{"title": "Kopi Kenangan opens 14 outlets in Malaysia, targets 50 by year-end", "body": "\n\nCo-founders Edward Tirtanata (left) and James Prananto at the launch of Kopi Kenangan\u2019s first outlet in Kuala Lumpur / Photo credit: Kopi Kenangan\n\n\n\n\nIndonesian coffee chain Kopi Kenangan tells \nTech in Asia\n that it has opened 14 outlets in Malaysia at the time of writing.\n\n\nThe firm\u2019s CEO, Edward Tirnata, \nsaid\n in a May 11 interview with \nDealStreetAsia\n that he expected to open 25 stores in Malaysia by July and 50 by year-end.\n\n\nWhile Kopi Kenangan\u2019s expansion appears to be slower than expected, the 50-outlet target hasn\u2019t been revised, a company spokesperson said without elaborating.\n\n\nKopi Kenangan\u2019s 14 outlets are located around the Klang Valley, which runs across the states of Kuala Lumpur and Selangor. The company doesn\u2019t have any plans at the moment to expand to Sabah and Sarawak, the spokesperson added.\n\n\nMalaysia is the \nfirst overseas destination\n for the chain, which is known as Kenangan Coffee outside Indonesia.\n\n\nBut the Malaysian coffee space is becoming overheated. \nTech in Asia\n \nreported\n last week that a new Malaysian entrant, Koppiku, launched its first store in Kuala Lumpur. Melissa Lim, Kopi Kenangan\u2019s former strategy manager, is one of Koppiku\u2019s founders.\n\n\nKopi Kenangan \njoined\n the unicorn club in 2021 after raising US$96 million in its series C funding round, making it Southeast Asia\u2019s first \u201cnew retail\u201d F&B unicorn.\n\n\nThe firm has more than 850 stores across 64 cities in Indonesia. It also rolled out new offerings in its home market: bread shop Cerita Roti, chicken wings chain Chigo, and cookie brand Kenangan Manis.\n\n\nSee more: \nMalaysia\u2019s coffee scene heats up as foreign players take on local firms"}
{"title": "Grab-led GXBank set to commence operations in Malaysia", "body": "\n\nGXBank CEO Pei Si Lai / Photo credit: GXBank\n\n\n\n\nGrab-led \nGXBank\n has secured approvals from the Minister of Finance and Bank Negara Malaysia to begin operating in the country as of September 1. It is the first of \nfive applicants for digital bank licenses\n in Malaysia to get the green light.\n\n\nGXBank was formed between a consortium comprising \nGXS Bank\n \u2013 the Singapore-based digibank from Grab and Singtel \u2013 as well as a group of Malaysian investors, including local conglomerate Kuok Group. It aims to provide services to unbanked and underserved individuals as well as MSMEs.\n\n\n\u201cOur collaboration with consortium partners such as Kuok Group and other industry players will enable us to work hand in hand, leveraging our respective ecosystems to nurture a resilient and financially inclusive Malaysia,\u201d said \nPei Si Lai\n, GXBank\u2019s CEO.\n\n\nThe bank plans to beta-test its mobile app internally before rolling it out to the public.\n\n\nIn Singapore, GXS Bank logged almost \nUS$3 million in deposits\n as of end-2022. The digibank recently \nincreased\n its maximum deposit amount for savings accounts from S$5,000 (US$3,800) to S$75,000 (US$56,600).\n\n\nSee also: \nSG digibank GXS trails Trust in adoption as deposit cap hampers growth\n\n\nCurrency converted from Singapore dollar to US dollar: US$1 = S$1.36."}
{"title": "Can India\u2019s moon landing launch a spacetech funding bonanza?", "body": "Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHey there!\n\n\nThis has to be one of those days when I find myself swelling with pride for my Indian identity.\n\n\nThe recent achievement of India\u2019s lunar landing serves as a tribute to the unsung heroes who quietly contribute to the country\u2019s progress amid the cacophony of today\u2019s media-driven world.\n\n\nI recall an incident of a \nBBC anchor\n once questioning whether a nation grappling with issues like poverty should prioritize space exploration.\n\n\nWe\u2019ve come a long way since then, with venture capitalists and investors now showing heightened interest in India\u2019s spacetech startups. The success of the nation\u2019s lunar mission is likely to further boost investor appetite in the sector.\n\n\nIn this week\u2019s first Big Story, my colleague Lokesh talks about how many spacetech players have been getting attention from potential investors after the Chandrayaan-3 spacecraft landed on the moon. But beyond funding, investors are looking at one more piece to drive the sector ahead.\n\n\nSpeaking of investors, bigwigs like Temasek, Wavemaker Impact, and Bill Gates-backed Breakthrough Energy Ventures are also making their way into the Indian market. However, their focus isn\u2019t on space but rather on Asia\u2019s rice fields.\n\n\nThese industry giants have launched a joint venture called Rize, which is developing a platform that can identify and implement the best practices for reducing greenhouse gas emissions in rice farming.\n\n\nThe litmus test for Rize: crafting a sustainable business framework that balances profitability with economic advantages for farmers.\n\n\nLastly, this week\u2019s AI Odyssey analyzes the heated debate between AI-generated art and copyright laws after a US federal judge ruled that AI-created works cannot be granted the same copyright protection as those made by humans.\n\n\n\u2014 \nDeepti\n\n\n\n\nTHE BIG STORIES\n\n\n1\ufe0f\u20e3 \nCan Chandrayaan-3\u2019s trip to the moon catalyze Indian spacetech funding boom?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nLocal spacetech firms see more investor interest after the Indian Space Research Organization\u2019s successful lunar mission but all eyes are now on the country\u2019s space policy.\n\n\n2\ufe0f\u20e3 \nThis Temasek-owned agritech firm sows sustainability into rice farming\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nRize is using methods to reduce water consumption and methane in rice cultivation and at the same time looking to build a sustainable business model.\n\n\n\n\nAI ODYSSEY\n\n\nPromising AI topics we\u2019re noticing\n\n\nAI is not an artist, says court\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nA recent US court ruling stated that AI-created artwork without human involvement is not eligible for copyright protection. It ignited a heated debate over who owns art produced by AI and whether it deserves the same copyright protection as works created by humans.\n\n\n\u2014 \nDeepti\n\n\n\n\nFYI\n\n\n1\ufe0f\u20e3 \nMalaysia\u2019s coffee scene heats up as foreign players take on local firms\n:\n The specter of Chinese brands looms large as coffee chains duke it out in offering cheap caffeinated beverages.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n2\ufe0f\u20e3\n \nThis Philippines-based VC eyes $25m SEA fund to target startups with \u2018can do\u2019 spirit\n:\n Kaya Founders has been investing in Southeast Asian startups for the past two years, with majority of its funds going to Philippine firms.\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nAlso check out Tech in Asia\u2019s coverage of the emerging tech scene \nhere\n\n\n1\ufe0f\u20e3 \nFree Fire\n is back in India!\n:\n Sea Group\u2019s Garena has launched a localized version of \nFree Fire\n in the country. This follows the Indian government\u2019s ban of the original game last year due to data privacy issues.\n\n\n2\ufe0f\u20e3 \nRivaling OpenAI\n:\n AI21 Labs, which builds AI systems for natural language, has raised US$155 million in a series C round from Google, Nvidia, and other investors. Following the round, the OpenAI competitor\u2019s valuation rose to US$1.4 billion.\n\n\n3\ufe0f\u20e3 \nBiofourmis CEO steps down after company laid off 120 staff\n:\n Kuldeep Singh Rajput founded the healthtech firm in 2015. Filling his role will be a new CEO office headed by Ben Wanamaker of General Atlantic, one of Biofourmis\u2019 biggest investors.\n\n\n4\ufe0f\u20e3 \nA SPAC-tacular journey\n:\n Noco-noco made its market debut on Nasdaq last week after merging with a US blank-check firm. The Singapore-based company\u2019s main product is a battery used in air and land transport that provides improved performance, durability, and heat resistance.\n\n\n5\ufe0f\u20e3 \nLine- and Kakao-backed Web3 gaming firm makes $8m while staying profitable\n: \nIskra\u2019s paltform carries Web3 gaming titles across different genres. It also provides studios with resources to help with game development.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere.\n\n\nSee you next week!"}
{"title": "Ant Group expands Alipay+ integrations in the Philippines", "body": "\n\nPhoto credit: Ant Group\n\n\n\n\nAnt Group\n has expanded its \nAlipay+\n digital payment platform in the Philippines to add support for three new mobile wallets: AlipayHK from Hong Kong, Kakao Pay from South Korea, and Touch \u2018n Go eWallet from Malaysia.\n\n\nCurrently merchants in Manila and Cebu, two major cities in the country, accept Alipay+.\n\n\nThis upgrade comes as travelers are returning to the Philippines as part of the post-Covid-19 tourism recovery. According to the Philippines\u2019 Department of Tourism, over \n3 million tourists\n have visited the country from January 1 to July 19.\n\n\nCherry Huang\n, general manager of Alipay+\u2019s offline merchant services, said the company\u2019s focus now is to forge more partnerships and onboard more merchants across the country, particularly small businesses.\n\n\nSee also: \nAlibaba\u2019s financial health in 5 charts\n\n\nAnt Group introduced Alipay+ in 2020 to help businesses expand their supported payment methods. The mobile wallets on the platform are also accepted as payment options in markets such as mainland China, Macao, Singapore, Japan, and South Korea.\n\n\nEarlier this year, Ant Group expanded the coverage of the same service in \nMalaysia\n, enabling all 7-Eleven stores there to accept Alipay+ and other mobile wallets in its ecosystem. It has also set up integrations for its mobile wallet ecosystem in \nThailand\n."}
{"title": "Even governments aren\u2019t immune to celebrity charms", "body": "Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a premium subscription\n.\n\n\nHello reader,\n\n\nI really dislike celebrity culture, and it can lead to some ridiculous advertising. Sure, Brad Pitt is a really good actor and has enough handsomeness for five guys, but what the heck does he know about coffee? If he hawked a coffee machine brand, why would his opinion mean any more than John Everyman\u2019s?\n\n\nThe vast majority of celebrities shouldn\u2019t be on the pedestals that we, as a society, put them on. The same applies to the tech world \u2013 we shouldn\u2019t overhype a partnership just because it\u2019s with a high-profile brand or founder.\n\n\nToday\u2019s premium piece looks at how much of Malaysia and Indonesia\u2019s agreements with Elon Musk\u2019s Tesla and Starlink can make a real difference, and how much is just unrealistic hot air.\n\n\nToday we look at:\n\n\n\n\nThe governments starry-eyed over for Musk\n\n\nPDD Holdings\u2019 latest financial figures\n\n\nOther newsy highlights such as the successful fundraises of a few startups and another one going public on Nasdaq\n\n\n\n\n\n\nPremium summary\n\n\nA little less hype, a little more realism please\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nMalaysian Prime Minister Anwar Ibrahim had a virtual meeting with Musk on July 14, claiming that the billionaire would consider investing in the country. But the deal turned out to be the setting up of a Tesla sales and services office in Kuala Lumpur and the licensing approval of Space X\u2019s Starlink in Malaysia.\n\n\nThat\u2019s not great expectation management. Additionally, the deal came at the cost of rare exemptions and concessions\u2026 and it might not even make sense for Malaysia.\n\n\n\n\n\n\nStarnolink:\n Both Malaysia and Indonesia have publicly stated that the satellite internet service will be a game changer, especially for rural populations. But these rural populations are unlikely to be able to afford Starlink\u2019s setup (US$495) and monthly subscription (US$47.40) costs.\n\n\n\n\nContext:\n The average monthly household income in rural Malaysian states, such as Kelantan, is US$772. Even Sarawak, the country\u2019s largest state with a huge rural population, nets a median household income of US$1,060.\n\n\n\n\nCheaper EV alternatives:\n In Malaysia, the cheapest Tesla model goes for US$42,858. Compare that to BYD\u2019s Dolphin, which starts at US$21,649.\n\n\n\n\nRead more: \nMalaysia, Indonesia overhyped Elon Musk\u2019s Tesla, Starlink\n\n\n\n\nNews spotlight\n\n\nPutting the \nduo duo\n in Pinduoduo\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nPDD Holdings, the parent firm of Chinese social commerce giant Pinduoduo, reported \na 47% year-on-year growth in its net income\n to US$1.8 billion for the second quarter of 2023.\n\n\n\n\n\n\nOrder 66:\n The company generated US$7.17 billion in revenue for the June-ended quarter, marking a 66% increase from the same period last year.\n\n\n\n\nUp across the board:\n While revenues from online marketing services rose 50% to US$5.2 billion, revenues from transaction services more than doubled to US$1.97 billion.\n\n\n\n\nThis includes expenses:\n PDD\u2019s total operating expenses also went up 41% to US$2 billion. This is mainly due to the increased spending in promotional and advertising activities.\n\n\n\n\nSee also: \nWhy SEA should watch out for Shein\u2019s top rival Temu\n\n\n\n\nTech in Asia Conference 2023\n\n\n\n\nWhat if you could pitch to not just one group of investors but several of them all at once?\n\n\nIf you\u2019ve got it in you to share about your startup in front of thousands of people \u2013 and stand the chance to win some great cash prizes at the same time \u2013 then Tech in Asia\u2019s Startup Arena pitch competition is just the thing for you.\n\n\nThere\u2019s less than a month to go before we close applications, so if you\u2019d like a shot at the grand prize of more than US$10,000 in cash, you can apply for the competition \nhere\n.\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nUS$15 million Sure sounds good\n\nIndia-based spacetech firm SatSure has \nraised US$15 million in its series A round\n, consisting of equity capital and venture debt. The round was led by Baring Private Equity Partners India and Promus Ventures.\n\n\nSatSure will use the fresh funds to launch four high-resolution optical and multispectral satellites by the fourth quarter of 2025. It will also use the capital for product development and expansion of its operations across the Americas and Asia Pacific.\n\n\n2\ufe0f\u20e3 \nOn the board\n\nSingapore-based Noco-noco, a decarbonization solutions provider, has \nstarted trading on Nasdaq\n as of Monday, operating under the ticker symbol NCNC.\n\n\nThe firm\u2019s primary product is a battery that incorporates its in-house separator known as X-SEPA. The company said its proprietary tech helps improve the performance, durability, and heat resistance of batteries typically used for air and land mobility.\n\n\n3\ufe0f\u20e3 \nI\u2019m a gamer, where\u2019s my million bucks?\n\nKomet Games, a Singapore-based casual gaming platform, has \nbagged US$1 million in pre-seed funding\n from Picus Capital and Creator Collective Capital.\n\n\nThe startup plans to use the funds to expand its team, content, AI tools, and marketing efforts.\n\n\n4\ufe0f\u20e3 \nQashing in\n\nQashier, a payments system provider from Singapore, has \nsecured US$10 million in a series A round\n co-led by Delivery Hero Ventures and IFP Securities.\n\n\nThe funding will help the startup expand geographically, bolster its operations in existing markets, and enhance its product offerings. Besides the city-state, the startup offers its services in Malaysia, Thailand, and the Philippines."}
{"title": "Putting the \u2018gov\u2019 in govtech is no mean feat", "body": "Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a premium subscription\n.\n\n\nHello reader,\n\n\nHave you ever been sailing?\n\n\nFrom the ages of about 13 to 15, my younger brother and I spent most Sundays with my dad and uncle, learning how to maneuver a dinghy in Larne Lough. It wasn\u2019t plain sailing (I\u2019ll get my coat), but it was mostly fun and we learned a few things.\n\n\nOur first lesson was figuring out how to turn the dinghy the right way up after capsizing, in case this ever happened to us at sea. Being dumped into the freezing cold water made that one stick for sure.\n\n\nI also distinctly remember being taught about right of way in the harbor. As my uncle told it, the least maneuverable vessel always has right of way, so almost any boat with an engine had to get out of our way.\n\n\nThe one exception is giant ferries or cargo ships, which are so hard to turn that everyone else has to avoid them.\n\n\nGovernments are much like these large ships \u2013 unwieldy and difficult to turn. Perhaps that\u2019s why Malaysia\u2019s efforts to modernize its government using tech are proving so challenging.\n\n\nToday we look at:\n\n\n\n\nThe bumpy road ahead for govtech in Malaysia\n\n\nElon Musk\u2019s Starlink having to find a local partner to enter Indonesia\n\n\nOther newsy highlights such as the US$6 million round of a firm trying to bring fintech to rural Vietnam, and the Singapore expansion plan of Indonesia\u2019s Fore Coffee.\n\n\n\n\n\n\nPremium summary\n\n\nGovtech gridlock\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nIn recent years, Malaysia has been pushing tech-enabled public sector modernization, or govtech for short, with mixed results.\n\n\nWhile there has been some progress in open data and bringing data centers to the country, policy hurdles and political instability have held such efforts back.\n\n\n\n\n\n\nConsolidation for the nation:\n Consolidating information technology systems is one area Prime Minister Anwar Ibrahim\u2019s administration is looking to progress in. The country\u2019s 297 independent government databases cost US$1.5 billion annually to maintain and Economic Affairs Minister Rafizi Ramli has been meeting with investors and tech players to discuss the possibility of creating a \u201csingle window.\u201d\n\n\n\n\nUnsteady ground:\n The political turmoil the country has faced in recent years threatens to hamstring these govtech efforts, as any large-scale government tech project needs a degree of political stability to work. Malaysia saw three regime changes between 2018 to 2022, and tech firms involved in an overhaul of key migration services appear to have been caught in the crossfire.\n\n\n\n\nBureaucracy backlog:\n While the government does invest in startups as part of the govtech push, founders say the hoops they have to jump through for funding make it hard to move forward with a project. One common example is a rule that a startup can only hire a skilled worker within a certain salary bracket, usually below market value.\n\n\n\n\nRead more: \nThe good, the bad, and the ugly of Malaysia\u2019s govtech push\n\n\n\n\nNews spotlight\n\n\nStar turn\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nElon Musk\u2019s Starlink may not enjoy as smooth an entry to Indonesia as the eccentric billionaire may have hoped for.\n\n\nThe country\u2019s Ministry of Communication and Information Technology has said Starlink will have to \npartner\n with domestic telecom operators to provide services in the archipelago.\n\n\n\n\n\n\nTo go far, go together:\n Usman Kansong, the director general of information and public communication at the ministry, told \nBisnis\n that according to local regulations, foreign telecom firms cannot directly serve customers in Indonesia. The likes of HBO and CNN have deals with domestic operators to offer their services in the country.\n\n\n\n\nForeign threat:\n Local players have been concerned that Musk\u2019s company could disrupt Indonesia\u2019s telco industry and create an imbalanced playing field.\n\n\n\n\nPrice points:\n Starlink\u2019s services come at a price of approximately US$200 per month. Indonesian Health Minister Budi Gunadi Sadikin wants to cut that price to around US$50 per month as part of a plan to provide some 3,000 community health centers with better internet connectivity.\n\n\n\n\nSee also: \nMalaysia, Indonesia overhyped Elon Musk\u2019s Tesla, Starlink\n\n\n\n\nIn partnership with\n\n\n\n\nIn pursuit of a sustainable and equitable future\n\n\n\n\nAs Southeast Asia\u2019s tech ecosystem matures, it\u2019s crucial that it continues to innovate responsibly and sustainably, especially with social and environmental challenges ramping up. Whether you\u2019re a growing startup, a government agency, or a big tech corporation, everyone has a role to play in ensuring that tech is used for good.\n\n\nThis question of \u201ctech for good\u201d was one of the many topics discussed at IMDA\u2019s ATxSummit in June 2023. Panelists dove deep into the question of sustainable digital development, highlighting areas such as the value of private-public sector partnerships, the need for more education efforts, and the role of emerging technologies in sustainability.\n\n\nThe summit also explored many other topics related to tech, such as generative AI. Keep an eye out for next year\u2019s event by following ATxSummit \non LinkedIn\n.\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nFast finance funding\n\nMFast, a Vietnam-based fintech firm, has \nclosed\n its US$6 million series A funding round led by Wavemaker Partners. The company helps connect rural customers with reputable financial institutions, helping break their reliance on unsafe deals made on the gray and black markets to get loans.\n\n\n2\ufe0f\u20e3 \nSingapore foray for Fore Coffee\n\nThe Indonesia-based coffee chain plans to \nopen\n at least one branch in Singapore by the fourth quarter of this year. As of August, Fore Coffee has 114 branches in Indonesia and aims to increase that number to 170 by November.\n\n\n3\ufe0f\u20e3 \nFully charged\n\nCharged Asia, an electric-vehicle (EV) manufacturer from Singapore, has \nsecured\n US$40 million in investment from Indonesian coal producer Geo Energy Resources. The EV firm offers e-bike rental services as well as direct sales of its bikes and a rent-to-own model.\n\n\n4\ufe0f\u20e3 \nMarkato goes to market\n\nSome former Deliveroo and Uber executives have \nlaunched\n Markato, an online wholesale marketplace for independent retailers and buyers. The firm, which will begin operations in Hong Kong, raised a US$5 million seed round in the second quarter of this year from investors like Lightspeed."}
{"title": "Ex-Fave boss Joel Neoh, Pickup Coffee backers invest in Malaysian coffee upstart", "body": "\n\nPhoto credit: Koppiku\n\n\n\n\nKuala Lumpur-based \nKoppiku\n is the newest Malaysian coffee chain and it boasts a roster of prominent angel investors.\n\n\nKoppiku (which means \u201cmy coffee\u201d in Malay) will be launching its maiden store in the upscale Kuala Lumpur suburb of Mont Kiara on September 1. The firm\u2019s major shareholder is Malaysian entrepreneur Rajiv Bhanot, according to company filings.\n\n\nBhanot tells \nTech in Asia\n that Koppiku initially plans to expand through company-operated stores as opposed to conventional franchising.\n\n\nThe firm will be pricing its beverages between 5 ringgit (US$1.07) and 9.90 ringgit (US$2.13), excluding substitutions and add-ons, First Move co-founder Audra Pakalnyte tells \nTech in Asia\n. First Move, an early-stage fund founded by former Fave executives Joel Neoh and Pakalnyte, is among Koppiku\u2019s pre-seed investors.\n\n\nThis effectively puts the upstart in the same group as other coffee chains making inroads in the country, such as local players ZUS Coffee and Gigi Coffee as well as Indonesia\u2019s Kopi Kenangan.\n\n\nKoppiku\u2019s other Malaysian investors include Bhanot\u2019s younger brother, Sachin, who heads Prosus Ventures\u2019 Southeast Asian arm; AC Ventures managing partner Hann Yeoh; RHL Ventures co-founder Raja Hamzah Abidin; and Singapore-based VC firm Antifragile Ventures, which is headed by Angelo Lee, the co-founder of Philippines-based grocery platform SariSuki.\n\n\nTwo of Koppiku\u2019s angel investors, Yeoh and Antifragile Ventures, are also backers of Philippine coffee chain Pickup Coffee.\n\n\nPakalnyte tells \nTech in Asia\n that First Move invested in Koppiku following the results of a closed-group consumer survey that showed \u201cpromising acceptance\u201d of new coffee-chain players entering the Malaysian market.\n\n\nShe added that Koppiku plans to open more outlets throughout the Klang Valley \u2013 encompassing Kuala Lumpur and Selangor \u2013 later this year but didn\u2019t disclose the targeted number of stores.\n\n\nSee more: \nMalaysia\u2019s coffee scene heats up as foreign players take on local firms\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.64 ringgit."}
{"title": "Malaysia\u2019s coffee scene heats up as foreign players take on local firms", "body": "A war is brewing in Malaysia. It\u2019s one that involves coffee and the craze is pitting foreign brands against homegrown firms.\n\n\nFirst came American coffee chains Starbucks and The Coffee Bean and Tea Leaf (CBTL). But tech-enabled homegrown players started cropping up to tackle Malaysia\u2019s growing middle class by offering premium coffee at a cheaper price.\n\n\nAs these upstarts mushroomed, they caught the attention of foreign players such as Kopi Kenangan, which decided to make Malaysia their port of call for overseas expansion. And looming over all these is the specter of Chinese players like Luckin\u2019 Coffee, which has already set up shop in Singapore.\n\n\n\n\nZUS Coffee\u2019s first outlet in Binjai / Photo credit: ZUS Coffee\n\n\n\n\nMalaysians love their coffee. Total consumption of the caffeinated beverage grew from 625,000 bags \u2013 each weighing 60kg \u2013 to 800,000 in 2022, \naccording\n to market insights provider Statista.\n\n\nWhile this figure pales in comparison to that of neighbors like \nThailand\n and \nIndonesia\n, Malaysia remains hot on the map of coffee companies.\n\n\nBut is there room enough for everyone? \u201cNo,\u201d equity analysts covering the food and beverage sector as well as investors backing some of these entities tell \nTech in Asia\n.\n\n\nThey cite two reasons. Firstly, Malaysia may have a growing middle class, but the country\u2019s population is relatively small compared to neighbors Indonesia, Thailand, and the Philippines.\n\n\nSecondly, Malaysia isn\u2019t insulated from externalities such as higher import costs brought about by a weaker ringgit and inflation back home, leading to coffee companies targeting the same group of coffee drinkers.\n\n\nLuckin\u2019 charm\n\n\nTo understand Malaysia\u2019s premium coffee scene, one needs to dial back to circa 1997, when coffee chains CBTL as well as Starbucks opened their maiden stores in Kuala Lumpur.\n\n\nThe \u201csell\u201d then was to target the country\u2019s upper-middle class, says a coffee industry insider based in the capital.\n\n\nTo be sure, the country has always had a coffee culture (think Chinese coffee shops). Malaysia also grows its own plants, mainly the liberica variety, but remains a net importer of coffee beans to meet demand.\n\n\nBut the craze for premium coffee truly took off when CBTL and Starbucks landed on Malaysian shores, the insider says.\n\n\nBetween the two, Starbucks stole the limelight because it\u2019s backed by the Berjaya Group, a well-connected family-run conglomerate with a number of listed entities on Bursa Malaysia, the country\u2019s stock exchange.\n\n\nCBTL only made a comeback recently after a change of hands in ownership, following an acquisition by the Philippines\u2019 Jollibee Foods Corporation in 2019. In May, CBTL \nopened\n its 150th store in Malaysia.\n\n\n\n\nStarbucks is the leading coffee chain by store count. / Photo credit: Starbucks Malaysia\n\n\n\n\nIn the early 2000s and right through the decade, hipster cafes and specialty coffee houses began dotting not only the capital but other urban states such as Penang.\n\n\nThe draw here is not only the desserts and Instagram-worthy pictures, the insider says, but the specialty beans available for coffee connoisseurs. Some Korean coffee chains such as Coffea Coffee started making their forays into Malaysia as well.\n\n\nBut things really took a different turn from 2017 onward with Chinese-based Luckin\u2019 Coffee. While it has yet to open a store in Malaysia, Luckin\u2019 inspired a class of entrepreneurs to mimic its fast-moving business model.\n\n\nThere were some early failures, says in the insider. But the first tech-enabled upstart to go to market was ZUS Coffee, founded by a group serial entrepreneurs, such as Ian Chua, who\u00a0exited Hermo, the ecommerce platform they started.\n\n\nZUS Coffee established its first store in 2019 in the upper-middle class Binjai suburb of Kuala Lumpur, but it quickly scaled to not only open outlets in major parts of the Klang Valley, but also outside the capital, aiming for the country\u2019s Tier 2 cities and newer townships.\n\n\nAside from moving quickly, what gave ZUS Coffee the edge was that it targeted a group of drinkers just below the Starbucks band, the insider says, adding that ZUS Coffee also expanded quickly in states generally ignored by larger brands.\n\n\nFor instance, it opened three outlets between 2021 and 2022 in Perlis, Malaysia\u2019s smallest state that borders Thailand, while Starbucks \nopened\n its maiden and only outlet in the state last year.\n\n\nZUS Coffee is also profitable, posting an after-tax profit of 3.8 million ringgit (US$816,632) on the back of 86.9 million ringgit (US$18.7 million) in revenue last year, according to the coffee firm\u2019s company filings.\n\n\nEnter: competition\n\n\nAs ZUS gained traction, other local upstarts began mushrooming across town, such as Gigi Coffee and HWC. Both companies are run by founders who hail from family conglomerates.\n\n\nGigi \nhas\n 121 outlets, while HWC \nhas\n 33.\n\n\nBoth, just like ZUS, have ventured outside the Kuala Lumpur bubble. Gigi has also upped its game by stepping into the restaurant business with its American diner concept.\n\n\nAmong these three, ZUS remains in the lead with 270 outlets nationwide. Recently, Filipino billionaire Frank Lao \ntook up\n a 35% stake in the company, where part of the investments are geared towards expansion in the Philippines.\n\n\nBut all three local coffee companies have been making bullish statements on store growth. And more are jumping on the bandwagon. Former Fave executives\u00a0Joel Neoh and Audra Pakalnyte have invested in a new tech-enabled coffee company called Koppiku through their early-stage fund, First Move. Koppiku\u2019s maiden store opens on September 1 in the upscale suburb of Mont Kiara.\n\n\nForeign players want in too. Japanese conglomerate Marubeni Corporation plans to introduce the Tim Hortons coffee chain in Malaysia this year.\n\n\nIndonesia\u2019s Kopi Kenangan made Malaysia its first overseas expansion destination and is targeting to open up 50 stores by the end of this year. It\u2019s an ambitious one as at the time of writing, Kopi Kenangan only has \n13 outlets\n in Malaysia, all of which are in Kuala Lumpur and nearby Selangor.\n\n\nBut equity analysts mentioned earlier in the article tell \nTech in Asia\n that the lines separating these coffee companies are blurring.\n\n\nInitially, Starbucks catered to the upper-middle class. These are urban folk, mostly with white-collar jobs and strong spending power.\n\n\nBut Starbucks has been moving into the middle and lower-middle income space, the analysts say, citing the franchise\u2019s Americano beverages, priced at 5 ringgit (US$1.08) per cup \u2013 the same range offered by ZUS, Gigi, and others.\n\n\n\n\nPhoto credit: Starbucks Malaysia\n\n\n\n\nThey also flag that Starbucks has been expanding into newer townships and cities outside Kuala Lumpur \u2013 once thought to be the domain of these tech-enabled coffee upstarts.\n\n\nThe coffee chain isn\u2019t slowing down. It has 393 stores and that\u2019s an addition of 14 stores from the previous quarter, \naccording to\n a note published on August 15 by Maybank Investment Bank analyst Jade Tam.\n\n\nHunting for value\n\n\nEven with Starbucks\u2019 increasing presence in Malaysia, Tam wrote that Berjaya Food wasn\u2019t able to save on raw material cost for its Starbucks stores due to unfavorable currency exchange rates despite lower global coffee bean prices.\n\n\nShe noted that Berjaya Food recently posted weaker topline and bottomline growth for the fourth quarter of this year \u2013 which ended June 30 \u2013 primarily due a \u201chigher base comparison\u201d from Q4 2022\u2019s pent-up demand and margin compression from high raw material costs.\n\n\nLower margins are also being priced in this year and next, according to three Malaysia-based coffee chain owners \nTech in Asia\n spoke to.\n\n\nSo where is the value and is it all about coffee? Two Kuala Lumpur-based investors, who have put money in a number of these tech-enabled upstarts, say that the business model isn\u2019t so much selling quality coffee but more about efficient retail distribution.\n\n\nThe tech aspect of the business is merely a \u201cvalue add,\u201d they say.\n\n\n\n\nGigi Coffee\u2019s maiden diner at The Curve shopping mall in Petaling Jaya / Photo Credit: The Curve\u2019s Facebook\n\n\n\n\nThey add that two factors make or break operating a coffee chain like ZUS or Gigi: the quantity of beans each purchases and how many coffee cups one can clear per retail outlet.\n\n\nCoffee beans, while not being a fixed cost, are sizable operational capital and they need to be cleared by a certain date. This is why some tech-enabled chains \u2013 such as Indonesia\u2019s Fore \u2013 own roasters, enabling the firms to hedge against low sales in their respective outlets.\n\n\nBut the main pitch to invest in such businesses, the duo say, is cost recovery. Based on their experience in running a standalone coffeehouse selling artisanal beans, they expect a two- to three-year timeline to recover investments. The tech-enabled ones pitched a quicker timeline, which was less than a year.\n\n\nAlso, retail businesses with a sizeable presence remain a \u201csexy\u201d investment for institutional investors, according to analysts \nTech in Asia\n spoke to. They cite the likes of Kuala Lumpur-based private equity firm Creador, which is among \nthe three largest investors in its category\n in the country.\n\n\nNewswire \nBloomberg\n recently \nreported\n that Creador plans to list three of its investments on the Bursa Malaysia: budget retailer Eco-Shop, bubble tea chain Tealive, and pet food maker Pet World International.\n\n\nBut all of the Malaysian sources agree that things may change should Chinese brands such as Luckin\u2019 and Cotti enter the market. While Malaysian coffee chains have scaled, they can never match the speed of the Chinese firms, one investor warns.\n\n\nDespite being mired in an accounting scandal, Luckin\u2019 staged a comeback, even \nowning more outlets\n than Starbucks in mainland China. Luckin\u2019, as well as Cotti, deploy aggressive marketing tactics, offer generous discounts on drinks, and keep prices of beverages low. Also, Cotti \nreportedly\n opened 1,300 stores in five months.\n\n\nThat ability to pivot and scale quickly is something Malaysian coffee companies can\u2019t pull off yet, the sources say.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.65 ringgit."}
{"title": "Malaysia, Indonesia overhyped Elon Musk\u2019s Tesla, Starlink", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by Tech in Asia journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles.\n\nWe have seen over the past few weeks the extent to which Malaysia and Indonesia have gone to lure Elon Musk and his billions.\n\n\n\n\nMalaysian Prime Minister Anwar Ibrahim (right) in talks with Tesla and SpaceX founder Elon Musk during a July 14 virtual meeting / Photo credit: Anwar Ibrahim\u2019s Twitter account\n\n\n\n\nFor instance, Malaysian Prime Minister Anwar Ibrahim had a virtual meeting with Musk on July 14, claiming that the billionaire would consider investing in the country. But the deal turned out to be the setting up of a Tesla sales and services office in Kuala Lumpur and the licensing approval of Space X\u2019s Starlink in Malaysia.\n\n\nThis came at the cost of rare exemptions and concessions. Ibrahim still hopes Musk himself will join him in opening Tesla\u2019s Malaysia office in September.\n\n\nNot wanting to be outdone, Indonesia\u2019s Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan \nsaid\n in an August 14 Instagram post that the country will be signing two deals with Musk soon. These involve the construction of a lithium battery factory and the approval of Starlink for rural areas.\n\n\nPandjaitan claims the business magnate will be visiting the country in September or October.\n\n\nBut the swooning over Musk is too much.\n\n\nConsider Tesla. In Malaysia, the \ncheapest\n model, the Tesla Model Y Standard Range RWD, is 199,000 ringgit (US$42,858). The long range and performance versions of the vehicle retail for 246,000 ringgit (US$52,962) and 288,000 ringgit (US$62,004), respectively.\n\n\nWant a blue-colored one? That\u2019ll cost you too \u2014 5,000 ringgit extra (US$1,076) for black, silver, or blue paint. There are other add-ons, from interior color to full self-driving mode, that range from US$2,153 to US$6,890.\n\n\nIf Malaysia was a high-income nation, then this wouldn\u2019t be a problem. But it isn\u2019t. Economic Affairs Minister Rafizi Ramli \nbelieves\n that Malaysia could surpass the high-income threshold by 2026 if the country maintains 4% in annual growth. Indonesia is \nexpecting\n to breach that threshold by 2045.\n\n\nClearly, the Tesla price tag is out for many middle-income earners. This is where Chinese EV makers, which typically provide cheaper options, take the stage.\n\n\nBYD, for example, is making inroads in Malaysia. Distributed by government-linked Sime Darby, BYD has two models that are currently sold in the country.\n\n\nThe first is the Atto 3, which has been available since December and is priced between 149,800 ringgit (US$32,256) and 167,800 ringgit (US$36,137), depending on the model.\n\n\n\n\nBYD Dolphin / Photo credit: Sime Darby Motors\n\n\n\n\nThe second and more recent launch is the Dolphin. The standard version goes for 100,530 ringgit (US$21,649) while the premium range is 125,530 ringgit (US$27,033), significantly cheaper than a Tesla.\n\n\nSoutheast Asia, though home to several emerging countries, is a big EV market. According to a \nstudy\n by research firm Counterpoint Research, Chinese brands sold 75% of their Q1 EV stock in the region.\n\n\nNickel-rich Indonesia, in particular, is a target for Chinese EV makers \nBYD\n, \nHozon Auto\n, and \nGreat Wall Motor\n.\n\n\nTo be sure, Indonesia and Malaysia want to go big with EV; it\u2019s their national policy. Indonesia wants to \nbuild out\n an EV industry that can be an alternative to China\u2019s, while Malaysia is \nlooking to national carmaker Proton\n to introduce vehicles below the 100,000 ringgit price tag. Proton is 49% owned by Chinese auto company Geely.\n\n\nIn both countries, the main pain point is price. The challenge: attracting low- to middle-income earners. To do this, the Indonesian government \nslashed\n tax on EVs from 11% to 1% in April. It also \npromised\n subsidies for locally made EVs.\n\n\nThat said, 85% of Indonesians still depend on two-wheelers, \naccording\n to the country\u2019s statistics department. So, Tesla is nowhere near tackling this market.\n\n\nOut of reach\n\n\nWhat about Space X\u2019s Starlink? Again, both Malaysia and Indonesia have gone public to state that the satellite internet service will be a game changer, especially for rural populations.\n\n\n\n\nMalaysians have the option of choosing one of two Starlink kits: standard or high-performance. / Photo credit: Starlink\n\n\n\n\nBut the upfront expenses will hit pockets hard. In Malaysia, the subscription for the service costs 220 ringgit (US$47.40) per month with no contract. Great. But then you\u2019ll need to fork out 2,300 ringgit (US$495) for the standard kit consisting of a Starlink dish, a base, a Wi-Fi router, and cables.\n\n\nThe standard package is designed for casual users, but those wanting to use Starlink for business and enterprise applications will need to opt for the high-performance kit going for 11,613 ringgit (US$2,500).\n\n\nFor that hefty price, Starlink claims the kit is souped up, being able to withstand high temperatures and extreme environments and coming with a spare power supply.\n\n\nTo be sure, it doesn\u2019t mean that if someone lives in a rural part of a country that they are automatically less well-off. Let\u2019s get that straight.\n\n\nBut the average monthly household income in rural Malaysian states, such as Kelantan, is 3,614 ringgit (US$772). Even Sarawak, the country\u2019s largest state with a huge rural population, nets a median household income of 4,978 ringgit (US$1,060), according to the \nlatest government data\n.\n\n\nAnd for context, home broadband plans under Telekom Malaysia, which has the largest fiber network in the country, are comparatively cheaper. Base plans range from 89 ringgit (US$19.20) per month for 30 mbps to 129 ringgit (US$27.80) per month for 300 mbps.\n\n\nEquipment is usually bundled together with the subscription and, yes, there\u2019s a lock-in period where you\u2019ll have to subscribe to a provider\u2019s service for at least two years before you terminate your plan. Ending it earlier incurs a penalty.\n\n\nYou might cry foul, and indeed there might be a case here, but for the average man or woman working the streets of Kedah and Kelantan, cheap broadband is more than welcomed. This effectively puts Starlink out of reach for its intended audience.\n\n\nSee more: \nMaking sense of Tesla\u2019s Indonesia investment\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.64 ringgit"}
{"title": "Malaysian startup secures Antler funding to address networking pain points", "body": "\n\nImage credit: Mole\n\n\n\n\nThe business world has long been a \npush and pull\n between extroverts and introverts. Nowhere is that more apparent than in networking sessions.\n\n\nThis has led \nMole\n, a Malaysian startup building an all-in-one networking platform, to organize an event series dubbed \u201cI Hate Networking.\u201d\n\n\n\u201cWe understand that networking can be uncomfortable for anyone, and especially for those who are introverted,\u201d said co-founder and COO \nMelly Ling\n. \u201cMole\u2019s vision is to create a world where professionals network for real connections that go beyond business transactions.\u201d\n\n\nBut the event series is just the tip of the iceberg. Mole is also creating a digital business card powered by near-field communication and QR codes, with the aim of making networking more productive and produce less paper waste. Doing so would let the company take a stab at the traditional business card market, which Mole co-founder and CEO \nAu Soung Rong\n said is worth US$1 billion.\n\n\nThe company \nhas recently secured US$110,000 in pre-seed funding from early-stage VC firm Antler.\n\n\nFunding details\n\n\n\n\n\n\nFunding amount:\n $110,000\n\n\n\n\nLead investors:\n Antler\n\n\n\n\nStage:\n Early Stage\n\n\nSource\n\n\n\n\nFounded in June 2022, Mole was previously bootstrapped.\u00a0\nThis investment will fund the development of Mole\u2019s digital business card platform and the launch of a networking app tailored for SMEs in Malaysia.\n\n\nThe company plans to expand the business card platform to other parts of Southeast Asia next year. \nIt also offers a variety of features to help professionals connect and network such as a messaging system, a contact directory, and event listings\n\n\n\u201cWe believe that Mole has the potential to reshape the networking landscape and create meaningful change in how professionals connect and collaborate,\u201d said Erik Jonsson, partner at Antler.\n\n\nSee also: \nHow tech destroyed Astro\u2019s dominance in Malaysian pay TV\n\n\nMore details\n\n\n\n\n\n\n\n\nMole\n\u2192\n \n\n\nThe company was founded in 2022 by \nSoung Rong A.\n and \nMelly Ling\n.\n\n\n\n\n\n\n\n\n\n\nStage\n\n\nAmount (US$)\n\n\nInvestors\n\n\n\n\n\n\nEarly Stage\n\n\n$110k\n\n\nAntler\n\n\n\n\n\n\nTotal\n\n\n$110k\n\n\n\n\n\n"}
{"title": "Grab\u2019s financial health in 9 charts", "body": "Southeast Asian super app Grab just announced its second quarter 2023 results. Below are nine charts \u2013 updated by quarter \u2013 that track the company\u2019s performance.\n\n\n\ufeff\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n"}
{"title": "Gobi leads Malaysian recommerce startup\u2019s series A round", "body": "\n\nPhoto credit: CompAsia\n\n\n\n\nCompAsia\n, a Malaysia-based recommerce platform, has raised series A funding in a round led by Gobi Partners. The amount is undisclosed.\n\n\nThe company runs a one-stop platform for customers to trade in or purchase secondhand electronic devices. It plans to use the funds to expand across \u201cvarious touchpoints\u201d and bolster its penetration in its newer markets.\n\n\nAlong with its native Malaysia, it also operates in Singapore, Thailand, the Philippines, and Indonesia.\n\n\n\u201cWe have recently partnered with a number of major telcos around the region to assist in running their buyback and trade-in programs,\u201d said \nJulius Lim\n, CompAsia\u2019s founder and CEO, in a statement.\n\n\nIn addition, the company will be \u201crolling out our device financing and device care programs across multiple major retailers.\u201d\n\n\nAside from its online platform, CompAsia recently launched a flagship store at the Sunway Pyramid shopping mall in Petaling Jaya. The startup plans to open more branches across Klang Valley by the end of the year.\n\n\nFounded in 2016, CompAsia said it has sourced and transacted over 2.1 million secondhand mobile devices from 2019 to 2022.\n\n\nSee also: \nNiche recommerce takes the fight to Carousell in SEA"}
{"title": "US, China power up rivalry in EVs as trade war escalates", "body": "Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHello there!\n\n\nAt home, I\u2019m known for my love of weird movies.\n\n\nMy particular niche is \u201880s cult films like \nRepo Man\n, \nThe Forbidden Zone\n, and \nNear Dark\n.\n\n\nWhy do I like them so much? Because knowing the movie isn\u2019t supposed to make much sense allows me to turn off my brain, sit back, and enjoy the on-screen weirdness without \u2013 and this is the important part \u2013 having to write about it. It\u2019s pretty much the opposite of my work.\n\n\nThis month, I tried to make sense of a lot of things as part of my job. I spent a couple days writing about why the US ban on high-end semiconductors to China was going to \ncause World War III\n.\n\n\nMy colleague Shadine is also writing about the US-China tensions in this week\u2019s Big Story, but thankfully she\u2019ll be writing about competition involving electric vehicles instead of war.\n\n\nBut for our second Big Story this week, I jump right back into chaos \u2013 I wrote about how generative AI is transforming call centers. The news isn\u2019t bad, but there are certainly a few bits there that people won\u2019t be happy about.\n\n\nFor one last bit of drama, I\u2019ll also be taking you through the drama at the Hodlnaut bankruptcy in Token Issue. It looks like the crypto platform finally found a white knight to ride to their rescue.\n\n\nSpoiler alert: The \u201cknight\u201d is actually the founders of Three Arrows Capital (3AC), who are still on the wanted list in Singapore \u2013 Hodlnaut\u2019s home market.\n\n\nAfter the month I had, it\u2019s definitely movie time.\n\n\n\u2014 \nScott\n\n\n\n\nTHE BIG STORIES\n\n\n1\ufe0f\u20e3\nMapping the US-China rivalry in global EV race\n\n\n\n\nImage credit: Made by Tech in Asia using Midjourney\n\n\n\n\nBYD recently overtook Tesla to become the top-selling electric vehicle firm, and China has been growing its dominance over the US in the EV race.\n\n\n2\ufe0f\u20e3\nThis AI firm\u2019s bots can speak Singlish, use WhatsApp to collect loan repayments\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nWiz.ai set out to make bots that could talk to people in their own accents. The resulting software has the potential to change the call center industry.\n\n\n\n\nTOKEN ISSUE\n\n\nWho\u2019s going to invest in a platform run by Hodlnaut and 3AC?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nLast week, \nthe end of Hodlnaut\n seemed imminent, but it didn\u2019t happen.\n\n\nTo refresh your memory, Hodlnaut is the Singapore-based crypto platform that got caught with its hands in the \nAnchor Protocol cookie jar\n. The company \nlied\n about its losses, which became clear when it \nfiled for creditor protection\n.\n\n\nHodlnaut has been under interim judicial management (IJM) since the end of August 2022.\n\n\nThe case has been contentious, with claims of \nimpropriety\n leveled against \nboth sides\n. But when a judge scheduled a hearing for August 7 to wind down the company, the end seemed in sight: Hodlnaut would be liquidated.\n\n\nBut just last week, a white knight came charging in and made an offer to Hodlnaut directors \nSimon Lee\n and \nZhu Juntao\n. The digital asset exchange would rescue Hodlnaut by \nbuying a 75% stake\n.\n\n\nBUZZ!\n\n\nSorry, that\u2019s not allowed when a company is under IJM.\n\n\nThe IJM is the only one in charge, not Lee and Zhu. The managers handling the Hodlnaut case, \nAngela Ee\n and \nAaron Lee\n, weren\u2019t happy with the attempt to strike a deal behind their backs.\n\n\nWorse, the judge wasn\u2019t happy. Justice Aedit Abdullah said he did not like behind-the-scenes \u201cmanoeuvring\u201d and warned that as court officers, the IJMs should not be ignored, according to a recap of the hearing issued by Hodlnaut.\n\n\nBut despite the founders\u2019 blunder, Ee and Lee are \nreviewing\n Lee and Zhu\u2019s dealings with Opnx, according to an announcement on August 14. The two are supposed to report back to the judge at the next hearing, but no date has been set.\n\n\nMaybe you\u2019re wondering, who\u2019s behind Opnx, Hodlnaut\u2019s white knight? Things get weird when you lift the veil and find Kyle Davies and Su Zhu, the founders of an even bigger Singaporean crypto disaster: \nThree Arrows Capital\n (3AC).\n\n\nDavies and Zhu are still \nwanted\n in the US and in Singapore for their involvement in 3AC. Both have moved to Dubai, where they \nstarted their new firm\n called \u2013 you guessed it \u2013 Opnx.\n\n\nBut some things never change. In May, \nDubai regulators\n formerly reprimanded Davies and Zhu for operating an unregulated exchange.\n\n\nSo the question for Hodlnaut\u2019s IJMs and Justice Abdullah is: Should they let a couple of crypto bros, already under investigation for billions in losses, bail out another crypto firm that has admitted to lying about how it handled assets?\n\n\nThe answer may seem obvious, but there are other complications, such as the an ongoing \nlegal fight\n between Hodlnaut and Samtrade Custodian Limited.\n\n\nSamtrade, which is also being liquidated, had over US$127 million in stablecoins in Hodlnaut when it filed for creditor protection. But Hodlnaut believed those funds should be included in its own assets and used to pay its creditors.\n\n\nIf Justice Abdullah rejects Opnx\u2019s offer to rescue Hodlnaut and Samtrade wins the right to those stablecoins, there will be virtually nothing left of Hodlnaut to liquidate. But if the judge allows it, he could be approving the creation of a platform run by some of the most infamous names in crypto.\n\n\n\u2014 \nScott\n\n\n\n\nFYI\n\n\n1\ufe0f\u20e3 \nRejection, not dejection: learning from failed VC pitches\n:\n Founders needn\u2019t despair when their pitches get turned down by VCs. Take each meeting as a learning opportunity instead.\n\n\n2\ufe0f\u20e3\nThe good, the bad, and the ugly of Malaysia\u2019s govtech push\n:\n The country\u2019s latest tech drive may sound enticing, but startups should only go in with eyes wide open.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n3\ufe0f\u20e3\nThis AI startup said no to VCs after \u2018perplexing\u2019 experiences with them\n:\n Known as a \u201cSwiss Army knife\u201d for hate speech and other problematic content, Singapore-based Tisane Labs bootstrapped its way to profitability.\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nAlso check out Tech in Asia\u2019s coverage of the emerging tech scene \nhere\n\n\n1\ufe0f\u20e3 \nLayoffs are not noice\n:\n Indonesian audio-streaming platform Noice has laid off some of its staff amid a \u201cstrategic organizational restructuring.\u201d The company has offered severance packages and career transition assistance for retrenched employees.\n\n\n2\ufe0f\u20e3\nTencent doubles down on AI\n:\n The Chinese tech titan\u2019s future focus is AI, company president Martin Lau said during its latest earnings call. He sees AI\u2019s potential going beyond chatbots similar to OpenAI\u2019s ChatGPT.\n\n\n3\ufe0f\u20e3\nInvesting in good health\n:\n HealthXCapital, an early-stage investment platform based in Singapore, has merged with Jungle Ventures. The deal will improve Jungle Ventures\u2019 capacity to invest in Asia\u2019s healthcare sector and give it access to HXC\u2019s network and resources.\n\n\n4\ufe0f\u20e3\nBeep beep, funding complete\n:\n IoT firm Beep has raised an undisclosed seed round led by GGV Capital and investor Wing Vasiksiri. The Singapore-based startup is also launching VoltNet, an electric vehicle roaming network.\n\n\n5\ufe0f\u20e3\nEther\u2019s ETF Path\n:\n The US Securities and Exchange Commission is poised to approve the first ETFs based on Ether futures. The move could allow various firms including Volatility Shares and Bitwise to offer such products.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere.\n\n\nSee you next week!"}
