Indonesia, the largest economy in Southeast Asia, is a driving force within the region, accounting for 41 per cent of ASEAN’s population and 37 per cent of its economic output. Despite significant hurdles, including the 1997 Asian Financial Crisis, the impacts of COVID-19, and persistent structural challenges, we believe Indonesia’s economic growth remains firmly positive.

A key strength lies in its demographic profile—between 2030 and 2040, Indonesia’s productive-age population (15-65 years) is expected to peak at 198 million people, making up over 60 per cent of the total population.

Challenges to growth

Despite its vast potential, Indonesia faces several challenges that need to be addressed. These include corruption, regulatory inefficiencies, and policy barriers that hinder business growth and foreign investment.

Indonesia ranks 115th out of 180 countries on Transparency International’s Corruption Perception Index, highlighting the need for greater efforts to tackle corruption if the country is to attract more foreign investment. Furthermore, an Economist Intelligence Unit (EIU) study ranks Indonesia 58th out of 82 countries for its regulatory environment, underscoring the need for deeper structural reforms to unlock sustainable growth.

Investment and digital transformation: Catalysts for growth

Foreign Direct Investment (FDI) is vital to Indonesia’s success. In Q1 2024, FDI grew by 15.5 per cent, reaching IDR 204.4 trillion (US$13 billion), signalling strong investor interest. Indonesia aims to attract US$545.3 billion in investments by 2040, focusing on industries aligned with the global transition to net-zero emissions.

A major area of focus is the electric vehicle (EV) and green industries, with projected investments of US$30 billion in processed metals and US$45 billion in EV production by 2028.

Navigating challenges with digitalisation

One of Indonesia’s most significant opportunities lies in digitalisation. With over half of its population under 30, the country is ripe for a digital revolution. The government has laid out a clear vision to leverage technology, with policies that support infrastructure development and digital transformation.

The rise of Indonesian unicorns like Gojek and Tokopedia showcases the success of the tech sector, and Southeast Asia’s digital economy is expected to reach nearly US$1 trillion by 2030, with Indonesia poised to capture a significant share of this growth.

Also Read: Indonesia’s startup showcase 2024: The launchpad for Southeast Asia’s tech future

Digitalisation offers Indonesia a unique opportunity to bypass traditional economic constraints and unlock new avenues for growth. The EMAS 2045 initiative exemplifies the government’s long-term vision to position Indonesia as a global innovation hub, driving economic expansion beyond traditional industries.

Sustainable growth and the role of venture capital

Venture capital (VC) has become a key driver of innovation in Indonesia. As the country transitions to a digital and knowledge-based economy, VC investments have surged, particularly in the tech sector.

Approximately 46 per cent of Indonesia’s VC funding comes from foreign investors, primarily from developed markets like the US and Japan. This influx of capital will continue supporting the development of Indonesia’s growing tech ecosystem, fuelling start-ups and innovation-driven enterprises.

Conclusion: A bright future ahead

Despite the challenges, Indonesia’s growth prospects remain strong. With a focus on boosting investment, improving governance, and expanding its digital economy, we believe that Indonesia is well on its way to achieving its goal of becoming one of the world’s top 10 economies by 2045.

However, the road ahead will require sustained effort, the right leadership, and strategic reforms. If done well, Indonesia is set to emerge as a global economic powerhouse in the decades ahead.

To further explore Indonesia’s growth potential and connect with key players driving this transformation, join us at the InvestIdea Tech Showcase Day on November 29, 2024, in Singapore.

This event will spotlight innovative startups and investment opportunities within Indonesia’s dynamic tech ecosystem. Don’t miss the chance to be part of Indonesia’s journey toward sustainable growth. Sign up here. 

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LINE Thailand has launched a new scale-up programme to support high-potential startups in the country. LINE SCALE UP was officially announced at the LINE Thailand Developer Conference 2024.

The programme will provide startups with resources and tools from the messaging giant’s ecosystem, valued at up to 4 million Thai Baht (~US$115,000) per team.

The programme focuses on four key areas:

LINE Platform: Startups will receive credits to use the tech company’s user acquisition tools, including the LINE Official Account, LINE Ads, and LINE Messaging API. They will also receive up to 5 million free messages per month for a year.

Also Read: SCB 10X unveils Thailand’s first purpose-bound money initiative

LINE Networks: Startups will get access to the company’s customer and partner networks across Thailand. This will help them expand their reach and find new partnerships.

Consultation: LINE specialists will provide technical and business consultation to the startups. This will help them improve operational efficiency and meet specific business needs.

Partnership: Startups may have the opportunity to partner with LINE Thailand on new service developments. Select startups may also receive funding from LINE and its global affiliates.

The programme is open to Thai and international startups in the seed to Series A stages. To be eligible, startups must have existing products or services with a proven user base.

