Indonesian telemedicine “super app” Alodokter has announced that it has secured an additional investment from MDI Ventures, a subsidiary of Telkom group, and Samsung Ventures.

The size of the investment was not disclosed.

This deal takes place nearly eight months after the Jakarta-headquartered startup raised a funding round led MDI Ventures in November 2020 as part of its US$30 million Series C extension.

The health-tech firm will use the funding to further expand and develop new products.

Started in 2014 by Nathanael Faibis and Suci Arumsari, Alodokter provides all-encompassing digital health services that include reliable health content, access to general practitioners and specialists (telemedicine), online booking of doctor’s appointments at hospitals, medicine purchase through e-pharmacy and affordable insurance packages.

Also Read: Halodoc snags US$80M Series C led by Astra to expand its telemedicine platform in Indonesia

The firm claims it has more than 30 million monthly active users and more than 43,000 certified doctors across 1,500 hospitals and clinics on its platform.

Since 2019, Alodokter has raised significant investment from investors such as Softbank Ventures, Sequis, Golden Gate Ventures, Philips, Heritas and Hera Capital.

CEO Faibis said: “…Key focus areas going forward include technology innovation, increasing the talent pool, and adding new features and functionalities…By integrating our ecosystem with additional state-owned enterprises, we expect to provide tech-enabled healthcare access to more Indonesian patients.”

Donald Wihardja, CEO MDI Ventures, said: “Alodokter has a proven track record of growing their comprehensive healthcare solution. All the innovations, from telemedicine to insurance, have been developed to cater to Indonesia’s needs for accessible and affordable healthcare services. The funding from MDI will further extend the growth of health services through the potential collaboration with several BUMN entities in Indonesia.”

“With the increasing demand for the use of health services, this follow-on funding aligns Telkom’s mission to increase innovative products within the SOE environment and continues to be committed to providing solutions to millions of people in Indonesia,” explained Director of Enterprise & Business Service Telkom Group, Edi Witjara.

Previously, Alodokter had raised seed funding in 2015 and US$2.5 million in Series A led by Golden Gate Ventures in 2016.

In April this year, Halodoc, another Indonesian telemedicine startup, raised US$80 million in a Series C funding round led by local automotive conglomerate Astra.

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Image Credit: Alodokter

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UNObank receives digital banking license in Philippines

The story: UNObank has received approval from the central bank Bangko Sentral ng Pilipinas (BSP) to operate a digital bank in the Philippines.

About UNObank: A company under Singapore’s DigibankASIA, it offers anyone in the Philippines to save, borrow, transact, invest, and protect their finances easily with speed and ease.

More about the story: The BSP has granted three digital bank licenses, two of which are conversions from previous bank licenses.

Tonik, another Filipino neobank, also received the license.

“The BSP’s vision and foresight to digitise the local banking industry is future-forward and apt because ultimately it will help align the Philippines as a modern banking center for the region,” says Manish Bhai of UNOBank.

Carousell ropes in former Razer executive as new CFO

The story: Carousell, a Singapore-based mobile listing service company, announced today the appointment of former Razer executive, Edwin Chan, as its Chief Financial Officer.

Also Read:  Ecosystem Roundup: Why SEA’s exits market looks bright

New role: He will oversee Carousell’s overall capital strategy, including corporate development, fundraising, as well as mergers and acquisitions.

Additionally, corporate controllership and accounting, financial reporting, investor relations, legal and compliance functions will fall within Edwin’s remit.

Gojek’s GoSend courier drivers protest over low incentives

The story: Drivers of Gojek’s delivery arm, GoSend, are planning to strike a protest today, according to messages distributed via WhatsApp groups. This was first reported by Kr-Asia.

The reason: GoSend is planning to cut incentives for deliveries by more than half the current rate.

More about the story: Yulianto, a GoSend drive and a spokesperson of the protest, said that the protest will run for three days in Jakarta, Bogor, Depok, Tangerang, Bekasi, and Bandung.

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Image Credit: UNOBank

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wagely, a financial wellness platform that enables earned wage access (EWA) in Indonesia, has received US$5.6 million in a strategic round of investment, led by Integra Partners (formerly known as Dymon Asia Ventures).

Also participated in the round were ADB Ventures, PT Triputra Investindo Arya (one of Indonesia’s largest privately held groups), Global Founders Capital, Trihill Capital, 1982 Ventures, and Willy Suwandi Dharma (former President Director of PT Asuransi Adira Dinamika).

Also Read: Impact-tech investor ADB Ventures in talks to raise US$100M debt fund

The Jakarta-headquartered startup will use the capital infusion to accelerate the adoption of its platform.

Founded by Tobias Fischer (previously with Grab) and Sasanadi Ruka (formerly with Tokopedia) wagely gives employees access to their earned wages and financial education.

EWA is a concept wherein an employ can withdraw a part of his/her already earned salary before the payday. For example, you have worked from 1st-10th June, while payday is on the 25th. You can withdraw a part (say, 50 per cent) of your prorated salary for that month (10 days) before the payday comes.

This is aimed at reducing financial stress for millions of low- and middle-income workers, who struggle with unexpected financial expenses between pay checks.

wagely claims it serves tens of thousands of employees across many industries, including restaurants, factories, hospitals, and retail stores.

“More than 100 million Indonesian lower- and middle-income workers are living paycheck to paycheck and struggle with unexpected financial expenses between paychecks, which in turn impacts businesses with higher turnover, lower productivity, and more employee loans,” said CEO Fischer.

“Our workplaces are changing rapidly, especially since COVID-19 struck. Now the way people are getting paid is changing, too, and at scale. wagely provides a financial flexibility that is perfectly suited for today’s agile and progressive workforce,” he added.

Its financial wellness solution is used by companies such as British American Tobacco, Ranch Market, PT Mustika Ratu, and PT Kencana Energi Lestari.

