The AI revolution is here.

But it’s not just about whether we can build machines that can think like humans; it’s also about how we use those machines to improve our lives. We need to ensure that the outcomes for humanity are positive as well as revolutionary, and this will require us to engage in a much broader conversation about what AI means for our future.

AI is only as smart as we are

AI is only as smart as we are. AI can’t replace humans, but it can help us do things better, faster and more efficiently. This is why many companies are looking to integrate AI into their business processes —it enables them to improve the quality of their products, reduce costs and increase revenue by giving them access to data they never had before (such as customer preferences).

AI will not replace creativity or innovation. Instead, it will enable both in ways that have never been possible before — because now there are more tools at our disposal than ever before!

AI gives us access to huge amounts of data from which we can make informed decisions about future plans, but these decisions still need human input in order for them to be effective.

Also Read: Will China lead the Artificial Intelligence game by 2030?

The key point here is this: AI isn’t just about being able to make predictions based on past events anymore — it’s about being able to explore new possibilities based on those predictions!

AI can do repetitive tasks better than we ever could

AI can do repetitive tasks better than we ever could. It’s programmed to do exactly what it’s told, and it doesn’t get tired or bored of doing that same task over and over again. In fact, AI is often programmed to do only one thing — and it does that one thing extremely well.

For example: let’s say you’re trying to teach your dog how to sit on command by rewarding him with treats every time he obeys your command. It will take a lot more time before he learns this trick than if you were using an AI-powered robot instead! Why? Because dogs learn through experience, they don’t understand why we give them food when they do something right (they just know that we always give them food).

Robots are different, though. They can be programmed with specific rules about how things work in order for them not only to learn faster but also to remember everything forever!

This makes them ideal candidates for repetitive tasks such as manufacturing or cleaning houses since there won’t be any need for rest breaks every now and then as humans would require after working nonstop for hours straight without break time breaks during which we might forget some important details about what needs doing next.

Also Read: How to fortify yourself against the risky unknown

AI is only capable of doing what they’re programmed to do

AI is only as smart as we are. AI can do repetitive tasks better than we ever could, but it still needs help from humans to innovate new ideas and concepts.

AI still needs help from humans to innovate new ideas

While AI can be used to do things that humans cannot, such as creating new ideas or coming up with innovative solutions to problems, it still needs human guidance. By providing this guidance in the form of data, you can help guide AI toward innovation and creativity.

AI will make us more competitive

AI will make us more competitive and can help us focus on other tasks.

AI is a tool that can help us get more done. For example, it can automate repetitive tasks, freeing up time so we can focus on other things. The technology also allows us to coordinate with others across the globe to accomplish goals faster than ever before — a benefit for any business looking to increase its competitive edge in a global market.

Final thoughts

There is no doubt that AI will be a big part of our future. It has the potential to change our lives in many ways, but it’s up to us as humans to make sure that we use this technology for good. AI can help us become more competitive and focus on other tasks, but if we don’t use it wisely, then it could end up hurting more than helping us.

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As the dreary funding winter continues to soar, at e27, we are kickstarting a new article series called: Line of Hire to understand the company culture and hiring philosophies of an organisation to empower tech workers with the right growth tools and enable business owners to attract talent.

Kim Nguyen is the co-founder of Recruitery, which provides headhunting and payroll solutions for remote teams. It helps organisations hire, pay, and manage payroll, tax, and compliance globally.

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Given the growing threat of fraud and malicious activities, companies need to take extra precautions to protect their customers and watch their bottom line this year.

Digitalisation has transformed the way commerce and financial services are being delivered and adopted across the globe, even before the pandemic.

However, as everything from banking, paying and working to shopping and entertainment have moved steadily online, the number of data points and gaps for hackers and fraudsters to exploit has risen exponentially.

With businesses becoming increasingly reliant on digital onboarding and having interactions without ever meeting their customers face-to-face, they face a greater risk of fraud that could result in significant financial, operational and reputational loss.

Given this backdrop, here are three key ways businesses can protect themselves in 2023.

Protect against the growing threat of synthetic fraud

Among various types of fraud, social engineering and synthetic identity fraud are becoming increasingly urgent challenges for companies.

