Early stage startups, particularly in the Philippines, often face significant financial constraints. Access to funding remains one of the biggest challenges, as many founders struggle to secure initial capital to develop their products or scale operations.

While angel investors, venture capitalists, and government grants exist, competition for these resources is fierce. Additionally, many startups lack the financial literacy to manage funds effectively, leading to cash flow issues. Without proper financial backing, promising startups may fail to sustain their operations during the critical early stages of growth.

Another major challenge is the talent gap. Startups often need highly skilled professionals in tech, marketing, and finance. Still, they may not have the budget to compete with larger corporations for top talent. While the Philippines has a growing pool of young, talented professionals, many prefer the security and benefits offered by established companies.

This leads startups to compromise on talent or outsource key functions, which can slow innovation and hinder the ability to adapt quickly.

The regulatory environment and infrastructure in the Philippines also pose challenges for startups. Lengthy bureaucratic processes for business registration, high taxation, and unclear policies for new industries such as fintech or AI can stifle growth.

Also Read: Ecosystem Roundup: SEA’s angels optimistic despite startup failures | Gojek to exit Vietnam market

The country’s fragmented digital infrastructure, especially in regions outside Metro Manila, can limit startups’ reach to potential customers and investors. Moreover, navigating local and international markets requires a deep understanding of regulations and cultural nuances, adding complexity for startups aiming for regional expansion.

This is why ecosystem enablers such as accelerators and incubators can help.

A helping hand for the early stage startups

Participating in accelerator programmes can be highly beneficial for early stage startups, particularly in the Philippines, as these programmes provide essential resources that are otherwise difficult to access.

Accelerators offer startups mentorship from industry experts, which helps founders navigate challenges, refine their business models, and develop growth strategies. Startups also gain access to funding opportunities, as accelerators often have networks of investors looking for promising ventures.

These resources significantly reduce early-stage startups’ financial and operational risks, allowing them to focus on scaling their ideas.

Furthermore, accelerators offer critical networking opportunities, connecting startups with potential partners, clients, and investors within and beyond the local market. This is particularly valuable in the Philippines, where startups often need more visibility to attract international attention.

Also Read: Upturn shares investment philosophy as it debuts new accelerator programme

Join us at Echelon Philippines 2024 for an insightful panel discussion on Empowering early stage startups: The vital role of accelerators, educators, and enablers in shaping the emerging ecosystem.

This event, which will take place from September 26 to 27 at the SMX Convention Center Manila, will feature key industry leaders sharing their expertise on how startup ecosystems thrive through mentorship, funding, and innovation support.

Ben Alderson, Head of Investments at IdeaSpace Ventures, will moderate this panel, which includes speakers such as Jojo Flores, Co-Founder of Plug and Play Tech Center; Rene Cuartero, Co-Founder and CEO of AHG Lab; and Paul Pajo, OIC Director at Benilde HIFI. These experts will dive deep into the pivotal roles that accelerators, educators, and enablers play in nurturing early stage startups, offering invaluable insights for founders, investors, and ecosystem builders.

Do not miss this opportunity to learn from the best, network with industry leaders, and gain actionable strategies to propel your startup forward. Register now and secure your spot at Echelon Philippines 2024!

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Tech startups in Southeast Asia raised a total of US$142 million in venture funding across 25 rounds in August 2024, a 9 per cent rise over the previous month.

However, on a yearly basis, the funding dropped 39 per cent.

Seed funding rounds (13) formed the bulk of the deals in August 2024, followed by early-stage (11) and late-stage (1) rounds.

Also Read: Healthtech, edutech dominated SEA’s funding scene in past 5 years: Tracxn

Syfe reported the largest fundraising with US$27 million. The other major deals were TransTRACK (US$12 million); First Circle (US$8.6 million); Aevice Health, Aprisium, and SleekFlow (US$7 million each); Dimuto (US$5.9 million); and Growsari (US$5 million).

Cocoon Capital and SEEDS Capital were the most active investors in August.

See the infographic below for details:

 

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Data courtesy: Tracxn.