“wagely offers our employees financial stability in times of uncertainty. It is incredibly important and a crucial step for the long-term resilience of our business,” said Wilson Maknawi, President Director at PT Kencana Energi Lestari.

“With no changes to our payroll process, wagely’s solution has proven to increase our business savings and helped our employees to avoid predatory loans while providing savings and budgeting tools that increase their financial literacy,” he shared.

As concerns over COVID-19 continue to grow, employers around the world, including Walmart, Pizza Hut and Visa, are turning to EWA solutions to reduce turnover, enhance productivity, and increase business savings.

Dailypay, a leading US-based EWA provider, just recently raised US$500 million and reached unicorn status.

Other noted EWA providers are US-based Payactiv, UK-based Wagestream,  Mexican firm Minu, and US-based Even.

Payactiv already counts more than 2 million users and has processed more than US$5 billion in earned wage access, highlighting the tremendous potential of the space.

Also Read: 1982 Ventures partners with 3 Korean investors to help country’s startups enter SEA

Daniel Hersson, Senior Fund Manager at ADB Ventures, commented: “wagely offers workers what they did not have before: a fair and accessible financial tool to help them manage life’s inevitable contingencies and emergencies, including those caused by climate change.”

Over 70 per cent of the Southeast Asian adult population is still underbanked and lacking access to affordable and responsible financial services, while many of the 140 million low- and middle-income workers (72 per cent of the Indonesian workforce) who live from paycheck to paycheck are exposed to the cycle of debt caused by overdraft fees, high-interest credit, and payday loans.

Taking this opportunity, the earned wage access solutions offer a sustainable alternative to employees. With the COVID-19 pandemic and increased levels of financial stress that is directly impacting employers, wagely has become even more important to employees and employers and is well-positioned to further support millions of Southeast Asians with its holistic financial wellness platform.

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Image Credit: wagely

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Autopair, an online automotive parts trading company in Thailand, has raised an undisclosed amount in a pre-Series A financing round.

Summit Auto Body Industry, one of Thailand’s largest suppliers of automotive parts, led the round.

Prior to this, Autopair has raised US$500,000 in seed funding from KK Fund in 2018.

Autopair said in a statement that it will use the fresh capital to help approximately 1,000 independent automotive workshops digitise their work processes through its newly launched digital business management platform.

Additionally, it has also announced plans to expand into markets like Indonesia and Malaysia.

Despite the slump in domestic car sales due to the COVID-19 pandemic, the impact on the industry has been offset by the corresponding increase in demand for car maintenance.

However, Autopair believes that independent automotive workshops have not fully capitalised on these opportunities due to high fragmentation and a reliance on traditional, inefficient operational processes.

Also Read: Carsome snags US$30M Series D to strengthen its C2B and B2C offerings

Founded in 2018, Autopair’s goal is to transform the automotive aftermarket industry via its online automotive parts trading platform.

Its SaaS offerings are ‘Smart Procurement’ and ‘Smart Workshop’ are its core features.  Smart Procurement provides a virtual inventory of parts, wholesale discounts, as well as a 90-minute contactless delivery of service parts at competitive prices.

The second product streamlines business solutions for calendar scheduling, tracking, managing labour efficiencies as well as inventory management and customer relationship management (CRM) tools for estimates and invoices.

The company has over 50,000 virtual stock-keeping units and its solutions are available in 29 provinces in the region.

In the past three years, Autopair claims to have recorded a compound annual growth rate (CAGR) of over 385 per cent.

Some of its clients are industry leaders including Bridgestone Corporation, Toyo Tires, Nitto Automotive, and Nankang Tires.

“I believe that with an uncertain future in uncertain times, the best strategy is to be part of the disruptive wave instead of standing against it,” said Kornkrit Jurangkool, President of Summit Auto Body Industry.

“Autopair has demonstrated its success in digitising the automotive aftermarket industry to date, and given our connections throughout the industry and ecosystem, we believe we can help drive Autopair’s business forward,” he added.

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More than US$300 billion was raised through IPOs worldwide in 2020, including record numbers of issuances in the US last year despite a sharp economic downturn brought on by the pandemic. A large portion of such issuances was via special purpose acquisition companies (SPACs), which are publicly traded investment vehicles created to merge with an existing company to bring it public.

According to Goldman Sachs, SPAC IPOs have raised a total of US$78 billion across 244 transactions globally in 2020. This represents a remarkable five-fold increase from the year before.

Closer to home, Southeast Asia’s most valuable startup Grab is also set to list on the Nasdaq via SPAC Altimeter Growth Corp at an estimated valuation of US$40 billion.

The sudden boom in SPAC IPOs was more notable given the tepid IPO markets in the years leading up to the pandemic. Companies were trying to stay private longer as venture capital and private equity money was abundant. The rapid renewal of interest in public equity capital raises the question of whether “staying private for longer” will become history.

Public valuations for startups, especially within the tech sector, is at a historic high with a median IPO priced at 24x sales in the year 2020 (a fourfold increase from the preceding twenty-year average).

Such lofty valuations are attractive for the typical SPAC target – young, loss-making, with no clear path to profitability, but are reminiscent of the dot-com bubble. The sustainability of these trends has major implications for the financial markets and thus warrants a more sobering view of SPACs.

Also Read: Ecosystem Roundup: Will SPACs sound the death knell for IPOs in SEA?

How it works

To evaluate the SPAC model, it pays to first understand how one works. A SPAC typically begins life as a team of experienced financiers (often referred to as sponsors). The sponsors leverage their reputation to raise cash in an IPO, then take up to two years in search of private companies to merge and bring public.

Along the way, it issues shares, warrants, and rights to parties that do not contribute cash to the eventual merger, thereby diluting the value of its shares. If investors eventually agree to a proposed merger, the SPAC redeems the majority of its shares from the public market, issues new shares to its sponsors or to third party private investors (PIPEs), and finally merges with the target company. The remaining public shareholders, sponsor(s), and PIPE investors all own a portion of the post-merger company’s equity.

