Capital A faces funding setback in super-app push

Capital A co-founder Tony Fernandes has been on a public relations blitz ever since his group restructured, changed its name (it was previously AirAsia), and pivoted to tech.

His sales pitch: Capital A will survive the Covid-19 pandemic and stage a roaring comeback.

To headline its efforts, the group embarked on a major fundraising push, aiming to collect 2.5 billion ringgit (US$592 million).

The hype, however, dissipated when negotiations for one of the main sources of funding for the tranche – a 500 million ringgit (US$118 million) club facility backed by state-owned financial insurer Danajamin – broke down.

Photo credit: Capital A

The Danajamin-backed loan was a game changer for Capital A, which was reeling from the effects of pandemic-induced restrictions.

On October 5 last year, Capital A received the
necessary approvals
 from Danajamin for a club facility. The guarantee from the Malaysian government “is a strong signal of support,” the group said in a statement.

All of this came undone when Fernandes and Capital A co-founder Kamarudin Meranun announced on March 11 that they
would be rejecting the loan
, citing Danajamin’s requirement that the two founders act as guarantors, among other issues.

In a statement, Fernandes said that they felt it was unfair that Danajamin expected them to be the sole guarantors, as the duo only collectively holds about 25% of the company.

Kuala Lumpur-based investors
Tech in Asia
 spoke to were divided over Danajamin’s terms and conditions. Some agree with Fernandes that the burden should be shared with all shareholders, while others believe the founders should have taken the risk.

But the investors agree that without the Danajamin guarantee, Capital A would be pressured to raise funds to expand operations and diversify, taking its focus away from making most of the “pent-up demand for travel” that will benefit the group once Malaysia opens its borders on April 1.

Any hint of recovery, they say, will only likely happen in 2023.

Exacerbating matters is that on January 7 this year, Capital A dropped to PN17 status, a tag given by the Bursa Malaysia (the country’s stock exchange) for financially distressed firms. PN17 companies are given 12 months to submit a regularization plan to the bourse for approval or face delisting.

Door “remains open”

As part of the 2.5 billion ringgit funding, Capital A has successfully raised 1 billion ringgit through a rights issuance, which also saw Fernandes and Kamarudin personally injecting 253.7 million ringgit of the amount.

The group is also raising US$225 million from foreign banks.

A fund manager speaking to
Tech in Asia
 on condition of anonymity believes that Capital A still has three options to consider if it wants to plug the gap left by Danajamin.

First, the group can apply for another round of private placement and rights issuances. “This may take some time, roughly six months for necessary approval from the Securities Commission Malaysia, and may further dilute shareholders’ equity. But airlines in Europe and Asia have done this to the point of surpassing their market value. It can be done and provides a lifeline for the business.”

Second, the fund manager argues that Capital A can raise funds from private equity investors or take loans from foreign banks. “They may also consider listing some of their subsidiaries.”

Fernandes
told
Tech in Asia
 in August last year that he was considering listing in the US via a special purpose acquisition company within five to six months’ time. This has yet to materialize.

Third, the fund manager says Capital A can jump-start talks with Danajamin and try to convince the agency to back the loan, preferably with new terms and conditions. “There’s no clause that restricts businesses who have been rejected from not applying, so the door remains open for Capital A.”

Progress still up in the air

Capital A’s core revenue streams can be broken down into two major sections, according to its unaudited financial statement for December 31, 2021 (FY21).

There’s AirAsia (airline) and a clutch of businesses under its digital division: Teleport (logistics), BigPay (financial services), the AirAsia Super App (online ticketing and other services), and others such as restaurant chain Santan and AirAsia Farm (ecommerce/agritech).

But both segments are still in the red and have posted negative
EBITDA
 figures, according to Capital A’s FY21 financials. The group, however, has narrowed its losses since last year.

Despite Malaysia’s announcement to open its borders, equity analysts attached to major Kuala Lumpur-based equity research houses are divided over Capital A’s near-to-mid-term prospects.

For instance, in its March 1 note, Public Investment Bank flagged the group’s PN17 status and raised concerns over “challenges” the group may encounter in dealing with the problem in the “near to medium term.”

While some lenders may be averse to provide financing to Capital A, others, such as Kenanga Investment Bank’s Raymond Choo, are more bullish on Capital A’s prospects.

With “leaner and more optimized airline operations” and as travel restrictions ease, Capital A may have greater sales and a reduced monthly cash burn that will see it through until the end of 2022, the analyst wrote in his March 1 note.

Two analysts
Tech in Asia
 spoke to say they are not releasing a note with their recommendations to clients soon, as “there’s nothing really substantial” from Capital A at the moment. They add that many of the developments that could act as positive catalysts for the group are tentative – the pending approval for the company’s digital banking license is one example.

Bank Negara Malaysia, the country’s central bank, is expected to announce the five winning consortiums for a digital banking license by the end of March.

Capital A’s e-wallet unit BigPay has thrown in a bid for the license as the anchor applicant. Its other partners are Ikhlas Capital, the Malaysian Industrial Development Finance (MIDF), and an unnamed foreign conglomerate with fintech expertise.

Ikhlas Capital is a private equity firm partly owned by former banker Nazir Razak,
the younger brother of former prime minister Najib Razak
. Nazir is also the non-executive chairperson of Bank Pembangunan Malaysia, the country’s largest development financial institution (DFI), which in turn owns Danajamin.

MIDF is also a DFI under the purview of the International Trade and Industry Ministry.

Tricky tech pivot

The two analysts we spoke to also opined that Capital A’s digital businesses may not live up to expectations, especially in the “competitive” ride-hailing and ecommerce spaces, where the likes of Grab and Foodpanda dominate.

“As we have seen with Grab’s latest financials, getting deliveries up and running involves a major cash burn especially for incentives. Profitability has been a key challenge for Grab and other players because competition is stiff. Does Capital A have such deep pockets?” one analyst asks.

Grab’s losses swelled to US$1.5 billion for the fourth quarter ended December 31, 2021. Revenue fell 44% to US$122 million after taking into account incentives offered to users and drivers, according to a statement by the ride-hailing giant.

Gunning to dominate the digital business scene, especially deliveries, was initially not something Fernandes had in mind. He told
Tech in Asia
 in
an interview last August
 that he was “not there to necessarily become number one in food delivery.”

But the entrepreneur had an apparent change of heart when Capital A acquired loss-making delivery company DeliverEat on January 16 this year for US$9.8 million.

“When (I started) AirAsia, I always wondered if we could become the biggest airline, and we did. So I sit back and think, can we become the biggest food delivery company and ride-hailing company? Today, I officially say, ‘I think we can,’” Fernandes told a press conference that day.

A private equity investor tells
Tech in Asia
 that Capital A does have an existing database that may come in handy in providing solutions and products.

Meanwhile, Hong Leong Investment Bank aviation analyst Daniel Wong points out that the firm is also developing its digital arm.

In his March 1 note, Wong indicates another advantage: AirAsia Digital Engineering’s plans to construct its own maintenance, repair, and overhaul facilities at the Kuala Lumpur International Airport.

Capital A’s logistics arm Teleport has been benefitting from a surge in demand for last-mile deliveries as well, while BigPay has reached more than a million users and has recently launched its personal loans service.

Home is where the battle is

To be sure, Capital A is certainly not just a Malaysian brand. Its airline and digital businesses are regional.

However, Fernandes wrote in a
March 18 LinkedIn post
 that Capital A is “a new company and branding starts at home.”

But changes are afoot in its home country. The Malaysian Aviation Commission, the country’s civil aviation industry regulator, approved the application of two new discount airlines — MyAirline and SKS Airways.

Malaysia Airlines, the country’s ailing flag carrier, chided the decision, saying the approval would lead to worsening overcapacity. AirAsia, meanwhile, welcomed the move.

Although the newer entrants will not match AirAsia, investors tell
Tech in Asia
 that Capital A’s recent board appointments in its airline business also point to a more aggressive move to stay in pole position.

Jamaludin Ibrahim, a telco veteran whose last high-profile gig was as Axiata’s chief executive, was appointed AirAsia chairperson on February 10 this year.

AirAsia also appointed four new board members on March 23: Thai national Suvabha Charoenying, Singaporean Lim Serh Ghee, Filipino Francisco Ed. Lim, and Malaysian Mohamad Norza Zakaria.

While each of the appointees touts years of corporate experience and represents the key markets for AirAsia, the most significant member is Norza, who also leads listed infrastructure group WZ Satu.

WZ Satu has been known to be a company linked to the Pahang royal family.

According to the firm’s latest annual report, the Malaysian king, Sultan Abdullah, who is also the Pahang ruler, is a substantial shareholder in WZ Satu with an 8% stake. AirAsia co-founder Kamarudin owns a 1.1% share in the company, while his son, Ikhlas, is a board member.

In 2018, Norza pushed for a new low-cost carrier terminal, a proposal
backed by AirAsia
.

In search of a break

Since 2020, Fernandes and AirAsia have been the subject of intense scrutiny. Early that year, the founder tried pushing for a
merger between AirAsia and Malaysia Airlines
, but that didn’t pan out after the deal was leaked to business publication
Focus Malaysia
.

Sovereign wealth fund Khazanah Nasional, Malaysia Airlines’ ultimate shareholder, would go on to
file a police report
 against the publication and, through its lawyer, issue a cease-and-desist against the newsroom from publishing more on the deal.

Fernandes and Kamarudin would again be in the spotlight after Airbus admitted to
bribing two executives in AirAsia
 and its long-haul sister AirAsia X for a sports car deal.

The co-founders had to step aside after the AirAsia X board appointed Kuala Lumpur-based BDO Consulting to investigate the matter. BDO found no wrongdoing on the part of Fernandes and Kamaruddin.

But the investigations by regulators Securities Commission Malaysia and the Malaysian Anti-Corruption Commission have yet to be made public.

AirAsia also had to
lay off a total of 2,400 staff members
 in October 2020 and last year. Some of the company’s key talent
left the firm
 just as it was about to be rebranded to Capital A, and segments of passengers are also miffed over being offered travel credits instead of refunds for tickets.

Fernandes said in a March 28
press conference
 that AirAsia had settled over 90% of passenger refunds with more to be fulfilled “as the flights resume.”

The founder opined in a LinkedIn post that, after restructuring Capital A, he finally saw “light” despite having “a long way to go.” This time, he’ll need to have a runway that’ll last him and his group until 2023.

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.20 ringgit.


500 Global-backed agritech firm reaps $3m in seed money

Plant Cartridge
, a Kuala Lumpur-based agritech company that offers sustainable agriculture solutions, has raised US$3 million in seed funding.

