smart contract functionality while benefiting from its renowned network security. This means that memecoins can be integrated into areas such as Web3 gaming, where they serve as community-driven in-game currencies, a mechanism for player rewards, and also a means of decentralised governance.

One platform leveraging this potential is DeFi.Gold, a decentralised exchange and launchpad built on the Bitcoin blockchain. It pioneers the use of Runes-based tokens, such as its Schmeckle and Flurbo memecoins, utilised as in-game currency and a governance tool for a new Web3 gaming project.

As a DEX and launchpad, the platform provides the infrastructure for trading decentralised assets on the Bitcoin ecosystem, including memecoins, fungible tokens, and other digital assets. Earlier this month, DeFi.Gold secured US$2.2 million in seed funding from investors including Brian Rose, Walid Benothman, Mario Nawfal, and Cypher Capital, among others.

Additionally, Pump.fun, a memecoin-focused platform that generated $100 million in fees, highlights the growing demand for new meme token launches where anyone can participate. This success underscores the potential for these platforms to capture similar momentum in the expanding Bitcoin ecosystem.

Customer engagement is evolving faster than ever

Technology is redefining how brands engage with consumers, allowing for more personalised, immersive, and interactive experiences that go beyond traditional brand-customer interactions. From NFTs that create digital ownership to memecoins that are shaping new financial and governance ecosystems, brands now have powerful tools to engage tech-savvy audiences in more meaningful ways.

As Southeast Asia’s digital economy continues to grow, brands that embrace these technologies can create a dynamic and immersive consumer experience that resonates with a generation increasingly driven by digital connections and personalisation.

—

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.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Freepik

The post Redefining brand engagement: Innovations driving Southeast Asia’s digital economy appeared first on e27.

The post Julian Cua of BCG at Echelon Philippines 2024: Understanding Filipinos’ daily challenges to drive meaningful innovation appeared first on e27.

The number of fintech companies employing artificial intelligence (AI) in Asia is on the rise and expected to reach 7,271 in 2025, accounting for 7 per cent of the local fintech industry, says a UnaFinancial study.

In comparison, the number of fintech firms employing AI was 1289 in 2015 (3.6 per cent of all fintech companies) and 6038 in 2023 (6.3 per cent).

“Compared to the COVID-19 pandemic peak, there has been some slowdown in the growth of new AI fintech companies in Asia. However, the market continues to expand, both with the introduction of new companies and the active adoption of AI by already existing players,” according to the analysts at UnaFinancial.

Also Read: South Asia, SEA rank high in potential for fintech lending in Asia: Study shows

In terms of funding, after hitting a low in 2023, Asian AI fintech companies are entering a stage of new interest from fintech investors. The share of funding received by these companies is projected to grow from US$60.4 billion in 2023 to US$62 billion in 2024 and US$65.5 billion in 2025.

Thus, the investment volumes in the sector are expected to increase 2.2x next year. If the global socio-economic situation stabilises, this could spark investor attention to the industry.

Among the Asian countries, India, China, Singapore, and Israel are emerging as the powerhouses of AI fintech in the region. India dominates the list of active Asian AI fintech companies (41.7 per cent), followed by China (12.2 per cent), Singapore (9.8 per cent), and Israel (9.6 per cent).

“India’s leadership is unsurprising given the country’s size, rapid fintech growth, and deep AI integration into financial practices, supported by the government. In China, the growth is driven by the large economy, while Singapore boasts the proactivity of local fintech businesses, which position the country as a regional fintech hub and trendsetter in Southeast Asia,” UnaFinancial’s analysts explained. “Meanwhile, Israel stands out for its high standard of living, which supports the balanced growth of the entire fintech ecosystem and a favourable environment for startups.”

—

Image Credit: 123RF.

The post Asia’s AI fintech sector to grow 2.2x in 2025 led by India, China, Singapore appeared first on e27.

The digital health industry has rapidly emerged as a vital component of the global healthcare landscape, driven by the global ageing demographic and demand for more efficient, accessible, and cost-effective healthtech solutions. 

There is ample opportunity for innovation, from operational functions to utilising artificial intelligence (AI) to aid in medical research.

In Southeast Asia, the digital health industry has remained a key focus for the government and private sectors as the pandemic exposed many vulnerabilities. Practitioners are keen to adopt solutions and services that will automate most administrative functions, freeing resources to focus on actual patient care. However, they continue to ensure they are well-prepared to address the next outbreak or disaster. 

Taking Care of our Elderly, the Ageing Population Crisis

Over the past two decades, ASEAN’s demographic structure has shifted towards an ageing population. In particular, elderly individuals increased from 5.3 per cent in 2000 to 7.5 per cent in 2022. This is of great concern for most governments as they would need to consider their healthcare infrastructure and manpower to address the increasing demand. 