A key risk of SPACs comes from a characteristic inherent to the design of SPACs: dilution. A recent Stanford study found that, on average, SPACs retained only 66.7 per cent of the cash they raised in the initial IPO at the time of merger, after compensating the sponsors and early investors.

Such common practices provide great returns for early investors but leave a gaping dilution hole which is proven to be correlated with poor post-merger performance. Few exceptions exist in the market, yet many SPACs are skyrocketing on the slightest rumours of a deal.

The enigmatic nature of SPACs and their targets’ ability to bypass rigorous IPO due diligence have helped them avoid public scrutiny and thrive in a market where behaviours depart from fundamentals and are driven by the fear of missing out. As market sentiments cool, and the crowd comes to realise the actual enterprise value of a SPAC, share prices typically plunge – posting negative returns.

Another danger stems from the first – the way in which the majority of SPACs are currently structured gives rise to two sets of non-overlapping investors with different, often opposing incentives. The ‘early’ investors who bought into the SPAC at the time of its IPO primarily hedge funds and some private equity firms tended to exit at the time of merger to lock in positive returns.

‘Later investors’ tended to hold shares through the merger and suffer from poor post-merger returns in the short and medium term. Of the 89 SPAC IPOs that have completed mergers between 2015 to June 2020, the median return was a disappointing -36.1 per cent compared to the average after-market IPO returns on the Nasdaq in the same period.

Also Read: Traveloka in talks for a merger with Peter Thiel’s SPAC to go public: Report

Why would anyone invest in a structure that collects cash, looks for a company to take public, and then allow those who invested the cash to exit?

Historically, sponsors have not been very influential in the growth of the post-merger company. If a target company is promising, why would sponsors and early investors not commit in the same way a private equity firm controls a portfolio company? Unlike in a successful traditional IPO where the majority of investors would hold a long position, most SPAC IPOs have a significant portion of investors who are looking for a quick return on their investments. This calls into question the notion of ‘targets benefitting from their sponsors’ experience and resources’ that many sponsors tout.

SPACs are not necessarily a ‘cheaper’ way to go public. If shareholders bear the full brunt of the dilution inherent to a  SPACs’ designs, the cost of raising funds through a SPAC would far exceed that of a traditional IPO, which includes a 4-8 per cent underwriting fee plus a price premium at public offering, which averaged 18 per cent in 2019.

Who is it for?

Dangers aside, SPACs can still be effective vehicles to raise capital for young and truly innovative companies that may otherwise be unable to scale and grow. The pandemic has ushered in the start of another tech revolution as multiple industries are forced to change. With VC funding reaching record levels in high growth areas such as healthcare, remote work, and e-commerce, the need for SPACs will continue to rise in the future.

In Southeast Asia where ECM/IPO activity has been slow, SPACs can lend credibility to regional startups to tap capital markets. The key to success lies in (1) high-quality sponsors and (2) sound governance – quality sponsors can provide the network, mentorship, and experience necessary for companies to reach their potential, while good governance ensures that a post-merger entity continues to thrive.

Take the Grab-Altimeter Growth Corp partnership as an example: the SPAC merger will give Grab’s founder Anthony Tan 60.4 per cent of voting rights with a mere 2.2 per cent financial stake.

The arrangement resembles that of such companies as Google and Facebook, where a dual-class share structure have allowed founders to continue driving their companies’ visions. While there are potential downsides, such efforts to align incentives are a welcome change in how SPACs operate.

Investors reacted to the early to mid-phase of the recent pandemic-driven exogenous shock in a predictable way. With levels of business uncertainty high and interest rate expectations low, the TINA (acronym for ‘There is no alternative’) effect took hold in financial markets.

Also read: What does Peter Thiel-backed Bridgetown’s IPO mean for SEA’s startup ecosystem?

Investors piled into crowded assets (typically growth stocks such as SPAC-mergers) irrespective of fundamentals because other asset classes offered worse risk-adjusted returns. However, with strong economic recovery in sight and interest/inflation expectations set to rise, the allure of the TINA trade is fading rapidly.

Investors now see opportunities in other parts of the market, and it is hard to believe that the enthusiasm for SPAC IPOs will remain. Without a fundamental shift in how SPACs operate – to align incentives and minimise dilution, SPACs will remain unattractive.

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Thinking out loud: Are electric vehicles as sustainable as we believe? by Rachel Lau, Managing Partner at RHL Ventures

Although prices of batteries have significantly decreased, it has yet to reach the price-parity ratio suitable for mass adoption.

With the future of electrification on the horizon, existing traditional automotive manufacturers are converting and diverting resources to develop EVs. Together with new and upcoming companies that are either developing EVs and/or other related EV components such as battery swaps and charging stations, this space is heating up.

While Chinese EVs are focused on the hybrid model of battery swaps and charging stations, Tesla and other manufacturers in the West are adopting the Tesla model of building charging stations with high-powered piles.

How New Zealand-based Sustainable Foods is harnessing the power of hemp to produce meat products by Abhinav Mehra, VC and angel investor

Meanwhile, other proteins like pea, myco proteins, and lab-grown cultured meat are also showing growth in this region. To appeal to mainstream meat-eaters, plant-based meat products were developed to mimic favourite foods in familiar formats like burger patties and sausages.

However, as most of them remain processed packaged foods – questions are being raised on their nutritional value.One company in New Zealand, uses not only soy and pea but also hemp. The crop is rich in complex protein delivery and considered one of the most nutritionally complete food sources in the world.

Though Auckland-based Sustainable Foods is among the first to adopt it in the alternative meat industry.