{"title": "The good, the bad, and the ugly of Malaysia\u2019s govtech push", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by Tech in Asia journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles\n.\n\n\nMalaysia wants to go big on govtech. Don\u2019t take my word for it. Even Catcha Digital founder Patrick Grove wants in.\n\n\n\n\nPutrajaya, the administrative capital of Malaysia, is embarking on a massive digitalization project of public services. / Photo credit: Wikicommons\n\n\n\n\nBut before we dive into this, we need a definition: Govtech refers to public sector modernization. That\u2019s still vague, but in essence, it refers to the digitalization of government services to help them better serve the public.\n\n\nThe government under Prime Minister Anwar Ibrahim has given some emphasis on this aspect of the tech space in the past few months. In May, Anwar \nsaid\n that his administration will establish a dedicated center to focus on, among others, govtech.\n\n\nOne component of this push is the consolidation of information technology systems.\n\n\nEconomic Affairs Minister Rafizi Ramli \nsaid\n that there are 297 government databases existing independently, and maintaining all of them costs 7 billion ringgit (US$1.5 billion) a year.\n\n\nHe\u2019s been meeting with investors and tech players to discuss the possibility of creating a \u201csingle window.\u201d\n\n\nTo put things in perspective, Malaysia doesn\u2019t have its own version of Gov.uk, the UK\u2019s centralized hub for all government services, and that\u2019s among the things the Malaysian government is working on.\n\n\n\n\nPatrick Grove, co-founder of Catcha Group / Photo credit: Patrick Grove\n\n\n\n\nIndustry players have certainly taken the bait: Catcha Digital founder Grove \nannounced\n in June that he\u2019s setting up a business arm called i-Gov, where he\u2019ll be looking to acquire current govtech concessionaires to \u201cenhance their capabilities and services.\u201d\n\n\nBut in Malaysia, like elsewhere, the govtech space isn\u2019t straightforward. Here are three important things to consider:\n\n\nThe ugly\n\n\nGovernment is political, so any kind of govtech venture will depend on political stability. Malaysia has seen some turmoil, with three regime changes between 2018 to 2022.\n\n\nInstability presumably ended when the country had its general election last year. Just last week, it held state elections, too, and the results were as expected, with the dominant coalition \nretaining\n key states.\n\n\nThese point to some semblance of stability with Anwar\u2019s government. That said, stability doesn\u2019t guarantee that a tech project can smoothly proceed, especially one that has a long timeline.\n\n\nI\u2019ll take a recent example: the cancellation of the National Integrated Immigration System (NIIS) project. The NIIS is a crucial undertaking because it seeks to consolidate the fragmented migration services into one single platform. Migration in Malaysia not only means tourists, but also foreign workers and national security.\n\n\nBut the NIIS has been dogged with controversy since it was mooted in 2018, and it has been \ncanceled twice\n. During its first iteration, ICT service provider Prestariang (now known as AwanBiru Technology) was awarded the tender via direct negotiations.\n\n\nBut after Mahathir Mohamad won the 2018 elections, Prestariang lost the contract after a review by the new government. The Bursa Malaysia-listed company has been seeking damages of up to 722 million ringgit (US$156 million) \u2013 and the case is \nongoing\n.\n\n\nMahathir\u2019s government will call for an open tender and Iris, another Bursa-listed IT services provider, won the contract. But Iris\u2019 abilities \ncame under scrutiny\n and just last Monday, it also lost the contract. Why? This time, Anwar\u2019s government canceled the contract. Iris is mulling legal action.\n\n\nIt\u2019s worth noting that a number of startups and deeptech firms were engaged by these contractors to help come up with solutions for specific components of the NIIS. So when the main contractor goes, so do its subcontractors.\n\n\nThe bad\n\n\nWhat follows politics is policies. Between 2020 and 2021, Anwar\u2019s predecessors made two major policy reversals that didn\u2019t end well.\n\n\nFirst, Malaysia \nmissed out\n on a massive internet undersea cable project led by Facebook because of a flip-flop over cable repair and maintenance.\n\n\nSecond, industry players were \nup in arms\n because the government decided to regulate data centers and cloud services.\n\n\nI have \npreviously covered\n how out of touch Malaysian tech agencies can be, and this remains true today.\n\n\nSome of the issues plaguing the govtech sector come from state investments in startups. Founders will have to go through hoops and hurdles \u2013 bouncing from one ministry or agency to another \u2013 to not only secure funding but also deal with terms and conditions that may prohibit them from executing their projects.\n\n\nOne common clause, a founder tells me, is that a startup can only hire a skilled worker within a certain salary bracket, which is usually priced below what the market is offering.\n\n\nThis is common especially for R&D grants in tech, they say, and this puts startups in a bind, as they need talent but can\u2019t pay for it due to restrictive clauses in an investment\u2019s term sheets.\n\n\nThe good\n\n\nThere are silver linings, of course. Minister Rafizi has gone big on open data. The Department of Statistics Malaysia (DOSM), which falls under his purview, has been actively providing more granular information.\n\n\nHis ministry has also \nlaunched an app\n, made in partnership with a local IT firm, to check and compare grocery prices based on DOSM data.\n\n\n\n\nAmazon Web Services will be investing US$5.4 billion in Malaysia. / Photo credit: Amazon\n\n\n\n\nA number of data center players, such as Amazon, have \nreiterated\n their commitment to setting up shop in Malaysia. Tech giants such as Tesla have also been showered with \nextraordinary perks\n (a good and bad thing, but this is for another day).\n\n\nThere are some hints toward policy continuity, too. For example, Anwar\u2019s government is \ncommitted\n to turning Kuala Lumpur into a tech hub, which is an idea raised by his predecessor, Najib Razak.\n\n\nThis marks a shift from when new prime ministers would overhaul such policies and turn them into vanity projects of sorts. Ironically, Najib did that when picking Kuala Lumpur to be the tech hub, as his mentor-turned-nemesis Mahathir \nfavored Cyberjaya\n.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.62 ringgit."}
{"title": "How tech destroyed Astro\u2019s dominance in Malaysian pay TV", "body": "\n\nImage credit: Timmy Loen\n\n\n\n\nAstro is Malaysia\u2019s \u201clargest content creator.\u201d That\u2019s according to the group\u2019s CEO, Euan Smith, in the firm\u2019s July 28 bourse filing. What followed wasn\u2019t the usual chest-thumping of higher sales or record-breaking profits but the announcement of a retrenchment.\n\n\nCompetition in an \u201cincreasingly borderless and digital world\u201d is \u201crelentless,\u201d Smith said at the time, \u201cespecially in a challenging economic landscape.\u201d He added that the \nlayoffs were purely voluntary\n.\n\n\nAstro didn\u2019t respond to requests from \nTech in Asia\n on the specifics of the exercise.\n\n\nDid the move come as a surprise? Kuala Lumpur-based media analysts we spoke to say no. The media giant provides a wide range of content across different media and languages, including a 24/7 news channel. But competition has long been the \u201cantithesis of Astro\u2019s business model,\u201d says one analyst \u2013 the company had a 20-year monopoly deal on satellite pay TV in Malaysia.\n\n\nWhen its license to operate as a monopoly ended in 2017, Astro\u2019s revenue stood at 5.6 billion ringgit (US$1.2 billion). By 2023, this had declined to 3.8 billion ringgit (US$831 million).\n\n\n\n\nCutting the cord\n\n\nWhile Netflix and other streaming platforms can be blamed for the struggles of companies like Astro, the analyst says that consumers themselves began shifting their appetite for pay TV in 2016.\n\n\nViewers became \u201ccord-cutters,\u201d the previous analyst says, referring to the term used for consumers who canceled multichannel pay TV services for content streamed on the internet, which is either significantly cheaper or free.\n\n\nNetflix exploded in 2016 when the company declared that it would reach every market by the end of that year. When it made that announcement on January 11, Astro\u2019s shares fell 7.2%.\n\n\nThis forced traditional media players, including the Malaysian company, to adapt. Astro\u2019s management in June this year \ntold\n Malaysian equity analysts that it had pivoted to video-on-demand services with the launch of Sooka. The streaming platform targets younger viewers and cord-nevers, referring to a group of viewers that have never used commercial cable or satellite TV.\n\n\nAstro claims that two-thirds of new Sooka customers are under the age of 40.\n\n\nThe company also made two significant changes to its business model. First, it decided to be a so-called super aggregator, offering Netflix, Disney+, and other services to its viewers. It hoped that by hiking the overall price of its bundled services, it could stay afloat.\n\n\nThe logic was that while viewers could access these streaming platforms easily \u2013 and even if they\u2019d be paying more to Astro \u2013 the cost to subscribe to all of these services would be higher than Astro\u2019s bundle price.\n\n\nSecond, the firm is offering broadband packages tied with its TV packs. To execute this, Astro has partnered with another dominant player: telecommunications firm Telekom Malaysia. This gives Astro access to more than 6 million homes nationwide, according to estimates from analysts we spoke to.\n\n\nThe media giant also collaborated with internet provider Celcom Timur to supply high-speed broadband internet to homes in Sabah.\n\n\nEconomic benefits aside, the partnership helps connect underserved areas, says one of the analysts.\n\n\nBut it may not translate to substantial growth, he cautions. \u201cThis is because margins are expected to be low due to competition.\u201d\n\n\nAstro\u2019s latest quarterly filings (Q1 2024) show a drop in subscription and advertising revenue, dragging down proceeds from its TV segment \u2013 which accounts for 91% of total revenue \u2013 by 6%. Gains from its radio service, however, remained strong.\n\n\nMeanwhile, net profit dropped year on year to 15.9 million ringgit (US$3.5 million) from 100 million ringgit (US$21.8 million) on the back of higher content, broadband, and staff-related expenses as well as unfavorable foreign exchange from the lease of its transponders.\n\n\nAstro added that the drop in quarterly revenue to 891.1 million ringgit (US$194.8 million) \u2013 from 962.1 million ringgit (US$210.3 million) \u2013 was due to a decrease in subscription revenue, advertising revenue, and merchandise sales.\n\n\nThe analysts we spoke to aren\u2019t the only ones skeptical about Astro\u2019s media pivot.\n\n\nFor example, in his \nJune 20 note\n, RHB Research\u2019s Jeffrey Tan acknowledged that the media company has tried to push back against disruption by joining the streaming bandwagon. Tan\u2019s argument is backed by the fact that Astro\u2019s average revenue per user has been hovering between the US$22.3 and US$21.8 band.\n\n\nBut he also flagged that \u201cstructural issues\u201d such as cord-cutting and \u201cheightened inflationary pressures\u201d continue to make it difficult for the group to stem the subscription revenue decline. Astro, according to its annual reports, has also been seeing a steady decline in share of TV viewership. In 2017, it commanded 77% of the national pie. Today, it\u2019s down to 72%.\n\n\nTroubles, ahoy\n\n\nNo discussion of Astro\u2019s woes would be complete without talk of piracy and illegal streaming.\n\n\nTo understand this, one needs to dial back the clock to 1996 when billionaire T. Ananda Krishnan founded the company \u2013 which he still controls via his investment vehicle Usaha Tegas. With his wealth and influence, he was able to obtain and maintain a monopoly license on satellite TV services for two decades.\n\n\nThe tycoon was able to build Astro because he already had other telecommunications companies up and running, namely telco Maxis and satellite services firm Measat.\n\n\nNo other wealthy businessperson was able to match Krishnan in that respect, giving him an unobstructed runway. Certain Malaysian economists even \ncalled\n Astro a natural monopoly simply because its dominance in the local market was due to an extremely high barrier to entry.\n\n\nBut there was one thing that the firm\u2019s 20-year monopoly contract couldn\u2019t control: the internet, which allowed users to bypass paying for Astro\u2019s packages by downloading programs for free.\n\n\nMalaysia has laws to combat piracy, but during the early days of the internet, that wasn\u2019t enforced, an industry veteran who has worked with government-owned tech agencies tells \nTech in Asia\n.\n\n\nThe reason for this was Malaysia\u2019s policy of internet freedom, which was known as the \nMSC Malaysia Bill of Guarantees\n. Among its promises: \u201cno censorship of the internet.\u201d\n\n\nThe policy was rolled out under then prime minister Mahathir Mohamad to attract tech multinationals to set up shop in Malaysia, particularly in Cyberjaya, which was envisioned as the country\u2019s Silicon Valley.\n\n\nThe bill gave Malaysians unfettered access to peer-to-peer file-sharing applications such as Napster and Limewire, and later on, BitTorrent.\n\n\nWhile these platforms provided access to media illegally, enforcers, particularly the Malaysian Communications and Multimedia Commission (MCMC), didn\u2019t crack down on households downloading music or TV shows from these applications, the veteran says.\n\n\nThe MSC bill of guarantees, he notes, isn\u2019t law. This allows the government of the day to \u201cadjust\u201d the policy as it deems fit.\n\n\nAccording to the industry veteran, MCMC today seems to have more bite \u2013 news portals and porn sites have been blocked in recent years. \u201cBut these, too, can be circumvented through the use of VPNs (virtual private networks).\u201d\n\n\nOn its part, Astro has been \nworking\n with enforcers to track down individuals selling TV boxes preloaded with unauthorized content.\n\n\nWhile there have been some headlines regarding this recently, such as the case of two individuals being \nfined\n a total of 40,000 ringgit (US$8,717), the tech insider we spoke to believes it\u2019ll be difficult to have a major clampdown. It\u2019ll be \u201ca lot of work,\u201d as it involves cooperation from different stakeholders including consumers, the person believes.\n\n\nGoing private?\n\n\nEver since Astro lost its monopoly in 2017, media and analysts have raised the specter of possible privatization.\n\n\nRHB\u2019s Tan, in his \nrecent note\n, opined that privatization from Krishnan\u2019s Usaha Tegas could be a potential \u201ccatalyst\u201d for the company. On March 10, business publication \nThe Edge\n \nreported\n that Astro could be delisted, leading the stock to rally by 20%.\n\n\n\n\nBillionaire T. Ananda Krishnan controls a number of telecommunications companies including Astro. / Photo credit: Wikimedia Commons\n\n\n\n\nHowever, the media giant poured cold water on such speculation. Astro \nsaid\n it didn\u2019t receive any proposals for privatization.\n\n\nWhy these murmurs carry weight is due to two developments. First, Krishnan controls both Astro and Maxis. A merger could complement the two entities.\n\n\nFor example, Maxis\u2019 mobile and home fiber plans could be bundled together with Astro\u2019s TV offerings, which could then be streamed on mobile devices. But Astro has already set off on its own with regard to its mobile and broadband packages.\n\n\nSecond, Krishnan has been known to delist and relist his companies. Some of the firms he privatized include Measat and power and gaming firm Tanjong PLC. Both entities have yet to be relisted.\n\n\nAstro, on the other hand, went private in 2010 but relisted two years later without its international business unit. It relisted at a price of 3 ringgit. Today, it\u2019s worth less than 1 ringgit.\n\n\nKrishnan\u2019s investment vehicle, Usaha Tegas, didn\u2019t respond to \nTech in Asia\n\u2019s request for comment."}
{"title": "Antler Malaysia appoints serial entrepreneur as associate partner", "body": "\n\nAntler Malaysia country head and associate partner Frank Kang / Photo credit: Antler\n\n\n\n\nVC firm \nAntler\n has appointed \nFrank Kang\n as country head and associate partner for Malaysia. It looks to back over 30 startups across the country in the next three years.\n\n\nKang will be in charge of operations and investment strategy in Malaysia, according to a statement.\n\n\nBefore the appointment, Kang co-founded People2, a social networking service backed by SoftBank. He then went on to establish Twitter directory Koreantweeters and beauty ecommerce platform \nAlthea\n.\n\n\nKang also served as a venture partner at Vynn Capital as well as COO and founding partner of \nLivingSocial Malaysia\n.\n\n\nAntler has set up offices across 26 cities globally. Most recently, it announced that it launched a \nUS$60 million fund\n for the Middle East, North Africa, and Pakistan (MENAP).\n\n\nThe company also appointed \nDr. Jonathan Doerr\n and \nRomain Assun\u00e7\u00e3o\n as MENAP partners. Its Riyadh cohort, which is launching in September, is looking to support over 60 founders.\n\n\nMeanwhile, Antler Japan recently \nclosed its first deal\n, backing local freelancing platform Sollective.\n\n\nSee also: \nExclusive: Antler, Iterative back Indonesian mental health app for Muslims"}
{"title": "What\u2019s going on with Malaysia and Elon Musk\u2019s Starlink?", "body": "Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a premium subscription\n.\n\n\nHello reader,\n\n\nI\u2019m going to be honest with you \u2013 I\u2019m quite unhappy about the fact that Twitter, the platform I use to complain about my problems and look at pictures of my favorite K-pop idols, has been rebranded to \u201cX.\u201d\n\n\nI miss the little blue bird and what it was before all this happened, and I\u2019ve got some not-very-charitable things to say about Elon Musk, the man behind this move, as I\u2019m sure many other people do.\n\n\nBut this newsletter isn\u2019t about me lamenting the social media platform formerly known as Twitter. It\u2019s about another Musk-owned company \u2013 namely Starlink, the satellite-internet unit of SpaceX \u2013 and what it\u2019s doing in Malaysia.\n\n\nMy segues are getting better, aren\u2019t they? Anyway, let\u2019s get into this.\n\n\nToday we look at:\n\n\n\n\nStarlink in Malaysia\n\n\nHow GrabRentals is doing \n\n\nOther newsy highlights such as our takeaways from Temu\u2019s lawsuit against Shein and how much Singapore\u2019s digibanks spent in their first few months of operations \n\n\n\n\n\n\nPremium summary\n\n\nTwinkle twinkle, not-so-little Starlink\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nWhen a company applies for a license in Malaysia, the country\u2019s laws require that the maximum ownership of a foreign entity in that licensee is 49% \u2013 unless granted an exemption. Starlink received this exemption from the communications and digital minister, one of only four companies to have gotten this privilege since 2005. Let\u2019s find out more:\n\n\n\n\n\n\nE is for exemptions:\n The decision to exempt Starlink from the foreign ownership requirement was made after assessing the \u201cvalue and benefits\u201d it provided to the country, the Malaysian Communications and Multimedia Commission told \nTech in Asia\n. The agency added that this decision was made with other government ministries that had their own requirements. \n\n\n\n\nConnecting Malaysia:\n Following the development, Starlink will begin providing satellite-internet services to educational institutions located in Malaysia\u2019s rural areas. Communications and Digital Minister Fahmi Fadzil said that the approval of Starlink\u2019s license applications is part of the government\u2019s efforts to close gaps in internet access around the country. \n\n\n\n\nStarlink for everyone:\n Beyond its collaboration with the Malaysian government, Starlink is also offering its services to the country\u2019s consumers. Its broadband plan costs around US$48 a month, though users will also need to purchase a device that costs at least US$500.\n\n\n\n\nRead more: \nMalaysia grants Musk\u2019s Starlink rare ownership exemption to operate in country\n\n\n\n\nNews spotlight\n\n\nLet\u2019s grab a rental and go\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nSuper app Grab has lots of business units so today let\u2019s shine the spotlight on its private car rental arm GrabRentals, which appears to have done pretty well in \nits latest financial year\n.\n\n\n\n\n\n\nBringing in the cash:\n GrabRentals recorded US$89.8 million in revenue for FYE 2022, growing 17% year on year. It\u2019s also an all-time high for the firm.\n\n\n\n\nGrowing and going:\n It also posted US$15 million in earnings before interest and taxes for the year, an increase of 73% from FYE 2021. \n\n\n\n\nWelcome to the family:\n GrabRentals recently announced the acquisition of Trans-Cab, Singapore\u2019s third-largest taxi operator, with the deal reportedly worth US$75 million. \n\n\n\n\nSee also: \nDoes combining Grab with asset-heavy Trans-cab make sense?\n\n\n\n\nTech in Asia\u2019s Founders Meetup: India\n\n\nWe\u2019re headed to Bangalore next! Seize your chance to be part of our exclusive founders-only networking event\n\n\n\n\nWith over 13,000 startups founded last year, India is abound with immense potential and growth opportunities. However, it is not without its challenges in fundraising and talent acquisition.\n\n\nIf you\u2019re seeking solutions to your startup\u2019s most pressing issues or if you can help others overcome their own roadblocks, our upcoming event is just for you!\n\n\nMark your calendar for August 25 and join us in the heart of Bangalore at Byg Brewski to connect, learn, and exchange ideas with fellow founders from the \nTech in Asia\n community. Why navigate the startup journey alone when you can collaborate with others and break through barriers together?\n\n\nTickets are now on sale at US$12.50 each, inclusive of light bites and one complimentary drink. Hurry, tickets are limited \u2013 \nsecure yours before they\u2019re sold out\n!\n\n\nSpecial thanks to our official event partners \u2013 AWS, CleverTap, Cooley, Sinarmas Land, Singapore Global Network (SGN), Quest Ventures, and Purple Quarter \u2013 and our community partners \u2013 WeWork and Gobi Partners \u2013 for making this meetup possible.\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nAnother one does a layoff\n\nIndonesia-based Ayoconnect \nhas laid off\n 10% of its local workforce after \u201ccarefully aligning objectives for 2023\u201d to transition to \u201ca leaner organizational structure.\u201d According to its website, the fintech firm has over 200 employees across four countries.\n\n\n2\ufe0f\u20e3 \nEndow me with money\n\nSingapore-based wealthtech firm Endowus \nrecorded a 2.5x year-on-year increase\n in its 2022 revenue at US$6.1 million . However, it also reported higher losses, from US$13 million in 2021 to US$20 million in 2022.\n\n\n3\ufe0f\u20e3 \nTeaming up\n\nIndonesian digital bank Superbank \nhas partnered\n with local peer-to-peer lending firm Amartha to provide working capital loans to more than 1 million women microentrepreneurs on the latter\u2019s platform. So far, Amartha has disbursed over US$800 million in loans to 1.6 million businesses, with most of these being women-led.\n\n\n4\ufe0f\u20e3 \nBig spenders\n\nSuperbank isn\u2019t the only digibank we have news for today. Singapore\u2019s Trust Bank, GXS Bank, and MariBank \nhave all spent big\n in their first few months of operations.\n\n\nTrust Bank logged some US$92.9 million in operating expenses last year, while the figure for GXS Bank was US$101.4 million. MariBank, which launched later than the previous two banks, incurred US$31.3 million in expenses for 2022.\n\n\n5\ufe0f\u20e3 \nTemu tells all\n\nThe Chinese marketplace recently filed a lawsuit that accused Shein, one of its biggest rivals, of engaging in anti-competitive practices. Temu\u2019s lawsuit revealed several details about Shein\u2019s network and the ultra-fast fashion industry as a whole \u2013 here are \nsome of our takeaways\n.\n\n\n6\ufe0f\u20e3 \nHello, license\n\nHashKey Exchange, a Hong Kong-based crypto firm, has obtained licenses that enable it to offer retail and professional services in the city, making it \nthe first licensed exchange\n to do so. The company recently partnered with Standard Chartered to provide deposits and withdrawals in fiat currency."}
{"title": "Capital A partners with UnionDigital Bank for SEA expansion", "body": "\n\nPhoto credit: AirAsia Super App\n\n\n\n\nMalaysia-based \nCapital A\n has announced a partnership with \nUnionDigital Bank\n, the digital bank unit of Philippines-based \nUnion Bank\n.\n\n\nThe aim is to push the expansion of \nBigPay\n, Capital A\u2019s fintech arm, in Southeast Asian markets including Malaysia, Singapore, Thailand, Indonesia, and the Philippines. This effort also involves Capital A\u2019s two other subsidiaries: airline business \nAirAsia\n and the \nAirAsia Super App\n.\n\n\nAs part of the deal, UnionDigital Bank will partner with BigPay to provide embedded finance within the super app\u2019s travel category, which is the main booking channel for AirAsia flights in the Philippines.\n\n\nThe digibank will also handle flexible payment options for Capital A\u2019s customers, including making \u201cfly now, pay later\u201d available on the super app.\n\n\nSee also: \nCapital A\u2019s financial health in 3 charts\n\n\nThe deal comes on the heels of the appointment of \nZubin Rada Krishnan\n as acting group CEO of BigPay.\n\n\nIn April, the firm said it has \n1.3 million transacting and carded users\n and recently achieved US$224 million in gross transaction value on its international remittance service.\n\n\nTony Fernandes\n, the CEO of Capital A, \nreportedly\n confirmed that listing AirAsia Philippines on the local stock exchange is not currently part of his plans, potentially marking another delay in the fundraising plan that was initially conceived in 2015."}
{"title": "Jirnexu founders launch crypto fund manager Halogen Capital", "body": "\n\nThe Halogen team / Photo credit: Halogen Capital\n\n\n\n\nHann Liew\n and \nLucas Ooi\n, founders of Malaysian fintech firm Jirnexu, have announced their new venture: \nHalogen Capital\n, a fund manager focused on digital assets.\n\n\nAs shared on Liew\u2019s \nLinkedIn post\n, the new company aims to make crypto investing mainstream in Malaysia. Crypto investors in the country have limited choices: They can either opt for unregulated offshore exchanges or go with onshore platforms focused on short-term trading instead of longer-term investing.\n\n\nHalogen Capital\u2019s goal is to \u201csafely\u201d open up crypto investing to individual and institutional investors.\n\n\nLiew serves as the company\u2019s CEO while Ooi acts as chief business officer.\n\n\nHalogen Capital holds a full license from the Securities Commission of Malaysia, allowing it to manage cryptocurrencies, NFTs, and tokenized assets, among others. It offers a ringgit-denominated fixed income wholesale fund.\n\n\nThe company also has a Shariah-compliant fund for Bitcoin and plans to roll out a similar fund for Ethereum.\n\n\nLiew wrote in the post that Halogen Capital wants to provide \u201caccess and professional management through familiar traditional structures such as mutual funds, managed portfolios, and hopefully ETFs soon.\u201d\n\n\nSee also:\u00a0\nPleasant surprise in Malaysia\u2019s digibank race\n\n\nThe news comes just weeks after Liew and Ooi \nleft their leadership posts\n at Jirnexu, a startup that helps banks and insurance companies streamline their operations. They both remain shareholders and board members of Jirnexu."}
{"title": "Malaysia grants Musk\u2019s Starlink rare ownership exemption to operate in country", "body": "\n\nTesla and SpaceX founder Elon Musk and Malaysian Prime Minister Anwar Ibrahim (right) in talks during a July 14 virtual meeting / Photo credit: Anwar Ibrahim\u2019s Twitter\n\n\n\n\nStarlink, the satellite-internet unit of Elon Musk\u2019s SpaceX, has received a rare ownership exemption to operate in Malaysia.\n\n\nTech in Asia\n understands that only four firms, including Starlink, have been accorded that privilege since 2005.\n\n\nThe satellite-internet company was awarded two licenses: the network facilities provider (NFP) individual license and the network service provider (NSP) individual license. Both run from July 17 this year to July 16, 2033.\n\n\nNFPs refer to owners or providers of network infrastructure such as towers and satellite stations. NSPs, on the other hand, are firms that enable connectivity across different networks.\n\n\nMalaysian law dictates that foreign ownership in a licensee can only be up to 49% unless exempted by the minister in charge, in this case Communications and Digital Minister Fahmi Fadzil.\n\n\nThe Malaysian Communications and Multimedia Commission (MCMC), however, told \nTech in Asia\n that SpaceX retains full ownership of the company that was granted these licenses.\n\n\nStarlink Internet Services Malaysia is wholly owned by Starlink Holdings Netherland, according to the Malaysian companies\u2019 database.\n\n\nMCMC said that only three companies, aside from Starlink, had been given such an exemption since 2005. The remaining firms are: NTT MSC (2005 and 2010), AT&T Worldwide Network Services (2012), and BT Systems (2014).\n\n\nThe industry regulator told \nTech in Asia\n that the decision to grant Starlink the exemption was made after assessing the \u201cvalue and benefits\u201d provided by the satellite-internet firm.\n\n\nMCMC added that this case is similar to the other licensees that were granted exemptions, which are \u201ccompanies with a global footprint\u201d that had full foreign ownership.\n\n\nSome of the policy considerations for the exemption include a review of Starlink\u2019s Malaysia Digital status, Malaysia\u2019s commitments to any free-trade deal with the applicant\u2019s country of origin, and the direct and indirect benefits that the licensee can bring to Malaysia. The entire process also involves other relevant agencies and ministries, MCMC said.\n\n\nMalaysia Digital\n is a series of perks for multinational or local tech companies, ranging from tax incentives to grants.\n\n\n\n\nMalaysians have the option of choosing one of two Starlink kits: standard or high performance. / Photo credit: Starlink\n\n\n\n\nMinister Fahmi said in a \nFacebook post\n dated July 20 that SpaceX will start providing internet access to tertiary education institutions and schools in rural areas.\n\n\nHe added that the approval of Starlink\u2019s license applications was part of the Malaysian government\u2019s efforts to connect people nationwide. According to the minister\u2019s \nestimates\n, 97% of populated areas currently have internet access, while the remainder is hindered by geographical challenges.\n\n\nIt\u2019s why his ministry is betting on Starlink and is purchasing 40 kits to close this gap.\n\n\nOn July 23, Fahmi \nannounced\n that the Mara Institute of Technology, a public university exclusively for the country\u2019s bumiputera demography, will be among the first recipients of Starlink\u2019s devices. He added that the university\u2019s campuses in Perak, Negri Sembilan, Sabah, and Sarawak had been earmarked to receive satellite-internet broadband.\n\n\nSee also: \nTesla enters Malaysia with Model Y SUV\n\n\nBut Starlink will not only be reserved for government initiatives as Musk\u2019s firm is also offering its services to the public. Yesterday, Starlink Malaysia \nsaid\n\u00a0its broadband plan costs 220 ringgit (around US$48) per month. This doesn\u2019t come with a binding contract, which means Starlink will allow users to cancel their subscriptions anytime, but they\u2019ll have to purchase hardware separately.\n\n\nThere are two kits to choose from: standard at 2,300 ringgit (US$504) and high performance at 11,613 ringgit (US$2,500). The former is recommended for home users while the latter for enterprises and power users.\n\n\nStarlink said its service provides download speeds of around 100 mbps. It added that users can try the service for 30 days and seek a full refund if they\u2019re unsatisfied by returning the hardware.\n\n\nThe company\u2019s offerings are available in a number of countries and has been expanding in Asia, such as in the Philippines and Japan.\n\n\n\n\nTesla\u2019s Model Y on display during the Malaysia launch on July 20 / Photo credit: Tesla Asia\u2019s Twitter\n\n\n\n\nThe firm\u2019s entry to Malaysia comes on the back of a virtual meeting between Musk and Prime Minister Anwar Ibrahim on July 14.\n\n\nAside from Starlink, Musk\u2019s Tesla also \nbegan operations\n in the country last week. The electric carmaker \nsaid\n that bookings for its Model Y were already available on its website since July 14. Prices range from 199,000 ringgit (US$43,519) to 288,000 ringgit (US$62,983), with delivery of the first Tesla unit to be shipped around early 2024.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.57 ringgit."}
{"title": "TikTok Shop signs deal with BNPL major Atome in Malaysia", "body": "\n\nPhoto credit: Shutterstock\n\n\n\n\nTikTok Shop\n has signed a deal with buy now, pay later firm Atome in Malaysia that will allow consumers to defer payment for their purchases over three or six months.\n\n\n\u201cBy integrating Atome as a payment option on TikTok Shop, we\u2019re excited to help drive ecommerce growth and support brands of all sizes,\u201d \nWilliam Yang\n, head of commercial at Atome said in statement.\u00a0\n\n\nAtome is operated by Singapore-based\u00a0Advance Intelligence Group, which\u00a0raised \nUS$80 million\n from Warburg Pincus and Northstar Group. Recently, Atome \nconfirmed\n its withdrawal from the Vietnamese market due to lackluster business.\n\n\nMeanwhile, TikTok Shop has been aggressively expanding in Southeast Asia. Despite being a new player, TikTok Shop is already one of the region\u2019s \ntop five ecommerce players\n in terms of market share, according to a recent report from venture builder Momentum Works.\n\n\n\n\n\n\nIn June, CEO \nShou Zi Chew\n said TikTok will invest billions in Southeast Asia in the coming years.\n\n\n\n\n\n\nSee also:\u00a0\nTikTok\u2019s Project S triggers alarm bells in Indonesia"}
{"title": "Battle for Malaysia\u2019s \u2018last mile\u2019: Local couriers struggle against foreign players", "body": "\n\nAnalysts say Indonesia-based J&T Express commands significant market share in the Malaysian courier space. / Photo credit: J&T Express\n\n\n\n\nTo say last year was nightmarish for Malaysian courier companies would be an understatement.\n\n\nHousehold names in the industry either folded or had to sell their loss-making last-mile businesses.\n\n\nSuch was the fate of two Bursa Malaysia-listed logistics players, Nationwide Express and CJ Century Logistics. Nationwide Express, founded in 1985, shut its business on November 16 last year, retrenching 1,100 employees. It would then be delisted and go into receivership.\n\n\nA year earlier, CJ Century Logistics had sold its loss-making courier arm for 7.5 million ringgit (US$1.6 million) after bleeding losses since 2018.\n\n\nBoth companies in their respective bourse filings attributed their troubles to stiff competition and higher startup costs. These developments come despite the surging demand for courier services in Malaysia \u2013 and the rest of the world \u2013 as Covid-19 lockdowns were put in place.\n\n\nAccording to data by industry regulator Malaysian Communications and Multimedia Commission (MCMC), parcels per capita jumped from 7.6 in 2019 to 23.5 in 2021.\n\n\nMalaysian courier companies who survived were left to slug it out with tech-enabled upstarts. Some veterans tell \nTech in Asia\n that the battlefield has become uneven, blaming their younger, foreign-owned counterparts for deploying \u201caggressive pricing strategies.\u201d They didn\u2019t name these foreign-owned couriers though.\n\n\nTwo Kuala Lumpur-based equity analysts who cover the sector tell us that frustration among some of the older firms was at a boiling point. Even Malaysian Communications and Digital Minister Fahmi Fadzil entered the fray, \ntelling reporters\n on July 4 that his ministry would study the base price and licensing problems in the courier industry. Fahmi\u2019s ministry oversees MCMC.\n\n\nPrice dumping for valuation purposes?\n\n\nTo get a feel of the tension brewing among courier companies in Malaysia, consider some of the key points Pos Malaysia CEO Charles Brewster flagged during his June 26 media luncheon in Kuala Lumpur. Bursa-listed Pos is the country\u2019s national courier.\n\n\n\n\nPos Malaysia CEO Charles Brewster / Photo credit: Pos Malaysia\n\n\n\n\nBrewster told the press that he was in discussions with regulators MCMC and the Malaysian Anti-Competition Commission (MyCC) regarding the problems posed by foreign players.\n\n\nWhile MCMC is the industry regulator, MyCC is the country\u2019s anti-competition body. But MyCC doesn\u2019t have powers across a few sectors including logistics. Reining in industry players falls on the shoulders of MCMC.\n\n\nBrewster said he highlighted to the two entities and government officials a few problems. Among them was the inability of consumers to choose their preferred service provider to deliver parcels especially when shopping on most ecommerce platforms. He also emphasized the saturated parcel delivery space in the country.\n\n\n\u201cYou\u2019re not allowed (to choose us) because they (ecommerce platforms) dictate who delivers it, which has legal ramifications as well,\u201d he said.\n\n\nBrewster is arguing that Malaysia is granting too many courier licenses. According to the Pos CEO, there are 120 licenses for parcel operators in Malaysia despite the country only having a population of 30 million people. In Indonesia, with a population of nearly 300 million, there are 30 licenses, and in Thailand there are 37 accredited couriers for 70 million people.\n\n\n\u201cMany of the parcel operators (in Malaysia) are foreign and they\u2019re not publicly listed,\u201d allowing these companies to \u201cprice dump\u201d to boost valuation, he told the press. \u201cThey\u2019re just looking to get the market share.\u201d\n\n\nPos declined to comment further on the matter when we reached out.\n\n\nThe national courier registered a net loss of 335.7 million ringgit (US$74 million) on the back of 2.2 billion ringgit (US$484 million) in revenue last year.\n\n\nBut Pos is not the only one with these types of grievances. \nTech in Asia\n understands that other local courier players also want some form of intervention.\n\n\nNot for the lack of trying\n\n\nTo be sure, the Malaysian government has heard the grouses of local industry players before.\n\n\nMCMC imposed a moratorium between September 15, 2020 and September 15, 2022 on new courier licenses.\n\n\nBut that did little to ease the situation, as foreign-owned courier companies could circumvent the block by acquiring local firms, two Malaysian logistics CEOs tell \nTech in Asia\n.\n\n\nMCMC then issued a public consultation paper in 2021. The agency asked courier companies for feedback for a new licensing framework for the industry.\n\n\nDubbed Pakej, the proposal was part of the regulator\u2019s National Courier Accelerator Plan to improve courier and postal services in Malaysia. Among the proposals under Pakej included restrictions on the number of parcels handled by courier companies as well as limits on the ownership structure of firms, depending on the type of license they hold.\n\n\nAnalysts speaking to \nTech in Asia\n point to the boom in the number of couriers during the pandemic as the reason for foreign-owned companies entering the market. And according to the people we spoke with, VC-backed players such as Singapore-based Ninja Van and Indonesia\u2019s J&T Express slashed their prices to capture market share.\n\n\nNinja Van Malaysia CEO Adzim Halim tells \nTech in Asia\n that while the company believes in \u201chealthy competition,\u201d it acknowledges the importance of addressing \u201ccertain underlying issues to promote a fair and thriving industry.\u201d He welcomes MCMC\u2019s possible revisions to\u00a0the licensing framework.\n\n\nEcommerce platforms such as Lazada and Shopee have also ventured into the logistics business, adding price pressure especially for the last-mile segment.\n\n\n\n\nSingapore-based Ninja Van believes it has gone beyond last-mile by diversifying into public relations and enterprise solutions, among others. / Photo credit: Ninja Van\n\n\n\n\nThese forays into logistics have been met with criticism. Industry players claim that the platforms\u2019 other businesses cross-subsidize each other. Therefore, these companies can reduce courier charges to the point of offering free deliveries.\n\n\nAn ecommerce chief tells \nTech in Asia\n that some of these platforms establish a logistics arm to not only \u201cdo deliveries for you but eventually do delivery for others.\u201d The main goal for ecommerce firms, they say, is to keep costs down and not be too reliant on third-party couriers all the time.\n\n\nBut the ecommerce chief admits that it\u2019s \u201cimpossible\u201d to cover every nook and cranny of the country, so \u201cwe do use third-party services where it makes sense.\u201d\n\n\nThe two analysts we spoke to earlier are betting on J&T Express as the winner in the market, saying that the courier company managed to dominate the ecommerce delivery segment in less than three years, despite the pandemic.\n\n\nJ&T Express is also seeking to list on the Hong Kong Stock Exchange, \u201cso with fresh capital, the company is in an advantageous position to expand even more aggressively,\u201d one of the analysts says.\n\n\nNot out of the woods yet\n\n\nAnalysts and industry players we spoke to believe that the courier battle, especially over last-mile coverage, will only intensify.\n\n\nThe government\u2019s target is for the national ecommerce industry to reach 30 packages per capita by 2025.\n\n\nRHB Research analyst Alexander Chia wrote in a June 22 note that last-mile players were not out of the woods yet.\n\n\nThe government may have expressed commitment to address the operating costs and competitive environment, but \u201cwe have yet to see any impactful measures or initiatives being announced so far,\u201d he wrote.\n\n\nChia said that some of the companies under his coverage told investment analysts that the outlook for courier services and logistics industries remains \u201cchallenging.\u201d\n\n\nHe cited sector overcrowding \u2013 brought about by the rise in the number of foreign players \u2013 weak market sentiment, and inflationary pressures (including manpower costs) as the most pressing issues.\n\n\nNinja Van\u2019s Adzim believes his company has gone beyond focusing on last-mile deliveries with the introduction of its two other businesses, Logistics+ and its public relations arm. \u201cWe believe that our differentiation in the market is not solely based on us being a foreign player,\u201d he says.\n\n\nLogistics+ is a suite of services for SMEs \u2013 ranging from cross-border payment facilities to inventory management.\n\n\nThe firm\u2019s PR business, on the other hand, allows shippers to create and manage their brand reputation, among others.\n\n\nBut according to the analysts we spoke to earlier for this article, labor will put another spanner in the works for the industry.\n\n\nDHL, for instance, is expanding its operations in the northern state of Penang, but it \ntold\n \nThe Financial Times\n recently that it was \u201cfast seeing a scarcity of available people\u201d across the country.\n\n\n\n\nDHL is betting big on Penang but a labour crunch is stymying expansion. /Pic credit: DHL\n\n\n\n\nDHL had \u201csecured an agreement with the Malaysian government to bring in more foreign staff in return for offering facilities for workers that went beyond the minimum standards required,\u201d it said in the report.\n\n\nTalent will remain at a premium until building workers\u2019 facilities that meet international standards become less costly, the analysts say."}
{"title": "Sime Darby, AEI Capital join Vynn Capital as partners in latest fund", "body": "\n\nVynn Capital managing director/ Photo credit: Vynn Capital\n\n\n\n\nMalaysia-based \nVynn Capital\n announced that local conglomerate \nSime Darby\n and private equity firm \nAEI Capital\n have joined the VC firm\u2019s latest fund as limited partners.\n\n\nWith a target of US$30 million, the fund has also attracted investments from Wide Technologies from Indonesia and other limited partners from Malaysia and Singapore.\n\n\nVynn Capital is an early-stage VC firm that aims to bridge the gap between traditional industries and new economies. It also helps investors understand new industries and markets through its localized team and network across major cities in Southeast Asia.\n\n\nWith the new fund, Vynn Capital intends to strengthen its presence in Malaysia\u2019s startup ecosystem by providing financial support and industry expertise to startups focusing on areas such as smart mobility, transportation, logistics, and supply chain optimization.\n\n\nSime Darby is an industrial conglomerate that operates in a diverse range of businesses, including trading, logistics, and healthcare. The firm is particularly eyeing developments in the mobility space.\n\n\nSee also: \nWhat Malaysia\u2019s latest policies mean for the tech scene\n\n\n\u201cThis investment in Vynn Capital is in line with our mobility strategy that aims to future-proof our traditional core businesses against disruptive trends,\u201d said Sime Darby CEO \nJeffri Salim Davidson\n.\n\n\nMeanwhile, AEI Capital\u2019s role in the fund is to identify \u201cdisruptive\u201d businesses and \u201cstrong\u201d industry connections in Asia. Its group-wide asset under management (AUM) has exceeded US$1 billion as of the second quarter of 2023."}
{"title": "Tesla enters Malaysia with Model Y SUV", "body": "\n\nTesla electric vehicle charging points / Photo credit: \ntummataivas / 123RF\n\n\n\n\nElectric vehicle (EV) manufacturer Tesla has officially started sales in Malaysia.\n\n\nIn a recent social media post, the company introduced the Model Y \u2013 billed as the company\u2019s first mass-market SUV \u2013 to the Malaysian market.\n\n\nElon Musk, the CEO of Tesla and SpaceX, previously had a virtual meeting with Malaysia\u2019s prime minister, Datuk Seri Anwar Ibrahim, as Tesla prepares to open its headquarters in Selangor this year.\n\n\nThe prime minister reiterated the country\u2019s commitment to achieving net-zero emissions by 2050 and emphasized its comprehensive ecosystem and competitive resources in supporting the clean energy industry, including electric mobility.\n\n\nThe discussion also touched on the participation of SpaceX in providing its Starlink satellite service to Malaysia.\n\n\nTesla\u2019s official launch in the country is scheduled for July 20. The move allows the US firm to capitalize on the red-hot ASEAN EV market, which is \nexpected to rise\n from\u00a0US$859 million this year to a staggering US$3.5 billion in 2028.\n\n\nMeanwhile, Chinese EV makers are making waves in Southeast Asia. BYD recently \nlaunched\n its Atto 3 vehicle in Singapore, while Great Wall Motor \nannounced\n the establishment of a subsidiary in Malaysia.\n\n\nSee also: \nMapping SEA\u2019s electric vehicle players"}
