A recent report by DealStreetAsia and Enterprise SG revealed that, despite the slowdown, Singapore continued to dominate equity funding in Southeast Asia (SEA) throughout 2022. It topped the position with 56.3 per cent of deal volume, followed by Indonesia at 22.4 per cent.

This is certainly good news for startups in these countries, but it also leads to another pressing question: How about the rest?

For startups that are based in SEA countries apart from Singapore and Indonesia, this might feel like a double attack. In addition to figuring out how to build a sustainable business, they also have to deal with the concern that there are not as many funding opportunities available for them.

This is why e27 reaches out to four startups in Malaysia and Thailand to understand how they plan to deal with this situation. We learn about the milestones that these companies have achieved, the strategies that they use to seize opportunities, and the next big thing that they want to achieve.

Here is the edited excerpt of the interviews.

Ryuji Wolf, CFO, Sunday, Thailand

Despite having all its shareholders based in Singapore, insurtech company Sunday started out in Thailand in 2017 before expanding to Indonesia last year. The company focuses on key insurance verticals: Health (being the company’s largest focus, Sunday mostly caters corporations), auto (particularly EVs), and gadgets (as the company is an official insurance partner of telco giant dtac).

Also Read: Thai startup GoWabi aims to be the go-to platform for all health and wellness services in SEA

“hese segments are where we are very focused on even though the markets are challenging right across the board. These are verticals that have continued to grow quite meaningfully,” he explains. “Particularly on the health side, if anything, from our perspective, COVID-19 has only increased awareness right around health insurance. So, we have many corporate clients that are coming to us, and they’ve never had employee benefits or health insurance for their employees before.”

Sunday credits their ability to survive through the challenging time to their timely Series B funding round.

“Some companies are better positioned than others. Now, we did our Series B towards the end of 2021. So, I think we were pretty well-positioned. This was before the markets really started to dry up. A lot of the companies that were able to access the markets before 2022 are probably better positioned through 2022 and going into 2023,” he says.

Wolf also shares the things that the company has done differently.

“What we’re doing now is … taking a step back or two and looking at our business, each of our operations, each of our entities across the two markets that we are operating in (Thailand, Indonesia). I think we’re being a lot more diligent, thoughtful, and strategic in terms of how we deploy our capital. The great thing is that in the underlying market that we operate in, it’s just continuing to grow,” he explains.

“This is an ongoing exercise that we do and I would hope many companies are doing this as well: Looking at your capital base and identifying ways to further extend the longevity of that capital base. So, what that means is just the continued exercise of optimising your operation. I’m not saying it’s cutting people or getting rid of some of your talent. At Sunday, we haven’t gone through that at all, and we don’t have any plans to get rid of our talent.”

Sharala Devi Balakrishnan, CEO, Center of Applied Data Science (CADS), Malaysia

According to Balakrishnan, the recession is a trying time for entrepreneurs as it can impact businesses in several ways. On the other hand, she also stated that digital business transformation activities have boomed over the years and accelerated even further with the recent pandemic.

Also Read: How GHARAGE leverages resources of its German parent to help Asian startups expand into Europe

“The good news is CADS.AI has been at the forefront of driving digital transformation and accelerated enterprises into Data-Driven Organizations by empowering data-driven decision making, expanding workforce data literacy and enhancing analytics for hiring. While the CADS AI platform can be a valuable tool for businesses during tough economic times, it’s important to note that raising funds for tech companies like CADS is challenging during a recession. Investors are more cautious and averse to investing during uncertain economic downturns,” she says.

“As an entrepreneur, we seek out new funding sources or capital to keep our businesses afloat during a recession. This includes reaching out to investors, exploring government funding programmes, or considering alternative financing options.”

Balakrishnan says that having a strong management team is particularly important. “The CEO ensures the company’s financial health, identifies new growth opportunities and builds relationships with investors and stakeholders. The day-to-day operations and building of the platform must continue without interruption. While they are busy building the business, I am focused on securing funding and participating in programs like 100 Soonicorns to accelerate the company’s growth.”

What opportunities do they plan to seize this year?

“Many tech companies have been forced to make difficult decisions, including laying off employees. In some cases, these layoffs have been significant, with some companies letting go of 10% or more of their workforce,” she says.

“With Asia’s two billion workforces, there is a tremendous opportunity for the CADS AI platform, a SaaS solution, to create a data-literate workforce in this region. Skill mobility and data literacy are two key trends expected to shape the future of the workplace in 2023 and beyond. According to a study by LinkedIn, data-related skills are in high demand, and workers with these skills have an 87 per cent chance of being employed and retaining their jobs in the company. Organisations prioritising skills mobility and data literacy will be better positioned to attract and retain top talent and remain competitive in a rapidly changing business environment.”

Also Read: These 15 startups might just be part of this year’s TOP100

Kuna Kathigesan, Group CEO of the Commerce.Asia Group of Companies, Malaysia

Kathigesan dubs the pandemic as a “shot-in-the-arm” for both the e-commerce industry and the Commerce.Asia Group of Companies.

“Our Commerce.Asia Group, in turn, successfully rode on the e-commerce trend of it becoming mainstream and capitalised on the upward trajectory. Today, we believe that ‘the sky’s the limit’ which is why we are hiring aggressively, investing in R&D and also collaborating with our sibling group Netccentric-Nuffnang for growth marketing, so that we realise another record breaking year for Commerce.Asia. In 2021, we posted group gross merchandise volume (GMV) of US$1.5 billion (MYR6.7 billion) throughout Malaysia, Thailand, and Vietnam through more than over 92,000 active sellers,” he details.