The growing emphasis on digital health responds to the ageing population across ASEAN. Experts project that Malaysia will become a “super-aged society” by 2056. By that time, over 20 per cent of the population will be 65-plus. Rising chronic diseases also add to the issue. For example, a study by the World Health Organization noted an increase in cancer incidence among young Malaysians aged between 35 and 64 years. 

Chronic diseases strain the healthcare system and highlight the need for better digital health solutions to track, study, and research these trends.

Malaysia is advancing its healthtech sector as part of a broader strategy to solidify its position as the digital hub of ASEAN. The Malaysia Digital Economy Corporation (MDEC) plays a pivotal role in this mission by promoting digital adoption across sectors, including healthcare.

Through the Malaysia Digital (MD) national strategic initiative, the MDEC is transforming the country’s digital landscape. It does this by leveraging technology and innovation to drive sustainable economic growth. By creating a supportive environment for healthtech innovation, the agency is integrating digital health into Malaysia’s healthcare system and digital economy.

Also read: MDEC seeks to encourage SMEs’ digitalisation with US$1.5M grant

A Thriving Ecosystem for Digital Health Innovation

The Malaysian government recognises the transformative potential of the healthcare sector. Through agencies like the MDEC, the country has created a favourable environment for digital health innovation. 

Digital health is not just an emerging field. In fact, it is becoming integral to the country’s healthcare system and digital economy. Key players in Malaysia’s digital health landscape include DoctorOnCall, HealthMetrics, QMed Asia and ORA. They each play a significant role in the industry’s growth.

DoctorOnCall offers services ranging from online doctor consultations to a comprehensive digital pharmacy. The platform was vital during the COVID-19 pandemic, providing essential healthcare services to those unable to access traditional facilities. CEO Maran Virumandi states that DoctorOnCall aims to make healthcare as accessible as ordering food online and ensuring quality healthcare is made available to all Malaysians. 

DoctorOnCall’s integration of telehealth and digital pharmacy services has set a new industry standard. Consequently, this expands the possibilities of digital healthcare delivery.

More Examples of Inroads in Digital Health

HealthMetrics has significantly impacted the management of employee healthcare benefits through its cloud-based platform. This platform streamlines processes from employee enrolment to claims management. In particular, it offers real-time data to help companies make informed decisions.

CEO Alvin Yuan said that HealthMetrics facilitates seamless access to healthcare services by connecting corporate and insurance members to a vast network of healthcare providers across Southeast Asia. This approach enhances employee health and productivity while reducing healthcare costs for companies. This positions HealthMetrics as a crucial player in the industry.

QMed Asia is revolutionising healthcare delivery with advanced digital solutions tailored for healthcare providers. Its offerings include the Qmed Kiosk, which has significantly reduced patient registration times. Further, AI-driven tools like Qmed Copilot assist doctors in making more informed decisions. 

Dr Kev Lim, CEO of QMed Asia, states, “We are well-positioned to lead the way, expanding our AI capabilities to create smarter, more intuitive systems that connect seamlessly with existing healthcare infrastructures and drive better outcomes for both patients and providers.”

ORA is a tele-medicine provider and wellness platform that is re-shaping the digital healthcare landscape in Southeast Asia. It does so by integrating AI-driven solutions into telemedicine and wellness services. One of its most significant advancements is the use of artificial intelligence to empower doctors with personalised care insights.

Digital Health: Turning challenges into opportunities

Despite this progress, digital health adoption is not easy. The industry is fraught with regulations, compliance requirements, and infrastructure barriers. The digital divide remains a crucial problem since not all populations have equal access to the technology needed for digital health solutions. 

Additionally, cybersecurity concerns are becoming increasingly relevant as more sensitive health data is stored and managed digitally.

However, these challenges also present opportunities. With Malaysia’s stated push into AI, more political willpower must be mustered to realise a national Electronic Medical Records (EMR) system. This iss the pre-requisite for better healthcare outcomes in collaboration with Digital Health companies. According to this article, Indonesia may already be ahead in this respect. 

Malaysia does not need to reinvent the wheel, as it can glean best practices from initiatives such as Taiwan’s NHIA. Regional collaboration within ASEAN could help standardise regulations and create a more unified digital health ecosystem. Public-private partnerships will drive innovation and address the digital divide. This will ensure that digital health solutions reach those who need them most. The growing interest in AI-driven diagnostics, remote patient monitoring, and other emerging sectors offers vast potential for continued growth and development.