Also Read: Safeguarding digital assets through cybersecurity innovations

Synthetic identity fraud is a tactic where fraudsters combine real information, such as a national ID number bought from the Dark Web, with a fake name and birthdate to create fake identities and open accounts.

In Southeast Asia, data breaches in Singapore, Malaysia and Indonesia last year have resulted in the personal data of millions of customers being sold online.

Using this data and exploiting weaknesses in insecure networks and lax customer verification and onboarding procedures, syndicates can easily create synthetic identities at scale, defrauding retailers, government agencies and financial institutions.

Synthetic fraud is particularly challenging to detect as the fake identities are developed over months or even years, just like a Frankenstein monster that is sewn together and built over time. 

These synthetic identities appear like genuine accounts with routine, normal transactions until they “bust out”, for example, by taking out a huge loan or making a very big purchase with no intention of paying back.

When detected, the loan or purchase cannot be traced back to a specific victim because the identity is fictional. 

According to Worldpay’s Payment Risk Survey, 61 per cent of merchants in the Asia-Pacific region have reported experiencing synthetic identity fraud, the highest percentage among global regions.

In the US alone, US$20 billion was lost to synthetic identity fraud in 2020.

Implement a robust but balanced risk management framework

As losses from insecure systems continue to mount, robust identity verification and fraud detection will become imperative for businesses.

There are two main approaches for identity verification for companies doing business digitally: user-centric, which leverages AI methods including optical character recognition and liveness detection to validate documents like passports or driving licenses and verify users; and data-centric, which validates users with information from credible, third-party databases such as credit bureaus.

Also Read: Indonesia’s antivirus reliance: A cybersecurity blindspot

Combined, they comprise one aspect of Know Your Customer (KYC) procedures: the Customer Identity Programme (CIP).

Other due diligence and ongoing detection and monitoring of risks are also part of a company’s KYC and anti-money laundering (AML) compliance programme, including ongoing customer rescreening.

However, over-complicating compliance adds friction to the onboarding process, which can lead to drop-offs or abandonment, which is not optimal either. 

Ultimately, companies must balance the cost of compliance against their risk, which is what the regulatory industry calls a risk-based approach.

There is no shortage of solutions available in the market today, but figuring out what and where to implement without increasing user friction is important to mitigating customer acquisition costs. 

Thus, it is important to be able to leverage a platform that can orchestrate the many API solutions in the market today to target specific solutions necessary for each task. 

That task could be identifying fraud signals from emails or phone numbers as a part of “pre-KYC”, implementing identity proofing using facial biometrics or AML name screening and then compiling all of those into a single customer view for the operations team to investigate. 

Use compliance and regulation as a strategic business advantage

The recent collapse of FTX and other well-known crypto lenders and exchanges highlights the importance of compliance and regulatory frameworks in an increasingly digital economy.

Regulators are likely to focus on stricter standards for KYC, customer due diligence (CDD) and transaction monitoring, as well as AML or combating the financing of terrorism (CFT).

Regionally, the Financial Action Task Force continues to make their rounds auditing countries for compliance and enforcement of AML/CFT policies. 

Those operating in the financial services space have a duty to ensure their KYC is in line with best practices and keeps fraudsters out of their platform. 

Additionally, consumer and public education regarding digital identity hygiene are essential, particularly in emerging markets where a significant digital divide and knowledge gap still exist.

However, protecting users is not solely the responsibility of the government; businesses also have a duty and obligation to comply with changing regulatory standards while ensuring customer safety and security.

Preventing fraud risks not only helps companies avert reputational and revenue losses but also gives them a strategic edge over their competitors. 

Companies that excel in this aspect not only meet their customer acquisition targets quickly and enjoy higher conversion rates but also enjoy peace of mind knowing their platforms are not being misused by criminal syndicates.

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Gobi Superseed II Fund (Gobi SSII Fund), operated by Malaysia and Hong Kong-based Gobi Partners, has announced investments in four Malaysian startups.

They are the Islamic-themed streaming service Durioo+, Lapasar, Paywatch, and pitchIN.