“The reality is that, today, consumers have become more discerning. They are more focused and cautious when buying now, mainly due to being less dependent on online sales unlike during pandemic. Most of them are already working from office and most of consumer products can be bought while they are back from work, or when out shopping with their families. Furthermore, being ‘locked up’ for two years has its psychological impact. People just want to go out and buy their stuff and also window shop. This could be impulsive. In other words, ‘revenge shopping’ has emerged in a big way.”

He predicts that in essence, the growth of online sales will start picking up somewhere in H2 2023, “since we can see month-on-month growth of online sales has started picking up. We saw some categories had a significant drop during the pandemic but is now regaining its momentum.”

When speaking about the strategies that the company is using to seize opportunities during this situation, Kathigesan highlights Commerce.Asia’s ‘end-to-end’ e-commerce ecosystem and how it works with each other.

“With the latest digital innovations and technologies, I also aim to take Commerce.Asia to the next level such as through Web 3.0 and blockchain technologies,” he says.

“And with Tik Tok and Social Commerce growing among Gen Z, Commerce.Asia is also in a position of strength through Nuffnang Live Commerce with its 20,000 active influencers. This enables our joint venture with the Nuffnang Group to enable fully integrated and seamless end-to-end live commerce experiences with their experience and strength of social influencer and content marketing. This platform is API integrated with Facebook and Tik Tok to provide a seamless user interface from live video production and streaming to automated order management, online payment and fulfilment.”

Also Read: Successful business models for tech startups in Southeast Asia

It is also working closely with governmental and non-governmental agencies to achieve its goal and agenda.

“The support given by agencies such as MDEC so far is truly overwhelming and we look forward to working longer and closely with them. Not to forget other agencies that we are exploring partnerships and collaborating as well – locally and across the region,” he says.

He also shares more details of the company’s plan for 2023.

“At our end, we are aiming to help them expand their businesses and digital growth to other SEA countries so that our customers continue to grow their businesses regionally and not only confined to the local market while also enabling them with omnichannel capabilities.

We are also fortunate that the Executive Chairman and majority shareholder of Commerce.Asia is Ganesh Kumar Bangah, synonymous with being one of Malaysia’s and the region’s leading ‘serial entrepreneurs’. As a result, we have nurtured a ‘culture of innovation’ within our group – which is why we would continue innovating to help our customers – our ourselves – realise our fullest potential. This includes implementing the latest technologies such as robotics, artificial intelligence, machine learning, advanced analytics and to continue leveraging and capitalising on popular consumer platforms such as TikTok, Facebook, Instagram and others.”

The company also plans to grow its payment gateway (Commerce Asia Payment) and leverage the 20,000 influencers in its network to promote clients’ products.

Also Read: Successful business models for tech startups in Southeast Asia

Keong Chun Chieh, CEO, Ominent Sdn Bhd, Malaysia

Keong Chun Chieh explains IGL Coatings as a brand to a young company that is committed to making a positive impact on the environment and society via our focus on environmental, social and governance principles.

“Our innovative nanotech-based surface modifier coatings for automotive care are designed to not only enhance the aesthetics of vehicles but also reduce their environmental impact by increasing their efficiency and durability,” he says.

For the company, the recession has decreased demands for luxury and non-essential goods, which sadly includes automotive care products.

“This has led to a decrease in sales and revenue for IGL Coatings. In addition to this, supply chain disruption due to the crisis in Ukraine resulted in longer lead times and higher costs for raw materials. These factors have negatively impacted the growth of IGL Coatings,” he explains.

But the CEO is optimistic that the situation will get better.

“When the economic situation is gloomy, the best thing to do is to focus on our foundation and increase collaboration. IGL Coatings will do this by increasing focus on our R&D work to expand into new verticals, improve cost efficiency and explore potential partnerships and collaborations with other companies,” he says.

“During a recession, it is crucial to reach and seek support by asking for help when needed, this is why I decided to participate in the 100 Soonicorns Programs to allow me to learn from peers and challenge my strategy.”

Also Read: Brand new days: How startups can approach growth in a post-pandemic world

What opportunities do they plan to seize this year?

“At IGL Coatings, we strive to expand into new verticals through our focus on R&D. We are proud to announce our exploration into the anti-corrosion market, leveraging our expertise in nanotechnology and dedication to sustainability and ESG principles. The anti-corrosion industry is a rapidly growing market, valued at approximately US$28.7 billion. With our unique nanotech coating, Ecoclear Aegis, we can offer an effective solution for preventing and mitigating corrosion on various surfaces, including metal and concrete. One of our early adopters, Favelle Favco, is among the world’s largest tower crane builders,” he says.

“We are confident that our expansion into the anti-corrosion market will not only contribute to our company’s growth but also create a more sustainable corrosion-resistant world.”

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Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

Image Credit: peopleimages12

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(L-R) GoWabi Co-Founders Vadim Eremeev, Samir Cherro, and Wipawee Wongsirisak

During one of his trips to Bangkok, Samir Cherro had trouble finding good hairdressers. It ignited a spark in him.

“This experience led me to think about creating a platform to help people like me easily find and book appointments with quality service providers,” says Cherro.

GoWabi was launched in 2016 by Cherro (CEO), Vadim Eremeev (CTO), and Wipawee Wongsirisak (Chief Commercial Officer). Cherro previously headed Lazada Philippines, Indonesia, and Thailand, while Eremeev worked at Deal.com.sg (acquired by Catcha Group). Wongsirisak earlier held the account management and sales role at Zalora.

Also Read: Thai beauty e-commerce firm Konvy bags US$10M from Insignia Ventures

Soon after launching the platform called GoWabi, the trio noticed many female users were booking barbers through it. Initially, this surprised them since its barbers were not used to servicing female customers.