Also read: Malaysian government-backed MDEC launches digital hub and entrepreneur initiatives; aims to help startups scale globally

AI and Personalization in Digital Health

HealthMetrics, for example, has utilised AI and real-time data analytics to enhance fraud management and cost containment. As a result, it has established itself as a leader in the digital health space. Similarly, QMed Asia’s focus on integrating AI into healthcare practices via Qmed NORA is paving the way for more personalised and efficient patient care and offering significant opportunities for growth.

Meanwhile, DoctorOnCall won the United Nations AI for Good award. It has integrated AI into various solutions, including medical chatbots and mobile clinics. Further, ORA has gathered millions of anonymized data points. These are analysed to create predictive models tailored to the local demographic. Then, these models are tested against consultation data, treatment types, and clinical outcomes. This enables ORA to recommend therapies that are best suited to individual patient needs.

By focusing on personalisation, ORA aims to optimise patient outcomes and provide a standard of care that surpasses traditional primary healthcare models. As the platform expands, its AI applications will cover a broader range of conditions, continually enriching its data ecosystem. This approach not only enhances preventive care but also facilitates participation in clinical studies. Thus, ORA is positioned at the forefront of healthcare innovation in the region.

Malaysia as a Crucial Player in Digital Health Transformation

Digital health is set to transform healthcare systems across ASEAN, with Malaysia as its crucial player. The country’s proactive approach is driving the sector’s growth and integration into the broader digital economy. It achieves this by providing intervention in critical areas such as policy, business expansion, investments, amplification, talent mentoring. This is supported by government initiatives such as MDEC’s Founders Centre of Excellence (FOX) and Digital Health programme together with leading Digital Health companies. As digital health evolves, its impact on Malaysia and the broader ASEAN region will likely deepen. Ideally, his will lead to improved healthcare outcomes and a more robust digital economy. 

The future of digital health in Malaysia appears promising. It has the potential to enhance healthcare access and quality while positioning the country as a leader in the global digital health landscape.

MDEC offers various programmes for Malaysia Digital status companies. Apply for Malaysia Digital status here.

—

This article is sponsored by Malaysia Digital Economy Corporation (MDEC)

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us here to get started.

Featured Image Credit: MDEC

The post Digital health: Malaysia leads in powering ASEAN’s transformation appeared first on e27.

Latvian health tech startup Longenesis was named the winner of The Supernova Challenge 2.0, an early-stage startup pitch competition at the Expand North Star event in Dubai on October 16.

Taking home the top prize of US$100,000, Longenesis aims to transform healthcare by accelerating the development of innovative treatments and enhancing patient engagement through advanced data utilisation.

With collaborations spanning leading healthcare institutions, global life sciences companies, and national governments, Longenesis said it has positively impacted over 850,000 patients across the European and Middle East regions.

Emil Syundyukov, Co-Founder and CEO of Longenesis, said, “It is all about unlocking the hidden value of data. By engaging broader populations and bringing them into the data conversation, we can help therapies reach those in need faster. This win is just the start for us. We are here to raise geographical borders for healthcare research and scale up, especially in the Gulf region, which we see as a focal point for healthcare innovations.”

Also Read: What are some networking benefits that are essential for startups?

Singapore-based ProfilePrint secured second place and a prize of US$60,000. The company showcased its AI-driven platform, which uses patented digital food identity-as-a-service (IDaaS) technology.

By synthesising molecular data into digital fingerprints, ProfilePrint empowers agribusinesses to make data-driven decisions, improving product quality and efficiency.

Third place went to NEXTPAYMENTS INC. from South Korea, earning US$35,000. Led by CEO Jee Kwangchol, the startup is revolutionising retail through its advanced AI kiosks and smart store technologies, providing personalised experiences for consumers.

The north star of innovation

Organised by the Dubai World Trade Centre and hosted by the Dubai Chamber of Digital Economy, Expand North Star celebrated its biggest edition this year, according to a press statement by the organisers. It was held in conjunction with the GITEX GLOBAL 2024 event.

The organisers said that this year’s edition saw a “record-breaking” participation, with a total prize pool of US$200,000. A 40 per cent increase in global participation for 2024 saw GITEX Global and Expand North Star welcome over 1,800 startups and 1,200 investors.

Also Read: Critical considerations: Address these 5 questions before scaling your tech startups

The Supernova Challenge 2.0 witnessed over 650 startups competing for the prestigious Overall Supernova Champion title, following six months of semifinals from Europe, Asia, Africa, the Middle East, and the Americas.

Startups from 69 countries participated, with the UAE, India, and South Korea emerging as top contributors.

In terms of development stages, the event saw startups from various stages with 39 per cent being in seed or early stages, 24 per cent at Series A, 18 per cent in Pre-Seed, and 11 per cent bootstrapped.

Popular sectors such as AI, SaaS, and healthcare were the most represented in the event, which the organisers saw as a reflection of the latest industry trends and the ongoing shift towards an AI-driven economy.