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A couple of weeks ago, I was chatting with the CEO of a VC firm who asked me what his portfolio companies should do differently when building their brand reputations. This question came up as we’ve both observed and agreed that most startups don’t do this very well.

There are various reasons why this may be the case — from underestimating the importance of building and nurturing brand reputation, thinking that this is important only when they are at a later stage, deprioritising this critical work due to the lack of funding, to simply not having the time to focus on this.

Here’s what I shared with this CEO:

Every startup, regardless of the stage it is at, needs an integrated and holistic communications strategy. This is particularly so for startups that are planning to raise funds or when they are expanding to new markets. Building a brand reputation takes time, resources, patience, investment and discipline.

Simply put, building a brand reputation that consistently resonates with diverse audiences and stakeholders is a full-time job. It is not something that can be hurried or done on the fly.

Also Read: Building trust through partnership: How collaboration enhances reputation

A strong communications strategy ensures consistent, clear, and compelling messaging that are needed to build and nurture reputations.

It can help with:

• Building and establish the startup as a credible and trustworthy entity in the eyes of investors. This involves clear and consistent messaging that aligns with the company’s vision, mission, and values. This also reminds them that what they claim should be translated into their actions.
• Ensuring that the startup’s message is tailored to different stakeholders (e.g., investors, customers, partners). This approach increases the relevance and impact of the communications, making it more likely to resonate with potential investors.
• Investors are not just interested in numbers; they want to know the story behind the startup. A communications strategy helps in crafting a compelling narrative that speaks about the startup’s reason for existence, its unique value proposition, market potential and growth strategy.
• Ensuring that the startup’s messaging is communicated consistently across all its audience touch points – eg website, social platforms, interviews and other media engagement, speeches, investor pitch docs, job portals, in-app / in-store, newsletters,  presentations, etc. This consistency reinforces the startup’s brand and message, reduces confusion and in the process, making it more memorable to their key audiences.
• Having a well-planned and ready-to-go crisis communications strategy, ensuring that the startup can effectively manage any negative publicity or challenges that arise, thereby protecting its reputation and investor confidence.

As Warren Buffett very succinctly reminded his top managers across Berkshire Hathaway’s 80+ subsidiaries in 2010, “We can afford to lose money – even a lot of money. We cannot afford to lose reputation — even a shred of reputation.” To him, reputation is, and always will be, the cornerstone of a successful business.

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Malaysia’s financial group Kenanga, through a fund managed by its asset and wealth management arm Kenanga Investors, has led an undisclosed investment in Singapore-based alternative lender Helicap as part of its Series B round in exchange for an 8 per cent stake.

Saison Capital also co-invested.

Subsequently, Kenanga will increase its stake to approximately 10 per cent, making the group the largest institutional investor in Helicap.

Also Read: Helicap joins hands with Bank Danamon to support Indonesia’s alternative lending industry

The collaboration will integrate Helicap’s strengths in private credit with Kenanga’s operational capabilities.

“Our enhanced partnership with Helicap will enable us to tap into its global network as a source of offshore capital as well as to facilitate deal co-origination and syndication efforts in both Singapore and Malaysia. Ultimately, we believe this will provide a strategic base for Kenanga Group to build further cross-border collaborative partnerships and capitalise on the dynamic growth in the region, as well as the rising income and affluence among Southeast Asian investors,” Kenanga Investors Executive Director and CEO Datuk Wira Ismitz Matthew De Alwis said.

Started in 2018, Helicap is a private investment platform specialising in alternative lending in Southeast Asia. It connects global investors to private debt opportunities in Southeast Asia.

Helicap has raised more than S$20 million in paid-up capital and deployed almost S$500 million worth of capital with its in-house data analytics expertise. It has indirectly served more than 5 million MSMEs and individuals.

The company’s other backers include Japanese Temasek-backed alternative investments firm Tikehau Capital, PhillipCapital, East Ventures, Access Ventures, Voveo Capital, and SoilbuildGroup Holdings.

