Leo Tolstoy’s classic quote goes, “All happy families are alike; each unhappy family is unhappy in its own way.” While he meant that for families, the same could be applied to startups. In times of economic prosperity, startups often thrive under similar conditions—ample funding, low interest rates, and a receptive market. However, when the economic climate shifts, each startup faces its own unique set of challenges that test its resilience and adaptability.

And in our case, it was the high interest rate environment.

BorderDollar started out as a cross-border financing startup at the end of 2023, and it has been nothing short of a rollercoaster. In our previous issue, we complained about the high interest rate environment, which led to an all-around harder time to raise funding. In this article, we’re stepping up to complain some more and share how the interest rates have affected us apart from funding.

Feeling the pain

For an early-stage lending startup like BorderDollar, a high interest rate environment presents a trio of challenges that are difficult to navigate:

Increased cost of capital

High interest rates mean that debt investors and financiers expect higher returns. It makes sense—they’d rather park their money in safer investments like money market funds, which have become more attractive due to the rate hikes. In 2023, yields on money market funds rose significantly, often exceeding five per cent. Consequently, private credit investors began benchmarking their expected returns around 12 per cent APY—roughly double the rate of money market funds.

For a young financing startup without access to a bank’s line of credit, the options are limited and expensive. The elevated cost of capital squeezes margins and makes it challenging to offer competitive rates to borrowers while still providing attractive returns to investors. It’s like being stuck between a rock and a hard place—investors want more return, borrowers want lower rates, and we’re in the middle trying to make the numbers work.

Borrowers’ threshold for interest rates

There’s a limit to how much companies are willing to pay regarding the interest rates we charge. Borrowers in markets with long payment cycles but low margins can’t afford high-interest loans without jeopardizing their profitability. This shrinks our potential client base, limiting us to borrowers who either have higher margins or are willing to accept higher rates—often because they have no other options.

It’s a delicate balancing act. We can’t simply pass on the higher costs to our clients without risking losing them altogether. But absorbing the costs isn’t sustainable for us either. We’re basically juggling flaming torches while riding a unicycle—one wrong move, and it all comes crashing down.

Risk profile of borrowers

Venturing into lending to borrowers who accept high interest implies a higher level of risk. These borrowers may have weaker credit profiles or operate in volatile markets, increasing the likelihood of defaults. For an early-stage startup, a spike in default rates can be catastrophic, affecting both our financial stability and reputation. It’s the classic high-risk, high-reward scenario, but in our case, the potential rewards don’t justify the existential risks.

Also Read: Startup survival: Smart marketing moves for economic uncertainty

The winds are changing once again

All hope is not lost—this just means we’ve got to pivot to take advantage of the market conditions.

With indications that the Federal Reserve may consider further lowering interest rates in response to evolving economic conditions, we might start seeing things returning to a more favourable interest rate environment.

More importantly, a lower interest rate could boost another sector—cryptocurrency and blockchain. Historically, there’s been an inverse correlation between interest rates and the rise of crypto. When traditional investments offer lower yields, investors often turn to alternative assets like cryptocurrencies in search of higher returns. We think we might be in for another boom cycle.

So, what’s our next move?

We’re pivoting towards integrating blockchain technology into our platform and going into cross-border payments. While the journey has been challenging, we’re optimistic about what the future holds. The potential shift in interest rates offers a glimmer of hope, and our pivot towards blockchain positions us to capitalise on emerging trends.

As Tolstoy suggested, every unhappy startup faces its own unique struggles. Yet, it’s through these challenges that we find our resilience and drive to innovate. The road may be bumpy, but with determination and adaptability, we’re confident we’ll navigate through these obstacles.

So here’s to founders out there struggling, let’s hang in there and pivot if need be!

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In periods of economic uncertainty, the typical knee-jerk reaction for many startups is to go laser-focus on lead generation — get more leads, convert more prospects, rinse, repeat.

While lead generation is undoubtedly important, the fixation on it often overshadows other critical aspects of B2B marketing and communications that can truly build resilience and ensure long-term growth. And when resources are tight, startups especially need a more holistic, strategic approach to thrive.

Here are six powerful considerations for B2B marketing and communications that I have noticed get easily overlooked to focus on in uncertain times:

Brand trust: Built around customer-centric messaging

During economic uncertainty, businesses are more cautious about their spending. Trust becomes a pivotal factor in decision-making. Your brand’s ability to remain authentic and customer-centric will determine whether clients tide through the tough times with you.

Make your messaging reflect an understanding of your customers’ current challenges and how your solutions can help them navigate these hurdles. Instead of bombarding them with “buy now” messages, consider showing them how your product or service can solve their most pressing pain points, offer cost savings, or increase operational efficiency.

Retention over acquisition

Acquiring new customers is expensive, particularly when budgets are tight, and markets are unpredictable. Rather than focusing solely on bringing in new leads, invest in keeping the customers you already have. Retention strategies are often underutilised but are incredibly cost-effective, especially when compared to the time, energy, and financial resources required for acquisition.

Focusing on customer success, offering personalised solutions, and demonstrating that you are a reliable partner during difficult times will significantly increase retention. Happy customers not only stick around longer, but they also become your advocates, driving word-of-mouth referrals—often the best and least expensive form of marketing.

Agile marketing strategies

Agility in your marketing approach is essential when market conditions are constantly changing. But contrary to popular belief, agility isn’t just about quick shifts in campaigns or messaging. It’s about flexibility and adaptability at every level—from strategy down to execution.