—

Image Credit: Expand North Star

The post Longenesis wins Expand North Star’s pitch competition with advanced data utilisation platform appeared first on e27.

One of the most immediate and noticeable impacts of your technology on supply chain processes is the dramatic improvement in organisational efficiency. Traditional supply chains often involved a great deal of manual work, from data entry to inventory
management, which was not only time-consuming but also prone to human error. Today, automation, robotics, and artificial intelligence (AI) are streamlining these operations.

For example, robotic process automation (RPA) can handle routine tasks like order processing and invoicing, cutting down the time from hours to mere minutes. Company, businesses that have adopted automation in their supply chains have seen a 20 per cent reduction in operational costs and a 30 per cent increase in overall productivity.

AI and machine learning (ML) are also crucial for demand forecasting and inventory management. By analysing historical sales data and current market trends, AI-driven systems can predict future demand accurately, helping maintain optimal inventory levels
and avoid stock outs or overstocking. A study by PwC in 2022 found that AI-driven demand forecasting that AI-driven demand forecasting can reduce forecasting errors by up to 50 per cent, leading to a 20-30 per cent decrease in inventory costs.

The Internet of Things (IoT) is also enhancing your efficiency by providing real-time data on the location and condition of goods as they move through the supply chain. IoT devices, like sensors and RFID tags, allow you to monitor the temperature, humidity, and
even the vibration of sensitive products, ensuring they reach their destination in perfect condition. Gartner reported in 2023 that 60 per cent of supply chain leaders have implemented IoT solutions, leading to a 15 per cent reduction in waste and spoilage.

Improved visibility: Enhancing transparency and accountability

Visibility has always been a challenge in supply chain management. It’s tough to track products and shipments across multiple stages and geographic locations. But technology is now offering unprecedented transparency, making it easier for you to
monitor your supply chain in real time and address issues before they escalate. Blockchain technology is making a significant impact here.

Also Read: How companies are using AI to prevent supply chain disruptions?

By creating a decentralised and immutable ledger, blockchain allows everyone in your supply chain, from suppliers to customers, to access the same information. This level of transparency reduces the risk of fraud and enhances accountability.

For example, in the food industry, blockchain is being used to track the journey of products from farm to table, ensuring they meet safety and quality standards. IBM’s 2022 study on blockchain in supply chains found that companies using this technology saw a 70 per cent improvement in traceability and a 50 per cent reduction in counterfeiting.

AI-powered analytics platforms are also giving you deeper insights into your supply chain. By analysing data from various sources, these platforms can identify bottlenecks, predict potential disruptions, and recommend solutions to optimise performance. A Deloitte survey in 2023 revealed that 55 per cent of companies using AI in their supply chains reported a 20 per cent improvement in decision making speed and accuracy.

Increased resilience: Adapting to disruptions

The COVID-19 pandemic highlighted vulnerabilities in global supply chains, with many companies struggling to adapt to sudden disruptions. In response, there’s been a growing focus on building more resilient supply chains, and technology is crucial in this
effort.

One way technology enhances resilience is through digital twins. A digital twin is a virtual replica of your physical supply chain, allowing you to simulate different scenarios and assess the impact of potential disruptions. By testing various “what-if” scenarios, you can identify weaknesses in your supply chain and develop contingency plans. A 2023 Capgemini report found that companies using digital twins experienced a 30 per cent reduction in downtime and a 20 per cent improvement in their ability to respond to disruptions.

Also Read: Leveraging AI and ML in supply chain management for smarter decision making

Predictive analytics can also help you anticipate and mitigate risks in your supply chain. By analysing historical data and external factors like weather patterns, political instability, and market trends, predictive analytics can forecast potential disruptions and suggest proactive measures.

For instance, you might use predictive analytics to reroute shipments in anticipation of a hurricane or switch suppliers in response to geopolitical tensions. Gartner’s 2023 study showed that companies using predictive analytics reduced the impact of disruptions by 25 per cent and improved their supply chain resilience by 40 per cent.

Moreover, cloud-based collaboration tools enable you to work more closely with your suppliers and logistics partners to manage risks. These tools allow for real-time communication and data sharing, making it easier to coordinate responses to
disruptions. According to a 2023 Accenture report, 70 per cent of companies using cloud-based collaboration tools reported a 15 per cent improvement in their ability to manage supply chain risks.

Technology is profoundly impacting your supply chain processes, transforming how you operate and compete in today’s global marketplace. By enhancing efficiency, improving visibility, and increasing resilience, technology is helping you build smarter, more agile, and more sustainable supply chains.