Also Read: Malaysia’s Kenanga invests US$7M in CapBay’s P2P Islamic financing platform

This investment builds upon Kenanga’s digitalisation initiatives, following its investments in Rakuten, CapBay, Tokenize Malaysia, and Merchantrade. The deal follows the launch of Kenanga Investors’ latest product suite, the Kenanga Alternative Series, which was marked by the introduction of the Kenanga Alternative Series: Income Opportunities Fund in July 2024. It feeds into the Helicap Income Opportunities Fund, an open-ended Asian private credit fund.

Established over 50 years ago, Kenanga Group is a financial group in Malaysia with extensive experience in equity broking, investment banking, treasury, Islamic banking, listed derivatives, investment management, wealth management, structured lending and trade financing. Its products include Malaysia’s fully online digital stockbroking platform, Rakuten Trade, and a fully AI robo-advisor, Kenanga Digital Investing.

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Malaysia’s state-backed Cradle Fund and Indian government-owned Invest India has established a strategic partnership to boost startup ecosystems in both countries.

According to the Ministry of Science, Technology, and Innovation (MOSTI), the two organizations have signed a Letter of Cooperation (LOC) to create the India-Malaysia Startup Alliance (IMSA) through Invest India’s Startup India initiative.

This alliance seeks to strengthen the collaboration between tech startups in both nations, leveraging India’s flagship Startup India program to encourage innovation and entrepreneurship. Startup India promotes foreign investment and supports economic growth.

Also Read: Cradle Fund, VentureTECH to provide comprehensive support system for Malaysian startups

MOSTI Minister Chang Lih Kang emphasized that the partnership aligns with Malaysia’s 2030 goal of becoming a top 20 global startup ecosystem and opens opportunities for Malaysian startups in India’s large market, while Indian startups gain access to ASEAN markets through Malaysia.

Cradle’s Group CEO, Norman Matthieu Vanhaecke, highlighted that this first-ever alliance will foster a stronger tech startup connection between the two countries. Over the next year, IMSA will focus on knowledge sharing, capacity-building sessions, and startup matchmaking programs. Malaysian and Indian delegations will also participate in key events like Startup Mahakumbh 2025 and the ASEAN-India Startup Festival 2025 in Kuala Lumpur.

These efforts are expected to drive close to MYR 100 million (US$23.09 million) in investments and commercial contracts between ASEAN and India, connecting startups with venture capitalists and industry stakeholders.

Recently, Cradle Fund announced a strategic collaboration with state-owned impact investor VentureTECH to foster structured discussions between fund providers across government and private sectors.

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Zed, a credit-led neobank, recently introduced the Philippines’ first credit card without foreign transaction fees, interest charges, or annual fees. This marks a significant step in transforming the local credit landscape.

Along with this launch, Zed opened an early access programme via a waitlist, which has attracted over 20,000 sign-ups within two weeks. This initiative, led by Stanford engineers and Y Combinator alumni Danielle Cojuangco Abraham and Steve Abraham, is designed to make credit products more accessible to Filipinos, particularly Generation Z.

A recent TransUnion Philippines study highlights the urgency of this innovation. While 94 per cent of Gen Z respondents acknowledged the importance of credit for achieving financial goals, only 35 per cent reported having adequate access to such products. Zed seeks to close this gap by offering a next-generation credit card specifically tailored for young, high-income individuals with limited credit histories, addressing a key financial need within Southeast Asia.

“Almost 30,000 people have signed up organically for our waitlist since we announced it … We have not spent money on marketing or user acquisition to date. This is a testament to how hungry this market is for a financial services company obsessed with the customer experience,” co-founder Danielle Cojuangco Abraham told e27 in a past interview.

“We see a significant opportunity in credit cards and will be focused on our single product for the foreseeable future. But obviously, our approach of being obsessed with the customer experience and leveraging technology for young, prime equivalent customers can be extended to other products in financial services.”

Also Read: Will digital banks take off in the Philippines?

Digital banking in the Philippines

The digital banking landscape in the Philippines presents significant potential, driven by the country’s young, tech-savvy population and the government’s push for financial inclusion.