It led them to realise that there was a more significant problem in the health and wellness services market and that they needed to expand the offerings to address it. So they added more offerings to the platform.

“We also saw similar successful models in the West. Adapting these models to Southeast Asia would help us tap into the region’s growing demand for digital services. This realisation helped us focus on building a platform that would enable users to quickly discover, compare, and book a wide range of health and wellness services, including haircuts, massages, and beauty treatments,” Cherro explains.

In a nutshell, GoWabi is a SaaS platform and a marketplace that connects beauty, health, and wellness providers with potential customers. The app enables providers to easily list and promote their services, manage their calendars, and gather online reviews — all while offering a comprehensive CRM and POS solution.

“Our USP is that we allow our partners to manage their business from one platform, including a calendar management system for real-time availability, a CRM system to store customer info and history, and a POS system to manage sales and accounting,” Cherro shares.

At the same time, users can discover, read reviews, view prices, and book services through its app and earn cashback through the loyalty programme.

The startup also offers marketing support to its partners through its marketplace and GoWabi Ads. In addition, its integration with third-party platforms, such as Google Maps and LINE Messenger, and online shopping platforms, such as Lazada and Shopee, allows its partners to increase their visibility and easily manage bookings from multiple channels.

“Our e-voucher and redemption systems minimise the risk of no-shows and fraud for both shops and customers,” Cherro says further. For users, the B2C GoWabi app provides over half a million verified reviews with photos and upvotes, along with discounts and cashback on each transaction. “In summary, our unique suite of tools, integration with multiple channels, and comprehensive e-voucher and redemption systems make GoWabi stand out in the market.”

The opportunity for Gowabi is substantial, with over 30,000 beauty, health and wellness providers in Thailand alone. The market size in Southeast Asia is estimated at around US$16.3 billion, with a projected annual growth rate of 6.5 per cent. Indonesia and Vietnam have about 35,000 service providers.

The COVID-19 pandemic was a challenging time for GoWabi, he admits. “The pandemic significantly impacted our business, as it did for many others in the industry. Due to government regulations and safety concerns, most of our service providers had to be closed down, temporarily affecting our revenue.”

However, the company quickly adapted and implemented new strategies to manage the situation. To support its partners, it presold e-vouchers and provided short-term loans to help them with their cash flow.

“Additionally, we turned our empty clinics into COVID-19 test centres with drive-through services at more affordable rates. We also partnered with hospitals to sell vaccines,” he shares. “Post-pandemic, we have seen significant growth in the market as people are now more focused on their health and wellness.”

GoWabi’s main rivals in Thailand are ClassPass, which primarily focuses on the fitness category, and Klook, a travel platform that also provides health and beauty services. Globally, Booksy, Fresha, and Vagaro are the key players.

“We plan to expand to other markets in Southeast Asia,” he says. Before the pandemic, the company had expanded to Indonesia, but unfortunately, it had to close down operations due to the pandemic. “However, with our recent funding, we are now in the process of expanding again and plan to explore other markets in Southeast Asia.”

In October 2022, the startup raised US$5 million in a Series A investment round led by PTT OR. The money is being used to develop its SaaS solution further and expand its reach in Thailand and the regions.

Also Read: Thai oil firm OR, 500 TukTuks launch US$50M mobility and lifestyle fund ORZON Ventures

It is now expanding its SaaS and marketplace combination in Thailand and Southeast Asia. GoWabi has also ventured into home services, such as home massages.

Additionally, it recently launched a membership programme called ‘Spa Pass’, which allows users to purchase a 5-day spa pass and select any shop that has joined the program to receive a service every day.

“Our ultimate goal is to become the go-to platform for all health and wellness services in Southeast Asia,” Cherro concludes.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

The post Thai startup GoWabi aims to be the go-to platform for all health and wellness services in SEA appeared first on e27.

An Italian living in Singapore goes to California…sounds like the start of a joke, but I promise it’s not! I visited Silicon Valley to learn about the startup ecosystem and meet potential partners for the Storya project.

Storya has, like many startups fundraising in H2 2022, struggled to find a lead investor for its seed round. As a result, I recently found myself taking a hard look at the receptiveness of investors in Asia toward a creator economy/AI/diversity-focused project like Storya.

I came to the conclusion that sometimes we may need to test our ideas with an entirely different audience to see where the problem really lies.

Tech and hype

• AI: I can confirm generative AI is the flavour of the month. That being said, I have also been told things move pretty fast here in terms of trends, so the hype may not last. Probably for the best, as we saw how things turned out with Web3.
• Web3: Talking about Web3, that has been a difficult narrative to weave into my pitches. At Storya, we always took a “web2.5” view of where we were headed strategically, but it looks like in the short term, it is just too complex to ask investors in the US or Asia to connect the dots across seemingly disconnected fields like generative AI, blockchain, and even metaverse. Lesson for founders: we gotta keep it tight and focused. There is always time to pivot, test and expand later on.

Fundraising

• Pitching: US investors are very direct with their feedback and make pitches much more conversational, which is awesome for founders that want to test and iterate. This is something that I feel is missing in my experience pitching to investors across Asia. There seems to be a lot more focus on presenting “formally” through slide decks and keeping a tight lid on any feedback from the listeners.