Phptp credit: Plant Cartridge

Backed by
500 Global
 and a private group of business conglomerates, Plant Cartridge plans to use the fresh capital to expand its operations by 1 million square feet, and develop new, advanced farming solutions that are sustainable, scalable, and accessible.

Founded in 2016 by
Channing Liang
 and
Michael Mak
, the agritech firm aims to transform the agricultural industry and food supply chain by providing farmers with modern sustainable farming systems, financial support, and market access.

The company provides hardware and software for controlled environment agriculture, including seed, germination, irrigation, and nutrient management systems, and an integrated farm-operating system for crops such as leafy vegetables, fruits, or tuberous plants. It claims to reduce water consumption by 90%, and boost crop yield by up to 10x via its solutions.

See also:
Indonesian agritech is pandemic-proof, but here are the warning signs


Can the crabs take over the axies?

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Hello reader,

In my family, the love of sports was handed down the traditional way. During one-on-one games on the miniature hoop hanging from the bedroom door, I was always Michael Jordan and my uncle was LeBron James. It offered my uncle an opportunity to talk to me about a hero of his youth and how he compared to a hero of mine.

Now, those conversations are often reversed. My uncle listens to me talk about why I prefer the plant, reptile, and dusk classes of axies over the others. Instead of shooting percentages and scoring averages, the conversation is about cards and energy that can mean the difference between victory and defeat.

The gaming industry is always evolving. Our big story for the day is one to do with crabs, minus the combination of stress and enjoyment as an emotional roller coaster ride (hopefully).

Today we look at:

The
newest play-to-earn game
 that could be the next Axie Infinity

A gaming startup that has launched operations in Japan

Other newsy highlights such as a fintech platform that is looking to compete with Grab and GoTo, and a ‘Robin Hood’ hacker who has exploited crypto worth US$52.8 million.

Also, if you’re a tech firm bringing your A-game to the startup ecosystem, do fill out this
CDP x Tech in Asia

questionnaire survey
 and celebrate your participation in the creation of a net-zero economy.

Premium summary

Battle of the crabs

Image credit: Timmy Loen

Crabada
 is a play-to-earn (P2E) idle game on the Avalanche blockchain that lets players own
NFT
 crabs and earn rewards by mining, looting, battling, crafting items, and more. The “looting” game mode allows players to battle crabs owned by other people who may be mining their crabs at the time. While the game has a relatively smaller reach than
Axie Infinity
,
Crabada
 has high user retention and revenue potential.

Crabadology:
 To get started,
Crabada
 players need a team of three NFT crabs, which they can buy for around US$8,000 in total. Players who can’t afford to do so can either use the game’s tavern feature – where experienced players deploy their idle crabs for rent – or buy a single NFT crab and rent it out until they earn enough money to buy all three.

What’s it got over
Axie Infinity
?:
 Despite
Axie Infinity
’s efforts to revamp its game economics, the fact that more of its in-game currency, smooth love potion (SLP), has been minted than burned remains a critical issue, creating massive inflationary pressure for SLP and affecting the game’s long-term viability.

Sustainable gaming:
 In the second half of 2021, when the number of SLP minted on
Axie Infinity
 consistently outpaced those burned, the price of SLP took a beating. Meanwhile,
Crabada
’s team has introduced various inflation-reducing game mechanisms that increase the burn of Treasure Under Sea, its in-game currency. This keeps the token’s value from sliding.

Read more:
Crabada: the next Axie Infinity?

Startup spotlight

YGG enters Mario city

Image credit: Timmy Loen

Yield Guild Games (YGG), a P2E gaming startup, has
launched in Japan
 via partnerships with several industry players. The blockchain-focused company currently has over 100,000 members and 20,000 scholars – people who rent NFT assets to play P2E games – from more than 24 countries.

Investor bonanza:
 Among the current business partners of YGG Japan include Infinity Ventures Crypto, YGG Southeast Asia, Akatsuki, Double Jump Tokyo, Crypto Games, Kii, and Days, as well as angel investors. The startup is also in discussions to partner with other potential investors, including Hong Kong-based gaming unicorn Animoca Brands.

The Japan plan:
 With its Japan venture, YGG plans to onboard local players to P2E games and support homegrown companies in launching their own blockchain titles. The company aims to do this by developing services that enable participation in gaming communities, bolster partnerships with existing guilds and scholarship structures, and promote awareness of blockchain titles among Japanese gamers.

Getting into the legends’ arena:
 Japan is a pioneer of the gaming industry, introducing the world to games such as
Super Mario
,
Pokemon
, and
Sonic the Hedgehog
. Japanese mobile games have also recently introduced “gacha” – a mechanic that brings randomized virtual loot boxes to players – driving up spending on games.

Quick bytes

1⃣
Tossing into SEA

South Korea-based Viva Republica, which operates mobile financial app Toss, is
set to raise up to US$1 billion
 in the second quarter this year to take on Grab and GoTo in Southeast Asia. Viva Republica plans to enter five more countries – Indonesia, Malaysia, Thailand, India, and the Philippines.

2⃣
Robin Hood in town

Solana-based stablecoin protocol Cashio was
exploited by a hacker for US$52.8 million
 after an “infinite mint glitch” enabled the person to mint tokens without providing collateral. The hacker has been described as a “modern-day Robin Hood” for leaving a note in the input data of the Ethereum transactions that says, “Account with less 100k have been returned. All other money will be donated to charity.”

3⃣
Crypto no more in Malaysia

Putting speculations to rest, Malaysia’s deputy finance minister told parliament that the country
has no intention of legalizing cryptocurrencies
. The government official pointed out how using cryptocurrencies involves drawbacks such as price fluctuations and cybersecurity issues.

4⃣
Pre-conditioning for IPOs

Singapore-based PrePO, a decentralized trading platform, has
raised US$2.1 million
 in a strategic round led by Republic Capital and IOSG Ventures. The firm allows users to take long or short positions on pre-IPO companies and pre-token crypto projects. It also provides users access to pre-public assets as well as transparent and up-to-date market prices.

5⃣
A landmark deal

Australia and New Zealand Banking Group (ANZ), one of Australia’s top four banks, has
partnered with Fireblocks
, a digital asset tech provider, to mint the country’s first digital asset linked to the Australian dollar. ANZ minted the Australian dollar stablecoin, the A$DC, through digital asset investment platform Zercop. The transaction was done for Victor Smorgon Group, a private wealth management firm for digital assets.

6⃣
Robots in kitchens

Zomato has
invested US$5 million
 for a 16.66% stake in Mukunda Foods, an India-based food robotics company. The investment takes Mukunda Foods’ post-money valuation to US$30 million. The food robotics firm plans to use the capital injection to expand its reach across quick-service restaurants, cloud kitchens, and fine dining segments.


Ex-Lalamove, Delivery Hero execs’ quick commerce firm raises $6m in pre-seed money

BeepBeep
, a Singapore-based quick commerce firm, has raised a US$6 million pre-seed funding round led by Genesia Ventures earlier this year.

The firm currently is also raising a series A round to build 50 warehouses, make new hires, and expand to other countries in Southeast Asia.

Photo credit: BeepBeep

Founded in September 2021, BeepBeep said it delivers fresh produce and daily essentials to customers within 15 minutes. It currently operates in Singapore, Malaysia, and Vietnam, where it has seven warehouses that can each accommodate up to 2,500 products.

In a statement, the company said that its number of orders grew 4x month on month since November 2021.

BeepBeep was established by
Marija Brunier
 and
Gaetano Seminario
, former executives at Delivery Hero and Lalamove, respectively.

See also:
Will India’s 10-minute quick commerce model last?


Crypto won’t be legal tender in Malaysia, minister says

Putting speculations to rest, Malaysia’s deputy finance minister told parliament that the country has no intention of legalizing cryptocurrencies like Bitcoin, reported
Bloomberg
.

I Mohd Shahar Abdullah
 pointed out how using cryptocurrencies involve drawbacks such as price fluctuations and cybersecurity issues.

In early March, Malaysia’s communication ministry
pushed
 for the adoption of Bitcoin as an official payment method. This comes months after El Salvador became the first country to name
Bitcoin as a national currency
.

See also:
Why China’s crypto exodus is a boon for green bitcoin mining


Cars24’s impending showdown against Carro, Carsome

Welcome to The Checkout! Delivered every Thursday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in ecommerce. If you’re not a subscriber, get access by
registering here
.

Hi there,

These days, conversations with friends are often filled with angst over rising prices.

While I sigh about how a packet of Hainanese chicken rice from my favorite hawker now costs twice as much, my friend is more sanguine about his car ownership plans. His pocketful of sunshine: used-car marketplaces like Carro and Carsome.

Even better news? Competition in Southeast Asia’s used-car scene is about to heat up, and that could be a boon for car buyers seeking their dream ride on a budget.

In this week’s Big Story, my colleague Samreen looks at Indian pre-owned vehicles marketplace Cars24’s foray into Southeast Asia.

Founded in 2015, Cars24 enters the region with a war chest of US$850 million, having already set up shop in Thailand and Indonesia. Malaysia is next on its radar, where it will clash with Carsome and Carro-backed MyTukar.

In this week’s Hot Take, I look at how NFTs can take Southeast Asia’s direct-to-consumer scene forward, and why the time to do so could be right.

— Tian Wen

THE BIG STORY
Can Cars24 take on Carro, Carsome in SEA?

Image credit: Timmy Loen

Cars24 is wheeling around choice, value, and quality to compete with local unicorns Carro and Carsome in SEA.

THE HOT TAKE
Can NFTs be rocket fuel for SEA’s D2C brands?

Image credit: Timmy Loen

Here’s what happened:

Southeast Asia’s D2C scene continues to boom, with the Philippine market expecting to see a
56% increase
 in D2C web stores this year.

Still, many early-stage D2C players in the region struggle to find profitability.

At the same time, cryptocurrency adoption is reaching all-time highs in Southeast Asia, with funding to blockchain enablers soaring to record levels in 2021.

Here’s our take:

Southeast Asia’s D2C revolution isn’t slowing down.

Indonesian brands like beauty startup Social Bella and fashion firm Berrybenka are growing in prominence. Meanwhile, the Philippines is expected to see a
56% increase
 in D2C web stores this year.

But it’s still too early to pop the champagne. Even now, most early-stage D2C players
still struggle
 to break even, let alone scale their business.

At the same time, profitability tricks in the D2C playbook come with undesirable trade-offs. For example, if you leverage marketplaces like Lazada and Shopee to get customers, you lose absolute control of the customer journey.

If there’s a way for Southeast Asian D2C brands to have their cake and eat it, the answer could lie in blockchain technology. Here’s why.

D2C brands work when they
attain
 a healthy ratio between customer lifetime value and customer acquisition cost. NFTs can help brands achieve this by becoming a cornerstone of their community-building efforts.