A sneak peek at the four companies:

Durioo+

The Islamic-themed subscription-based streaming service Durioo+ was launched in February 2022 to showcase high-quality Islamic and kid-friendly content. It showcases Durioo+ Originals, Islamic cartoons and kid-friendly content worldwide.

In ten months, the platform claims to have gained over 20,000 subscribed users and is airing more than 1,600 episodes of content thus far.

In the next five years, the company plans to enter the global market – specifically the US, the UK, MENA, Indonesia, Europe and South Asia countries.

Also Read: Why Gobi Partners believes it is the right time to invest in Pakistan

Durioo+ aims to collaborate with other local and foreign animation studios, production houses and game companies to produce more content and games.

Lapasar

Launched in 2018, the B2B e-commerce marketplace distributes fast-moving consumer goods (FMCG) for general trade. It has served over 10,000 SMEs nationwide through its warehousing, distribution and financial services capabilities.

Lapasar transformed into a wholesale procurement platform for small retailers in June 2020, and it grew 172 per cent year-on-year in 2021 and above 100x since its first funding round.

Paywatch

An earned-wage access (EWA) solution, Paywatch helps employees bridge cash flow gaps between paychecks.

Its EWA service is being used by notable companies in Malaysia, such as Lotus’s, KFC, Pizza Hut, QSR Brands, Wilmar and Kenny Hills Bakers.

Also Read: Malaysian earned wage access startup Paywatch bags US$9M for Philippines, HK expansion

Paywatch has grown its product offerings and strengthened its presence in Malaysia, South Korea, and Hong Kong. It also accelerates expansion efforts into new Southeast Asian markets, including Indonesia and the Philippines.

pitchIN

It is an online investing platform established in 2016. To date, it has raised over US$65 million (RM280 million) on its equity crowdfunding (ECF) platform from over 7,600 individual investments made by retail and sophisticated investors to help fund 154 of Malaysia’s fast-growing companies.

pitchIN will launch its Secondary Market and Initial Exchange Offering (IEO) platforms this year following the Securities Commission Malaysia (SC) approval in 2022. It also received approval from SC to list Shariah-compliant campaigns on the ECF platform.

The Gobi Superseed II Fund targets early-stage (seed, pre-Series A and Series A) technology-enabled local startups operating in segments such as AI, Big Data, cloud, e-commerce, fintech, IoT, and Halal economy.

Since its launch in late 2020, it has also invested in four other Malaysian startups: Sunway Innovation Labs, TechNode, Speedhome and PolicyStreet.

Gobi’s Malaysia Managing Partner Jamaludin Bujang said: “We continue our efforts to help spur the growth of entrepreneurs, especially startups and SMEs, in the local ecosystem during a challenging time for the Malaysian economy, as evidenced by our latest investment into these four companies under the Gobi SSII Fund.”

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BandLab Technologies announced on Wednesday the acquisition of beat marketplace Airbit for an undisclosed sum.

As the parent company of social music creation platform BandLab, digital audio workstation Cakewalk, and artist services platform ReverbNation, BandLab Technologies aims to expand its full-service creator toolset with the acquisition.

This will enable the company to provide “seamless access to all major elements of music creation, promotion, and distribution.” Its toolset currently includes free, mobile-first cross-platform DAW and the AI musical idea generator SongStarter.

Following the acquisition, Airbit users will continue to enjoy uninterrupted services and can expect a seamless integration of Airbit’s features into BandLab’s creator platform in the near future. As part of the deal, all current employees will be retained and Airbit CEO Wasim Khamlichi will step down after a transition period.

Also Read: Social music creation platform BandLab closes US$65M Series B round

According to a statement, to date, artists have earned over US$50 million on Airbit with over two million beats sold. The platform boasts a catalogue of more than a million beats from notable producers around the world, as well as emerging beatmakers, providing services for musicians to build sustainable communities and careers.

The acquisition expands the audience for current Airbit producers to millions of new customers around the world.

“We are thrilled to bring Airbit’s community to BandLab. We are continually looking for opportunities to support BandLab artists in their creative process, and this has been one of our communities’ most requested features,” says Meng Ru Kuok, CEO & Founder of BandLab Technologies.