Also Read: Founders Academy: Empowering women entrepreneurs to bridge the gender gap

• Revenue goals: toward the end of last year, facing like many a shutting down of funding, we reduced our round size. Coming here, I now realise that was a mistake: not because bigger is better, but because with smaller tickets come smaller milestones (at least if we want to keep projections somewhat logical!). The investor conversations I have had so far have been clear: raise more but deliver even more, and fast if possible. “Cockroach mode” is a helpful internal strategy to survive, but it should not be a mindset used in fundraising.
• VCs: It is often said that finding the right VC is like getting married. One investor was even more specific, telling me you need at least three dates before getting married! Translation for founders: it’s never too early to start building that relationship, and it will take time to get to the altar…send that email!
• Funding rounds: A very successful founder I met shared that every single round is a hustle game. The ease of raising a first round is not indicative of future success at all, or vice versa. Companies here can raise tens of millions in early rounds and still need to go through hundred-plus investors to find a lead for their next round. It may sound depressing, but it isn’t! It just means founders need to stay in the pocket, focus on the now, and iterate that narrative to find the match that works.

The ecosystem challenge

Silicon Valley has taken a hit from COVID-19 and recent tech layoffs, but that has somehow added to the dynamism of what is happening, perhaps a wake-up call for a very powerful ecosystem that had perhaps gotten a bit complacent. But the opportunities and networks to be built are world-class now as much as ever.

Infrastructure in SF leaves a lot to be desired compared to Singapore/Hong Kong. I frequently found myself in areas without proper internet coverage, and public transportation is lacking and slow (although the San Francisco trams are gorgeous!). A sustainable ecosystem for a new generation of entrepreneurs, especially in a wealthy part of the world like California, should not let this continue to be the case.

More lessons on running a startup for founders

• Metrics, metrics, metrics. Silicon Valley investors are direct and brutal in their feedback, and how well your “product” connects with the “business” part of your startup story is crucial. To that end, be ready to dive deep.
• Storytelling: Founders, be ready for your story to evolve rapidly. Storya will be pivoting soon, building on the incredible wealth of experience we have accumulated in the past year and building an incredible team, vision, product, and community. But also thanks to the engaging and tough conversations of the last 10 days in the US. It makes me so grateful to have come here to learn, connect, and evolve.
• Pivoting feels scary, but a recession is upon us (making fundraising tougher than ever), the creator economy, publishing, and generative AI spaces are evolving very rapidly, and founders need to embrace change, as challenging as it might be.
• I have found on this trip that there can be a route where the initial vision remains and the values are not compromised, but you can learn that the right direction may not be the starting point. For us, it will mean a pivot from a pure B2C play towards a more edutech and B2G-focused approach. More to come on that!

Also Read: Founder’s 3 year journey: Ground up to Tiger Global-backed multimillion-dollar startup

Some broader “life lessons” for founders

On failure

I have had too much fear around the failure of ideas and business models. Perhaps a remnant of my corporate career, or perhaps just an individual trait, where we are willing to put ourselves on the line with a startup, but we are not being efficient enough in acknowledging when it’s time to pivot.

The case study: For us, this issue has taken the monstrous shape of a revenue model (subscriptions for our awesome Storya app readers) that has struggled to take off since we launched it in late November 2022.

The reason was staring at us in the face since day 1: our value proposition is misaligned. As the first AI-backed, end-to-end publishing platform in the world, it is truly authors that get the most value out of Storya, but we were trying to generate revenue from the readers.

The mission to support more diverse and under-represented authors with the best publishing platform in the world does not necessarily mean we cannot ask them to contribute to making our business sustainable.

Embrace failure and the changes that come with that.

On listening

Six months of fundraising will do a (nasty) number on a founders’ focus. I had reached a point before my San Francisco trip where one pitch call blended into the next, and I struggled to extract worthy insights from those conversations. The answer was simple: I had to change the audience.

As founders, we need to be aware of the hub for whatever it is we are trying to build and go there. Physically or virtually. Connect with people you believe are most relevant to you, don’t be afraid, and just pitch. Pitch, pitch, pitch.

There is an audience out there that will speak your “language” and that will start providing feedback that truly makes a difference. This is not about the shortest route to investment. This is about the fastest route to learning. It is worth 100x on any cheque in the long run.

On writing

I am still finding mine. I have worked on Storya for 15 months with a fully remote team, largely relying on Zoom and Slack tools. It has been great, but it is also limiting. Meeting people in person does add a layer of humanity to the process, but it is not always possible. So I am embracing writing for the amazing tool it has always been. A way to organise thought, share a story and connect with people.

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Image credit: Pascal Bernardon on Unsplash

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(L-R) Broom Co-Founders Andreas Sutanto (CFO) and Pandu Adi Laras (CEO) with COO Claussen Sindhuwinata

Broom, an all-in-one automotive SME solutions startup in Indonesia, has secured US$10 million in a pre-Series A funding round led by Openspace Ventures.

MUFG Innovation Partners, BRI Ventures, and existing investors AC Ventures and Quona Capital also joined.

Jakarta-headquartered Broom will use the money to diversify its product offerings and further accelerate dealer inventory turnover.

Established in 2021, Broom provides an end-to-end financial solution for auto dealer inventories. Its flagship service, Buyback, provides dealers short-term working capital through a temporary car sale service with a repurchasing option. This scheme allows dealers to optimise inventory, accelerate turnover, and eliminate non-performing loans.

Over the past year, the company claims to have transacted over US$300 million in inventory through its Buyback scheme and onboarded over 5,000 used car dealers. The gross merchandise value has increased 16x year-on-year.

In addition, it also offers a digital showroom management platform for dealers.

Also Read: Broom nets US$3M to provide financing, digitalisation solutions for Indonesia’s auto dealers

By applying the latest technology to the sector, Broom also plans to develop an intelligence model for assessing car quality and, more effectively, appraising the fair value of vehicles. This cutting-edge approach will provide customers with greater transparency.

Since its inception, Broom has established six branches across Greater Jakarta, Surabaya, and Yogyakarta.

The company also said it aims to double its credit facility from external lenders, building on its US$12 million raise of debt facilities from DBS Indonesia and BRI in 2022.