Integrating NFTs as part of community building could strengthen brand loyalty and keep customers coming back for more. That’s a plus for customer lifetime value and the overall financial health of D2C brands.

NFTs also help brands with cash flow by getting people to buy into a concept before a product is delivered.

Case in point: Singapore-based NFT community Luna Kiddy
plans
 to not only sell titles to JPG files, but also give back royalties from secondary NFT sales to original buyers. The organization is also tinkering with the idea of launching a toy merchandising business based on the Luna Kiddy characters.

But if pundits have been heralding Southeast Asia’s blockchain era for years, why should anyone, let alone D2C brands, be serious about it now?

For one, crypto has gone mainstream in the region. Blockchain enablers are also gaining traction, and even established banks like Thailand’s Siam Commercial Bank and Singapore’s DBS are making a splash in the space.

Still, there are a couple of roadblocks D2C brands will have to deal with if blockchain adoption is on the cards.

The interest in NFTs has
cooled lately
 even as various copycat projects get launched, with many people viewing them as cash grabs. As such, the era of NFTs as a source of easy money may have ended.

The mushrooming of blockchains could also
make it difficult
 for ecommerce businesses to pick an appropriate platform and ensure cross-compatibility in the long term. This makes it more challenging for D2C brands that have cut out the middlemen to harness network effects with other stakeholders in the ecommerce ecosystem.

Are NFTs the rocket ship Southeast Asia’s D2C commerce scene has been looking for? It could be a long-term game changer – or a quick ride on and off the Web3 hype train.

— Tian Wen

NEWS YOU SHOULD KNOW

Check out
Tech in Asia’s
 coverage of the ecommerce scene
here
.

1⃣
Alibaba
 has
approved
 an upsize of its share repurchase program from US$15 billion to US$25 billion amid a slump in its stock price due to Beijing’s ongoing regulatory crackdown.

2⃣
iPrice Group
, a Malaysia-based price comparison platform, has
raised
 US$5 million from Japanese conglomerates Itochu Corporation and KDDI Corporation.

3⃣
CommerceIQ
, a US-based retail ecommerce management platform with operations in India, has
raised
 US$115 million in a SoftBank-led series D funding round.

4⃣
Pinduoduo’s
 revenue
saw
 a sluggish 3% year-on-year increase to US$4.3 billion due to weak user growth and fluctuations in user activity.

5⃣
The Parent Inc
, the owner of Singaporean parenting community platform theAsianparent, has
raised
 US$8 million from Line Southeast Asia, the VC arm of Japanese messaging platform Line.

FYI
After $1.5b IPO, Bukalapak explores new frontier: gaming

Photo credit: Bukalapak

While much of the spotlight has fallen on its investments in banking and retail, the Indonesian ecommerce unicorn is preparing for a serious venture into gaming.

That’s it for this edition – we hope you liked it! Do also check out previous issues of the newsletter
here
.

Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center.

See you next week!


Malaysian ecommerce aggregator carts $5m in funding

Malaysia-based
iPrice
, an ecommerce aggregator focused on Southeast Asia, has raised US$5 million in a round backed by Tokyo-headquartered Itochu Corporation and the KDDI Open Innovation Fund III, the VC fund of Japanese telco firm KDDI.

IPrice Group CEO Paul Brown-Kenyon (from left) with company co-founders David Chmelař and Heinrich Wendel / Photo credit: iPrice Group

Established by
David Chmelar
 and
Heinrich Wendel
 in 2014, iPrice allows online users to compare product specifications, prices, and seller feedback. It claims to have a catalog of the best offers for more than 7 billion items from 8 million sellers in Southeast Asia.

The company will use the new capital to add consumer loan comparison to its services. This comes as digital lending in the region is expected to hit
US$92 billion
 in transaction value by 2025.

Its lending partners include Cashalo in the Philippines, SmartPayin Vietnam, Zip in Singapore, and Home Credit, Julo, and Payku in Indonesia.

IPrice has also rolled out a price-drop alerts feature in Indonesia. Called Price Watch, the new feature will also be launched in Singapore, Malaysia, Vietnam, Thailand, and the Philippines
.

The company is eyeing a bigger opportunity in Southeast Asia as digital consumers in the region use almost
eight websites on average
 when shopping.


Grab to provide Shariah-compliant financing for Malaysian drivers

Regional super app
Grab
, through its financial arm, has partnered with
Sedania As Salam Capital
 to provide a Shariah-compliant financing product for its drivers and delivery partners in Malaysia.

Photo credit: Grab

The new product, called Grab Cash Financing-i, allows Grab partners to fulfill their immediate household and financial needs without any documents or collateral. Payments will come from the partners’ daily earnings.

In a statement, Grab said that the product will be offered to drivers and delivery partners under 75 years old with a minimum monthly earning of 800 ringgit (around US$190).

The Singapore-based company has introduced the new product through a pilot test in December 2021. According to the firm, around 16% of eligible partners were availing it at that time.

See also:
Org Chart: The people driving Grab

Sedania As Salam Capital is a subsidiary of Malaysian Shariah-focused fintech firm Sedania Innovator. The firm provides financial products through its GoHalal Financing Program, which uses digital commodities for real-time money transactions and processing.

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.2 ringgit.


Ecommerce enabler to create 10k jobs in Malaysia

Flash Malaysia Express
, an ecommerce service provider, is aiming to create 10,000 job opportunities in Malaysia in line with its expansion plans in the country.

Photo credit: Flash Group

Launched in October 2021, Flash Malaysia Express offers a fast delivery service alongside warehousing and fulfilment solutions for businesses. It provides free door-to-door pickup, charges low cash on delivery, and operates throughout the year.

The company is currently servicing nearly 30,000 deliveries daily, and it employs 4,000 people, including riders and staff.

A business unit under Flash Group,
Thailand’s first unicorn
, Flash Express also has a presence in Thailand, the Philippines, and Laos.

See also:
Exclusive: Ecommerce enabler Zaapi bags $4m seed round led by Flourish Ventures, GFC, Partech


Malaysia’s Carsome buys SG car marketplace

Carsome
, the Malaysian used-car marketplace, has bought a majority stake in
CarTimes Group
, a Singapore-based automotive platform, for an undisclosed sum,
The Business Times

reported, citing sources.

The deal is valued at US$60 million in a mix of cash and equity. Currently, Carsome owns a 51% stake in CarTimes, and the rest is owned by CarTimes’ MD Eddie Loo.

Established in 2001, CarTimes Group provides auto solutions, including retail, rental, insurance, and workshop servicing. Carsome, which raised
US$290 million
 in January, is evaluating a potential listing in the US in the later part of 2022.

The acquisition comes amid heated competition in the auto marketplace space as Carsome’s presence in Singapore – competitor Carro’s home market – has so far been limited.

See also:
Inside Carsome’s and Carro’s all-out war in Malaysia


The tech mogul backing Binance’s Malaysia breakthrough

Binance, one of the world’s largest crypto exchanges, is finally in Malaysia after a rough 2021 trying to break into the country’s growing cryptocurrency market.

In July last year, the Securities Commission Malaysia (SC) issued a cease and desist against Binance and its founder Changpeng Zhao for operating without a license, effectively barring the company from directly setting up shop in the country.

After the ban was issued,
Tech in Asia
 understands that a suitor, Penang-based Sinegy, tried to strike a collaboration with Binance but that didn’t materialize. Sinegy is an SC-recognized digital asset exchange (DAX) operator, having been registered with the regulator since June 2019.

Image credit: Timmy Loen

Binance told
Tech in Asia
 that it does not comment on rumors or speculation. Sinegy didn’t respond to requests for comment.

Binance may be finally getting what it wants. On March 1, another SC-recognized Malaysian DAX operator, MX Global, announced that the global crypto exchange has taken up a strategic stake in the company.

MX Global also revealed that Cuscapi, a Bursa Malaysia-listed tech company, is investing 9 million ringgit (US$2.13 million) in the firm in exchange for preference shares.

In a bourse filing on March 1, Cuscapi estimated that, upon conversion of the shares, it may have “an equity stake between 25% and 35%” in MX Global. The DAX, however, did not disclose the amount of Binance’s equity investment.

MX Global’s representatives “came thoroughly prepared when probed by the regulator about the Binance investment,” a source with knowledge of the matter tells
Tech in Asia
.

“Some of the SC officers had reservations, going by the regulator’s actions against Binance last year, but when they queried the MX Global team, the company’s representatives were able to furnish relevant information,” the source explains.

The source didn’t divulge the details of the negotiations between the SC and MX Global or the investment terms. But he adds that what likely gave MX Global the edge over Sinegy is that the former comprises “industry veterans with experience in navigating the local regulatory landscape.”

All roads lead to Wong

According to filings with the Companies Commission of Malaysia, MX Global was founded on March 7, 2018. Its directors are Fadzli Shah Anuar – who serves as the company’s CEO – as well as Yap Shon Leong, Mat Noor Nawi, Zuraida Elma Zulkefli, and Jason Chan Ling Khee.

Most of these names are associated with two large-cap tech companies listed on Bursa Malaysia – MyEG Services and Excel Force – and their founder Wong Thean Soon.

MyEG co-founder Wong Thean Soon / Photo credit: MyEG

Wong, a tech mogul with interests in both the corporate and startup space, directly controls MyEG and Excel Force. He also has an indirect stake in both companies through an investment vehicle, Asia Internet Holdings, with his business partner Norraesah Mohamad. While she is a career businesswoman, Norraesah garnered attention for being a former supreme council member of Umno, Malaysia’s ruling party.

MyEG, valued at 7 billion ringgit (US$1.7 billion), provides e-government services. Meanwhile, Excel Force is a fintech firm with a market value of 288 million ringgit (US$68.5 million).

Of the two, MyEG gets more attention as it is a dominant govtech player. It’s noted for its proximity to the nexus of business and politics and its ability to draw in some of the country’s largest institutional investors, such as the Employees Provident Fund.

In 2019, MyEG had to
issue a statement
 clarifying that Norraesah’s role in the company was not as an Umno proxy but in her capacity as a corporate figure.

Image credit: Timmy Loen

MX Global’s investor, Cuscapi, also has business ties with Wong. He increased his stake in Cuscapi to 7% through an off-market transaction on March 10, according to a bourse filing that day, which made him a substantial shareholder in the tech group.

Meanwhile, MX Global board member Mat Noor is a director of Excel Force. He also previously served as the chairman of Export-Import Bank Malaysia, which is owned by the country’s finance ministry.

MX Global CEO Fadzli runs a company called New Era Strategic Thinking (Nest), and MyEG’s wholly owned unit, MyEG Capital, invested 500,000 ringgit (US$119,000) in the company for a 30% stake. Wong was also a director of Nest.