Interested startups can apply for the program at www.linescaleup.com or through the LINE Official Account: @line_scale_up.

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The goal of marketing is to make more money than you spend. That may seem like a simple statement, but it’s actually not so simple to achieve! There are many different models for how you can go about this.

In this article, I will go into detail about some of the most common GTM (go-to-market) models that startups use at each stage of their lifecycle and provide examples from my own experiences with startups and Fortune 500 companies alike.

Determining the market needs

The process of determining whether the needs of a target market can be addressed with a product and delivering that product to that group

In the early stage of a startup, you should be focused on finding product-market fit. This means that you need to find the right customers for your product, and those customers have to be willing to pay for it.

It’s not enough that people like your idea; they have to buy it from you at a price point where you can make a profit.

But don’t worry about pricing or profit now. This is called “scalable”. You need to be able to scale later for scaling today, not just put off profitability indefinitely (or worse yet, kill profitability altogether).

The startup journey of seed to series A

You may be wondering how to price your product. The simple answer is to ensure you’re covering your costs. But that doesn’t mean you need to price based solely on the cost of producing your product.

Pricing is also about positioning and differentiation in the market and ensuring that customers value your product enough to pay for it. And after all, if they don’t value what you’re selling them, then they won’t buy!

Your pricing strategy will depend on several factors, including:

• The number of customers who are willing to pay for what you offer (demand).
• Your cost structure (what it costs for each unit).

Focusing on building a great product

Don’t bother doing the things that will be a drag on your company when it grows. Focus instead on building a great product and finding people who love using it as much as you do!

In the early days of your startup, you should do things that don’t scale. This is because there’s no point in scaling something until it’s proven to work.

The focus is on customer acquisition and product market fit, not on sales and marketing or following best practices in those areas. You should still be able to acquire customers at a reasonable cost but maybe not as fast as later on when you’re at scale.

Also Read: Building a business isn’t Ximple. This is what my startup journey taught me

Customer success will also play an important role here since they will help train new hires who are coming in after each hiring cycle (new batch of employees). Customer retention is a high priority because most startups are acquired by larger companies when they get to that point where they need more funding than what their current cash flow can support

A company’s growth may be plotted on a pipeline graph

The pipeline model, which is designed to help you find a way to get customers, has several key components:

• A lead generation system
• A messaging system
• A sales process that your team can scale as it grows

The idea is that you have a steady stream of leads coming in from your marketing efforts and that you can convert those leads into paying customers. In this stage, your focus will be on closing deals more quickly and efficiently than ever before.

Suitable support services

After you’ve managed to get your series A, you have a lot of things on your mind. The business is still growing and evolving, so now’s the time to refine some aspects of your product or service.

You’re also building out key functions like customer support or training, which requires a lot of resources. As a result, it’s important that investors consider the team’s ability to deliver on these new responsibilities before they write another check.

There is no one go-to-market model, it changes at every stage of the startup process.

• You might have been taught that GTM models are set in stone, but they don’t have to be. As your company progresses through its lifecycle, the GTM model will change to match the needs of your business at that stage.
• This shift can be subtle or drastic depending on what phase of development you’re at. If you’re a startup with no audience, then getting people into your funnel is going to be more important than anything else. So we’d recommend using an acquisition-focused GTM model first before scaling up and investing more in things like Retention or Activation later on down the line.
• Once you’ve gotten some traction and customers are coming through your funnels (or just starting), using channels like ads and email marketing should become more effective as well: conversion rates increase when there’s already awareness about a product being available for purchase which means that getting people familiarised with what’s being offered before asking them for money becomes super important!

Final thoughts

It’s important to remember that when you do have a GTM strategy, it will need to evolve with your startup. You can’t expect the same tactic to work at different stages of your startup process, so keep an eye on changes in your business and make sure you stay ahead of them.

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This article was first published on September 2, 2022

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As of October 7, 2024, Temu, the online marketplace operated by Chinese e-commerce company PDD Holdings, is present in 82 countries and territories. It was anticipated that Temu would expand into Vietnam by late September, and by mid-October, the platform gained significant attention in Vietnam due to its marketing activities—similar to the strategies used in other market openings.

Looking at Indonesia, another country working to protect its domestic industry from ByteDance and PDD, I’ll explore the opportunities and challenges for the local market in light of Temu’s expansion into Vietnam.

Who is Temu?

With the backing of tech giant Tencent Holdings, PDD extended its domestic experience with Pinduoduo and embarked on a grand overseas push with Temu. Temu’s rapid global growth once made its owner, US-listed PDD, surpass Alibaba and JD.com, becoming China’s most valuable e-commerce company. 

Temu has grown in more than 80 countries since its establishment in September 2022. PDD Holding’s ecosystem has generated revenues totalling US$113,355 million, as indicated by the Q2 2024 report of Temu’s parent company. Temu is a formidable rival in the e-commerce sector, having effectively executed the three key growth drivers: price power, product range, and operational efficiency.