In February last year, Broom secured US$3 million in pre-seed funding led by AC Ventures. Quona Capital and several angel investors, including Kopi Kenangan’s and Lummo’s co-founders, joined it.

To date, the opportunities provided by the used car industry have remained largely untapped. While Indonesia contributes approximately 30.6 per cent of new car sales in ASEAN, the country’s used-car market is even more substantial.

Used car transactions contribute up to 6x that of new car sales, resulting in a sizable US$65 billion industry. This market is primarily underpinned by the country’s 50,000+ dealerships, which are involved in at least 85 per cent of used-car transactions.

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Singapore-headquartered agritech startup Agros has raised US$2.7 million in pre-Series A funding.

Gaia Impact Fund and Schneider Electric Energy Access Asia led the round.

Seed round investor Wavemaker Impact, Silverstrand Capital, Circle Capital, and PropertyGuru Founder and impact investor Steve Melhuish also participated.

Agros will use the fresh funds to scale in its existing markets, open a third country, strengthen its leadership team and develop an app streamlining the value chain. This will allow it to transform the lives of thousands of farmers while abating millions of tons of carbon emission.

Also Read: Betterhalf nets US$8.5M Series A from Finsight Ventures, Instagram and Dropbox co-founders, others

Founded in 2019, Agros provides sustainable farming solutions for 18 million horticulture farmers across Asia. The company is helping horticulture farmers to decarbonise while doubling their profit through a full-stack solution.

The company’s first two products, Agrosolar and Agrosoil, solve major agricultural problems like fuel dependency and soil degradation. After switching to Agros’s ecosystem, farmers can double their profits from reduced input costs, improved yields, and higher prices from better-quality crops.

The startup enjoys a tailwind from rising fuel and fertiliser prices, encouraging farmers to switch to more sustainable and efficient practices. This resulted in 4x year-on-year revenue growth in 2022.

The company currently works with 1,500 farmers across two Asian countries and has increased farmers’ profits by more than US$1.5 million and decreased up to 5,000 tons of CO2 emission.

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The Web3 panel at Echelon 2022

Last year, at Echelon 2022, a panel discussion on Web3 featuring notable speakers in the industry discussed the direction that Web3 and Web2 companies should take in the future.

“Many years ago, in the tech industry, there was this persistent belief that e-commerce would destroy and replace retail in the heart of customers. But fast forward to 2022, and despite the prevalence of e-commerce and the challenges that retail continues to face, the two industries continue to co-exist. Instead of competing, they ended up complementing and supporting each other,” according to an e27 coverage of the event.

Even back then, we understood that before they can fully embrace and implement Web3 technologies and business models, there are misconceptions to clear and challenges to tackle.

Today, in 2023, we have seen many interesting developments in the Web3 industry. Certainly, we would like to know if our pre-existing ideas about the industry would still be relevant. There are also many new questions regarding the future of DeFi and cryptocurrency, use cases of blockchain, and most interestingly, the rising popularity of Artificial Intelligence and machine learning.

To help answer these questions, Echelon Asia Summit returns this year on June 14-15 to Singapore EXPO to build towards a sustainable and impactful tech ecosystem.

Also Read: DEFED and DeFi: Making it easier to migrate from Web2 to Web3

The event will feature six key themes and tracks:

• Soonicorns and the Future Change-makers of SEA
• Future Sectors and Investment Trends
• Growth and Scaling
• Investments and M&A
• Sustainable Growth and Climate
• Web3

We are now on the lookout for the right speakers for the Web3 key theme and tracks.

An ideal speaker should be a founder of a startup or an investor in the Web3 industry who would share their insights about the future of the industry, and how we can navigate the challenges that we are facing today.

We would also like to hear from Web2 companies who are exploring opportunities in the Web3 field. What have you done so far? What lessons have you learn from it? What kind of support are you looking for? How do you see Web3 benefiting your business?

So, if you are the right person to speak about this key theme and track, or know someone who does, we would like to hear from you. Register HERE and we will get in touch soon.

This is going to be exciting!

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Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

The post Wonderful world of Web3: What is next for this groundbreaking industry? appeared first on e27.

GHARAGE APAC Head Darren Soh (L) with Co-Founder and MD Lennard Niemann

Today, Hamburg (Germany)-headquartered GHARAGE, which works in foresight and intelligence, venture building and venture investing, announced its expansion into Asia. Based in Singapore, Gharage APAC will invest and innovate with early-stage travel and retail startups.

The firm is backed by leading global travel retailer and wholesaler Gebr. Heinemann. It has a portfolio of diverse ventures, including an on-demand airport delivery platform, a web3 community for whisky collectibles and a new luxury retail experience for airports.

e27 spoke with GHARAGE APAC Head Darren Soh about its plans in Asia.

Edited excerpts:

What inspired GHARAGE to expand into the Asia Pacific region, and what are your primary goals for this expansion?

Since 2020, we have primarily been venture-building and investing from Hamburg into Europe alongside Gebr. Heinemann’s headquarters. The group Gebr. Heinemann is operating in global travel retail with a global target group.

In Asia, we note that consumers have diverse and unique needs alongside a different brand environment and tech environment with the fast adoption of tech and innovation. Throughout the last few years, founders in Asia have built some of the fastest-growing and most innovative companies in the travel and retail ecosystem.

Also Read: How travel apps are stirring up wanderlust among youngsters in Asia

Our launch in Asia Pacific allows us to tap and invest in the region’s innovation and bring it to our customers globally. The backing of Gebr. Heinemann may also provide strategic levers for GHARAGE and the founders we work with.

What specific qualities do you look for in the Asian tech startups you invest in, and how do these differ from the startups you invest in within travel and retail in Europe?