This link was formed through a
Shark Tank
-esque reality show called
Make the Pitch
 that MyEG organized in 2011. In the show, founders presented their ideas to a panel of investors, which included Wong, for a certain investment sum. Fadzli won the grand prize.

Wong’s close associates

It is MX Global board member Chan, however, who shares a deeper working history with Wong.

The two were coursemates at the National University of Singapore and both graduated in 1994 with a bachelor’s degree in electrical and electronic engineering, according to
MyEG’s 2016 annual report
.

Chan would go on to work with Wong in some of the latter’s earliest tech ventures, including Technochannel Technologies. Wong listed the firm on Nasdaq via a holding company known as MyWeb Inc.com in 1999, a move that a veteran business journalist dubbed “forward thinking since many Malaysian tech entrepreneurs weren’t brave or imaginative during the Web 1.0 days.”

Chan is also a minority shareholder of MyEG units Agmo Holdings and Car X Services. Before joining MX Global, he served as the chief technology officer of MyEG.

Cuscapi executive chairman Jayakumar Panneer Selvam / Photo credit: PRNewsfoto/MX Global

Another executive who has deep ties with Wong is Jayakumar Panneer Selvam, the executive chairman of Cuscapi. He indirectly owns a 2.29% stake in Excel Force through AIT Shares, an investment holding company.

In 2014, Jayakumar and Wong found themselves in the SC’s crosshairs over
the manipulation of MyEG shares
 between January 16 and April 24, 2007.

Wong entered into a settlement with the regulator for a sum of 7 million ringgit (US$1.7 million), without admission or denial of liability, regarding a claim that the SC wanted to institute against him and 13 others, including Jayakumar.

As MyEG’s managing director, Wong was also
fined
 50,000 ringgit (US$11,900) by Bursa Malaysia in 2016 for an improper disclosure. He was reprimanded for not promptly disclosing to the bourse that the government had given the group the green light to implement a fully online renewal of foreign workers’ permits from 2015 onward.

Wong only disclosed the information in a conference organized by the investment arm of CIMB Bank on January 6, 2015. The bourse noted that MyEG’s share price shot up 26% in the days following the announcement.

At one point, punters would track Jayakumar and Wong’s investments to uncover companies where both men were involved either as shareholder or director.

In 2017,
Nikkei Asia

reported
 that the share prices of Malayan United Industries (MUI), a listed property company, significantly jumped on speculation of a merger because Jayakumar purchased 11 million shares while Wong’s investment vehicle, Asia Internet Holdings, raised its stake to 9 million shares.

The duo’s shareholdings were insubstantial but triggered irrational movements in the share prices of MUI and another company, Palette Multimedia, which Wong had a 3.92% stake in. The speculation around these stocks led the duo to dispose of their shares in MUI and Palette in November 2017.

In a statement, Wong blamed “certain media quarters” that extracted information from annual reports and “published stories that created the misperception of impending merger-and-acquisition activity.”

He would go on to vow to never make “any passive investments in listed equities in the future.”

Hedging their bets

An equities analyst covering MyEG tells
Tech in Asia
 that the tight tech elite network that “we see is simply due to the nature of the tech space, which is volatile” due to constant political changes.

“So many of these early movers such as Wong and Jayakumar might have cross directorships or shareholdings as a hedge,” the analyst adds.

MyEG was able to keep its hold on the govtech sector due to the political stability that came with Barisan Nasional rule. This changed when the coalition lost the 2018 general election to Pakatan Harapan, the pact led by former prime minister Mahathir Mohamad.

The group’s share price took a beating on May 14, 2018, with 2.8 billion ringgit (US$665.6 million) in market value being wiped off in post-election trading. The counter also hit limit down, a mechanism by the Bursa Malaysia that automatically freezes a company’s share price from declining further when it has dipped by 30%.

Investors were jittery because Pakatan Harapan promised a review of all projects approved by its predecessor, some of which were linked to MyEG.

The govtech firm hit limit down a second time on October 19 that year when it was mentioned in the charge sheet of former deputy prime minister and home affairs minister Ahmad Zahid Hamidi, who was part of then prime minister Najib Razak’s cabinet.

Ahmad Zahid is facing 45 charges of corruption, criminal breach of trust, and money laundering. The political strongman has been accused of, among others, accepting 6 million ringgit (US$1.4 million) in bribes in two payments to directly negotiate the contract to supply biodata chips used in Malaysian passports issued by the Immigration Department.

MyEG and another listed contemporary, Datasonic Group, were implicated in the charges against Ahmad Zahid. Both companies denied wrongdoing, saying they
never paid
 anyone to secure e-government services.

In 2019, Wong took up a stake in another listed tech company, Heitech Padu, which also provides govtech services. He owns 5.33% in the group.

MyEG also secured a 10% stake in security solutions firm S5 Systems in December 2021, which is currently undertaking a reverse takeover of transportation company Ancom Logistics.

Both acquisition moves coincided with the Pakatan Harapan government’s tender of the 1.2 billion ringgit (US$275.7 million) National Integrated Immigration System (NIIS) in 2019 as Heitech and S5 were among the frontrunners for the project.

While the NIIS was mooted under Barisan Nasional rule, it was reviewed under Pakatan Harapan with then home minister Muhyiddin Yassin calling for an open tender. After the fall of Pakatan Harapan, Muhyiddin would become prime minister, ensuring the project continued despite a change in regime.

Iris Corp, an immigration services specialist, eventually won the tender. But it is also
partnering with S5 Systems
 to execute certain core modules of the NIIS project.

S5 Systems is led by Syed Mohammad Hafiz Jamalullail, who is from the Perlis royal family. Meanwhile, Ancom Logistics is a subsidiary of the Ancom Group, helmed by tycoon Siew Ka Wei, also an associate of Wong.

The MyEG managing director has also recently surfaced as a substantial shareholder of Widetech Malaysia, owning a
12.29% stake
 in the loss-making property group. His intentions over the acquisition are unknown.

What MX Global gains from Binance

MX Global CEO Fadzli told
business publication
The Edge
 that his company plans to introduce other cryptocurrencies – such as Solana, Dogecoin, Binance Coin, and Cardano – to Malaysians.

Crypto investors and watchers
Tech in Asia
 spoke to say they’d be keen on whether local investors will get access to Binance’s global liquidity pool that allows for cross-border trade.

Investors are also looking forward to accessing Binance’s global order book like that with Indonesia’s Tokocrypto, where the same order book is displayed to users as is on the Binance website. This allows Tokocrypto users to trade with Binance users across the globe.

But to enable these features, including the introduction of new regulated products, MX Global will “need to convince and meet requirements set out by SC and the central bank, Bank Negara Malaysia,” a Kuala Lumpur-based consultant tells
Tech in Asia
.

He cites the current SC’s know-your-customer rules that require users of licensed exchanges to be onboarded onshore to allay money laundering and tax evasion concerns.

“Some offerings, such as
NFTs
, are not regulated but the trading of cryptocurrencies are,” he says.

On Wong’s role, the equities analyst
Tech in Asia
 spoke to says the Binance-Cuscapi deal would benefit MX Global as this opens up more collaboration and knowledge transfer, especially in pushing out various crypto assets.

“Wong is also among a handful of Malaysian corporates who have made inroads to China, especially in the blockchain and AI space,” he adds, citing MyEG’s recent launch of NFT Pangolin, a global marketplace that supports the issuance and trading of virtual assets.

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.21 ringgit.


Inside Carsome’s and Carro’s all-out war in Malaysia

Nikita Puri co-reported this story.

There’s no question that used-car platforms Carro and Carsome are close competitors. The firms have similar business models, compete in overlapping markets, and even raised their seed rounds within months of each other.

But one point of divergence is in how they have expanded into each other’s home markets. While Carsome’s presence in Singapore – Carro’s home market – has so far been limited, the same cannot be said for Carro in Malaysia, where the latter has gained a foothold primarily through a US$30 million injection into local player myTukar in 2019.

Photo credit: Carsome

Since then, Malaysia has become a particularly vicious battleground for the two companies, according to multiple sources who spoke to
Tech in Asia
. The two automotive marketplaces have gone head to head to attract not just car buyers but also dealers – through similar marketing campaigns, no less. The same is true when it comes to talent: In recent months, Carsome has poached multiple myTukar senior executives.

“Carsome can’t move freely because Carro/myTukar is in Malaysia,” says a source who declined to be named. “Home turf is always more important.”

Carsome, Carro, and myTukar declined to participate in this story. A myTukar spokesperson, however, says that following its reorganization, myTukar “achieved record performance in January 2022.” The local car reseller’s revenue for the month was up nearly 40% from November 2021 (when the resignations happened) and over 100% year on year.

Previously, Carsome has
denied
 targeting talent “from any company,” with a spokesperson telling
Tech in Asia
 that “there is no attempt as alleged.”

A raid on myTukar, and data leaks

As
Tech in Asia

reported
 in February, Carsome has made a spate of new hires, including for senior positions, this year. At least eight of these new recruits had previously worked at myTukar.

While these employees joined Carsome between November 2021 and January 2022, documents reviewed by
Tech in Asia
 show that Carsome had been planning the hires for some time: The company had provided job offers to six myTukar employees as early as June 2021.

But none of them left myTukar, at first. A myTukar insider says that the management believed that the six employees spoke to Carsome just to get a sense of what the latter was willing to pay.

Indeed, the insider says that all six employees received higher pay from myTukar after the poaching attempt. In fact, four of the six staff were promoted the following month.

In the end, however, those tenures were short-lived. By January 2022, the six employees had left myTukar, and all but one had joined Carsome. (The employees did not respond to
Tech in Asia
‘s requests for comment.)

Of course, poaching a competitor’s employees isn’t uncommon, but the insider says that Carsome’s poaching is an “ongoing modus operandi.”

Carsome reached out indiscriminately to every single person in myTukar’s senior management in a bid to poach them, he says. “This was not a normal recruitment exercise, but akin to a raid.”

The source says Carsome has conducted three or four rounds of “highly organized” poaching in total. The latest, which targeted middle and junior staff, was in January 2022.

Sources confirmed that myTukar does have non-compete clauses in its employment contracts designed to prevent employees from jumping ship to direct competitors. However, these clauses are also difficult to enforce in Malaysia.

“Regardless, the manner they left – and subsequently aided the poaching or solicitation – was not very ethical,” says the insider. He further adds that myTukar’s decision to try and retain the six employees was “not the best decision” as the employees were “overpromoted, and underdelivered.”

Another source familiar with the situation echoes those points, saying that myTukar’s numbers “practically did not move despite multiplying marketing spending.” But both sources say that the other reason is data leaks.