Also Read: Unlocking marketing success for startups and small businesses: Strategies for excellence

As you craft your marketing plans, allow space for changes. Be prepared to pivot your messaging, shift your budget, or adjust campaign goals on the fly. This way, if a key trend shifts or customer behaviour alters, your team can respond swiftly, keeping your marketing relevant and aligned with the business landscape.  Take this time to also weed out areas that are slow to pivot – they will likely be more apparent in uncertain times.

Digital automation and transformation

Perhaps even more important than agile marketing strategies are agile marketing processes. How can your team efficiently execute these pivots in real-time without burning out or burning through your budget? Enter digital automation and Gen AI.

Automation tools can streamline your workflows, making your team more efficient by handling repetitive tasks and reducing human error. Whether it’s automating email campaigns, social media posting, or lead nurturing, this gives your marketing team the bandwidth to focus on high-level strategy. Incorporating Generative AI tools for content creation, data analysis, and campaign optimisation can significantly accelerate your responsiveness and make personalisation at scale achievable, even with limited resources.

In a landscape where everything is uncertain, watch for processes that keep your operations nimble.

Strategic partnerships and collaborations

When resources are limited, it’s time to get creative. Strategic partnerships and collaborations can offer a win-win for both parties. Partnering with a business that complements your offering—without directly competing—allows you to expand your reach, share resources, and tap into new customer segments without the heavy cost burden.

These partnerships also enhance credibility. A strong alignment with a respected brand can elevate your own brand’s reputation and trustworthiness in the eyes of your customers. Done well, many of these partnerships and collaborations will take you into the good times or even creating new target market segments together.

Crisis and risk management communication

Now I saved this for last.  Many companies avoid the topic of crisis communication, preparing for worst-case scenarios is a must, particularly in volatile times. Your customers need to feel confident that you can handle unforeseen circumstances without dropping the ball.

Also Read: How to maximise marketing efforts on a shoe-string budget

Having a clear crisis communication plan is essential. This includes knowing exactly how and when to communicate with your customers during disruptions, economic shifts, or internal issues. Transparent, honest communication about what’s happening and how it affects your customers will help maintain trust and minimise the impact of a crisis on your brand reputation.  Listening tools to tap into information being communicated or talked about various media platforms will also help you stay up to date with news that can change quickly in volatile times.

During economic uncertainty, it’s not enough to rely on the traditional lead generation playbook. Startups and businesses need a more resilient approach—one that looks beyond immediate conversion and focuses on building enduring customer relationships, operational agility, and brand trust. By investing in these lesser-known, yet equally critical areas, B2B marketers can not only survive the unpredictable economic landscape, but leverage opportunities to build something stronger in the long run.

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Having worked in the influencer space for five years, Priyanka Mahulkar recognised the challenges brands and nano-influencers faced, particularly local businesses with limited budgets. From planning to execution, brands struggled with selecting the right influencers, creating content, and managing timelines — all while staying within budget.

While there existed agencies facilitating these collaborations, they charged hefty fees, leaving many smaller brands sidelined.

Mahulkar wanted to streamline the process through new-age technologies and make it affordable for small brands.

Also Read: Influencer marketing strategies: Driving engagement and reach in Indonesia

This led to the birth of Gram Circle.

Based in Singapore, the startup aims to revolutionise influencer marketing by creating new economic opportunities for local brands and influencers through its AI-powered platform.

The product was born out of the need for local brands to establish an online presence during the pandemic, and then it pivoted to a fully automated AI platform.

“At its core, Gram Circle enables brands to scale their businesses through influencer collaborations while allowing influencers to discover partnerships more easily. This process benefits both parties: brands can quickly launch campaigns, and influencers can create relevant content without the hassle of searching for suitable partners,” Mahulkar told e27.

Enhancing campaign management

According to Mahulkar, Gram Circle’s AI technology is the key differentiator that enhances campaign management and performance tracking. The AI matches brands with the most suitable influencers based on shared values and target audiences. It also simplifies brands’ workflow, from crafting campaign briefs to identifying influencers, reducing the time it takes to set up marketing efforts.

“It is a DIY platform that empowers small and medium-sized enterprises (SMEs) to take control of their marketing campaigns without relying on costly agencies. It can set up influencer campaigns in minutes, offering brands a cost-effective way to launch large-scale, high-impact campaigns,” Mahulkar shared.

Similarly, influencers are guided on content creation, with suggestions tailored to each campaign. This mutual benefit fosters efficiency and removes the manual processes that often bog down influencer marketing efforts.

For example, a local café used Gram Circle to host an exclusive preview event for influencers, generating buzz on social media that increased brand awareness and strengthened community engagement.

The solution also offers predictive analytics to estimate campaign reach and engagement, automated reporting, and performance benchmarking.

The startup charges a monthly fee of S$188 (US$146), allowing brands to partner with influencers across various food, fashion, and beauty industries. A beauty brand in Singapore used Gram Circle to generate over 80 TikTok videos in just one month,  demonstrating the platform’s efficiency and cost-effectiveness

“For just S$188 per month, brands can run campaigns that generate significant results, while influencers are rewarded based on transparent performance metrics,” she stated. “We are also developing an affiliate system that ties influencer compensation directly to campaign outcomes, ensuring that both sides benefit from successful collaborations.”

Targetting 60M nano-influencers

As Gram Circle expands, it targets 20 million businesses and 60 million nano-influencers across platforms like Meta and TikTok. Its city-by-city growth strategy builds authentic relationships through community events and connects influencers with local brand owners to foster meaningful collaborations.

The company is also eyeing the vast direct-to-consumer (D2C) markets in Southeast Asia and India, aiming to expand into these regions when the time is right.

Influencers benefit from content analysis tools, dynamic pricing models, and optimisation suggestions to improve their content performance.