{"title": "Foodpanda to expand in-store grocery pickups to Bangladesh, Pakistan", "body": "\n\nPhoto credit: Foodpanda\n\n\n\n\nFoodpanda\n is taking its in-person pickup service for \nPandamart\n stores to\u00a0Bangladesh and Pakistan \u201cin coming months.\u201d\n\n\nThe feature, which was launched in March in Singapore, is currently available in one Pandamart store in the city state and for select items in all stores in Malaysia.\n\n\nFoodpanda also said it expanded the service in Hong Kong after first launching there in April. It allows customers in the city to grab their groceries in as fast as five minutes. Consumers in Singapore and Malaysia can collect their orders in 15 minutes.\n\n\nMeanwhile, Grab, one of Foodpanda\u2019s competitors, has \nlaunched a similar omnichannel feature\n.\n\n\nFoodpanda was established in Singapore in 2012 by \nLukas Nagel\n and \nRico Wyder\n. The company, which is owned by Germany-based Delivery Hero, offers services including food and grocery deliveries, dine-in payments, as well as parcel delivery service Pandago.\n\n\nBesides Singapore, Hong Kong, Malaysia, Bangladesh, and Pakistan, Foodpanda operates in Thailand, Taiwan, Laos, Cambodia, Myanmar, and the Philippines.\n\n\nAirAsia recently \npartnered with Foodpanda\n, a deal that sees the latter handle the travel app\u2019s food delivery business.\n\n\nSee also: \nCan Grab\u2019s dine-in services reverse a fall in food delivery growth?"}
{"title": "Antler expands into Malaysia through partnership with Khazanah", "body": "\n\nAntler co-founder Jussi Salovaara (left) and Khazanah Nasional\u2019s Amirul Feisal Wan Zahir / Photo credit: Antler\n\n\n\n\nAntler\n\u00a0announced its expansion into Malaysia through a partnership with \nKhazanah Nasional\n, the country\u2019s sovereign wealth fund.\n\n\nTech in Asia\n first \nreported\n in March that Khazanah was looking to team up with the global VC firm.\n\n\nAntler will be involved in the Future Malaysia Programme \u2013 an initiative under Khazanah\u2019s 6 billion ringgit (US$1.3 billion) Dana Impak (Impact Fund) \u2013 which is committed to investing in local startups over the next five years.\n\n\nAntler will also have a base in Kuala Lumpur, aiming to invest in over 30 startups in the country on its own over the next three years. Malaysia is the latest addition to Antler\u2019s presence in Southeast Asia after Singapore, Indonesia, and Vietnam.\n\n\n\u201cThis is another step forward for our Future Malaysia Programme, which aims to scale Malaysian ideas and businesses to be globally competitive,\u201d said \nAmirul Feisal Wan Zahir\n, managing director of Khazanah, in a statement.\n\n\nZahir said that the impact fund will aid startups in stages ranging from pre-seed to growth.\n\n\nFounded in 2017, Antler has invested in over 792 companies with a cumulative portfolio value of US$3.7 billion to date.\n\n\nLast month, it\u00a0\nclosed\n its US$285 million emerging growth Antler Elevate. The VC also aims to participate in \n100 investment deals\n\u00a0in Southeast Asia this year.\n\n\nSee also:\u00a0\nWhat Malaysia\u2019s latest policies mean for the tech scene\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.61 ringgit."}
{"title": "Razorpay launches payment gateway in Malaysia via Curlec", "body": "\n\nPhoto credit: Curlec\n\n\n\n\nIndia-based \nRazorpay\n announced that Curlec \u2013 the Malaysian startup it had acquired in 2022 \u2013 has transitioned to a full stack payment gateway for businesses.\n\n\nNow Curlec by Razorpay, the service allows businesses to accept payments and automate payouts. It also marks the first international launch of a payment gateway for Razorpay, which serves 10 million businesses in India.\n\n\nPreviously, Curlec was focused on its recurring payments solutions.\n\n\nCurlec by Razorpay already has more than 700 clients in Malaysia, according to a statement. They include Tune Protect, CTOS, Courts, Mary Kay, and The National Kidney Foundation.\n\n\nThe fintech firm aims to reach over 5,000 businesses and hit 10 billion ringgit in annualized gross transaction value by 2025. It is also looking to generate growth off the back of Malaysia\u2019s digital economy, which is expected to be worth \nUS$35 billion by 2025\n.\n\n\nCurlec by Razorpay will benefit from the high usage of mobile phones and the real-time payments system (DuitNow) in the country as well as government support for the digital economy.\n\n\nRazorpay bought a majority stake in Curlec in February 2022 and plans to fully acquire it within a year and a half. It also made two deals in India last year: acquiring \nIZealiant Technologies\n and snapping up an \nover 80% stake\n in Ezetap.\n\n\nSee also: Is\n fintech overrated? DBS, OCBC, UOB see record profit, seek reinvention amid uncertainty"}
{"title": "Founders of Jirnexu step down from executive roles", "body": "\n\n\n\nJirnexu co-founder Hann Liew / Photo credit: Ernst & Young\n\n\n\n\nHann Liew\n and \nLucas Oo\ni, co-founders of Malaysia-based fintech firm \nJirnexu\n, are leaving their executive roles at the company, Liew announced in a \nLinkedIn post\n.\n\n\nPreviously, Liew was an executive director and Ooi was corporate development director. Other founders include \nYuen Tuck Siew\n, who will continue to serve as the CEO. Both Liew and Ooi plan to remain as shareholders and board members.\n\n\nFounded in 2012, Jirnexu was formerly known as Saving Plus. It provides online tools and advice to its users and helps banks and insurance companies streamline their application processes. Later, it \nclaimed\n to be the first full-stack fintech company in Southeast Asia.\n\n\nThe firm launched financial comparison websites RinggitPlus in Malaysia and KreditGoGo in Indonesia in 2013 and 2014, respectively. These businesses then merged with SaveMoney.my, an online portal for information on financial products.\n\n\nLiew and Ooi, who co-founded SaveMoney.my, joined RinggitPlus as CEO and director of insurance, respectively. In 2016, Saving Plus \nrebranded\n to Jirnexu, while raising US$3 million in series A funding.\n\n\nJirnexu is currently \u201cprofitable\u201d with an annual recurring revenue of over 50 million ringgit (US$10.7 million), Liew said. The company has 1.5 million customers.\n\n\nOther members of the executive team include co-founder and chief operating officer \nJames Barnes\n, chief commercial officer\u00a0 \nJack Low\n, and CFO \nKhoon Eong Lim\n.\n\n\nTo date, Jirnexu has secured at least US$37 million in funding, including the latest \nUS$10 million\n series B investment from consumer credit firm Experian, according to \nCrunchbase\n\u2018s data.\n\n\n\n\n\n\nSee also: \nPleasant surprise in Malaysia\u2019s digibank race\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.67 ringgit.\n\n"}
{"title": "Ant Group expands Alipay+ to all 7-Eleven stores in Malaysia", "body": "\n\nPhoto credit: Ant Group\n\n\n\n\nAnt Group\n has expanded its coverage in Malaysia, enabling all 7-Eleven stores in the country to accept \nAlipay+\n and other mobile wallets in its ecosystem.\n\n\nThe integration, which was facilitated by Razer Merchant Services, allows the 2,400 7-Eleven stores in Malaysia to accept AlipayHK, GCash, Kakao Pay, and TrueMoney as payment options.\n\n\nThis development brings the total number of merchant touchpoints accepting Alipay+ in Malaysia to over 80,000.\n\n\n\u201cWith growing coverage of Alipay+ in Malaysia, we\u2019re connecting more Asian travelers to local merchants, helping to position Malaysia as a travel destination of choice and unlocking new opportunities for local businesses,\u201d said \nCherry Huang\n, general manager of Alipay+ Offline Merchant Services at Ant Group.\n\n\nAlipay+ was introduced by Ant Group in 2020 to help businesses expand their supported payment methods to reach more consumers. Apart from Malaysia, Alipay+\u2019s mobile wallets are also accepted as payment options in markets such as mainland China, Macao, Singapore, Thailand, Japan, and South Korea.\n\n\nSee also: \nFrom China with love: Digital banks ANEXT and GLDB aim to fill SME lending void in SG"}
{"title": "A Malaysian insect-protein firm is raising seed money with this deck", "body": "\n\nImago Engineering\n is a Malaysian company specializing in the construction of fully automated plants that produce protein, fat, and fertilizers from insects.\n\n\nThe startup\u2019s plants take manure from farms to grow the insects that will make the protein, which can be an alternative to fishmeal in aquaculture feed. This protein is also used in the production of poultry, pork, as well as pet food.\n\n\nFounded in June last year by \nLeonid Nikishov\n and \nViacheslav Kaptenko\n, the company is using this deck to raise its seed round.\n\n\nFundraising Journey\n\n\n\n\n2022: US$500,000 in an undisclosed round\n\n\n\n\nWe\u2019re building the largest collection of fundraising pitch decks in Asia and the world. Check them out \nhere."}
{"title": "Alt-protein firm Green Rebel readies to serve the Philippines, Vietnam", "body": "\n\nGreen Rebel Foods co-founders Max Mandias (left) and Helga Angelina Tjahjadi / Photo credit: Green Rebel\n\n\n\n\nIndonesia-based alt-protein firm \nGreen Rebel\n will be expanding to the Philippines and Vietnam in August this year and has \u201cother markets in the pipeline.\u201d\n\n\nThe startup says it chose the two countries, as meat consumption in those markets has been relatively higher than in the rest of the region and because people are willing to shift to plant-based meats if the quality is on par and is affordable.\n\n\n\u201cIt\u2019s within our mid-term goals to achieve price parity to animal-based meat in most markets we operate in,\u201d co-founder \nHelga Angelina Tjahjadi\n\u00a0tells\u00a0\nTech in Asia.\n\n\nFounded in 2020 by Tjahjadi and \nMax Mandias\n, Green Rebel offers plant-based proteins, with dishes such as Beefless Rendang, Beefless Satay, Chick\u2019n Karaage, and Beefless Steak.\n\n\nAccording to the firm, its meatless beef has 91% less global warming potential than local beef, while that number stands at 84% for its chicken offering.\n\n\nGreen Rebel\u2019s expansion efforts come after it \nlaunched in Singapore\n \u2013 its first market outside Indonesia \u2013 in March 2022, followed by Malaysia in December 2022 and South Korea in April this year.\n\n\nAs part of its growth strategy, the company has forged partnerships specific to each market, joining hands with firms such as Nando\u2019s in Singapore, Starbucks in Malaysia, and Food Does Matter in South Korea.\n\n\nThe founders \u2013 who also established Indonesia\u2019s biggest vegan food chain \nBurgreens\n \u2013 find that localizing their offerings in some markets is one of the greatest challenges from a manufacturing perspective.\n\n\nSee also: \nRecession Run: Alt protein to be $200b industry this decade, says Good Startup\n\n\nThe firm raised US$10 million in an oversubscribed pre-series A funding round last year, with investors such as Better Bite Ventures, Teja Ventures, and Unovis participating.\n\n\nBy the end of this year, Green Rebel looks to raise US$8 million to US$10 million in its series A funding round for its global expansion initiatives as well as to \u201c[pave its] path to profitability.\u201d In the second half of the year, it will also launch new products tapping into Chinese and Filipino flavors.\n\n\n\u201cWe\u2019re looking to launch in the US and Europe in one to two years. The first country in Europe will of course be the Netherlands, given the strong connection and affinity between Indonesia and Southeast food as well as Germany,\u201d Tjahjadi says."}
{"title": "Carro backs Malaysian automobile content firm Driven Communications", "body": "\n\nThe Carro team / Photo credit: Carro\n\n\n\n\nSingapore-based \nCarro\n, an online used-car platform, has announced a strategic investment in \nDriven Communications\n, a Malaysian digital content firm that owns several automotive websites.\n\n\nThe deal value was not revealed, but it is expected to be finalized within two months. Carro said that the deal will not hamper editorial freedom of Driven Communications, which will remain under the leadership of co-CEOs \nPaul Tan\n and \nHarvinder Singh\n.\n\n\nThe digital content firm handles \nPaultan.org\n, an automotive review and news website that sees up to 6 million monthly active visits. It also houses \nCarBase.my\n, a buyer\u2019s guide platform, and \nOto.my\n, a used-car classifieds site.\n\n\n\u201cOur investment and support gives Driven Communications room to achieve immediate positive net income, putting them on a stable financial standalone footing with strong earnings growth potential,\u201d said \nErnest Chew\n, CFO of Carro, in a statement.\n\n\nCarro, which operates Malaysian platform myTukar, said it had been working with Driven Communications for around two years before the deal.\n\n\nAaron Kee, the chief of staff at Carsome, recently alleged that Paultan.org was \nhiding its affiliation\n with Carro in a response to a tweet saying Tan was part of a \u201ccoordinated attack\u201d against the Carro competitor.\n\n\nKee went on to highlight that Paultan.org was \u201cplastered with myTukar\u2019s ads.\u201d \u201cTo be clear, media sponsorship is not wrong, but I\u2019m pointing out the probable affiliations. We have affiliations with Carlist and Wapcar as well, but we do not attempt to hide it,\u201d he added.\n\n\nTan and Carro CEO Aaron Tan \ndenied\n the allegations while a Carsome representative told \nTech in Asia\n the company won\u2019t be commenting on the matter.\n\n\nWithout going into specifics, Carro added in its announcement of the deal that its investment into Driven Communications comes after recent acquisitions of sites covering the automotive industry have resulted in some dealers and platforms being blocked.\n\n\nCarro recently announced a \nUS$60 million strategic partnership\n with\u00a0investment firm\u00a0Jardine Cycle & Carriage (JC&C). In a previous interview with \nTech in Asia\n, CEO and founder \nAaron Tan\n said the company will leverage JC&C\u2019s network to get access to \u201cgood quality inventory which we otherwise could not have access to.\u201d\n\n\nSee also: \nCarro sees \u201crecord\u201d EBITDA as its fintech and other verticals get spotlight"}
{"title": "Carsome boosts liquidity to $200m with latest raise", "body": "\n\n\n\n\n\n\n\n\n\nPhoto credit: Carsome\n\n\n\n\nCarsome\n, a Malaysia-based used car marketplace, has closed its latest fundraising round, bringing its liquidity position to around US$200 million. The amount raised was not disclosed.\n\n\nThe funding round attracted existing backers such as 65 Equity Partners, Seatown Private Capital Master Fund, Qatar Investment Authority, Gobi Partners, and Asia Partners.\n\n\nEvolutionX Debt Capital, a growth-stage debt financing platform by DBS and Temasek, also joined the round as a new investor.\n\n\nIn a letter previously seen by\n Tech in Asia\n, Carsome was eyeing \u201can internal bridging round and an external mid-year fundraise\u201d totaling a potential US$55 million for 2023 \u2013 ahead of its planned IPO.\n\n\nQatar Investment Authority, 65 Equity Partners, and Seatown Holdings were slated to lead a US$45 million raise, while the remaining US$10 million was expected to come from \u201cother existing Malaysian institutional investors.\u201d\n\n\nTech in Asia\n previously reported that the company was \nseeking help\n from Malaysian Deputy Finance Minister Steven Sim with the fundraising plans, which Carsome then \nrefuted\n.\n\n\nCarsome said its revenue for 2022 grew 250% to US$1.5 billion on the back of strong demand for car sales. Its new retail line, Carsome Certified, pitched in roughly 35% of the total revenue last year. The company also hit operational profitability in the first quarter of 2023.\n\n\nSee also: \nCarsome petitions Malaysian minister in bid to raise $55m before IPO\n\n\n\n\n\n\n\n"}
{"title": "Love Bonito sees 41% revenue growth in 2021 (update)", "body": "\n\nPhoto credit: Love Bonito\n\n\n\n\nSingapore-based ecommerce firm \nLove Bonito\n recorded S$44 million (US$32.8 million) in revenue across its markets in 2021, marking a 41% year-on-year growth, according to financial statements obtained from VentureCap Insights.\n\n\nThe company\u2019s most popular market was Singapore, contributing US$20.8 million, which is a 34% bump from the previous year. Malaysia and Indonesia were the runners-up.\n\n\nIn 2021, the firm\u2019s revenue from the rest of the world \u2013 minus the three markets \u2013 rose by nearly 80% to US$4.7 million.\n\n\nWithout giving any specific numbers for FY2022, Love Bonito CFO \nWill Vaya\n told \nTech in Asia\n that the company\u2019s business mix has been trending toward international markets, which now contribute over 50% of its ecommerce operations. \u201cWe are seeing high double-digit growth in all our markets, new and old,\u201d he commented.\n\n\nThe company ships to 18 countries, with other key markets including Hong Kong and Cambodia.\n\n\nIts net loss for the year was US$8.2 million, widening by over 2x compared to 2020, which Vaya attributed to the company\u2019s market expansion efforts in 2021.\n\n\n\u201cWe invested upfront in hiring for international expansion, where we have been successful in entering new markets including Hong Kong, the Philippines, and the US,\u201d he explained.\n\n\nIn 2021, its cash and cash equivalents grew over 3x to US$43.3 million, due in large part to the \nUS$50 million it raised in its series C funding round\n that year.\n\n\nThe direct-to-consumer brand, founded in 2010 by \nRachel Lim\n and \nViola Tan\n, sells its women\u2019s fashion products through both online and offline channels.\n\n\nThe firm acquired\n activewear brand Butter in October 2022, a month after it purchased a stake in healthtech company Moom.\n\n\nThis year, Love Bonito recently opened a pop-up store in New York City, and is looking to eventually \ngo public in the country\n. It is also continuing to open stores across all key markets in Asia, Vaya added.\n\n\nSee also: \nCan Love Bonito triumph over a D2C model under threat?\n\n\nUpdate (June 15, 5:00 p.m. SGT): This article was updated to clarify that overall revenue grew 41% and to include comments from the company.\n\n\nCurrency converted from Singapore dollars to US dollars: US$1 = S$1.34"}
{"title": "Carsome\u2019s controversial letter to Malaysian minister unpacked", "body": "\n\nPhoto credit: Carsome\n\n\n\n\nDan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nLast Friday, we \nran a scoop\n that used-car platform Carsome petitioned Malaysian Deputy Finance Minister Steven Sim to be recommended as an investment for government-linked investment companies (GLICs) and government-linked companies (GLCs).\n\n\nAfter hitting publish, it was fire. I received requests for the headline to be changed, among others. After mulling over them, we stuck with the headline because we felt it captured the letter well.\n\n\nA mini storm also brewed on social media, especially Twitter, where I usually hang out.\n\n\nSo I wagered it\u2019s time for a follow-up to unpack some of the points in the article and to talk about an interesting development that has happened since.\n\n\nDid Carsome have to write to the minister?\n\n\nIn a response to our story, Carsome denied soliciting or petitioning the Finance Ministry for funding.\n\n\nIt said the March 27 letter was in \u201cresponse to an engagement session\u201d with the ministry \u201cto encourage and welcome the participation of Malaysian institutional investors in the company\u2019s growth journey.\u201d\n\n\nBut the fact is that Carsome \ndid\n write a letter to the minister and it \ndid\n implore him to recommend the company as an investment to the country\u2019s state-owned institutions and firms.\n\n\nI wanted Minister Sim\u2019s take on this so I reached out to his team for comment. Sim acknowledged receiving the letter, which was sent to his office in April, and said he passed it to the relevant departments within the Finance Ministry for \u201creview and any further action deemed necessary.\u201d\n\n\n\n\nDeputy Finance Minister Steven Sim (white shirt) visiting Carsome\u2019s regional headquarters in Petaling Jaya in February. / Photo credit: Carsome\n\n\n\n\nHe added that it\u2019s not within the purview of the deputy minister\u2019s office to recommend or make any decisions on investments by the ministry or its agencies. Sim went on to cite existing structures in place within the ministry and relevant agencies to review proposals \u201cand make decisions based on merits, in a fair and independent manner.\u201d\n\n\nHere\u2019s another thing: you don\u2019t need to write to the minister to ask GLICs and GLCs to consider your company as an investment. These entities have their respective investment committees and their own frameworks for pouring funds into startups.\n\n\nIn other words, Carsome didn\u2019t need to take the matter to the minister as it could\u2019ve reached out directly to the GLICs and GLCs. Sure, it\u2019s the company\u2019s right to write to the minister \u2013 but this isn\u2019t the only way to get investor support.\n\n\nIt\u2019s also worth pointing out that while Carsome said in its letter that Malaysian institutions make up less than 10% of its cap table, Khazanah is one of its \nshareholders\n. That the sovereign wealth fund, which has insider knowledge on the used-car platform, has yet to cough out more cash for the bridging round is one thing, but Carsome asking the deputy finance minister to recommend it as an investment to an existing shareholder is another.\n\n\nAlong the way, Carsome chief of staff Aaron Kee tweeted that there were misconceptions about the letter being a bailout. He didn\u2019t tag us or refer to our story but, for what it\u2019s worth, we never mentioned a bailout.\n\n\nWe\u2019ll return to Mr. Kee in a bit, but pointing back to our article, the petition was in the context of raising an extra US$10 million from Malaysian institutions for the purpose of an IPO.\n\n\nWhy are we all getting excited or jumpy (in Carsome\u2019s case) over a support letter? No matter the intention, these things are usually frowned upon. It sends a \nnegative signal\n that one needs a backdoor to get something.\n\n\nTo be sure, situations like this are common and not solely unique to Carsome. But we\u2019re talking about Carsome because the letter was leaked. The fact that the company had to write to a minister certainly warrants attention.\n\n\nWill taxpayer money be used?\n\n\nThe usual criticism of asking for state support is that taxpayer money will be used. But that depends on which entities will step in to take up Carsome\u2019s request.\n\n\nIf we are talking about the entities named in the letter, then they do not depend on public allocations. In fact, it\u2019s the reverse: GLICs and GLCs are expected to contribute to \u201cnational interests\u201d by way of investments and dividends.\n\n\nKhazanah and Petronas, for example, pony up dividends to the government annually. In fact, in this year\u2019s budget, these entities are expected to \ncough up\n a cumulative sum of 1.6 billion ringgit (US$346.3 million) from their own books for startup funding.\n\n\nAnother thing to bear in mind is that these institutions cater to a specific audience. The Employees Provident Fund, for instance, is reserved for private sector workers while the Retirement Fund (also known by its Malay acronym, KWAP) is solely for civil servants. Not everyone is invested in these entities.\n\n\nA \u201cpublic\u201d case, however, can be made this way: Since Khazanah has to give dividends to the government, a bad investment could mean lower dividends.\n\n\nDirect public funds are channeled through various ministries and their respective agencies. For tech, you have the Science, Technology and Innovation Ministry and all its agencies such as the Malaysian Research Accelerator for Technology & Innovation.\n\n\nThere are also Finance Ministry-controlled companies such as Penjana Kapital and Mavcap, which invest in tech startups, that receive a direct injection of funds from the government. Now, Penjana and Mavcap are among \nCarsome\u2019s shareholders\n, and here is where the taxpayer angle is most relevant.\n\n\n\u2018Coordinated attacks\u2019 by the media?\n\n\nNow, back to Mr Kee. In a \nTwitter thread\n dated June 11, he wrote, among others, that \u201ca certain rival group is trying to shut us down via coordinated attacks.\u201d\n\n\n\n\nImage credit: Aaron Kee\u2019s Twitter\n\n\n\n\nAs far as \nTech in Asia\n is concerned, we\u2019ve not heard of any such attack as we were working on the article.\n\n\nKee then \nreplied\n to a Twitter user saying he doesn\u2019t want to allege anything defamatory. But he subsequently went to highlight local auto website Paultan.org, which were \u201cplastered with myTukar\u2019s ads.\u201d\n\n\nAfter being \ncalled out\n by entrepreneur Colin Charles for jumping the gun over what seemed to be retargeted ads, Kee went on to say he used a \u201cpoor example\u201d but claimed that Paultan.org was purportedly hiding its affiliation with myTukar. \nHe also wrote a follow up thread on the same subject, even saying that he met up with the journalist to explain matters, which have been liked and retweeted by some of Carsome\u2019s staff.\n\n\nI reached out to Paul Tan, the owner of the auto website, and he denied the possibility of being part of the alleged \u201ccoordinated attacks.\u201d Aaron Tan, CEO of myTukar parent firm Carro, also denied being part of such a purported agenda, telling me that such allegations are \u201ctotally baseless and rejected entirely.\u201d\n\n\nI then reached out to Carsome for clarification, asking if the firm or Kee could prove the claims since the threads were retweeted by staff. I also asked whether Kee was tweeting in his personal capacity or if he was representing the company, as well as if Carsome could provide the identity of the journalist Kee was referring to or the publication the journalist is affiliated with.\n\n\nA company spokesperson told me that Carsome will not be commenting on the matter.\n\n\nInstitutional FOMO and all that jazz\n\n\nAnyway, there are some things we need to consider.\n\n\nFor one, a bridging round is normal in the tech world. But that Carsome needed to tap the might of Malaysian government-linked entities at this stage is something we need to watch, more so as the firm has come out in defense that it still has more than US$150 million in its war chest and that it is on path to break even this year.\n\n\nOne proxy for Carsome\u2019s possible listing trajectory is US-based Carvana, which \nisn\u2019t doing too well\n on the New York Stock Exchange.\n\n\nSure, there are nuances in both companies\u2019 business models. But there\u2019s a similar concern: Will Carsome reach a point where it\u2019ll \nstruggle\n to sell cars acquired at elevated prices?\n\n\nThere\u2019s another question to consider: Where does Carsome plan to list? Bursa Malaysia may be a destination but the Main Market is a profit-testing exercise \u2013 companies need to \npost profits\n at least for three years prior to listing.\n\n\nBoth Bursa and the Securities Commission Malaysia have been working on reforms, but will these be implemented in time to match Carsome\u2019s listing needs?\n\n\nFor what it\u2019s worth, Nasdaq and other stock exchanges have more sophisticated investors and liquidity. So even if Bursa delivers on its reforms, that\u2019s just one part of a complex puzzle.\n\n\nFinally, there\u2019s always the fear that Malaysia will keep losing unicorns to (gasp) Singapore like the case of Grab, simply because our institutions weren\u2019t quick enough to move in.\n\n\nThat\u2019s true. And I know of some other Malaysian startups that have domiciled in Singapore already.\n\n\nBut this is a tricky case. Malaysia has much to do for it to catch up, from regulations to funding. The country\u2019s institutions, for example, \ndo not even seed\n young fund managers, unlike what\u2019s happening with Singapore\u2019s Temasek.\n\n\nAt the same time, there\u2019s still the fear that Malaysian institutions will invest in the wrong companies. Beneath this fear is also a lack of accountability.\n\n\nRecently, Temasek cut compensation for its senior management and for the team that recommended the firm\u2019s investment in FTX, the now-bankrupt crypto exchange.\n\n\nYou\u2019ll never find that level of accountability here. In fact, we love to fail upward.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.62 ringgit."}
{"title": "Carsome refutes report that it petitioned gov\u2019t for funding", "body": "\n\nPhoto credit: Carsome\n\n\n\n\nIn a statement released on June 8, \nCarsome\n said it has neither petitioned nor solicited the Ministry of Finance for funding. This follows a \nTech in Asia\n \nrepor\nt indicating otherwise.\n\n\nThe Malaysian unicorn reaffirmed that it\u00a0posted strong growth in revenue and operational profitability for the first quarter of 2023. The company also added that it has a solid liquidity position of over US$150 million, which will allow the startup to continue expanding in the region.\n\n\nIn the statement, Carsome said that it submitted a letter on March 27 in response to an engagement session with the Ministry of Finance \u201cto encourage and welcome the participation of Malaysian institutional investors in the company\u2019s growth journey.\u201d\n\n\nAs \nTech in Asia\n previously reported, Carsome is planning to do \u201can internal bridging round and an external mid-year fundraise\u201d this year, which would be its \u201clast\u201d raises before a planned IPO.\n\n\nAccording to the firm, its revenue for 2022 grew by 250%, driven by strong demand for its online car-buying and selling platform. The company\u2019s new retail line, \nCarsome Certified\n, contributed 35% of total revenue last year.\n\n\n\u201cAs we navigate a rapidly changing industry, Carsome has embraced adaptability and remained resilient,\u201d said \nEric Cheng\n, co-founder and group CEO of Carsome. \u201cWe are grateful for the government\u2019s support towards a homegrown brand such as ours as we scale regionally.\u201d\n\n\nSee also:\u00a0\nCarsome petitions Malaysian minister in bid to raise $55m before IPO\n\n\nNote: This article was written with the help of AI. Don\u2019t worry, humans were still involved in producing this story."}
{"title": "Crypto regulation heat map: Where does your country rank?", "body": "\n\nThe editorial team at \nTech in Asia\n has been talking about crypto regulation since the meltdown of TerraLabs in May last year.\n\n\nOver the past year, many countries have progressed toward fixing the problems that led to the current crypto winter, but only a very few countries have come up with comprehensive reforms.\n\n\nNo country \u2013 usually by their own admissions \u2013 has a complete regulatory framework that covers the entire industry.\n\n\nTo help you follow all these developments, we\u2019ve created a regulatory heat map. Above, you\u2019ll find the countries most involved in crypto, so you can see where the most progress is being made.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nWe looked at everything from the basic questions such as \u201cIs crypto legal?\u201d to more complex questions like \u201cDoes the country differentiate between centralized and decentralized exchanges?\u201d\n\n\nWe have also compiled a regulatory tracker below to help you keep track of the latest updates.\n\n\n\n\nHow we did it\n\n\nFirst, the map is meant to show who is regulating and who isn\u2019t. It doesn\u2019t indicate the strictness of the regulations or how well-thought out they are. We will get to those later.\n\n\nFor each country, we looked at four questions in four categories.\n\n\nGeneral regulations\n\n\n\n\nIs crypto (as a whole) legal?\n\n\nHow many different agencies are involved in regulating the sector?\n\n\nAre there any established laws?\n\n\nIs the government actually regulating crypto or just talking about it?\n\n\n\n\nHow tokens are traded\n\n\n\n\nIs a license required to operate an exchange?\n\n\nHas the government passed any laws specifically on crypto exchanges?\n\n\nDoes the government differentiate between centralized and decentralized exchanges?\n\n\nDoes the government require decentralized exchanges to be licensed?\n\n\n\n\nDecentralized finance (DeFi) is causing problems for regulators, and the category often gets lumped in as a virtual asset service provider (VASP), a catch-all category for any platform that handles token exchanges.\n\n\nBecause of that, some countries do require DeFi platforms to be licensed, even if there are no laws on how to handle the peculiarities of that sector.\n\n\nStablecoins\n\n\n\n\nDoes the government regulate the issuance of tokens in the country?\n\n\nDoes the country allow its own currency to back the tokens?\n\n\nCan stablecoins be legally traded on an exchange?\n\n\nHas the country enacted any policies or passed any regulations on unbacked (algorithmic) stablecoins?\n\n\n\n\nNon-fungible tokens (NFTs)\n\n\n\n\nAre there laws covering the minting, selling, and trading of NFTs?\n\n\nAre NFT exchanges regulated?\n\n\nDoes the government recognize NFTs as property or securities?\n\n\nIs there any legal recognition for NFTs that are bound to physical goods?\n\n\n\n\nBreakdown by country\n\n\n\n\nThailand, one of the last countries we analyzed, was our biggest surprise. It scored higher than any other country on our heat map, which was unexpected given that just a few years ago, it was actively banning some areas of crypto.\n\n\nThailand started regulating the sector in 2018, following a previous ban on all crypto. The current regulations include who gets a license to trade crypto assets and a ban on using cryptocurrencies for payments. Thailand also regulates NFTs, which almost no other country does.\n\n\nMore regulations on stablecoins are expected later this year.\n\n\n\n\nUnlike Thailand, it should surprise no one that Singapore is one of the highest-scoring countries on this list. The Monetary Authority of Singapore has been active in formulating regulations for the sector.\n\n\nThe only areas Singapore hasn\u2019t issued regulations on are decentralized exchanges and NFTs.\n\n\n\n\nAnother no-surprise near the top of our list is the Philippines. Not only is it popular among the Web3 gaming crowd, the country has also been actively seeking ways to develop its own crypto exchanges and tokens.\n\n\nThe focus, though, has been mainly on tokens and payments. Stablecoins and NFTs are still largely unregulated.\n\n\n\n\nAnother early adopter of crypto, South Korea has taken proactive steps in developing rules for the sector.\n\n\nThe one glaring hole is the lack of rules on stablecoins. Even a year after the downfall of TerraLabs, the Korean crypto startup whose demise sent the entire industry into a tailspin, the country still hasn\u2019t passed any legislation.\n\n\nNFTs are also largely unregulated.\n\n\n\n\nYou\u2019d think the city\u2019s recent release of regulations \u2013 and its desire to be an Asian crypto hub \u2013 would place it higher on this list.\n\n\nBut Hong Kong is really starting from zero. While the general rules are there, a lot of the specifics still need to be ironed out.\n\n\n\n\nThe EU was applauded when it approved the Markets in Crypto-Assets (MiCA) regulations.\n\n\nThen people read the document and realized that although the regulations are thorough, they still haven\u2019t covered large swathes of the industry, including decentralized exchanges and NFTs.\n\n\n\n\nJapan was one of the earlier regulators of crypto, and its rules are generally well-thought out and thorough. But regulatory changes don\u2019t come quickly in the country, and there is a lot to be addressed, including stablecoins.\n\n\nBut if there\u2019s any country whose scores we\u2019d expect to jump in a future version of the tracker, it would be Japan. It seems cognizant of the need for more legislation and is working toward that.\n\n\n\n\nIndonesia can be a little hard to read. Just last year, the country issued a moratorium on crypto exchanges. Then, the government handed the regulatory authority on crypto over to a new agency and everything changed.\n\n\nNow the government\u2019s talking about the digital rupiah and even looking at regulations for asset-backed NFTs. The only significant gap in their regulations is the lack of DeFi rules.\n\n\n\n\nWe hesitate to label the US as \u201canti-crypto,\u201d but that title fits. The country has no clear regulatory direction on crypto, instead allowing various agencies to offer competing and even contradictory rules on whether crypto is a commodity or a security.\n\n\nThese agencies then tried to shoehorn assets into existing regulations. The only clear message from the Securities and Exchange Commission is: \u201cIf it\u2019s a security, we have regulatory oversight.\u201d\n\n\nThis policy has resulted in an \u201cenforcement by action\u201d environment that has made it very difficult for firms to operate in the country.\n\n\nWhile there has been talk about legislation, it\u2019s unlikely that the current government will pass any new laws.\n\n\n\n\nMalaysia seems to be using the US crypto playbook. There are no legislations or regulations on crypto, and the general stance is: If it\u2019s a security, then Bank Negara Malaysia \u2013 the central bank \u2013 can regulate it.\n\n\nThat means using the old security laws already on the books.\n\n\n\n\nThe UAE is known for its light regulatory touch, but that doesn\u2019t mean the sector isn\u2019t seriously regulated. The government has recently passed regulations on exchanges and tokens, and stablecoin rules are also in the works.\n\n\nBut the challenge is knowing which regulatory agency you\u2019re dealing with. There are different rules for Dubai, Abu Dhabi, mainland UAE, and the free zones.\n\n\n\n\nIndia seemed poised to pass crypto regulations in 2021, but the bill stalled and hasn\u2019t been addressed since. Its future is uncertain, but all crypto exchanges are now required to institute anti-money laundering programs.\n\n\n\n\nVietnam frequently shows up as a place that loves and uses crypto. There are no rules yet, but the president \nhas admitted\n that it needs them.\n\n\n\n\nChina\u2019s attitude to crypto is simple: nope.\n\n\nTo be fair, that IS regulatory clarity. And the country isn\u2019t opposed to \nblockchain technology\n, but it seemingly wants to keep the technology separate from the financial system. If you\u2019re looking for insight on how China might develop crypto, keep a close eye on Hong Kong."}
{"title": "Carsome petitions Malaysian minister in bid to raise $55m before IPO", "body": "\n\nPhoto credit: Carsome\n\n\n\n\nMalaysian unicorn \nCarsome\n is planning two funding rounds this year as it gears toward an IPO. And it\u2019s asking a Malaysian minister to help it achieve its goal.\n\n\nIn a March 27 letter\u00a0sent to Deputy Finance Minister Steven Sim, the company implored the official to recommend the firm as an investment to Malaysian government-linked entities.\n\n\nIn the letter seen by \nTech in Asia\n, Carsome said it would do \u201can internal bridging round and an external mid-year fundraise\u201d this year, which would be its \u201clast\u201d ones before a planned IPO.\n\n\nThe company wrote that while it is \u201cknown widely\u201d as a Malaysian unicorn, investments from local government-linked investors \u201conly amount to less than 10% of our cap table. This is far overshadowed by the enthusiasm and support from foreign-owned funds.\u201d\n\n\nCarsome is pursuing the bridge investment with existing investors. Qatar Investment Authority, as well as Temasek-backed firms 65 Equity Partners and Seatown Holdings, will be leading the US$45 million round.\n\n\nBut the used-car platform said the three VC firms would like \u201cto see a commitment of US$10 million\u201d from \u201cother existing Malaysian institutional investors.\u201d\n\n\n\n\nDeputy Finance Minister Steven Sim (white shirt) visiting Carsome\u2019s regional headquarters in Petaling Jaya, Malaysia in February. / Photo credit: Carsome\n\n\n\n\nTech in Asia\n understands that Carsome has closed its US$45 million fundraiser and is now looking to complete the remaining US$10 million from local investors.\n\n\nCarsome said it hopes that the Finance Ministry \u201ccan strongly recommend\u201d other Malaysian government-linked financial institutions and investment companies to participate\u00a0in an external fundraise later this year.\n\n\nNames mentioned in the letter are: Khazanah Nasional, Employees Provident Fund, Armed Forces\u2019 Fund Board, Retirement Fund, Petronas Ventures, and Sime Darby, among others. All these entities fall under the purview of the Finance Ministry.\n\n\nKhazanah Nasional is the country\u2019s sovereign wealth fund while the rest are state-owned financial investors except for Petronas Ventures and Sime Darby, which are corporations linked to the government.\n\n\nThe letter doesn\u2019t state when or where Carsome intends to list, but the firm told Sim that these funding rounds, along with participation from state-linked entities, \u201cwill be key in determining Carsome\u2019s future direction and investments locally.\u201d\n\n\nCarsome confirmed the letter with \nTech in Asia\n but declined to comment on the funding rounds, citing confidentiality. However, the firm stressed that it has \u201ca robust liquidity position of over US$150 million.\u201d\n\n\nThe company previously \ntold\n \nTech in Asia\n that it had implemented its\u00a0\u201caccelerated profitability plan\u201d and is expected to return to the black this year after retrenching about 5% of its workforce in 2022.\n\n\nIt is also part of a Malaysian digital banking consortium that is set to launch its first product by the end of 2023.\n\n\nCorrection (June 8, 7.37 p.m. SGT): The story has been corrected to reflect a more accurate amount Carsome intends to raise in the headline and text, as well as the status of the two fundraisers.\u00a0"}
{"title": "PolicyStreet bags $15.3m from Malaysian gov\u2019t to bolster insurance products", "body": "\n\nPolicyStreet management / Photo credit: PolicyStreet\n\n\n\n\nMalaysian insurtech company \nPolicyStreet\n has raised US$15.3 million in its series B funding round led by local sovereign fund \nKhazanah Nasional Berhad\n. This investment was made under the fund\u2019s 6 billion ringgit (US$1.3 billion) Dana Impak mandate.\n\n\nPolicyStreet offers digital insurance options to both consumers and businesses, aiming to make such products more accessible and affordable with the firm\u2019s in-house underwriting capabilities.\n\n\nFounded by \nWilson Beh\n, \nYen Ming Lee\n, and \nWinnie Chua\n in 2016, the firm counts Shopee Malaysia, Foodpanda Malaysia, and Carsome among its partners. These collaborations allow PolicyStreet to offer its services to gig economy workers.\n\n\nFunding details\n\n\n\n\n\n\nFunding amount:\n US$15,300,000\n\n\n\n\nLead investor:\n Khazanah Nasional Berhad\n\n\n\n\nOther investors:\n Altara Ventures, Gobi Partners, Spiral Ventures (IMJ Investment Partners)\n\n\n\n\nStage:\n Series B\n\n\nSource\n\n\n\n\nSince its establishment, the firm has served over 50,000 SMES and 500,000 gig workers who belong to the \nBottom 40%\n (B40) group. Malaysia categorizes B40 households as those that have an income of below US$1,055.\n\n\nPolicyStreet looks to reach a total of 2.5 million gig workers and 300,000 SMEs within the next five years.\n\n\nThe company will use its fresh funds to strengthen its tech and underwriting system, as well as increase on-demand underwriting policies.\n\n\nLast year, its co-founder Wilson Beh was also appointed as \nthe 2022-2023 president\n of the \nFintech Association of Malaysia\n committee.\n\n\nSee also: \nThe rise of enigmatic insurtech unicorn Bolttech\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.60 ringgit.\n\n\nMore details\n\n\n\n\n\n\n\n\nPolicyStreet\n\u2192\n\n\nThe company was founded in 2016 by \nWilson Beh\n, \nYen Ming Lee\n, and \nWinnie Chua\n.\n\n\n\n\n\n\n\n\n\n\nStage\n\n\nAmount (US$)\n\n\nInvestors\n\n\n\n\n\n\nSeed\n\n\n500,000\n\n\nKK Fund\n\n\n\n\n\n\nSeries A\n\n\n7.8 million\n\n\nAuspac, Altara Ventures, Gobi Partners, KK Fund, Spiral Ventures (IMJ Investment Partners)\n\n\n\n\n\n\nSeries B\n\n\n15.3 million\n\n\nKhazanah Nasional Berhad, Altara Ventures, Gobi Partners, Spiral Ventures (IMJ Investment Partners)\n\n\n\n\n\n\nTotal\n\n\n23.6 million\n\n\n\n\n\n"}
{"title": "What Malaysia\u2019s latest policies mean for the tech scene", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\n\n\nThe Kuala Lumpur cityscape / Photo credit: Wikimedia Commons\n\n\n\n\nIt\u2019s that season again where there are a number of political maneuvers and public policies that will have some bearing on the Malaysian tech scene. Good or bad, you be the judge. But let\u2019s get to it:\n\n\nPoliticians appointed to tech-related agencies\n\n\nAt the time of writing, there are two agencies that have politicians \u2013 more precisely, members of parliament (MPs) \u2013 as their non-executive chairperson.\n\n\nThe Malaysian Digital Economy Corporation (MDEC) \nappointed\n Syed Ibrahim Syed Noh, an MP of the Ledang constituency, as chairperson, while state-owned tech financier Malaysia Debt Ventures \npicked\n Wong Chen, who\u2019s from the Subang constituency, to be on the chair.\n\n\nBoth men hail from Parti Keadilan Rakyat, the political party led by Prime Minister Anwar Ibrahim.\n\n\nFor what it\u2019s worth, Anwar\u2019s men also command the key portfolios when it comes to government tech and startup funding: finance (Anwar himself); science, innovation, and technology (Chang Lih Kang); economic affairs (Rafizi Ramli); and communications and digital (Fahmi Fadzil).\n\n\nIn Malaysia, despite the possible conflict of interest, there isn\u2019t an explicit clause that bars politicians from being on the board of government agencies. This is an old practice, anyway.\n\n\nWhy this is frowned upon is because of conflict and all the other negative things associated with such an appointment: patronage, corruption, and so forth.\n\n\nFurther, the country\u2019s anti-graft agency is also under the control of the prime minister. It isn\u2019t an independent body in the sense that it reports to the parliament.\n\n\nWhile these appointees are vetted by the anti-graft agency, the process has been more of a performative measure since it\u2019s not up for public scrutiny.\n\n\nYou could argue there are merits to appointing yes-men. Those politically affiliated with the prime minister, for instance, may have the ability to execute mandates or reforms.\n\n\nBut with very little oversight, who watches over the chiefs?\n\n\nI\u2019m concerned about one thing though: whether we can break away from the status quo.\n\n\nThe thing is, we need a hard reset. That means consolidating tech agencies, firing a few people in the process, closing a few of firms, and revamping this entire space.\n\n\nGovernment has an \noutsized influence\n on the tech and startup sector. While that may not be a bad thing, direct involvement isn\u2019t a good idea either.\n\n\nThese politicians, despite holding corporate jobs prior to joining politics, don\u2019t have the skills to run tech companies, let alone tech agencies.\n\n\nThey may have contacts and be able to gather opinions, but they haven\u2019t had that experience of bootstrapping a startup, raising funds, or even running a business.\n\n\nThis then brings us to the same old problem of tech agencies not doing much to move the country\u2019s startup needle. So what should we expect? The usual grandiose statements of birthing x number of unicorns or setting aside x amount of ringgit for \u201cinnovative\u201d and \u201chigh-growth startups.\u201d\n\n\nKuala Lumpur to be a regional startup hub\n\n\nEconomic Affairs Minister Rafizi \nsaid\n he wants to make Kuala Lumpur the country\u2019s startup hub.\n\n\nTo be sure, Kuala Lumpur is pretty large. What he probably meant was the downtown part and the nearby transport hub KL Sentral.\n\n\nThis is all well and good, but it goes back to what I \nwrote\n earlier about Cyberjaya being the next tech white elephant: It\u2019s another vanity project.\n\n\nKuala Lumpur is naturally the port of call for many tech firms simply because it\u2019s the most connected city in the country. That\u2019s why TikTok, for instance, houses thousands of employees here.\n\n\nThis isn\u2019t to say other cities or states don\u2019t come close. Penang is a good example of a well-connected state outside Kuala Lumpur, but the latter is still the nation\u2019s capital.\n\n\nBut we have already experimented with so many so-called hubs and we\u2019re not getting it right. Kuala Lumpur as a tech hub was former prime minister Najib Razak\u2019s pet project too.\n\n\nHe tried turning Bangsar South into a tech hub, but that only resulted in companies moving their operations and call centers there \u2013 not exactly \u201cinnovative.\u201d\n\n\nStartups need access to three things: funding, talent, and an ecosystem to test their products. Malaysia can easily meet all three but isn\u2019t because it has brain drain problems, a lack of young fund managers, and no laws that can keep pace with, well, innovation.\n\n\nA good example is how we go on about drone readiness but we aren\u2019t really \namending relevant laws\n for service providers to easily test their solutions.\n\n\nDigital nomads in a pinch\n\n\nFinally, if you\u2019re planning to get a digital nomad visa \u2013 aka DE Rantau \u2013 and hole up in Penang to work remotely, I have some news for you: The state has \nbanned\n Airbnb services or any short-term rentals for residential properties.\n\n\nBut the ban excludes six types of commercial properties: service apartments, \nSoHos, SoFos, SoVos\n, office suites, and duplex offices.\n\n\nStill, owners of these commercial units who plan to offer any kind of \nshort-term rental\n, which Penang defined as up to six months or 180 days, must secure approval from their respective joint management bodies or management corporations. These owners also need a 75% \u201cyes\u201d vote from other residents at the annual general meeting.\n\n\nPenang is one of the country\u2019s most urban states and a hub for big tech multinationals. Naturally, this state will be an alternative for those who want to work as a nomad but prefer somewhere other than Kuala Lumpur.\n\n\nHotel groups are \nthrilled\n with the state government\u2019s move to curb Airbnbs.\n\n\nAside from the usual industry lobbyists, there are good reasons why Airbnb guests aren\u2019t welcomed, e.g., they may not be on their best behavior. Also, most, if not all, who reside in a guarded condominium do so for the security and peace of mind.\n\n\nHow much will this policy be a turn-off for digital nomads? Anecdotally, from what I\u2019ve gathered after asking a number of digital nomads or hopefuls, this might be a dealbreaker.\n\n\nThe attractive feature of the DE Rantau program is that visa holders can move around the country during that one-year duration. The visa can be extended for another year, pending approvals.\n\n\nShort-term rentals were a draw because a nomad can spend a few months in Penang and then move to, say, Kuala Lumpur or another city within Peninsular Malaysia. Now that dream is up in the air."}