Rise of fintech

Was 2020 the Amazon moment for fintech in Asia? by Sirish Kumar, founder and fintech expert

It is only a matter of time before mobile devices will become the default Point of Sale (POS) device for small business owners. The ubiquity of smartphones has expanded the ability to reach underserved communities easily. Today innovative embedded finance solutions offered by fintech that can leverage this mobile technology has eliminated the need for costly hardware and digitalise previously outdated payment acceptance points at a faster pace.

Fortunately, the transition is occurring at a time when moving online has never been easier. ASEAN governments have championed efforts to invest in core digital infrastructure in both rural as well as urban settings, where the vast majority of the region’s small and micro businesses are located.

From Dogecoin to Cardano: Should you take altcoins seriously? by Duckju Kang, CEO of ValueChampion

Just as there is a laundry list of cons, there are compelling arguments for bitcoin that institutions and everyday investors have been buying. The alternative to fiat, the bitcoin gold standard, and the potential to disrupt traditional banking services offer an attractive looking glass into the future.

So what about the almost 9,000 other altcoins out there?

New banking

Beyond marketplaces and motorcycles: Digital banks need to formalise ASEAN’s informal economies by Kaspar Situmorang, CEO, Bank BRI

Banks cannot rest on their laurels anymore and pretend their corporate and enterprise accounts will keep them afloat. No longer can they ignore microfinancing products due to high transaction costs. The super-apps are only a year into their digital banking war, but it won’t be long before they start sizing up bigger, more lucrative accounts.

Brick-and-mortar banks still have their legacy accounts and large, on-ground networks, as well as strong KYC experience to exploit. As licensed banks with high capital buffers to withstand economic shocks and decades of specialisation (as opposed to super-apps who roll out and shut down new verticals frequently), legacy banks have a lot of fight in them yet– if, and only if, they execute fully digital plays themselves.

Reimagining customer engagement for the AI bank of the future by Renny Thomas, Senior Partner at McKinsey & Company

To remain competitive, incumbent banks must become “AI-first” in vision and execution.

If fully integrated, these capabilities can strengthen engagement significantly, supporting customers’ financial activities across diverse online and physical contexts with intelligent, highly personalised solutions delivered through an interface that is intuitive, seamless, and fast.

These are the baseline expectations for an AI bank– specifically when it comes to customer engagement.

By reimagining customer engagement, banks can unlock new value through better efficiency, expanded market access, and greater customer lifetime value.

In a post-COVID-19 world, Vietnam is SEA’s latest hotspot for venture capital investment by Duyen Tran, Public Relations at Loship

Emerging from the pandemic while other countries are still in the midst of the crisis is giving Vietnam an advantage. The country’s startup ecosystem has been transformed from the second-least active to the third-most active among ASEAN countries, trailing only Indonesia and Singapore.

Also, profiles of investors making deals in Vietnam are increasingly diversified. If the majority of deals were from Singapore and Japan back in the 2017-2018 period, the market now is extremely vibrant with the participation of several investors from different parts of the world such as South Korea, China, even the Europe, Middle East, and Africa (EMEA) region. Many of them have made investments in Vietnam for the first time. Local investors are also active, participating in roughly 30 per cent of deals.

SME and startup growth

How tech can help smaller brands scale in SEA by helping them maintain customers’ loyalty by John Jess, CEO and founder of Stash

Tech innovations created to troubleshoot everything from labour-intensive marketing campaigns to the messiness behind multi-market rewards programs tend to not only be expensive but difficult to customise and manage as well. It is like handing an infantry soldier a tank and asking them to drive it into battle with no prior experience.

That is why tech tools need to evolve to keep up with the needs of smaller businesses. I am the founder of Stash, an incentive tech startup that’s changing the way businesses keep their customers loyal and committed.

We have been pioneering the forefront of the tech revolution with a suite of software products that include, among others a mobile-based platform that brings together over 1,000 reward partners onto a single screen.

How founder-CEOs can setup their startup for a successful IPO by Sophie Chiu, VC Investor, AppWorks

This piece of article is more written for growth stage founder-CEOs. However, if you’re an early-stage founder, I believe this article can also shed some light on what is ultimately valued the most in the sometimes arcane process of filing for an IPO.

Trust is what helps companies earn long-term loves in the public market. It’s a playing field with big guys that have already proved their sustainability, building layers upon layers of trust as each quarter passes.

Trust is cultivated not only through data (a result of management and operation), but also through market reaction. This means, executing a good or even strong IPO is indeed very important because the trust is then solidified from day one.

How diversification of business models is helping SMEs’ post-pandemic restructuring by Benjamin Wong, co-founder and CEO of Transwap

While globally it seemed to be that we were all in the same choppy seas, over the span of a few months, if not weeks, it was apparent that not all businesses were on board the same boat. The differences in the treatment to SMEs was glaring; Interest rates were slashed to new record lows with Central Banks channelling greater efforts into printing money.

The scale at which monetary interventions took place resulted in seemingly optimal financial conditions of the market and yet many companies are still suffering the repercussions of the whiplash brought about with the onset of the pandemic and. When it comes to funding, however, SMEs in the Southeast Asian region do not have access to the lion’s share but instead are at the mercy of the shorter end of the stick.

Building your startup culture

Startups should celebrate failures. This is how to keep the experimenting culture alive by Sagar Chaudhary, marketing and PR Manager at Chinaccelerator

In the startup world, things move at a rapid pace and ideas alone do not bring success. Success requires implementation and the right implementation process requires different business experiments in order to test and validate those ideas.

Experimentation can be as small as tweaking the font on a website or as big as pivoting the entire business, as long as these are steps towards a predetermined goal.

Why it is time to reinvent The Agile Manifesto to answer challenges of a remote team by Cliff Berg, founder of Agile 2

Organisations today have embraced agility as a strategic imperative. For many, the Agile Manifesto is one of the sources of guidance on how to achieve agility. Yet, the Agile philosophy strongly favours working with others in person. This manifests through the “Agile team room” and the preference for face-to-face communication.