“Thanks to companies like Airbit, self-serve beat marketplaces have become an exciting route for creators to find and purchase high-quality beats to kickstart their creative process. We’re excited to improve the user experience for our creators and introduce new ways for them to earn a living.”

Airbit CEO Wasim Khamlichi said, “Airbit shares BandLab’s ethos of allowing music makers every opportunity to find success. Airbit was started with the intent to empower creators as artists and entrepreneurs through new technologies and forward-thinking music monetization tools. Since Airbit was founded in 2009, it has grown to become a powerful platform for hundreds and thousands of creators. BandLab is best positioned to take it to the next level.”

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

Image Credit: BandLab

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PayMongo receives demand to investigate board chairman
‘As concerned employees of the company, we are worried and disappointed that Luis Sia continues to be involved in the board of PayMongo’, an anonymous person claiming to be a PayMongo employee filed the complaint via email.

MUFG partners with Danamon to launch US$100M startup fund in Indonesia
The fund, MUFG Innovation Partners Garuda No. 1, will invest in Indonesian companies that are expected to have synergies with Danamon; Danamon was acquired by MUFG and MUFG Bank in April 2019.

Investments in SEA slam the brakes in January
Based on data from Tech in Asia, there were only 47 funding deals in January, totaling US$220M; This is down from the 53 deals worth US$840M recorded in December 2022.

Philippine VC firm Foxmont Capital closes US$21.3M Fund II
The investors are Pavilion Capital, AppWorks, and Netherlands-based Orient Growth; To date, Foxmont Capital has invested in 31 startups, including Kumu, edamama, Colourette, Ztock, and Peddlr.

PayPal to shed 2,000 jobs globally
This accounts for nearly 7% of the company’s total headcount; PayPal now joins the growing list of global tech giants announcing layoffs, including Amazon, Meta, and Alphabet.

Bangladeshi B2B e-commerce platform ShopUp bags US$30M debt financing
The funding consists of US$20M from Lendable and US$10M from The City Bank; ShopUp will use the funds for expansion, strengthening supply chain operations, and helping address the food waste problem in Bangladesh.

E-scooter rental startup WeMo nets US$15M for Thailand, Indonesia expansion
The investors include AppWorks and Taiwan National Development Fund; WeMo is partnering with governments, investors, businesses, and transportation providers throughout Southeast Asia.

Freight rate management platform Freightify raises US$12M Series A
The investors are Sequoia India, TMV, and Alteria Capital; Freightify provides white-labelled rate automation solutions to digitise freight forwarders’ rate procurement, rate management and quotation processes.

Gobi Superseed II Fund invests in Durioo+, Lapasar, Paywatch, pitchIN
Gobi Superseed II Fund targets early-stage tech-enabled Malaysian startups operating in AI, Big Data, cloud, e-commerce, fintech, IoT, and Halal economy.

Healthtech firm WhiteCoat grows revenue 3x US$7.7M in 2022
The Singaporean firm targets profitability in its home market by the end of the year; The firm also aims to reach profitability in Indonesia and Vietnam within four years.

Malaysian farmtech startup Secai Marche bags US$1.6M Series A
The investors are Agribusiness Investment & Consultation, Spiral Ventures, and Beyond Next Ventures; Secai Marche will use the new capital to develop its own demand forecast system and optimise truck routing.

Indonesian cybersecurity startup Peris.ai raises funding
The investors are East Ventures and Magic Fund; Peris.ai will use the money to build its cybersecurity platform, train AI/ML capabilities, and nurture the ethical hacker community.

Fund managers have their task cut out right now: Edward Tay
VCs have to relook at their portfolio companies’ valuations as part of the fiduciary role as a fund manager, says ex-Sistema Asia CEO; There’s been an increased tendency to focus on sustainability-related investments in 2023.

Balancing revenue, impact is social impact startups’ top challenge
SoundEye, The Posture Lab, and ACKTEC Technologies reveal the challenges that they are going through and how Sustainable Impact Accelerator can help them tackle them.

Be hungrier and bolder to explore a variety of industries: Sharina Khan of Thoughtworks
The Lead Consultant and Experience Designer at Thoughtworks talks about plunging into the risk of switching careers while juggling motherhood.