With over 70 million active internet users, digital banks have a vast, underbanked market to tap into, especially in rural areas where traditional banking infrastructure is lacking. The rise of fintech has already demonstrated the demand for convenient and accessible financial services in the country.

Key to the success of digital banks in the Philippines is their ability to bridge the gap between the unbanked and formal financial systems. By leveraging technology, they can offer lower fees, faster transactions, and a more user-friendly experience than traditional banks.

This shift could lead to greater financial inclusion, empowering individuals and SMEs to access credit, savings, and investment products previously out of reach. Furthermore, digital banks can harness data analytics and AI to provide personalised services, enhancing customer satisfaction and loyalty.

As the Bangko Sentral ng Pilipinas (BSP) continues to promote the growth of digital financial services, more players are entering the market, fostering competition and innovation. This creates an exciting prospect for the future of banking in the country, with digital banks positioned to lead the way in modernising financial services.

Also Read: UNOAsia secures US$32.1M to provide digital banking services in Philippines

So, how exactly does Zed plan to seize these opportunities? How do they plan to create a long-term impact in the Philippines?

To find the answer, join us at Echelon Philippines 2024 for an exclusive fireside chat on Leveraging Silicon Valley networks: Zed’s path to growth and the long-term impact on the Philippine ecosystem.

Do not miss this rare opportunity to hear from Danielle Cojuangco Abraham and Steve Abraham, Co-Founders of Zed, as they share their journey of scaling a startup through the power of Silicon Valley connections. Moderated by Thaddeus Koh, Co-Founder of e27, this session will offer invaluable insights for founders, investors, and tech enthusiasts on how global networks can accelerate growth and shape the future of the Philippine startup ecosystem.

Reserve your seat now and join the conversation shaping the future of tech in the Philippines! See you at SMX Convention Center Manila on September 26-27, 2024.

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Image Credit: Zed

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In the current business environment, startups are increasingly expected to incorporate Environmental, Social, and Governance (ESG) principles into their operations. The growing awareness around sustainability and social responsibility means that startups are not only evaluated by their financial performance but also by their impact on society and the environment.

As emerging companies with the potential to disrupt industries, startups have a unique opportunity—and responsibility—to set new standards for responsible business practices. This shift is not merely a trend but a necessary adaptation to a world facing significant environmental and social challenges.

The example of Quest Ventures, a venture capital firm that has integrated ESG principles into its operations, offers insights into how startups can effectively engage with these important issues and the importance of doing so.

The imperative of corporate purpose and social responsibility

At the heart of any successful startup is a well-defined and compelling corporate purpose. In today’s business landscape, startups must go beyond the pursuit of profit to define a purpose that encompasses social responsibility. This commitment to a broader mission can be a powerful catalyst for long-term success. While financial returns remain essential, startups that align their business models with societal goals often find themselves better positioned for sustainable growth.

For instance, Quest Ventures has placed a strong emphasis on initiatives that promote financial inclusion, gender equality, and access to healthcare and education. This focus on social impact extends beyond altruism—it reflects a broader understanding that businesses are part of the societies in which they operate. Startups that adopt a similar approach can reap significant benefits. First, they can attract socially conscious investors who value long-term impact over short-term gains.

Second, a strong commitment to social responsibility enhances brand reputation, making the startup more attractive to customers, employees, and partners. Finally, a well-defined social purpose can serve as a guiding principle, helping startups navigate challenges and capitalise on opportunities in a rapidly changing world.

Building a sustainable business model

Incorporating ESG principles into the business model from the outset can provide startups with a competitive advantage. Quest Ventures, for example, manages a diverse portfolio that includes companies operating in e-commerce, software/AI, and fintech. By integrating ESG considerations into their investment strategy, the firm has ensured that sustainability is a core aspect of the companies they support.

Also Read: Kuala Lumpur: The Silicon Valley of Malaysia

For startups, this implies that focusing on ESG can lead to better risk management and resilience. Through prioritising ESG from the outset, startups can build resilient business models that are better equipped to withstand market fluctuations and regulatory changes. In addition, startups that prioritise ESG are likely to attract investment from funds that value not just financial returns but also the broader impact of their investments. This can lead to a more stable and supportive investor base, which is crucial for long-term growth.