Also Read: AI in influencer marketing: Transforming trends and shaping the future

With the influencer marketing industry projected to grow by 28.6 per cent CAGR by 2032, Gram Circle aims to capitalise on this trend. The platform’s core value lies in its focus on local communities, where local brands and influencers come together to drive economic impact.

Looking ahead, Gram Circle sees AI as a driving force in the future of influencer marketing, especially in the micro and nano-influencer segments.

“As the landscape becomes more competitive, authenticity and deeper audience engagement will be essential for success. We are committed to guiding this transformation, using technology to deliver data-driven solutions that benefit both brands and influencers,” Mahulkar stated.

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Image Credit: Gram Circle.

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Malaysia’s startup ecosystem is vibrant and growing, and many founders are considering establishing a presence here. As a startup lawyer who regularly advises founders on establishing a startup in Malaysia, I’ve put together eight frequently asked questions (FAQs) that hopefully will help address your most frequent concerns.

What is the usual way for a startup to be established in Malaysia?

A startup is usually formed as a company limited by shares. The usual abbreviation is ‘Sdn Bhd’ (which means ‘Private Limited Company’). If you are running an existing business in your home country, a startup may be formed as a subsidiary of the home country and can be registered with 100 per cent foreign ownership, with the exception of certain business sectors.

A foreigner may also own a company as the sole shareholder. However, if you want to be the sole director of the company, at least one domicile director is needed to form an entity.  

What are the options available if I don’t have a domicile director?

If you are running an existing startup in a home country and may not have plans to relocate to Malaysia immediately, you may employ a country manager in Malaysia via an Employer on Record (EoR) before you officially expand your startup to Malaysia. 

Alternatively, you may engage a nominee director service to fulfil this legal requirement until you decide to relocate to Malaysia or hire a country manager as one of the directors in Malaysia. 

I’m a foreigner who wants to relocate and run my startup from Malaysia. What is the best route for me?

As a foreigner, you may apply for Malaysia Tech Entrepreneur Program (MTEP), a visa programme started in 2017 by Malaysia Digital Economy Corporation (MDEC), a government agency in charge of promoting the digital economy in Malaysia to facilitate work visas for foreigners who want to establish a startup in Malaysia even before formally forming a startup. 

Also Read: Re-skilling in the age of AI and navigating the future of work in Malaysia

There are two types of passes offered by MTEP, namely — Professional Visit Pass (PVP-MTE) which is valid for one year, and Residence Pass (RP-MTE) — which is valid for up to five years for new foreigners and established foreigners respectively. 

What are the roles of a company secretary for my startup?

All companies established in Malaysia are required to have at least one company secretary. We generally advise startups to engage an experienced corporate secretarial firm with considerable past experience in advising startups. 

In addition to helping with the entity formation, bank account opening, and statutory filing to the registrar, the Companies Commission of Malaysia (CCM), the corporate secretary may also assist you in other compliance matters like payroll agent to registering for taxes and complying with tax laws.

What about licences? Is there a quick way to find out what licences I need and what the conditions are?

The short answer is, yes. If the product or service you want to launch in Malaysia is already regulated in your home country, chances are it may also likely be regulated in Malaysia. For example, a traveltech startup that plans to operate an online ticketing platform may likely need to be licensed by The Ministry of Tourism, Arts and Culture. If you’re not sure, you will need to consult a startup lawyer before launching the product or service.

Alternatively, you may also explore collaborating with an existing  licensee to ease the regulatory burden. However, it is crucial to develop the licensing parameters together with the appropriate legal advice.

What are the tax incentives for a startup established in Malaysia?

A startup may apply for the Malaysia Digital (MD) Tax Incentive which allows the startup to be eligible to either the reduced tax rate. As a startup with an MD status, a startup may opt for an investment tax allowance (ITA) on income derived from the approved activity. The tax incentive is administered by MDEC.

I also plan to hire foreign talents for my startup in Malaysia. What are the legal requirements involved?

If your startup receives the Malaysia Digital (MD) Status, you may obtain MDEC’s services to obtain relevant employment passes for your startup. However, the foreign employee candidate must be a “knowledge worker” (i.e. someone who is at least a diploma holder or an ex-employee in an IT service) with a basic salary of RM5,000 (approximately US$1,212.40) per month.

Also Read: Understanding priced and unpriced funding rounds: A startup lawyer’s guide for startups

If your startup does not have an MD Status, your startup may have to fulfil the normal minimum paid up capital requirement to apply for employment passes. For example, if the startup is 100 per cent owned by a parent company and is not involved in a regulated industry, the usual minimum paid up capital is RM500,000 (approximately US$121,241.50). The employment pass is eligible for certain positions, usually for highly-skilled managerial technical positions which cannot be filled by locals. 

I also want to hire locals for my startup. What are the labour laws that I should know?

Malaysia has extensive labour laws that regulate employment relationships, including minimum wage, working hours, and statutory benefits. The Employment Act sets out the minimum entitlements of employees and covers all employees — no matter how much they are paid with exception to those earning above RM4,000 (approximately US$969.70) per month  where certain provisions including overtime and layoff benefits are excluded. 

Hiring an employee may also come with other obligations, such as registering with the Employees Provident Fund (EPF) and the Social Security Organisation (SOCSO). There are also minimum wage requirements in Malaysia, which varies depending on how your workers are paid and where they are based. Startups must comply with these laws to avoid penalties. 

Therefore, you need to consider if you want to create an employment relationship as there are legal implications. In the event of a dispute, the court will look at the arrangement as a whole.

Consult a startup lawyer before hiring so that you are clear about what you can or cannot do with your employees.