But these preferences are not backed by any research or evidence: they are assumptions of those who crafted the original Agile ideas and the various practices that evolved from those ideas.

It turns out that collaboration in an Agile team room is actually less than in a more traditional setup.

Smaller brands should have that option too. That is why I’m highlighting some of the ways businesses can scale sustainably and intelligently in 2021, to make the most of their digital transformation.

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. This season we are seeking op-eds, analysis and articles on food tech and sustainability. Share your opinion and earn a byline by submitting a post.

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For LGBTQ+ professionals, the unfortunate reality is that the discrimination that they face in their personal lives can also be found in the workplace. This phenomenon — known as the “rainbow glass ceiling“– can prevent them from progressing in their career and realising their true potentials.

“Overt homophobia and indirect aggressions at the workplace do happen and the trickle-down effects are real,” Kennede Sng, co-host of Singapore-based LGTBTQ+ podcast series The SG Boys, tells e27.

“For one, identity self-censorship is something that LGBTQ+ persons struggle with. This refers to queer individuals hiding aspects of themselves, sometimes even going as far as presenting an untrue version of themselves out of fear of exclusion or being denied opportunities,” adds Sng.

Even in Thailand, a Southeast Asian country that is perceived as having a relatively open attitude for the community, LGBTQ+ professionals are going through a similar struggle.

In an interview with e27, Best Chitsanupong, founder/director of Chiang Mai-based youth organisation Young Pride Club, explains the barriers that LGBTQ+ fresh graduates faced when applying for jobs. She gives the examples of university students who were unable to wear clothes that reflect their gender identity in their transcript or certificates, making it harder for them to apply for internships or jobs.

“She applied for a job in several companies but received no replies. She assumed that this is probably because these companies may not be finding match between her application and identity. She eventually got rejected,” Chitsanupong explains.

According to her, this is in line with the findings of a UNDP study on discrimination and social attitudes towards LGBTQ+ people in Thailand.

“The survey revealed that non-LGBTQ+ respondents have favourable attitudes towards LGBTQ+ people and support equal right and equal access to services for LGBTQ+ community. This supports drop when it comes to accepting LGBTQ+ people as family members, fellow workers, students and social acquaintances,” the report reveals, citing both formal and informal discrimination faced by LGBTQ+ people in Thailand.

Also Read: This gay founder is creating a safe media platform for LGBTQ community in SEA

Things are no different in other parts of SEA either; in Indonesia and the Philippines, LGBTQ+ professionals are also forced to hide their gender identities, and this practice has a profound impact on their career progression.

“In the Philippines, for instance, a number of companies require their trans employees to wear uniforms that match their assigned sex at birth, lest they lose their jobs. One of our employees shared her experience as a trans-person in her previous company. She received a memo for using the women’s comfort room. She was further asked to use the comfort room dedicated to people with disabilities instead,” says Victoria Alcachupas, Vice President of Business Development, People Branding, Marketing, and Communications, at TaskUs.

So what can businesses do to ensure that employees of all background can strive in a safe and supportive environment?

In this Pride Month Special series, e27 speaks to companies and NGOs about building Diversity & Inclusion (D&I) in the workplace, and what LGBTQ+ professionals need and how employers can meet that.

What D&I are made of

Before we get to the details of what a company that has successfully implemented D&I looks like, we can start by pointing the result that they can achieve by having an inclusive workplace.

GAYa NUSANTARA, an Indonesia-based NGO advocating for the LGBTQ+ community in the country, gives e27 the parameters of such an organisation.

“We strongly believe that a company that has successfully implemented D&I has a wide spectrum of diversity in its employee roster, which ranges from diversity in geographical presence, ethnicity, culture, gender and sexuality, religion, age as well as physical and mental disability,” says Purba Midnyana, Communications Officer at GAYa NUSANTARA.

“There should also be a high happiness index that leads to a lower turnover rate; this is due to a high sense of ownership in cultural and environmental aspect [of a workplace],” he continues, citing a 2018 report by McKinsey about diversity in the workplace.

Sng of The SG Boys shares the five traits of an inclusive workplace. These workplaces have:

1. An established code of conduct among employees that explicitly bans discrimination on the basis of sexuality and gender identity.

2. Employee networks or initiatives that allow LGBTQ+ persons and allies to connect — which is especially relevant for larger companies with existing D&I initiatives.

3. Continuous effort to reduce bias in performance reviews

4. A signal of allyship from senior management, which can start from something as simple as introducing themselves in preferred pronouns and inviting others to do so.

5. An internal channel to flag concerns as the standard HR avenues are often not enough to create a safe space for conversation.

In implementing D&I in the workplace, Sng puts emphasis on the importance of collaboration between LGBTQ+ professionals and allies which can be facilitated by the management.

Also Read: Riding the irony: Can Indonesian GO-JEK afford supporting LGBTQ rights in a country that condemns it?

“Speak to management on creating spaces where LGBTQ+ persons and allies can gather and share ideas. It truly takes a village. A ‘grassroots’ strategy will help to put initiatives into practice and can show how LGBTQ+ concerns are actively represented in the company,” he explains.

Getting it right

But today, especially in the SEA tech startup ecosystem, is there any example of companies that have done it right?

Singapore-based proptech startup 99.co is one that allows its employees to express their gender identities starting from the use of pronouns. While the company is yet to provide spouse benefits due to several constraints, it encourages employees to bring their partners and families, same-sex and otherwise, to company events.

“Every new LGBTQ+ employee that joins us is fully aware of our culture, hence it allows them to be at ease quickly and become comfortable with sharing their preferred pronouns with other colleagues during their first week at work. Once they have made it clear on their preferred pronouns, everyone plays a part in being conscious and correcting others when the wrong pronouns are used,” 99.co COO Yan Phun explains to e27.