Responsible investment and long-term value creation

Startups can benefit from adopting responsible investment practices early on. Quest Ventures’ commitment to responsible investment, as demonstrated by their adherence to the United Nations-supported Principles for Responsible Investment (PRI), highlights the importance of considering ESG factors in decision-making processes. For startups, this approach can lead to more sustainable and long-term value creation.

Aside from avoiding harm, responsible investment is about actively seeking opportunities that contribute to positive societal and environmental outcomes. Startups that align with responsible investment principles are more likely to build businesses that are both profitable and resilient to future challenges.

Quest Ventures’ pragmatic approach to ESG—focusing on better risk-adjusted returns while integrating ESG factors into its operations—is a testament to how startups can achieve both financial success and positive impact. This approach can help startups build trust with investors, customers, and employees, which is essential for sustainable growth.

Environmental stewardship as a strategic priority

In an era where environmental concerns are increasingly at the forefront of public consciousness, startups must recognise the importance of environmental stewardship. Quest Ventures has developed robust criteria for evaluating the environmental impact of potential investments, ensuring that its portfolio companies align with its sustainability goals. This proactive approach to environmental stewardship is particularly relevant for startups, which often have the agility and innovation to pioneer new sustainable practices.

Adopting environmentally sustainable practices is a strategic advantage for startups. Companies that prioritise environmental sustainability are better positioned to meet evolving consumer demands, navigate regulatory changes, and mitigate risks associated with climate change.

Also Read: Investing without ESG data? Here’s why you’re missing the full picture

Quest Ventures’ ongoing engagement with its portfolio companies to encourage the adoption of sustainable practices highlights the importance of continuous improvement and adaptability in this area. Additionally, startups that prioritise environmental stewardship can contribute to the broader effort to combat climate change, which is increasingly becoming a factor in investment decisions.

Social responsibility as a cornerstone of success

Social responsibility is another critical component of a successful ESG strategy. This encompasses the commitment to uphold human rights, promote fair labor practices, and foster diversity, equity, and inclusion (DEI). Quest Ventures’ dedication to these areas reflects a broader trend in the business world where social responsibility is increasingly seen as essential to long-term success. These principles extend beyond ethical considerations—they are fundamental to building a strong, cohesive, and motivated team capable of propelling a startup forward.

For startups, this means that investing in social responsibility can lead to a more engaged and productive workforce, stronger relationships with customers, and a more supportive community. Startups that prioritise social responsibility also have an edge in attracting and retaining top talent, as employees increasingly seek out companies that align with their values. Furthermore, social responsibility can enhance a startup’s reputation, leading to stronger brand loyalty and customer trust. 

The role of strong governance in sustainable growth

Good governance is essential for startups, particularly as they grow and scale. Quest Ventures has established governance principles that promote accountability, transparency, and ethical behaviour across all levels of their organisation. Startups can learn from this approach by implementing strong governance practices early on, which can help them navigate the complexities of growth and scaling.

Apart from compliance, strong governance also entails creating a framework that supports sustainable business practices. Startups that prioritise governance are better equipped to build trust with investors, customers, and employees. Consequently, good governance can help startups avoid potential pitfalls and make more informed decisions, which is crucial for long-term success.

Journey forward: The role of startups in shaping the future

Startups have a pivotal role in shaping the future of business and society by integrating ESG principles into their operations. By embracing ESG, startups can achieve financial success while contributing meaningfully to a more sustainable and equitable future. As the business landscape continues to evolve, startups that prioritise ESG will be better prepared to navigate challenges, seize new opportunities, and create a lasting impact.

Quest Ventures’ commitment to driving positive change and fostering sustainable development serves as a beacon for startups aspiring to lead with purpose and responsibility. This approach sets the stage for the emergence of responsible and forward-thinking businesses that will define the future.

Read more about Quest Ventures’ ESG Progress in here.

Co-authored by Linh Ha (Senior Analyst), and Amanda Chan (Summer Analyst) and edited by Jazlynn Quek (Summer Analyst) at Quest Ventures.