As digital tools continue to evolve, their role in supply chain management will only grow, offering new opportunities for innovation and growth. By embracing these technologies, you’ll be better positioned to navigate future challenges and capitalise on new opportunities.

—

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.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Canva Pro

The post The digital revolution in supply chain management: Efficiency, visibility, and resilience appeared first on e27.

Tony Hsieh, founder of Zappos with a net worth of over US$800 million, passed away in 2020 without a will despite selling his stake to Amazon. His death led to family squabbles and legal complications, highlighting the importance of succession planning to avoid such disputes, even after exiting a business.

The death of a founder can shake a startup to its core, disrupting leadership and the startup’s ability to continue operating as a business. Founders are often at the heart of a startup’s strategy and operations, so their sudden absence raises crucial questions about the startup’s future. 

This post focuses on succession clauses for a founder’s shares, highlighting their role in ensuring a smooth transition. We won’t cover the broader topics of estate planning or business continuity plans (BCP), which may be addressed in the future, though they are also critical parts of business planning.

What happens to the deceased founder’s shares, and who will inherit them?

If a founder dies, his or her shares are first transmitted to their personal representative (also known as an administrator if the deceased dies without a will), who handles the shares as part of the deceased’s estate. The personal representative may choose either to transfer the shares, usually to the heir (e.g., the deceased’s spouse or children) or the person listed in the will, or to apply to be registered by the startup as the new shareholder and, if applicable, a new director (as provided in the startup’s constitution).

If vesting provisions had been in place, the usual practice is for the vesting to cease upon the founder’s death, and any unvested shares would typically have reverted to the startup if the deceased co-founder had not fully vested in their equity.

What succession options and clauses should founders consider?

Broadly speaking, there are eight options that can be incorporated into a written agreement (eg, a shareholders agreement or founders agreement) for restructuring ownership after the loss of a founder, especially with a substantial equity stake in the startup.

Pre-emption rights

This clause gives the surviving shareholders the right of first refusal to acquire the deceased’s shares before they can be transferred to an external party i.e. the heir, ensuring that control remains within the surviving shareholders without obligating them to buy.

Also Read: 7 common legal pitfalls startup founders should avoid

Consider allowing the deceased’s heir to become a new co-founder

Allowing the heir of a deceased founder to become new active members of the management team may be viable if he or she has the necessary skills and qualifications that may align with the startup’s business. However, in many cases, the heir may remain as silent shareholders without any control.

Buyout of deceased founder’s heir shares

In this option, the remaining shareholders may consider buying out the deceased founder’s shares from their heir (usually funded by a life insurance obtained by the present founders).

Permitted transfers (to predetermined individuals)

This allows the transfer of shares to specific individuals (eg, family members or trusts), without triggering pre-emption rights, effectively bypassing the need for shareholders approval while maintaining control within a set of predetermined individuals.

Cross-option agreement (i.e. forced buyout)

A cross-option agreement forces a buy/sell of shares between the surviving shareholders and the deceased’s heir, ensuring that the shares stay within the startup by obligating either side to complete the transaction. A life assurance policy may be already in place to cover the shares value which may be used toward funding the share acquisition by the surviving shareholders.

Compulsory share buy-back

A startup may repurchase the deceased founder’s shares, ensuring that ownership remains within the business rather than transferring to outside parties, preventing unqualified heirs from influencing operations. 

This option may be workable if the startup  has sufficient liquidity to fund the buy- back or life insurance coverage in place, where the proceeds from the policy are usually to pay for the shares. Once the shares are repurchased by the startup, the shares are cancelled. 

Sell to a third party

This option involves selling the entire business to an external buyer, often using existing clauses inside a shareholders agreement like the drag-along right (i.e. allowing majority shareholders to compel minority shareholders to join in the sale). 

This may be necessary if neither the surviving shareholders nor the heir wish to continue the startup. However, finding a suitable buyer can be challenging due to market uncertainties, and securing a favourable price may be difficult given the circumstances (on the sale).

Close the startup and liquidate its assets

If the business becomes non-viable after the founder’s death, the shareholders may agree to liquidate its assets, distributing the remaining value to shareholders and heir as a final step, although this often leads to a loss of value. 

Also Read: How to craft your startup’s financial projections

This option may only be viable if the startup is solvent and able to meet the outstanding debts and liquidators fees and so on. Also, if you’re venture backed, you may likely need to get the VC’s prior approval too as the norm is to include this as a reserved matter.

What’s next: Incorporating succession clauses and legal advice

It is essential to consult your usual startup lawyer to ensure the proper incorporation of succession clauses and alignment with your startup’s needs. 