The fields, technology, diligence lens and process we apply will not differ fundamentally from the startups we invest in within travel and retail in Europe. However, we expect to see more tech/digital solutions catering to the Asian markets than European markets, where consumer brands are more prevalent.

What are the average ticket size and the number of investments you plan to make in Asia? Do you target any specific markets in Asia?

The average ticket size will vary depending on the stage of the target company; we intend to take non-associate positions with our first cheque in pre-Seed to Series A companies.

We will initially target Southeast Asia and Australia, given the resources that we currently have, but we are open to working with innovative companies in any Asian markets.

How does GHARAGE approach due diligence when evaluating potential investment opportunities in Asia Pacific?

As mentioned, our diligence lens and process will stay within what we use for our European startups. We will evaluate opportunities by conducting diligence on its core fundamentals, founding team, potential return profile and our ability to add value to the company with GHARAGE’s and Gebr. Heinemann’s network and resources.

Also Read: How KKday saved for a rainy day when many travel startups called it a day during COVID-19

We also see that the current landscape is being weighed down by macroeconomic conditions such as rising interest rates and inflationary pressures, making many investors, including us, more cautious. Instead of purely focusing on growth, we will spend more time assessing the companies’ fundamentals and ability to grow sustainably or become profitable in the long run.

How do you see the Asian tech startup ecosystem evolving in the next few years, and what impact do you expect GHARAGE to have on this ecosystem?

We believe that the Asian tech startup ecosystem will continue to mature and churn out more interesting, innovative solutions and technology in the future. We note that an increasingly diverse set of investors have established themselves in Asia to provide capital and support to the startup ecosystem.

With a relatively increasing availability of investors for startups to pick from, the value-add beyond capital that investors bring will become a strong differentiating factor. Our ability to potentially open doors for startups to access a robust global network and ecosystem within travel and retail can help accelerate growth for startups in the relevant verticals and hopefully further spur innovation in the ecosystem.

What sets the firm apart from other venture capital firms in the Asia Pacific region, and how do you leverage your unique strengths to create value for your portfolio companies?

GHARGE is a standalone vehicle that is backed by Gebr. Heinemann. This allows us to make fast and independent decisions for any opportunity. Beyond capital, we also have the ability as a strategic partner to potentially open doors for startups to access a strong global network and ecosystem within travel and retail can help accelerate growth for startups in the relevant verticals.

How does GHARAGE work with its portfolio companies in the Asia Pacific region to help them grow and achieve their goals?

We will support our portfolio companies with our network in Asia and Europe. On a case-by-case basis, we will facilitate potential partnership discussions with our parent company depending on the needs of both parties. We thoroughly understand the difficulties and challenges of startups trying to navigate partnership discussions with large corporates and of corporates trying to work with startups. In these cases, we can function as an enabler to help accelerate adoption and resultant growth.

Also Read: What travel tech can look like for the travel industry’s revival

Given our network and operations across both regions, we possess a significant advantage in being able to help travel and retail companies in the Asia region that are looking to enter European markets (and vice versa).

How do you see GHARAGE’s investments in the Asia Pacific region contributing to the company’s overall growth and success over the next several years?

Travel retail has been a rarer, less disrupted industry in the last few years, but we see more and more innovation. Change in travel and retail is accelerating. We are starting to see brands and companies, especially in Asia, that did not exist ten years ago becoming global champions in their category. Looking at this evolution, we think change and innovation adoption is inevitable.

GHARAGE seeks to bring external innovation to Gebr. Heinemann with the mission to turn travel time into valuable time for global travellers.
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I have been an avid mountain biker for years, but up until 2021, I never experienced how painful a biking emergency could be. But it wasn’t just the pain that I remember most. A year after the accident, I still recall the bitter frustration of being ripped off at a time when I needed help the most.

The beginning of the journey

It all began during one of my regular cycling rides with a friend on a trail in the Bukit Timah area.

For some reason, I messed up a simple roll-down on some rocks, causing me to fall from my bicycle. I dove headfirst into a rock, and the resulting impact cracked my helmet and gave me what was arguably the worst headache of my life.

Both of us were well aware that we were in the middle of nowhere. Since the only way out was down the hill, my friend carried both our bikes while I called the ambulance and walked alongside him.

Also Read: Founders Academy: Empowering women entrepreneurs to bridge the gender gap

But as I arrived at the rest area and waited for the ambulance, a sudden realisation hit me.

Despite the size of an ambulance, I knew that I could not bring my bicycle on board with me. If I left my bicycle without supervision, it may get stolen, and there were no bicycle racks in this wilderness for me to chain my bicycle to. My family was also overseas then and could not help me pick it up. There was no way my friend could push two bicycles several kilometres back to his place in Yew Tee.

A pressing challenge

As such, I started searching online for a bicycle transportation service to courier it home.

With my head still aching from the collision, I managed to send 12 messages to 12 different accounts on Facebook and Carousell. For an hour, I waited for someone to reply, deciding to hold off on calling for an ambulance until I could guarantee that my ride would be safe. Only one company replied.

The person from the transportation company quoted me SG$35 to ferry my bicycle from Dairy Farm to my friend’s place in Yew Tee, which was seven kilometres away. When I told him over the telephone that I was injured and waiting for the ambulance, he decided to charge me an extra SG$20 for this urgent request. This is despite the listing stating that he could come anytime and anywhere at short notice, 24 hours a day.

Given the state that I was in, I agreed, as I had few options if I wanted prompt medical treatment, as well as the assurance that my bicycle would be kept safely.

But less than five minutes later, I got another text from the company stating that they would further increase the rate by SG$15, as my request was “super urgent”. The total cost came to about SG$70. For what would be a short 10-minute trip to transport a bicycle, I would be paying a premium.