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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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Malaysia’s connected roadside assistance solution provider, Bateriku, has raised US$7.4 million (RM34.7 million) in its Series B funding round from KWAP, Gobi Partners, SBI Capital, and VentureTECH.

The Selangor-based firm will use the money to expand across Malaysia as well as Southeast Asia, with Indonesia and Singapore in the first phase.

“This investment will fuel our mission to transform roadside assistance and reshape the automotive ecosystem,” said CEO Azarol Faizi.

Also Read: Malaysia’s pension fund KWAP invests in Antler, Lapasar, Vynn Capital, Bateriku

Established in March 2014, Bateriku.com began as an on-demand car battery replacement service. The startup has now evolved into an ecosystem that connects car users with roadside assistance, trusted workshops, an auto parts marketplace, and ancillary services.

Bateriku.com’s extensive network includes nearly 200 Pitstop outlets across Malaysia and its first international outpost in South Jakarta, Indonesia. Its ecosystem comprises over 1,000 trained gig technicians (BHero), 78 entrepreneurs (BPreneur), and close to 3,000 workshop and auto part partners (BBuddy), all coordinated through a 24x7x365 contact centre that connects customers to the nearest service providers.

The firm employs 382 people and has built its ecosystem by training nearly 1,000 gig mobile technicians (BHeroes), developing 78 entrepreneurs (BPreneurs), and onboarding approximately 2,000 car workshops (BBuddies).

Bateriku provides centralised training to internal and external parties through Akademi Bateriku – a training institution endorsed by the Department of Skills Malaysia (JPK) and the National Dual Training System (SLDN) under the Ministry of Human Resources of Malaysia.

In 2022, the company launched Akademi Bateriku to provide reskilling and up-skilling programmes for automotive professionals within its ecosystem. To date, nearly 2,000  Malaysians have benefitted from this.

While the battery business remains at the heart of Bateriku.com’s operations, environmental sustainability is a core priority, says the company. Its’ Go Recon Save The World’ initiative focuses on reconditioning and recycling batteries, ensuring they are reused, repaired, or responsibly recycled. This initiative supports Bateriku.com’s nationwide warranty and after-sales programmes, with non-reconditionable batteries processed by licensed smelters approved by the Department of Environment (DOE).

Also Read: Antler’s Southeast Asia focus: Nurturing the next wave of AI, fintech startups

“To give some perspective, approximately 500,000 car batteries are being replaced every month in Malaysia, which indicates roughly 10,000 tonnes of used batteries are being disposed of each month. Bateriku.com collects slightly less than 1,000 used car batteries every month from our customers across the nation. It’s our responsibility and in our best interest that our customers are educated on the impact of properly used battery disposal on the environment, particularly through our ‘Go Recon Save The World’ initiative,” Faizi added.

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Singapore-based SleekFlow provides an omnichannel conversational AI suite. An all-in-one platform, it enables businesses to craft “seamless”, personalised customer journeys across popular messaging channels like WhatsApp, Instagram, live chat, and more.

Last month, SleekFlow raised US$7 million in a Series A+ round led by South Korean VC firm Atinum Investment to fuel global expansion and advancements in AI technology.

e27 spoke with SleekFlow’s founder and CEO, Henson Tsai, to learn more about its products and expansion plans

What specific factors attracted Atinum and other investors to SleekFlow? What is the synergy here?

Our core product, the omnichannel conversational AI suite, should be one major factor. Conversational AI is a high-ceiling market ready to scale internationally, and it is in demand across industries, whether for sales, support, or marketing.

Besides, among our counterparts, SleekFlow is one of the Series A startups present globally and has set up international offices across different countries, including Singapore, Hong Kong, Malaysia, Indonesia, the UAE and Brazil.

Atinum Investment invests in growth-stage startups in sectors like deeptech and healthcare. It has backed some famous startups in Asia, such as the ride-hailing giant Gojek and the travel platform Klook.