Web4, a vision of an intelligent, decentralised web
AI and the Symbiotic Web are key technologies that will drive the development of Web4; Web4 aims to provide a more secure and private web, where users have more control over their data and how it’s used.

How the metaverse and blockchain accelerate economic development
Blockchain technology serves as the foundation for the metaverse, as many applications within it run on blockchain systems.

Genesis bankruptcy: Luno Malaysia assures funds are safe
Luno is Genesis’ sister company and lending partner; In Nov 2022, Luno took steps to ensure its customers had access to their savings wallets after Genesis decided to suspend redemptions and loan origination temporarily.

Year of the rabbit: Leaping into a bumper year for digital payments
Where innovation grows, it is vital that regulation must follow, particularly in the payments industry where trust is of paramount importance.

3 success tips to help e-commerce businesses unlock online success
The full potential of the APAC region remains untapped, and there is a great opportunity for growth and funding in the e-commerce space.

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Businesses in the ASEAN region face an interesting situation this year with the implementation of near-sourcing strategies to overcome supply chain issues in China, presenting opportunities for local manufacturers. On the other hand, interest rate hikes both here and in other regions will impact the liquidity of trade finance institutions.

How organisations implement their digital transformation strategies will play a huge part in whether they will turn the uncertain economic climate across the region and the world to their advantage.

To guide ASEAN decision-makers in navigating 2023, I share five key trends that are expected to have a significant impact on their businesses:

Continued transition to “just-in-case” strategies

Many businesses have reverted to this model as a response to pandemic-related supply chain issues in previous years. We can expect more organisations to follow suit as more challenges crop up while existing ones persist this year.

According to EY, ASEAN companies that opt to do so: supply chain visibility, intelligence, traceability, supply chain resiliency and sustainability, and digital enablement. Blockchain technology is a key enabler of this, as it allows all parties to a transaction to have visibility. At the same time, each transaction’s record is immutable, eliminating fraud and assuring all parties involved of its accuracy and reliability.

Greater emphasis on sustainability

With global shipping alone accounting for three per cent of all greenhouse gases, regulations and customer expectations are driving companies to reduce their carbon footprints across their supply chains.

Blockchain-enabled traceability and visibility can help organisations track down their products’ and shipments’ carbon footprints from end to end, enabling decision-makers to identify where they can work to reduce greenhouse emissions and raw material consumption.

Renewed focus on working capital management

With central banks in the region following the US Federal Reserve in raising rates, there will be a renewed focus on working capital management. Decision-makers will look for ways to improve cash flows and make processes more efficient.

Also Read: ‘Trade & supply chain sector is set to witness unprecedented blockchain adoption’: #dltledgers

Blockchain technology assures financial institutions that transactions are free from fraud, increasing confidence and allowing for more funding.

Blockchain implementation at scale

With blockchain viability and application becoming increasingly apparent, it will be implemented at scale for supply chains. Instead of being used between several companies across a supply chain, governments will deploy blockchain solutions for use in specific trade corridors.

Companies transporting goods between two ports or airports in any of the aforementioned trade corridors will have to use a blockchain platform to record and update their transactions. There will also be more use cases outside of shipping, such as tracing counterfeit products and parts, financial transactions, and maintaining sensitive data such as patient health records.

The blockchain-driven transformation will further drive Web3 transformation

As more companies, industries, and sectors adopt blockchain tech, even more applications and use cases will be discovered, leading to an upward spiral in blockchain tech and, hopefully, a breakthrough in Web3 becoming a reality. In general, Web3 will dramatically change how data is stored, secured, and consumed.

From the central servers of a few organisations, data will be owned and managed securely by millions of users using blockchain platforms. Using the same technology, businesses can connect with each other with a single source of truth, helping them make timely and informed decisions.

Final thoughts

Digitising supply chain processes and operations is the key to turning the current economic climate from a challenge into an opportunity. Blockchain, in particular, has tremendous applications ranging from automating processes, securing cross-border transactions, combatting trade finance fraud, and sustainability.

On a macro level, we see 2023 as the year where blockchain makes a breakthrough in terms of becoming universally accepted as something that is here to stay and will radically change the way we do things, not just in supply chains. 