Temu’s aggressive footprint expansion is evident as the market opening playbook has been formulated. Over a year after its entry into the Southeast Asia market with launches in Malaysia and Philippines, Temu expanded to Thailand in July 2024, showing a renewed focus on the region. Temu’s expansion into Vietnam has been anticipated.

Vietnam: The 82nd country added to Temu’s market-entry playbook

Vietnam had the fastest YoY GMV growth rate in Southeast Asia e-commerce at 52.9 per cent, surpassing the Philippines as the third largest market in the region with US $13.8B GMV after Indonesia and Thailand, according to the Momentum Works report.

Vietnam’s proximity to China provides advantages in logistics. Many Chinese warehouses have been constructed at the border gate with Vietnam since the livestream phase driven by social commerce surge. 

Temu quietly entered Vietnam at the outset of October. Temu’s social marketing, promotions, and broad affiliate program gained prominence soon after. Prior to Vietnam, despite the low-key openings, Temu’s low prices and 90 per cent discounts, rapidly grabbed attention in the Philippines, Malaysia, and Thailand as well. What we have observed in Vietnam in recent days is already Temu’s market-entry formula.

Also Read: How to unlock the potential of conversational commerce in Asia Pacific

Let’s delve more into opportunities and challenges for Vietnam’s domestic market regarding Temu’s Vietnam expansion.

Vietnam is up against the wall in the fierce e-commerce race with regional giants.

Only when more Vietnamese enterprises are involved in Temu’s supply chain will there be benefits for the domestic economy. Otherwise, cash flow is leaving the country. Local consumers’ cash is spent on regional platforms, foreign suppliers, foreign shipping, and on other foreign middle-layer parties.

Domestic manufacturing businesses face pressure: pricing, and limited consumer spending, now exacerbated by price competition.

Local marketing stakeholders could leverage Temu’s marketing budget at this market-entering stage; however, the benefits are short-term and depend on the company’s strategy, which can be adjusted anytime to serve its objectives. These people are PDD; they possess the capacity to utilise money and perform extremely effectively and efficiently. 

The incumbent market’s business strategy is centred on ROI. Earlier this year, TikTok Shop reduced subsidies and increased commissions across several SEA countries, indicating a shift towards profitability trends. 

To seize the opportunity, strengthening Vietnam’s e commerce ecosystem is demanded

To leverage the economic benefits and maintain the country’s economic ecosystem, there is a need to enable more domestic players to participate in the supply chain, including brands, enablers, payment solutions, delivery services, packaging, aggregators, etc. This requires the capacity of domestic companies and the necessary opportunities & support of the country’s strategy for local businesses and startups.

While it improves the current stagnant employment situation by generating additional job opportunities, it is crucial to develop mid-to high-level personnel with experience for the long-term growth of the Vietnamese workforce.

The competition of Bytedance, PDD, SEA, and Alibaba drives the growth momentum of the e-commerce economy in Vietnam. To seize the opportunities outlined, it is crucial to have the country’s support for investment and financing for local businesses.

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Leveraging Silicon Valley Networks: Zed’s Path to Growth and the Long Term Impact to Philippine Ecosystem

As part of Echelon Philippines 2024, the fireside chat titled “Leveraging Silicon Valley Networks: Zed’s Path to Growth and the Long Term Impact to Philippine Ecosystem” examined how Zed has successfully navigated two ecosystems to drive innovation and growth. Moderated by Justin Chin, Head of Business Development at e27, the session featured Steve Abraham, Co-Founder of Zed and Danielle Cojuangco Abraham, Co-Founder and Co-CEO of Zed.

The discussion delved into Zed’s journey as a neobank focused on providing modern financial solutions for young professionals in the Philippines. Zed leverages Silicon Valley’s action-oriented culture and innovation-driven networks while adapting to the unique challenges of the Philippine market. The company’s offerings, including a MasterCard titanium credit card with no fees and a user-friendly app, cater to a tech-savvy demographic.

Also Read: Echelon Philippines 2024: Expanding Web3 applications for real-world challenges

Key themes included the importance of trust in co-founder relationships, the need for a problem-focused approach, and strategies for overcoming bureaucratic challenges. Zed emphasised aligning business models with customer success to build long-term impact.

Looking ahead, Zed plans to expand cardholder access and invest in talent development within the Philippine tech ecosystem, aiming to significantly increase credit card penetration while contributing to the region’s innovation landscape.

Watch the session video above to learn more about these insights and the strategies shaping the future of entrepreneurship.

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In the vast digital landscape, where attention is scarce, and authenticity is paramount, brands have found a powerful tool to captivate and unite their audiences: video content.

This medium, akin to a modern-day canvas, has become the artistic conduit through which brands paint narratives that resonate, inspire, and forge communities. The symphony of visual storytelling has ushered in a renaissance of community building, and its notes are reverberating across the digital canvas.