“Our People/HR team also has an open-door policy for anyone who faces issues at work, including discrimination, and they can make a report anonymously should they feel uncomfortable to reveal their identities,” Phun adds.

The principles of D&I that the company is embracing can also be seen in the products and campaigns that they are launching for their customers. For example, 99.co runs an annual “Home for All Campaign” to raise awareness for the discrimination faced by LGBTQ+ individuals at home and in Singapore.

It also introduces features such as the “Diversity Friendly” tag in its property platform. The feature started out as the “All Races Welcome” tag in 2016; its creation was inspired by 99.co CEO Darius Cheung’s personal experience with racial discrimination from agents and landlords.

“As our company and audience base grew, we saw an increase in discrimination faced by other minority groups outside of race and felt that the tag needed to evolve as well to address these groups. Although this tag remains optional for agents and landlords and it is not a comprehensive solution to the larger issues, we felt that it was the least we can do to raise awareness and create a safer space,” Yan Phun elaborates.

“Hence, we decided to relaunch this tag under a new name and also include an info tip to the tag that explains what this tag stands for. There was no resistance within the team when we decided to roll this out and it was like a matter-of-fact that this should be done.”

Also Read: “Diversity and inclusion aren’t getting enough airtime in SEA’s workplaces”

TaskUs, a digital outsourcer, was one of the first companies in the Philippines to offer healthcare benefits to LGBTQ+ partners.

“During the time when this practice wasn’t common, we worked with our HMO partner to come up with a plan that would cater to our employee’s nominated beneficiaries regardless of the absence of a SOGIE law/ordinance,” Alcachupas explains.

Apart from that, the company also allows employees to use their pronouns in both formal and informal settings, and have even introduced gender-inclusive restrooms and sleeping quarters in their TaskUs Philippines sites.

It also has an employee resource groups (ERGs) called Unicorns@TaskUs, which consists of LGBTQIA+ employees and allies. The ERG creates programmes, organises events, and helps leadership craft policies on D&I.

“Each ERG has an executive sponsor that supports the initiatives of its members and puts it forward to the agenda of leadership teams. Apart from securing budget for ERG initiatives and projects, executive sponsors represent the group’s interest during the creation and review of company policies and activities,” says Alcachupas.

“By having executive sponsors, members of ERGs can be assured that they have someone at the table of decision-makers to empathise with their needs and to voice out their feedback and policy suggestions. As stakeholders, ERG members are also consulted on how these policies will be carried out throughout the organisation.”

For these companies, having an inclusive work environment does pay off.

“Having an inclusive environment definitely improves our employees’ productivity, as they are able to focus on their work and put in 100 per cent when they are being their authentic self. This also promotes transparency and eliminates unnecessary resistance caused by fear of being misgendered or misunderstood when it comes to cross-team projects,” says Yan Phun.

“As a company, this has also helped us attract various talents from the LGBTQ community who applied to work with us specifically because of our inclusive culture.”

After the rain

Certainly, this was only the beginning. While some companies in SEA have started to embrace D&I policies in their operations, there is still a need to continue the conversation about this issue.

It was still fresh in our mind when a Gojek executive received a backlash for speaking up about D&I practice in their company several years ago.

In building D&I, Alcachupas puts an emphasis on three things. Firstly, the initiative has to come from the top; secondly, the management should always do their best to listen to the employees; and lastly, as leaders they need to start the conversation.

“Apart from lending an ear, letting them know that they have a voice is vital in terms of helping them grow professionally and personally. This will also establish a safe and mentally healthy environment for your employees,” she stresses.

Also Read: How to use Maslow’s hierarchy of needs to drive resilient leadership in 2021

“Our difference makes us an asset, not an opportunity to meet a diversity quota. Ultimately, everyone wants to be recognised and valued for the skills they bring to the table. It is my hope that anyone who identifies with being on the LGBTQIA+ spectrum steps into their office feeling celebrated, not hindered, by their identity,” says Sng.

Ideally, as a champion for innovation and disruption, the tech startup ecosystem should in the forefront of this movement. As we continue to seek ways to improve the way we work –to realise the #futureofwork– D&I should be a key agenda for every business.

Especially as the pandemic provided us with the opportunity to look within and re-examine how we are doing things.

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Image Credit: Clem Onojeghuo on Unsplash

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Nium to acquire London-based payments optimisation platform Ixaris

The story: Singapore-based B2B payments platform Nium has signed a definitive agreement to acquire Ixaris, a UK-based payments optimisation firm. The transaction is expected to close early in the third quarter of 2021, subject to customary closing conditions.

Also Read: BRI, Visa join remittance firm Nium’s Series C round to facilitate tuck-in acquisitions

Objetive: Temasek-backed Nium aims to provide one API integration to access the world’s payments infrastructure. Through the Nium platform, customers in a variety of sectors can quickly deploy new financial services from card issuance to cross-border payments.

About Ixaris: It provides flexible funding and payment methods that help airlines and online travel agents (OTAs) reduce surcharges, earn rebates, flatten FX fees, and streamline reconciliation.

Ixaris claims it have issued more than 10 million virtual cards in 2019. Since inception, it has processed 24 million transactions for 200+ customers in 40+ countries.

Former OneConnect CFO joins GoTo

In the new role: Working from its Jakarta office, Lo will lead GoTo’s finance function and teams across all areas including tax, treasury, financial planning, accounting and procurement.

Who is Lo: Lo was previously the CFO of OneConnect Financial Technology, a technology-as-a-service platform for financial institutions and an affiliate of Ping An Insurance of China, for which he led its New York Stock Exchange (NYSE) listing in 2019.

Also Read: Gojek, Tokopedia confirm merger with the launch of GoTo Group

Before that, he was the CFO and Treasurer of Yum China Holdings, one of the largest restaurant companies in China, where he managed a finance team of over 600 employees and led the NYSE listing in 2016.