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

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In January, Singapore-based startup Smthgood launched their social commerce platform that combines user-generated “lookbooks” with a fashion marketplace that is focused on ‘conscious fashion’ brands –defined as fashion brands with positive environmental and social impact in their mission and operations.

The user journey on the Smthgood platform begins with a quiz that helps set up the algorithm to tailor to users’ tastes and preferences in fashion. It allows them to browse through the collections and create a personalised Lookbook using a virtual styling editor. After that, users can publish their Lookbook and have other users purchase the products directly from these lookbooks.

“Creators are rewarded with Smthgood coins, exchangeable for shopping cashback whenever a purchase is made from their Lookbooks. All these create a discovery-led and gamified shopping experience where users can both inspire and get inspired,” the company explains.

The platform features small- and medium-sized fashion brands from across the Asia Pacific, from Thailand to Australia, with price tags that range from US$20 to US$200.

“All brands on the platform have been carefully curated to align with Smthgood’s values based on three factors: what the item is made of, how the item is made, and the impact of the finished item on the environment. Smthgood aims to provide more personalised user experiences with fashion AI tagging and uplift the conscious brands on its platform,” the company says.

It is one of the startups in the region that aims to cater for the needs of today’s customers, who are becoming increasingly aware of the negative impact of consumerism–and actively looking for a better alternative.

Also Read: Slow fashion is back: How environmental sustainability becomes the hottest trend this season

A different way to purchase

Smthgood targets women aged 16 to 44 as its users, and the creation of the platform is in line with notable changes in user behaviour in the global market today. These changes have become more prevalent in recent years, providing new opportunities for businesses.

In an interview with e27, Smthgood Founding Director Tony K Tan points out the three major trends that the company aims to capture, based on research by leading institutions:

– Sixty per cent of today’s customers are driven by discovery-led inspiration and are looking out for new purchasing experiences (Meta and Bain)
– The market for sustainable products is growing at a much higher speed at 2.7 times (NYU Stern School of Business)
– The year 2022 was the first time purpose-driven buying trumps price-driven buying at 44 per cent to 37 per cent (IBM Institute for Business Value)

These are the opportunities that Smthgood aims to pursue.

“The way we are looking at this is that we are telling a story, not just to people who are already into the conscious [lifestyle], but also to people who are curious, just thinking about it, or hearing about it, but may not know where to start,” Tan explains.

The company believes that it can help promote conscious fashion brands through the way the platform works. By having user-generated lookbooks, instead of one created or curated by fashion editors, they can help build trust in users’ minds that conscious fashion brands can also look good.

But how about fast fashion itself? Does Smthgood see it as a competitor?

“To be honest, fast fashion will always be there. There’s no way to eradicate fast fashion. It’s all about co-existence,” Tan says.

Also Read: How blockchain can enhance sustainability in fashion

Fashionably sustainable

Prior to founding Smthgood, Tan had close to 20 years of business experience across core divisions in an investment bank, including corporate finance, global markets and wealth management.

A lifelong passion for businesses that combine profits and social impact, combines with the opportunity for self-reflection that the pandemic provides, led him to start Smthgood.

When asked about how his background affects how he is running a startup, Tan says that it has definitely influenced his approach.

“In a sense, my experience as a banker allows me a lot of interaction with business owners and companies,” he says.

He lays down the three points that he believes are keys to building a “good business”. The founders have to:

– Have a good understanding of the global trend, where the world is going to
– Build a product that the costumers actually need, instead of what founders believe to be a good product
– Secure the right team members to execute the vision of the products

“By having that understanding of where the world is moving to, it’s the starting point from a macro perspective. Then, if I pull it down to the second level, it’s about what you’re building. Are you building the things that are your product? Are you building something that you would consume?” he explains.

“Ultimately, when everything is out in the market, it’s about iteration. It’s about getting that feedback, and evolving things nimbly using data points.”

Also Read: How the tech-enabled second-hand fashion resale market is growing in Asia

Operating from its base in Singapore, Smthgood is currently fully bootstrapped. While Tan acknowledges that raising external funding can help a business expand, he believes that being bootstrapped also allowed them to focus on launching the product that they envision.