Also Read: Be adaptable and willing to challenge your previous beliefs: Henson Tsai of SleekFlow

Their Atinum Growth Investment Fund 2023, with US$624 million, aims to allocate 15-20 per cent of this fund to international investments, with approximately 70 per cent of that going to Southeast Asian startups.

As we have already expanded into Southeast Asia, we can see the synergy in our business strategy for global expansion.

With this new funding round, SleekFlow has raised a total of US$15 million. How will the additional funds be allocated between global expansion and AI tech innovation?

The new round of funding will accelerate SleekFlow’s global expansion plans, including further penetrating Southeast Asia (SEA) and the Middle East and tapping into European countries.

Funds will also be invested in AI tech innovation (including analytics and building marketing flows) and channel expansions (including calls and emails) to better serve our growing customer base worldwide.

Could you elaborate on your strategy for entering new markets like Southeast Asia, the Middle East, and Europe? Which regions are you prioritising? Are there any specific partnerships or collaborations in these new markets that you’re exploring to facilitate your expansion?

Taking the Middle East as an example, we started tapping into the market solely through digital marketing channels, as we had inbound leads from the very beginning.

Then, we started investigating the market and trying to verify it, and we assigned a market launcher from Hong Kong to fly to Dubai to start building good use cases with customers on the ground.

We saw good tractions from local big retailers and successfully built the very first good use case with the reputable L’Occitane brand under the Chalhoub Group, subsequently kicking off SleekFlow’s market expansion into the Middle East.

How important is localisation in your global strategy, and how do you approach it?

Localisation is crucial in our global strategy for many reasons. One vital strategy in our localisation approach is by tailoring our products and services.

Different regions have unique preferences and needs. Therefore, we need to resonate our products with local markets as well as build trust and engagement with customers. Our approach to localisation includes:

• Adapting to the local languages of the markets.
• Having customised offerings (from sales services and products to customer support) tailored to each market.
• Setting local team support for customers and collaborating with local businesses and influencers to enhance credibility and reach.

Another vital step in localisation that we are undertaking is being locally relevant for better market penetration.

For example, in the UAE market, we focus on understanding ways to cater to retail, as there’s a huge demand for enhancing a smooth retail-to-online shopping experience. In Indonesia, social commerce is booming, so we work with more e-commerce businesses there. By prioritising localisation, we aim to foster deeper connections with customers worldwide.

You mentioned planning a Series B Fundraising in the next 12 months. What milestones do you aim to achieve before this next round of funding?

Some important business metrics include achieving ~ a 100 per cent revenue increase and increased ARPU (average revenue per user) by building more advanced features.

SleekFlow plans to offer fully automated sales and support journeys in voice, calls, and emails. How will these innovations improve customer engagement across different industries?

SleekFlow’s fully automated sales and support journeys in voice, calls, and emails improve customer engagement across different industries. Businesses can further improve customer engagement through:

24×7 availability: AI Automation allows companies to engage with customers at any time, which is particularly beneficial for industries like e-commerce, healthcare, and travel, where customers may need support outside regular business hours. This leads to higher customer satisfaction and a more personalised experience.

Improved efficiency and scalability: By automating repetitive tasks such as answering FAQs, booking appointments, or processing orders, businesses can handle a higher volume of interactions without compromising on quality. This is crucial for industries that experience high demand, like retail or tech support.

The conversational AI market is projected to grow significantly in the coming years. How does SleekFlow differentiate itself from competitors in this rapidly expanding market?

Our conversational AI solution is built for companies of all sizes to leverage AI on a daily basis. On average, SleekFlow users use the platform around four hours per day, reflecting its vitality as part of the business.

Also, compared to our competitors, we have a stronger international presence and support wider markets. Our product is ready for a wider use case globally with localised integrations.

With the conversational AI market expected to reach US$49.9 billion by 2030, how do you see the customer engagement landscape evolving?

Taking the US as an example, in the past, shopping mostly happened on a platform. This has evolved with more shopping actions (booking, making an appointment, purchase) facilitated through conversations, no matter which messaging channels are used. This is how the customer engagement landscape will evolve.