Depending on the agreement between the founders (and the VC, if venture-backed), these clauses may be incorporated into a shareholders agreement or a buy-sell agreement, helping minimise chaos in the face of the unexpected. In our past experience advising founders, we often recommend incorporating these clauses into the shareholders agreement, ensuring all shareholders are bound by the terms to enhance succession planning. 

Additionally, a new constitution (i.e.  a statutory document that specifies rules on how a startup is organised and the board of directors and shareholders will be bound by its terms) should be adopted, based on the form of the shareholders agreement to ensure consistency in governance and succession planning.

Valuation of the deceased founder’s shares

Disputes over the value of a deceased founder’s shares may delay business continuity and transfer processes if there is no agreement in place on how the valuation should be conducted and agreed upon by the shareholders. Considerations for share valuation include:

• Fair value: An independent valuer may be appointed by the startup to assess the fair market value of the shares. The founders may also agree in advance on a formula or metrics, such as using revenue multiples or EBITDA.
• Minority stake discounts: If the deceased founder held a minority stake, the valuation may also consider if a discount may be applicable based on the most recent valuation, ensuring that the process remains transparent and to avoid disputes.

Final thoughts

As a startup lawyer, we have witnessed how the death of a founder can cause significant challenges for a startup, particularly in its business continuity.

By incorporating these succession clauses inside a shareholders agreement, startups can mitigate the risks of business disruption and may perhaps increase their business continuity. However, without anything in writing, a startup may likely face conflicts, delays, and uncertainty. 

—

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.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Canva Pro

The post Preparing for the unexpected: Succession planning and legal considerations for startup founders appeared first on e27.

In a statement, Mitsubishi revealed that it had agreed with Ayala and AC Ventures Holding Corp regarding its investment in AC Ventures, pending the finalisation of transaction documents and fulfilment of standard closing conditions.

Also Read: Ayala-backed ACTIVE Fund leads edamama’s Series A+ financing round

AC Ventures currently holds a 13 per cent stake in Mynt, while Ayala is one of the Philippines’s largest conglomerates.

Under the agreement, Mitsubishi will acquire a 50 per cent stake in AC Ventures Holdings and pursue future investment opportunities. Additionally, the two companies are set to sign a memorandum of understanding (MoU) for a broader partnership in the country, focusing on new business developments aimed at boosting the country’s economic growth.

Mitsubishi outlined its goal of creating a “Smart-Life” ecosystem, which involves launching multiple business initiatives to address social issues and meet consumer needs. The ecosystem aims to promote financial inclusion, with digital financial services being a key component. Mitsubishi views these services as critical infrastructure to connect various consumer offerings and meet growing demand in Southeast Asia.

The Philippines, expected to see the highest population and GDP growth in the region, presents a unique opportunity for digital financial services. Although a significant portion of the population remains unbanked, the widespread use of mobile phones and internet access makes it an attractive market for growth. Currently, approximately 80 per cent of the country’s population has used GCash, Mynt’s flagship product.

GCash, which has the largest mobile wallet customer base in the Philippines, plays a vital role in facilitating financial inclusion by offering payments, transfers, and other financial services. Mynt has expanded its offerings to include loan services, savings, insurance, and investment products. It also boasts the largest network of online and offline merchants, with over six million partners.

Mitsubishi and Ayala have a longstanding relationship, dating back to their first partnership in 1974. To further strengthen their ties, the companies will support Mynt’s continued growth and explore joint initiatives in retail, healthcare, mobility, renewable energy, and carbon management.

Mitsubishi’s latest investment follows a similar move by the Mitsubishi UFJ Financial Group (MUFG) in August. Together, Mitsubishi, Ayala, and MUFG aim to support Mynt’s future expansion.

Also Read: Mitsubishi arm injects US$200M investment into digital finance platform Akulaku

Established in 1950, Mitsubishi operates diversified businesses across industries including energy, materials, urban development, mobility, and smart-life creation. Ayala, founded in 1834, is a major player in real estate, banking, telecommunications, and renewable energy, with growing investments in healthcare, fintech, and technology ventures.

Mynt, valued at US$5 billion, operates two key fintech companies: GXI, which runs GCash, and Fuse Lending, a tech-driven lending platform that provides microloans and business loans to Filipinos.

The post Mitsubishi acquires stake in Mynt, targets Philippines’s booming digital finance market appeared first on e27.

According to Scott Livermore of Oxford Economics, the United Arab Emirates (UAE) economy is expected to expand by 4.8 per cent in 2025–but its non-oil economy is going to grow even more than that.

At the GITEX GLOBAL 2024 event at the Dubai World Trade Center on October 14, Abdullah Bin Touq Al Marri, Cabinet Member and Minister of Economy, Ministry of Economy (UAE), revealed more details about the country’s plan to seize opportunities in the digital economy sector, particularly in Artificial Intelligence (AI).