The rise of the visual vernacular

Just as art has historically transcended language barriers, video content has become the universal vernacular in the digital age. It’s the Glossier commercial that doesn’t just promote skincare; it evokes a lifestyle that speaks to a global community of beauty enthusiasts. Video’s ability to transcend linguistic and cultural boundaries lays the foundation for building communities that stretch across borders.

Empathy in every frame

The heart of community building lies in empathy—the ability to connect on a human level. Video, with its emotive prowess, infuses every frame with the raw essence of storytelling. Patagonia, for instance, doesn’t just showcase outdoor gear; its videos are a narrative of environmental stewardship, appealing to a community that rallies around sustainable living.

Unfolding tales: Narrative evolution

In an era where brand loyalty is cultivated through shared values, the video unfolds tales that align with these beliefs. Airbnb, through its “Experiences” series, paints narratives of authentic travel, weaving tales of exploration and cultural immersion. These narratives mirror the experiences of their community members, fostering a sense of belonging.

The collaborative canvas: UGC and co-creation

Just as art galleries celebrate local artists, brands celebrate their communities through user-generated content (UGC). Starbucks’ White Cup Contest invited customers to showcase their doodles on the iconic white cup. The result was a collaborative masterpiece, where the brand’s canvas became a testament to the creativity of its community.

Also Read: Tried-and-tested marketing strategies for startups across all stages in Singapore

Live streaming: The new performance art

Live streaming has emerged as the digital equivalent of performance art—a captivating display that unfolds in real-time. Brands like Sephora have harnessed live streaming to engage their beauty communities, offering tutorials, Q&A sessions, and product unveilings. This interactive spectacle creates an intimate space for real-time connections, transcending the confines of screens.

Empowerment through participation

Much like an art workshop, video content invites participation. The viral sensation #IceBucketChallenge not only raised awareness about ALS but also invited countless individuals to become part of a global movement. This sense of empowerment through participation is a hallmark of community building in the digital age.

Inclusive visuals: Diverse representations

Just as art galleries celebrate diversity, video content is a canvas for inclusive storytelling. Brands like Nike have ignited conversations around representation, crafting videos that spotlight athletes from all walks of life. This not only resonates with diverse communities but also fosters a sense of unity through shared values.

Data-driven artistry: Insights and iterations

Every brushstroke matters in visual art, just as every frame counts in video content. Data, the artist’s palette, guides brands to create resonant narratives. Platforms like Instagram Insights and YouTube Analytics provide brands with insights into audience behaviour, enabling iterative refinement of their storytelling craft.

Augmented realities: The digital gallery of the future

As art evolves with technology, video content embraces augmented reality (AR), creating immersive digital galleries. Imagine trying on virtual clothing or experiencing products before purchase. IKEA’s AR app allows customers to visualise furniture in their spaces — a glimpse into the future of visual storytelling and community engagement.

The tapestry of tomorrow: AI-infused narratives

Artificial intelligence (AI) is poised to interweave itself into the fabric of video storytelling. AI-powered algorithms can analyse audience preferences, crafting narratives that resonate with individual tastes. Just as music streaming services curate personalised playlists, AI will curate visual narratives that uniquely resonate with each viewer.

In this renaissance of visual storytelling, brands wield the brush of video content to craft masterpieces that transcend mere promotion. These digital canvases evoke emotions, spark conversations, and cultivate connections.

As technology continues to shape this evolving canvas, the symphony of visual storytelling will echo with ever-deepening harmonies, crafting communities that stand the test of time. It’s a renaissance where brands are not just marketers; they are modern-day artists, painting narratives that unite and inspire the digital world.

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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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This article was first published on September 5, 2023

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Dear reader,

The startup ecosystem in Southeast Asia is undergoing a significant transformation, as highlighted in Jungle Ventures’ The First Cheque Report 2024. While Singapore and Indonesia have long dominated the region’s seed investment landscape, Vietnam and the Philippines are emerging as dynamic new players. This shift is a testament to the evolving priorities of investors and the growing maturity of these markets.

Singapore retains its lead, accounting for over half of Southeast Asia’s seed deals, thanks to its business-friendly policies and strategic positioning as a gateway for regional expansion. Meanwhile, Indonesia, the region’s largest economy, holds second place but now faces stiff competition.

Vietnam and the Philippines, fueled by economic growth, young and tech-savvy populations, and supportive government initiatives, collectively surpassed Indonesia in capital deployed during the first half of 2024. Their rise reflects broader trends in Southeast Asia, including increasing local investor activity and the adoption of cutting-edge technologies.

As Vietnam and the Philippines continue attracting investments and fostering innovation, they signal a new era for the region’s startup ecosystem—one defined by diversity, resilience, and untapped potential.