Also Read: Navigating the AI landscape in 2024: Why there is an urgency for enhanced governance

As AI technology becomes more sophisticated, businesses will increasingly leverage AI-driven tools to create personalised, responsive, and seamless customer experiences across multiple touchpoints. We are expecting some key developments in the customer engagement landscape, which include;

Omnichannel engagement: With the rise of conversational AI, customer engagement will become more integrated across various platforms—social media, chatbots, voice assistants, and even in-store interactions. Customers will enjoy a consistent experience regardless of how they choose to interact with a brand.

In 2022, SleekFlow’s platform enabled 32 million WhatsApp messages for over 5,000 customers across seven countries, boosting sales converted with chat by 3x. This only proves that businesses are increasingly embracing the growth of omnichannel engagement due to the overall transaction experience and the ROI of the business.

Human-AI operations/synergy: While AI will handle routine queries and tasks, human agents will focus on more complex and emotionally charged interactions. This mode of operation/synergy will elevate the quality of customer service.

AI requires training. To continuously improve AI, it requires a lot of data and integrations. SleekFlow’s software is an omnichannel suite with high integration flexibility via the Flow Builder feature, which fosters AI training.

In the future, SleekFlow will continue to serve as the backbone for all merchants’ conversational workflows, enabling an end-to-end purchasing cycle—from booking appointments to purchasing.

What are the key challenges you anticipate as SleekFlow expands globally and continues to innovate?

As SleekFlow expands globally, we’re anticipating some key challenges that include;

Resources/logistics management: Scaling operations globally demands efficient resource allocation in vital areas such as workforce management, logistics, and tech infrastructure.

Talent acquisition: Finding and retaining skilled talents in new markets can be competitive and challenging.

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Image Credit: SleekFlow.

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Southeast Asian angel investor club AngelCentral today announced its third annual Angel Investor Behavioural Survey Report for 2024, revealing that 80.6 per cent of surveyed angel investors in the region express optimism about the startup ecosystem over the next five to 10 years.

The report also stated that twice as many angels reported gains on their overall portfolios compared to those who have experienced losses.

Additionally, over 36 per cent of angel investors are new to the scene and have opportunistically started their activities in the last two years, demonstrating a continued influx of interest even amid a challenging funding environment.

The report revealed that many angel investors have adapted to the market’s volatility and valuation shifts by implementing various risk mitigation strategies.

Seventy-four per cent reported overall portfolio diversification beyond startups, with most investing less than 10 per cent of their assets in this space. Furthermore, 61.1 per cent are leveraging syndicates to enhance peer learning and validate investment opportunities, while 26.4 per cent have reduced their ticket sizes for each angel investment.

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“I am pleasantly surprised and happy with the maturity of our angel investors. Rather than making knee-jerk reactions
to the market’s gyrations, ASEAN angels have remained focused on the long-term growth story of the startup space and are also actively mitigating their risks,” shared Huang Shao-Ning, Chief Angel at AngelCentral.

“We see similar trends within our club, where most of our member angels now prefer to invest with smaller ticket sizes and via syndicates. Although our total club funding this year remains the same as in 2023, we are witnessing a record influx of new angels joining our club in the past six months.”

The report stated that when evaluating startups for investment, angel investors prioritise potential business opportunities and the strength of the founding team. They also consider founders’ ethical beliefs a common deciding factor.

Interestingly, 30.6 per cent of respondents are new to angel investing with less than two years of experience. The profile of the angel investors remains unchanged, with more than 80 per cent being men in their 40s to 50s who work in a corporate role or who are business owners.

This year’s survey gathers insights from over 70 Southeast Asian angel investors regarding their angel investments. The survey aims to understand the evolving perspectives and strategies of angel investors and provide valuable insights into their investment approach, evaluation processes, returns, and overall mindset.

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The survey defines angel investors as individuals who invest personal money, time, and networks into early-stage companies that are typically in the initial 12-36 months of their operations.

The investment can be made directly (the angel becomes a direct shareholder of the investee company) or indirectly (the investment is syndicated via a special purpose vehicle or informally via another person’s name).

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