{"title": "Malaysia aims to improve agriculture sector through alternative financing", "body": "\n\nThe Kuala Lumpur cityscape / Photo credit: Wikimedia Commons\n\n\n\n\nSecurities Commission Malaysia\n chair \nAwang Adek Hussin\n\u00a0has reaffirmed the importance of applying fintech in agriculture to strengthen the country\u2019s food security.\n\n\nThe SC chairman delivered an opening address at the \nSCxSC Grow Fintech Conference\n held in Kuala Lumpur earlier today.\n\n\nHe noted that the agricultural sector\u2019s contribution to Malaysia\u2019s GDP declined from 29% in the 1970s to \n6.6% in 2022\n. This has encouraged the Malaysian government to accelerate its financing initiatives to support the sector.\n\n\n\u201cAlternative financing avenues such as \nequity crowdfunding\n (ECF) and peer-to-peer (P2P) financing allow investors with the right risk appetite to mobilize capital directly for agripreneurs,\u201d Awang Adek said. \u201cThis provides more options for younger and high-growth companies to access capital relevant to their business risk profiles.\u201d\n\n\nHe added that SC-registered ECF and P2P financing, launched in 2015, has supported over 7,000 micro, small, and medium enterprises (MSMEs), which have raised more than 4.4 billion ringgit (US$952 million).\u00a0However,\u00a0only 600 MSMEs were agriculture-related, signaling room for growth.\n\n\nIn 2019, the government created the \nMalaysia Co-Investment Fund\n (MyCIF) to co-invest in micro, small, and medium enterprises (MSMEs) through ECF and P2P financing platforms.\n\n\nTo help local businesses during the COVID-19 pandemic, MyCIF lowered the investment ratio to 1:2, meaning that MyCIF would invest 1 ringgit for every 2 ringgit raised from private investors.\n\n\nLast year, this scheme was specifically extended to agriculture industry players.\u00a0Awang Adek said that there has been a 4x increase in agribusinesses raising funds through ECF and P2P platforms since the change.\n\n\nSee also: \nThe key players in SEA\u2019s agritech space\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.62 ringgit."}
{"title": "Grab debuts new carpooling feature in Malaysia", "body": "\n\nPhoto credit: Shutterstock\n\n\n\n\nGrab\n has rolled out its carpooling service in Klang Valley, a region in Malaysia. Called JustSave, the feature will allow users to carpool with other passengers on a similar route.\n\n\nThe tech giant said that on average, users may save 20% on fares, while Grab drivers will receive payments from two bookings in one journey.\n\n\nOnly one passenger is allowed per booking, with a maximum of two bookings per ride. Grab will also lock in routes, so there will be no last-minute changes to affect the journey.\n\n\nCurrently, it is available only at peak times around KLCC, Mid Valley Bangsar, Sentral Brickfields, and One Utama.\n\n\nThe firm had previously launched similar carpooling services in Malaysia: \nGrabHitch\n in 2016 and \nGrabShare\n in 2017.\n\n\nHowever, Grab explained that JustSave will only confirm a booking if the request is matched. Otherwise, the passenger will get a discounted JustGrab ride, which is served by a car or a taxi.\n\n\nIn February, \nGrabFood Malaysia\n expanded its Saver Delivery option, in which users benefit from lower fares for grouped food delivery orders.\n\n\nSee also: \nGrab\u2019s GMV is stagnant. It needs to reverse that to break even"}
{"title": "Get a license or get out, Hong Kong tells crypto platforms ahead of June launch", "body": "Welcome to Token Issue! Delivered every Friday, this free newsletter breaks down the biggest stories in Asia\u2019s crypto scene and beyond. View past issues \nhere\n or \nsign up here\n to receive future newsletters.\n\n\nGood news everybody.\n\n\nDespite the fact that Hong Kong-based crypto exchange Hotbit ceased operating this week, the lights are flashing green for Hong Kong\u2019s crypto debut on June 1. In anticipation of that, the city\u2019s Securities and Futures Commission released its consultation report on crypto trading platforms on Tuesday, which includes new rules and regulations.\n\n\nMany are hoping this will be a watershed moment for the crypto industry, which hasn\u2019t had much to celebrate over the last year. It\u2019s been a rough ride through the bear market, with characters like FTX\u2019s \nSam Bankman-Fried\n and \nCaroline Ellison\n, Terraform Labs\u2019 \nDo Kwon\n, and Three Arrows Capital\u2019s \nSu Zhu and Kyle Davies\n making headlines for all the wrong reasons. The recent crypto crackdown by US SEC chairman \nGary Gensler\n certainly doesn\u2019t help matters.\n\n\nIn spite of all that, blockchain technology still has a future. That\u2019s the word from Tony Fadell, the former Apple executive known as the \u201cfather of the iPod,\u201d who gave \nTech in Asia\n an exclusive interview this week to talk about AI.\n\n\nSpoiler alert: That future may not be in decentralized finance. You can check out our Deep Dive to see where Fadell thinks blockchain is heading.\n\n\n\u2014 Scott\n\n\n\n\n\ud83e\udd3f THE DEEP DIVE\n\n\nAI to boost blockchain development\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe development of blockchain and AI technologies is not mutually exclusive, Tony Fadell tells \nTech in Asia.\n In an interview with news editor Collin Furtado, he says blockchain is \u201creal technology\u201d that isn\u2019t going to go away. With the rise of creative AI and deepfake tech, the need for tools that can provide verification will become even more critical, he says.\n\n\nFadell also talks about his experience building products for Southeast Asia, which stems from his time living in Indonesia.\n\n\n\n\n\ud83d\udc40 ALL EYES ON\u2026\n\n\nWhat everyone\u2019s talking about.\n\n\n1\ufe0f\u20e3 \nHong Kong issues new crypto report and rules\n\n\nNo air drops. No stablecoins (for now). And retail investors can only trade Bitcoin and Ether.\n\n\nThose were but a few of the many rules dropped by Hong Kong\u2019s Securities and Futures Commission (SFC) on Tuesday. But the bottom line remains the same: Platforms looking to trade virtual assets can apply for licenses to do so from June 1. The agency also said that any virtual asset service provider (VASP) that does not plan to get a license should \n\u201cproceed to an orderly closure of their business in Hong Kong.\u201d\n\n\nAlong with the rules on airdrops and stablecoins, the SFC also said tokens must have a 12-month track record before they will be allowed on exchanges. VASPs must also conduct due diligence on tokens before they are listed.\n\n\nAs for exchanges, the new regulations say they must maintain a minimum of HK$5,000,000 (US$640,000) in capital and disclose their platform\u2019s available and required liquid capital. They must also report their outstanding bank loans, advances, and credit facilities, as well as a profit and loss analysis, to the SFC at the end of each month.\n\n\nNot surprisingly, the paper covers capital requirements for exchanges as well as rules on anti-money laundering and counter-financing of terrorism.\n\n\nThese rules are the second major set of crypto regulations announced this year, following the \npassage of MiCA\n in April. And like the European rules, they are as yet incomplete. Specifically, stablecoins will not be allowed on exchanges until additional regulations are approved.\n\n\nThe new rules are the city\u2019s first steps in a broader plan to become a global virtual assets hub. Investors will also be watching Hong Kong for indications of China\u2019s willingness to engage with the wider crypto industry. Crypto is currently banned in mainland China.\n\n\n2\ufe0f\u20e3 \nHotbit\u2019s demise: no one wants to use CEXes anymore\n\n\nOn Monday, Hong Kong-based Hotbit became the latest crypto exchange to shut operations, although it did so without having to declare bankruptcy.\n\n\nInstead, the five-year-old exchange with over 5 million users cited poor operating conditions and the diminished role of centralized exchanges (CEXes). It noted that the collapse of FTX and the US crises have caused investors to pull their funds from CEXes, including Hotbit.\n\n\n\u201cThe Hotbit team believes that centralized exchanges are becoming increasingly cumbersome, with highly complex and interconnected businesses that are difficult to comply with, whether for compliance or decentralization, and are unlikely to meet long-term trends,\u201d it said in an online statement.\n\n\nThe company also noted that a \ncriminal investigation\n into a former team member in August 2022 hurt its business.\n\n\nHotbit users have until June 21 to withdraw their funds.\n\n\n3\ufe0f\u20e3 \nMalaysia says Huobi is unregistered, orders them out of the country\n\n\nWhile Hong Kong is getting ready to launch its crypto initiative, Malaysia is cracking down on what it sees as illegal crypto trading.\n\n\nThe Securities Commission Malaysia has ordered \nHuobi\n to disable its platform in the country. It has labeled the exchange\u2019s operations in Malaysia as \u201cillegal.\u201d\n\n\nAccording to \na public reprimand\n issued by the regulator against Huobi and its CEO Leon Li, the firm is operating without proper registration.\n\n\nThere has been no official comment from Huobi but as of Wednesday, most of the site\u2019s features were inaccessible from Malaysia.\n\n\nThe closure came just one day after Malaysian police in the state of Melaka \nbusted an alleged criminal syndicate\n offering \u201cnon-existent cryptocurrency investment schemes.\u201d\n\n\n\n\n\u2b50 TO THE STARS\n\n\nImpactful developments and projects in Web3.\n\n\n1\ufe0f\u20e3 \nSNARKy technology will be as big as blockchain, Ethereum founder says\n\n\nVitalik Buterin, the founder of Ethereum, believes zk-SNARKs are the next big thing.\n\n\n\u201cZk-SNARKs are going to be as important as Blockchains in the next 10 years,\u201d he said, according to a tweet from EDCON, which hosted the event he was speaking at.\n\n\nAccording to \nThe Motley Fool\n, zk-SNARK stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. It is a \u201czero-knowledge proof protocol\u201d that hides the information in cryptocurrency transactions.\n\n\nThe Fool\n, wisely, did not comment on whether zk-SNARKs would rule afoul of know-your-customer or anti-money laundering regulations.\n\n\n2\ufe0f\u20e3 \nDubai plans the Crypto Tower\n\n\nDubai is certainly known for its skyline and unusual architecture, which includes everything from the \nBurj Al Arab\n, the \nBurj Khalifa\n, and the \nMuseum of the Future\n.\n\n\nThe emirate will soon be home to the world\u2019s first \u201cBitcoin tower.\u201d Its developer says the 40-story, art deco-styled building will be located in Jumeirah Lake Towers on the southern side of the city. It will combine the \u201cdigital and physical world in a community-centric, vertical structure\u201d and include residential, commercial, and retail spaces. There will even be an \u201cNFT gallery.\u201d\n\n\nSince this is Dubai, the tower will also have an exotic supercar dealership and a precious metal storage vault.\n\n\nAccording to the developer\u2019s website, the tower will be \u201centirely built using a smart contract.\u201d Investors can purchase NFTs that represent one square foot of the building\u2019s 150,000 square feet area. NFT holders will receive a proportional share of the building\u2019s quarterly revenues and can also take part in the building\u2019s DAO.\n\n\nThe tower is designed by Salvatore Leggiero and backed by Metaverse Investments.\n\n\n\n\nMORE TO CHEW ON\n\n\nStuff that\u2019s good to know.\n\n\n1\ufe0f\u20e3 \nSpouses be warned: divorce attorneys increasingly looking for hidden virtual assets\n\n\nHunting for hidden crypto assets isn\u2019t just for federal prosecutors anymore. A report from \nCNBC\n shows that attorneys are becoming more crypto-aware and asking about digital wallets. If the spouse doesn\u2019t admit to having them, attorneys are turning to forensic accountants to hunt them down. In 2021, one divorce attorney found 12 bitcoins hidden in a wallet by the husband of a New York housewife. The stash was valued at over US$500,000 back then.\n\n\n2\ufe0f\u20e3 \nGemini working to avoid default by Genesis on $630m loan\n\n\nCrypto exchange Gemini says it is working with Digital Currency Group (DCG), the parent company of Genesis Global Capital, to avoid a default by Genesis on a US$630 million loan.\n\n\nGemini says the loan was due last week. It is currently working with other creditors and is considering whether to offer a forbearance, which would give Genesis more time to pay. The forbearance will be considered only if DCG engages in good faith negotiations, Gemini said.\n\n\nA second suit, this one by bankrupt exchange FTX, is complicating the case. The firm is seeking about US$3.9 billion in cash and cryptocurrencies from Genesis.\n\n\n3\ufe0f\u20e3 \nBiden says he won\u2019t protect crypto traders in debt negotiations\n\n\nOn Sunday, the final day of the G7 summit, US President Joe Biden spoke about his current battle with congressional Republicans over lifting the country\u2019s debt ceiling. Unless Republicans and Democrats reach a deal that allows the government to borrow more money, the US could default on its debt in early June.\n\n\n\u201cI\u2019m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistants at risk,\u201d Biden said.\n\n\nThe deal that the president was referring to, according to \nThe Washington Post\n, is a loophole called \ntax-loss harvesting\n. It is a strategy where investors sell an asset at a loss and then quickly repurchase it. Democrats are proposing to close the loophole but have faced rejection from Republicans.\n\n\n4\ufe0f\u20e3 \nDo Kwon heads back to jail after bail revoked\n\n\nA court in Montenegro revoked the bail of former Terraform Labs CEO Do Kwon on Wednesday. The judge agreed with prosecutors that the bond worth 800,000 euros (US$859,000) posted by Kwon was not enough to ensure he and Chang-joon Han, Terraform Labs\u2019 former finance officer, would not \u201crun away once they are released from detention,\u201d \nReuters\n reported.\n\n\nKwon is wanted in South Korea and the US for his involvement in the collapse of the TerraUSD stablecoin. He will remain in pre-trial detention. He and Han were arrested when they allegedly tried to fly to Dubai using forged documents.\n\n\n\n\nThat\u2019s all for this issue \u2013 we hope you liked it. Do also check out previous editions of the newsletter \nhere\n."}
{"title": "How the maker of movie franchise Ah Boys to Men is hopping onto Web3", "body": "Mm2 Entertainment\n, one of Asia\u2019s major film production companies, made a decisive entry into the Web3 space in 2021 with the launch of \nMetaviva\n, then an \nNFT\n marketplace. Amid the height of the crypto craze, Metaviva had grand plans to capitalize on it.\n\n\n\n\nMetaviva head Darren Ho / Photo credit: Metaviva\n\n\n\n\nHowever, the firm went back to the drawing board when consumers ended up having to navigate through a tedious 17-step process to use the platform.\n\n\nMm2 Entertainment, which is listed on the Singapore bourse, offers a wide range of services in the media and entertainment space, including film production and distribution, content licensing, and event management.\n\n\nOne of Mm2 Entertainment\u2019s notable and widely recognized properties is the \nAh Boys to Men\n movie franchise. The company has also been involved in the production and distribution of other titles.\n\n\nThe SGX-listed firm\u2019s \nrevenue grew 50%\n to US$113 million in FY 22 on the back of the Covid-19 pandemic recovery in Singapore and Malaysia. In the same period, losses also fell by nearly 60% to US$35.8 million.\n\n\nMm2 Entertainment established Metaviva as a subsidiary to gain deeper insights from a younger and more digitally savvy audience and generate additional revenue streams.\n\n\nInitially, Metaviva offered services related to the creation, buying, and selling of NFTs. The platform also included a marketplace where creators could mint and list their digital assets like artwork, collectibles, and other forms of digital media.\n\n\nHowever, users raised concerns about the complexity of creating NFTs and the volatility of cryptocurrencies. They desired a more user-friendly experience and the option to make purchases using traditional payment methods like credit cards.\n\n\nUsers also emphasized the importance of receiving tangible benefits or rewards when buying NFTs.\n\n\nThis led Metaviva to focus on bridging the existing gap between Web2 and Web3 users.\n\n\n\u201cBefore we even think about reaching the moon, our rocket must be able to carry people and those people must know how to navigate the journey,\u201d \nDarren Ho\n, Mm2 Entertainment\u2019s head of digital and Web3 initiatives, tells \nTech In Asia\n.\n\n\nFrom ground zero\n\n\nMetaviva\u2019s three-pronged approach to solve the Web3-bridging problem involves providing a user-friendly interface, integrating mainstream payment options, and forging relevant partnerships.\n\n\nThe company introduced the Metaviva (MV) Pass, a Web3 loyalty program for the media and entertainment space.\n\n\n\n\nPhoto credit: Metaviva\n\n\n\n\nIt provides users with exclusive benefits and access to premium features within the Metaviva platform.\n\n\nBy subscribing to the MV Pass, users unlock a range of perks that create synergies with Mm2 Entertainment\u2019s vast content portfolio. Exclusive access to premium content, early previews of new releases, invitations to events, as well as discounts on movies and related merchandise are some of the rewards users can enjoy.\n\n\nThe pass aims to eliminate multiple registration steps for users \u2013 they just need to follow three steps: downloading the app, claiming their first NFT, and creating a wallet.\n\n\nUsers can also link their wallet to their email address, so there\u2019s no need to go through the traditional process of setting up a separate wallet.\n\n\nTo address the concerns of Web2 users who were hesitant to adopt cryptocurrencies, the MV Pass allows traditional payment methods such as credit cards.\n\n\nAdditionally, Metaviva is working on integrating their ecosystem with that of Web3 gaming firm The Sandbox to facilitate the flow of information and collaboration between the two platforms.\n\n\nThe building blocks\n\n\nWhile Metaviva was initially launched as an NFT marketplace, MM2 Entertainment saw the potential to generate additional revenue by minting and selling NFTs based on its own intellectual property and that of its partners.\n\n\n\n\nPhoto credit: 123RF\n\n\n\n\nNFTs served as a digital marketing tool \u2013 similar to physical tokens given away by movie promoters \u2013 to boost ticket sales and engage the community.\n\n\nBlockchain also offers the advantage of digitally connecting users to the original intellectual property, hence fostering cross-promotion and community building. This forms the basis of Metaviva\u2019s loyalty program.\n\n\nAlso, by using a shared blockchain infrastructure, Metaviva can easily connect with other companies without needing to build an interoperable system from scratch.\n\n\nThe company chose Polygon as its blockchain solution after weighing its affordability and stability.\n\n\nLanding a slam dunk\n\n\nMetaviva has also introduced a \ncrowdfunding launchpad\n, which provides creators, athletes, and artists with the tools and resources to showcase their talents, raise funds, and connect with a supportive community.\n\n\nThrough the launchpad, individuals can use digital collectibles, NFTs, and other blockchain-based assets to incentivize contributions.\n\n\n\n\nPhoto credit: Metaviva\n\n\n\n\nBy owning these NFTs, supporters can gain exclusive access to content, early releases, limited edition merchandise, or unique experiences tied to the project they\u2019re backing.\n\n\nRecently, Metaviva collaborated with an athlete\u2019s initiative to raise US$1 million for peers participating in major sports events.\n\n\nThe project, which is still ongoing, raised US$1,170 within the first two days.\n\n\nEyeing to reach 50,000 engaged users within the next year, Metaviva aims to generate interest in the media and entertainment industry, particularly in Singapore and Asia.\n\n\nLights, Camera, Films!\n\n\nOn a related note, Metaviva is looking into decentralizing the storage of film assets.\n\n\nThe company aims to use blockchain networks to aid in storing and distributing movies, focusing on \ndigital cinema packages (DCPs)\n, the standard delivery format for screenings.\n\n\n\n\nPhoto credit: Metaviva\n\n\n\n\nIt\u2019s assessing the feasibility of doing so through partnerships with blockchain storage solutions.\n\n\nConventional methods of storing film footage and related assets are known to be costly and resource-intensive, requiring substantial physical storage space and infrastructure, Ho says.\n\n\nThe company hopes that decentralized storage will not only protect media files from tampering, but also provide a more efficient and scalable content distribution method, reducing reliance on centralized servers or content delivery networks.\n\n\nMetaviva envisions a future where blockchain networks can efficiently handle and store large volumes of data, resulting in cost savings and improved security.\n\n\nWhile the idea of storing an entire movie in a decentralized way appears \u201cambitious\u201d at this stage, Metaviva plans to take a phased approach, starting with short-form content such as 15- to 20-second clips.\n\n\nApart from archiving and distribution, the firm\u2019s also looking to incorporate smart contracts to automate royalty management, safeguard copyright, and ensure fair compensation for creators.\n\n\nAnother goal of Metaviva\u2019s is to become a concierge service for entertainment, and the company is exploring the implementation of AI and chatbot capabilities for that.\n\n\nUsers will be able to not only ask questions and receive personalized recommendations about films and other types of content, but also have a whole trip or concert experience planned by the AI."}
{"title": "This startup founder is seeing success in Ipoh", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles.\n\n\nMost discussions around startup hubs in Malaysia revolve around two areas: the Klang Valley and Penang. Rightfully so \u2013 they are the most developed parts of Peninsular Malaysia.\n\n\n\n\nPTT Outdoor founder Mike Chu / Photo credit: Mike Chu\n\n\n\n\nThe capital city, Kuala Lumpur, is in the Klang Valley while Penang has long been touted as the \u201cSilicon Valley of the East.\u201d So these states naturally steal the spotlight.\n\n\nBut there are still some who go against the grain: founders who establish startups in places outside Malaysia\u2019s urban bubble, such as in Ipoh.\n\n\nSituated 200 kilometers from Kuala Lumpur, Ipoh is a city in the state of Perak. It\u2019s located in between Kuala Lumpur and Penang and is served by the country\u2019s major highway, the North-South Expressway.\n\n\nThere\u2019s a punctual intercity rail service you can take from Kuala Lumpur to Ipoh and vice versa. It also has an airport with direct flights to other Malaysian cities as well as Singapore.\n\n\nIf you\u2019re still scratching your head over the location, this is the hometown of Oscar winner Michelle Yeoh. She still has a house there.\n\n\nWhen it comes to the tech scene, however, there\u2019s nothing much brewing in Ipoh \u2013 or at least that\u2019s what the headlines tell us. Success stories are few and far between.\n\n\nThe latest was in 2022 when German conglomerate Siemens \nacquired\n Radica Software, a little-known engineering startup, for an undisclosed sum. Radica still operates out of Ipoh.\n\n\nBut after some digging, I found 33-year-old Mike Chu Chin Hong, an Ipoh native and the founder of \nPTT Outdoor\n.\n\n\nAs its name suggests, PTT is an ecommerce platform that offers a wide spectrum of products related to outdoor activities. These range from hiking sticks and sleeping bags to camps and hammocks.\n\n\nPTT makes 3.5 million ringgit (US$762,000) in yearly revenue. But what differentiates it from other companies or resellers, at least according to Chu, is that it has its own flagship brand, Tahan, named after Peninsular Malaysia\u2019s tallest mountain.\n\n\nWhat drew me to Chu, however, is simply the curiosity of running a tech-enabled company outside Kuala Lumpur.\n\n\nOur interview, edited for brevity and clarity, as follows:\n\n\nQ: Tell us a bit about PTT Outdoor and why you started the company.\n\n\nI\u2019m an avid hiker and previously I had trouble finding equipment suitable for Malaysian terrain. This was seven to eight years back. I also needed equipment that I could use in a tropical climate.\n\n\nTypically there were outdoor gear for other climates and they weren\u2019t suitable for ours and they were much more expensive. So I set out to build a company that could provide something affordable and made for the weather in this region.\n\n\nWe develop products within that range and we try to make them as high quality as possible.\n\n\nI initially ran PTT as a Facebook group in 2016 and quickly grew the company by setting up a website. Today we have about 15 staff and a warehouse and physical office.\n\n\nI bootstrapped during the initial stages and lived off my savings, which was then around 8,000 ringgit (US$1,500). But due to low operating costs as I was working from home, I quickly turned a profit.\n\n\nQ: Why set up in Ipoh?\n\n\nIt was on a personal and business level. In the case of the former, this is my hometown and my parents are here, so I don\u2019t want to be too far from them. That might sound selfish but it is what it is.\n\n\nOn the business side of things, the cost is much cheaper here. As a startup, I had to consider various overheads such as office rental. As an ecommerce platform, I have also rented warehouses for storage.\n\n\nThese things stack up really fast, more so in bigger cities. In some of the more urbanized areas, you\u2019ll get a much smaller office at two or three times the price, depending on your location. So it doesn\u2019t make financial sense.\n\n\nI run an ecommerce company so I don\u2019t have to worry much about location.\n\n\nThat said, I don\u2019t have a number of things such as \u201cbetter talent\u201d or \u201cbetter network.\u201d There are adjustments and sacrifices you need to make when you establish a startup in places like Ipoh. I don\u2019t get the fancy Bangsar South address but one on some unknown street. But no one cares, and I\u2019m not building a real estate company.\n\n\nQ: Infrastructure wise, Ipoh isn\u2019t Penang or Kuala Lumpur\u2026\n\n\nWhen I first started, it really sucked. During the first five years of our business\u2019 life, we didn\u2019t have any broadband lines.\n\n\nNow, infrastructure is much better. You get high-speed broadband throughout Ipoh. We have numerous logistics hubs so all I need to do is drive for five minutes, drop the parcels at the pickup point, and return to the office.\n\n\nQ: How did you get connected to the wider startup community?\n\n\nI remember asking Thomas Yip of Radica Software on how to run a tech-enabled business. After a few sessions, he recommended I join Cradle\u2019s Coach & Grow program.\n\n\n(Cradle\u2019s Coach & Grow program is organized by the tech agency together with Proficeo, a Kuala Lumpur-based consultancy. The program, over a period of 12 months, consists of classes as well as mentorship sessions.)\n\n\nQ: But that program is in Kuala Lumpur\u2026\n\n\nYes, but I was very committed. So on days where I had to attend sessions, I took the first train to Kuala Lumpur, which was at 5 a.m. I\u2019d reach the capital at 7:30 a.m. and then it\u2019s off to the program. I would be done by 5 p.m. and then it\u2019s back to Ipoh, as I wanted to save on hotel costs as well.\n\n\nThis was my routine for the entire program. But I\u2019m glad I committed to the program. That\u2019s how I met my business partner, Jason Khoo, who was a mentor there.\n\n\nQ: When did you decide to get a partner onboard?\n\n\nA: I brought on Jason after running solo for the first five years. He handles the numbers and backend operations while I focus on the front side of things such as sales, marketing, and product development.\n\n\nJason\u2019s from Kuala Lumpur and I often make trips to the capital to see him for discussions. He wasn\u2019t my assigned mentor at the Cradle coaching group program but we connected.\n\n\nHe also loves the outdoors. So we kept in touch for about four years before I finally suggested to him that he come onboard.\n\n\nQ: Is getting talent to run the business a problem?\n\n\nThere are young people returning to Ipoh but not in droves. Those who return do so to spend time with parents. Ipoh is still a \u201cretirement\u201d city where people come to lead a more quiet life.\n\n\nThat said, at PTT, we have flexibility in terms of our working culture with hybrid working arrangements. We offer a substantial salary. I wouldn\u2019t say higher than Kuala Lumpur but relatively better than Ipoh.\n\n\nQ: You scaled and failed. What happened and what are the lessons learned?\n\n\nThis was pre-pandemic, I think four years ago. We became a tad overconfident and expanded to the Philippines because we wagered that even though they spoke Tagalog, they also spoke English, and their climate was somewhat similar to Malaysia\u2019s.\n\n\nThe Philippines also had been charting a good GDP and they had a population larger than ours.\n\n\nWe set up our Philippine website and Facebook page. We even had sales but weren\u2019t enough to cover costs.\n\n\nBut when we went in, we discovered a number of problems such as fragmented payment facilities. Many customers who ordered from us didn\u2019t have credit cards or were unable to do bank transfers.\n\n\nBack then they preferred cash on delivery (COD), but the issue with that is how their addresses can be difficult to locate.\n\n\nAnd when they would choose COD, the problem back then was that you get charged for the parcel being sent there and you get charged for the parcel being sent back to you.\n\n\nSo we had cases where the recipients couldn\u2019t receive the item for some reason and not only did we not get the payment, but we were also charged twice.\n\n\nTo be sure, I\u2019m still looking at the Philippines. But this time, as for lessons learned, I\u2019d do some things differently.\n\n\nAside from identifying payment processes and logistics partners, the major thing I\u2019d do is build a local team. This is, perhaps, the most important lesson.\n\n\nWe did not understand the local market. We thought their Christmas was the same as ours, but it clearly wasn\u2019t.\n\n\nQ: What moats does an upstart like PTT have against bigger ecommerce platforms or even resellers on Lazada or Shopee?\n\n\nThe first is our own product development, especially under the Tahan brand.\n\n\nWe have done research and made substantial tweaks and changes to our products to differentiate them from what you find elsewhere. These are tailored to what our customers want, which we get from all the data we\u2019ve collected through the years of selling outdoor gear.\n\n\nNext is intellectual property such as patenting our products, but this one is more long-term given the work and resources involved.\n\n\nFurther down the road, we are trying to come up with AI models to predict, for example, when a product needs restocking or what newer offering to put out. We have the data, especially consumer habits and preferences, since we\u2019ve been doing ecommerce for some time.\n\n\nIt\u2019s not a perfect system yet but we are working on it.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.58 ringgit."}
{"title": "SG, MY fuel PropertyGuru\u2019s 16% revenue bump in Q1", "body": "\n\nPropertyGuru\u2019s listing in NYSE / Photo credit: NYSE\n\n\n\n\nProptech firm \nPropertyGuru\n reported a 16% increase in revenue for the first quarter of 2023 on the back of strong performances from its Malaysia and Singapore marketplaces.\n\n\nIt registered US$24.2 million in revenue for Q1, up from about US$21 million from a year ago. Its core market of Singapore contributed almost US$14 million of the amount, with Malaysia chipping in roughly US$5 million. Both markets showed year-on-year growth of around 25%.\n\n\nMeanwhile, PropertyGuru\u2019s performance in Vietnam continued to cool in the quarter, with segment revenues slumping 34.2% year on year to US$2.5 million. Joe Dische, CFO of PropertyGuru, attributed this to the local government\u2019s attempt to temper the \nreal estate market woes\n in Vietnam by placing \nmonetary restrictions\n last year.\n\n\n\u201cGiven macro uncertainty, we continue to keep a close eye on costs, especially with respect to discretionary spending,\u201d he added.\n\n\nThe company logged US$7.6 million in net losses for the quarter, compared to US$89.4 million in the same year-ago period. However, the 2022 number included US$78 million in share listing expenses and US$13.3 million in legal and professional expenses for its IPO. Adjusted earnings landed at about US$160,000, down from about US$410,000 in Q1 2022.\n\n\nSee also: \nSEA\u2019s listed tech majors in 11 charts: Grab, Bukalapak extend their runway\n\n\nPropertyGuru also reaffirmed its full-year 2023 outlook for revenue of US$118.8 million to US$126.2 million and adjusted earnings of US$8.2 million to US$11.1 million."}
{"title": "Malaysia orders Huobi to stop operations due to compliance concerns", "body": "\n\nPhoto credit: Shutterstock\n\n\n\n\nThe Securities Commission Malaysia (SC) has ordered \nHuobi\n to disable its website and mobile app in the country, deeming the global crypto firm\u2019s operations \u201cillegal.\u201d\n\n\nThe regulator issued \na public reprimand\n against Huobi and its CEO Leon Li on Monday, saying that the digital asset exchange is operating without local registration.\n\n\nHuobi must also stop \u201ccirculating, publishing, or sending any advertisements, whether in email or on social media platforms, to Malaysian investors.\u201d\n\n\nLocal users are urged to cease trading through the platform, withdraw all their investments, and close their accounts.\n\n\nLi founded Huobi in 2013. The company has offices in Singapore, Hong Kong, Japan, South Korea, and the UK, according to \nCrunchbase\n.\n\n\nIn September 2021, Huobi announced that it would \nleave\n mainland China following a government ban. In July 2022, it was set to \nhalt operations\n in Thailand after its license was revoked by the regulator.\n\n\nEarlier this year, the company planned to \nlay off\n 20% of its employees as part of a restructuring process. At the same time, it set a target to reach 100 million users by the end of 2023.\n\n\nSee also: \nDoes Huobi have a ticking time bomb on its hands?"}
{"title": "Malaysian proptech firm bolsters local presence with merger", "body": "\n\nHousing development in Seri Tanjung Pinang / Photo credit: Shutterstock\n\n\n\n\nLiveIn\n, a proptech firm headquartered in Malaysia, has acquired local firm \nKT Management\n, solidifying its foothold in the country\u2019s accommodation rental market.\n\n\nBoth companies provide long-stay rental homes, specifically to young people in Malaysia, with KT Management operating in the northern region. LiveIn is also available in Thailand.\n\n\nWith the merger, KT Management\u2019s tenants, which number in the thousands, will benefit from LiveIn\u2019s flexible community-living solutions and online-to-offline experience, according to a statement.\n\n\nKeek Wen Khai\n, co-founder and CEO of LiveIn, said the company is \u201caggressively pursuing acquisition opportunities\u201d in Malaysia and around the region.\n\n\nLiveIn pivoted from a marketplace for property owners to a long-stay rental solutions provider in 2018. It said it has raised US$4.5 million so far from \ninvestors\n such as Jungle Ventures and Wavemaker Partners.\n\n\n\u201cThe market conditions in Southeast Asia are perfect for LiveIn with its young people population, massive numbers of young professionals moving to the cities, and the huge property overhang,\u201d Khai added.\n\n\nSee also: \nSpeedhome CEO on moonlighting and riding out Covid-19"}
{"title": "The regulatory hurdles holding back Malaysia\u2019s drone industry", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles.\n\n\n\n\nPic credit: Wikimedia Commons\n\n\n\n\nLet\u2019s talk about drones. The major industry index that always sparks discussions is the \nDrone Readiness Index\n.\n\n\nMalaysia seems to do well here. This year, we\u2019ve moved up eight spots to no. 21 in the rankings. This puts us among the best \u2013 or if not the best \u2013 in Southeast Asia.\n\n\nMalaysia also has two local drone service providers \u2013 Aerodyne and Meraque \u2013 globally ranking first and 18th, respectively.\n\n\nThe index is \ndeveloped\n by consultancy Drone Industry Insights (DII) and compares various countries\u2019 drone regulations. DII uses six parameters to assess both countries and drone operators: applicability, human resources, airspace integration, operational limitations, administrative infrastructure, and social acceptance.\n\n\nAerodyne, in particular, has been making news for its rapid growth, fueled primarily by \nmergers and acquisitions\n. It\u2019s also looking to \nlist\n soon, though it has not mentioned where.\n\n\nI\u2019m going to list some other positives for drone companies in Malaysia as well before I tackle some of the key problems.\n\n\nThe country is geographically diverse with different terrain. We have large \u201cold economy\u201d sectors such as plantations and telco services that need drone services.\n\n\nBut whether the take-up is encouraging remains anecdotal. Depending on who you talk to, some of the big players may say that drones help while others scoff at the tech.\n\n\nWe are also home to four drone sandboxes and there are some funding options for drone service providers. A large company like Aerodyne has also been a beneficiary of government funding.\n\n\nAmong the government agencies that\u2019s really selling the drone agenda is the Malaysian Research Accelerator for Technology & Innovation (Mranti), which hosts one of the four sandboxes.\n\n\nIts CEO, Dzuleira Abu Bakar, as well as its other officials have been on a media blitz, appearing on \nradio stations\n and \nnews portals\n. All well and good.\n\n\nSame ol\u2019 tune\n\n\nBut we\u2019ve been droning about this for years. In fact, we are still short of real discussions if we are going to move the needle. There are two problems.\n\n\nFirstly, the hurdles. Service providers need to get through four regulatory hoops for permits: the Civil Aviation Authority of Malaysia (CAAM) to fly drones; the Malaysia Communications and Multimedia Commission for checks to control signals; SIRIM for device readiness and checks; and the Department of Survey and Mapping Malaysia for permissions to chart locations.\n\n\nWhile these are the major government agencies overlooking the drone industry, they\u2019re not the only ones that service providers have to deal with. They also need to get approval from the Chief Government Security Office to fly in designated no-fly zones as well as from local councils to operate their drones in certain areas.\n\n\nYou want to be ambitious by moving upstream? That\u2019s what India\u2019s Garuda Aerospace wants to do with its drone factory, and it wants to \nbuild\n that in Malaysia.\n\n\nTo execute this, Garuda will need further approvals from a different set of agencies at both the federal and state level, such as the Malaysian Investment Development Authority.\n\n\nWhile there have been some improvements to bring all these agencies and authorities together \u2013 the country launched a \ndrone roadmap\n last year \u2013 service operators will still need to go through the necessary hoops.\n\n\nThere isn\u2019t a unified body to deal with drone approvals or investments. There is also bureaucracy to consider, which means a long approval period.\n\n\nWorth mentioning are the sandboxes: While they are safe spaces to test drones, they are nowhere close to providing real-world simulations.\n\n\nSecondly, the slow pace of legal reforms. Most of the countries that rank high on the Drone Readiness Index, such as Taiwan and South Korea, are \nknown\n for being able to quickly develop airworthiness requirements for high-risk drone operations.\n\n\nRules, rules, and more rules\n\n\nIn Malaysia, drone operators currently need special permission to fly higher than 120 meters, across no-fly zones, and above crowds or private premises. They also need approval to carry heavy payloads.\n\n\nThere are real concerns especially with privacy and safety. But due to slow approvals, many drone service providers are stuck if they want to, for example, test unmanned deliveries or do maintenance work for telco towers.\n\n\nAh, before I forget, if we\u2019re talking about amending laws or drafting new ones, then we need to involve Parliament and the Attorney-General\u2019s Chambers, too. So much fun.\n\n\n\n\nAerodyne is among Malaysia\u2019s best drone services export. / Pic credit: Aerodyne\n\n\n\n\nTo be sure, Aerodyne and other drone companies have been testing out features since 2014. So this isn\u2019t a new phenomenon. And it\u2019s funny that we\u2019re still talking about the slow pace of reforms.\n\n\nWould there be improvements? CAAM is \npromising\n to shorten the approval time for operators to run each drone. Currently it takes two weeks and \u2013 I kid you not \u2013 operators need to submit a written application by downloading the form online.\n\n\nThe agency will also launch an improved application system this year where it\u2019s all done on an app, with approvals done in a day.\n\n\nEconomic Affairs Minister Rafizi Ramli \nsaid\n the government would fast-track expatriate visa applications from the current three months to just five days, which would enable overseas drone companies and their employees to set up shop here quicker.\n\n\nBut, like all new aspirations, only time will tell how easy it will be for foreign operators to enter Malaysia.\n\n\nOur neighbors are also catching up. Thailand, for example, is \nusing\n drones for smart farm projects. Indonesia \nleveraged\n drone technology to deliver Covid-19 vaccines in 2021.\n\n\nWith so much happening around us, it\u2019s inevitable that if Malaysian drone operators were to make any impact, the domestic market will be small and progress slow. So their best bet is to compete globally."}
{"title": "Trading platform Moomoo rolls out in Malaysia", "body": "\n\nMoomoo\u2019s mascot / Photo credit: Futu Holdings\n\n\n\n\nHong Kong-based \nFutu Holdings\n has rolled out its investment platform Moomoo in Malaysia, marking its second launch in Southeast Asia.\n\n\nThe company\u2019s wholly-owned Malaysian subsidiary has recently won an approval-in-principle from the Securities Commission Malaysia to operate in the country, it said in a statement.\n\n\nMoomoo\u2019s platform enables users to invest in stocks, exchange-traded funds, and American depositary receipts, among other assets. It also allows clients to trade shares of companies in the US, Hong Kong, and China under a single account.\n\n\nIn addition to Malaysia, Moomoo is available in the US, Singapore, and Australia. The company has onboarded over 20 million users globally since it was founded in 2018.\n\n\nMalaysia is set to be a \u201ccatalyst for growth\u201d for Moomoo, given the country\u2019s business-friendliness, high digital literacy, and educated talent pool, noted Robin Xu, senior partner and senior vice president of Futu Holdings.\n\n\nSee also: \nCan Indonesia\u2019s new capital Nusantara rival the fintech hubs of SG and HK?\n\n\n\u201cFollowing our success in Singapore and other Asia-Pacific markets, we are well-equipped to bring our international know-hows in transforming the digitized investment landscape in Malaysia,\u201d he added.\n\n\nMoomoo \nlaunched in Singapore\n in 2021 and is regulated and licensed by the Monetary Authority of\u00a0\nSingapore."}
{"title": "No cash, no problem: Cross-border payments in SEA take off", "body": "\n\nCrossing a border has long meant going through the finicky process of getting ahold of some local currency. But that may no longer be the case for many of us soon.\n\n\nAs this graphic from the \nBank for International Settlements\n shows, countries across Asia are working to connect their payment systems. Malaysia, for instance, already has live payment links with both Thailand and Indonesia.\n\n\nThe link with Indonesia, which was recently \nannounced\n, uses QR codes to facilitate payments. Currently, the payment link allows people traveling between the two countries to pay online merchants and for goods in physical stores.\n\n\nThe graphic above was used in a \nwebinar\n on \nProject Nexus\n, which aims to boost cross-border commerce. Financial authorities in Malaysia, Thailand, Indonesia, the Philippines, and Singapore are part of the project, so seamless payments could be rolled out further across the region in the near future."}
{"title": "Signature Market delays domestic IPO after profit decline", "body": "\n\nSignature Market\u2019s first offline store in IOI City Mall. /Photo credit: IOI City Mall\u2019s Facebook\n\n\n\n\nSignature Market\n, a Kuala Lumpur-based ecommerce platform, has postponed its plan to go public locally due to a \u201cdecline in profitability,\u201d CEO and co-founder \nEdwin Wang\n confirmed to \nTech in Asia\n.\n\n\nFounded as Signature Snack in 2014, the startup wants to make healthier food products more accessible and affordable in Malaysia and the rest of Southeast Asia.\n\n\nAccording to filings with the Companies Commission of Malaysia, Signature Market posted a net profit of 4.2 million ringgit (US$929,000) in 2020, and its after-tax profit for 2021 was 10.4 million ringgit (US$2.3 million). The firm has yet to file its latest financials as its fiscal year ends on June 30.\n\n\nHowever, Wang said that profit has been dropping in the past two years due to consumers shifting back to offline shopping. As such, the startup now focuses on growing its physical stores.\n\n\nYesterday, Signature Market opened its first mobile-enabled shop in IOI City Mall, a major shopping center in Putrajaya, the country\u2019s administrative and judicial capital. Customers can purchase snacks from the company\u2019s online platform and collect them at the store.\n\n\nSignature Market \nlast raised\n US$1 million in a Series A round in 2019 from Axiata Digital Innovation Fund and RHL Ventures.\n\n\nWang \ntold \nbusiness publication \nThe Edge\n in 2021 that his company expected to list on Bursa Malaysia\u2019s ACE Market the following year and would seek a transfer to the bourse\u2019s Main Market in 2023.\n\n\nSee also:\u00a0\nTouch \u2018n Go loses its monopoly in Malaysia. What now?\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.52 ringgit."}
{"title": "Tracking active LPs in SEA\u2019s, India\u2019s startup ecosystems", "body": "\n\nHere are some caveats about the data before we dive in:\n\n\n\n\nThe data was compiled from \nTech in Asia\n\u2019s database, \nAngel Match\n, \nYNOS\n, and the \nTeamWave Blog\n.\n\n\nThe information presented mostly covers the past three years.\n\n\nThe data primarily focuses on startup funding in Southeast Asia.\n\n\nThe list is indicative, not exhaustive.\n\n\n\n\nSoutheast Asia and India \nhave become hotspots for tech startup funding\n. Last year alone, Southeast Asia saw US$30 billion funneled into funds focused on the region, while India-centric funds banked US$18.3 billion.\n\n\nVenture capital may be synonymous with startup investments, but the funding landscape is filled with many more entities: family offices, sovereign wealth funds, angel investors, and more. VC firms and startups rely on a diversity of \nlimited partners\n to keep their operations running.\n\n\nSee also: \nVC funds tracker: Four VCs raise $320m for Asian startups\n\n\nTech in Asia\n\u2019s data shows that the most active investors in the region are from Singapore, India, the US, and Indonesia.\n\n\n\n\nSingapore\u2019s domination on the investor list is no surprise. With a high \nconcentration of millionaires\n and \nfounders\n, generous incentives from the government \nthrough support schemes\n, and a sharp \nfocus on innovation\n, the country has become a hotbed for startups within and outside of the region.\n\n\nOne of Singapore\u2019s government initiatives pushing to attract financiers is the \nGlobal Investor Programme\n, which helps investors become permanent residents of the city-state. With a large volume of high-net-worth investors residing in the country, a wealth of Singapore-based individual investors contribute to the regional startup ecosystem, our data shows.\n\n\n\n\nIndia, in second place, also has a large number of individual investors.\n\n\nMuch of this is attributed to the maturation of the country\u2019s startup ecosystem, which is home to roughly \n50,000 startups\n. A barrage of investors \ncoming from backgrounds beyond tech entrepreneurship\n and the perception that startup investing is an alternative to buying stocks on the foreign exchange are also other reasons.\n\n\nIn the US, investors have also been looking at \nSoutheast Asia\n and \nIndia\n, as recent meltdowns \u2013 such as the collapse of Silicon Valley Bank \u2013 highlight \nthe importance of diversifying investments across geographies\n.\n\n\nThese regions are relatively less mature than Europe or the US\u2019 local startup ecosystem, \nbut there is\n faster digital adoption, a younger population, and more space for innovation.\n\n\n\n\nGlobally, the \nnumber of unique investors\n participating in venture funding has also increased greatly within the past few years.\n\n\nLast year, the total number of \ncorporate investors\n saw a significant increase, though the number of venture capital firms investing dropped.\n\n\n\n\nAccording to \nTech in Asia\n\u2019s database, the number of individual investors investing in Southeast Asia and India has eclipsed the figure for institutional investors. That said, institutional investors account for a much larger amount of investment into startups in the region, with larger funds at their disposal.\n\n\nSee also: \nAngel investor clubs are hot in the US, and now they\u2019re growing in Southeast Asia\n\n\nUnsurprisingly, most individual investors that \nTech in Asia\n has on this list were founders in their own right \u2013 there was double the number of ex-founders as opposed to executives in our database.\n\n\n\n\nMost individual investors on our database also come from an investment background. Although investors from specific sectors tend to have a greater depth of knowledge in their field, those working at companies such as private equity firms and family offices tend to have a general understanding of the market and will likely engage in more diverse funding rounds.\n\n\nOur data also reveals that investors from the fintech and ecommerce sectors, which are relatively more mature verticals, contributed equally to Southeast Asia and India\u2019s startup funding ecosystem.\n\n\nWe hope that as we constantly update our database, it will be a useful reference for anyone who\u2019s interested in limited partners in Southeast Asia and India.\n\n\nWe acknowledge that we\u2019re missing some data, so do reach out to shadine@techinasia.com to help us fill in the gaps. Include the following details:\n\n\nName of the individual or institutional investor:\nCurrent role and occupation:\nHeadquarters:\nInvestments made:\nName and LinkedIn profile of the partner:\n\n\nYou can also catch our coverage of active investors \nhere\n and find more information on investors through our database \nhere\n.\n\n\nCredits\nData\n: Shadine Taufik\nIllustration\n: Timmy Loen\nEditing\n: Nikita Puri and Jaclyn Tiu"}