Sainul,
Editor.

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NEWS & VIEWS

Vietnam and Philippines challenge Singapore and Indonesia in startup investment
In H1 2024, Vietnam and the Philippines, along with other emerging Southeast Asian markets, collectively surpassed Indonesia in capital deployed for the first time.

Atome Financial secures access to US$200M credit facility to drive SEA expansion
HSBC led this round through its ASEAN Growth Fund; The funding will primarily be used to expand Atome’s existing profitable portfolio and products, with a focus on lending and the pay-later-anywhere card.

Singapore’s Podium raises US$15.2M in Series A-1 round led by Autodesk
The cloud-based digital platform will use the money to accelerate growth in key markets, including Singapore and Australia, where it’s in advanced discussions with property developers, design consultants, supply chain partners and government agencies.

Zepto raises another US$350M amid retail upheaval in India
Indian family offices, wealthy individuals, and asset manager Motilal Oswal invested in the round, which maintains Zepto’s US$5B valuation; Quick-commerce sales in India are set to surpass US$6B this year.

FTX CTO Gary Wang avoids prison time
U.S. District Judge Lewis Kaplan today. Judge Kaplan praised Wang’s cooperation with federal authorities; Wang testified against former FTX founder and CEO Sam Bankman-Fried at his trial last fall; Wang pleaded guilty to four felony counts of fraud and conspiracy.

India’s Arzooo, once valued at US$310M, sells in distressed deal
The deal comes after Arzooo engaged with several startups exploring potential merger opportunities; Arzooo provided a digital bridge to India’s small electronics retailers so they could compete with e-commerce giants and large retail chains.

SEA’s BNPL boom: Gen Z, digital payments drive a US$53B market by 2027
Indonesia is projected to lead the market with US$16.8 billion in BNPL transactions by 2027, a 209 per cent increase from 2024.

Smaller in numbers, bigger in impact: Female founders secure larger seed rounds
While female-founded firms in SEA raised only 1.3% more on average than the overall average, their median round size is significantly higher.

Locad scores US$9M funding to scale AI-driven logistics and expand to Middle East
Lead investors are Global Ventures and Reefknot Investments; Locad enables e-commerce brands to grow their omnichannel business and automatically store, pack, ship, and track orders across their distribution channels.

Alibaba merges domestic, global e-commerce units
The new e-commerce group will integrate existing Alibaba operations such as Taobao and Tmall Group, Alibaba International Digital Commerce, 1688 Marketplace, and Idle Fish.

GXS Bank set to launch business banking services in 2025
The launch will begin in Singapore, Malaysia, and Indonesia, with progressive expansion planned throughout the year; GXS announced that its growth rate from January to September 2024 has doubled compared to the same period last year.

Oneteam nets US$2.6M funding to revolutionise SME succession planning in Singapore
Wavemaker Ventures led the round; Oneteam’s solution involves acquiring businesses from retiring owners and gradually transitioning them into employee-owned entities.

LINE Thailand launches scale-up programme to support local, global startups
The LINE SCALE UP programme will provide startups with resources and tools from the messaging giant’s ecosystem, valued at up to US$115,000 per team.

FEATURES & INTERVIEWS

Driving semiconductor innovation: AMD’s vision for AI and sustainability in Singapore
‘We’re driving open-source innovation for AI ecosystems because we feel that is the best path forward for the industry,’ says AMD’s Peter Chambers.

TRIREC Founder Melvyn Yeo: Bifurcation of investments will continue to happen in 2025
TRIREC has achieved the first close of a new fund targeting energy access for underserved rural communities in Africa, India, and SEA.

Echelon Philippines 2024: How Angkas is changing the urban mobility landscape
The Echelon Philippines session explored how Angkas is transforming urban mobility and empowering motorcycle riders in the Philippines.

How intlife is helping Malaysia combat energy wastage at home
Initially focused on developing small home ecosystems, intlife-equipped properties with IoT sensors and mobile app controls.

FROM THE ARCHIVES

Beyond the union: Understanding the complexities and impacts of M&As
More often than not, M&A between organisations involves more stakeholders and impacts more people than a marriage between two families.

A guide on the go-to-market models that startups use
It’s important to remember that when you do have a go-to-market strategy, it will need to evolve with your startup.

Streaming the dream: How live streaming technology can increase access to brands
Live streaming is a valuable technology because it has the capacity to offer immediate feedback to questions posed by a consumer.

Pre-launch marketing is a tease that works, how to get it right?
Here’s how pre-launch marketing for alternative proteins during the R&D phase helped create a massive demand for the product.

Data-driven financial services, a bigger imperative in a post-pandemic world
Becoming data-driven is imperative for any business of today and proves to be especially so for financial firms in the post-pandemic world.

To Voice AI or not – The changing face of customer experience
To remain competitive and relevant in an increasingly digital world, it is necessary for brands to stay open to the immense potential of voice technology.