Final thoughts

As a founder, establishing a startup in a new jurisdiction may appear daunting and overwhelming — irrespective of how experienced you are. Be that as it may, the reward may be worth it as Malaysia offers numerous advantages including a vibrant startup ecosystem, affordable living expenses, and access to a skilled and diversified workforce. 

By understanding these legal requirements and engaging an experienced startup lawyer to guide you during the entity formation, you will increase your startup’s chances of success in the Malaysian market.

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Truely, a travel eSIM provider headquartered in Singapore and a direct competitor to venture-funded Airalo, has completed a US$3.5 million round of financing led by 1982 Ventures and with participation from Beenext and Kopital Ventures.

Strategic angel investors, including JJ Chai (ex-Airbnb), Kum Hong Siew (ex-Airbnb), HY Sia (founder of Tranglo), Mohammad Gharaybeh, Qin En Looi, Eric Dadoun, and Gilbert Relou, among others, also co-invested.

With this capital, Truely plans to release B2B2C services designed for major travel operators, airlines, airports, OTAs, and service providers, as well as additional products and services to help keep global travellers connected to workplaces and loved ones.

Founded in July 2023, Truely provides access to mobile data across over 200 destinations and regions, with services in multiple languages. It eliminates the need for physical SIM cards and associated clutter, expiring and overlapping plans, and expensive roaming charges.

Also Read: Use Airalo eSIM and stay connected wherever you go in the world

The company offers users flexible plans based on travel needs, selecting data plans based on destination, travel duration, and data packages. Compatible with most modern smartphones, the eSIM can be installed in minutes without replacing the user’s original SIM card. The eSIMs can also be used in tandem with physical SIM cards for dual SIM flexibility.

“We created Truely with user experience at its core—understanding that incumbent options lacked user-friendliness and depended on burner eSIMs. Our flexible and affordable packages offer best-in-class coverage at affordable prices, while also achieving maximum ease-of-use,” said founder and CEO Simon Landsheer. “Leveraging Truely’s Switchless eSIM technology, we will continue to release exciting and innovative products and features to meet diverse traveler needs, keeping travellers connected seamlessly wherever they go at unprecedented ease.”

According to research by Kaleido Intelligence, the eSIM retail market is expected to reach US$3.3 billion in retail sales by 2025 and is projected to grow nearly 50 per cent annually over the next four years. This is driven by the transition from physical travel SIMs, broader eSIM availability in mid-low-tier smartphones, and more affordable data plans.

Singapore-based Airalo is a pioneer in the global e-SIM place. Established in 2019, the company has raised more than US$67 million in venture investments over multiple rounds. In August 2023, Airalo secured US$60 million in a Series B round from a clutch of investors, including Etisalat’s e& capital, Liberty Global, Singtel Innov8, Orange Ventures, Deutsche Telekom’s T.Capital, KPN Ventures, and Telefonica.

Airalo claims it offers eSIMs for over 200 countries and regions through partnerships with both local and regional players. It provides travellers with instant access to digital data packs upon landing. However, it doesn’t provide voice call facilities in many countries and regions.

For businesses operating in the online travel or e-commerce sectors (e.g., online travel agencies, airlines, hotels, travel service aggregators), Airalo offers its API Partner programme. Airalo API Partners gain access to easy-to-use APIs, enabling them to provide connectivity solutions to their customers by integrating eSIM solutions into their platforms.

For businesses, Airalo also offers a fully built and maintained co-brand website. The business refers its users to the co-brand website for a commission, enabling the users to enjoy attractive offers from Airalo.

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The phrase ‘every company is a software company’ has become more common. It is a phrase born out of the recognition that businesses are increasingly operating digitally and need to do so to be successful. Operating solely offline is quickly becoming obsolete for today’s customer.

A recent report by Microsoft entitled Unlocking the Economic Impact of Digital Transformation in Asia Pacific reveals that by 2021 digital transformation will be worth a staggering US$45 billion to the continent’s GDP, and businesses who invest in digital transformation will see a 40 per cent improvement in productivity and cost reduction and a 50 per cent increase in profit margins.

For retailers and business-to-consumer companies, in particular, one of the main reasons investing in technology is crucial is the need to be where their customers are, and engage with them on their terms. The customer experience is increasingly complicated as shoppers expect brands to be available to them in a personalised way across various channels, in real-time. Customer-centric businesses are now realising that the customer experience can make or break their outlet.

It is a long journey to get this right, but businesses will increasingly need to overhaul and digitally transform their current customer communications.

A Twilio study found that nine out of 10 consumers globally want to communicate with brands digitally. The majority of these people want to, not only receive messages from a business but also be able to respond to that message. Sixty-six per cent of consumers now prefer to reach (or be reached) through messaging apps. Globally, 47 per cent of users prefer native text messages when communicating with brands, followed by Facebook Messenger (21 per cent), Whatsapp (18 per cent), LINE (six per cent), and Snapchat (two per cent).

What this shows is that businesses need to adopt a multi-channel strategy to ensure they interact with customers on the modern and varying channels that they like to frequent.

Also Read: The art of customer loyalty: 5 ways to create irresistible customer experiences

Recognition and complexity

According to a report from SmarterHQ, 72 per cent of consumers say they now only engage with marketing messages that are personalised. So along with ensuring companies to tailor messages based on customers’ wants and interests, there is no better way to personalise a message than to send it on their preferred channel.

Despite this, a report by Forrester entitled Vendor Landscape: Mobile Messaging Platforms, shows that while consumers send over 370 billion texts, Apple iMessage, Facebook and WhatsApp messages globally in a fortnight block, enterprises are still struggling with finding new and effective ways to engage customers using the channel.