The insider says that in many instances, Carsome would ask potential employees for confidential information about myTukar or Carro. The second source adds that while it’s not absolutely certain who perpetrated the leaks, the issue ended around the time the six employees left myTukar.

Since then, myTukar has found a new CEO in Derrick Eng, who joined the company in 2018 and was previously its chief sales officer. The first source says myTukar has replaced most of the employees who jumped ship.

While there had been some disruption, myTukar also benefited from having its founder, Fong, on the board. Ultimately, the company ensured that “revenues and volumes do not fall off the cliff due to individuals leaving.”

Carsome’s “generous” incentives

Talent was not the only area in which myTukar and Carsome butted heads. A Kuala Lumpur-based used-car dealer tells
Tech in Asia
 that when business slowed during the Covid-19 pandemic, both companies – along with competitors like
Muv
 – started offering incentives.

These incentives rewarded dealers for selling used cars to Carsome or myTukar, who would in turn sell the vehicles to their customers. The incentives were primarily cash bonuses, handed out based on the number of cars sold.

One Kuala Lumpur-based used-car dealer shared a screenshot of a WhatsApp message sent by a Carsome sales representative. Below is what the promotion, which ran in 2020, entails:

The message also described a lucky draw where the first prize was a 100,000 ringgit voucher (about US$24,000) that could be used to buy a car from Carsome’s online platform.

The dealer says that MyTukar and Muv both offer similar cash bonuses, but they have not been as generous as Carsome.

Another dealer tells
Tech in Asia
 that unlike Carsome, myTukar offers less money – 300 ringgit at most – while having a cap. For instance, while a dealer can sell any number of cars to myTukar, but the cash incentive would only apply to the first 20 units.

Carsome’s promotion for dealers / Photo credit: Carsome

The second dealer adds that while he had worked – and continues to work – with myTukar and Carsome in equal measure, he now prefers working with Carsome due to the promotions, which were introduced after the onset of Covid-19.

“Overall, it seems like in the present conditions, Carsome understands the dealer’s situation because they kept launching different campaigns so that dealers could profit during the pandemic,” explains the first dealer. “MyTukar is overall OK, but compared to Carsome, their campaigns are more restrictive.”

That said,
Tech in Asia
 understands that there have been multiple promotion cycles that have offered different incentives. The dealer recalls another promotion in early 2021, when Carsome offered up to 300 ringgit.

Carsome’s buyback scheme

There is one incentive, however, that only Carsome offers: buybacks. Carsome’s relationship with dealers of used cars runs both ways: Dealers can sell inventory to Carsome and also buy used cars from the platform.

The first dealer has taken advantage of this program. He purchased a few cars from Carsome around April 2021. When Malaysia went into lockdown in May, Carsome offered to buy back the cars at the same price.

“Suppose I get a car for 50,000 ringgit and can’t sell it in one or two months, I can relist the same car on Carsome and see how much they offer for it,” says the first dealer. “Sometimes they offer a good price and sometimes they offer a bad price.”

This, however, raises the question of how much these cars that have been sold and bought back multiple times may have contributed to Carsome’s revenue.

There doesn’t appear to be a definite limit on the buyback program. Both dealers say that a dealer can technically buy a car from Carsome and sell it back more than once. There’s also no specific car models under the scheme, or a required minimum period that a dealer must hold a car for before selling it back to Carsome.

Carro’s Showroom Anywhere in Singapore/ Photo credit: Carro

This could also mean that it’s hard to make an apple-to-apple comparison of Carro’s and Carsome’s revenue figures.

The first dealer explains that while it is not a common practice – Carsome had been the one to come up with the idea – he has been “grateful to have that.” Small dealerships like his can face cash flow problems, especially during unforeseen events like the pandemic, and the buyback program helps relieve some of that pressure.

The second dealer explains, however, that it all depends on the price: “If I bought the car for 20,000 ringgit and they offered me 18,000 ringgit, I wouldn’t go for it.”

Also, even though dealers can buy and sell the same car to Carsome multiple times, there’s little incentive to do so. “Why would we do that? We have to make money.”

Nonetheless, a source highlights that it could help increase Carsome’s revenue figures or transaction values, particularly as the firm raises new funding.

A direct threat

Indeed, compared with Carro, Carsome has traditionally spent more money on marketing. For instance, Carsome spent US$6.9 million on marketing for FYE ended December 31, 2019, while Carro spent just US$1.6 million in FYE March 31, 2020.

To be clear, Carsome has had higher revenues than Carro thus far, which may explain the difference in spending. That said, the latter has closed the gap: it reported US$300 million in revenue – a 2.5.x increase – for FYE March 31, 2021).

Of course, it’s likely that these numbers would have changed since then – both have racked up several hundred million dollars in new funding since their last financial statements were filed, having become newly minted unicorns eyeing public listings.

See More:

Carsome and Carro: A neck-and-neck race to transform how people buy cars

These funding rounds have also led to each company’s focus to diverge: While Carsome has largely stayed within its lane (among its recent moves is an investment in an Indonesia-based offline car auction company), Carro appears to be eyeing the digital banking space with minority investments in Indonesia’s Bank Allo and Bank Index.

The insider, however, also questions Carsome’s “overspending” in its M&A strategy. For instance, Carsome
acquired iCarAsia
 with an
EV/Sales ratio of over 15x
 (the normal benchmark is
between 1 to 3
). It’s a “significantly overvalued” amount, the source says, especially for a company that is still
EBITDA
 negative.

Carro, meanwhile, is currently enjoying the strong returns on its Bank Allo investment. The company invested
about US$5 million
 in Bank Allo at
478 rupiah per share
. Since then, the bank’s stock price has risen more than 10x to over 5,000 rupiah.

MyTukar founder and CEO Fong Hond Sum (left) and Carro founder and CEO Aaron Tan / Photo credit: Carro

At the moment, though, it’s unclear which of the two companies is ahead in Malaysia – neither provides a revenue breakdown by country in financial statements lodged with Singapore’s Accounting Regulatory and Corporate Authority. (Despite its Malaysian origins, Carsome now has a group entity registered in Singapore – a common move among regional companies.)

One advantage that myTukar holds, however, is its partnership with three major players in Malaysia’s automotive industry: Sime Darby (which is a distributor for the likes of BMW, Porsche, and Hyundai), DRB-Hicom (majority shareholder of Proton), and MBM Resources (Daihatsu and Perodua). Sime Darby and DRB-Hicom have also injected capital into Carro.

Malaysia is a smaller used-car market than Indonesia – whose volume is twice as high as the former’s – and Thailand, according to Momentum Works research. That said, Malaysia is still the third-largest used-car market in Southeast Asia, with 1.2 million units sold in 2019.

Moreover, Malaysia would still be a priority for Carsome, given that it is the firm’s home country, even if the platform is also present in the two larger markets. The source familiar with Carro’s strategy says that in Indonesia, Carsome is still “experimental,” i.e., not yet profitable.

“Malaysia is a more mature market for Carsome, and it’s under direct threat,” he says. “They’re feeling the heat.”


Zalora adds BNPL for SEA customers with Pace tie-up

Singapore-based
Pace Enterprise
, a fintech firm that offers buy now, pay later services, has partnered with
Zalora
, a fashion and lifestyle platform.

Photo credit: Zalora/Pace

The partnership enables Zalora to deploy Pace’s payment infrastructure at checkout. The facility is already accessible on Zalora’s web platform and mobile webpage, and it will come to the ecommerce firm’s mobile app later this year.

Pace is currently available to Zalora customers in Singapore and Malaysia. Early trends show the partnership has helped increase average spend by 30% in the two markets, according to Pace.

The fintech firm added that nearly 20% of Pace transactions are being made by new Zalora customers.

See also:
BNPL sours in Australia, but will SEA players buck the trend?

Pace also said that the company is on track to achieve its target of acquiring 1 million users by the end of 2022. It is also eyeing an annualized gross merchandise value of US$1 billion in the same period.

Established in 2020, Pace currently operates in Singapore, Malaysia, Hong Kong, Thailand, and Japan. In November 2021, it
raised US$40 million
 in series A funding from Vertex Ventures Southeast Asia, Alpha JWC Ventures, and other investors.

Meanwhile, Zalora has a presence in Singapore, Indonesia, Malaysia, Brunei, Hong Kong, Taiwan, and the Philippines. Founded in 2012 and part of the Global Fashion Group, the ecommerce firm offers a wide range of local and international brands across apparel, accessories, beauty, and other categories.


PropertyGuru expects EBITDA-positive 2022 ahead of US listing

Singapore-based proptech major
PropertyGuru
 expects to swing into the positive adjusted
EBITDA
 arena in 2022. The outlook comes days before the company’s set listing on the New York Stock Exchange.

PropertyGuru’s Singapore office / Source: PropertyGuru

The proptech firm’s revenue climbed by 22.7% to US$73.8 million in 2021. This is also 3.3% above the company’s forecast of US$71.5 million.

PropertyGuru expects revenue of S$145.1 million (US$106.3 million) in 2022, up 44% from the year before. The increase is bolstered by growth across all its markets in Southeast Asia as the region emerges from the impact of Covid-19.

“Southeast Asia’s growth is being propelled by the long-term fundamentals of urbanization, digitalization, and a rising middle class, and we exited 2021 with good momentum in the real estate sector in our key markets as Covid-19 restrictions eased,” said CEO
Hari Krishnan
.

In 2022, PropertyGuru’s engagement market share grew to 84% in Singapore, according to SimilarWeb data. Rising property prices and consumer confidence mainly drove this growth.

See also:
PropertyGuru’s revenue and valuation fall for the first time in years

Meanwhile, new property listings on the company’s Vietnam unit
Batdongsan
 increased 4.5x in December 2021 compared to August 2021, steered by a sharp recovery in real estate market activity as the local government eased Covid-related lockdown measures in the fourth quarter.

In the second half of 2021, PropertyGuru integrated
iProperty.com
 into its existing operations. This helped the former capture over 90% of Malaysia’s engagement market share, according to SimilarWeb data.

PropertyGuru’s listing is backed by a business combination with Bridgetown 2, a
SPAC
 supported by billionaire investors Peter Thiel and Richard Li. The listing will take place if shareholders vote in favor of the business combination at an
extraordinary general meeting
 on March 15.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.36.


SEA’s tech giants put to the sword following lackluster earnings

Welcome to the Opening Bell 🔔! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by
registering here
.

Hello reader,

It was that week in the quarter again, when the household names from Southeast Asia’s tech industry revealed their GDP-sized earnings results, along with guidance on their near to medium-term financial prospects.

Usually, these events signal the strength of tech businesses in the region, but this time around, it left investors wanting more,
way more
.