Fundraising with a purpose: Why bootstrappers’ mindset matters
The bootstrappers’ mindset consistently proves its value, integrating profitability, resource optimisation, and fiscal responsibility.

Financial literacy in Southeast Asia is set to match industry growth
Financial literacy in the region hardly corresponds to the development of the industry, however, there is a good chance to balance the situation.

What businesses should take note of before taking the M&A leap
Prior to entering into M&A negotiations, it is critical that you are clear on your objectives and the key terms of the deal.

THOUGHT LEADERSHIP

Indonesia’s economic struggle and resurgence: A nation poised for sustainable growth
Despite challenges, Indonesia’s growth remains strong, aiming to be a top 10 economy by 2045 with investment and digital focus.

Unlocking Malaysia’s data centre potential: The critical role of ecosystem partnerships
Malaysia’s data centre expansion can help to spearhead its ICT growth and attract more companies to setup their offices locally.

5 essential strategies for AI-powered hyper-personalisation in marketing to drive business growth
Deep market understanding and leveraging AI to create personalised experiences will drive business growth in the future.

Decoding B2B buyer intent: The 3 questions every tech startup marketer needs to address
Understanding buyers’ true needs, their purchasing journey, and the signals of their readiness to engage is essential.

Bridging the digital divide: Addressing Malaysia’s skills gap
Uncover the digital skills gap in Malaysia and its impact on the country’s technological and economic growth.

Financial models for Web3 startups: Guiding principles for success
By comprehending the dynamics of the Web3 landscape, startups can leverage the power of decentralised technologies in their financial models.

Temu takes on Vietnam: The impact on domestic manufacturing and marketing
Explore Temu’s global expansion and its impact on Vietnam, highlighting opportunities and challenges for the local industry.

How local payments are unlocking digital commerce’s potential in Latin America, Africa, and India
Payments are no longer a passive component of commerce; they are now active agents in societal transformation.

The post Ecosystem Roundup: Vietnam, Philippines lead SEA’s next growth wave | Atome secures US$200M credit facility | FTX CTO Gary Wang avoids prison time appeared first on e27.

Seed capital deployment in India and Southeast Asia (SEA) has stabilised at around US$1.5 billion per year, reveals a Jungle Ventures report released on Thursday.

This follows a period of significant growth, with deployment reaching US$1.9 billion per year previously and a peak of US$3.2B in 2022.

This stabilisation is occurring despite a drop in deal count to 1,200 annually. This is down from 1,700 deals in the previous year and a peak of 2,600 in 2021.

Also Read: Smaller in numbers, bigger in impact: Female founders secure larger seed rounds

Jungle Ventures’s First Cheque Report 2024 further reveals that seed investment amounts and deal counts in India have been decreasing since 2022 but are showing early signs of stabilising. The decline in both deal count and funding amount has slowed considerably in the first half of 2024 compared to previous years.

Notably, deal counts continue to decrease while investment amounts are nearing stabilisation. Median round sizes have increased significantly, reaching US$0.78 million in 2024 year to date, surpassing 2021 and 2022 levels. The median round size has seen a 56 per cent increase from 2023 to 2024 YTD.

In Southeast Asia, the overall deal count is stabilising at levels similar to 2020. Invested capital remains high, with 2023 levels significantly exceeding pre-exponential growth periods.

Funding decline is slowing, with a considerable reduction in the rate of decline between H1 2023 and H1 2024. The decline in funding amount slowed from 60 per cent between H1 2022 and H1 2023 to just 6 per cent between H1 2023 and H1 2024. This suggests that Seed investment deployment is stabilising, though deal counts may continue to decrease.

Median round sizes have reached a new high of US$2.2 million in 2024, exceeding the levels of 2021 and 2022.

Capital flowing to new markets:

In India, the deal count remains highly concentrated in Tier 1 cities. However, there is a slight decrease in the concentration since 2023, as more deals flow into Tier 2 and Tier 3 cities.

In SEA, Singapore continues to dominate, accounting for 54.4 per cent of seed deals. Indonesia holds the second largest share but is being challenged by other SEA markets, particularly Vietnam.

Also Read: Shifting tides: Vietnam and Philippines challenge Singapore and Indonesia in startup investment

H1 2024 has been especially exciting, with other SEA countries collectively surpassing Indonesia in capital deployed for the first time. This is attributed to ongoing efforts to support Seed funding in a traditionally underserved ecosystem.

Rishab Malik, Partner at Jungle Ventures, attributes the increase in median round sizes to investors deploying capital more selectively, choosing to “double down” on strong business models.

The report suggests a maturing seed investment landscape in India and Southeast Asia. While overall investment levels are stabilising, capital is increasingly spreading to new markets, which broadens opportunities for startups across the region.

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Image Credit: 123RF.