A key issue here is often that businesses do not recognise their communication shortfalls, or where they are going wrong. As a result, they fail to improve and communicate with their customers effectively. This was supported by Twilio’s Bridging the Communications Divide research which showed that 81 per cent of consumers say it is often difficult to communicate with businesses, but only 34 per cent of businesses acknowledge these challenges.

There is also a question of complexity. Traditionally, integrating various messaging channels and maintaining the infrastructure has presented a difficult technical challenge for businesses.

Tech is the answer

The answer to the customer communication problem is a combination of recognition and action. Going back to the notion that every company is, or should be, a software company; once a business has recognised that they can improve how they communicate with their customers, the best course of action is to invest in the right technology to truly execute an effective customer communication programme.

Businesses should look out for APIs that enable developers to build conversational experiences across multiple messaging channels simply and at scale. As mentioned,  integrating multiple messaging channels and having the foundations in place to support group messaging and cross-channel conversations has, until recently, been extremely complex.

Also Read: Real-time communications provider Qiscus, another Indonesian startup taking part in Asian Games 2018

As such, businesses should capitalise on modern technologies which remove complexity by allowing developers to leverage a unified API to scale group conversations across platforms such as SMS, MMS, Chat and WhatsApp.

No excuse

It must be said that despite there being a long way to go until brands get customer communication right – more leading companies are recognising the importance of multi-channel communication in delivering high-quality customer experience and are investing in technology to do so effectively.

Frankly, there is no longer an excuse. Rolling out a multi-channel approach is more attainable than ever. Customers want to be communicated with on their preferred channels; the technology is there to enable developers to make it happen. It is now up to businesses to capitalise on it. As the saying goes, every company is, or should be, a software company.

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This article was first published on December 18, 2019

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It was recently reported that the Vietnamese social commerce platform Mio, which raised US$9 million in funding from investors, including Jungle Ventures and Golden Gate Ventures, since its inception in 2020, has ceased operations.

As per the report, Mio, operated by ITaphoa Company, could not maintain its momentum after it pivoted to focus exclusively on the meat sector, leading to the shutdown.

According to Mio’s founder and CEO, Trung Huynh, while the meat market showed great potential and the startup observed early promising results in product-market fit (PMF) and traction in 2023, its unit economics still required substantial improvement.

“Given the company’s current business and financials and its internal evaluation of the capital market, Mio has decided to halt operations and distribute the remaining funds to its investors,” he said in a statement to e27.

In this interview, Huynh shares more insights into the rationale behind the shutdown and his future plans:

Edited excerpts:

Mio was a group-buying platform for groceries and fresh produce. In 2022, it pivoted to focus exclusively on the meat sector. Could you share more about the reasoning behind this decision?

We decided to pivot because we realised that scaling our broader social commerce model was becoming increasingly challenging due to high operational costs and intense competition.

Also Read: Mio banks US$8M Series A to empower Vietnamese women via its social commerce platform for fresh produce

By narrowing our focus to meat, we saw opportunities to leverage stable demand, improve our margins, and simplify logistics. This shift also allowed us to transition to a B2B model, creating more consistent supply chains and improving customer retention.

While you observed promising results in PMF and traction, you mentioned that unit economics needed substantial improvement. What were the primary challenges in optimising these economics, and how did they impact Mio’s growth trajectory?

Despite its size of over US$10 billion and stable demand, the meat market presents significant challenges. We’re caught between the strict quality requirements of our B2B customers in the HoReCa (hotels, restaurants, and catering) sector and the dominance of five to six large suppliers.

Without owning farms, we lack bargaining power, which limits margin improvements. Moreover, our reliance on these major suppliers means adapting to their product availability, operating hours, and logistics, giving us minimal flexibility to optimise operational costs and improve margins further.

You said in a statement that Mio had the capacity to continue operating for at least 1.5 years more. What led you to shut down now rather than use that time to improve the business model further or seek additional funding?

We realised that without owning farms or suppliers, we lacked the bargaining power and vertical integration necessary to optimise unit economics. Owning farms would have been essential to securing better margins and stable supply, but it required substantial capital and time investments.

While we improved internal operations through technology, the core challenge remained on the supply side. Given the scale of this issue, we decided against another pivot and chose to shut down instead.

You also emphasised the responsible return of funds to investors. How did you ensure investor confidence throughout the wind-down process, and what feedback have you received from them regarding this decision?

This was a difficult decision for the team, but we had 100 per cent agreement from the board and major shareholders, which helped maintain investor confidence.

Communication was vital—aside from board members and major shareholders, I offered every investor a one-on-one conversation to walk them through the decision and address concerns.

The decision was met with understanding and respect from other investors, who appreciated our transparency and honesty. Some even praised the brave decision and encouraged me to take a break and recharge, which I truly appreciated.

As a founder navigating Mio’s growth and closure, what are the biggest lessons you’ve learned from building and managing a startup, especially in a dynamic market like Vietnam?

Navigating both Mio’s growth and closure in Vietnam has taught me that the market holds immense potential for rapid success if executed well. Vietnam’s startup landscape is dynamic and highly receptive, and we scaled from inception to a Series A term sheet within just a year.

This experience underscored that having the right team, strategy, and speed is crucial, as the window for growth is often short, and timing matters significantly.

Another key takeaway is the value of relentless hustle in a country like Vietnam, where ambition and resourcefulness are essential for startups. I adopted the motto: “It’s better to do things you can’t explain than to explain things you cannot do,” inspired by Nassim Taleb.

This drove our team to operate quickly and creatively, making things happen even when the direction wasn’t always clear. Staying nimble and agile became our approach, helping us to address challenges and seize opportunities in a fast-paced environment.

Lastly, effective communication is critical, especially when working with international investors unfamiliar with Vietnam’s unique business landscape and its “grey areas.”