“We have been doing a lot of work in the last two years; a lot of regulations, a lot of goals. I think there are so many things that depend on diversification to the economy,” he told moderator Mike Butcher, Editor-At-Large, TechCrunch, at a session during the event.

“We have reached 74 per cent of our target … and it is a record.”

The minister said this diversification happens across different industries, including aviation and finance, but he was “most excited” about the new economies.

Also Read: GlobalTix nets US$5M to enhance AI-powered ticketing for tours, attractions

When asked whether the UAE will benefit from its sandbox approach to tech innovation compared to other countries that are more restrictive, Bin Touq Al Marri said that the economy is created when technology comes together.

“That is the kind of formula that the UAE is providing for the world regulation,” the minister said.

Steps towards progress

In promoting tech innovation, the UAE does not hesitate to work with the private sector, particularly with companies such as Microsoft and G42.

Bin Touq Al Marri stressed that the country had invested heavily in AI even before the technology became increasingly popular three to four years ago.

Earlier this year, the UAE launched its own AI model, Falcon. The country even appointed its own state minister for AI, Omar Al Olama, in 2017.

“AI is not new for the UAE. We understood the technology very early on, invested in it, changed the academy, and introduced a minister to look at it. Today, we can say that we are heavily advanced in AI,” Bin Touq Al Marri said.

The country is also pushing for policies that focus on the ethical, social, and environmental aspects of technological development. “Yes, we want to use AI, but we want to use it with ethics, for the social and environmental aspects as well, to shape the kind of dialogue that happens globally on AI initiatives.”

Also Read: Echelon X: Exploring the realities of market access in the Middle East

“UAE is the boiling point between the US and China, and the AI race is enhancing the technology forward. We are with the advancements of technology that you can see through the agreement between UAE, G42, and Microsoft. We are going to see more of that,” the minister said.

He stressed that this positioning is the reason tech talents are flocking to the UAE. Regarding human resources, the UAE has also introduced AI in the curriculum and supported various tech boot camps.

“We understand how important this aspect of reskilling the talent in the government and private sector,” the minister said.

The post Sandboxes and diversification: Why the UAE believes in light-touch regulation for AI development appeared first on e27.

The Siam Commercial Bank (SCB), in partnership with SCB 10X, is pleased to announce its collaboration with Lightnet to enhance cross-border payments and remittances by using stablecoin for settlement on the public blockchain network.

This groundbreaking project marks Thailand’s first use case of stablecoin for cross-border payments and remittances. As a result, this sets a new standard for the financial services industry. With the integration of Fireblocks’ custody technology, the assets are secured at the back end. This consequently ensures top-tier protection and trust between the parties.

Numerous Benefits in Cross-Border Payments and Remittances with Stablecoin

This project has successfully graduated from the Bank of Thailand’s (BOT) regulatory sandbox in October 2024. The project is now fully commercialised. Thus, it offers a transformative solution for cross-border transactions and marks a significant milestone in Thailand’s financial innovation.

This innovative solution provides numerous benefits. In particular, this includes better capital efficiency by enhancing management of funds. It achieves this through the elimination of pre-funding between partners and reduced operational costs. Moreover, users can use local currencies for making transactions and experience improved reliability and availability. The service is accessible 24/7. Furthermore, the project leverages blockchain technology to create a truly global network for remittances. 

Also Read: Thai bank SCB’s venture arm launches new US$50M VC fund for blockchain, DeFi, digital assets

Collaboration is Latest in SCB’s Pioneering FinTech solutions

“The collaboration between SCB and Lightnet underscores a commitment to pioneering financial innovation and improving the remittance experience for users. By integrating blockchain technology, the project promises a more efficient, reliable, and accessible solution for cross-border payments and remittances,” says Thanawatn Kittisuwan, First Executive Vice President & Head of Digital Juristic & Payment of SCB.

Kittisuwan continues, “By leveraging blockchain technology and stablecoins, we are making cross-border payments and remittances more efficient, reliable, and accessible for everyone. SCB has a long-standing tradition of embracing innovative technologies to enhance our financial services.”

This latest collaboration with Lightnet and Fireblocks builds upon SCB’s history of pioneering fintech solutions. SCB’s consistent commitment to leveraging cutting-edge technology demonstrates their dedication to providing efficient, accessible financial services to its customers.

SCB 10X Underscores Importance of Cross-Border Payments and Remittances

Mukaya (Tai) Panich, CIO & CEO of SCB 10X adds, “At SCB 10X, our mission is to drive the adoption of financial technology innovation at SCB, SCBX Group and in the broader financial services industry. By harnessing blockchain technology, we are significantly enhancing the speed, efficiency, and accessibility of cross-border payments and remittances.”