These closely watched reports not only provide an insightful view into the current state of a company’s operations but also often send investors either scampering to buy or sell stock and, generally, form the basis of ratings and price target recommendations by Wall Street analysts.

Image credit: Timmy Loen

It’s only fitting to kick off discussions on the recent earnings reports with that of the poster child of Southeast Asian tech businesses: Grab (GRAB, NDAQ). Founded in 2012, the super app has experienced something of a fall from grace since its market debut in December.

A sudden surge of investor optimism
 heading into its Q4 earnings report quickly went up in smoke, with the Singapore-headquartered firm’s shares plunging
well over a third of its value
, or roughly 37%, after posting its results.

Grab’s
Q4 results hardly paint a pretty picture
 and, perhaps, has justified investor skepticism over its stock in recent months.

It may be the case that CEO Anthony Tan’s grand plan for Grab needs more time to bear fruit, but the market has no patience under the current macro environment. Grab’s share price has fallen about 70% in the last three months. You can find an in-depth review of Grab’s financial health
here
.

Another company with a strong claim to being the face of Southeast Asian tech firms’ rapid rise is Sea Group (SE, NYSE), which fared mildly better than its counterpart. This is hardly conciliatory, given that the firm has trimmed over US$130 billion in market value from its peak last November, while its share price hit new 52-week lows last week.

Sea shed about
US$10.4 billion in market value
 after slashing its year-on-year booking guidance for its digital entertainment unit Garena for the first time. India’s ban on
Free Fire
 has been a thorn in Sea’s share price, but as my colleague Simon reports in
this premium story
, there are glimmers of hope that Sea can pull itself out of a deep hole.

Over in China, Baidu’s (BIDU, NDAQ) investors would be forgiven for fearing the worst after Alibaba’s (BABA, NDAQ)
disappointing earnings
 last month.

However, the search engine, whose stock price has shown resilience in the face of China’s big tech crackdown, bucked the trend. Its
rise in quarterly revenue
 was warmly embraced by the market. Baidu’s share price rose immediately following results, but eventually succumbed to broad market-wide weakness to end the week down nearly 4%.

— Shravanth

4 Stocks to watch
Hot stocks, earnings reports, restructuring, activist investor pressure, and more. We feature the stocks that are likely to make big moves during the week.

NIO ES6 electric SUV semi-autonomous car on display / Photo credit: 123rf.com

🇨🇳
Nio Inc (NIO, NYSE):
 The Chinese electric vehicle maker plans to carry out
secondary listings by introduction
 in Hong Kong and Singapore. The firm has received preliminary approval from the Hong Kong Stock Exchange, where its shares are due to trade on March 10, and the Singapore Exchange is reviewing its application.

Concerns over being forced off the US exchanges amid China’s tech crackdown likely stoked these moves. Nio’s primary listing will remain in New York for now. Additionally, the company
reported 6,131 vehicle deliveries
 in February, up 9.9% year over year but down 36% sequentially. The stock has more than halved in value over the last six months.

🇮🇩
Bukalapak (BUKA, IDX):
 This ecommerce giant became the first Indonesian unicorn to list on the country’s stock exchange last year. However, since its market debut, the company’s shares have fallen nearly 70%.

In an attempt to reverse its fortunes, Bukalapak looks to
launch its e-grocery business
, AlloFresh. The new venture will launch with around US$69.7 million from Bukalapak, Growtheum Capital Partners, and Trans Retail Indonesia – a local offline retailer owned by conglomerate CT Corp Group.

🇲🇾
Capital A (CAPITALA, KLSE):
 When AirAsia
rebranded itself as Capital A
 in January, it was a statement by the company that it was seeking to expand its services beyond its core airline and cargo delivery businesses. From unveiling AirAsia Ride to launching its food delivery service in Indonesia, Malaysia, Singapore, and Thailand, Capital A has made significant leaps in realizing its super-app ambitions.

Now, it is taking its
financial product marketplace, AirAsia Money, to Indonesia
. It has partnered with local insurance startup PasarPolis, investment app Bareksa, donation platform Rumah Zakat, and payment service Wise in the release of the new service.

🇯🇵
Panasonic Corp (6752, TYO):
 A long-time supplier for Tesla Inc (TSLA, NDAQ), the electric vehicle (EV) battery maker plans to begin
mass-producing a new type of lithium-ion battery
 for Tesla before the end of March 2024 with two new production lines at its western Japanese plant in Wakayama.

Panasonic is looking to double down on its partnership with Tesla, which stretches back over a decade, as it looks to invest several billions of dollars to
build a mega factory in the US
 to support the US EV behemoth.

3 Market whispers
A lot more reliable than whispers, we highlight engaging source-based reporting from reputable news outlets around the globe.

Image credit: Timmy Loen

1⃣
No IPO pain, no IPO gain:
 China’s most popular fitness app, Keep Inc, has
filed for an IPO in Hong Kong
 after it
reportedly pulled the plug
 on a US$500 million listing on US stock exchanges. The pricing and size of the IPO are yet to be determined.

Keep becomes the latest high-profile Chinese firm to have its IPO plans disrupted after Beijing’s rising scrutiny of overseas listings pushed social networking platform Soul and podcasting app Ximalaya to shelve their US listing plans.

2⃣
Musk brothers in hot water:
 Tesla CEO Elon Musk and his brother, Kimbal Musk,
are being investigated
 by the US Securities and Exchange Commission (SEC) on whether their recent stock sales violated the commission’s insider-trading rules.

The SEC’s investigation began last year after Kimbal sold shares of Tesla, valued at US$108 million, one day before Elon polled Twitter users asking whether he should unload 10% of his stake in the electric car maker and pledging to abide by the vote’s results. The company’s shares fell sharply in the wake of Elon’s poll, with 58% of voters saying he should sell.

3⃣
A truce on the offing?
 For over a year, Amazon (AMZN, NDAQ) and Future Retail (FRETAIL, NSE) have been in an intense legal tussle that has stalled Future’s US$3.4 billion sale of assets to Reliance Industries (RELIANCE, NSE). In fact, the stand-off showed no signs of abating with
reports claiming
 Amazon planned to launch criminal court proceedings against Future Retail.

However, in what appears to be a dramatic U-turn by both parties, there
are now ongoing talks over an out-of-court settlement proposal
. The two parties have until March 15 to explore a settlement via negotiations.

2 Eye-popping facts 👀
Tech in Asia scours the internet to bring you the head-turning numbers from the world of business.

US$31 billion
 – That is the minimum market value at which GoTo Group plans to go public. The Indonesian tech giant has fixed an upper limit of US$42.7 billion in market value and is looking to raise around US$1.5 billion to US$2 billion through an IPO.

US$16 billion
 – That’s how much South Korea’s Hyundai Motor Co (005380, KRX) plans to invest in electric vehicle-related businesses through 2030. However this number pales in comparison to the other big automakers around the world. For instance, Toyota (7203, TYO) plans to invest US$35 billion by 2030 in its EV business, and General Motors (GM, NYSE)
aims to put in US$35 billion through 2025
.

The 1 you didn’t see coming
We spotlight the unusual, not-your-everyday kind of story that has got everyone talking and social media buzzing over the past week.

Image credit: 123rf.com

Feng Shui master foresaw 1MDB misery:
 There has been something about spirituality and finance in the world off late. After the news that the former National Stock Exchange (NSE) CEO regularly consulted a yogi to help run India’s largest stock exchange took the internet by storm, a former Goldman Sachs (GS, NYSE) banker, closely tied to the 1MDB scandal, admitted to
consulting a feng shui master
 to see if more trouble lay ahead over the next decade.

Tim Leissner, the US government’s key witness in the trial of former Goldman colleague Roger Ng over the multibillion-dollar scam to loot Malaysia’s wealth fund, said the feng shui master’s report predicted that “I would have an issue with authorities for the first half of the 10 years but then it would be resolved.”

The ex-banker would also consult the master on a range of matters, from the women in his life to the arrangement of his offices in Asia.

For those readers looking to jump from a weird story to a wholesome one, maybe the tale of this
extraordinary centenarian
 will help you overcome your Monday blues.

That’s it for this edition – we hope you liked it!

Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center.

Happy investing and see you next week!

Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice.


The Carsome lure sees rival firms lose key talent

Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia’s tech and startup community.
Get the newsletter in your inbox everyday with a Premium subscription
.

Hi readers,

People come and go, and that’s especially true with companies and their employees. But behind every ebb and flow of talent leaving a company and joining another is a personal story that rings a truth that we all know but may choose to downplay: People matter and losing them is costly.

I’ve been in the workforce for more than a decade, and I’ve had my share of doing all sorts of jobs. Journalism wasn’t my first gig and when I managed to cut my teeth in the trade, I began right at the bottom as a junior writer.

Every time there was a town hall, I’d hear my previous bosses pull that cliched bluster of “everyone is dispensable,” only to backpedal when key staff start leaving. Then the typical song and dance ensues: The boss will counter offer, with some taking what seems like a new deal while others choosing to sever ties and move on.

That people are crucial to an organization can be gleaned from Capital A chief Tony Fernandes’
LinkedIn post
 where he took aim at “new digital unicorns” who had poached his staff last year. But he wasn’t the only one in the wilderness, as my colleague Putra Muskita would find out – MyTukar, the Malaysian arm of automotive marketplace Carro, also lost talent that year, too.

Where did these employees go? Carsome – the rival of Carro and, to a certain extent, Capital A as well.

Some of Capital A’s and MyTukar’s former employees have been climbing up the ranks in their respective companies for over five years. What made them jump ship, I wonder, given all those years of dedication?

There were whispers of Carsome poaching them, but the company told us that no such attempts were made.

Anyway, journalism requires me to stay factual, and the fact is Carsome is currently a magnet for top talent.

—
Emmanuel Samarathisa
, journalist at
Tech in Asia

Top stories this week

Image credit: Timmy Loen

1.
Capital A, MyTukar lost key execs to Carsome in 2021

The exodus involves junior and senior execs from across AirAsia’s marketing and tech divisions as well as MyTukar’s business development unit.

2.
Unearthing Sea Group’s alumni network

Taking advantage of skill sets honed at Sea Group, the company’s alumni have gone on to launch startups in different verticals.

3.
The Philippines: Asia’s next crypto hub?

From big venture capital deals to increasing crypto ownership, the Philippines is fast becoming a hub for crypto startups. Here’s why.

4.
Alibaba’s financial health in 5 charts

We analyze the financial figures reported by Chinese internet giant Alibaba.

5.
This SPH veteran spun off his jobs platform to catch a big wave

Julian Tan’s FastCo, which runs jobs platform FastJobs, is now working on its series A round – its first fundraise after the company’s spin-off from SPH.