Since all 20 of our investors were based outside the country, maintaining clarity and transparency became paramount. I prioritised keeping them informed, even when strategies were complex or hard to explain.

Also Read: Mio raises US$1M to help rural Vietnamese women become micro-entrepreneurs

This transparency built trust and maintained investor confidence throughout both the growth and wind-down phases. It’s important not to expect every investor to grasp all nuances fully initially but to ensure they understand the intention and strategy behind each decision.

The news report linked Mio’s closure to a broader trend of tech startups facing challenges in Vietnam. In your view, what is the current landscape for startups in the region, and how does Mio’s situation differ from this general narrative?

While I’m not in a position to comment on others’ successes or failures, building a high-growth startup is extremely challenging everywhere, not just in Vietnam; the odds are stacked against you from day one. It’s like choosing the “death penalty” from the moment you commit to this path.

Mio’s closure, however, was a strategic decision, not a forced shutdown due to lack of funds.

We carefully evaluated the sustainability of our model, the practicality of continuing without significant investments, and the overall interests of our shareholders. Even though 1.5 years could have brought some incremental improvements, without a substantial capital infusion, it wouldn’t have been enough to make a significant impact.

So, instead of continuing with a model that wasn’t scalable in the long term, we chose to return the remaining funds to our investors while it still had meaningful value.

The closure was carefully managed to ensure a fair outcome for everyone involved, in this order:

• Paying all suppliers in full.
• Honouring all employee settlements and severance packages.
• Returning all remaining funds to our investors.

The process was conducted transparently and systematically, ensuring everyone’s interests were respected.

Despite Mio’s closure, do you still see potential in the social commerce model for Vietnam or similar markets? What factors do you think are necessary for such models to thrive in the future?

I like Jeff Bezos’s approach of focusing on ideas that won’t change over time, asking, “What’s not going to change in the next ten years?” In that sense, both the “social” and the “commerce” aspects of “social commerce” are here to stay for a very long time. Smart companies understand this.

The future potential will depend on which models are introduced and whether they fit the market’s evolving needs. Social commerce has taken many forms, and some companies are still successfully executing this model.

What are your plans post-Mio? Are there other sectors or opportunities you consider exploring in Vietnam or beyond?

It’s been an intense, nearly four-year journey, and now that I’m a dad with two kids, I’m planning to step away from the startup world for a while to spend more time with my family. I’m still open to exploring new opportunities in the future, but for now, my focus will be on my family. I might consider coming back at some point, but there isn’t a definite time frame for when that will be.

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As interest in business incorporation across Asia and the Middle East rises, understanding the nuances of each market is crucial. Our latest report, “Hong Kong vs Singapore vs Dubai: Which Place Is Better?” offers a detailed comparison of these three global business hubs, highlighting their unique strengths and challenges for entrepreneurs.

The report provides a holistic analysis of the business environments in Hong Kong, Singapore, and Dubai, covering key areas such as:

• Taxation: Hong Kong’s 8.25 per cent on the first HK$2M (approximately US$256,000) and Dubai’s 0 per cent initial corporate tax offer attractive incentives, while Singapore’s flat 17 per cent remains competitive for established companies.
• Regulatory frameworks: Hong Kong and Singapore lead with transparent and business-friendly regulations, whereas Dubai’s free zones allow 100 per cent foreign ownership, creating additional appeal.
• Labour market: Singapore excels in talent availability, followed by Dubai, which benefits from its expatriate-friendly policies. Hong Kong, despite its competitive job market, faces challenges from regional competition.
• Quality of life: Singapore ranks highest in education and healthcare, Dubai offers affordable living and safety, while Hong Kong excels in vibrant business culture and networking opportunities.

Also Read: Singapore, Berlin and Dubai: Unveiling the unique fabric of global startup ecosystems

When deciding where to incorporate, understanding the nuances of each region can give your business a competitive edge. Hong Kong offers a gateway to China, Singapore stands out for tech and innovation, and Dubai provides unmatched access to the Middle East.

Which city aligns best with your business goals? Dive into the full report here to make an informed decision.

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I wrote an article titled “Will China lead the Artificial Intelligence game by 2030?” back in 2020.

Four years have passed, and now, it’s time to assess our current position in this discussion. As we stand on the cusp of 2024, artificial intelligence (AI) has solidified its status as one of the most important technological frontiers of the 21st century. With AI rapidly evolving, nations worldwide are vying for dominance in this critical domain.

Among the contenders, China has emerged as a significant player, raising a key question: Will China lead the global AI game by 2030?

China’s AI ambitions: A vision for 2030

China’s aspirations to become a global leader in AI are no secret. In 2017, the Chinese government unveiled its “New Generation Artificial Intelligence Development Plan”, outlining an ambitious roadmap to transform the nation into the world’s AI superpower by 2030.

The plan has three key milestones:

• By 2020: Establish a strong foundation in AI research and development (R&D).
• By 2025: Achieve significant breakthroughs in AI theory, creating world-leading AI technologies and industries.
• By 2030: Lead the world in AI innovation, applications, and regulation, making AI the core driver of China’s industrial transformation.

This roadmap demonstrates China’s recognition of AI’s importance as a transformative technology that will shape economies, national security, and global influence.

Key factors driving China’s AI growth

Several factors suggest that China could emerge as a leader in AI by 2030, positioning itself ahead of other major players like the United States, Europe, and Japan.

Massive data availability

AI thrives on data, and China’s vast population of over 1.4 billion people generates immense amounts of data daily. Data is crucial for training AI algorithms, particularly in areas like machine learning and deep learning. Moreover, China has fewer privacy restrictions compared to many Western countries, enabling the collection and utilisation of data on a large scale. This data abundance gives Chinese AI firms a significant advantage in developing more sophisticated algorithms and refining AI systems at a faster pace.