According to Panich, this project showcases the real-world impact of fintech innovation. Consequently, this brings substantial improvements to both the bank’s operations and its customers’ experiences. SCB 10X is proud to be playing a pivotal role in moving this initiative forward. It is coordinating efforts across teams to bring this transformative solution to life. Evidently, SCB 10X is thrilled about its potential to improve the efficiency of cross-border payments and remittances.

Also Read: Co-founders inject US$48M into Lightnet to grow its blockchain-powered global remittance solutions

Lightnet Commits to Improving Inclusion and Access

For his part, Tridbodi Arunanondchai, Vice Chairman and Group CEO of Lightnet, emphasises, “Lightnet is dedicated to developing the next generation universal financial network in order to solve various financial pain points for the customers. Our commitment is to provide individuals and businesses with financial access, financial mobility and efficiency. We believe that the launch of this revolutionary cross-border payments and remittance solution is the first step towards this goal.”

According to Arunanondchai, the solution will provide significant improvements to customers’ experience in cross-border payments and remittances. Thus, it will lower transaction time and cost and be accessible on the 24/7 basis. The project also promotes financial inclusion as there is a lower capital requirement per transaction. Beyond this, the project also provides unique value propositions to retail, corporate, and institutional clients, and will help strengthen Thailand’s position as the ASEAN financial hub. 

Fireblocks Secure Custody Technology Underpins Cross-Border Payments and Remittances Project

Michael Shaulov, CEO and Co-founder of Fireblocks, agrees, “We’re excited to be part of this groundbreaking cross-border payments initiative with SCB and Lightnet. This project demonstrates the transformative power of blockchain technology in revolutionising traditional banking services. Further, it showcases how financial institutions can leverage cutting-edge technology and a robust digital asset infrastructure to innovate and improve their services.

Shaulov adds that by providing their secure custody technology, Fireblocks is helping to ensure that cross-border payments are not only faster and more efficient, but also meet the highest standards of security. They believe this project sets a new benchmark for the integration of stablecoins into mainstream banking services and look forward to seeing its impact on the way money moves across borders.

Building on this success, SCB and Lightnet are planning to extend this cross-border payments use case to corporate customers. This will facilitate both inward and outward remittances. Significantly, this expansion aims to provide businesses with the same benefits enjoyed by retail customers, further revolutionising cross-border payments.

—

This article is sponsored by The Siam Commercial Bank (SCB)

We can share your story at e27, too! Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us here to get started.

Featured Image Credit: SCB

—

About SCB

The Siam Commercial Bank PCL is the first Thai bank. The bank is one of Thailand’s leading universal banks. It provides a full range of financial services through its nationwide branch network to customers in all segments. In particular this includes wholesalers, SMEs, and retail banking services. SCB aims to become Thailand’s “Most Admired Bank” with “Digital Bank with Human Touch” strategy and “the number one in universal digital bank in wealth management. Thus, it offers seamless experiences across all channels to customers” mission by balancing value propositions for all stakeholders – customers, employees, shareholders, regulators, and society – and becoming a leader in shaping the future of Thailand’s banking industry. For more information, please visit https://www.scb.co.th/.

About SCB 10X 

SCB 10X Co., Ltd. is a disruptive technology investment arm of SCBX Group. It was established in January 2020 with a “moonshot mission” to achieve exponential growth through technology innovation and investment in disruptive technologies. This includes Digital Asset, Blockchain, Web3, as well as AI & Deep Tech. For more information, please visit https://scb10x.com/.

About Lightnet

Lightnet is a fintech company building the next generation financial technology that targets areas of financial accessibility, financial mobility and cross-border money transfer. The company has regional hubs in Singapore, Lithuania and Dubai with operations across Asia and Europe. Co-founded by Mr. Chatchaval Jiaravanon and Mr. Tridbodi Arunanondchai. Lightnet offers cutting-edge multi-asset global payment solutions with real-time settlement capabilities powered by AI and blockchain technology. For more information, please visit https://lightnet.io/.

About Fireblocks

Fireblocks is an easy-to-use platform to create new blockchain-based products and manage day-to-day digital asset operations. Exchanges, banks, PSPs, lending desks, custodians, trading desks, and hedge funds can securely scale their digital asset operations through the Fireblocks Network and MPC-based Wallet Infrastructure. Fireblocks serves thousands of organisations in the financial, payments, and web3 space. It has secured the transfer of over $6 trillion in digital assets. Further, it has a unique insurance policy that covers assets in storage & transit. Find out why CISOs and Ops Teams love Fireblocks at www.fireblocks.com.

The post SCB and Lightnet to revolutionise cross-border payments and remittances with stablecoin, powered by Fireblocks appeared first on e27.