Lo worked for Ernst & Young for 15 years, including as a partner and deputy director in the Asia Pacific Capital Markets Center, at which he specialized in US SEC reporting and Sarbanes Oxley compliance requirements.

About GoTo: Formed on May 17 through the combination of Gojek and Tokopedia, GoTo is a technology company with the leading marketplace in Indonesia. The agreement was the largest ever business combination in Indonesia, the largest between two Asia-based internet media and services companies to date and created an ecosystem that combines e-commerce, on-demand and financial services.

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Image Credit: Nium

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Qlue, a smart city ecosystem provider in Indonesia, said today it has secured an undisclosed amount in Series B financing round, led by KDDI Open Innovation Fund III (KOIF III), a fund supported by Global Brain.

Other participating investors are local VC firm Telkomsel Mitra Inovasi (TMI) and ASLI RI (a biometric service provider), as per a press release.

The Jakarta-headquartered startup will use the capital for expansion into new markets in Asia and develop new solutions. The KDDI investment will help Qlue penetrate into markets such as Japan, Malaysia and the Philippines.

“With this investment, Qlue is equipped with more resources to implement smart city solutions as Indonesia is entering the 4.0 industry era,” said Qlue founder and CEO Rama Raditya.

Established in 2016, Qlue has built a platform cutting-edge technology products leveraging workforce management, Artificial Intelligence (AI), and Internet of Things (IoT).

Also Read: How the Internet of Things is making the world a safer haven

It has developed citizen reporting app QlueApp (for the government), in addition to QlueVision (computer vision technology), QlueWork (mobile workforce management), QlueDashboard (all-in-one platform for visualising data), and QlueSense (IoT-based technology).

The firm is working with the Jakarta government on its first smart city concept in Indonesia. Over the past four years, claims the firm, this partnership has helped in reducing potential flood points by 94 per cent and improving government performance by 61.4 per cent.

In the domestic market, Qlue will further expand into healthcare service, industrial area management, hospitality, property developers, and state-owned enterprises.

Currently, Qlue has more than 70 clients across government and private sectors. They include government institutions and agencies, disaster relief organisations, satellite cities, and private companies in various industries.

Its previous investors are Prasetia, MDI Ventures and GDP Ventures.

Director Indonesia Office Representative Global Brain Sho Ikeda said: “Qlue provides a smart city platform that enables one-stop centralised control of the detection, analysis, and solution of urban problems through advanced technologies such as AI and IoT. Qlue’s products, which provide a comprehensive approach to various issues, contribute to enhancing urban functions across Indonesia through collaboration with many local governments, ministries, and private companies, including the capital city of Jakarta.”

Also Read: This Singapore startup is set to turn Myanmar’s Yatai City to a blockchain-powered smart city

TMI CEO Andi Kristianto added: “Telkomsel consistently develops digital trifecta that embraces digital connectivity, digital platform, and digital services for inclusive and sustainable digital ecosystem. Our investment will improve people’s digital lifestyle experience and encourage cross-sector digitalisation through productivity improvement and higher efficiency, and open up wider innovation opportunities.”

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Image Credit: Qlue

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Large scale economic shocks like those that preceded the Coronavirus pandemic of 2020 occur once every few generations, bringing about unforeseeable change that is both permanent and far-reaching in nature. In the race to curb mobility to contain the COVID-19 spread, the global economy had ground to a halt expeditiously.

Singapore’s GDP shrunk by 13.2 per cent prompting a reduction in the GDP growth forecast. Prior to co-founding TranSwap, I myself was no stranger to the implications of large-scale economic disruptions, having conceptualised this company during yet another relatively difficult period in Singapore: The Asian Financial Crisis of 1997.

Having already experienced turbulent financial circumstances, the COVID- 19 pandemic was like history repeating itself albeit on a much greater platform. The only variable that changed was that this time around, there was technology on our side to allow operations to resume. Sure, there were initial kinks, but technological advances sanctioned a relatively greater degree of control and flexibility than matters were back in 1997. For many people, the uncertainty and initial response to COVID-19’s changing landscape set precedence for their ability to cope.

While globally it seemed to be that we were all in the same choppy seas, over the span of a few months, if not weeks, it was apparent that not all businesses were on board the same boat. The differences in the treatment to SMEs was glaring; Interest rates were slashed to new record lows with Central Banks channelling greater efforts into printing money.

The scale at which monetary interventions took place resulted in seemingly optimal financial conditions of the market and yet many companies are still suffering the repercussions of the whiplash brought about with the onset of the pandemic and. When it comes to funding, however, SMEs in the Southeast Asian region do not have access to the lion’s share but instead are at the mercy of the shorter end of the stick.

Also Read: Mekari acquires Qontak to strengthen its end-to-end offering for SMEs in Indonesia

SMEs contribution to the economy

SMEs comprise the largest numbers of businesses globally and are paramount contributors to generating employment opportunities and advancing global economic development. They represent about 90 per cent of businesses and generate at least half the employment opportunities worldwide.

In emerging economies, national income (GDP) constitutes 40 per cent of earnings by SMEs. In Singapore itself, SMEs gives rise to approximately 48 per cent of Singapore’s GDP and employs about 65 per cent of its workforce despite their vulnerability to the ever-changing business climates.

Gaining strength from numbers, just in the last half of a decade, SMEs have provided employment opportunities to 70 per cent of the workforce, thus providing a source of income for the skilled, semi-skilled and even unskilled. At the very core of an SME operations, is its dispensability and the only way that can be defeated is through innovation.

The government, too, attempts to catalyse SME operations through various schemes, grants and incentives such as the Technology Adoption Program (TAP) and Startup SG Tech that allow for companies that showcase the potential to develop proprietary technology solutions and incorporate a scalable business model.