Also Read: Challenges of AI development in Vietnam: Funding, talent and ethics

Government support and investment

The Chinese government has placed AI at the core of its national strategy, providing robust financial backing and policy support. According to reports, China’s AI investment exceeded US$17 billion in 2022, a figure expected to rise dramatically over the next few years. The government’s proactive stance, offering subsidies, tax incentives, and funding for AI startups, has fostered rapid growth in the AI ecosystem.

Additionally, China’s state-owned enterprises (SOEs) and tech giants like Baidu, Alibaba, Tencent, and Huawei—collectively known as the BAT companies—are heavily involved in AI R&D, contributing to the nation’s AI ambitions. The alignment of corporate and state objectives strengthens China’s position to scale AI advancements rapidly.

Talent pool and education

China has recognised the importance of cultivating a domestic AI talent pipeline to sustain its AI aspirations. The government has invested in AI education at all levels, from elementary schools to universities, establishing AI institutes and encouraging partnerships between academia and industry.

Moreover, China has succeeded in attracting top AI talent from around the world, with many Chinese scientists who have studied abroad returning to contribute to the nation’s AI goals. This influx of both local and international talent enhances China’s ability to innovate and stay competitive in AI research and applications.

Application and integration across industries

China’s AI focus is not limited to research but extends to real-world applications. The country is already applying AI across various sectors, from healthcare and autonomous driving to manufacturing and finance. For example, cities like Shenzhen and Shanghai are testing AI-driven smart city technologies, while Chinese companies are rapidly advancing in AI-enhanced robotics, facial recognition, and natural language processing (NLP).

Also, AI integration in China’s military and national security sectors is advancing at a rapid pace. AI-driven technologies like autonomous drones, cyber defense systems, and surveillance platforms are becoming integral to China’s defense strategy, which could give the country a strategic edge globally.

Challenges on the path to AI leadership

Despite its advantages, China faces several challenges in its quest to dominate AI by 2030.

Geopolitical competition and tech restrictions

The geopolitical landscape, particularly the escalating tech rivalry between China and the US, presents significant hurdles. US export controls and restrictions on key technologies, such as advanced semiconductors and AI hardware, could stifle China’s progress. The US has already limited access to high-end chips and AI-related software, which are crucial for building cutting-edge AI systems.

Also Read: Can AI truly connect? The emotional dilemma of virtual influencers for women

Innovation vs imitation

While China has made significant strides in AI development, critics argue that much of its progress has been built on existing technologies developed elsewhere. For China to lead in AI by 2030, it must shift from imitating global innovations to pioneering its breakthroughs in AI theory, hardware, and ethical frameworks.

AI ethics and regulation

China’s relatively lax data privacy standards may foster faster AI development, but ethical concerns loom large. The use of AI in surveillance and social control, such as the “Social Credit System”, has drawn international criticism. Balancing technological advancement with ethical AI use and robust regulation will be a critical challenge for China as it seeks global leadership.

So to the question: Will China lead by 2030?

China’s concerted efforts in AI, from government investment and corporate engagement to massive data reserves and talent cultivation, suggest it is well-positioned to be a major AI power by 2030. However, global competition, technological restrictions, and ethical concerns remain significant barriers to China’s leadership ambitions.

While it is difficult to predict with certainty, if China continues its current trajectory and overcomes the challenges ahead, it may not just be a contender but a global leader in AI by 2030, reshaping industries, economies, and the balance of global power in the process.

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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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The post Will China lead the artificial intelligence game by 2030? — Part 2 appeared first on e27.

Dear reader,

OpenAI’s latest US$6.6 billion funding round, the largest in VC history, underscores its dominance in the AI landscape. With a valuation soaring to US$157 billion, the company is positioning itself not just as a leader in generative AI, but as a central force shaping the future of technology.

This cash infusion, led by Thrive Capital and supported by heavyweights like Microsoft and Nvidia, allows OpenAI to further its ambitions in AI research and infrastructure.

The high burn rate associated with developing models like GPT-4, which reportedly cost over US$100 million to train, illustrates the monumental resources required to stay at the forefront of AI innovation.

Yet, competition is stiff. Rivals such as Anthropic, xAI, and startups specialising in video generation challenge OpenAI’s dominance, suggesting that the battle for AI supremacy is far from over.

However, this unprecedented funding round could come with strings attached, especially with OpenAI’s planned shift from nonprofit to for-profit governance. This move could potentially untether the company from investor return caps, giving it the flexibility to make bold bets like building its own AI chips or entire data centres.

Amidst leadership turmoil, OpenAI’s future remains promising but fraught with challenges, making its next steps critical in maintaining its lead.

Sainul,
Editor.

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NEWS & VIEWS

OpenAI raises US$6.6B and is now valued at US$157B
Led by previous investor Thrive Capital, the new cash brings OpenAI’s total raised to US$17.9 billion; OpenAI reportedly asked investors to avoid backing rival startups such as Anthropic and xAI.

Indonesia’s Broom bags US$25M funding to accelerate market expansion
The investors include Openspace Ventures, AC Ventures, Quona Capital, and MUFG Innovation; Broom focuses on empowering Indonesia’s used car showroom ecosystem through technology and optimising vehicle inventory access.

Indonesia blocks Temu to protect local MSMEs
Minister of Communications and Informatics Budi Arie Setiadi said the e-commerce platform’s direct sales model could jeopardise local vendors’ livelihoods, particularly hurting smaller businesses that form the backbone of Indonesia’s economy.