“We are not distracted … It allows us to focus on the vision of what I think this app can be,” he closes.

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Image Credit: Smthgood

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Singapore-based smart electric motorbike company ION Mobility has secured US$18.7 million in its Series A round of financing from investors, including India’s leading two-wheeler maker TVS Motors.

Other investors are AC Ventures Malaysia, Michael Sampoerna, and ION’s CMO Ng Ho Sen. Existing investors TNB Aura, Quest Ventures, Monk’s Hill Ventures, Village Global, GDP Venture, and Seeds Capital also joined.

Also Read: ‘Singapore isn’t ready for mass adoption of EVs yet; hybrid may be better for the present’

This brings ION Mobility’s total capital raised to over US$25.5 million since 2020.

TVS made the strategic investment through its subsidiary TVS Motor (Singapore). It will provide the necessary ecosystem support for the e-vehicle startup to succeed in the electric two-wheeler markets of Singapore and Indonesia.

ION will use the fresh capital to grow its Indonesia team, operations and capabilities. This includes its sales and marketing presence, local supply chain networks, production tooling and manufacturing capabilities in Indonesia to achieve at least 50% local content.

This announcement comes on the heels of the company’s launch of its M1-S electric scooter in Jakarta in November 2022. It also signed a broad-ranging Memorandum of Understanding with Indonesia’s national grid operator PLN to expand its charging network and two-wheeler fast-charging technology research and user outreach and education.

ION Mobility Founder and CEO James Chan said: “We are excited to draw upon TVS Motor’s decades of global expertise in two-wheelers to accelerate our “Mobius” M1-S production readiness, as well as the design and development of other models.”

Also Read: ION Mobility lands US$6.8M as it prepares to launch smart e-motorbike in Singapore

Founded in 2019, ION Mobility aims to become a technology company leading the region’s transition towards a low-carbon economy with consumers’ electric and electric mobility products. It wants to provide clean alternatives for urban users to alleviate urban air pollution and lead the transition to electric vehicles (EVs) across Southeast Asia, starting with motorbikes.

The plan is to convert the 200-plus million motorcycle users from petrol to electric to drive a sustainable future in Southeast Asia.

In October 2021, ION completed its US$6.8 million seed financing, co-led by Quest Ventures and TNB Aura.

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Online shopping isn’t just a COVID-19 fad, it has become a lifestyle. Even as we move on from the pandemic, an increasing proportion of consumers in the Asia Pacific region continue to embrace self-serve and mobile retail experiences.

Indeed, in a 2022 report, 9 out of 10 millennials listed online shopping via their smartphones as their preferred means of purchasing. Elsewhere, in the United States, a record US$9.12 billion was spent online on Black Friday 2022, up 2.3 per cent from Black Friday 2021, while Thanksgiving saw US$5.29 billion in online spending, up 2.9 per cent from 2021.

This holiday season, the digital space will once again be the battlefield where shoppers hang out, and businesses compete. Anyone who wishes to survive and thrive in the competitive environment must buckle up and brace for the biggest shopping window of the year.

In this article, we’ll explore some tips and strategies, illustrated with the success stories of three e-commerce businesses that we were able to partner with to help take their business to new heights.

Create a brand that speaks to customers’ hearts

In the crowded e-commerce space, numerous businesses are selling the same type of products. How do you stand out? Why should people choose and stay loyal to your business? The key lies in creating a brand that connects with your customers.

Founded in 2020, Cheak (formerly known as Butter) is a Singaporean brand offering women’s activewear. With only five products in their catalogue in their first year of business, Cheak generated an impressive six-figure revenue, and they did it by building a unique brand around women in Asia.

Cheak was born when its founders, Olivia Yiong and Tiffany Chng, couldn’t find active apparel that is chic, affordable and fit for Asian body types. Setting out on their own to address this gap in the market, Olivia and Tiffany built a brand that made it a point to listen to the Asian women’s community and what Asian women wanted.

Not to mention, Cheak’s collection of vibrantly coloured activewear fits both the body and budget as well. Finally, Asian women’s voices were heard, and Cheak quickly became a newfound favourite.