{"title": "AirAsia taps Foodpanda for food delivery", "body": "\n\nPhoto credit: \nabdulrazaklatif / 123RF\n\n\n\n\nAirAsia\n\u00a0has tapped \nFoodpanda\n\u00a0to handle the travel app\u2019s food delivery business as both sides embark on a strategic partnership.\n\n\nAccording to a statement, this means that AirAsia\u2019s food offerings will transition to a dine-in model.\n\n\nIn August 2021, the travel firm \nlaunched\n its food delivery service in Malaysia and subsequently expanded to Singapore, Thailand, and Indonesia. In January this year, it reportedly \nclosed down\n the service in Singapore.\n\n\nBesides food delivery, AirAsia\u2019s ride-hailing service will be integrated into the Foodpanda app.\n\n\nThe partnership will also explore other collaborations, including payment solutions, joint loyalty programs, and subscription plans, said \nTony Fernandes\n, CEO of Capital A, the holding company of AirAsia.\n\n\nHeadquartered in Germany, Foodpanda operates in over 300 cities across 11 markets in Asia Pacific. The company said it has a network of 100,000 merchants and thousands of delivery partners.\n\n\nSee also:\u00a0\nTop Carsome, Capital A execs back events-booking startup\n\n\nNote: This article was written with the help of AI. Don\u2019t worry, humans were still involved in producing this story."}
{"title": "Speedhome CEO on moonlighting and riding out Covid-19", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\n\n\nSpeedhome CEO Wong Whei Meng / Photo credit: Speedhome\n\n\n\n\nWhen Speedhome launched in 2017, I was genuinely rooting for the startup. Not because I\u2019m an investor \u2013 I\u2019m a journalist, come on. If I had the money to invest, I wouldn\u2019t be here.\n\n\nBut Speedhome promised to disrupt the home rentals space in Malaysia by allowing tenants to rent with zero deposits. If you\u2019re a renter like me, then you\u2019d know how annoying the system is, which typically favors the landlord.\n\n\nIt\u2019s a complex situation, but what happens is that a tenant will need to cough up a \u201cdeposit\u201d that can come up to four months\u2019 rent prior to moving in.\n\n\nThis deposit acts as some sort of \u201cinsurance\u201d in case you, the tenant, go rogue or display your baddest behavior \u2013 e.g. trashing the place or turning it into a crime den.\n\n\nBetter yet, you need to pay legal fees upon signing the tenancy agreement aside from paying the deposit.\n\n\nThere\u2019s also a whole load of racism that some people will have to deal with. Take it from me: Most of the time I\u2019m able to rent a unit because my wife, who\u2019s Chinese Malaysian, does most of the negotiating.\n\n\nDespite its potential to disrupt the market, Speedhome was disrupted last year when it had to lay off staff. We \nreported\n that.\n\n\nI also found out that its CEO, Wong Whei Meng, had to moonlight as a talk show host on LinkedIn to make ends meet. Viewers of the show, which ran for three months, could donate or send him a tip. Wong also received support from his peers.\n\n\n\n\nSpeedhome HQ in Malaysia / Photo credit: SPeedhome\n\n\n\n\nDespite navigating a bleak period, Speedhome is still here. I caught up with Wong to see what has happened since then.\n\n\nHere\u2019s my conversation with Wong, which has been edited for clarity and brevity:\n\n\nQ: Last year was rough \u2013 you had to double up as a talk show host. What happened?\n\n\nA: When I did the talk show, it was primarily to see if people were willing to pay me for a talk show that\u2019ll supplement my income. We had a pay cut across the board, especially the CEO. As the CEO, I have to lead by example.\n\n\nI didn\u2019t have any thoughts about how I wanted to do it. It was more of just doing something and seeing if people would join me on this journey.\n\n\nQ: Were the donations for the talk show substantial?\n\n\nA: Yes. I was able to raise a few thousand ringgit in the form of tips or donations. So I felt touched knowing that people find the things that I share have value to them.\n\n\nBut after a while, I stopped because it was quite taxing in terms of time and topics. And when people start paying you, you feel obligated to do something good.\n\n\nThat pressure made me dedicate more time to preparation, so I stopped after running it for almost three months. I quit doing the talk show at the end of last year as growing Speedhome had always been the focus. We had to get the startup to profitability.\n\n\nQ: Did you have to explain yourself to your investors?\n\n\nA: Yes, I told them it is what it is. I explained it to them transparently: I was doing this literally right after working hours, and I was compartmentalizing my time for different things.\n\n\nObviously, investors were concerned that if I have to figure out my personal finances, then I can\u2019t fully focus on the business. But we were able to reduce our burn and stay the course.\n\n\nQ: You \nwrote\n on LinkedIn that this entire journey took a toll on your family. Are they still with you on this?\n\n\nA: This was not my first time doing business, but back then, when I went through the dips, I didn\u2019t have my kids with me. I was 20-something, so even though I had troubles, it was manageable.\n\n\nThis time\u2019s different. I need to put food on the table and to think about my kids\u2019 education. So these all added up to the immense pressure of running a startup.\n\n\nI had a very frank discussion with my wife to manage expectations, and she was there to support me. I\u2019m thankful to have a partner who supports me.\n\n\nThat said, I had to be clear that last year was only a one-time experience for my family. It can\u2019t go on. It\u2019s not fair for me to ask for that kind of understanding forever, right?\n\n\nQ: You are still here with Speedhome, though.\n\n\nA: We were really surprised and grateful that we survived last year. So we decided to get our act together to focus on what\u2019s important.\n\n\nWe reduced a lot of burn throughout last year. We aggressively cut costs, trimmed 20% of our workforce, and optimized certain aspects of the business.\n\n\nFor example, customer service \u2013 we used to run seven days a week. If we kept at it, we\u2019ll be worse off. Eventually, we decided to run five days a week but automated some of the processes and that has helped so far.\n\n\nWhat systemic issues in the Malaysian property market was Speedhome trying to address?\n\n\nA: When we began, it was about helping landlords and tenants rent transparently and hassle-free.\n\n\nWe saw many things were broken in the sense that there wasn\u2019t strong regulation nor was there a strong ecosystem. Obviously there\u2019ll be bad apples on both the tenant and landlord sides.\n\n\nBut generally, what landlords were gunning for was using deposits as a way to filter or screen tenants.\n\n\nAnd because there\u2019s a gap in proper regulations, people default to what they know \u2013 skin color, language, religion \u2013 simply because there isn\u2019t a better solution.\n\n\nPeople then begin to judge a book by its cover, and that\u2019s where discrimination or \u201ctaboos\u201d crop up because we lack a better way to tackle these things.\n\n\nQ: I\u2019m brown, so I get that all the time.\n\n\nA: Since we\u2019re on this topic, the moment the skin is darker, acceptance level drops drastically in Malaysia. I can\u2019t speak for the rest of the region, but that\u2019s really true over here.\n\n\nQ: How has Speedhome addressed these problems?\n\n\nA: We\u2019ve collected 50 million data points, both positive and negative, and from there we have models and patterns to screen a tenant.\n\n\nOur main data sources are derived from credit reporting agencies as well as what\u2019s available in the public domain.\n\n\nWhen we started in 2017, the tenancy default rate was high. But we\u2019ve managed to reduce that with our screening process.\n\n\nOur goal is to build a model where we can tell the world or at least in the Malaysian context that there\u2019s a more objective way of screening tenants.\n\n\nQ: How has Covid affected the way you process and predict data?\n\n\nA: When we built our models pre-Covid, we never expected massive job losses. Covid was a black swan event where a good tenant could quickly become bad simply because they\u2019ve lost their job.\n\n\nAs a company, we suffered too. Across the board, the hit was bad, but we were able to collect more data. We back-tested them and deployed a newer model. We are projecting to at least reduce tenancy default rates by 20% to 30%.\n\n\nQ: What\u2019s next for Speedhome?\n\n\nA: We are focused on expanding ancillary services like Speedfix, where we connect contractors directly with tenants or landlords for maintenance work.\n\n\nSince we have a captive audience, we are not competing with jobs platforms. We are looking at servicing our internal customer base.\n\n\nSo we already have your contact details, from your phone number to your address. All you need is to just upload a photo of your maintenance problem and we\u2019ll automatically match you with someone who can do the job.\n\n\nPreviously, we were known for zero deposits, but we have enabled landlords to choose to take in deposits or not. While we think the zero-deposit concept is good, we have neglected some landlords who may still want to use our platform but do not subscribe to our zero-deposit ideology.\n\n\nQ: But how are you going to get to profitability while staying lean?\n\n\nWe currently have a captive audience of 6,000 plus, but we need to reach 8,000.\n\n\nSince there\u2019ll be no major marketing spend, we\u2019re relying on word of mouth. We are also trying to boost revenue by providing ancillary services like Speedfix.\n\n\nCurrently, our largest markets are the Klang Valley (Kuala Lumpur and Selangor), followed by Johor and Penang. We\u2019ll double down in these areas as developing new markets is certainly not high on the agenda.\n\n\nI\u2019m hoping that by reducing burn, we\u2019ll get to profitability by the end of this year, if not the first quarter of 2024."}
{"title": "Malaysia\u2019s 5G rollout goes full circle back to square one", "body": "Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a premium subscription\n.\n\n\nHello reader,\n\n\nAfter a few months of fending off the frustrations that come with poor mobile internet connectivity, I was suddenly surfing the web seamlessly. It took me a while, but I eventually noticed the \u201c5G\u201d icon near the network bars on the top right corner of my phone screen.\n\n\nDespite the recent exasperations, I was largely a satisfied user of 4G tech \u2013 so much so that I initially viewed its successor as excessive. But the past few weeks have convinced me that the fifth-generation standard for broadband cellular networks can supercharge economies and usher in the era of new tech advances. (And yes, it\u2019s ridiculously fast.)\n\n\nIn fact, 5G in India is expected to have a cumulative economic impact of \nUS$1 trillion by 2035\n. The lure of this tech is evident, however its rollout has been anything but straightforward in most countries, especially in emerging markets.\n\n\nToday, we shine the spotlight on Malaysia\u2019s chaotic efforts to build its 5G networks.\n\n\nFrom Chinese tech giant Huawei seeking a backdoor entry to the polarizing creation of government-owned Digital Nasional Berhad, the development of 5G infrastructure in the Southeast Asian country has faced a host of unforeseen challenges.\n\n\nThe premium story also dives into how years of political instability and policy flip-flops have somewhat ironically led Malaysia back to what was initially planned when the country laid out its 5G ambitions in 2018.\n\n\nToday we look at:\n\n\n\n\n\n\nHow Malaysia\u2019s 5G rollout turned messy\n \n\n\nBukalapak standing firm on zero service fees for users\n\n\n18 essential reminders for budding entrepreneurs by \nTech in Asia\n founder Willis Wee\n\n\nOther newsy highlights such as Indonesia and Malaysia launching a cross-border QR payment linkage\n\n\n\n\n\u2014 Shravanth\n\n\nP.S.: If you\u2019re an entrepreneur looking for funding, \nfill out this form\n to get your company featured on our list of fundraising startups.\n\n\n\n\nPremium summary\n\n\nComing full circle\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nSmooth sailing is not the word I\u2019d use to describe Malaysia\u2019s 5G rollout. What makes it all the more excruciating is after over five years of chopping and changing, the country is veering back toward something akin to the initial plans it had drawn up in 2018. But better late than never, right?\n\n\n\n\n\n\nThe origins:\n After the 2018 elections, Prime Minister Mahathir Mohamad\u2019s government drew up plans for the country to move into 5G. In short, telcos would be asked to form a consortium and go about building 5G infrastructure. What this consortium needed to do was bid for 5G spectrum auctioned by the Malaysian Communications and Multimedia Commission (MCMC), a state-owned industry regulator.\n\n\n\n\nThe twist:\n Mahathir\u2019s administration was ousted in 2020. His successor\u2019s government incorporated a firm called Digital Nasional Berhad (DNB). MCMC then allocated the spectrum to DNB for a price, and the company would lease the spectrum to telco players, making DNB, in telco talk, a single wholesale network \u2013 aka a monopoly.\n\n\n\n\nMiddle ground:\n Telcos rebelled against this plan. Things got so bad that the government had to offer these firms equity in DNB \u2013 almost all telcos took up the offer. Those that complied with DNB\u2019s terms and conditions began rolling out their 5G services from December 2021. But this, too, was a slow affair.\n\n\n\n\nRead more: \nHow Malaysia\u2019s 5G rollout turned messy\n\n\n\n\nNews spotlight\n\n\nGoing against the grain\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nBukalapak \nhas opted against\n introducing transaction and app service fees for users, bucking the recent trend among several ecommerce companies in Indonesia.\n\n\n\n\n\n\nNot alone:\n Bukalapak isn\u2019t the only ecommerce platform operating in Indonesia that\u2019s not charging its users transaction and app service fees. Lazada, too, doesn\u2019t require customers to pay these fees. However, the Alibaba-owned platform\u2019s future plans for such fees are currently unknown.\n\n\n\n\nRival charts own path:\n On May 2, Tokopedia started collecting US$0.07 for every purchase using virtual payment. The firm also increased its app service fee from US$0.07 to US$0.14 or US$0.2 upon checkout, depending on the total transaction amount. This adjustment is expected to have long-term positive impacts for the company.\n\n\n\n\nBusiness as usual here:\n Shopee customers must pay a service fee of US$0.07 for every transaction, except for \nzakat\n (mandatory alms for Muslims), donations, and financial products. Since October 2022, the fee has been charged to every buyer who has made four transactions \u2013 with any payment method and no minimum purchase \u2013 since opening an account.\n\n\n\n\nSee also: \nWhy GoTo\u2019s shares jumped following Q1 results, while Bukalapak and Blibli are flat\n\n\n\n\nTech in Asia\u2019s Product Development Conference 2023\n\n\nLearn how to create a winning formula for a successful product\n\n\n\n\nWant to elevate your product development game?\n\n\nTap into the expertise of our featured speakers at Product Development Conference 2023, which include Patricia U, senior product design manager at Bukalapak; Reza Prasetyo, lead product manager at Flip; Praz Perkasa, chief product officer Moladin, and many more.\n\n\nSecure your seat \nhere\n!\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nBoosting financial inclusion\n\nThe central banks of Malaysia and Indonesia \nhave linked\n QR payments of both countries to promote inclusive cross-border payments. Customers can now make instant retail payments by scanning the Quick Response Code Indonesian Standard or DuitNow QR codes at physical or online stores that use services offered by participating financial institutions.\n\n\n2\ufe0f\u20e3 \nFrom fried chicken to stock trading\n\nOnline investment platform DragonFi \nlaunched\n in the Philippines after a year of development. Tony Tan Caktiong and Edgar Sia, two billionaires behind fast-food restaurant chains Jollibee and Mang Inasal, are listed as co-founders of DragonFi. The duo have invested in the trading firm, but details of their investment are unclear.\n\n\n3\ufe0f\u20e3 \nFor the entrepreneurs\n\nAfter building \nTech in Asia\n for over a decade, founder Willis Wee shares invaluable insights and lessons on the things he wished someone had told him when he was starting out. From having a clear vision to being kind, \nhere are his 18 essential reminders\n for those ready to take on the challenge of building a startup.\n\n\n4\ufe0f\u20e3 \nFirst one to go?\n\nCainiao Network Technology, Alibaba\u2019s logistics arm, \nplans to raise\n up to US$2 billion through a Hong Kong listing in early 2024. The IPO is part of the Chinese tech giant\u2019s restructuring plan, which involves splitting its business into six units. This is the first publicly reported capital raising plan from Alibaba\u2019s units, which is expected to boost the sluggish Hong Kong capital markets.\n\n\n5\ufe0f\u20e3 \nThe new VC on the block\n\nInvestment veteran Jeffrey Seah \nannounced the launch\n of MSW (Mettle Salt Wealth) Ventures, an investment outfit focused on early- and growth-stage opportunities. Through its inaugural fund Asia Fund X, the Singapore-based company will look for potential investments across Southeast Asia, especially in foodtech, agritech, data tech, sustainability, and enterprise tech.\n\n\n6\ufe0f\u20e3 \nGoing in for a second bite\n\nBig Idea Ventures, a Temasek-backed foodtech investor, \nis looking to raise\n its second alternative protein fund. The move comes about two years after the venture firm secured US$50 million for New Protein Fund I, its debut alt-protein fund that also received funding from Enterprise Singapore."}
{"title": "Mastercard opens Malaysia data hub for Asia-Pacific clients", "body": "\n\nPhoto credit: Mastercard\n\n\n\n\nMastercard\n has opened a data and services (D&S) hub in Malaysia, which will be focused on supporting the firm\u2019s clients in Asia Pacific.\n\n\nThe new hub will provide cybersecurity, credit risk, and data analytics services to help scale clients\u2019 businesses. According to Mastercard, the hub aims to support both private and public organizations to \u201cmake more data-driven decisions and optimize performance and profitability.\u201d\n\n\nThe payments firm\u2019s D&S experts work with nearly 4,000 clients in over 120 countries, providing solutions for a range of services such as loyalty programs and product prototypes.\n\n\nSee also: \nMalaysia\u2019s Islamic fintech scene: fool\u2019s gold?\n\n\nRecently, Malaysia had officially linked QR payments between it and \nIndonesia\n as well as \nSingapore\n. This enabled participating merchants to accept QR payments through Malaysia\u2019s DuitNow, connecting with QRIS in Indonesia and\u00a0 NETS for Singapore.\n\n\nNote: This article was written with the help of AI. Don\u2019t worry, humans were still involved in producing this story."}
{"title": "Malaysia, Indonesia launch cross-border QR payment linkage", "body": "\n\nA QRIS transaction / Photo credit: Shutterstock\n\n\n\n\nThe central banks of Malaysia and Indonesia have \nofficially linked\n QR payments of both countries to promote faster, more transparent, and more inclusive cross-border payments.\n\n\nThe pilot phase of Bank Indonesia (BI) and Bank Negara Malaysia\u2019s (BNM) linkage started on January 27 last year, paving the way for today\u2019s commercial launch.\n\n\nCustomers can now make instant retail payments by scanning the Quick Response Code Indonesian Standard (QRIS) or DuitNow QR codes at physical or online stores that use services offered by participating financial institutions.\n\n\nThis move, which promotes more extensive use of local currencies for bilateral transactions, will benefit MSMEs and maintain macroeconomic stability, said BI governor Perry Warjiyo.\n\n\nSee also: \nIndonesia\u2019s big four banks are minting it but need to watch their backs\n\n\nCompared to the pilot stage, the official launch saw an increase in the number of participating financial institutions, including non-banking ones.\n\n\nIndonesian institutions in the lineup include Bank Sinarmas, Bank Central Asia, as well as fintech firms Dana and LinkAja. Meanwhile, those from Malaysia include Hong Leong Bank, Maybank, and Public Bank.\n\n\nThe development follows \na similar tie-up\n between the \nMonetary Authority of Singapore\n and BNM, with Singapore\u2019s NETS and Malaysia\u2019s DuitNow providing the QR payment services."}
{"title": "Aeon to proceed with Malaysia digibank despite MoneyLion exit", "body": "\n\nJapanese conglomerate Aeon runs a chain of shopping malls in Malaysia, targeting suburban residential neighborhoods nationwide. / Photo credit: Wikimedia Commons\n\n\n\n\nUS-based neobank \nMoneyLion\n is no longer partnering with Japanese conglomerate Aeon to launch a digital Islamic bank in Malaysia.\n\n\nA representative from Aeon told \nTech in Asia\n that MoneyLion decided to pull out of the consortium to focus on its US operations.\n\n\nThis means Aeon, which runs a chain of supermarkets and shopping malls in Malaysia, will launch the digital bank with its two subsidiaries.\n\n\nT\nhe group originally consisted of\u00a0\nAeon Credit\n, \nAeon Financial Services\n and MoneyLion. The Aeon units each hold a 45% stake in the consortium while the remaining 10% was owned by MoneyLion.\n\n\nAeon did not respond to queries on whether it was actively seeking a new partner following MoneyLion\u2019s exit. For now, the Japanese firm said it\u2019s still on track to launch the digital bank, which was scheduled within 24 months from the approval date of its license from the Ministry of Finance.\n\n\nThe Aeon-led consortium \nbagged\n Malaysia\u2019s first digital banking license on April 29, 2022. This means the official launch should be in April 2024, pending approval from Bank Negara Malaysia (BNM), the country\u2019s central bank.\n\n\nSteering Aeon\u2019s digital bank is Raja Teh Maimunah Abdul Aziz, the former managing director of Ambank\u2019s wholesale banking arm. She \nwas appointed\n Aeon\u2019s digital bank chief executive officer in November 2022.\n\n\nThe Aeon-led consortium is one of the five groups that got approval to launch digibanks in Malaysia. Three consortiums are set to run conventional digital banks, namely: Boost and RHB; Grab-Singtel and Kuok Brothers; and YTL Digital Capital and Sea Group.\n\n\nThe remaining two will operate Islamic digital banks. Aside from Aeon\u2019s group, a consortium made up of KAF Investment Bank, Carsome, Jirnexu, and MoneyMatch also holds this license.\n\n\nSee also:\u00a0\nMalaysia\u2019s digibank race heats up: 3 things to watch"}
{"title": "Malaysia\u2019s Islamic fintech scene: fool\u2019s gold?", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nSince we\u2019re still in the Eid al-Fitr season, let\u2019s talk about Malaysia\u2019s Islamic fintech scene.\n\n\n\n\nMalaysia\u2019s national mosque in capital Kuala Lumpur / Photo credit: Wikimedia Commons\n\n\n\n\nYou may think that since Muslims make up roughly 65% of the population, Malaysia is a goldmine of an opportunity. A startup comes in, launches a fancy app, and boom! A unicorn in the making. But the truth may be far off.\n\n\nLet\u2019s check out the lay of the land first. The country has 294 fintech companies but only 5% of them are Islamic fintech firms, according to the \nMalaysia Fintech Report 2022\n.\n\n\nSome names in this space include MadCash, PayHalal, Microleap, Ethis, Wahed, Pewarisan, and Wakaful. Some, like US-based Wahed, are not headquartered in Malaysia.\n\n\nNow, what makes a fintech company \u201cIslamic\u201d? Obviously its products adhere to Shariah principles, with distinct features including the prohibition against charging of interest (known as \nriba\n) and an emphasis on risk-sharing as well as ethical investing.\n\n\nThe latter, too, is guided by the Islamic law. So, obviously, no investments or dealings with companies that produce alcohol, for example.\n\n\nBut despite a large population and a somewhat conducive environment, Malaysia hasn\u2019t had a Shariah fintech unicorn. Heck, we don\u2019t even have a fintech unicorn.\n\n\nFor comparison, Indonesia has \nOvo\n, a fintech unicorn that also offers Islamic products.\n\n\nThe lack of a mythical beast aside, here are four major challenges for Malaysia:\n\n\nPowerful incumbents\n\n\nThis is pretty obvious but worth spelling out. The country\u2019s financial services space is dominated by incumbents, including some of the country\u2019s largest banks like Maybank, CIMB, and RHB.\n\n\nNaturally, their Shariah banking arms also command attention. According to \nThe Asian Banker\u2019s rankings\n, six of the world\u2019s top 20 Shariah banks \u2013 Maybank Islamic, CIMB Islamic, Bank Rakyat, RHB Islamic, Bank Islam Malaysia, and Public Islamic Bank \u2013 are headquartered in Malaysia.\n\n\nThese players are household names and since they\u2019ve been around for some time, they have a lot of dry powder to roll out digital services. You could even say their tech capabilities are superior to the regular fintech upstart.\n\n\nToo many stakeholders\n\n\nSecondly, Malaysia\u2019s Islamic finance is largely decentralized, meaning that each state has its own suite of services to cater to the local Muslim community.\n\n\nSay you have a brilliant plan to create a one-stop app for Muslim users to fulfill some of the important aspects of their religious life, such as contributing \nwaqaf\n (voluntary charitable donations) or \nzakat\n (an obligation for qualified Muslims to donate a portion of wealth yearly to charitable causes).\n\n\nThe easiest hurdle you\u2019ll run into is to deal with multiple stakeholders \u2013 mostly government-run agencies at both the federal and state levels.\n\n\nZakat\n, for example, can either be paid to a federal or state agency. These agencies have their own apps.\n\n\nThis decentralization problem isn\u2019t just confined to Malaysia. If you want to scale and expand to Indonesia, for example, you\u2019ll find no standardized framework that governs Islamic finance.\n\n\nSuch was the case of HelloGold. Before it \nbombed\n due to the pandemic, among other reasons, the company wanted to expand to Indonesia since its products were Shariah-compliant. But progress was slow.\n\n\nRobin Lee, the gold-trading firm\u2019s co-founder, \ntold\n business publication \nThe Edge\n that the expansion would have been easier if there had been a set of standards, like a checklist agreed upon and recognized by countries regionally or globally.\n\n\nLack of investment options\n\n\nThirdly, there aren\u2019t just that many Shariah-based investment products. Let\u2019s take exchange traded funds, for instance.\n\n\nAt the time of writing, there are only six Shariah-compliant ETFs on local exchange Bursa Malaysia: MyETF Dow Jones US Titans 50; MyETF MSCI Malaysia Islamic Dividend; MyETF Dow Jones Islamic Market Malaysia Titans 25; MyETF MSCI Southeast Asia Islamic Dividend; MyETF Thomson Reuters Asia Pacific ex-Japan Islamic Agribusiness; and TradePlus Shariah Gold Tracker.\n\n\nWhile these ETFs are \u201cIslamic\u201d, they\u2019re similar to conventional indices. For example, MyETF Dow Jones Islamic Market Malaysia Titans 25 invests in various large-cap companies that are component stocks of the KLCI, which is Bursa Malaysia\u2019s benchmark index comprising 30 of the largest stocks by market value. As a result, investors may not benefit much from diversification.\n\n\nAnother example here is the foray of the Employees Provident Fund (EPF), the country\u2019s largest institutional investor with assets under management of a billion ringgit (US$440 million).\n\n\nThe private pensions purse has a Shariah-compliant account for members who prefer such. But in terms of dividends, it has been trailing its conventional counterpart.\n\n\nWhen asked by the press why such is the case, former EPF CEO Shahril Ridza Ridzuan \nsaid\n that Shariah-compliant investments aren\u2019t exposed to \u201cto the global conventional banking system, mainly global banks and global insurance companies.\u201d\n\n\nHe went on to add that members who opted for the Shariah-based product weren\u2019t concerned with dividends but just wanted a product of that kind.\n\n\nFunding concerns\n\n\nLastly, regulations. A few investors I spoke to told me that the entire process of getting investments or operating/financial services licenses approved can be cumbersome, leading to the question of whether a startup should be allowed to burn cash while waiting for those approvals.\n\n\nThis in turn is one of the reasons the country\u2019s Islamic fintech companies are \nunable\n to net funding north of US$100 million, despite Shariah-compliant stocks accounting for 65.5% of the Bursa Malaysia in 2022, according to the Securities Commission Malaysia.\n\n\nSurely proponents will argue that there are opportunities here. Islamic fintech isn\u2019t all hype for sure, as there are many other products such as SME financing that may provide these fintech firms an avenue to make an impact. However, it goes back to the earlier point of having incumbents deep within the financial ecosystem.\n\n\nUntil a compelling case for Shariah fintech can be made, let\u2019s hope that whatever buzz these companies create won\u2019t turn out to be fool\u2019s gold."}
{"title": "Finnish EV firm raises $93.8m, gears up for SEA expansion", "body": "\n\nPhoto credit: Virta\n\n\n\n\nVirta\n, a Finland-based provider of charging services for electric vehicles, has raised US$93.8 million (85 million euros). The round is led by its existing investors such as Jolt Capital, Future Energy Ventures backed by E.ON, Helen Ventures, and\u00a0\nVertex Growth Fund\n.\n\n\nThe fresh funds will be used to grow its charging transactions by more than 5x in the Asia Pacific and Europe by 2025. The company said it will\u00a0expand into Malaysia, Indonesia, and Vietnam within the next two years.\n\n\nFounded in 2013, Virta provides smart charging services for both EV drivers and companies alike.\u00a0The company, whose Asia-Pacific headquarters is located in Singapore, plans to introduce its smart-charging capabilities for Asian markets later this year.\n\n\nIn Southeast Asia, Virta has partnerships with Thailand\u2019s EVolt Technology and Malaysia\u2019s VSD Automation.\n\n\nSee also: \nVingroup founder\u2019s EV play revs up Vietnam\u2019s ride-hailing race"}
{"title": "Coins and Controls: a breakdown of Southeast Asia\u2019s crypto regulations (Malaysia)", "body": "\n\n\n\nWhen it comes to crypto rules, it appears that Malaysia is more comfortable playing it safe than sorry.\n\n\nGenerally speaking, financial authorities in the country have operated on a whitelist method \u2013 investors can only trade seven approved tokens or coins: Bitcoin, Ether, XRP, Litecoin, Bitcoin Cash, Link, and Uni. This is heavily regulated by the Securities Commission Malaysia (SC), and \nofficially licensed exchanges\n\u00a0in the country must abide by this whitelist.\n\n\nHere\u2019s a look at how Malaysia\u2019s regulatory environment for cryptocurrencies got to this point:\n\n\nClick on each section of the infographic to find out more\n\n\n\n\n\n\n\n\nMass protection\n\n\nLike most jurisdictions, heavy regulations are meant to act as protection for general consumers.\n\n\nMany retail investors these days aren\u2019t very well-versed in protecting themselves against investment risks because they don\u2019t need a high level of research or education to get started, says Wilson Chin, head of marketing at \nTokenize\n, a Malaysia-based digital asset exchange (DAX) platform.\n\n\n\u201cYou have to keep in mind that it\u2019s so easy to start investing these days,\u201d he continues. Consequently, the onus is on regulators and market operators to protect this growing consumer base.\n\n\nGrowth figures back this up \u2013 while adoption has \nslowed over the past year or so\n due to the crypto winter, there was a \nstrong uptick in interest\n\u00a0from Malaysian investors leading up to that.\n\n\nPutting a lid on it\n\n\nIn general, Malaysia\u2019s extremely strict regulations put a cap on the types of products or services that local firms can provide.\n\n\nLicensed or regulated companies can\u2019t offer \nleveraged investing\n, \nstaking\n or even meme tokens like \nDogecoin\n, among other things.\n\n\n\n\nPhoto credit: \nrufous\n / \n123RF\n\n\n\n\nIn particular, meme tokens (or \nshitcoins\n, as they\u2019re often called) might not have much luck with the SC, given that there\u2019s a long list of stringent criteria that a product or service has to meet before it can be whitelisted.\n\n\n\u201cThe regulators will look into things like the founders\u2019 backgrounds, distribution of coins, number of nodes, as well as risk of market manipulation and \npump-and-dump schemes\n,\u201d explains David Low, general manager of \nLuno\u2019s\n\u00a0Asia-Pacific business.\n\n\nEssentially, the SC will only approve of traded tokens that are \u201ccredible,\u201d he says, and that\u2019s something the memecoins don\u2019t have.\n\n\n\u201cWe know that the token was just created for fun rather than for an actual use case.\u201d\n\n\nHand in hand\n\n\nThat said, while the country may have some tough rules, local crypto firms have taken to them well.\n\n\n\u201cWe\u2019re very happy being regulated by the SC. They\u2019ve always shown a significant amount of knowledge about the industry and can never be underestimated,\u201d says John Sidoli, head of compliance at \nSinegy\n, a local DAX.\n\n\nMore specifically, regulations are seen as a good thing because of their ultimate purpose: consumer protection.\n\n\n\u201cA regulated route may not be the more economically appealing route because there\u2019s more constraints. But I think that in the long term, all activities in Malaysia regarding the exchange of digital assets will \u2013 in one way or another \u2013 fall into a regulated space,\u201d says Fadzli Shah, CEO of \nMX Global\n, another Malaysian DAX.\n\n\n\u201cThis long term is good because then users will be confident that they\u2019re trading with good actors. It\u2019s a marathon, not a sprint.\u201d\n\n\nUltimately, it\u2019s clear that authorities and crypto firms in the country will always have a close relationship.\n\n\nSinegi\u2019s Sidoli hopes that with regards to new products or services, the government can consider having more assets approved for the whitelist, including a possible expansion of the current seven approved coins to 20.\n\n\nAccording to Luno\u2019s Low, another ideal goal is to have a policy that protects Malaysians who invest online, as some of them may not fully grasp the legalities of trusting their assets with foreign companies.\n\n\nThat\u2019s because while Malaysia-domiciled companies have a strict rulebook to follow, the same doesn\u2019t necessarily apply to overseas-based firms. They may still be able to advertise their products or provide an easy way for Malaysians to sign up on their platforms online, exposing these investors to high risks.\n\n\nAdditionally, as use cases like staking become more popular, Low believes the government will start working with local stakeholders to define the right policies to govern the introduction of these use cases.\n\n\n\u201cIt\u2019ll always be a catch-up game for regulators, so they have to always expand their scope as the market matures,\u201d he says.\n\n\n\u201cIt\u2019s really a collaborative approach, and the regulators have always been very forward-thinking about it.\u201d\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.44 ringgit.\n\n\n\n\nCoins and Controls is a series that covers crypto regulations by jurisdictions in Southeast Asia. To read more about the latest crypto news and developments, \ncheck out Tech in Asia\u2019s coverage here\n.\n\n\n\n\n\u00a0\n\n\n\n"}
{"title": "How Malaysia\u2019s 5G rollout turned messy", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles.\n\n\n\n\nYes, the telco arm of conglomerate YTL, was among the first adopters of Malaysia\u2019s 5G rollout. / Photo credit: Yes\n\n\n\n\nLast week, I took a break from writing this column. No, I didn\u2019t do any soul-searching \u2013 I just wanted a reprieve from the weekly grind.\n\n\nDuring my time off, one topic surfaced in the news: Malaysia\u2019s 5G rollout. To be sure, it has come up before, usually from negative coverage.\n\n\nThis time, however, the buzz was that Prime Minister Anwar Ibrahim would be announcing the results of a government review on the country\u2019s 5G initiative. The day of reckoning was supposed to be yesterday. Alas, there was no post-cabinet press conference.\n\n\nWhile a formal announcement may only be made after the Eid celebrations, there are some things that need to be said. For starters, Malaysia botched its 5G rollout.\n\n\nBelieve it or not, Malaysia was ahead of Singapore\u2026 at least in announcing its intention to push out 5G. Singapore \nannounced\n its plans in 2020, Malaysia did so in 2018.\n\n\nBut talking about this is like being a Liverpool fan, a diehard who can only cope with the football club\u2019s present inconsistent run by looking at past accolades. But, hey, this isn\u2019t a sports column.\n\n\nOf political instability\n\n\nLet\u2019s get back on track. 2018 \u2013 if you\u2019ve been following Malaysian affairs \u2013 was a crucial year for the country because a regime change occurred after the 14th general election \u2013 a first in Malaysia\u2019s history.\n\n\nIn the run-up to the elections that year, there was a proposal to deploy broadband nationwide.\n\n\nWhen Mahathir Mohamad returned as prime minister after the 2018 elections, his government reviewed the broadband plan, and from this study came a clearer ambition to move into 5G, among other things.\n\n\nIn a nutshell, telcos would be asked to form a consortium and go about building 5G infrastructure. Financing will come from the telcos\u2019 own books.\n\n\nThe Malaysian government would provide some aid through an already established kitty for digital infrastructure called the Universal Service Provision (USP) fund. There would also be the possibility of another consortia should this model prove successful.\n\n\nWhat this consortium needed to do was bid for 5G spectrum auctioned by the Malaysian Communications and Multimedia Commission (MCMC), a state-owned industry regulator. MCMC also oversees the above-mentioned USP fund.\n\n\nBut Mahathir\u2019s government was ousted in 2020. His successor, Mahiaddin Yassin, together with then finance minister Tengku Zafrul Aziz, made some material changes to the country\u2019s 5G plans.\n\n\nWhat happened was that the government incorporated a company called Digital Nasional Berhad (DNB) and then pumped 500 million ringgit to capitalize the company.\n\n\nMCMC then allocated the spectrum to DNB for a price, and the company would lease the spectrum to telco players, making DNB, in telco talk, a single wholesale network (SWN) \u2013 aka a monopoly.\n\n\nDNB\u2019s creation was polarizing. Critics pointed out the poor track record of the SWN model, citing the experiences of other countries.\n\n\nThey also feared that telcos would pass on the cost of riding on DNB\u2019s network to consumers, which would result in higher prices.\n\n\nSome worried that there would be governance issues since DNB is wholly owned by the government. How do you regulate a government entity when MCMC is also a state agency? What about the use of public money and tracking this? Are the bank loans to DNB government-guaranteed?\n\n\nBut DNB and its supporters rebutted these by highlighting that telcos in general are for-profit entities. They are in the business of \u201csweating\u201d their assets which are heavily invested in things like 4G infrastructure. So there\u2019s no incentive for them to move into 5G \u2013 or if there is, their efforts would be severely limited to certain areas.\n\n\nDNB also \nclaimed\n that telcos can save on 5G investments, allowing them to offer services at a lower cost.\n\n\nFinally, DNB insisted that all its tenders were above-board and that financing would not come from public coffers. Loans would also not be government guaranteed, as banks had already lent the firm money to execute the rollout.\n\n\nDoes DNB have other policy levers in its favor? Definitely. Telcos would have no choice but to work with DNB if they wanted to develop 5G because MCMC made it so.\n\n\nEnter the multiverse of madness\n\n\nTelcos \nrebelled\n against the plan. Things got so bad that the government had to \noffer\n telcos equity in DNB to push things along.\n\n\nThe contracts between DNB with the other players were subject to multiple revisions. As for equity, almost all telcos took up the offer, save for two: Maxis, the country\u2019s second-largest telco, and a small-ish player called U Mobile.\n\n\n\n\nPrime Minister Anwar Ibrahim (center) meeting with relevant ministers and officials to discuss DNB and 5G on March 18 / Photo credit: Fahmi Fadzil\u2019s Facebook account\n\n\n\n\nThose that complied with DNB\u2019s terms and conditions began rolling out their 5G services starting December 2021 onward. But this, too, was a slow affair. Digi, another large telco player in Malaysia, only began offering 5G products in November last year.\n\n\nBut there are other funnies worth mentioning too. DNB\u2019s savings math, for instance, doesn\u2019t add up. For example, a report released last year by Kuala Lumpur-based brokerage CGS-CIMB \nstated\n that the three major telecommunication companies \u2013 Maxis, Celcom, and Digi \u2013 would be required to pay wholesale fees amounting to 7.4 billion ringgit (US$1.6 billion) to 8.4 billion ringgit (US$1.9 billion) each over a nine-year period.\n\n\nIf each telco paid 7.4 billion ringgit, the total payment to DNB would be 29.6 billion ringgit (US$6.67 billion), which is similar to DNB\u2019s estimated expenses if the telecommunication companies decided to establish their own 5G network.\n\n\nEven the timeline is whacked. In December 2021, DNB unveiled its 5G deployment plan, which intended to attain 40% 5G population coverage with 4,018 sites by the end of 2022.\n\n\nHowever, in January of the following year, DNB failed to meet its goal, having established just about 3,900 5G sites by the end of December 2022. Despite this, DNB claimed to have surpassed its objective with nearly 50% 5G population coverage.\n\n\nAfter being reprimanded by Communications and Digital Minister Fahmi Fadzil for unverified coverage claims, DNB \nclarified\n that only 38% of 5G population coverage is accessible to the public, as only 2,800 sites are \u201con air.\u201d\n\n\nLatest figures\n are that 5G nationwide coverage is at 54.7%, with Kuala Lumpur being 97% connected. No one has verified these claims, by the way, not even the MCMC. Why? Because there are \ncomplaints\n of 5G users still having to rely on 4G.\n\n\nA backdoor lobby\n\n\nIf things couldn\u2019t get any funnier, the \nFinancial Times\n \nreported\n on March 6 that Chinese firm Huawei is seeking a backdoor entry into Malaysia\u2019s 5G landscape. Minister Fahmi had to tell companies to \nstop lobbying\n for 5G tenders through the media, which many had been doing.\n\n\nFor what it is worth, when Prime Minister Anwar was opposition chief in 2021, he \nsaid\n that Huawei could complete the rollout at half the price that was estimated. How he arrived at those figures remains unclear.\n\n\nAll these issues culminated in a \nReuters\n \nreport\n on Monday that said Anwar\u2019s government would be mulling a second 5G network next year to challenge DNB\u2019s lock on the market. This was supposed to be either confirmed or denied at yesterday\u2019s press conference.\n\n\nWhile we are still in limbo for an official announcement, Anwar\u2019s government wants to ensure 80% coverage by 2023.\n\n\nThere are many permutations to achieve this. What some industry veterans and investment bankers tell me is that they are bracing for a dual wholesale network as suggested in the \nReuters\n report.\n\n\nThe government may also relinquish its stake in DNB and allow it to be run as a consortium of sorts with better oversight and greater transparency. DNB may not be disbanded because, well, it has loans to repay.\n\n\nSome large telcos may get what they want and be allowed to deploy 5G on their existing spectrum, albeit with conditions.\n\n\nBasically, what was initially planned in 2018 under Mahathir\u2019s government, where telcos will work together to share networks and manage costs of the 5G rollout, may happen after all.\n\n\nCrazy, right? Two years\u2019 worth of political instability and policy flip-flops, all to go back to plan 1.0. According to a report by research firm GSMA Intelligence, Malaysia is now not only behind Singapore but also the Philippines, Indonesia, and Thailand in 5G take-up rates.\n\n\n\n\nPhoto credit: GSMA Intelligence\n\n\n\n\nTo be sure, people can live with a good 4G connection since most of us use it for calls, emails, streaming, and maybe gaming. But a consistent 4G connection can also be rare.\n\n\nSo let\u2019s get this straight: telcos aren\u2019t perfect. And that will remain the status quo because MCMC, the regulator, has been quite toothless.\n\n\nAnd I\u2019m not talking about patchy connections in some remote part of Malaysia but even in areas within the Klang Valley.\n\n\nAs for 5G, it would be used for research and development and all those highfalutin tech niches. Examples include 5G-powered ports and hospitals in Thailand or Singapore\u2019s automated EV manufacturing facility.\n\n\nIf we want to lure big tech multinationals and nurture innovative startups, then getting 5G right and having some policy certainty there would be great.\n\n\nSo the delay is quintessentially a Malaysian problem, where public infrastructure becomes a politician\u2019s vanity project. After all this is the land where the mind boggles."}
{"title": "Fave exits Indonesia to focus on other \u2018core markets\u2019", "body": "\n\nPhoto credit: Fave\n\n\n\n\nFintech firm \nFave\n has exited Indonesia to focus on its core markets of Singapore and Malaysia as well as its new Indian operations.\n\n\nConfirming the news to\u00a0\nTech in Asia\n, the company said its withdrawal from Indonesia took effect on April 1. The company has advised customers to redeem their vouchers and e-cards by May 31.\n\n\nFave also added that it will keep serving merchants in the country through its sister company \nQwikCilver\n \u2013 which offers end-to-end B2B gift card solutions \u2013 as well as other offerings from its parent firm, Pine Labs.\n\n\nThe company said it can\u2019t specify the number of Indonesian staff affected by the move. \u201cWe are taking steps to minimize any impact on our employees. Fave\u2019s priority is to ensure that our employees are treated fairly and with respect throughout this transition,\u201d a spokesperson added.\n\n\nThe development follows \nJoel Neoh\n, co-founder and CEO of Fave, stepping down last month.\u00a0At the time, Neoh said in a statement that \u201cmillions of consumers across Malaysia, Indonesia, and India use Fave on a daily basis for payments and rewards.\u201d\n\n\nFave, which began as gym subscription service KFit in 2015, got a new lease on life when it acquired Groupon\u2019s businesses in three Southeast Asian countries two years later.\n\n\nFave offers eCard, a digital card that provides cashback, as well as a digital payments system, a deals portal, and a buy now, pay later service. The startup said it reached its highest volumes of transactions with a 40% quarter-on-quarter growth at the end of 2022.\n\n\nThe company was acquired by Pine Labs in 2021 in a \nUS$45 million deal\n.\n\n\nSee also: \nSoutheast Asia\u2019s thriving buy now, pay later players (update)\n\n\nUpdate\n\u00a0(April 19, 5:30 p.m. SGT): This article was\u00a0\nupdated\n\u00a0to include additional comments from Fave."}