I was seeing red, not because of the blood from my wounds but because of the ridiculous price I was quoted.

Despite being in pain, I texted the driver who was assigned to my request. I argued that the rates were not transparent and unfair. He replied curtly: “If you can do better, next time do (it) yourself.”

In some twisted way, his uncaring words served as an inspiration and continue to drive me towards doing things better. I cancelled the pickup order with the transport company immediately.

When the ambulance arrived, and the paramedics patched me up with a bandage around my forehead and a cast for my wrist, I declined their offer to be taken to the hospital.

I signed a form to indemnify the paramedics from any liability. Then, with my functioning right hand, I cycled to my friend’s home while he supported me with his hands on my back.

A doctor later said this was an ill-advised move as I had suffered internal bleeding, which was causing the headaches. I was warded for three days at Tan Tock Seng Hospital and had to undergo multiple scans as well as an operation as, apparently, I had a head injury and suffered from internal bleeding. Despite not remembering much due to the medication, the driver’s text message kept ringing in my head.

Also Read: How to launch collaborations that grow communities: A guide for Web3 founders

Even as a full-time Republic Polytechnic student studying for a business diploma, I believed that I could do better than anything out there.

The becoming of a startup

On my second night in the hospital, I decided to create a bicycle transport service from scratch.

I created a Telegram group of cycling enthusiasts about my idea and my experiences, enlisting from among them a pool of drivers, including my friends.

Through word-of-mouth and sharing amongst cycling enthusiasts, I managed to gain more than 100 members within the first week. I pitched myself to new members as a transport service to connect drivers to cyclists in need via Telegram.

Earning a small commission for this service, I managed to rake in about SG$1,200 in revenue in the first month, which was a morale-boosting sum of money for a polytechnic student like me at the time.

It was also where I first sensed there was a huge unmet demand for bicycle transport in Singapore as it heads towards a car-lite future.

The sheer number of orders to fulfil meant many sleepless nights, and for months, I had been manually connecting drivers to cyclists and vice versa.

So, I learnt the Python programming language and created a Telegram bot called GoBot! to automate the work.

By August 2021, I was already running a bonafide startup, which I named GoBike, that hired three part-timers to help out with my startup.

I also joined the Alibaba Cloud–Singapore University of Social Sciences Entrepreneurship Programme and also received an SG Founder Grant of SG$50,000 to help jumpstart my fledgling business. Through the programme, I learned how to overcome the complexities of bringing my startup to the next level.

With the grant and working with my mentors from the entrepreneurship programme, I am able to use it for the development and hiring of staff to bring my startup to the next level and prepare it for funding in future.

Nevertheless, it wasn’t always an easy ride to start a business in Singapore, especially in the midst of my studies. Like many young, budding entrepreneurs who started their businesses as a student, I had to split my attention between school and work, so learning how to manage my time to juggle both were critical.

The business world is also never idle, and I had to adapt to the needs of consumers whose behaviour and preferences are always changing. But each time I hit a snag with the company, I would remember the frustration I felt on the fateful day that I took a tumble on the rocks.

British entrepreneur Richard Branson, who had his fair share of bicycle accidents over the years, once said: “You don’t learn to walk by following rules. You learn by doing and by falling over.”

Perhaps that was the lesson that the driver was trying to teach me that day when he told me to “do it yourself”.

Sometimes you just need that kickstart to get yourself going.

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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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As the world continues to evolve with technological advancements and automation, the concept of a smart world is becoming a reality. With the advent of the Internet of Things, we can now see everything from smartphones to household appliances is now interconnected, including robotics.

Malaysia has quickly recognised the potential of this technology and is rapidly growing its robotics industry across multiple industries, such as healthcare, manufacturing, and education. 

Recent research predicts that Malaysia’s robotics market will witness remarkable growth, and by 2027, the market is forecast to produce over 4,742 units of robots at a Compound Annual Growth Rate (CAGR) of 16.77 per cent.

The projected growth is largely driven by advancements in hardware and software development, application development, sensors, and a host of other interfaces. As ardent supporters of robotics, we believe that this technology, along with Artificial Intelligence (AI), will usher in the next industrial revolution in Malaysia.

Robotics has become an essential tool for extending human capabilities while reducing waste and boosting industrial productivity. The integration of technology and automation should be seamless, akin to human actions – but faster, more efficient, and safer.

Also Read: Why robotics is just entering its prime phase

As stated by Don Norman in his book The Design of Everyday Things, “A good design is actually a lot harder to notice than a poorly designed product.”

It is with this motivation that we launched our brand, Advanced Intelligent Robotics (AiR). We inspire to make robots a natural part of our daily lives, just like the air around us, often unnoticed but ever-present. 

The beginning of everything

Starting a new business is never easy, and our startup was no exception. During the early stages, we faced several challenges that threatened to derail our progress, the biggest one was finding the right talent to join our team. As a hardtech startup focused on robotics, we needed skilled engineers and designers to help us create a product that would meet the high expectations of the market.

Among other major challenges we had to face was competition from larger, more established companies in the industry that had more resources and experience, making it difficult to gain traction and build a customer base.

However, we remained dedicated and motivated, strongly believing that with perseverance and innovative solutions, we could make a significant impact in the robotics industry and emerge a leader in our field.

Despite our passion and drive, we also encountered financial challenges that threatened our ability to grow and scale up the business. As a hardtech startup, the capital required for research and development was significantly higher compared to other software products like applications and websites. To bootstrap our business, we had to bank on several other projects to generate income and reinvest the profits generated from them back into product development.