Speaking from first-hand experience as a pioneer figure in the fintech scene in Singapore, it is clear to me that In a rapidly evolving digital world, speed acts as the key determinant of success. With the provision of innovative lending models and scalable funding structure, it is imperative that small enterprises be assisted to stay afloat during the crisis to better be able to position themselves to be innovative.

Furthermore, the fintech industry has a lucrative future and potential alliances have the ability to benefit SMEs in the coming years. After all, when technology finally caught up to complement our vision for easy and safe FX transactions at low costs, we leapt at the opportunity to found TranSwap.

Today, TranSwap is the leading cross-border payment platform for businesses and everyday people in Singapore. With its convenient solution reducing FX costs and complexity, TranSwap empowers businesses to grow globally. TranSwap is fully regulated and licensed in Singapore, Hong Kong, and Indonesia and currently facilitates FX payments in more than 180 countries.

Also Read: KoinWorks hits profitability, securing 100k SMEs as early adopters for its NEO product

Problems in SME Funding

One of the greatest challenges faced by SME when competing for funding resources, however, is the tendency to fall behind due to its limitations in size and the lack of reliability. As a result, SMEs across the region are not equipped with the necessary means to maintain or retrieve further finances. In addition, Southeast Asian financing is met with one of the most notorious financial inclusion in the world.

It is estimated that seven in 10 adults either have no access to long-term saving plans or credit cards and are underbanked or do not even have access to bank accounts.

Technology can bridge the gap between access to finance and business development. Fintech solutions are all about keeping up with the changing times and they have made it possible for people to make digital transactions a more mainstream method and the ease with which this can be done enables stronger insights into creditworthiness and better access to vital finance.

Why do some industries do better than others?

Due to the responsibility of SMEs to drive an economy forward, their operations cannot be left to chance and requires detailed and sound plans to be more aware of strategic operations and at a time like this, to make compelling financial decisions.

The lack of effective communication is a major determinant of SMEs failing post-COVID-19 pandemic as employee engagement took a nosedive. In a study conducted by McKinsey, it was found that 70 per cent of employees attach their sense of purpose to the work that they are required to do.

Companies that have failed to acknowledge the efforts of individuals in their workforce are jeopardising themselves as COVID-19 has subsequently caused members of the workforce to reflect on their purpose in life. The lack of purpose has led to reconsiderations of the kind of work they do, thereby compromising engagement and productivity, leading to further internal changes within the company.

To remain afloat, companies today have to channel efforts into appeasing their stakeholders. While certain industries such as Food & Beverage have flourished, others haven’t been quite as lucky. Global manufacturing has further declined, border controls and logistic service disruptions have dampened operations of international supply chains.

Furthermore, tourism and related businesses have been directly impacted by border closures and quarantine requirements, and some businesses will not survive this period without public support- financial or otherwise. An icon in itself, Singapore Airlines (SQ) has taken a reduction of 99 per cent of its passenger traffic due to COVID-19, efforts have fully throttled to maintain its responsibilities to stakeholders and employees alike; whether it’s engaging stewardesses as safe distance ambassadors or emulating in-flight experiences while grounded, sentiments of locals, staff and the government alike towards to SQ are highly positive.

Also Read: Post-pandemic, we are going to see a slim unicorn

The repercussions of COVID 19 is a healthcare-driven shock in which none of us are immune until everyone is immune. Industries engaging in myopic inertia instead of adopting more agile practices are more likely to compromise their operations. Stimulus packages encourage companies to simultaneously stay afloat and make necessary changes within the optimal span of time.

However, some SMEs have translated the stimulus package support into winding up businesses too quickly or expanding even faster than necessary, resulting in unsustainable growth. Companies need to maintain the balance between being realistic and optimistic as once there is a solution to curb the spread of COVID, the economy can move quickly.

Considerations to include in business models to reduce vulnerability

It is of vital importance that companies recognise whether they need to be focusing on measures to tackle temporary efforts or engage in stringent tactics to induce structural changes. Now, more than ever, making the right decision at the right time is highly warranted. Good decisions are fundamentally rooted in good decisions and despite uncertainties about what the future holds, businesses have to consider what the future could potentially look like.

TranSwap is experiencing this second wave of demand for business-focused solutions, as we are finding it easier to convince businesses to use our services as compared to the past when businesses would question if they can trust such platforms with their money.

Now, the businesses that we work with have made us an integral part of their payments system, incorporating 120 different currencies globally. This did not happen overnight but took a while for us to facilitate trusting relations with clients who appreciate knowing their money is in good hands.

Preparing for recovery allows for business leaders to systematically think through various possibilities and how their business could be affected by the onset of COVID 19 and the threats faced by the organisation in light of potential further deterioration. One of the most glaring disadvantage SMEs have when pitted against MNCs is the lack of data available.

Systematic planning allows greater insights into operations and better allocation of resources to be more informed of strategic decisions their businesses ought to adopt in order to successfully mitigate risks.

Also Read: Future-proofing Singaporean SMEs for a stronger digital future

Furthermore, being vocal about social impacts and honest engagement with stakeholders allows for all parties involved to be aware of the implications of business decisions, i.e investment and public policy.

This allows for businesses to have greater communication with their customers whose acknowledgement of responsibility towards their stakeholders can aid in making fruitful decisions while simultaneously tapping into a new market. This also shows the firm’s willingness and ability to adopt technologies and business models that are needed to be successful in the post-pandemic world.

Lastly, it is imperative to design frameworks that allow the monitoring and where necessary, the reviewing of programmes to ensure they continue delivering and achieving the intended income. Demonstrating an enthusiastic approach towards measuring and improving on impact is crucial for investors to garner the necessary confidence required to maintain investment levels.

While government initiatives are praiseworthy, some businesses also rely on non-governmental organisations who are often faced with challenging opportunity costs and adopting a far-sighted approach and identifying ineffective measures could be a critical element to boost investor confidence.

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