Texas sues TikTok for violating children’s privacy
The lawsuit filed by Texas Attorney General Ken Paxton seeks an injunction and civil penalties of up to US$10,000 for each violation of the state’s Securing Children Online through Parental Empowerment Act.

Google flexes its edge in India in AI showdown
Google is ramping up its AI efforts in India to integrate AI across its products for Indians; It is deploying its AI model, Gemini, to enhance search, visual recognition, and language processing.

IFC invests US$7M into Philippine fintech firm First Circle
Other backers are Endeavor Catalyst, Fasanara Capital, Insignia Ventures Partners, and Accion; First Circle’s innovative credit systems provide SMEs with higher credit limits, flexible repayment options, and the lowest unsecured pricing in the market.

Clout Kitchen lands US$4.45M funding to expand its AI game companion ‘Backseat AI’
The investors include a16z SPEEDRUN, Peak XV’s Surge, AppWorks, Antler, Hustle Fund, and Orvel Ventures; Clout Kitchen builds creator-powered interactive experiences in gaming and pop culture that unlock new ways for top creators to engage and expand their fan base.

eSIM startup Truely raises US$3.5M to give Airalo a run for its money
The investors are 1982 Ventures, Beenext, and Kopital Ventures; Truely plans to release B2B2C services designed for major travel operators, airlines, airports, OTAs, and service providers.

TikTok exec Anuar Fariz Fadzil joins MDEC as CEO to drive Malaysia’s digital agenda
The announcement was made by MDEC chairman Syed Ibrahim Syed Noh at the Malaysia Digital Content Festival 2024 event in Kuala Lumpur.

TeamSolve nets US$2.5M for AI-powered copilot for industrial operators
The investors are SGInnovate and Burnt Island Ventures; TeamSolve’s copilot can be applied to commercial buildings, industrial facilities, or public and private utility facilities across sectors.

Antler invests in B2B2C platform for equestrian industry Canterly
Canterly integrates the management of horses, clients, staff, spaces, bookings, scheduling, and financial transactions into one system; The funding will allow Canterly to accelerate product development and expand into key markets.

Securities Commission Malaysia unveils three initiatives to spur innovation
SC will introduce a regulatory sandbox and enhance its regulatory framework to encourage securities tokenisation; It will also collaborate with Khazanah Nasional to explore the issuance of tokenised bonds.

FEATURES & INTERVIEWS

‘Mio shutdown was a strategic decision, not a forced one due to lack of funds’
Mio had 1.5 years of runway, but instead of continuing with an unscalable model, it chose to return the remaining funds to its investors, says CEO Trung Huynh.

AI meets influence: Gram Circle’s solution for local brands and nano-influencers
Gram Circle enables brands to scale their businesses through influencer collaborations while allowing influencers to discover partnerships.

Banking meets digital assets: Coinbase’s take on Southeast Asia’s thriving crypto landscape
Adoption surveys revealed that many Southeast Asian markets ranked on the top end of crypto adoption indices.

FROM THE ARCHIVES

The growth of business messaging: How it’s improving business performance in Southeast Asia
Business messaging fosters personalised one-on-one connections, enhancing valuable conversations and driving business performance.

Women in tech: It’s time to reframe the conversation
To make an impact in a male-dominated industry, women in tech are going through a quest of self-discovery and reframing.

How to launch collaborations that grow communities: A guide for Web3 founders
To build a successful Web3 business, founders must create products that meet the needs of their customers and foster a sense of community.

Startups should work with corporates to achieve balance between social impact, sustainability: Arcadis
Arcadis has recently introduced its accelerator programme through a roadshow in Singapore, supporting startups in their sustainability journey.

Google’s best leaders use this simple tool to show care and concern for their employees
The search giant ends the search for a way leaders can easily invest in employees. Find out how Google does it.

All you need to know about the fintech boom in Vietnam
The banking sector in Vietnam is driven by trends of digital transformation as the government is initiating a push towards a digital economy.

Challenges of AI development in Vietnam: Funding, talent and ethics
Why Vietnam’s vision to be the AI hub is incomplete and needs collaboration from civil society, startups and users of the AI economy.

How gamification is supercharging Vietnam tech startups’ growth potential
Many Vietnamese companies have started to leverage the strategy of incorporating gamification in business as a solution to target customers.

THOUGHT LEADERSHIP

Startup survival: Smart marketing moves for economic uncertainty
Here are six powerful considerations for B2B marketing and communications that I have noticed get easily overlooked to focus on in uncertain times.

Hiring for your startup: The 5 key attributes of entrepreneur archetypes
Startups need specific strengths early on, and it can be tough to accept that trusted professionals may not be the best fit.

From niche hobby to billion-dollar industry: The meteoric rise of esports
As the industry grows, traditional sports entities will likely invest in esports, blurring the lines between conventional sports and gaming.

How technology is shaping Asia’s startup ecosystem nowadays
From the rise of fintech and e-commerce to the adoption of AI and blockchain, Asia’s startup landscape is more vibrant than ever.

8 common questions before establishing a startup in Malaysia: A startup lawyer’s perspective
As a founder, establishing a startup in a new jurisdiction may appear daunting and overwhelming, irrespective of how experienced you are.

How can we ensure AI strengthens, rather than erodes, our human connections?
As we move forward, the challenge will be to ensure that AI remains a tool that serves us, enhancing our ability to connect, grow, and empathise.

Tried and tested marketing strategies for startups across all stages in Singapore
For startups or emerging brands, marketing matters more than ever to ensure that they stand out and succeed in their respective markets.

The post Ecosystem Roundup: OpenAI raises US$6.6B at US$157B valuation | Broom bags US$25M | Jungle-backed Mio shuts down appeared first on e27.