We took on projects to assist other companies in prototyping their designs as well as developing machine and automation systems. Unlike other software startups, we needed significant capital to fund our research and development in order to manufacture and test our products.

This period was undoubtedly difficult for our team, but through perseverance and dedication, we were able to overcome these challenges and secure funding from investors and grant programmes like Cradle Fund via CIP Spark, which came in at the right time.

Staying afloat as a team in the competitive market

As the robotics industry evolves, it is essential to stay on top of emerging trends and technologies. We have observed a shift in robotics from industrial equipment to more accessible household machines, making them more readily available to the public.

However, current trends in mobile robot products have made the application process less straightforward. Mobile robots are essentially moving platforms with limited capabilities, and users must choose from a variety of accessories, upgrades, and modules to meet their specific application requirements. This can make the process of employing mobile robots time-consuming, difficult, costly, and inefficient.

In addition to the complexity of customisation, the currently available products require frequent modifications to the factory layout, which can be quite difficult and time-consuming. As a result, we believe that creating products that are functional right out-of-the-box requiring minimal setup, is critical to stand out in a competitive market.

For instance, one of our products includes functional modules that eliminate the need for lengthy and laborious setups. Similar to smartphones, our products require no assembly and are ready for use. By providing a streamlined and simplified solution, we hope to provide our customers with an unmatched experience and distinguish ourselves from larger competitors in the industry. 

Also Read: Southeast Asia paves the way for new value in robotics

Our team recognises that perseverance and resilience are essential not only for surviving in a competitive environment but also for overcoming the difficulties associated with launching a robotics startup. The journey has been challenging, given the numerous setbacks and obstacles we have encountered along the way. However, we are firm believers in the value of persevering through difficult times by keeping our eyes on the prize, changing strategies as required, and never giving up.

We recognise that setbacks and failures are inevitable in any startup, but we acknowledge them as opportunities for our teams’ growth and learning. We are constantly evaluating and enhancing our business strategies, pivoting when necessary, and taking on calculated risks to advance.

The future of us

In conclusion, we are highly optimistic about the future prospects of our robotics startup, and we remain committed to driving innovation and growth within and beyond the industry. Our commitment to creating cutting-edge hardware and software solutions for mobile robots has positioned us for continued success, and we are enthusiastic about the opportunities that lie ahead.

Looking to the future, we plan to expand our reach into new industries and applications, leveraging our expertise to meet the evolving needs of our customers. As a startup, we recognise the value of agility and flexibility, and we are committed to adjusting our strategy as necessary to stay ahead of the curve. We believe that with hard work, dedication, an open mindset and the willingness to embrace change, we can achieve our goals and make a meaningful impact in the world of robotics. 

To our fellow entrepreneurs, we advise you to never lose sight of your vision but be willing and ready to pivot when necessary. Business is a journey filled with unexpected twists and turns, and the key to success is staying flexible and open-minded. With persistence and an openness to accept change, all things are definitely possible.

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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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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Justin Chin spearheads the business development team and sales at e27, where he expertly manages revenue and key clients.

Chin is an accomplished business professional with over a decade of experience in partnership and sponsorship sales. He has a proven track record of successfully closing deals with Fortune 500 companies and collaborating with various organisations such as governments, startups, corporate accelerators, and trade embassies.

He specialises in leading strategic partnerships and driving revenue growth in highly dynamic and rapidly changing environments. Chin is an NTU graduate and holder of an accelerated Honours degree in Economics and a double minor in Business and Entrepreneurship.

Chin regularly contributes articles for e27 (you can read his thought leadership articles here).

In this candid interview, he talks about his personal and professional life.

How would you explain what you do to a five-year-old?

At e27, my team and I help companies achieve their goals, and they would pay us for our time and effort. Simply put, if an ice cream shop owner likes more customers to come to his/her shop, we make it famous and bring customers.

What has been the biggest highlight/challenge of your career so far at e27?

The biggest highlight would be the opportunity to head the revenue team at e27. That’s where I meet and engage some of the largest fortune 500 companies worldwide to work and partner with us. Challenge and breakthrough would be negotiating and “closing a six-figure deal with a customer”.

Also Read: The journey is as enjoyable as the destination: Adrian Chng of Fintonia Group

How do you envision the next five years of your career?

I would love to close mega deals using automation while sipping a glass of pineapple malibu in Hawaii (half joking)! Ideally, I want to drive e27 to be APAC’s leading tech media company. I would lead a team of ten passionate business development personnel to achieve eight-figure revenue numbers!

What are some of your favourite work tools?

Asana and Pipedrive, or any tools that enable automation and make our lives easier and more productive.

What’s something about you or your job that would surprise us?

Every call I have is an opportunity to make friends, make money and enjoy cups of coffee/beer.

Do you prefer WFH or WFO, or hybrid?

WFH is great, with travelling time being saved! But hybrid would be wonderful, too, with an opportunity to mingle. It’s fantastic to meet all the partners f2f too, and that’s where we get to know them much better on a level.

Also Read: Continue to push boundaries and create value: Jolene Lum of Nurasa

What would you tell your younger self?

Experience and embrace life to its fullest. Along this angle, aim to go out to experience the world, whether you would like to work at Starbucks or Mcdonald’s or even travel to Morocco or hike to Everest. We can always earn money but never bring back our youth.

Can you describe yourself in three words?

Making things happen!

What are you most likely to be doing if not working?

Playing tennis with Roger Federer, pool with Efren Reyes, and soccer with Steven Gerrard (I wish)!

What are you currently reading/listening to/watching?

How I Built This with Guy Raz, or any podcasts sharing about investments and growing companies.

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Join the e27 contributor community of thought leaders and share your opinion by submitting an article, video, podcast, or infographic.

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