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Singapore has positioned itself as a leader in artificial intelligence (AI), fostering innovation across sectors through ambitious policies and strategic partnerships. Yet, as the global AI race accelerates, the city-state faces a critical challenge that could undermine its status as a regional hub: a persistent talent shortage.

Rachel Chng, Director of The Ignition AI Accelerator and Head of Accelerator & Partnerships at Tribe, sees Singapore’s potential but emphasises that success hinges on developing and retaining talent.

“While Singapore has made significant progress in establishing itself as a global AI hub, the talent gap is an issue we cannot ignore. Attracting and nurturing skilled AI practitioners will be key to sustaining our growth,” she says in an email interview with e27.

Singapore’s National AI Strategy (NAIS 2.0) aims to triple the number of AI practitioners to 15,000 by 2030. However, demand for AI expertise is outpacing supply, and competition for talent remains fierce globally. The shortage of AI practitioners is particularly acute for roles requiring deep technical expertise, such as data scientists and machine learning engineers.

“Upskilling and reskilling programmes are crucial to address this gap,” says Chng.

While Singapore has implemented initiatives to bolster its workforce, such as partnerships with educational institutions and AI-focused training courses, Chng argues that these efforts must scale up significantly. “We also need to create more opportunities for international talent to contribute to Singapore’s AI ecosystem.”

Rapid advancements in AI technologies further compound the talent issue. Emerging fields such as generative AI and AI ethics require new skill sets, so staying ahead in the talent game demands constant adaptation.

Also Read: How to scale talent in Southeast Asia during unprecedented times

Attracting global talent is a delicate balancing act for Singapore. While the city-state offers a vibrant ecosystem for innovation, competing hubs such as the US and China boast larger markets and deeper talent pools.

Singapore must differentiate itself through its reputation for ethical AI development, advanced infrastructure, and quality of life.

“Public-private collaboration is essential,” Chng notes.

Industry leaders and startups must work together to create a thriving environment that appeals to top talent. Initiatives such as AI Singapore’s SEA-LION project, which focuses on models tailored to Southeast Asian (SEA) contexts, showcase Singapore’s ability to pioneer unique solutions.

These projects also demonstrate the value of working with diverse talent to address regional challenges.

Beyond talent: Addressing structural challenges in AI industries

While talent remains the focal issue, other barriers could hinder Singapore’s ambitions. Scaling AI innovations beyond research to real-world applications requires stronger partnerships between academia, startups, and enterprises.

“Singapore has proven itself as an excellent testbed for AI technologies, but we need to move beyond pilots,” Chng explains. Commercialising innovations and encouraging adoption across industries will solidify the nation’s reputation as a global AI hub.

Another challenge is Singapore’s limited domestic data pool. Effective development often relies on vast datasets, and Singapore’s smaller population size can restrict data diversity.

Also Read: Managing talent in an economic downturn

Regional collaboration, particularly within SEA, is a promising solution. By forming data-sharing alliances, Singapore can access broader datasets while fostering collective AI adoption in the region.

Despite these challenges, Singapore’s efforts to position itself as a global AI hub are noteworthy. Robust infrastructure, including advanced data centres and high-performance computing, underpins its ambitions. Policies such as the Model AI Governance Framework provide clear ethical guidelines, bolstering Singapore’s reputation as a trusted leader in responsible AI development.

But Chng believes talent is the linchpin for long-term success in AI development. “Infrastructure and policies are essential, but without the right people, it’s impossible to translate these into meaningful outcomes,” she asserts.

To address this, Singapore must focus on technical skills and cultivate expertise in adjacent areas such as ethics, policy, and deployment. Chng highlights the importance of fostering collaboration between academia and industry to ensure that research translates into practical applications.

The private sector also has a pivotal role to play. By investing in research, development, and training, companies can contribute to the growth of Singapore’s AI ecosystem. Global partnerships with organisations such as NVIDIA and OpenAI further reinforce Singapore’s position as a hub for innovation.

Singapore’s aspirations to lead in AI hinge on its ability to bridge the talent gap. This requires bold action: expanding education and training initiatives, creating pathways for global talent, and ensuring that careers in the industry are appealing and sustainable for the local workforce.

Also Read: Report: New fintech talents emerge as GenAI becomes increasingly popular in Singapore

Chng remains optimistic. “Singapore has a strong foundation in place. By prioritising talent development and embracing regional collaboration, we can not only maintain our leadership but redefine what it means to be a global AI hub.”

As the global race heats up, Singapore’s success will depend on how effectively it addresses its talent challenges. With the right strategies, the city-state can secure its future as a leader in one of the most transformative technologies of our time.

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Image Credit: Tribe

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Singapore-based digital healthcare provider WhiteCoat Global recently announced its expansion into Indonesia by acquiring telemedicine company Good Doctor Indonesia. According to WhiteCoat founder and CEO Bryan Koh, this union will enable the firm to serve as the first and single touchpoint for all regional health needs.