But as with any start-up retail business, there is a substantial outlay required to purchase inventory to sell. In fact, this is a problem often faced by newer e-commerce companies who are often not able to secure any financing from traditional financial institutions, as many e-commerce merchants lack sufficient assets to serve as collateral for bank loans, while private equity and VC firms tend to favour disruptive innovators over e-commerce businesses. 

Fortunately, we were able to work with Cheak to provide the funds required to finance their inventory purchase. With this injection of life, Cheak was able to significantly fulfil more orders, increase their revenue, and grow their brand.

Also Read: Profitable e-commerce: Making real money in the new year

This caught the eye of Love, Bonito, Singapore’s leading women’s fashion label, which is poised to expand to overseas markets such as Hong Kong, Japan and the US. Cheak was recently acquired by Love, Bonito enabling their female-founded activewear brand to continue to empower millions of women with confidence in themselves and in everyday life.

Scale growth with paid search advertising

When it comes to scaling a business, it’s often said that you have to spend money to make money. In this regard, digital advertising is what you can do to multiply your revenue quickly and exponentially.

Jaco Hardware illustrates this well. Now a big name in Hong Kong’s hardware industry, Jaco Hardware began as a college hustle by its founder, Henry Chao. It wasn’t until Henry decided to double down on the digital venture and seek funding that he turned the business around.

Henry invested some 60% of funds secured into digital marketing – which is a huge sum for a business, but one that paid dividends. Noticing huge search volume for certain products, he started sourcing new hardware tools from across the globe and amped up Google Ads spending in those categories. When people searched for hardware products on Google, Jaco Hardware’s ads would show up and drive visitors to its online store.

As a small business owner, Henry shared that the amount of money spent on advertising seemed overwhelming at first. With clearly defined goals, performance tracking, analytics and optimisation, however, returns on ad spend (ROAS) turned out to be very promising.

Revenue grew 100x in less than two years,  establishing the company’s leadership position in the online hardware industry. Henry’s hardware empire now turns a seven-figure monthly revenue and is continuing on an upward trajectory.

Sell directly to consumers to accelerate growth on your own terms

For digital merchants just starting off, joining marketplaces like Amazon, Shopee and Lazada are the easy path to take. To push your business towards further growth and success, however, building a direct-to-consumer (DTC) brand is a must. In fact, this is how Archiology grew its revenue by 5x in 6 months.

Archiology is a designer company of home lighting and furniture goods and first came into being as one of the many merchants on the Amazon Marketplace.

Also Read: How e-commerce brands can tap into the US$600 billion social commerce market potential

Among all challenges of being a marketplace seller, commission fees are where it hurts most. Platforms pocket up to 45 per cent on every transaction, often undercutting merchants’ profit margins to razor-thin levels. Interacting with customers, delivering customised marketing messages and offering seasonal promotions also prove challenging since all must be done within platform rules and policies.

The company subsequently cast about for ways to establish a DTC brand and eventually made substantial capital investments in the transition from being an Amazon seller to establishing its own DTC brand. 

The pivot to DTC opened up a treasure trove of opportunities for Archiology. On top of eliminating exorbitant platform fees and offering higher profit margins up for grabs, selling directly to consumers enables Archiology to engage in hyper-personalised interactions with them.

With its own online store, Archiology now offers 15 per cent off a customer’s first purchase, a US$5 reward for each referred purchaser, as well as a live chat box to answer shoppers’ queries right away.

This way, interested visitors turn into purchasers, existing customers bring in new ones, and they themselves remain loyal customers of the brand. More importantly, most of them know Archiology by its name, not just another seller on Amazon.

Reaching into the opportunities of e-commerce

As the Chinese saying goes, starting a business is difficult, but keeping it going is even harder. Running a business in today’s crowded digital landscape, the real challenge is to stand out from the competition and achieve continued growth.

As a key funding partner for the Southeast Asian/APAC e-commerce market, we have partnered with hundreds of e-commerce businesses. We believe that the full potential of the region remains untapped and that, contrary to recent reports, there remain great opportunities for growth and funding in the e-commerce space. 

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