{"title": "Indonesia\u2019s ascent to the top of global Islamic fintech faces obstacles", "body": "Indonesia is a leading Islamic fintech hub, but it still lags behind Malaysia and Saudi Arabia, despite the fact that the latter two have smaller Muslim populations.\n\n\nMalaysia and Saudi Arabia remained the first and second Shariah fintech markets in 2022, according to the \nGlobal Islamic Fintech Report\n by research and advisory firm DinarStandard. The study considered factors such as talent, regulation, infrastructure, capital, as well as market and ecosystem.\n\n\nIndonesia improved one rank to third place with an overall score of 64.7%, surpassing the United Arab Emirates.\n\n\nIronically, despite having the biggest Muslim population globally, Indonesia trails behind in market size, reaching only US$4.2 billion in 2021. Malaysia had US$4.8 billion, while Saudi Arabia saw a whopping US$26 billion.\n\n\nMarket size is calculated based on actual transaction volume, and what might have contributed to Indonesia\u2019s modest figure is the 5% Shariah fintech penetration rate. Nevertheless, low penetration rates are a common trend in many Muslim-majority countries, according to local player Hijra Group (previously Alami).\n\n\n\n\nThe Muslim community celebrates Idul Fitri at a public park in the city of Pematang Siantar, Indonesia. / Photo credit: Shutterstock\n\n\n\n\nThat said, the archipelago is home to 61 Islamic fintech players, but the number is only a fraction of the 300 fully licensed fintech firms. Still, 61 is the world\u2019s highest compared to Saudi Arabia\u2019s 38 and Malaysia\u2019s 37 companies.\n\n\nAlthough Shariah fintech is growing rapidly, it has a meager market share compared to the Islamic financial industry at large, says \nYusuf Wibisono\n, director of think tank Indonesia Development and Islamic Studies.\n\n\nHe adds that as of January, Islamic fintech assets in Indonesia stood at 136 billion rupiah (US$9.2 million), less than 0.1% of Shariah non-bank financial industry\u2019s total assets, which reached 148 trillion rupiah (US$9.9 billion).\n\n\nBut there\u2019s significant room for growth. The DinarStandard study predicted that by 2026, the country\u2019s Islamic fintech market will hit US$11.3 billion, while Malaysia will have US$12.1 billion and Saudi Arabia US$52.3 billion.\n\n\nLimited budget, low inclusion\n\n\nThe Indonesian government\u2019s push for Islamic economic development has been far greater than in the previous two decades, says \nWahyu Jatmiko\n, a finance lecturer at the University of Indonesia.\n\n\nSupportive regulations have been put in place, including specific laws on Islamic banking and \nzakat\n, as well as general regulations related to Shariah economics.\n\n\nFurthermore, the country has formed national committees and bodies to accelerate the Shariah finance industry growth.\n\n\nThree large state-owned banks \u2013 Mandiri, BNI, and BRI \u2013 have also \nmerged\n their Shariah units into one entity called Bank Syariah Indonesia.\n\n\nDespite these efforts, Jatmiko says that the national budget for the Shariah finance industry has been limited.\n\n\nThis has led to the committees seeking partnerships with other institutions, such as Bank Indonesia, the Financial Services Authority (OJK), and the Indonesian Association of Islamic Economists (IAEI).\n\n\n\n\nPhoto credit: Shutterstock\n\n\n\n\nThe lack of financial literacy and inclusion has also stunted the growth of Shariah finance.\n\n\nOJK \nreported\n significantly lower Islamic financial literacy and inclusion rates in 2022, at 9.1% and 12.1% respectively, compared to the general financial literacy and inclusion rates of 49.7% and 85.1%.\n\n\nHijra Group CEO \nDima Djani\n says that his company has been trying to solve the issue through market education and a more direct marketing approach.\n\n\nWith this approach, the user acquisition cost was relatively high at first but then decreased \u201cas the Islamic finance industry became more mainstream,\u201d Djani adds.\n\n\nSee also: \nMapping the key Islamic tech startups in Southeast Asia\n\n\nTo address this problem, the Ministry of Religious Affairs must strengthen partnerships with fintech or other startups to promote Shariah products, says \nPandu Sjahrir\n, founding partner of AC Ventures.\n\n\nIn addition, a lot of demand for Sharia businesses may exist in remote areas, so the government should enhance the financial infrastructure to facilitate the transfer and collection of funds from these locations, he says.\n\n\nIn the DinarStandard research, Indonesia scored 4 points for proximity to customers, while Malaysia and Saudi Arabia had 5 points each.\n\n\nLate to the game\n\n\nIndonesia had a slow start in Shariah finance. One reason for this is the country\u2019s political and economic instability during the 1990s, which hindered the development of the financial sector as a whole.\n\n\nIt was only after the 1997 Asian financial crisis that Indonesia started to implement economic reforms and take the necessary steps to create a more stable financial environment.\n\n\n\u201cA top-down approach with government support is the key to growing the Shariah market. The Malaysian government initiated the Islamic Banking Act in 1983 and Saudi Arabia has implemented Islamic banking since the beginning,\u201d says Djani.\n\n\nBank Muamalat\n, Indonesia\u2019s first Islamic bank, was founded in the 1990s when the national banking sector had yet to embrace Shariah banking.\n\n\nThe legal basis for operating an Islamic bank was only briefly mentioned in a 1992 regulation under the term \u201cprofit-sharing banks,\u201d without clear guidelines on the Shariah legal basis and permissible business activities.\n\n\nIt wasn\u2019t until 2008 that \nan Islamic banking law\n was enacted, giving a more comprehensive legal framework to accelerate the growth of the national Islamic banking industry.\n\n\n\n\n(From left) Alami co-founders Harza Sandityo, Dima Djani, and Bembi Juniar / Photo credit: Alami\n\n\n\n\nEven so, the government and market players lacked synergy at that time, resulting in scattered approaches that failed to expedite market penetration, Djani says.\n\n\n\u201cHowever, since the formation of the National Sharia Economy and Finance Committee in 2020, we\u2019ve been seeing stronger support and collaboration between the government and key players in the market,\u201d he adds.\n\n\nBut there\u2019s still a long way to go, not just in terms of regulation. The limited state budget for the Shariah finance industry has undoubtedly affected the progress of its fintech subsector, according to Jatmiko, who is also the executive secretary of IAEI.\n\n\nIslamic fintech companies still depend heavily on conventional VCs in terms of capital because there are only a handful of Shariah-based VCs, Jatmiko says.\n\n\nSee also: \nIndonesia\u2019s big four banks are minting it but need to watch their backs\n\n\nIn 2021, local Shariah bank BTPN Syariah \nlaunched\n a VC subsidiary, but macroeconomic turmoil has hindered funding support for the firm, Jatmiko observes.\n\n\nAC Ventures is among the conventional VCs playing in this field. It \nco-led\n Alami\u2019s US$20 million equity and debt funding round in January 2021 and participated in subsequent rounds.\n\n\nYounger Muslims critical to prospects\n\n\nIndonesia\u2019s 230 million Muslims provide a strong foundation for the Islamic fintech industry to prosper. With a rising middle class and their increasing purchasing power, the market potential for Shariah finance is set to expand further.\n\n\n\u201cFor young Muslims with a growing awareness of the halal lifestyle, the Shariah fintech solution \u2013 being halal and convenient \u2013 will be something closer to their preference,\u201d Djani says.\n\n\nDinarStandard\u2019s report also showed that a new customer base of Muslims under 30, representing 29% of the global population, is a critical determinant of Islamic fintech prospects.\n\n\nSee also: \nIndonesia\u2019s OJK launches more stringent regulations for online lenders\n\n\nHijra\u2019s peer-to-peer lending has been profitable since last year. As a group, the firm has disbursed around US$320 million to finance more than 12,000 MSME projects across 482 cities in Indonesia.\n\n\nIn December 2022, Hijra launched a new digital banking business and said it\u2019s committed to deploying a significant amount to grow the unit.\n\n\nShariah banking assets in Indonesia have reached 500 trillion rupiah (US$33.6 billion), growing 13% annually in the past five years, says AC Ventures\u2019 Sjahrir.\n\n\n\u201cThis demonstrates that customer demand for the [Islamic] financial products is there despite the availability of conventional products,\u201d he notes.\n\n\nCurrency converted from Indonesian rupiah to US dollar: US$1 = 14,866 rupiah."}
{"title": "Funding Societies hits $3b in SME financing", "body": "\n\nFunding Societies\u2019 Singapore leadership team/ Photo credit: Funding Societies\n\n\n\n\nFunding Societies\n, a Singapore-headquartered fintech firm, said it has disbursed US$3 billion in business financing to SMEs in Southeast Asia to date.\n\n\nThe company said that it has served nearly 100,000 companies while its overall \ndefault rate\n remains under 2%.\n\n\nFounded by\u00a0\nKelvin Teo\n\u00a0and\u00a0\nReynold Wijaya\n in 2015, Funding Societies lends between US$500 to US$1.5 million to SMEs in Singapore, Malaysia, Vietnam, Thailand, and Indonesia.\n\n\nIn June 2022, Funding Society \nacquired \nCardUp, a Singapore-based payments company, for an undisclosed amount.\n\n\nThe SME lender added that it\u2019s planning to expand Islamic financing offerings in Malaysia. It also \nrecently appointed\n\u00a0\nChai Kien Poon\n as its Malaysia country manager and Funding Societies Malaysia co-founder \nWong Kah Meng\n\u00a0as group COO.\n\n\nIn February 2022, Funding Societies\u00a0\nraised US$294 million\n in new funding, which consisted of US$144 million in a C+round led by SoftBank Vision Fund 2 and US$150 million in debt financing from other institutional lenders.\n\n\nSee also: \nFunding Societies swipes right on payments in SEA"}
{"title": "Google Cloud appoints Zoom, AWS veteran to lead Malaysia", "body": "\n\n\n\n\n\n\n\n\n\nGoogle headquarters in Mountain View, California / Photo credit: 123rf.com\n\n\n\n\nGoogle Cloud has named \nPatrick Wee\n as the new country manager for its business in Malaysia.\n\n\nWee has more than 20 years of experience in the IT industry and has held leadership roles at Zoom and Amazon Web Services. In the new role, he will lead local operations for Google Cloud and Google Workspace, according to a statement.\n\n\nWee will report to \nMegawaty Khie\n. She is the regional director for Indonesia and Malaysia at Google Cloud and oversees the enterprise, public sector, and corporate and mid-market segments in both countries.\n\n\nThe announcement comes as Google Cloud prepares to launch its first [cloud region](https://cloud.google.com/docs/geography-and-regions) in Malaysia, which will join its 11 other regions in Asia Pacific and Japan.\n\n\nGoogle Cloud claims that it has been attracting big-name customers in Malaysia, such as Axiata Group, Capital A, and Malaysia Airlines.\n\n\nSee also: \nIndonesian startups push back on Google Play\u2019s new billing rules\n\n\nRecently,\u00a0\nAmazon Web Services\n also announced plans to invest \nUS$6 billion\n in Malaysia by 2037 and launch an \ninfrastructure region\n in the country.\n\n\n\n\n\n\n\n"}
{"title": "India\u2019s BetterPlace officially acquires Malaysian recruitment startup (update)", "body": "\n\nPravin Agarwala, co-founder and group CEO of BetterPlace / Photo credit: BetterPlace\n\n\n\n\nBetterPlace\n, an India-based SaaS and workforce management platform, has officially acquired \nTroopers\n, a Malaysian firmt that specializes in part-time staffing and recruitment services.\n\n\nThe deal was first reported by \nTech in Asia\n in March.\n\n\nTroopers was acquired in a deal estimated to be worth between US$15 million and US$20 million, a source told \nTech in Asia\n last month.\n\n\nFounded in 2017 by \nJoshua Tan\n and \nKevin Lee\n, Troopers provides part-time recruitment roles for individuals and offers staffing solutions to companies.\n\n\nThe acquisition will integrate Troopers\u2019 automated gig matching and rostering features into BetterPlace\u2019s platform, according to an official announcement from BetterPlace.\n\n\nThis comes just a month after BetterPlace \nacquired Indonesia-based MyRobin\n for an undisclosed amount.\n\n\nIn a previous interview with \nTech in Asia\n, \nPravin Agarwala\n, BetterPlace\u2019s co-founder and group CEO, had indicated that the acquisition was just the first step in the company\u2019s plans for expansion into Southeast Asia. The firm is looking to invest \u201cnorth of US$50 million\u201d into the region over the next three years, he said.\n\n\nSee also: \nExclusive: Acquiring MyRobin the first of BetterPlace\u2019s SEA plans\n\n\nAgarwala had also \nsaid\n that Better Place was eyeing Malaysia next. The Indian firm also plans to expand into Thailand, the Philippines, and Vietnam, but it\u2019s unclear if this would be done via through further acquisitions.\n\n\nBetter Place is also setting its sights on the Middle East as well as Latin America and Africa.\n\n\nUpdate (April 17, 4:00 p.m. SGT\n): \nThis article was updated to include an official announcement from BetterPlace\n."}
{"title": "Why Malaysia\u2019s government should avoid direct investments in startups", "body": "Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a premium subscription\n.\n\n\nHello reader,\n\n\n\u201cNanny state.\u201d \u201cBenevolent dictatorship.\u201d \u201cAuthoritarian.\u201d\n\n\nThese are some of the terms used to describe or criticize Singapore\u2019s government. For some time now, people have felt like its regulations might be too intrusive or harsh, such as when it bans some things outright.\n\n\nIt\u2019s funny because it seems like the long-term effects of these policies is to make ordinary citizens become more or even too reliant on them. There\u2019s been cases where people \ncall the police\n to deal with mundane issues like inconsiderate neighbors, for instance.\n\n\nIn some ways, it\u2019s a good sign because it shows that public services are reliable enough for the common Singaporean.\n\n\nOn the other hand, overreliance is never a good thing. This appears to be the case with the relationship between Malaysia\u2019s government and the country\u2019s startups. The solution? The government should wash its hands off most direct investments in startups, according to an insider. Our featured premium story explores why.\n\n\nToday we look at:\n\n\n\n\nWhy Malaysia\u2019s government should \nstop directly investing in startups\n \n\n\nWhy TikTok is deleting millions of videos from Indonesia \n\n\nOther newsy highlights such as Alibaba pumping US$353 million into Lazada and Byju\u2019s goal of hitting overall profitability in the June quarter. \n\n\n\n\n\n\nPremium summary\n\n\nWhy can\u2019t we be friends?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe government investing directly in its country\u2019s startups seems to be a noble idea. After all, which government wouldn\u2019t want to support the local tech scene as much as possible? While that might be the case in Malaysia, there are several pitfalls stemming from this arrangement.\n\n\n\n\n\n\nNo one man:\n With Khazanah, Malaysia\u2019s sovereign fund, part of the issue is that its chairman is also the country\u2019s prime minister. This means that if the sitting prime minister isn\u2019t interested in investing into startups, then the fund won\u2019t do much in that area. \n\n\n\n\nMoving the needle:\n According to an anonymous insider who spoke to \nTech in Asia\n, Malaysia should look at investing in young fund managers. Ideally, the government would just allocate a small sum to those fund managers, with subsequent funding dependent on performance. \n\n\n\n\nWhere to come in:\n Our insider source also said the government should focus on setting policy and reducing friction. If there are cases for direct investment, it should be in extremely deep tech sectors where commercial funding is difficult to get, like defense-related endeavors, for example. \n\n\n\n\nRead more: \nMalaysia\u2019s government shouldn\u2019t directly invest in startups, says insider\n\n\n\n\nNews spotlight\n\n\nYou shall not pass\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nTech in Asia\n has been exploring the potential of \nTikTok\n for our content pipeline. For now, it\u2019s mostly just fun stuff \u2013 memes, skits, and short informational videos \u2013 so we haven\u2019t run afoul of the platform\u2019s content guidelines.\n\n\nMany other videos in Indonesia, however, haven\u2019t had the same luck. Around \n7.6 million videos were removed by TikTok\n in the fourth quarter of 2022 alone.\n\n\n\n\n\n\nNot the kind of award you\u2019d want:\n This 7.6 million figure means that Indonesia is among the countries with the most content violations on TikTok. \n\n\n\n\nHow others fared:\n Globally, the number of videos that TikTok deleted was 85.7 million, or 0.6% of the total videos published throughout Q4. Still, it\u2019s better than Q3 2022 \u2013 the platform took down 110.9 million videos.\n\n\n\n\nMinus minors:\n The safety of young users is the biggest concern for the app, as it\u2019s the most frequently violated policy. A lot of TikTok users are underaged \u2013 roughly one in four are under the age of 20. \n\n\n\n\nSee also: \nCapCut could be ByteDance\u2019s next cash cow\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nThe spinoff you\u2019re looking for\n\nLazada has received a \nUS$353 million injection\n from parent firm Alibaba. This development comes shortly after Alibaba announced that it\u2019s going to divide its operations into separate business units. Lazada will now be under Alibaba\u2019s Global Digital Business group, which includes AliExpress, Trendyol, and Daraz.\n\n\n2\ufe0f\u20e3 \nGetting a reaction\n\nReactional Music has raised an \nundisclosed amount of pre-series A money\n from Amanotes, the music publisher behind \nMagic Tiles 3\n. The Swedish startup focuses on music personalization and in-game purchases. Following this investment, Amanotes aims to expand its interactive music ecosystem.\n\n\n3\ufe0f\u20e3 \nHug it out\n\nSocial marketplace Hug has \nraised US$5 million\n in a seed round. Founded in 2022, Hug provides a platform for artists to sell digital and physical goods. Hug will roll out its first capsule collection featuring both digital and physical goods with artist Amber Vittoria, who has collaborated with brands such as Casetify, H&M, and Samsung.\n\n\n4\ufe0f\u20e3 \nWalking the talk\n\nIndonesian edtech firm Cakap has \nraised an undisclosed amount\n for its series C1 round, pushing its valuation to go over US$100 million. It plans to use the funds to develop a blended learning approach, allowing students to study online and offline.\n\n\n5\ufe0f\u20e3 \nSeeing green\n\nIndian edtech giant Byju\u2019s is \nvying for group-level profitability\n in the June quarter. According to CEO Byju Raveendran, five of the company\u2019s six businesses \u2013 Aakash Educational Services, Great Learning, Epic, Osmo, and \u200b\u200bTutorVista \u2013 are either breakeven or profitable.\n\n\n6\ufe0f\u20e3 \nGoing soft\n\nThe Edgeof, a Singapore-based VC firm, is \nset to acquire SoftBank Ventures Asia\n, the venture arm of SoftBank Group. Financial terms were not disclosed. Following the acquisition, a new brand identity will be introduced. It will focus on supporting and developing \u201cgame-changing startups\u201d across Asia."}
{"title": "VCI Global\u2019s stock ends first trading day up 6.25%", "body": "\n\nThe Kuala Lumpur cityscape / Photo credit: Wikicommons\n\n\n\n\nStocks of \nVCI Global\n, a business and technology consulting firm based in Malaysia, jumped by as much as 18% in its first day of trading on the Nasdaq on April 13.\n\n\nIt ended the day at US$4.25, up 6.25% from its listing price of US$4. The company offered 1.3 million shares in its financial debut.\n\n\nFounded in 2013, VCI Global provides investor relations and public relations services to its clients from Malaysia, China, Singapore, and the US. The firm\u2019s expertise lies in the business, tech, and marketing domains for industries such as real estate, ecommerce, and fintech.\n\n\nIn March, VCI Global said it was aiming to offer 1.6 million shares at a price between US$4 and US$6. In 2022, the company planned to sell 5 million shares in the same price range \u2013 a deal that would have netted the company US$15 million at the midpoint.\n\n\nBut it had to scale back the IPO after working closely with Nasdaq to follow the exchange\u2019s listing requirements,\u00a0\nVictor Hoo\n, the firm\u2019s global founder and group executive chair told \nTech in Asia\n.\n\n\nVCI Global will use the proceeds from the IPO for general working capital, business and team expansion, and industry-focused acquisitions.\n\n\nAmid a slowdown in global IPOs due to factors like rising interest rates and growing inflation, a recent report from Ernst & Young \nfound\n that Southeast Asia remains a bright spot for public offerings, especially Indonesia.\n\n\nSee also:\u00a0\nMapping public tech companies in Indonesia"}
{"title": "StanChart VC arm invests in SG wealthtech firm", "body": "\n\nPhoto credit: \nMOZCO Mateusz Szymanski / Shutterstock\n\n\n\n\nSingapore-based \nBetterTradeOff (BTO)\n aims to enable financial institutions deploy bespoke financial planning solutions to their clients quickly and at scale.\n\n\n Laurent Bertrand\n, CEO and co-founder of BTO, told \nTech in Asia\n that banks and insurance providers often have three main pain points in terms of serving mass affluent customers: poor customer engagement, challenges with scaling, and limited client data.\n\n\nThe firm has raised an undisclosed sum from SC Ventures, the VC arm of Standard Chartered.\n\n\nFunding details\n\n\n\n\n\n\nFunding amount:\n Undisclosed\n\n\n\n\nInvestor:\n SC Ventures\n\n\n\n\nStage:\n Unspecified Stage\n\n\nSource\n\n\n\n\nBTO is expanding its operations in Asia Pacific, targeting markets such as Thailand, India, Taiwan, Indonesia, Vietnam, and Japan.\n\n\nThe company said its Asian expansion is driven by \u201cstrong momentum\u201d from banks and insurance providers in the region that are looking to better serve younger, digital-first clients.\n\n\nSee also: \nHow an SG regtech firm won over StanChart and HSBC with \u2018ChatGPT for banks\u2019\n\n\nIn 2021, BTO partnered with Standard Chartered to launch \nSC Goals Planner\n, a digital wealth management and financial planning solution for SG customers."}
{"title": "Malaysia\u2019s \u2018failed Silicon Valley\u2019 is becoming a white elephant", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nOn March 26, business publication \nThe Edge\n \nran\n a sponsored post titled \u201cThe rise of Cyberjaya as a global tech hub.\u201d\n\n\nPaid content is the bread and butter for many media houses \u2013 nothing wrong there. But the article got me thinking of that city, which is roughly about 50 kilometers from Malaysia\u2019s capital, Kuala Lumpur.\n\n\n\n\nShaftsbury Square in Cyberjaya, home to the Malaysian Communications and Multimedia Commission, an industry regulator and state agency / Photo credit: Wikipedia\n\n\n\n\nTo be sure, this isn\u2019t the first sponsored content with the same story angle that Cyberview, the state-owned developer behind Cyberjaya, has paid for. In 2021, it \npublished\n another sponsored article called \u201cRevitalising Cyberjaya into a global tech hub.\u201d\n\n\nCyberview commissioned both pieces to say the same thing: Cyberjaya is a tech hub and has the means \u2013 from infrastructure to talent pool and incentives \u2013 to be so.\n\n\nInterestingly, the paid post last March came right after \nBusiness Insider\n published two articles in January that cast a negative light on Cyberjaya.\n\n\nThe \nfirst piece\n talked about the \u201cghost malls\u201d \u2013 empty shopping centers \u2013 in the city. The \nsecond one\n was about spending a night in a shipping container hotel.\n\n\nSpoiler alert: The reporters muse about unpleasant experiences, and both articles had the keywords \u201cMalaysia\u2019s failed Silicon Valley.\u201d\n\n\nAs far as I can recall, the first publication to \ncall\n Cyberjaya a failure was \nWired\n magazine. The 2016 article had the same trajectory: Reporter scouted the area, noted some disappointing stuff, and then mentioned that plans were under way to reboot the place into a tech hub.\n\n\nLack of political will\n\n\nCyberjaya was born out of then-Prime Minister Mahathir Mohamad\u2019s ambition to create a \u201cmultimedia super corridor\u201d in 1997. Through the years, some large tech multinationals such as NTT, Dell and IBM have set up shop in the city.\n\n\nThis effort resulted in a mesh of company headquarters, research hubs, call centers, and global business or delivery centers. Two local universities were also established in the city.\n\n\nIBM \nshut down\n its Cyberjaya services center in 2021, but the tech giant still maintains an office in Petaling Jaya, a city bordering Kuala Lumpur.\n\n\nBuilding Cyberjaya was part of Mahathir\u2019s plan to put up a tech corridor close to Putrajaya, Malaysia\u2019s administrative center and also his brainchild. Various tax incentives were also thrown into the mix as bait.\n\n\nBut after Mahathir resigned in 2002 and ended his first stint as prime minister, his successors never followed through on his vision.\n\n\nCyberjaya flopped. Some of the systemic problems afflicting the country had a direct impact on the city, including a limited talent pool and market size as well as a lack of collaboration between government agencies and the private sector. But the more important hurdle was how tech startups in Cyberjaya got little or inadequate VC and angel funding.\n\n\nCompeting with a hot address\n\n\nPerhaps the clincher was when Mahathir\u2019s successor, Najib Razak, decided to run his own parallel tech dream. Under his leadership, Malaysia wooed Jack Ma into \nopening\n an Alibaba office in Bangsar South, Kuala Lumpur, in 2018.\n\n\n\n\nFormer Malaysian prime minister Najib Razak and Alibaba founder Jack Ma taking a selfie after a meeting in Putrajaya in 2016 / Photo credit: Najib Razak\u2019s Facebook\n\n\n\n\nBangsar South was originally Kampung Kerinchi. I grew up in this village (or \nkampung\n in Malay), which used to be filled with low-cost flats, squatters, and longhouses. Nowadays, it\u2019s a trendy albeit gentrified address.\n\n\nWhy the name change? Bangsar proper \u2013 a residential suburb \u2013 fetches a premium, so why not slap \u201cBangsar\u201d to name an area on the fringes of the real place?\n\n\nAside from Alibaba, other startup organizations such as \nEndeavor\n and tech companies such as TNG Digital have offices in Bangsar South. Even agencies such as the Malaysian Digital Economy Corporation, whose headquarters are in Cyberjaya, has an office in Bangsar South.\n\n\nBangsar South is also more connected in terms of public infrastructure and transport. Cyberjaya, on the other hand, lags \u2013 in fact, the city only got its own inter-city rail station \nlast month\n.\n\n\nWhether it\u2019s schools, shopping malls or even public transport, downtown Kuala Lumpur and the areas adjacent to it always win.\n\n\nKuala Lumpur still the focus\n\n\nThe only saving grace for Cyberjaya is ample land, which means only big tech companies can benefit from it. Drone services firm Aerodyne, for example, can certainly use Cyberjaya\u2019s dedicated drone testing zone.\n\n\nBut that\u2019s just one niche business among many. SaaS companies won\u2019t move there because Kuala Lumpur is much more attractive in terms of network, facilities and such.\n\n\nTo be sure, Malaysia has its own Silicon Valley: Penang. The country\u2019s second-richest state started out by manufacturing chips and continues to do so. It also has a growing startup community.\n\n\nFor what it\u2019s worth, there\u2019s chatter that Kuala Lumpur, not Cyberjaya, will still be the hub for most startups. Some accelerators and VCs are also thinking of opening labs and education centers in the capital, too.\n\n\nIf all these unfold as predicted, then Cyberjaya will be further left behind. Well, the good news is, you can always fly a drone there."}
{"title": "MDEC appoints politician as non-executive chairperson", "body": "\n\nSyed Ibrahim Syed Noh, MDEC newly appointed chairman / Photo credit: Syed Ibrahim Syed Noh\u2019s Facebook\n\n\n\n\nSyed Ibrahim Syed Noh\n has been appointed as a non-executive chairman at Malaysia Digital Economy Corporation (MDEC) effective April 1.\n\n\nSyed Ibrahim, who\u2019s the member of parliament for the Ledang constituency, hails from Parti Keadilan Rakyat, the political party led by Prime Minister Anwar Ibrahim.\n\n\nMDEC, an agency tasked with executing the country\u2019s digitalization policies, falls under the purview of the Communications and Digital Ministry. Its current minister, Fahmi Fadzil, is also from the same political party.\n\n\nSyed Ibrahim has \u201cextensive experience\u201d in the telco industry, with a stint at state-owned Telekom Malaysia from 1989 to 2014, according to MDEC statement.\n\n\nSee also:\u00a0\nMapping Malaysia\u2019s government tech entities\n\n\nThis isn\u2019t the first time that a politician has been appointed to the MDEC board.\n\n\nSyed Ibrahim\u2019s predecessors, \nRais Husin\n and \nMd Alwi Che Ahmad\n, were politicians when they were appointed to the post.\n\n\nRais is a former supreme council member of of Bersatu, the political party he co-founded with then-prime minister Mahiaddin Yassin. Rais quit the party in 2022.\n\n\nMd Alwi, on the other hand, is a member of the United Malays National Organization."}
{"title": "Malaysia\u2019s Soft Space closes $31.5m round for global expansion", "body": "\n\nSouthern Capital and Soft Space team / Photo credit: Soft Space\n\n\n\n\nDespite the current tech downturn, fintech firm \nSoft Space\n said its revenue has almost doubled in the past two years.\n\n\nThe \nsoftware point-of-sale company\n claimed that 70 financial institutions and partners in Japan, Europe, Oceania, and the Americas use its full-stack payments platform.\n\n\nTo support its global expansion, Soft Space recently closed its US$31.5 million series B1 round led by Southern Capital Group, a private equity firm operating in Singapore and Kuala Lumpur.\n\n\nFunding details\n\n\n\n\n\n\nFunding amount:\n US$31,500,000\n\n\n\n\nLead investor:\n Southern Capital Group\n\n\n\n\nOther investors:\n Transcosmos, JCB, Hibiscus Fund, RHL Ventures, KB Investment\n\n\n\n\nStage:\n Series B1\n\n\n\n\nThis round includes last year\u2019s US$5 million \ninjection\n by JCB, the international payment giant, as part of a partnership.\n\n\nTapping into the Malaysia-based company enabled JCB to better link Japanese customers to Southeast Asia, both sides said at the time.\n\n\nMore details\n\n\n\n\n\n\n\n\nSoft Space\n\u2192\n \n\n\nThe company was founded in 2012 by \nChew Soon Chang\n.\n\n\n\n\n\n\n\n\n\n\nStage\n\n\nAmount (US$)\n\n\nInvestors\n\n\n\n\n\n\nSeries A\n\n\n5 million\n\n\nTranscosmos\n\n\n\n\n\n\nSeries B\n\n\nUndisclosed\n\n\nSumitomo Mitsui Financial Group\n\n\n\n\n\n\nSeries B1\n\n\n31.5 million\n\n\nHibiscus Fund, KB Investment, JCB, Southern Capital Group, transcosmos, RHL Ventures\n\n\n\n\n\n\nTotal\n\n\n36.5 million\n\n\n\n\n\n\n\n\nSee also: \nCan SEA catch up to open banking in the West?"}
{"title": "Bukalapak acquires majority stake in Malaysia\u2019s iPrice", "body": "\n\n\n\n\n\n\n\n\n\n(From left) iPrice Group CEO Paul Brown-Kenyon and co-founders David Chmela\u0159 and Heinrich Wendel / Photo credit: iPrice Group\n\n\n\n\nBukalapak\n, an Indonesian ecommerce major, has bought a majority stake in \niPrice Group\n, a price comparison platform.\n\n\nWithout disclosing the amount iPrice Group co-founder \nHeinrich Wendel\n\u00a0told \nTech in Asia\u00a0\nthat\u00a0Bukalapak invested \u201ca sufficient amount of capital.\u201d\n\n\nBukalapak said the acquisition was part of its strategy to focus on niche marketplaces and grow faster. Meanwhile, iPrice noted that the partnership would help it reach more consumers and offer more deals and discounts across new categories and regions.\n\n\nIn 2014, Wendel established iPrice with \nDavid Chmela\u0159\n. The startup enables online users to compare product specifications, prices, and seller feedback. It has raised about US$26 million in funding since inception, according to \nCrunchbase\n data.\n\n\n\n\nIn June 2022, the company laid off 20% of its total workforce amid the economic downturn. iPrice Group said it had to scale back \u201cseveral aspects\u201d of its operations, including projects such as consumer lending comparison and user experience upgrades for its main app.\n\n\n\u201cWhen the markets changed rapidly in Q2 2022, we had to make the tough decision to cut these initiatives and refocus the company back on our core,\u201d Wendel said.\n\n\n\n\nAfter the deal, iPrice Group will continue to operate independently. It is targeting the gaming space and and entering Australia.\n\n\nSee also: \nBukalapak\u2019s financial performance in 7 charts\n\n\nWendel said iPrice also intends to \u201cmeaningfully\u201d contribute to Bukalapak\u2019s goal of reaching profitability this year. The Indonesian ecommerce major recently posted \nUS$130.8 million\n in profit and US$15.6 million in adjusted losses for 2022.\n\n\n\n\n\n\n\n"}
{"title": "YC shrinks cohorts, sees less SEA, India investments", "body": "Y Combinator has been quite active in the development of the startup ecosystem in Southeast Asia and India, but the recent numbers indicate a slowdown.\n\n\nIn the past two years, there has been a decline in the number of Southeast Asian and Indian startups participating in Y Combinator\u2019s program, according to the firm\u2019s \nstartup directory\n, which lists publicly launched companies from its cohorts.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe startup enabler holds its accelerator program twice a year: the Winter (W) edition runs from January to March, and the Summer (S) one takes place from June to August.\n\n\nCohort sizes have always fluctuated, but out of the 254 public participants in the latest batch (W23), there were only 14 startups from Southeast Asia and India.\n\n\nIn fact, this figure marked an over 4.5x decrease from the W22 group, which had 65 startups from the two regions. Overall, this cohort was also the largest in size, having 333 startups in total.\n\n\n\n\nThat said, Y Combinator had smaller cohorts in the recent past, but these batches had greater representation from India and Southeast Asia \u2013 an example being the 2020 groups.\n\n\nThe ratio of Southeast Asian and Indian startups to the total cohort size has also shrunk. These companies only made up 5.5% of W23, marking the lowest ratio since S18 \u2013 nine batches ago.\n\n\n\ufeff\n\ufeff\n\ufeff\n\ufeff\n\n\nA spokesperson for the company tells \nTech in Asia\n that batch sizes in general have decreased, and this was an \u201cintentional\u201d decision.\n\n\nThe person cited three reasons why the firm decided to reduce the startups it funded from W22 to S22: the economic downturn, its impact on the venture funding environment, and the return of in-person operations.\n\n\n\ufeff\n\ufeff\n\n\nThe California-headquartered accelerator has certainly felt the pinch of the macroeconomic environment.\n\n\nLast month, the firm \u2013 whose portfolio includes Stripe, Opensea, and Xendit \u2013 \nlaid off 20% or 17 of its staff\n in its late-stage investing team, opting to focus on supporting new startups.\n\n\nPrior to this, Y Combinator was active in a number of follow-on deals such as \nDurioo+\u2019s US$2.85 million seed funding\n and Gimo\u2019s \nUS$5.1 million\n series A round, to name a few. The startup enabler also led \nStrive\u2019s US$1.3 million round\n.\n\n\nY Combinator\u2019s layoffs follows news that the company had 30% of its portfolio exposed to the Silicon Valley Bank collapse.\n\n\nMany of its portfolio companies in India and Southeast Asia also had accounts with the bank, which would have been affected as well.\n\n\nOn the other hand, similar firms such as Antler has vowed to invest in more \nIndonesian startups\n, with plans to \nexpand its Southeast Asian footprint\n. Last year, the company also \nannounced an India-based residency for entrepreneurs\n.\n\n\nSingapore-based accelerator Iterative also welcomed \n33\n \nfirms\n \u2013 almost \ndoubling\n \nthe 2021 total\n.\n\n\nSee also: \nRecession Run: Iterative\u2019s $55m plan amid a downturn\n\n\nLast year, Y Combinator saw the number of investments in Southeast Asia and India fall by 9% from the year before.\n\n\n\n\nThis raises a question whether Y Combinator is reducing its focus on these regions, and why?\n\n\nIn general, startup funding in India and Southeast Asia continues to dry up.\n\n\nIn Southeast Asia, \ndeal value fell by a third\n in 2022 to US$17.8 billion, down from a high of US$25.8 billion in 2021. Though the latest figure still topped pre-pandemic levels, the large drop from the year prior marked a slowdown in investment into the region.\n\n\nIndia, which ranks fourth globally by VC funding, saw funding value \ntumble by 38%\n in 2022.\n\n\nRecently some startup programs even exited the region. Last November, UK-based venture builder \nEnterpreneur First halted its operations in Singapore\n and pulled out of the region, citing a lack of deeptech talent.\n\n\n\n\nPhoto credit: Y Combinator\n\n\n\n\nRegardless, Y Combinator says that it\u2019s not reducing investments in Southeast Asia and India, nor have application numbers from the region fallen.\n\n\nThe representative says that the \u201cnumber of founders funded in each country fluctuates,\u201d and that the firm invests in founders, not ideas or verticals.\n\n\n\u201cWe fund companies in any market and will continue to fund the best companies moving forward,\u201d the spokesperson concludes.\n\n\nFollowing the hype surrounding ChatGPT, the firm has \nrecently been focusing on\n investing in artificial intelligence firms, which are scarce in Southeast Asia and India. It could be a reason for this momentary shift in focus away from these two regions."}
{"title": "SG, Malaysia announce payment system linkage", "body": "\n\nPhoto credit: \nstpsae / 123RF\n\n\n\n\nThe \nMonetary Authority of Singapore\n (MAS) and \nBank Negara Malaysia\n have linked QR payments between the two countries.\n\n\nThe move will enable customers of participating financial institutions to make retail payments to merchants in both countries through QR codes. These customers will be able to scan codes with Singapore\u2019s NETS (Network for Electronic Transfers Singapore) and Malaysia\u2019s DuitNow.\n\n\nMAS also said that person-to-person transfers and remittances between Singapore and Malaysia will be supported by the end of the year.\n\n\nThe link was initially announced in \n2021\n, with MAS saying at the time that remittances between Singapore and Malaysia reached S$1.3 billion (US$980 million) in 2020.\n\n\nParticipating financial institutions from Singapore are DBS Bank, OCBC Bank, and UOB. Meanwhile, those from Malaysia include Ambank Malaysia, Boost, CIMB Bank, Razer Merchant Services, and TNG Digital.\n\n\n\u201cWe will continue to work closely with our partners to accelerate our digitalization agenda toward increased regional economic and financial integration,\u201d said Tan Sri Nor Shamsiah Mohd Yunus, Bank Negara Malaysia\u2019s governor.\n\n\nSee also: \nWinners and losers of SG and India\u2019s novel PayNow-UPI linkage\n\n\nThe development follows MAS\u2019 similar deals with the \nReserve Bank of India\n and Thailand\u2019s \nPromptPay\n.\n\n\nCurrency converted from SG dollar to US dollar: US$1 = S$1.33."}
{"title": "Capital A\u2019s financial health in 3 charts", "body": "Kuala Lumpur-based Capital A, listed in the Bursa Malaysia stock exchange, recently announced its \nfinancials for the fourth quarter of 2022\n. Below are three charts \u2013 updated quarterly \u2013 that track the group\u2019s performance:\n\n\n\n\n\n\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.41 ringgit"}
{"title": "Malaysia\u2019s government shouldn\u2019t directly invest in startups, says insider", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles.\n\n\nI\u2019ve been talking about the Malaysian government\u2019s tech agencies for a while, and this time round, I thought it would be good to get an insider\u2019s take on it.\n\n\n\n\nSovereign wealth fund Khazanah Nasional has been given a mandate to deploy funds for startups this year. / Pic credit: Khazanah Nasional\n\n\n\n\nGiven the nature of the topic, this person will be anonymous. I can vouch for this particular individual as they have a wealth of experience in working at and with government-owned tech agencies and institutional investors.\n\n\nIt\u2019s a timely discussion: Prime Minister Anwar Ibrahim has made it clear that \n\u201cunicorn farming\u201d\n is on the agenda. He has deployed state-owned institutional investors or government-linked investment companies (GLICs), such as sovereign fund Khazanah Nasional and private employees\u2019 pensions pot Employees Provident Fund.\n\n\nSovereign fund Khazanah has already made a move by backing Gobi Partners. Both recently \ninvested\n in Kuala Lumpur-based Care Concierge, a senior-care solutions platform.\n\n\nGovernment tech agencies under various ministries have also been tasked with a similar mandate. The Malaysian Digital Economy Corporation, a government agency, has \npaired up\n with audit firm KPMG to farm 20 unicorns by 2025.\n\n\nAnd as these institutes and agencies hobble along, investors and founders will inevitably have to deal with them. So hopefully this will be an insightful read.\n\n\nHere is my interview with this anonymous source, edited for brevity and clarity:\n\n\nBriefly tell us how an entity like Khazanah makes investment decisions for startups?\n\n\nIf we rewind to 2012, one of the major investments Khazanah made was in Alibaba. It was more of an opportunistic investment and has been quite successful.\n\n\nThen Khazanah decided to conduct a study since it was looking for a more structured approach to tech investments and went on to form what is called the Investment and Technology team.\n\n\nIts strategy is varied. You can make direct investments into companies or make them indirectly through funds. An organization like Khazanah would usually invest in series C rounds and greater. Firstly, anything lower or earlier than that doesn\u2019t move the needle much in financial returns.\n\n\nSecondly, the process was not conducive for small deals. It is a very structured \u2014 you can call it cumbersome \u2014 investment process. To be fair, things may have changed recently under the new CEOs.\n\n\nThe process had been quite stringent. If you want an investment of a ringgit or a million ringgit, the process is the same.\n\n\nThirdly, once Khazanah invests, there\u2019s the post-investment monitoring. So, the process to monitor after the investment was quite expensive and detailed. Impose the same rigor on a young company, it\u2019ll encumber the team to meet reporting standards, when they ought to focus on nailing down product-market fit or acquiring users, for instance.\n\n\nAlso, given the size and legacy of Khazanah, the fund had a private-equity mindset. It didn\u2019t have internal staff that could deal with early-stage companies or those with the expertise to deal with things such as product-market fit or hiring. And, Khazanah\u2019s approach to series C onward was closer to a private equity type of deal.\n\n\nOther government-run institutional investors or GLICs have a similar setup: They may have a different internal process for investments as well as risk appetite, but the structure is about the same as Khazanah\u2019s.\n\n\nKhazanah, in particular, keeps being negatively benchmarked against Singapore\u2019s Temasek. Why?\n\n\nTemasek is definitely braver \u2013 I think Khazanah was a lot more adventurous, but the mandate completely changed after Mahathir Mohamad became prime minister again in 2018.\n\n\nHe had different views and tried to untangle many of the things Khazanah embarked on since 2012.\n\n\nRemember that it was his government \u2013 particularly then economic affairs minister Azmin Ali \u2013 that played up Khazanah\u2019s \nfailed investment\n in an India-based online lingerie venture.\n\n\nAlso, it was under Mahathir\u2019s government that Khazanah \nsold\n its 2.3% stake in Sea Group for 612 million ringgit (US$138 million) in 2019 after investing 650 million ringgit (US$147 million) in 2016.\n\n\nWe need to understand that with investments, you can\u2019t be 100% successful. Even Warren Buffet doesn\u2019t win every time. But we, the public as well as the politicians, are also culprits. We highlight only the losses.\n\n\nWe didn\u2019t highlight Khazanah\u2019s success with Alibaba, for example, where the sovereign wealth fund made a return of US$1.2 billion on an investment of US$250 million.\n\n\nStructurally, Khazanah\u2019s chairman is also the prime minister. The finance minister and \u2013 depending on the regime \u2013 the economic affairs minister, sits on the board.\n\n\nSo, if the prime minister of the day is not into startups, then Khazanah won\u2019t move much in that direction. It\u2019s the same with other GLICs too since they report either to the prime minister or finance minister.\n\n\nBut it seems tech investments are back on the agenda with this government. What will move the needle?\n\n\nThe focus this time has to be young fund managers. Some of these institutions need to take some adventurous steps to do this.\n\n\nI say this because if we take Temasek, they seed young or first-time managers. Some of the names you know today \u2013 such as Jungle Ventures \u2013 that were a product of this initiative.\n\n\nThey allocate a sum, say about 10%-20% of your fund size, and in a way, place a bet on or invest in your fund. So Temasek gives you the seed and you raise the remaining 80% or so. Then you can go to market with validation from a large institution.\n\n\nAnd then for the second or third funds, the top-up will depend on your first fund\u2019s performance.\n\n\nWe can\u2019t run away from the fact that corruption allegations and charges have been a major problem in Malaysia. Every time I engage overseas investors, they don\u2019t take us seriously. \u201cIs this fund for \u2018friends and family?\u2019\u201d is what I get asked \u2013 and I don\u2019t blame them.\n\n\nBy investing in young fund managers, we avoid these problems or at least mitigate them. Otherwise, we\u2019ll be lagging.\n\n\nFor example, there aren\u2019t that many series A funds here. Penjana Kapital was supposed to do this. But its performance has come under \ncriticism\n.\n\n\nHow do we avoid another Penjana Kapital then?\n\n\nIf we want to restructure the space, the government shouldn\u2019t be a direct investor. Take Penjana Kapital, the government directly owns the company.\n\n\nInstead, the government should set policy, reduce friction, or red tape, and if they want to invest directly, it should be in very, very deep tech sectors, where no commercial funds will reach in the beginning \u2013 like defense-related stuff. For example in the US, the Central Intelligence Agency has its own VC arm, In-Q Tel.\n\n\nSo, GLICs can pick up the heavy work to invest, because they can fall on their asset allocation.\n\n\nThere are some legitimate concerns such as deal size. In Malaysia, deals are usually small. But they can still consider putting aside 0.1% of their allocation to local startups and fund managers.\n\n\nHere, there\u2019s no taxpayer money to be touched. True, GLICs are public institutions in a way but they don\u2019t take public money.\n\n\nSome like Khazanah pay dividends to the government yearly. So the money will come from these institutions\u2019 books and they can also tolerate long-term investment horizons.\n\n\nBut, in an organization like Penjana, where the government is the owner, not only is there the issue of using public money, but any change in government may affect the company\u2019s sustainability. For example, the minister backing Penjana today may be out tomorrow if he or she loses the election.\n\n\nThen we have to remember that many people in government tech agencies are either bureaucrats or those who\u2019ve not even worked in a tech company. They may also not be commercially driven because they have no real stakes in the game or never had to raise funds in their entire lives.\n\n\nFinally, there are structural issues. Some of these government agencies are allocated so-called soft loans by the government, where they in turn will need to pay back the government a small profit rate.\n\n\nHere the government stands to make some money, but then these agencies are going to invest in startups that may not have cash flow. So how are you, the agency, going to make that small extra percentage to repay the government?\n\n\nThat\u2019s why in Malaysia, you\u2019ll come across term sheets that have redeemable convertible preference shares (RCPS) baked into them, where an agency will be able to call back the funding or loan at any time.\n\n\nThis makes planning difficult if you are running a company because they can trigger the RCPS at any time. The agency acts as a debt provider in that sense. Then you have issues where the agency wants a joint operating account and playmaker checker, where one person creates a transaction and the other (usually an agency representative) confirms or authorizes the same.\n\n\nThese things have got to go.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.41 ringgit"}
{"title": "Unpacking Amazon and Tesla\u2019s deals in Malaysia", "body": "Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a premium subscription\n.\n\n\nHello reader,\n\n\nI\u2019ll be honest: As a consumer living in Singapore, Amazon and Tesla don\u2019t really show up on my radar.\n\n\nI do most of my shopping on regional ecommerce platforms like Shopee \u2013 I only use Amazon to buy ebooks for my Kindle \u2013 and given that I dislike driving and have no intentions toward car ownership, most of what I hear about Tesla is in relation to Elon Musk.\n\n\nBut of course, Amazon is more than just an ecommerce company, and while I may not be interested in Tesla\u2019s electric cars personally, lots of other people are. Them investing and setting up something in a country \u2013 whether it\u2019s data centers, sales offices, or factories \u2013 is usually good news.\n\n\nRecently, both companies have announced deals in Malaysia. But are these as big a deal (haha) as they\u2019re cracked up to be? My colleague Emmanuel unpacks them in today\u2019s premium story.\n\n\nToday we look at:\n\n\n\n\n\n\nWhat Amazon and Tesla\u2019s deals in Malaysia are all about\n \n\n\nSingapore-based proptech firm Ohmyhome\u2019s IPO \n\n\nOther newsy highlights such as Pinduoduo getting banned from the Google Play Store and Vingroup\u2019s investment in ride-hailing firm Be\n\n\n\n\n\n\nPremium summary\n\n\nSo, what\u2019s the deal?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nMalaysia\u2019s incumbent government seems pretty excited about Tesla and Amazon\u2019s upcoming investments into the country.\n\n\nAmazon is apparently going to commit US$6 billion until 2037, which will include building data centers. Meanwhile, Tesla will set up a sales and service office in Malaysia and build a network of electric car superchargers. Let\u2019s go a little deeper into this.\n\n\n\n\n\n\nThere\u2019s been a bit of a lag:\n Malaysia seems a bit late to the game as Amazon has already poured in US$6.1 billion in Singapore since 2010. Last year, it announced its intent to invest US$5 billion into Indonesia. Meanwhile, Indonesia has plans to entice Tesla to build a \u201cgigafactory\u201d in the country.\n\n\n\n\nWe\u2019ve seen this before:\n This isn\u2019t the first time tech giants have made plans in Malaysia, and there\u2019s grounds for skepticism around how they\u2019ll pan out. Microsoft, for one, had plans to build a data center in 2014 in Johor but it never happened. In 2021, the firm said it intends to build a data center in Kuala Lumpur instead, but it didn\u2019t mention anything about its previous commitment. \n\n\n\n\nIssues in the system:\n While it\u2019s good optics to have major tech companies keen on Malaysia, there are many systemic hurdles that need to be overcome to see their projects through. \n\n\n\n\nRead more: \nScrutinizing Amazon\u2019s and Tesla\u2019s Malaysian deals\n\n\n\n\nNews spotlight\n\n\nMaking a home on Nasdaq?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nOhmyhome, a Singapore-based proptech firm, ended its first day of trading marginally above its IPO price of US$4 per share. Here are \nthe finer details\n:\n\n\n\n\n\n\nThe shares:\n The firm aims to sell over 3.7 million shares for the IPO, with 2.8 million coming from the company and the rest from Anthill Realtors, which is also owned by Ohmyhome\u2019s founders.\n\n\n\n\nThe money:\n Ohmyhome is looking to raise US$11.2 million from the IPO. Meanwhile, Anthill Realtors aims to net US$3.9 million.\n\n\n\n\nThe question mark:\n The firm\u2019s listing comes as a surprise as it\u2019s still a relatively small startup \u2013 research has shown that small companies tend to underperform in their IPOs.\n\n\n\n\nSee also: \nOhmyhome IPO raises red flags\n\n\n\n\nIn partnership with\n\n\n\n\nSolutions for smart cities of the future, all in one place\n\n\n\n\nTechnology has transformed our lives and the cities we live in. Keyless locks, voice-controlled lights, real-time traffic monitoring \u2026 the future is here.\n\n\nGear up for an even more exciting future by learning more about the latest innovation and technology for smart cities at InnoEX 2023.  Held at the Hong Kong Convention and Exhibition Centre from April 12 to 15, the event will bring together influential tech experts and thought leaders to discuss cross-sector collaborations, share upcoming trends, and exchange insights into opportunities in the smart city space.\n\n\nApart from keynote sessions by speakers such as Matthew Griffin, founder of the 311 Institute, and Ayesha Khanna, CEO of Addo.ai, the event will also include exhibitions by sector\u2019s leading players as well as provide opportunities for networking and discussions on what our cities could look like in the years ahead.\n\n\nSign up\n for the event today.\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nTo Be or not to Be\n\nVingroup\u2019s Green and Smart Mobility (GSM) has announced that it \nwill back\n Vietnamese ride-hailing firm Be Group. On top of a direct investment, the collaboration will also see the two firms partner with Vietnam Prosperity Joint-Stock Commercial Bank to offer exclusive policy deals for Be drivers.\n\n\n2\ufe0f\u20e3 \nNo Google Play Store for you\n\nGoogle \nhas suspended\n Pinduoduo from the Play Store after malware was found in versions of the Chinese ecommerce firm\u2019s app outside of Google\u2019s platform. The development follows Pinduoduo being called out by Chinese security experts for allegedly developing Android apps with malware aimed at tracking users.\n\n\n3\ufe0f\u20e3 \nRecovery in sight\n\nAuros, a Hong Kong-based crypto exchange, \nhas secured US$17 million\n in a round led by Vivienne Court. This is the first time that the crypto firm has raised funding since the downfall of FTX \u2013 Auros saw around US$20 million worth of its assets affected by the collapse.\n\n\n4\ufe0f\u20e3 \nReady for regulation\n\nThe Monetary Authority of Singapore (MAS) is \nreviewing feedback\n for its proposed crypto regulations and is aiming to publish its response later this year. The agency has been working with industry stakeholders to make crypto activities safer for its users.\n\n\n5\ufe0f\u20e3 \nLet\u2019s go to Dubai\n\nCrypto.com \nhas received\n a minimal viable product preparatory license from the Virtual Assets Regulatory Authority in Dubai. This follows the initial provisional approval that Crypto.com received in June 2022, with the preparatory license being the next step toward an operational license in Dubai.\n\n\n6\ufe0f\u20e3 \nBad times\n\nSocial ecommerce firm Avana is \nstruggling to pay\n its employees in Indonesia due to a lack of capital. It has made several job cuts since November 2022, which have affected 30 members of its team in the country."}