In an interview with e27, Koh shares more insights into the deal and Southeast Asia’s healthtech sector.

Excerpts:

Indonesia is the largest economy in Southeast Asia. What specific challenges and opportunities do you anticipate in expanding WhiteCoat’s operations in such a dynamic and diverse market?

Indonesia is a vast and complex market, offering tremendous opportunities for growth alongside significant challenges. The country’s large and young population is increasingly tech-savvy, which aligns well with WhiteCoat’s digital healthcare services.

However, Indonesia’s geography presents obstacles to accessing healthcare in remote and rural areas. This creates opportunities for platforms like ours to bridge the gap, providing medical consultations and medication fulfilment to underserved regions.

WhiteCoat has a strong omnichannel healthcare model. How do you plan to balance the expansion of both digital and in-person services as part of your regional growth strategy?

Our strategy revolves around seamless and borderless access to care, both digitally and in person.

Telemedicine offers unparalleled accessibility and convenience. However, certain cases require in-person visits and physical examinations. To address this, our digital platform serves as the first point of contact, with conditions managed remotely online. Cases requiring in-person care are triaged to our network of physical providers, such as clinics and hospitals.

Also Read: One doctor for every family: Good Doctor wants to make healthcare accessible for all Indonesians

In markets like Indonesia, where healthcare access is a challenge, we are expanding our physical network through partnerships with brick-and-mortar providers. This approach allows us to scale rapidly and meet the health and wellness needs of our users more effectively.

You’ve highlighted WhiteCoat’s commitment to technology-driven care. How do you see advancements in AI, data analytics, and telemedicine shaping the future of your healthcare offerings?

AI and data analytics are poised to revolutionise healthcare delivery, enabling a more personalised and proactive approach to patient care.

At WhiteCoat:

• AI-driven diagnostics and decision-support tools will integrate care models across digital and in-person channels, providing practitioners with real-time insights to inform clinical decisions.
• Data analytics allows us to harness patient data (with strict privacy controls), identify healthcare trends, and tailor our services to meet the specific needs of various populations.

These technologies will enable us to address current healthcare demands and anticipate future ones, ensuring we remain at the forefront of healthcare innovation.

Now that you’re working with over 130 insurers and 7,500 corporate partners, how do you plan to leverage these partnerships to scale WhiteCoat’s services and improve accessibility?

Our partnerships provide direct access to a diverse population base across Southeast Asia. We leverage these relationships by:

• Developing targeted healthcare plans for underserved communities.
• Offering affordable telemedicine services as part of corporate wellness programs, reducing costs for employers while improving access for employees.
• Introducing microinsurance policies to make preventive and medical care more affordable.

Additionally, we work with insurers to encourage regular health screenings, followed by virtual consultations that empower users to manage their health proactively and efficiently.

The recent funding round led by Raffles Family Office and participation from MDI Ventures and The SoftBank Vision Fund is a significant boost. How do you plan to allocate these funds to strengthen WhiteCoat’s regional presence?

Also Read: WhiteCoat closes a tranche of Series B round, poised to break even in Singapore

The funds will be used to:

• Accelerate growth in existing markets such as Singapore, Indonesia, Vietnam, and Malaysia.
• Enter at least two additional markets through partnerships and selective M&A opportunities.
• Invest in technology, including GenAI for preventive diagnostics and treatment, upgrading digital health infrastructure, and expanding data analytics capabilities.

What initiatives are you planning to increase access to affordable healthcare for uninsured communities in Southeast Asia?

We’re focusing on:

• Creating low-cost telemedicine plans with our payer partners.
• Collaborating with NGOs and local governments to provide subsidised telemedicine consultations.
• Working with insurers to pass on cost savings to the broader public, making healthcare services more affordable and accessible.

WhiteCoat’s partnerships with insurers and corporates have been key to your success. How do you plan to evolve your B2B strategy post-acquisition?

Our B2B strategy focuses on:

• Deepening relationships with partners by offering customised wellness solutions and value-added services.
• Expanding into new care verticals to drive user volume efficiently.
• Using AI and data analytics to enhance our Think Well mental wellness program and other insurance products, ensuring partners and members derive maximum value.

As the healthcare industry undergoes rapid transformation post-pandemic, what trends do you see emerging in Southeast Asia’s healthcare landscape, and how is WhiteCoat positioning itself?

Key trends include:

• Increased adoption of digital health solutions for primary care, specialist care, and wellness.
• A growing emphasis on preventive care and mental wellness.
• Demand for integrated healthcare ecosystems, providing a seamless experience across digital and physical touchpoints.

WhiteCoat is capitalising on these trends by expanding our digital-first platform, incorporating mental wellness solutions, and ensuring comprehensive care across both digital and physical channels.

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