6.
Analyzing MoMo’s super-app ambitions

We dissect the challenges for the Vietnamese unicorn as it plows ahead in the country’s fintech battleground.

7.
How Polygon puts India at the heart of the crypto world

Polygon is leading India’s Web3 revolution, but the road to the top was long and hard.

8.
Exclusive: Two heavy equipment startups backed by Indonesian super angel merge

WebTrace and TraktorHub, which are both backed by Prasetia Dwidharma, have merged into one entity to tackle the heavy equipment sector.

9.
Org Chart: The people steering Lazada

We look at the crew leading Lazada Group as the firm celebrates its 10th year this month.

10.
Carousell triples revenue to $40.6m in 2020

The Singapore-headquartered classifieds giant could list in the US through a SPAC merger as soon as this quarter.


Carsome appoints CFO as group president

Car ecommerce platform
Carsome
 has appointed
Juliet Zhu
 as group president while keeping her current role as chief financial officer (CFO).

Carsome CFO and group president Juliet Zhu / Photo credit: Carsome

In her additional role, Zhu will be responsible for driving corporate development initiatives, including strategic partnerships and investment opportunities, developing new market strategies, and managing Carsome’s overall capital structure and synergy creation across the company’s businesses.

These come in addition to her responsibilities as the company’s CFO, which includes financial reporting, planning and analysis, and investor relations.

Zhu has previously worked in the investment industry across China, India, and Southeast Asia.

Carsome has recently made other senior appointments, such as Ravi Shankar Mallavarapu as
chief marketing officer
, Andrew Mawikere as
country CEO of Indonesia,
 and Siwaphume Lertsansaran as
country managing director of Thailand
.

See also:
Are Malaysia’s startup efforts finally paying off?


The leaders at the helm of Lazada

Welcome to The Checkout! Delivered every Thursday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in ecommerce. If you’re not a subscriber, get access by
registering here
.

Hi there,

In the last year till September 2021, Lazada was clocking in
US$21 billion in gross merchandise value (GMV)
. The Southeast Asian giant, which started out as an Amazon clone in 2012, has played a significant role in the evolution of the region’s ecommerce scene.

Lazada has been through many changes, including a revolving door of CEOs, as my colleague Tay Tian Wen summarizes in our Big Story this week.

Our story also delves into the relationship between Lazada and its parent firm Alibaba. For instance, several senior Lazada executives held top positions at the Chinese tech titan.

While I recommend that you view the visual story on a screen larger than your phone, our Hot Take for this edition is mobile-friendly in more ways than one. It’s about TikTok and its ecommerce ambitions, after all.

— Nikita

THE BIG STORY
Org Chart: The people steering Lazada

Image credit: Timmy Loen

We look at the crew leading Lazada Group as the firm celebrates its 10th year this month.

THE HOT TAKE
ByteDance’s ecommerce play

Here’s what happened:

TikTok Shop, the ecommerce arm of TikTok, has launched in Thailand, Vietnam, and Malaysia.

It was introduced in Indonesia and the UK last year.

TikTok’s ecommerce GMV reached US$951 million in 2021.

Here’s our take:

Last week,
The Checkout
 analyzed why
ByteDance shut down its Shein clone
, Dmonstudio. There’s been major developments on ByteDance’s ecommerce side since then.

For one, TikTok Shop, which allows creators and brands to sell products directly to consumers through the app, is
rapidly expanding across Southeast Asia
 and has ramped up hiring in Thailand, Vietnam, and Malaysia.

In 2021, TikTok’s ecommerce GMV totaled 6 billion yuan (US$951 million), which is
only about 1% of China-only counterpart Douyin’s GMV
 for the year.

But for 2022, TikTok is looking at nearly 12 billion yuan from its ecommerce unit. It has reasons to be optimistic – the year it was established in China, Douyin’s ecommerce arm saw a GMV of about 500 billion yuan.

Indonesia accounted for at least 70% of TikTok’s ecommerce GMV. The rest came from the UK, where TikTok Shop has been available since April 2021.

While Douyin and TikTok’s parent ByteDance keeps its fingers crossed, it knows that livestreaming and social commerce play up to its strengths.

In 2021, over 1.4 million social media conversations around livestream shopping took place in Southeast Asia, about 2x more than the same time a year before, according to a
report from Meltwater
. The media monitoring platform also found that Sea Group’s Shopee posted a 2.5x increase in annual livestream viewership on its platform.

Shopee Celebrity Club livestreaming in action / Photo credit: Shopee

ByteDance has been paying close attention to these trends. Last year, Douyin held a series of offline events in China to attract merchants, with executives describing the app’s
600 million daily active users as “very sticky.”
 The push also coincided with the rollout of payment service Douyin Pay.

The timing is crucial: ByteDance’s ecommerce play comes as China’s government continues to keep a
close watch on tech companies
 for a variety of reasons, including monopolistic behavior. This makes room for others to grow.

Getting into ecommerce also means that TikTok’s parent company considers itself a strong challenger to Chinese giants like Pinduoduo, JD.com, and Alibaba. Others feel that the tide might be turning as well.

Following Alibaba’s recent results, an analyst
told the
Financial Times
 that “the hit from Douyin and Kuaishou livestreaming ecommerce has been huge … Taobao livestreaming can’t compete.” Kuaishou is a  Douyin rival while Taobao is a C2C and B2C shopping marketplace operated by Alibaba.

TikTok’s popularity has spilled over to its ecommerce business and it shows. #TikTokMadeMeBuyIt is so catchy that
BuzzFeed
 came out with several articles dedicated to the hashtag.

Once a Chinese phenomenon, livestreamed shopping has gone global and is fast becoming the modern-day version of teleshopping. So much so that Canadian TikToker Lisa Couture had to
temporarily close her candy store
 to fulfill the hundreds of orders that flooded in after her video went viral.

Analysts also think that it’s only a matter of time before Chinese sellers
will have access to the wider world through TikTok
, which is expected to be “friendlier” to them than Amazon has been.

Besides algorithms and resources, there’s another element at work in the social commerce game: the human factor.

The popularity of TikTok Shop also depends on its roster of livestreaming stars. China’s Li Jiaqi or Lipstick Brother,
who sold US$2 billion in goods in a single day on Alibaba
, is a good example of the competition that ByteDance faces.

It’s possible that with the now-defunct Dmonstudio, ByteDance could have had some control over the quality of select merchandise. But that’s not possible with a livestreaming model where the company has less control over the merchants on its platform.

Take ByteDance’s Fanno, for instance. Much like
Shopee’s problems in India
, the quality of products is
reportedly a hit or miss on Fanno
 in Europe.

ByteDance likely expects so much more from TikTok Shop than from Fanno. After all, TikTok already has a captive audience ripe for a livestreaming harvest.

– Nikita

NEWS YOU SHOULD KNOW

Check out
Tech in Asia’s
 coverage of the ecommerce scene
here
.

1⃣
Sea Group’s

market value fell by US$10.4 billion
 after the company posted its quarterly results. The slump comes after Sea cut its year-on-year booking guidance for its digital entertainment unit Garena – a first for the Southeast Asian internet firm.

2⃣ China-based
Dianxiaomi
, a cross-border ecommerce solutions startup,
has secured US$100 million
 in a round led by Tiger Global Management and Huaxing Growth Capital. Founded in 2014, Dianxiaomi provides enterprise resource planning solutions for ecommerce players.

3⃣
AlloFresh
, an Indonesia-based e-grocery startup, is preparing
to launch its business
 with about 1 trillion rupiah (around US$69.7 million) from Bukalapak and others.

4⃣
SariSuki
, a social commerce startup based in the Philippines,
has raised US$10.7 million
 this year. One of its co-founders is Brian Cu, the former president of Grab Philippines.

5⃣ After
Garena’s

Free Fire
 game was banned in India as part of a clampdown on Chinese apps,
Singapore’s government has reached out to the Indian government for clarification
. Garena’s parent company, Sea Group, is headquartered in the city-state.

FYI

Photo credit: 123rf.com/supernam

Retailers seek real-world profits in the metaverse

While it’s too soon to know if a metaverse play can reduce overheads and increase margins for ecommerce businesses, many see it as a way to cash in on the attachment that people feel for their digital selves.

That’s it for this edition – we hope you liked it! Do also check out previous issues of the newsletter
here.

Not your cup of tea? We’re working on letting you unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. We’ll let you know when it’s deployed.

See you next week!


ScaleUp Malaysia names 11 startups in third cohort

ScaleUp Malaysia
 has revealed the 11 startups that have received investments as part of its third cohort – which was organized in partnership with Quest Ventures, Indelible Ventures, and Mranti.

From left: Quest Ventures partner Jeffrey Seah, ScaleUp Malaysia managing partner Xelia Tong, and Indelible Ventures managing partner Kevin Brockland / Photo credit: ScaleUp Malaysia

The cohort kicked off in August 2021, seeing over 200 applications from 26 countries. ScaleUp Malaysia then selected 20 companies to participate in the third program, linking them to Quest Ventures and Indelible Ventures, over 16 weeks.

The companies participating are in the edtech, ecommerce, cybersecurity, and food and beverage spaces, among others. Each selected firm will receive up to US$60,000 in funding as part of the program.

The 11 chosen firms are:

GuruInovatif
, a platform that provides complete online resources for teachers’ professional development.

MadCash
, a fintech platform that provides microloans and captures business performance and repayment data of its women entrepreneurs.

Open Academy
, an edtech platform that provides real, non-theory based programs, training, and content from industry practitioners.

SpareXHub
, an ecommerce marketplace for genuine auto spare parts.

VireServe
, a cybersecurity firm that offers a
SaaS
 platform for cyber security checks, compliance automation, and security protection for day-to-day business.

WA Sushi
, an F&B ecommerce company building “quality food made for delivery.”

Howuku
, an online platform that offers an all-in-one web optimization and analytics solution.

Kumo
, a SaaS provider for the beauty and medical aesthetics industry.

Midwest Composites
, a designer and manufacturer of futuristic materials.

Recqa
, a knowledge-sharing platform for team members to share learnings and other relevant information.

BizTech Asia
, a cross-media and marketing platform that enables B2B marketing for clients.

ScaleUp Malaysia has also opened registration for startups to state their interest to participate in the next cohort.


AirAsia launches financial marketplace in Indonesia

Malaysia-based AirAsia has launched a financial product marketplace,
AirAsia Money,
 in Indonesia. The service is integrated within the AirAsia app and is already available in the country.

Photo credit: 123rf

AirAsia Money, which was launched for the first time in Malaysia last year, is a marketplace that aggregates various financial products, such as insurance, investments, money transfers, and donation support.

AirAsia partnered with local insurance startup PasarPolis, investment app Bareksa, donation platform Rumah Zakat, and payment service Wise in the release of the new service.