{"title": "Touch \u2018n Go loses its monopoly in Malaysia. What now?", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nOn Sunday, Prime Minister Anwar Ibrahim received thunderous applause after \ntelling\n youths during a town hall that his government will review the monopoly of digital payment provider Touch \u2019n Go (TNG).\n\n\n\n\nA toll plaza in Malaysia / Photo credit: Touch \u2018n Go\n\n\n\n\nThe firm has been a thorn among users simply because it disallowed them to pay for public transport and tolls with anything other than its prepaid card.\n\n\nImagine driving interstate and you are short of cash as you approach the toll booth. Or, you\u2019re rushing to a meeting and you get off the train only to find out that your TNG card has insufficient balance? Yeah\u2026 What you have to do is ensure that you have cash on hand to either reload your card or pay the difference at the counter.\n\n\nFor toll fare payment, you can link your card to TNG\u2019s e-wallet. If there\u2019s not enough money in the card, the fare is deducted from the e-wallet.\n\n\nThe other problem is TNG\u2019s RFID: a sticker with a radio-frequency chip that drivers need to attach to their front windscreen.\n\n\nThis tag is unique to each user and is synced to TNG\u2019s e-wallet. So a driver simply needs to pass through the RFID toll gate, and the fees are deducted from the e-wallet directly. But take-up is \nslow\n and toll companies haven\u2019t increased RFID lanes, leading to congestion during peak hours.\n\n\nWhat followed the town hall was a swift action from Anwar\u2019s administration. Just after a few days, it \nannounced\n that first, commuters can also use credit or debit cards to pay for bus and train fares. Second, there will be a \nphased introduction\n of the said payment system for tolls.\n\n\nThe unprecedented announcement came with promises that the measures will be implemented in the coming months. Why unprecedented? Simply because of how quickly things progressed since the town hall. Government moving fast?\n\n\nAnyway, this has led to chatter about the end of TNG\u2019s dominance. To be sure, the government did say that it isn\u2019t going to \nkill off\n the fintech firm for good reason: Doing so will surely invoke some sort of severance clause requiring the government to pay for breaking up the state-controlled monopoly.\n\n\nQuicker tech adoption\n\n\nSo, what does this mean? Well, obviously, financial services companies will get a chance to ride this by issuing cards to pay for public transport or toll fares. Fintech companies such as Wise have also released their prepaid cards.\n\n\nThe number of providers will increase. I won\u2019t rule out the likes of Grab and Sea joining the bandwagon too simply because they have digital wallets. So it\u2019s just a matter of linking their wallets to a smart card.\n\n\nGrab and Sea are also digital bank licensees, so naturally users can also connect their bank accounts to their e-wallets and cards. Malaysia\u2019s largest bank Maybank already has this system in place with its MAE prepaid Visa debit card. Customers can sync it with the Maybank e-wallet, also called MAE, as well as with their account.\n\n\nSecondly, Malaysia will be moving to a \nmulti-lane free flow system\n, an electronic tolling tech that enables smooth traffic flow. Motorists don\u2019t need to slow down or stop as they approach the highway. And there will be no gates. The government has earmarked 3.46 billion ringgit (US$800 million) for this.\n\n\nMissed opportunity\n\n\nBut what about TNG? For starters, it suffered the textbook monopoly problem: failure to innovate. To recap: TNG was introduced in 1997, is government-owned, and was Malaysia\u2019s first fintech offering. The smart card is its flagship product and is similar to Hong Kong\u2019s Octopus card.\n\n\nMalaysian identity cards also have the TNG features embedded into the chips.\n\n\nBut, somehow, TNG didn\u2019t capitalize on all its advantages. When the firm rolled out the TNG e-Wallet, it couldn\u2019t sync to the prepaid card. This means you couldn\u2019t use the app to top up your card\u2019s balance. You needed to go to a physical kiosk, a bank, a petrol station, or the nearest grocery store for that.\n\n\nThe state-owned highway operator, PLUS, wanted to roll out its own open payments system that would allow road users to use services aside from TNG\u2019s.\n\n\nBut TNG\u2019s major shareholder CIMB Bank \nsued\n PLUS. In 2020, both reached a settlement but the details were not made public.\n\n\nThe suit was another awkward moment in this whole debacle: CIMB and PLUS are controlled by sovereign wealth fund Khazanah. Talk about family drama.\n\n\nTNG Digital, the subsidiary in charge of the e-wallet, would soon be substantially owned by China\u2019s Ant Group and its subsidiaries. To be sure, since TNG is no longer TNG Digital\u2019s major shareholder, Ant\u2019s investment in the latter is insulated from what\u2019s happening at TNG. Also, the investment is more toward the digital wallet.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nOwnership nuances here also mean that TNG and TNG Digital remain further apart. The former is wholly owned by CIMB Bank, which in turn is controlled by Khazanah. But TNG Digital isn\u2019t \u2013 the government doesn\u2019t even have a golden share in it. This means that the mobile wallet provider is a purely commercial entity.\n\n\nTNG resolved the top-up problem by issuing a newer or \u201cenhanced\u201dcard that can be reloaded through the e-wallet app. But till today, that card is an exotic species. Questions remain as to why the card isn\u2019t \nwidely available\n, more so for one issued by a monopoly.\n\n\n\n\nA poster of the Touch \u2018n Go Enhanced Card / Image credit: Touch \u2018n Go\n\n\n\n\nThe further divide between TNG and its e-wallet arm means that the original dream of having a monolithic tech ecosystem hasn\u2019t been realized. Whether this is good or not will be for another day and isn\u2019t the purpose of my column today.\n\n\nRiding on momentum\n\n\nWhat we know is that Prasarana, the country\u2019s public transport operator, has been experimenting with open payment systems and was planning to \npilot\n one in 2020 for intercity rail services.\n\n\nIf we were to take the PLUS incident above and Prasarana\u2019s program, then the reason the government is moving at warp speed is because there\u2019s already work done.\n\n\nBut there are still details that need to be hammered out. If the government isn\u2019t killing TNG, then does this mean that payment services will have to ride on the firm\u2019s infrastructure? If so, there will be costs that will definitely be pushed to users \u2013 a \u201ctransaction fee\u201d of sorts.\n\n\nEasily there will be problems that the government will need to address as it chugs along toward the goal of having a multi-lane free-flow system. For example, how do you ensure road users pay for toll fees if they pass through the gate with insufficient funds? There needs to be not only a legal framework but also a tech component to this, like Singapore\u2019s \nERP\n system: If you drive through a gantry without paying, you\u2019ll receive a violation notice, so you\u2019ll have to pay the charge plus an administrative fee.\n\n\nSuch scenarios can certainly spell opportunity for both tech upstarts and incumbents.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.42 ringgit"}
{"title": "1337 Ventures names 11 finalists for accelerator with RHB Banking", "body": "\n\nThe 1337 Ventures team / Photo credit: 1337 Ventures\n\n\n\n\nMalaysian VC firm \n1337 Ventures\n and local financial services provider \nRHB Banking Group\n have\u00a0announced the 11 finalists of their accelerator focused on startups driving digital adoption.\n\n\nThe \nRHB Xcelerator\n aims to link the bank with the region\u2019s tech and startup ecosystem.\n\n\nSelected startups for the program will be mentored by RHB business leaders and get paid for developing proof-of-concepts with the bank. The top two teams may also receive potential seed fundraising opportunities with the help of 1337 Ventures.\n\n\nNine of the companies are based in Malaysia, with the remaining two coming from Singapore.\n\n\nSee also:\u00a0\nHas Malaysia\u2019s largest VC lost its luster?\n\n\nThe 11 finalists of the program are:\n\n\nAgiliux Cloud Insurance\n\n\nAgiliux digitalizes the commercial insurance industry by providing software for insurance brokers.\n\n\nAlfie Tech Asia\n\n\nAlfie specializes in using alternative credit scoring (ACS) for microfinance. ACS integrates behavioral, digital, and financial data points to predict the credit risk of a borrower.\n\n\nDu-it\n\n\nDu-it offers flexible payment options that cater to its users\u2019 budgets.\n\n\nMoby\n\n\nMoby is a buy now, pay later service that offers installment plans that last up to six months and have 0% interest fees.\n\n\nPayRecon\n\n\nPayRecon is a marketplace software provider offering IT products and services catered to SMEs.\n\n\nPewarisan\n\n\nPewarisan, meaning inheritance in Malay, provides digital solutions for Islamic inheritance planning. Its offerings include succession planning and estate management.\n\n\nProtos Labs\n\n\nProtos Labs is a Singapore-based cyberinsurtech company that helps insurers to better price their cyberinsurance policies. It also offers active protection for policyholders against cyber attacks.\n\n\nSwipey\n\n\nSwipey helps Malaysian businesses in managing their corporate prepaid cards, expenses, invoices, and more through a simplified dashboard.\n\n\nThe Woke Company\n\n\nThe Woke Company is a Singapore-based platform that mentors investors through structured four-week programs. It also provides stock market analyses to inform investing decisions.\n\n\nTrinityEco\n\n\nTrinityEco provides sustainability reports for both physical and digital assets.\n\n\nVircle\n\n\nVircle (short for Visible Circle) enables parents to give their kids pocket money through an app and a payment card, helping them teach their children how to save and spend responsibly."}
{"title": "Don\u2019t build a business to just capture Malaysia, says VC", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles.\n\n\nWe don\u2019t usually hear about Malaysia\u2019s so-called founders 2.0 \u2013 entrepreneurs with successful exits. I wanted to use the term \u201ctech mafias\u201d but then I\u2019d be caught in the crosshairs of grammar gurus.\n\n\n\n\nScaleup Malaysia managing partner Tay Shan Li. / Pic credit: Tay Shan Li\n\n\n\n\nThis time around, I wanted to get in touch with someone successful but under the radar. So, after some digging and asking around, I connected with Tay Shan Li, a managing partner at Kuala Lumpur-based accelerator ScaleUp Malaysia.\n\n\nAfter years in corporate finance and investment banking, Tay ventured into the startup world as co-founder of Baby Dash, an online platform for baby products. Her past accolades include working with PricewaterhouseCoopers and the CIMB banking group.\n\n\nWhen Tay and Lavinie Thiruchelvam, her business partner and friend, launched Babydash in 2011, ecommerce was still a nascent sector in Malaysia. But the platform was able to grow, raising funds via equity crowdfunding at a time when the concept was still new here.\n\n\nTay exited Baby Dash in 2018 by relinquishing her stake in the company, and, in 2019, joined ScaleUp Malaysia, an accelerator that buys equity in startups while helping them, well, scale.\n\n\nScaleUp announced its first cohort in 2020 and will be announcing its fourth cohort soon, where it\u2019ll invest up to US$100,000 in each of the 10 selected startups.\n\n\nHere\u2019s our short interview edited for brevity and clarity:\n\n\nWhy are we not seeing more founders reinvest in the scene?\n\n\nTay:\n I think most founders are not qualified as investment managers. So it\u2019s mostly that, right? You could come back and reinvest as an angel and that would be mostly through the equity crowdfunding platforms that are available.\n\n\nBut a lot of that is you doing your own work, having to read up and find out about the companies and making your own decisions. So, I\u2019m not sure whether the founders out there are comfortable \u2013 I am because of my background.\n\n\nI would say put your money with someone who knows what to do with money.\n\n\nYeah, there are places you can invest in that will help invest your money for you. Of course, this has to be people that you believe in and you trust that they know how to grow your money. Founders can also invest in accelerators or VCs like us.\n\n\nOne bad rep Malaysia gets is that we are trailing Vietnam and Indonesia. Thoughts?\n\n\nFirstly, it\u2019s the population: Vietnam and Indonesia are much larger. But I also think the Vietnamese and the Indonesians go out there a lot faster to get funds.\n\n\nAnd that\u2019s where you build success stories. So, if you have more successful founders, then there is a chance they\u2019ll come back and reinvest in the scene.\n\n\nHere, if you talk about successful founders, there are only a handful of them.\n\n\nFor someone with your background, how do you add value to a startup?\n\n\nDifferent people can add value differently. Because of my background, I know how to look at businesses. I know how to look at financials, so I help a lot of companies with their financial projections and with articulating these projections when they are going out to raise funds.\n\n\nMost startup founders are tech people. While they may know how to build great apps, they\u2019re not good at explaining their go-to-market strategy \u2013 for example, what their revenue drivers are.\n\n\nA number of them can tell you how much revenue they make, but when I ask, \u201cwhat can you do to make that revenue?\u201d or \u201cwhat drives this part of the business?\u201d they either have to think really hard or don\u2019t know. They\u2019ll say, I just do this and it makes money.\n\n\nSo, a lot of it is going back to the basics of business. If you know what drives your revenue, what your costs are, how to grow revenue, and how to minimize your costs? So these are the areas where I add value \u2013 mostly strategic financial decisions and strategy.\n\n\nTips for startup founders when they fundraise or pitch?\n\n\nI think the most important thing is, everybody thinks pitching for funds\u00a0is about telling a nice story. But I always tell founders is: \u201cThat\u2019s great, but don\u2019t forget to back that story up with numbers.\u201d\n\n\nThis is something I see with most Malaysian founders \u2013 they don\u2019t really tell the story with data. They usually tell the story with big picture examples such as the global market is worth x billion or that we are 1% of that x billion.\n\n\nBut how are you going to achieve those figures? What is going to take you from your first million to your first 10 million? And if you can tell these stories then you\u2019ve got it.\n\n\nAnd it\u2019s not complicated. It should be simple spreadsheets where people can understand what drives your numbers.\n\n\nThe mistake people make is that they get so worried about overcomplicating things \u2013 that you need to hire a consultant to do this. But I think boils down to identifying your revenue lines and other assumptions that drive them.\n\n\nWhat\u2019s your advice for Malaysian founders looking to scale overseas?\n\n\nAside from knowing the market well, you should not just scale for the sake of scaling. That said, I think companies, as they start, should think global from day one \u2013 or at least Southeast Asia from day one.\n\n\nDon\u2019t build a business to just capture the Malaysian market. If you take the Southeast Asian market, you can start with at least five countries. So if you don\u2019t start from that kind of thinking, you\u2019re never going to be able to take that first step overseas because it\u2019ll be \u201cWait, wait, let me dominate the Malaysian market first.\u201d\n\n\nAgain, don\u2019t go overseas for the sake of doing so. Instead, think of a shared pain point in the countries that you can address and provide that solution.\n\n\nI\u2019ve been guilty of this where I wanted to dominate the local market first and then go overseas. But, hey, Lazada came and dominated Southeast Asia. So there you go."}
{"title": "How Netflix fares in OTT pricing across SEA", "body": "\n\nImage credit: S&P Global Market Intelligence\n\n\n\n\nNetflix has been trying hard to win back price-conscious Southeast Asian audiences.\n\n\nThe global streaming giant \nhas recently reduced\n its prices in more than 100 countries, including five Southeast Asian markets. This stands in contrast with its move to hike subscription fees in developed markets like \nthe US\n\u00a0and \nthe UK\n.\n\n\nThe difference shows the importance of affordability for over-the-top streaming service providers to win in Southeast Asia, \naccording to a recent analysis\n by S&P Global Market Intelligence.\n\n\nThe analytics firm estimates that Netflix has slashed subscription fees for the basic plan by as much as 46% in some Southeast Asian countries. Other notable findings include:\n\n\n\n\nNetflix\u2019s price adjustment has resulted in a substantial reduction in the affordability gaps between the mobile-only and basic tiers in five markets.\n\n\nDisney+ Hotstar and Lionsgate Play are among the most affordable international streaming platforms in the region.\n\n\nMore localized services such as WeTV iflix and Viu have also seen their popularity grow with a freemium model, which enables users to access both the free, ad-supported plan and paid subscription tiers.\n\n\n\n\nIn January, Netflix said \nit\u00a0added\n 1.8 million subscribers from Asia Pacific in the fourth quarter of 2022. It\u2019s \nreportedly setting up\n an office in Vietnam.\n\n\nSee also: \nScrutinizing Amazon\u2019s and Tesla\u2019s Malaysian deals\n\n\nEditing\n: Thu Huong Le and Dhania Putri Sarahtika"}
{"title": "Scrutinizing Amazon\u2019s and Tesla\u2019s Malaysian deals", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nLast week, two names got many Malaysians excited: Tesla and Amazon. Why? Because, at least according to the government, both tech titans are going to invest in the country one way or another.\n\n\n\n\nPhoto credit: Amazon\n\n\n\n\nEven Prime Minister Anwar Ibrahim \ntold\n the parliament\u2019s lower house on Tuesday that Amazon and Tesla\u2019s commitment was due to his five-month-old government.\n\n\nYes, I kid you not. Two capitalistic titans needed a fledgling administration made up of a pact of strange bedfellows to convince them to invest in Malaysia \u2013 at least that\u2019s what the PM said.\n\n\nSadly there won\u2019t be any fact-checking exercises here. So, Anwar wins.\n\n\nBriefly, Amazon \nsaid\n on March 2 that it will commit US$6 billion until 2037. Part of its investments include establishing data centers in Malaysia to host cloud services and applications.\n\n\nTesla, on the other hand, will be \nsetting up\n a sales and service office, allowing Malaysians to directly buy electric cars instead of relying on gray market imports.\n\n\nThe company will also build a network of electric car superchargers, too.\n\n\nA laggard\n\n\nLet\u2019s put both firms in perspective. In the case of Amazon, we\u2019re late to the game.\n\n\nThe online retail giant \nhas invested\n US$6.1 billion in Singapore since 2010. In 2021, it \npledged\n to allocate US$5 billion for Indonesia. And last year, the firm \nincreased\n investments in Thailand by US$5 billion for a 15-year period.\n\n\nOther countries, on the other hand, are throwing larger baits to entice Tesla. Indonesia, for example, wants the company to \nbuild\n a so-called gigafactory to produce electric vehicles (EVs). In return, the country is offering up a precious resource to make EV batteries: nickel.\n\n\nTaken together, Tesla and Amazon\u2019s commitment to Malaysia doesn\u2019t seem much \u2013 at least not as substantial as the politicians are hyping it up to be. I can\u2019t comment on Tesla, nor this will be commentary on how un-climate-friendly nickel-mining is.\n\n\nBut I have covered data centers for a bit and here\u2019s what needs to be said: Execution is easier said than done.\n\n\nIn 2021, Amazon made a similar \ncommitment\n to Malaysia. That was under a different government and prime minister. You could ask, is Amazon\u2019s recent announcement a new undertaking or just an extension of what it said in 2021? Or was it a \ncommitment\n made as far back as 2019? This is turning out to be a scene from the movie \nInception\n.\n\n\nAmazon isn\u2019t the only one. Let\u2019s take Microsoft, which announced that it would build a data center in 2014 out of Sedenak in Johor. Three years later, that plan hit a snag after the US tech major reviewed the entire project. At the time of writing, the project has yet to be completed.\n\n\nBut then in April 2021, Microsoft said it would \nset up\n its first Azure data center in capital Kuala Lumpur instead, committing US$1 billion to that effort. But, what happened to\u2026 the delayed Sedenak project? Never mind.\n\n\nTo be fair to Amazon, especially, the last couple of years have been topsy-turvy for Malaysia. Anwar recently revealed to the lower house that Amazon had wanted to commit in 2019 but then decided against it due to factors such as political instability.\n\n\nIn 2021, there was an issue about data center regulations that saw Amazon, Microsoft, and even local players lobbying the government to amend the terms.\n\n\nIn the same year, Amazon and the tech giants appealed to Anwar\u2019s predecessors to \nreinstate\n a policy on undersea cable repairs. The man who drew up that favorable policy, Anthony Loke, is back in Anwar\u2019s government.\n\n\nSystemic issues still left untouched\n\n\nWho will Amazon be catering too, really? The only pitch here is data residency, which will help businesses and government agencies use Amazon\u2019s cloud services. That might trigger some positive moves, e.g., companies setting up tech infrastructure in Malaysia.\n\n\nThe reality is Amazon will not put its top-tier servers here because that will affect Singapore. In fact, the city-state will be the firm\u2019s Asia-Pacific hub.\n\n\n\n\nTesla intends on setting up a sales and service center as well as a network of superchargers in Malaysia. / Photo credit: Tesla\n\n\n\n\nIt would be awesome if the hub packed up and moved to Malaysia instead. Now that\u2019s something, but it won\u2019t happen for all the right reasons, such as Singapore having better incentives and tax policies than us.\n\n\nSo what\u2019s the hype about? Maybe websites and such will be hosted in Malaysia and that can bring in greater tax revenue for us \u2013 not to mention that data server providers need to \ncontribute\n a portion of their revenue to a government fund if sales exceed 2 million ringgit (US$442,000) annually.\n\n\nBut will Amazon and Tesla succeed? Who knows. To be sure, it\u2019s good optics to have foreign companies proclaiming their love for Malaysia. But the truth is, there are so many systemic hurdles that need to be overcome to get at least the data centers running.\n\n\nAlso, like all good capitalists, Tesla and Amazon will move on to other countries where labor and the cost of doing business are cheaper.\n\n\nMeanwhile, startups and tech investors will be still banging their heads against the wall dealing with bureaucratic hurdles such as visa requirements as well as the country\u2019s lackluster and aloof tech agencies. And, please, let\u2019s stop with so-called technology transfer. That may or may not happen.\n\n\nAlso, let\u2019s remember that 2037 is a long time away and Amazon can shift the goalpost, especially if there are multiple changes in the government.\n\n\nGood news is, you can still blog about your woes on a website hosted on Amazon Web Services, and pay the company in ringgit and not US dollars to keep your site alive. Be thankful, all right.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.52 ringgit."}
{"title": "Capital A names CEO, CFO of AirAsia Digital", "body": "\n\nPhoto credit: AirAsia Super App\n\n\n\n\nCapital A\n has appointed \nColin Currie\n, its president for commercial, to also serve as CEO of AirAsia Digital. \nJohn Cheing\n, Capital A\u2019s head of investments, has also been named CFO of AirAsia Digital and AirAsia Super App.\n\n\nThe changes are effective March 1, according to a statement.\n\n\nAirAsia Digital houses the operations of its logistics firm Teleport, fintech arm BigPay, and the AirAsia Super App \u2013 which offers food and grocery deliveries, ride-hailing, and express shipping services, among others.\n\n\nThe super app currently has 51 million users and 40 million downloads, Currie said. With over 15 lines of products and services, he said there\u2019s \u201cmuch more room for growth\u201d for AirAsia Digital as it aims to become one of the industry leaders in Southeast Asia and beyond.\n\n\nBefore AirAsia, Currie was with Adidas for over 16 years, serving as managing director for Hong Kong, Taiwan, and Greater China.\n\n\nSee also:\u00a0\nOrg Chart: The C-suites powering Capital A\n\n\nThe leadership changes follow Teleport\u2019s recent \nUS$50 million\n funding round in late 2022. The super app was also recently launched in Indonesia, with an initial focus on the country\u2019s \ntravel hotspot of Bali\n."}
{"title": "The green pastures of SEA\u2019s agritech landscape", "body": "Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHi there,\n\n\nAs a child, I recall my grandfather haggling with a large man wearing a thick gold bracelet over the selling price of a crop of coconuts that had recently been harvested from our farm in south India. I was worried as this man was nearly twice the size of my grandfather \u2013 I remember thinking that he could easily beat my elderly grandfather to a pulp.\n\n\nThe large man was an agricultural distributor \u2013 commonly known as a middleman \u2013 who bought crops from smallholder farmers like my grandfather. The heated negotiations ended with the harvest being sold for one-tenth of the price the coconuts would fetch in the market. My grandfather was in a foul mood for the rest of the day.\n\n\nSimilar to India, Indonesia\u2019s agricultural supply chain is riddled with middlemen. There are \nup to 13 layers of middlemen\n in the country with each taking a 10% to 20% cut, leaving farmers with the lowest income in exchange for the greatest effort.\n\n\nThis large gap between farmer and end-consumer is one reason for the rise in agritech startups in Indonesia. The archipelago has more agritech firms than all other nations in Southeast Asia combined, my colleague Shadine reports in this edition\u2019s Big Story.\n\n\nThe story highlights the extensive players in the region\u2019s agritech space. The industry has definitely caught the attention of investors \u2013 they pumped in over 2.5x more funding in agritech startups last year compared to 2021. The number of deals have also doubled over the past year.\n\n\nSpeaking of investor attention, SoGal Ventures co-founder and managing partner Pocket Sun tells my colleague Melissa why investing in minority- and female-founded startups makes good business sense. And she\u2019s walking the walk \u2013 95% of the startups in SoGal Ventures\u2019 first fund have at least one female co-founder and eight of its investments raised \u201cup\u201d rounds in 2022.\n\n\nIn this week\u2019s AI Odyssey, I showcase a generative AI firm that is looking to build a sustainable business model by targeting enterprise customers. More on that later, but first, our Big Story.\n\n\n\u2014 \nCollin\n\n\n\n\nTHE BIG STORY\n\n\nThe key players in SEA\u2019s agritech space\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe region\u2019s agritech industry attracted over 2.5x more investment with funding deals in the sector reaching an all-time high in 2022.\n\n\n\n\nMAKING WAVES\n\n\nInvesting in women founders is good business, says diversity-focused SoGal Ventures\n\n\n\n\nOf the startups bankrolled by SoGal Ventures\u2019 first fund, which had eight \u201cup\u201d rounds in 2022, 95% have at least one female co-founder.\n\n\n\n\nAI ODYSSEY\n\n\nPromising AI projects we\u2019re noticing\n\n\nA generative AI that means business\n\n\nThe world of generative AI seems to be growing every day with new players looking to launch their own chatbots. A few weeks ago, we saw a \nhost of Chinese players\n \u2013 including Baidu, Alibaba, and Tencent \u2013 firming up plans to launch their own AI bots.\n\n\nWhile Microsoft-backed OpenAI and Google\u2019s Bard attracted investors and a massive general user base, there have been \nseveral questions about the huge costs\n of their use, especially in the integrations with search engines.\n\n\nAnalysts expect Google to see a US$6 billion rise in expenses by 2024 if the company\u2019s AI bot was to answer half of its search queries. This is due to an AI-assisted search costing about 10x more than a standard search request, which will reduce profit margin significantly.\n\n\nThis is why players like Canada-based \nCohere\n are looking to build a more sustainable business model by targeting enterprise customers. The company is planning to launch a generative AI chatbot and is already in talks with marketing, consulting, and tech companies to incorporate its offering.\n\n\n\n\nImage credit: \nblocberry / 123RF\n\n\n\n\nTaking a shot at OpenAI and Google, Cohere CEO Aidan Gomez \ntold \nReuters\n that the company doesn\u2019t plan to open its chat models for everyone to use for free, as it is looking to build \u201ca healthy and sustainable business.\u201d\n\n\nThe firm has a \nfoundation model\n like OpenAI and Anthropic, and it is trained on large sets of data and can perform a variety of tasks. Cohere has listed three products in its website: Classify, a service that helps in content moderation and analysis; Generate, an AI-powered content writer tool; and Embed, a platform to extract deeper insights.\n\n\n\u201cSustainable business model\u201d and \u201cgenerative AI\u201d are the two phrases that are music to investors in this current environment. It\u2019s no wonder that Cohere, which is backed by the likes of Tiger Global and Index Ventures, is \nalready in talks\n to raise millions of dollars at an over US$6 billion valuation.\n\n\nWhat\u2019s also interesting to investors is that Cohere was founded by former researchers at Alphabet. It also has a cloud partnership with Alphabet and its language AI will be available on Amazon\u2019s machine learning platform SageMaker.\n\n\nThat said, Gomez wants Cohere to stay independent and work with different cloud partners.\n\n\n\u2014 \nCollin\n\n\n\n\nFYI\n\n\n1\ufe0f\u20e3 \nMapping Malaysia\u2019s government tech entities\n:\n Jobs will be cut if the government decides to overhaul the sector.\n\n\n2\ufe0f\u20e3 \nSense checking for product-market fit in 2023\n:\n Startups seeking funding amid this year\u2019s tough economy should take a look at product-market fit in a fresh light.\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nAlso check out Tech in Asia\u2019s coverage of the emerging tech scene \nhere\n\n\n1\ufe0f\u20e3 \nAll investment in good health\n:\n B Capital Group closed its first healthcare fund at over US$500 million.\n\n\n2\ufe0f\u20e3\nTime to take a TikTok break\n:\n The platform is putting a screen time limit of 60 minutes per day for users under 18.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n3\ufe0f\u20e3\nPropertyGuru trims losses by 81% in Q4 2022\n:\n The company\u2019s marketplace revenue grew 15% to US$28.2 million in the same quarter.\n\n\n4\ufe0f\u20e3\nStreaming platform for Muslim children\n:\n Malaysia-based Durioo+ has raised US$2.9 million in seed funding in a round led by Y Combinator and Gobi Partners.\n\n\n5\ufe0f\u20e3\nA breath of fresh air\n:\n Japanese climate tech startup Asuene has secured US$1.1 million in series B money. It\u2019s raised about US$22.8 million in total for the round.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere.\n.\n\n\nSee you next week!"}
{"title": "Khazanah looking to team up with SG-based Antler, sources say", "body": "\n\nPic credit: Khazanah Nasional\n\n\n\n\nKhazanah Nasional, Malaysia\u2019s sovereign wealth fund, is ironing out a partnership with Singapore-based VC and accelerator Antler to help the former invest in early-stage startups, people familiar with the matter tell \nTech in Asia\n.\n\n\nDetails are scant at the moment as the deal has yet to be finalized, but talks \u201chad been going on for some time,\u201d sources say on condition of anonymity.\n\n\nSpokespersons from Antler and Khazanah declined to comment on the matter.\n\n\nA Kuala Lumpur-based investor who\u2019s aware of the discussions tells \nTech in Asia\n that Khazanah\u2019s deal with Antler may mimic the programs of national oil company Petronas.\n\n\nFor instance, its VC arm Petronas Ventures has been running the \nFutureTech accelerator\n since 2019. The program\u2019s partners include 500 Startups and \nStartupX\n, among others.\n\n\nAntler was established by Magnus Grimeland in 2017. He was a co-founder of Zalora before leaving the fashion ecommerce firm to start Antler.\n\n\nOn its website, Antler \nclaims\n to be \u201cone of the most active early-stage investors,\u201d with a portfolio value of US$3.1 billion.\n\n\nMalaysian Prime Minister Anwar Ibrahim\u2019s government has \nset aside\n US$832 million for startups in this year\u2019s federal budget, in addition to the usual allocations for government tech agencies.\n\n\nAmong the highlights is US$335 million being set aside by government-owned institutional investors such as Khazanah and pension fund Employees Provident Fund to invest in \u201cinnovative and high-growth\u201d local startups.\n\n\nAmirul Feisal Wan Zahir, Khazanah\u2019s managing director, \nsaid\n in February that the sovereign wealth fund will be deploying money from its 6 billion ringgit (US$1.3 billion) Dana Impak fund to meet Anwar\u2019s mandate."}
{"title": "The key players in SEA\u2019s agritech space", "body": "\n\nAgriculture is a key sector in Southeast Asia, with the industry \ncontributing around 17%\n of the region\u2019s gross domestic product (GDP).\n\n\nThat said, \nproblems such as\n loan sharks, low-quality agriculture inputs, lack of education, and a fragmented supply chain make the process for farmers in the region difficult. In Indonesia, most smallholder farmers earn less than a living wage \u2013 \nnine in 10\n are impoverished.\n\n\nAgritech startups have emerged to solve these challenges through tech.\n\n\nThis industry has caught the eye of investors, who have pumped in 2.5x more funding in 2022 than in the year before, \nTech in Asia\u2019s\n data shows. Funding deals nearly doubled in 2022.\n\n\nThis jump isn\u2019t a one off \u2013 the sector has been witnessing a consistent growth of over 2x in funding amounts over the last three years.\n\n\n\n\nIndonesian startups dominate Southeast Asia\u2019s agritech sector. The archipelago has produced more agritech firms than all other nations in the region combined, \nTech in Asia\u2019s\n database shows.\n\n\n\n\nThis is understandable as agriculture is one of the major contributors to Indonesia\u2019s GDP \u2013 accounting for \nabout 13.3% of it in 2021\n. It also employs a sizable workforce of \n40.6 million people\n \u2013 or 15% of the country\u2019s total population \u2013 who work in agriculture, forestry, and fishery sectors, as per Indonesian government data in February 2022.\n\n\nSee also: \nMapping Indonesia\u2019s key agritech players\n\n\nSingapore, Southeast Asia\u2019s smallest country by size, has the second-highest number of agritech firms in the region.\n\n\nAfter realizing that the city-state imported 90% of its food, the government devised in 2019 the 30-by-30 plan, which aims for the country to \nproduce at least 30%\n of its nutritional needs by 2030. This has boosted agritech firms in the country.\n\n\nGiven Singapore\u2019s lack of land mass, vertical or rooftop farming has become its most popular agritech startup category \u2013 five of its 14 agritech companies are engaged in this field.\n\n\nSee also: \nSingapore\u2019s agritech vision hits speed bumps\n\n\nIn total, Southeast Asia\u2019s agritech startups have had 114 disclosed funding deals since 2011.\n\n\n\n\nHowever, it seems that a fair share of active companies may be bootstrapped as well. According to our data, 24 of the firms listed have not obtained any venture funding.\n\n\n\n\nThe most common category of agritech startups in the region is B2B commerce.\n\n\nAccessibility to supply chains is a large problem across much of Southeast Asia. This is especially applicable to Indonesia, which is not only \nthe largest country\n in the region but also has an extensive archipelago.\n\n\n\n\nThe supply chain from agricultural producer to end consumer can involve up to \n13 layers of middlemen\n in the country, with each taking a 10%-20% cut, leaving farmers with the lowest income in exchange for the greatest effort.\n\n\nMany agritech startups are cutting out these middlemen through their platforms, enabling smallholder farmers to sell their produce directly to businesses and pushing up farmers\u2019 income.\n\n\nSee also: \nIndonesian chicken startup\u2019s 20x revenue jump sees it take off\n\n\nThis category also includes marketplaces for farmers, who often lack access to high-quality farming inputs.\n\n\nFarming management tech is the next most popular agritech category, with 29 active companies adopting this model.\n\n\nIndonesia-based firms dominate this vertical and include some of the most well-funded agritech companies. EFishery tops the list with a total of US$306 million in funding.\n\n\n\n\nThe aquaculture-focused firm offers a range of services, including farming management tech for fish and shrimp cultivators, a fresh seafood marketplace, and financing for farmers. Its \nUS$90 million series C round\n made up nearly a third of the region\u2019s agritech funding in 2022.\n\n\nSee also: \nIndonesia\u2019s eFishery revels in farmer financing foray, but there\u2019s a catch\n\n\nUnsurprisingly, the biggest investors in the space are also Indonesian, with East Ventures investing in six companies across a total of 14 deals since 2016.\n\n\n\ufeff\n\ufeff\n\n\nThe VC\u2019s most recent investment was in Aruna\u2019s \nUS$35 million series A last year\n. Its other bets include \nPasarNow\n, \nGokomodo\n, and \nChickin\n.\n\n\nAgriculture in the region is feeling the heat from \nlabor shortages\n as well as climate change \u2013 it shed an estimated \nUS$21 billion in production losses\n from 2008 to 2018. Farmers will need to rely more heavily on tech to improve their produce, and that may bring more investors to partake in this harvest.\n\n\nAs\u00a0\nTech in Asia\u2019s\n database is updated, we hope it will be a useful reference for anyone interested in Southeast Asia\u2019s agritech space.\n\n\nYou can also catch our coverage of the sector \nhere\n and check out more landscape reports \nhere\n. We acknowledge that we\u2019re missing some data, so do reach out to shadine@techinasia.com to help us fill in the gaps.\n\n\nCredits\n\nData:\n Ivan Tan and Shadine Taufik\n\nGraphics: \nSusi Susanti Wu\n\nEditing: \nCollin Furtado and Arpit Nayak"}
{"title": "Jaya Grocer, Grab launch loyalty reward scheme", "body": "\n\n\n\n\n\n\n\n\n\nJaya Grocer has more than 40 stores in Peninsular Malaysia / Photo credit: Jaya Grocer\n\n\n\n\nMalaysian grocery startup \nJaya Grocer\n has introduced a new membership program in collaboration with \nGrab\n.\n\n\nThe program is available on the Grab app and enables customers to earn and redeem \nGrabRewards\n points at Jaya Grocer stores throughout the country. The membership is free and activated automatically when a purchase is made in-store or through the Grab app.\n\n\nCustomers can redeem Jaya Grocer e-vouchers in-store after their membership barcode is scanned by the cashier. For every 1 ringgit spent using cash, credit/debit card, or GrabPay, customers will earn 0.75 GrabRewards.\n\n\nGrab announced \nits acquisition of Jaya Grocer\n in December 2021. While the Singapore giant did not disclose the\u00a0deal amount, it bought all the ordinary shares and 75% of the preference shares of the Malaysian firm, with an option to purchase the remaining 25%.\n\n\nIn its most recent earnings call, Grab boss Anthony Tan said that the Jaya Grocer partnership, along with other initiatives like its food subscription plan \nGrab Unlimited\n, can help it through an expectedly slower first half in 2023.\n\n\nSee also: \nGrab\u2019s financial health in 9 charts\n\n\n\n\n\n\n\n"}
{"title": "Amazon commits to invest $6b in Malaysia by 2037", "body": "\n\nPhoto credit: \nAndy Hay / Flickr\n\n\n\n\nAmazon Web Services\n (AWS) plans to invest US$6 billion in Malaysia by 2037, making it the largest international technology investment in the country to date. As part of the investment, it will be launching an \ninfrastructure region\n in Malaysia.\n\n\nThe new AWS region will enable customers who prefer to keep their data in Malaysia to do so securely. It will also increase data transfer speed and meet the growing demand for cloud services across Southeast Asia.\n\n\nThe region will have three availability zones when it starts, adding to the current 99 availability zones in 31 geographic regions that AWS has rolled out around the world. Availability zones are separate and distinct locations within an AWS region that are engineered to be isolated from failures.\n\n\nAWS provides services such as analytics, compute, database, IoT, machine learning, mobile services, storage, and other cloud technologies. It counts Astro Malaysia Berhad, Axiata Group, and Bank Islam Malaysia as some of its customers in the country.\n\n\n\u201cWe look forward to helping Malaysian institutions, startups, and companies deliver cloud-powered applications to fuel economic development across the country and to spur job creation, skills training, and educational opportunities in the communities surrounding our data centers,\u201d said \nPrasad Kalyanaraman\n, vice president of infrastructure services at AWS.\n\n\nSee also: \nCan Sociolla become the AWS for smart retail?"}
{"title": "Mapping Malaysia\u2019s government tech entities", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nIf you\u2019ve followed my \ncoverage\n of Malaysia\u2019s recently unveiled 2023 budget, then this piece comes as no surprise.\n\n\n\n\nThe Malaysian Finance Ministry\u2019s headquarters in Putrajaya. The ministry owns many of the country\u2019s tech agencies. / Pic credit: Putrajaya Insights\n\n\n\n\nI\u2019m not going to rehash many of the points in my previous articles, but I\u2019m going to zero in on Malaysia\u2019s government-backed agencies that target the tech and startup sectors.\n\n\nThis is one of the reforms that Prime Minister Anwar Ibrahim announced in last Friday\u2019s budget speech, where he said there\u2019ll be a restructuring of government tech agencies. To get a glimpse of how \u201ccrowded\u201d the space is, below is a landscape map:\n\n\n\n\nBefore I get into the nitty gritty, we need to bear in mind a few things.\n\n\nA complex web\n\n\nFirstly, Some of the names featured in the chart are agencies such as Mavcap and Malaysia Debt Ventures, which are specifically for tech or startup investments. Others are agencies such as SME Corp and Ekuinas, which dabbled in the VC space through an external partnership with established private VCs.\n\n\nStill others are large state financial and non-financial institutions that have their own venture arms \u2013 for example, Petronas, Khazanah, asset manager Permodalan Nasional Bhd (PNB), and civil servants\u2019 pensions pot Kumpulan Wang Pesaraan Diperbadankan (KWAP).\n\n\nPNB was in \ntalks\n to lead a 2021 funding round in Singapore-based car marketplace Carro while KWAP \ninvested\n in Uber.\n\n\nSecondly, Malaysia has a convoluted governance structure. For example, Mavcap falls under the purview of the Ministry of Science, Technology, and Innovation. But the Finance Ministry is its shareholder and dictates board appointments as well as mandates.\n\n\nSME Corp, for example, is an agency under the Entrepreneur and Cooperatives Development Ministry.\n\n\nThirdly, I didn\u2019t categorize these according to the funding lifecycle of a startup \u2014 seed to IPO \u2014 because these agencies do not have specific mandates to target a certain stage. That in itself is a problem because you end up not only with overcrowding but also cannibalizing certain segments while ignoring the rest.\n\n\nFor example, Malaysia \nstill lags\n in seed and early-stage funding compared to its regional peers. Also, Mavcap and Penjana are basically doing the same thing, i.e., launching fund-of-funds and developing local VC talent.\n\n\nA lack of political will?\n\n\nNow, onto the meat of this article: Restructuring the VC space has been a proposal of governments past, but that ambition has always lacked political will and smarts.\n\n\nIn terms of will, it\u2019s the usual issue of lobbying. Restructuring means people will lose their jobs \u2013 we\u2019re not talking about middle management but chiefs.\n\n\nYou can be sure to suddenly see these folk come crawling out of the woodwork, claiming to love startups and why they matter to the VC space and that they have been championing the startup space from day one. Yeah, right\u2026\n\n\nAs for smarts, we have seen a merger happen last year: Tech agencies Technology Park Malaysia and the Malaysian Global Innovation and Creativity Centre became a single entity, now known as the Malaysian Research Accelerator for Technology and Innovation (MRANTI).\n\n\nSo it\u2019s possible. The minister or an adviser to the prime minister can make it happen. If they want to.\n\n\nThe lowest hanging fruit will be to tackle entities under a certain ministry like with the MRANTI example.\n\n\nThe \neasiest proposal\n \u2013 which has always been on the table but is yet to be executed \u2013 involved bringing Mavcap, Cradle, Malaysia Debt Ventures, Malaysian Technology Development Corp, and Kumpulan Modal Perdana under a single umbrella.\n\n\nThis is simply because they fall under the purview of the Ministry of Science, Technology, and Innovation.\n\n\nYou might argue that Mavcap and Penjana Kapital need to merge, or at least that one must subsume the other because both have overlapping roles. But Penjana falls under finance while Mavcap comes under science, technology, and innovation. A merger can be done, but expect pushback and lobbying \u2013 and ego too since the merged entity will have to be under a ministry.\n\n\nAffirmative action policies: a bane\n\n\nThe most annoying thing, however, will be so-called national interests, which are tied to the country\u2019s affirmative action policies that favor the majority Bumiputera ethnic group.\n\n\nExamples include having a Bumiputera director on the board of a financial services company and a percentage of the company being Bumiputera hires.\n\n\nUnraveling this will be near impossible since it\u2019ll ruffle too many feathers \u2013 an unpopular decision to say the least.\n\n\nBut the problem is that the pro-Bumiputera policy isn\u2019t driven by data and doesn\u2019t make commercial sense. It can also be an annoyance \u2014 what if you can\u2019t find a good Bumiputera director? You\u2019d be forced to make a token hire.\n\n\nAnd while there are investors who might brave the challenge and put their money here, there are those who will look elsewhere because, at the end of the day, it\u2019s all about the money."}