Moving forward, the company said that it wants to expand the service to other countries.

Earlier this year, AirAsia
launched its food delivery service
 in Indonesia, after making it available in Malaysia, Singapore, and Thailand.

See also:
Tony Fernandes responds to critics of his AirAsia super-app gamble


TikTok Shop enters Thailand, Vietnam, Malaysia

TikTok Shop, the ecommerce arm of the social networking giant, has entered Thailand, Vietnam, and Malaysia,
reported

Pandaily,
 citing an
E
brun
 report.

TikTok Shop allows locally based consumers to buy a wide array of goods while also offering businesses more opportunities to make sales via the app.

TikTok, which is one of the fastest-growing social media platforms with over 1 billion users worldwide, also performed
A/B testing
 in Indonesia earlier this month. Currently, companies are only allowed to set operations in Indonesia if they are registered in the country. Moreover, they are only allowed to serve Indonesian users.

The company is hiring locally in Thailand, Vietnam, and Malaysia.

See also:
A uniquely Chinese strategy is helping Zynn take on TikTok


Capital A, MyTukar lost key execs to Carsome in 2021

Additional reporting by Putra Muskita

Image credit: Carsome

2021 was a year of change for AirAsia and MyTukar, the Malaysian unit of Singaporean automotive marketplace Carro.

Covid-19 forced AirAsia to rethink its businesses amid pandemic-induced restrictions that crushed the aviation sector.

The budget carrier was then reborn as Capital A, a holding company with diversified interests, primarily in tech. It bolstered its super app but still kept a few fingers in the airline and logistics businesses.

Meanwhile, MyTukar underwent a reorganization and looked to grow its market share soon after sealing a US$30 million investment from Carro in 2019.

But, along with the change in name and strategic shifts, came major rejigging in the leadership of each company.

Tech in Asia
 has found that about 13 junior and senior executives from AirAsia’s marketing and tech divisions, as well as 12 junior and senior staff from MyTukar’s business development division, left to join Carsome in 2021.

While such corporate moves are commonplace, a former AirAsia employee with knowledge of the matter says the episode was unique as many who left the airline claimed to have been poached to beef up Carsome’s digital marketing and tech units.

See also:
Carsome and Carro: A neck-and-neck race to transform how people buy cars

The resignations have irked AirAsia co-founder and CEO Tony Fernandes, who in a February 3
LinkedIn post
, took a swipe at his former colleagues, saying they “have never quite performed well in their new companies.”

While he did not explicitly mention Carsome, Fernandes also hit out at “new digital unicorns who actually have not achieved much” for poaching ex-AirAsia staff.

Carsome is said to be Malaysia’s first tech unicorn following its share-swap deal with internet investment firm Catcha in 2021.

“It takes a lot more than one person and that [is] the beauty and as people leave we replace them with better people,” Fernandes wrote in the post.

Capital A declined to comment on the staff departures and on Fernandes’ LinkedIn post.

However, the CEO recently edited his post, clarifying that the statement didn’t “apply to all” and that his point was that it had always been “about the team not the individual.”

Insiders familiar with the matter also tell
Tech in Asia
 that they knew that Carsome had made offers to a number of MyTukar’s staff across different divisions.

Tech in Asia
 has seen offer letters dated June 2021 to select MyTukar employees from Carsome. Some of those named in those letters have jumped ship.

Carsome denied targeting talent “from any company,” with a spokesperson telling
Tech in Asia
 that “there is no attempt as alleged.”

Here’s a list of AirAsia and Carsome’s most notable departures, organized by department.
Tech in Asia
 reached out to a few of the names below but did not receive any responses.

AirAsia

Marketing

Ravi Shankar

Shankar
joined Carsome
 as chief marketing officer in January this year after a five-year stint with AirAsia’s digital marketing unit. Before that, he held the role of chief growth officer at AirAsia from November 2020 to January 2022.

In his previous role, he was part of the team that worked on AirAsia’s plan to diversify into tech, and developed its super app.

R. Bharath

Bharath worked at AirAsia for four years, from March 2017 to November 2021. He then joined Carsome as its head of digital marketing.

Vishnu Teja

Teja has been Carsome’s digital marketing manager since October 2021. He worked at AirAsia in the same position from December 2018 to October 2021.

Selina Loh

Loh worked at AirAsia from March 2020 to December 2021 as marketing assistant manager. She joined Carsome in January this year as marketing strategy manager.

Ameera Iskak

Ameera has been a Carsome’s customer engagement specialist since June 2021. She previously worked at AirAsia as a digital marketing executive for two years.

Edwin Ng Keck Seng

Ng joined Carsome in January this year as head of customer experience, following a two-year stint with AirAsia. He previously worked as group customer happiness executive with Redbeat Ventures (now known as AirAsia Digital).

Tech

Vishnu Nambiar

Nambiar has been Carsome’s CTO
since July 2021
. Prior to this, he was AirAsia’s CTO from September 2019 to July 2021. Nambiar also had stints at Lazada, Microsoft, and IBM.

Kenneth Jaysone Francis

Francis worked as head of software engineering at AirAsia from November 2019 to July 2021. He then joined Carsome as senior vice president of engineering. Francis has also previously worked at telco giant Digi and AirAsia Wifi (then Rokki Wifi).

Roshinee Supramaniam

Roshinee is currently Carsome’s scrum master. Previously she worked at AirAsia for nine years, beginning as an application support executive in 2013 and then working as scrum master from January 2021 to October 2021.

Samini Subramaniam

Samini is Carsome’s senior software engineer (innovations) since November 2021. Previously, she spent two years at AirAsia as a data scientist specializing in predictive modeling, working on various flight delay solutions.

Samini has a doctorate in IT from the Malaysian Multimedia University, where she also served as an academician and researcher from 2013 to 2019.

Ilyas Ishak

Ilyas spent nine years and eight months at AirAsia, working his way from technical product manager to head of software engineering (airline technology). He then joined Carsome as vice president of software engineering in January this year.

Nazar Ibrahim

Nazar worked as a software engineering manager at AirAsia from November 2020 to November 2021. He then joined Carsome as vice president of engineering.

He also had an earlier stint as a software architect at AirAsia from March 2008 to September 2016.

Madan Kumar

Kumar is Carsome’s vice president in the engineering department.

Before this, he was AirAsia’s senior product manager in its airline division from February 2017 to October 2021.

MyTukar

Business development

Jeffrey Ong

Ong joined Carsome as its regional director of group expansion in January. Earlier, he worked with MyTukar for close to two years, spending his last five months as the company’s CEO.

Yap Mun Jinn

Yap worked for MyTukar from November 2020 to November 2021, with his last position at the company being head of strategy. He joined Carsome as regional office lead in January this year.

Ow Mun Loong

Ow worked at MyTukar for a year and three months, beginning as head of operations and then moving up to general manager. He joined Carsome’s regional group expansion office as an expansion and strategy lead in January this year.

Shaun Yap

Yap has been Carsome’s head of risk since January this year. He was MyTukar’s head of risk from April 2021 to December 2021.

Darren Lim

Lim worked at MyTukar as head of sales and then head of business development for a year. He joined Carsome in January this year as a category manager in the regional commercial department.

Amin Zulkiflee

Amin has been Carsome’s manager of business development since January this year. He also worked in business development at MyTukar from July 2020 to January 2022, last holding the position of area sales manager.

Alex Wong

Wong was MyTukar’s talent acquisition executive from July 2021 to December 2021. He was hired for the same position at Carsome in January this year.

N. Nurul Nadhira

Nurul Nadhira is an assistant manager at Carsome, as of January this year. She was a team leader in MyTukar’s business division from July 2020 to January 2022.

Muhammad Naqiuddin Rosli

Naqiuddin worked as MyTukar’s business manager from October 2020 to February 2021. He has worked at Carsome at an equivalent role since April 2021.

Azahary Azman

Azahary has been a business development manager at Carsome since April 2021. Prior to that, he also worked in business development at MyTukar for two and a half years.

Kamal Arif

Kamal worked as a business strategist at MyTukar from March 2021 to October 2021. He immediately joined Carsome that month as a pricing assistant manager.

Mohd Ikhwan

Ikhwan worked as MyTukar’s sales team lead from August 2020 to February 2021. He then joined Carsome as a sales executive.


Patrick Grove co-founded platform partners with Indonesian rental firm

Instahome
, a Malaysia-based home rental platform, has announced a partnership with
Flokq
, an Indonesia-based startup offering similar services. In a statement, both companies said that they will be leveraging each other’s inventory, tech capabilities, and know-how.

Instahome co-founder Patrick Grove / Photo credit: Tech in Asia

Founded in November 2020, Instahome currently has more than 10,000 units listed across Selangor and Kuala Lumpur. The startup was established by Catcha Group owner Patrick Grove and Hitchbird board director
Eric Tan
.

Meanwhile, Flokq was founded by
Anand Janardhanan
 and
Harmeet Singh
 in late 2019. It also has more than 10,000 units listed on its platform, across Jakarta and Bali. Last year, it
acquired
 co-living startup YukStay for an undisclosed amount.

Instahome and Flokq said that they each have serviced thousands of customers.

See also:
Why is Patrick Grove starting a new property marketplace?

With this partnership, both companies aim to target around 14,000 Indonesian workers in Malaysia and 3,700 Malaysian students in Indonesia. The startups also want to serve travelers between the two countries, with the firms expecting increased demand from the market after travel restrictions are lifted.


Monk’s Hill leads $2m round of Malaysian proptech firm

Malaysia-based
Urbanmetry
, an AI-based property data startup, has raised US$2 million in a pre-series A round led by Monk’s Hill Ventures.

Team Urbanmetry /Photo credit: Urbanmetry

Founded by
Koh Cha-Ly
 in 2017, Urbanmetry uses AI and proprietary algorithms to harvest and analyze large amounts of real estate data to gather trends and market intelligence. Its solutions, available to both the public and private sectors, aim to simplify the process of mortgage underwriting. The company has more than 150 corporate clients, including UEM Sunrise, Kuok Group, and RHB Bank.

Urbanmetry also offers an AI-based service called Nowcast to make it easier for homebuyers to get a value projection of their homes. It currently offers its data products in Malaysia, Vietnam, and Japan.

The startup aims to use the fresh capital to accelerate the development and adoption of its mortgage-focused products and platform. It also plans to cover more Southeast Asian cities with its databases.

“The property mortgage industry is typically opaque, with valuations that are often subjective or subject to conflicts of interest. The opportunity to leverage data science in providing a data-driven underpinning to the mortgage process is immense,” saud
Kuo-Yi Lim
, Monk’s Hill Ventures co-founder and managing partner, in a statement.

See also:
What could go wrong for Shopee?