{"title": "Malaysia streaming platform for Muslim children raises $2.8m", "body": "\n\nThe Durioo team / Photo credit: Durioo\n\n\n\n\nMalaysia-based \nDurioo+\n, an Islamic video-streaming platform for children, has raised US$2.85 million in a seed round led by Y Combinator and Gobi Partners. The round also saw former employees of Meta, Google, and IQIYI participate as angel investors.\n\n\nIn February 2022, founder \nSinan Ismail\n launched Durioo+ to provide an edutainment alternative to Muslim children. The startup graduated from Y Combinator\u2019s winter batch of the same year.\n\n\nSince then, Durioo+ has also produced 20 original programs and licensed over 1,500 episodes from series such as \nBaby Shark\n and \nUpin & Ipin\n. The firm says it has also recorded over 22,000 subscribers. The platform \ncharges\n subscribers about US$7.99 a month or US$79.99 annually.\n\n\nThe startup says that over the next five years, it wants to diversify its viewership base in countries and regions such as the UK, the US, Indonesia, the Middle East, and North Africa. It also aims to create more original content and launch Durioo Games.\u00a0Durioo+ targets having 100,000 subscribers by 2023 and 1 million subscribers by 2026.\n\n\nSee also: \nThe lowdown on Malaysia\u2019s new $804m tech budget\n\n\nWith initiatives such as the \nIslamic Digital Economy\n\u00a0and \nnearly 64%\n of its population identifying as Muslim, Malaysia has become a hotbed for halal tech startups.\n\n\nOther investors that participated in this round include:\n\n\n\n\nUncommon Capital\n\n\nLynett Capital\n\n\nNew Venture Order\n\n\nInnate Capital\n\n"}
{"title": "500 Global accelerates hiring in Southeast Asia", "body": "\n\nPhoto credit: 500 Southeast Asia\n\n\n\n\nUS-based VC firm \n500 Global\n is ramping up hiring for its \nSoutheast Asia fund\n. It currently has openings for \n16 positions\n across Singapore, Malaysia, and Indonesia.\n\n\nSome of the roles that 500 Global is looking to fill include director of investments, director of strategic development, director of investor relations and fundraising, and chief of staff. Most of these openings are for its Singapore and Malaysia offices, with only one job listing specific to Indonesia.\n\n\nThis comes after the VC firm \nexpanded its leadership team in Southeast Asia\n with the appointments of Shahril Ibrahim, Saemin Ahn, and Martin Cu last month.\n\n\nAs to why the company is hiring despite the current headwinds, 500 Global said on its website that \u201cventure capital has historically had a stellar performance during economic downturns. As each venture fund we operate are 10-year vehicles, we plan our resources for the long-term, and for every season.\u201d\n\n\nIn the past decade, 500 Global has invested in more than 340 companies in Southeast Asia. Its portfolio includes major tech players like Grab, Bukalapak, FinAccel, Carsome, Carousell, and eFishery.\n\n\nThe VC firm has a global portfolio with more than US$2.7 billion in assets under management.\n\n\nSee also: \nRecession Run: 500 Global\u2019s investment plan in SEA"}
{"title": "GrabFood Malaysia expands reduced delivery fee program", "body": "\n\nPhoto credit: Grab\n\n\n\n\nGrabFood Malaysia\n has expanded its Saver Delivery option to additional cities, allowing more users to choose from delivery fees starting at 1 ringgit (US$0.22).\n\n\nThe program was first piloted in November 2022, allowing customers to order from a range of restaurants on GrabFood and pay less in exchange for a slightly longer delivery time.\n\n\nGrab does this by grouping orders in the same direction a delivery rider will travel. This means that the feature only supports orders from certain merchants, depending on the time and location.\n\n\nThough this may be more cost-efficient for customers, riders\u2019 earnings will not be affected, as they will be compensated for these deliveries.\n\n\nAnother service, Direct Delivery, has become a new alternative for shorter wait times. Other features customers can opt for are scheduled orders and self-pickup.\n\n\nGrab saw its \nrevenue soar\n to US$502 million in Q4 2022, more than tripling the previous year\u2019s amount. The firm expects to hit \nadjusted EBITDA breakeven\n by the end of 2023.\n\n\nSee also: \nGrab\u2019s financial health in 9 charts\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.49 ringgit."}
{"title": "The lowdown on Malaysia\u2019s new $832m tech budget", "body": "Update: (March 2, 12.16 p.m. SGT): This article was updated to include extra funding for startups in Budget 2023.\n\n\nMalaysian Prime Minister Anwar Ibrahim tabled this year\u2019s federal budget last Friday, setting aside 388.1 billion ringgit (US$86.7 billion) for operating and development expenditure.\n\n\n\n\nPrime Minister Anwar Ibrahim (center, light blue traditional Malay wear) holds a copy of the Budget 2023 before tabling it in Parliament on February 24. / Photo credit: Prime Minister\u2019s Office\n\n\n\n\nThis will be the first major test of his government, which took power in November last year following a general election. In the coming days, the budget will be debated and voted on at the lower and upper houses of Parliament.\n\n\nOf that sum, 3.6 billion ringgit (US$803.9 million) has been earmarked for tech and startups, together with a few promises of structural reforms.\n\n\nHere\u2019s a breakdown of the budget, based on excerpts from Anwar\u2019s speech:\n\n\n\n\n2 billion ringgit (US$446.6 million) \u201cfinancing facility\u201d by Bank Negara Malaysia to support tech startups in the sustainability space as well as to help SMEs implement low-carbon practices.\n\n\n1.5 billion ringgit (US$335 million) from government-owned institutional investors such as sovereign wealth fund Khazanah Nasional and pension fund Employees Provident Fund to invest in \u201cinnovative and high-growth\u201d local startups.\n\n\n40 million ringgit (US$8.9 million) under the Malaysia Co-investment Fund as a matching amount to support alternative funding methods.\n\n\n136 million ringgit (US$30.4 million) for startups via Malaysia Venture Capital Management (Mavcap), Modal Perdana and Ekuinas.\n\n\n50 million ringgit (US$11.2 million) under Cradle. \n\n\n\n\nOne-stop tech shop?\n\n\nThe first major reform that Anwar mentioned in his speech is the restructuring of government agencies involved in the tech and startup space.\n\n\nHe said his government is studying the setup to \u201ceffectively coordinate efforts to develop local startup companies, from seed stage to successful listing on Bursa Malaysia.\u201d\n\n\nThe restructuring of government-owned tech agencies was \non the table\n in 2018.\n\n\nBack then, the exercise involved five tech-related agencies: Malaysia Venture Capital Management (Mavcap), Cradle, Malaysia Debt Ventures, Malaysian Technology Development Corp, and Kumpulan Modal Perdana.\n\n\n\n\nMranti is, so far, the only successful result of a merger between two government tech agencies. / Pic credit: Mranti\n\n\n\n\nThis never took off because of multiple regime changes since then. During this roller-coaster period in Malaysian politics, however, two things happened: the launch of a fund-of-funds called Penjana Kapital, and the merger between tech agencies Technology Park Malaysia and the Malaysian Global Innovation and Creativity Centre, which is known today as the Malaysian Research Accelerator for Technology and Innovation.\n\n\nThe creation of Penjana Kapital led to the questioning of Mavcap\u2019s existence since both agencies had similar mandates. There was an expectation that Penjana Kapital would subsume the role of Mavcap but that, too, is now being reviewed.\n\n\nKuala Lumpur-based investors tell \nTech in Asia\n that the restructuring is a long time coming. They agree that it\u2019s the right move but also caution that it takes immense political will and smarts to ensure that the merger of tech entities will end up doing more good than harm.\n\n\nOne problem that has made it difficult for both investors and founders to engage the government is the litany of agencies under different ministries, a Malaysian venture capitalist tells us.\n\n\n\u201cIf the end-result is a one-stop tech shop where startups and investors can just engage the government on all related issues, then it makes the job easier,\u201d they say.\n\n\nPenjana Kapital, for example, is under the Finance Ministry, while Malaysia Debt Ventures, which also invests in tech startups, comes under the purview of the Science, Innovation, and Technology Ministry. The Malaysia Digital Economy Corporation, on the other hand, is parked with the Communications and Digital Ministry.\n\n\nFocus on IPOs\n\n\n\n\nMalaysia\u2019s stock exchange, Bursa Malaysia, consists of three markets: ACE, LEAP and Main. / Pic: Bursa Malaysia\n\n\n\n\nThe second noteworthy reform involves the country\u2019s stock market. Anwar said the government will allow the issuance of dual-class shares.\n\n\nLast year, sources told \nTech in Asia\n that this prohibition was among the \nreasons\n Malaysian companies shunned the local bourse for the Nasdaq. Singapore and Hong Kong introduced dual-class shares in 2018.\n\n\nAnwar added that there will be a tax deduction of up to 1.5 million ringgit (US$335,000) on expenses incurred for listings on the ACE and LEAP markets of Bursa Malaysia until 2025.\n\n\nThis tax deduction will also be expanded to include the cost of listing tech companies on Bursa\u2019s Main Market.\n\n\nSee also: \nWhy Malaysian tech firms are shunning Bursa for Nasdaq\n\n\nIndustry regulator Securities Commission Malaysia will be tasked to create more secondary markets and push for the listing of local tech companies, Anwar said in his speech.\n\n\nThat iffy tax bit\n\n\nLike all budget pronouncements, the devils are in the details and execution.\n\n\nBut at this stage, one major concern from investors is the possibility of a new capital gains tax (CGT) being levied on profits made from the sale of shares in unlisted companies.\n\n\nThis is currently being studied, with the government thinking of introducing the tax at a \u201clow rate\u201d from 2024, according to Anwar. But the proposal is divisive.\n\n\nInvestors speaking to \nTech in Asia\n highlight that the CGT may spur companies to list on the Bursa, which is in line with the government\u2019s focus to make the stock market more attractive. Others say that it\u2019s time for a CGT to be introduced as a progressive measure to redistribute wealth.\n\n\nBut some investors tell us that the CGT needs to be clarified \u2013 for example, whether divestment of unlisted shares to a listed entity will also be subject to the tax, one source says.\n\n\nPrivate equity deals, group restructuring, or even mergers and acquisitions could be affected, so more details on the tax are needed, the source adds. \u201cOne example is share transfers as part of an internal group restructuring. Will this be exempted?\u201d they ask.\n\n\nWhile neighboring countries such as Vietnam, Japan, and Indonesia have a variation of the CGT, Singapore and Hong Kong do not, another source says. \u201cSo depending on how heavy the tax is, companies might continue to be domiciled elsewhere or skip Malaysia as an investment destination,\u201d they add.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.48 ringgit."}
{"title": "Gaw Capital, A3 Capital launch data center in Malaysia", "body": "\n\nPhoto credit: Gaw Capital Partners\n\n\n\n\nGaw Capital Partners\n, a Hong Kong-based real estate private equity firm, has formed a joint venture with Singapore-based investment company\u00a0\nA3 Capital\n.\n\n\nBoth firms aim to invest in greenfield and underperforming data center assets in Southeast Asia, as well as to create a portfolio of \nTier-3 certified data center assets\n.\n\n\nThe joint venture has also launched its first data center in Cyberjaya, Malaysia. It\u2019s managed by \nInfinaxis\n, a Singapore-headquartered data center specialist.\n\n\nThe collaboration aims to launch similar projects in\u00a0Indonesia and Singapore.\n\n\nMoreover, Gaw Capital and A3 Capital will adopt ESG principles for its data centers. The two firms plan to gradually implement advanced sustainability features for the facilities.\n\n\nSee also: \nMalaysia wants to farm unicorns. It\u2019s going to fail"}
{"title": "Malaysia wants to farm unicorns. It\u2019s going to fail", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nMalaysia will table its federal budget tomorrow. It\u2019s going to be closely watched since it\u2019s the first test for the country\u2019s new government.\n\n\n\n\nMalaysian Prime Minister Anwar Ibrahim (centre, dark blue suit) attending a virtual meeting with tech and startup founders on February 9. / Pic credit: Prime Minister\u2019s Office\n\n\n\n\nI have written about expectations, and I won\u2019t rehash them here. But just as I hit publish last week after talking about the lack of goodies for the startup and tech space, Malaysia\u2019s Prime Minister Anwar Ibrahim \nannounced\n that his government would pump more than a billion ringgit (US$225 million) into \u201cinnovative\u201d and \u201chigh-growth\u201d startups.\n\n\nThe money won\u2019t come directly out of public coffers. Instead, the government will order the country\u2019s state-owned institutional investors, such as sovereign wealth fund Khazanah and pensions pot Employees Provident Fund, to pony up the cash.\n\n\nAnwar said this after a \nFebruary 9 meeting\n with the who\u2019s who of Malaysia\u2019s tech scene \u2013 including the chiefs of Aerodyne and Carsome.\n\n\nThe nexus of business and politics\n\n\nMalaysia\u2019s state-owned financial institutions form a complex web that deserves an explainer of its own. But, for this article, all you need to know is that the government controls a few institutional financiers, known as government-linked investment companies (GLICs).\n\n\nThey deploy public funds \u2014 directly or indirectly \u2014 into investments deemed to be important to national or strategic interests.\n\n\n\u201cDirectly\u201d means that the money comes from the government through annual budget allocations. \u201cIndirectly\u201d refers to a variety of other sources \u2013 for example, unit trust investments or forced savings, where private sector workers have to contribute a certain sum of their salary to a pension pot.\n\n\nHow does the government control these entities? Simple: Each institution has its respective act that legally dictates it to report to the finance minister. Alternatively,the finance ministry acts as an owner via a golden share.\n\n\nThe owner of a golden share is enormously powerful. Regardless of whether that entity is listed or not, the government has the right to veto decisions like board appointments, as dictated in the shareholder\u2019s agreement.\n\n\nFor what it\u2019s worth, tech institutions or agencies, such as the Malaysia Digital Economy Corporation, Cradle, Mavcap, and even fund of funds Penjana Kapital, all have the finance ministry as a golden shareholder.\n\n\nTo digress a little, all this is because of the so-called nexus of business and politics in the country, where both somehow converge. That\u2019s why these agencies fear a change in management or leadership when there\u2019s a regime change. The post of finance minister is, after all, a political one.\n\n\nTo greener pastures?\n\n\nAnyway, this idea of marshaling government-linked investment companies (GLICs) to invest in startups isn\u2019t new.\n\n\nBut despite all the money being set aside, one major theme that Malaysians have been wrestling with is losing unicorns or soonicorns to Singapore. This became more apparent after Grab decided to move across the causeway.\n\n\nThe ride-hailing giant still does have a sizable operations team in Malaysia because, at the end of the day, Malaysia is still cheaper to do business in than the city-state.\n\n\nSomewhere along the lines there were publications that played up this angle, saying we might be also losing the country\u2019s first unicorn, Carsome, to Singapore.\n\n\nLook, it\u2019s no secret that many viable Malaysian startups with Temasek as an investor have a unit domiciled in Singapore. It\u2019s just a matter of time before the founders and key management will do the same song and dance as Grab did. It\u2019s just how the game is played.\n\n\nThe Malaysian government has also tried to dole out money to get a startup listed on the Nasdaq.\n\n\nIn 2020, the government \ninvested\n 20 million ringgit (US$4.5 million) into Aerodyne just for that exact purpose. It has until 2025 to make good on those public funds, failing which, it will have to repay the government the loan at a 12% interest rate.\n\n\nNothing much to say here, just that the clocking is ticking for Aerodyne to come good on its promise.\n\n\nGoing down to the ground\n\n\nThe problem with the government\u2019s approach in farming unicorns is that it only focuses on the glitz and glam: taking established startups and making them, well, even more established.\n\n\nNote that even with the February 9 engagement mentioned above, the government is only listening to the apparent winners of the scene. That isn\u2019t the wrong idea, but it also means that the government remains in an echo chamber.\n\n\nStartups in the middle and bottom of the pecking order face a different set of challenges. One of the major problems they have in dealing with the government are the terms and conditions attached to grants, for example.\n\n\nWhat I gather from speaking with some founders and investors is that there are approaches and clauses set by government agencies that may be off putting for seed or early-stage startups, such as a \nsmall funding purse\n which may be insufficient for young startups.\n\n\nAnother \nproblem\n that many VCs and investors face is the difficulty of setting up shop in Malaysia, which is expensive and takes up months. By the end of that arduous journey, investors will likely be looking elsewhere.\n\n\nThese are just two of the litany of problems that these startups face in Malaysia. And I won\u2019t even start with how government-owned tech agencies have been \nslow\n in championing the scene either.\n\n\nPerhaps what the government needs to do is something basic: Listen to as many stakeholders as possible and not only the winners. Go down to the ground.\n\n\nNo shortcuts or hacks\n\n\nCapital isn\u2019t confined to Malaysia, and founders these days are resourceful enough to find it elsewhere. In a connected world, geography isn\u2019t an obstacle. So why not domicile elsewhere if it\u2019s the price to pay for a better shot at success?\n\n\nAnd, since we\u2019re talking farming, anyone who has gotten their hands dirty will know that you can\u2019t grow tomatoes in the Arctic \u2013 OK, maybe you technically can, but you\u2019d need an engineering miracle.\n\n\nThe easiest way to grow them, however, is to plant them in an environment that encourages seeds to sprout and yield. That\u2019s what the Malaysian government is supposed to do with the startup and tech space \u2014 put in place the right ecosystem. For now, it isn\u2019t doing that.\n\n\nFor what it\u2019s worth, as part of his analysis on the budget tomorrow, Mavcap chairman Alizakri Alias is going to [talk]((https://www.facebook.com/officialmavcap/posts/pfbid031WUpkeKMjGWYVMoEeqAi7UX1GKUGHbYAnACxHHVWAMpS7QjgsbR4kffVnriuYdk3l) about Malaysia\u2019s unicorn ambitions and when the country will be able to produce its own mythical beast.\n\n\nI\u2019d be surprised if anything substantial comes out of it. It\u2019s like going to a motivational talk or spiritual camp. You\u2019re psyched, pumped, and ready to take on the world. But a few days later, reality sinks in and you\u2019re back to your old ways because true change is slow, painful, difficult, and, most importantly, hard work.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.4 ringgit"}
{"title": "Malaysian marketing platform bags $10m", "body": "\n\nInvolve Asia co-founders Jimmy How (left) and Rene Menezes / Photo credit: Involve Asia\n\n\n\n\nInvolve Asia\n has secured over US$10 million in an investment round led by Bintang Capital Partners Berhad, with 500 Global, Monumental Productions, and Orbit Capital Malaysia participating.\n\n\nThe Malaysia-based company helps brands form marketing partnerships with global content creators, developers, and affiliates.\n\n\nSince being founded in 2014 by \nJimmy How\n and \nRene Menezes\n, Involve Asia has seen a compound annual growth rate of 132% and remained profitable.\n\n\nThe fresh funding will be used to expand the startup\u2019s product lines, serve new firms and partners, and deploy a suite of solutions that will allow advertisers to further leverage influencers.\n\n\nInvolve Asia\u2019s also looking to invest in firms that can complement its business.\n\n\n\u201cWe are in a position to invest and step on the gas while many are focused on consolidation and preserving cash. A number of industry-changing products are ready to be taken out of beta and will hit the market very soon,\u201d Menezes said in a press statement.\n\n\nThe company\u2019s currently hiring for nearly 50 positions, mostly in project management, business development, product, and development operations.\n\n\nSee also: \nMalaysia budget: Expect fewer goodies for tech and startups\n\n\nInvolve Asia has handled over one million partnerships with more than 580,000 website partners, influencers, and affiliates in Southeast Asia to date, yielding US$1.5 billion in sales. Its clients include Nike, Lazada, Shopee, Grab, Marriott, and Citibank."}
{"title": "TikTok TV launches in Malaysia", "body": "\n\nPhoto credit: TikTok\n\n\n\n\nShort-video platform \nTikTok\n has launched its TV app in Malaysia. It is available to download on Samsung Smart TVs, LG devices, and Android TV OS devices.\n\n\nThe platform will enable users to log into their accounts on their TVs, showing their personalized \u2018For You\u2019 and \u2018Following\u2019 video feeds.\n\n\nIn 2020, the Chinese tech firm first launched its dedicated TV app with features similar to its mobile platform on \nSamsung Smart TVs in the UK\n.\n\n\nIt\u2019s unclear whether TikTok TV is available in other SEA countries.\n\n\nGlobally, TikTok saw its user base grow to \n1 billion\n last September. In Southeast Asia, the platform has a reach of about \n266 million people\n.\n\n\nThe firm has constantly received backlash from regulators, especially in the US, over its data collection practices. TikTok CEO Shou Zi Chew \nis scheduled to testify\n before US lawmakers next month.\n\n\nSee also: \nTikTok Shop has set SEA on fire within months"}
{"title": "Will Sea\u2019s investments in Malaysia bear fruit?", "body": "Welcome to the Opening Bell \ud83d\udd14! 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\u2019s publicly-listed tech companies. Get it in your email inbox by \nregistering here\n\n\nHello reader,\n\n\nSingapore and Malaysia have a complex relationship \u2013 which I frequently experience first hand.\u00a0\n\n\nSome of this is harmless rivalry (who has the better food?) But much of it is also driven by Singaporeans\u2019 misplaced sense of superiority. At a friend\u2019s wedding in Kuala Lumpur recently, I kept rolling my eyes at some Singaporean guests who repeatedly reminded their Malaysian counterparts that one Singapore dollar was worth three ringgit.\u00a0\u00a0\n\n\nSingapore\u2019s Sea is putting some of those Singapore dollars to good use with its investments in a mega warehouse and data center in Malaysia, as my colleague, Emmanuel, analyzes in this week\u2019s \nfeatured story\n.\u00a0\n\n\nThis is part of a trend of data center firms establishing their campuses in Southeast Asian countries that offer lower operating costs and are outside of more developed and expensive markets like Hong Kong and Singapore.\u00a0\n\n\nYet, as Emmanuel discovers, Sea may face the same hurdles that other tech giants, such as Microsoft, have. Despite announcing the building of a data center in Johor in 2014, the US firm\u2019s project has yet to be completed.\u00a0\n\n\nAs Singaporeans, we may view such delays as \u201ctypical Malaysia,\u201d a country not exactly known for its efficiency.\u00a0\n\n\nBut we should instead hope for the best: that Sea\u2019s investments pay off and it invests even more in Malaysia going forward. After all, we are two close neighbors that share a common history, culture, and destiny, with deep friendships and family relationships on both sides.\u00a0\n\n\n\u2014 Simon\n\n\n\n\nTHE BIG STORY\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nSea Group enters choppy waters with latest Malaysia deals\n\n\nThe tech titan\u2019s ambitious plans have been panned by Malaysian analysts and former bureaucrats.\u00a0\n\n\n\n\n3 Trends to keep an eye on\n\n\nHot stocks, earnings reports, restructuring, pressure from activist investors, and more.\n\n\n\n\nPhoto credit: Tada Images / Shutterstock\n\n\n\n\n1\ufe0f\u20e3 \nTemu goes north\n: Temu, the US-based shopping app owned by PDD Holdings (PDD, NDAQ), is \nrolling out its services in Canada\n.\u00a0\n\n\nIt\u2019s the sister company of Pinduoduo, which is famous in China for connecting farmers directly with consumers and promoting group buying \u2013 a business model in which the prices of an item go down as the number of people purchasing it goes up.\u00a0\n\n\nTemu is replicating model this in the US, where shoppers are eligible for discounts when they share links to items with friends.\u00a0\n\n\nThis expansion in North America comes even as tensions between China and the West remain high.\u00a0\n\n\nFor all the talk of decoupling, business relationships between China and the United States \u2013 as well as the wider West \u2013 continue to grow, although perhaps in less sensitive areas, such as ecommerce.\u00a0\n\n\nPDD Holdings is up by over 9o% over the past six months, far outpacing Alibaba (BABA, NYSE), which is up by 11% over the same period. Investor excitement around Temu may have something to do with this.\u00a0\n\n\n2\ufe0f\u20e3 \nSLoan me the money\n: Shopee, the ecommerce arm of Sea Group (SE, NYSE), launched a new financial services product called \nSLoan\n\u00a0for select Malaysian users.\u00a0\n\n\nEligible users can obtain loans at an interest rate of 18% per annum, with options to repay in three, six, or twelve months. The credit limit is based on Shopee\u2019s internal credit assessment data.\u00a0\n\n\nOnce the cash hits their ShopeePay wallet, borrowers can use it to shop, send to others or even withdraw via a bank transfer.\u00a0\n\n\nDespite the recent struggles faced by Southeast Asia\u2019s tech firms, this demonstrates that their financial services ambitions are still alive and well \u2013 Grab (GRAB, NDAQ) recently launched \nPartner Cash Advance\n, offering its driver-partners cash advances of up to US$7,600 at an interest rate of 18%.\u00a0\n\n\nInterest rates of 18% are high but still lower than the \naverage of 25%\n\u00a0charged by credit cards in Singapore.\u00a0\n\n\nWith growth in some of their other businesses, like gaming and food delivery, slowing sharply post-pandemic, much of the recently renewed investor enthusiasm for these tech giants may depend on how well the firms profitably monetize their data to offer financial services to consumers.\u00a0\n\n\n3\ufe0f\u20e3 \nFoodpanda layoffs: here we go again\n: Foodpanda, the Singapore-based food delivery platform, \nlaid off\n\u00a0an undisclosed number of staff \u2013 many of whom were based in Malaysia.\u00a0\n\n\nFollowing an initial round of cuts last September, this is the second round of layoffs that the subsidiary of Frankfurt-listed DeliveryHero (DHER, ETR) has undertaken recently.\u00a0\n\n\nBut DeliveryHero\u2019s stock price is still struggling and is down by 8% year to date, even as peers such as DoorDash (DASH, NYSE) and Deliveroo (ROO, LON) have seen gains over the same period.\u00a0\n\n\nFoodpanda is a decent runner-up to Grab in Singapore, the Philippines, and Malaysia, although it comes in third in Thailand. Research by Momentum Works shows that Grab has a share of over 50% in all four markets.\n\n\nThe question is whether second best is good enough to build a sustainable business.\u00a0\n\n\nMore layoffs introduce further uncertainty and can\u2019t be good for employee morale, making it even harder for Foodpanda to keep fighting. Could an acquisition of its business be on the cards?\n\n\n\n\n2 Eye-popping facts\u00a0\n\n\nTech in Asia scours the internet to bring you head-turning numbers from the world of business.\n\n\n\n\nZomato\u2019s delivery executives / Source: Zomato\n\n\n\n\nUS$ 42 million\n: The consolidated loss that India-based foodtech giant Zomato (ZOMATO, NSE) incurred in its most recent quarter, with the company exiting Indonesia and the Philippines.\u00a0\n\n\nUS$20 million\n: The amount raised by Mig, an Indonesia-based digital content distributor, in a round led by media conglomerate MNC Group (BHIT, IDX).\u00a0\n\n\n\n\nThe one you didn\u2019t see coming\n\n\nWe spotlight the story that had everyone talking and social media buzzing during the past week.\n\n\n\n\nWarren Buffett / Photo credit: freeimage4life\n\n\n\n\nBerkshire, the trader:\n \nOver decades, US conglomerate Berkshire Hathaway (BRK.A, NYSE) has built a reputation for itself as a long-term investor, with its CEO Warren Buffett famously \nsaying\n\u00a0that its \u201cfavorite holding period is forever.\u201d\u00a0\n\n\nIt was a bit of a surprise then that Berkshire was reported to have \ndisposed\n\u00a0of most of its stake in Taiwan Semiconductor Manufacturing Compan\ny (\nTSMC) (2330, TPE) despite having disclosed a position in the firm in only November 2022.\u00a0\n\n\nBerkshire pocketed a 9% return after only three months \u2013 nothing to sniff at, but leaving observers with many unanswered questions.\u00a0\n\n\nDid Berkshire make an error in its initial assessment? Has something in the industry or macroeconomic environment changed in the interim that affected the investment case for TSMC? Did Berkshire simply find better opportunities elsewhere?\u00a0\n\n\nOr perhaps (\ngasp\n) today\u2019s Berkshire is in the business of making opportunistic trades when the situation warrants.\u00a0\n\n\nIn any case, Buffett and his business partner, Charlie Munger, are no longer the only ones making investment decisions at Berkshire \u2013 this responsibility is now shared with Todd Combs and Ted Weschler.\u00a0\n\n\nFood for thought for anyone tempted to mimic Berkshire\u2019s trades.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it!\n\n\nHappy investing and see you next week!\n\n\nDisclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice."}
{"title": "Bintang Capital\u2019s Asia fund backs Malaysia influencer-marketing firm", "body": "\n\nPhoto credit: Pexels\n\n\n\n\nBintang Capital Partners\n\u2018 Asia-focused fund has backed Involve Asia, a Malaysian marketing tech company. The size of the deal, which was done through Bintang Capital Partners Asia Fund I, was not disclosed.\n\n\nInvolve Asia is a platform that connects businesses with content creators, influencers, developers, and affiliate partners across Southeast Asia. It aims to allow everyone to make money via digital marketing opportunities and is now working on a platform for small and medium-sized businesses.\n\n\nThe opportunity to partner with Involve Asia to create social impact while delivering strong equity returns aligns with Bintang\u2019s philosophy of \u201cinvesting in impact and innovation,\u201d the private equity firm said in a statement.\n\n\nThe investment comes as the number of smartphone users in Southeast Asia continues to climb. According to Insider Intelligence, the region may see that number rise to \n359.4 million users in 2026\n from around 314.8 million users in 2021.\n\n\nSoutheast Asia\u2019s influencer-marketing industry is also expected to hit a market value of \nUS$2.59 billion\n by 2024, a steep increase from just US$638 million in 2019.\n\n\nSee also: \nSocial commerce platform WeBuy seeks $20m to launch financial services"}
{"title": "Malaysia\u2019s digibank race heats up: 3 things to watch", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nMalaysia\u2019s digital banking race is heating up. \u2018Tis the year for consortia to roll out their products, anyway.\n\n\n\n\nBank Negara Malaysia is expected to keep a close eye on the country\u2019s digital banks when they launch this year. / Photo credit:\u00a0Wikimedia Commons\n\n\n\n\nHere\u2019s a quick recap: In May 2022, Bank Negara Malaysia (BNM) announced five consortia for its maiden conventional and Islamic digital banking licenses. The winners are:\n\n\nConventional\n\n\n\n\nBoost Holdings and RHB\n\n\nGrab-Singtel and Kuok Brothers\n\n\nYTL Digital Capital and Sea\n\n\n\n\nIslamic\n\n\n\n\nAeon Financial Services, Aeon Credit Service, and MoneyLion\n\n\nKAF Investment Bank, Jirnexu, MoneyMatch, and Carsome\n\n\n\n\nThe lineup came on the back of a competitive bidding round that included the Malaysian staples of lobbying and alleged political interference. BNM, however, stood its ground as the country\u2019s central bank and delivered a credible and diverse list.\n\n\nI won\u2019t go into specifics for each consortium since I have \nwritten\n about that last year. What we know now is that all of them are expected to be launching their digibanks sometime this year, with most looking at the fourth quarter.\n\n\nTo that end, Grab, for instance, has \nembarked\n on a hiring spree for its digibank arm.\n\n\nThe female chiefs\n\n\nFirstly, it seems that at least four out of the five consortia have picked strong female banking veterans or agency chiefs.\n\n\nAeon appointed \nRaja Teh Maimunah\n. She was AmBank\u2019s wholesale banking managing director prior to becoming Aeon\u2019s digital bank CEO. She is also on the board of Retirement Fund Inc., Malaysia\u2019s pension fund for civil servants.\n\n\nGrab-Singtel\u2019s pick is \nLai Pei Si\n. Also a seasoned professional in the financial services industry, Lai worked as Standard Chartered\u2019s country head and managing director before taking up the Grab gig.\n\n\nRafiza Ghazali\n is leading the KAF consortium and she was formerly the CEO of Cradle, the state-owned startup investor. She also had a stint as innovation head of Sime Darby, a listed diversified group that\u2019s also indirectly owned by the Malaysian government.\n\n\nFinally, \nFozia Amanulla\n is helming the Boost-RHB consortium. She was previously Boost Credit deputy chief and Alliance Islamic Bank CEO.\n\n\nChange of hands\n\n\nSecondly, as everyone\u2019s racing to launch their digital banks, many of their consortium partners will be put through a stringent due diligence test.\n\n\nThis means some of the names on the list might be found wanting. But these partnerships aren\u2019t set in stone and BNM will approve of dropouts since it is what it is \u2013 running a bank is highly regulated and there are standards that need to be met.\n\n\nIt also means that there\u2019s a chance for new, more capable partners to fill those gaps. For those who failed to clinch a digital bank license, this could be their shot to team up with any of the consortia.\n\n\nFinancial hurdles\n\n\nFinally, the most important hurdle that\u2019s worth watching is whether these consortia can meet BNM\u2019s demands. And chief of those demands is to maintain a minimum of 100 million ringgit (US$23 million) in capital in the foundational phase \u2013 an amount that will be raised to 300 million ringgit (US$68 million) by their third year of operations.\n\n\nBefore the five digital banks can commence operations, they will be subjected to the central bank\u2019s audit, which can take between 12 to 24 months.\n\n\nAs such, there\u2019s a possibility of further cash injections from partners or lenders just to meet BNM\u2019s milestones.\n\n\nThese digibanks will also go up against traditional banks, which are more established and entrenched in the Malaysian financial services ecosystem.\n\n\nBrick-and-mortar banks are stepping up their digital game, too. You can, for example, apply for a loan online without stepping into a branch. They\u2019re also equipped with electronic know-your-customer features.\n\n\nPerhaps what\u2019s interesting is the behavior of traditional banks toward their digital counterparts and vice versa.\n\n\nTake the likes of Maybank, the country\u2019s largest bank by total assets and market capitalization. It has an indirect 30% stake via Maybank Alliances in GPay Network Malaysia, the holding company that operates GrabPay. Some sort of partnerships, perhaps?\n\n\nThe horse I\u2019m betting on\n\n\nAnd which digibank am I betting on? Aeon. Simply because not only is it a company listed on the Bursa Malaysia that\u2019s flush with cash, it also has experience offering loans to the underserved and underbanked. This is important because BNM\u2019s primary mandate for digibanks is to accelerate financial inclusion.\n\n\nAeon is a brick-and-mortar business. It has shopping malls across the country, not only in the Klang Valley but also in second-tier cities and towns.\n\n\nA mainstay in each of these malls is the credit department, where you can sign up for a credit card or personal loan. Although Aeon now offers online loan applications, its headstart into the market and its nationwide physical presence make this consortium a frontrunner.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = ringgit."}
{"title": "Shopee quietly rolls out SLoan in Malaysia", "body": "\n\nPhoto credit: Shopee\n\n\n\n\nShopee has quietly launched a new financial services product called \u200b\u200bSLoan for select users in Malaysia.\n\n\nSLoan is already available in other Southeast Asian countries such as the Philippines, Indonesia, and Thailand but under different names. It is known as SPinjam in Indonesia and SEasyCash in Thailand.\n\n\nEligible Shopee users can get access to loans at \u201ccompetitive interest rates, with flexible options to repay in 3, 6, or 12 months (12 months available to selected users only),\u201d according to the company website.\n\n\nThe credit limit for the service is based on Shopee\u2019s internal credit assessment criteria for eligible buyers. Once an eligible user activates the SLoan service on their Shopee account, the loan amount will be credited to their ShopeePay wallet. It can then be used for shopping, sending money, and withdrawals via bank transfer.\n\n\nThe company will charge an interest of 18% per annum on the loan amount, according to a \nreport\n.\n\n\nTech in Asia\n has reached out to Shopee for more details.\n\n\nSee also: \nSea Group enters choppy waters with latest Malaysia deals"}
{"title": "Sea Group enters choppy waters with latest Malaysia deals", "body": "Sea Group wants to boost its Malaysian investments. To that effect, it\u2019s touting two initiatives \u2013 a mega warehouse and a data center \u2013 that aim to \ncreate 2,000 jobs\n in the country.\n\n\n\n\nPhoto credit: Reuters\n\n\n\n\nThese are all well and good but some investors and former government officials \nTech in Asia\n spoke to believe that Sea\u2019s targets may not be realistic.\n\n\nSea\u2019s announcement came as part of a January 29 \npress release\n by Malaysia\u2019s International Trade and Industry Ministry (Miti), which said that the firm, together with two other Singapore-based tech companies, will \ninvest\n a cumulative 13 billion ringgit (almost US$3 billion) over the next few years.\n\n\nMiti didn\u2019t provide a breakdown when asked by \nTech in Asia\n and was instead directed to the cumulative sum. Sea also declined our request for comments on the details of the investment.\n\n\nBut based on the ministry\u2019s statement, Sea is committing to a cloud computing project that\u2019ll be located in a three-story green facility in Johor, Malaysia\u2019s southernmost state, and completed by the first quarter of 2024.\n\n\nThe tech titan\u2019s ecommerce unit, Shopee, will also be expanding its Malaysia footprint through the construction of a mega warehouse in Klang, Selangor.\n\n\nA history of delays\n\n\nTo be sure, Sea\u2019s data center is old news. Last year, the firm was \nrevealed\n to be the anchor tenant for the Green Data Center Park in Johor, which will be constructed by local conglomerate YTL. This is the same announcement in Miti\u2019s latest press release.\n\n\nThat aside, a former Miti official tells \nTech in Asia\n that Sea\u2019s first hurdle is to realize the data center, citing Microsoft\u2019s travails.\n\n\nThe US tech giant announced that it would build a data center in 2014 out of Sedenak in Johor. Three years later, that plan hit a snag with Microsoft reviewing the entire project. Fast forward to 2021, the firm reiterated its commitment to building a data center in the country. At the time of writing, the project has yet to be completed.\n\n\nSea\u2019s data center ambition is also expected to meet regulatory requirements. Malaysian law dictates that data centers, just like telcos, are required to \npay\n a certain percentage of their revenue to a universal service provision (USP) fund run by the country\u2019s communications and multimedia commission (MCMC).\n\n\n\n\nAn illustration of YTL\u2019s data center in Johor / Photo credit: YTL\n\n\n\n\nThis was a problematic development two years ago as industry players expressed concerns that such stringent laws would subject data centers to not only lower margins but \nenforcement\n, including search-and-seizure, where service providers will be compelled to disclose whatever that is requested by MCMC.\n\n\nThe only relief here is if Sea\u2019s data center brings less than 2 million ringgit (US$460,000) in revenue, which would then qualify it for an exemption from contributing to the USP fund. There\u2019s also a possibility that Sea might use its data campus for internal purposes, which would then mean that some regulations may be relaxed.\n\n\nA hot sector\n\n\nTo be sure, Sea is tapping on the Malaysian government\u2019s desire to become a regional hub for data centers.\n\n\nOn paper, the tailwinds for Malaysia\u2019s data center sector are the country being a regional manufacturing hub, lower electricity tariffs, sufficient water supply for the cooling of data centers, ample land, and tax incentives of up to five years from the local government.\n\n\nLondon-based research firm Technavio \nfound\n that the data center market in Malaysia is expected to grow by US$2.1 billion between 2021 and 2026.\n\n\nThe sector saw strong demand from cloud service providers such as Microsoft and Amazon as well as other overseas heavyweights such as Vantage Data Centres and Bridge Data Centres. Local operators like AIMS Data Centre and TM One also contribute to the industry\u2019s growth.\n\n\nA Kuala Lumpur-based tech equity analyst tells \nTech in Asia\n that demand for data centers will outstrip supply in the next two or three years. \u201cHence, we\u2019ll be seeing a few acquisitions of data center businesses by other local companies or even foreign ones,\u201d the analyst adds.\n\n\nLast year, Time Dotcom \u2013 a broadband service provider listed on the Bursa Malaysia \u2013 \nsold\n its data center business, AIMS, for 2 billion ringgit (US$460 million).\n\n\nThe equity analyst also observes that there has been a trend of data center firms locating their campuses outside developed markets such as Hong Kong and Singapore to other Southeast Asian countries. Reasons include lower operating costs as well as increasing digitization across the region.\n\n\nAside from Microsoft, other large companies are also setting up their data centers in Johor, the analyst notes. GDS is building a data campus in the state while YTL and Bridge Data Centres are already setting up their respective facilities.\n\n\nDespite the sector\u2019s growth, an investor who has experience in setting up data centers in Malaysia tells \nTech in Asia\n that Sea\u2019s goals may be \u201ca tad ambitious\u201d even if the firm has all the regulatory approvals down and are piggybacking on YTL for infrastructure.\n\n\nThat\u2019s because Sea still needs to check a wide range of boxes, from acquiring hardware to talent to ensuring that the whole system doesn\u2019t fail. \u201cGiven the demands, it\u2019ll normally take more than a year,\u201d the investor says.\n\n\nHe also notes that return on investment on these efforts usually takes a while. \u201cThere\u2019s a so-called gestation period where you\u2019ll need to put in a lot of money before seeing some returns,\u201d the investor explains.\n\n\nCoincidentally, this is Sea\u2019s second tie-up with YTL. The first is a digital banking consortium, which is expected to launch this year.\n\n\nSee also: \nPleasant surprise in Malaysia\u2019s digibank race\n\n\nA Lazada copy?\n\n\nMeanwhile, on Shopee\u2019s warehouse ambitions, a Kuala Lumpur-based tech analyst says it is mimicking rival Lazada, which also has a large-scale central warehouse in the Klang Valley.\n\n\n\n\nLazada recently invested in Malaysian e-wallet provider TNG Digital / Pic credit: TNG Digital\n\n\n\n\nBut he notes that Lazada is already entrenched within the Malaysian ecosystem, citing Lazada\u2019s investment in local fintech company Touch \u2018n Go, which also has state backing. This is an advantage Sea lacks, the analyst points out.\n\n\nIn addition, the Malaysian logistics sector is facing a price war.\n\n\nTech-savvy upstarts such as J&T Express, Lalamove, and Ninja Van as well as ecommerce platforms such as Lazada and Shopee have all launched their own delivery services.\n\n\nMany of their expansions, the analyst says, were fueled by easy money, which also led to incumbents not being able to cope and eventually closing shop.\n\n\nNationwide Express was delisted from the Bursa Malaysia and ceased operations last November after 37 years, ostensibly due to competition. The firm retrenched 1,100 staff members.\n\n\nAnother listed player, CJ Century Logistics Holdings, sold its loss-making courier arm last year for 7.5 million ringgit (US$1.7 million). Meanwhile, public companies GD Express and Pos Malaysia have posted consecutive quarterly losses over the past three years despite heavy demand for courier and last-mile delivery services.\n\n\nBut with easy money no longer a factor today, \u201chow long can Sea undercut rivals in a move to dominate the logistics space?\u201d, the analyst asks.\n\n\nSea posted an \nadjusted EBITDA\n loss of US$357.7 million for the third quarter of 2022, a \n29% improvement\n from the previous quarter.\n\n\nBut it lowered its guidance for last year, expecting 2022 bookings to be between US$2.6 billion and US$2.8 billion. It previously had a guidance pegged at US$2.9 billion to US$3.1 billion.\n\n\nThe past few months have also been tough for the firm as it had to \nlay off\n more than 10% of its total workforce, translating to 7,000 employees.\n\n\nAmid the negative news, it seems that Sea is looking for some reprieve. But the segments it is wading into for its Malaysian investments are choppy waters."}
{"title": "Foodpanda\u2019s SEA staff face layoffs for second time", "body": "\n\nPhoto credit: Foodpanda\n\n\n\n\nSingapore-based \nFoodpanda\n has laid off an undisclosed number of staff.\n\n\n\u201cAs the global macroeconomic environment continues to be challenging, Foodpanda unfortunately had to make the difficult decision to downsize our team. We are doing all we can to support impacted employees during this transition as much as possible,\u201d a spokesperson for the company said in a statement sent to \nTech in Asia\n.\n\n\nIt appears that many of the affected staff were based in Malaysia, \nas per\n \na number\n of \nLinkedIn posts\n. However, Foodpanda has laid off staff across the Southeast Asian markets it operates in, a source told \nTech in Asia\n.\n\n\nThe food delivery firm declined to disclose any further details when questioned.\n\n\nThe company also said that no riders were cut in this round of cuts, the \nNew Straits Times\n reported.\n\n\nThe move comes after its parent company, Delivery Hero,\u00a0\ncut 156 jobs\n at its Berlin headquarters earlier this month. Days earlier, its Spanish acquisition, Glovo, shrank its headcount by 250.\n\n\nThis is the second round of layoffs that Foodpanda has undertaken recently. Last September, the company conducted a \nround of cuts\n across Southeast Asia in pursuit of profitability.\n\n\nWorldwide, the food delivery segment has slowed down in the past few months. After facing extensive losses, India-based giant Zomato recently \npulled out of 225 cities\n\u00a0and exited\u00a0\nIndonesia\n.\n\n\nSee also:\u00a0\nTracking layoffs across Asia\u2019s startup ecosystem (Updated)"}
{"title": "Fave co-founder and CEO Joel Neoh to step down", "body": "\n\nJoel Neoh, outgoing CEO and co-founder of Fave / Photo credit: Fave\n\n\n\n\nJoel Neoh\n, co-founder and CEO of fintech firm Fave, will be stepping down in early March, two years after the company \nwas acquired\n by Indian merchant platform Pine Labs for US$45 million.\n\n\n\u201cI have had the privilege of a lifetime to work with some of the best talents in Southeast Asia to build Fave into a household brand name \u2013 today, one out of every three Singaporeans, and millions of consumers across Malaysia, Indonesia, and India use Fave on a daily basis for payments and rewards,\u201d Neoh said in a statement.\n\n\nSee also:\u00a0\nFave\u2019s investors are getting all their money back, says CEO\n\n\nNeoh is one of the most notable entrepreneurs-investors in Southeast Asia. In 2010, he co-founded group-buying platform GroupsMore in Malaysia, which was later acquired by Groupon.\n\n\nFave, which began as gym subscription service KFit in 2015, got a new lease on life when it acquired Groupon\u2019s businesses in three Southeast Asian countries two years later.\n\n\nFave offers eCard, a digital card that provides cashback, as well as a digital payments system, a deals portal, and a buy now, pay later service. The startup said it reached its highest volumes of transactions with a 40% quarter-on-quarter growth at the end of 2022.\n\n\nIts other co-founder \nYeoh Chen Chow\n will continue to lead the business, together with Singapore general manager \nAvantika Jain\n, newly appointed Malaysia general manager \nAik Kuang Heng\n, and local leadership teams in Indonesia and India.\n\n\nNeoh will remain active in the regional tech industry through his investments in over 25 startups, with advisory roles in Endeavor Malaysia, XA Network, and Sunway University. He\u2019s also an investor in Nasdaq-listed Prenetics and a limited partner in 500 Southeast Asia III and Better Bite Ventures."}
{"title": "Malaysia budget: Expect fewer goodies for tech and startups", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nMalaysia\u2019s budget for 2023 will be tabled on February 24. Let me break it to you from the get-go: Lower your expectations.\n\n\n\n\nPrime Minister Anwar Ibrahim is expected to table this year\u2019s federal budget on Friday, February 24. Pic credit: Sadiq Asyraf/Prime Minister\u2019s Department\n\n\n\n\nIf you feel a sense of deja vu, I don\u2019t blame you. Budget 2023 was tabled in November last year by a different government, which lost the general election shortly after.\n\n\nAnd now we have a new budget under Prime Minister Anwar Ibrahim.\n\n\nThe new version will need to be tabled again. The bill will also need to pass through the lower and upper houses of Parliament for it to be gazetted.\n\n\nAnwar isn\u2019t compelled to follow his predecessor\u2019s budget blueprint, so he can revamp the whole exercise however he sees fit.\n\n\nWhile we wait for specifics, I\u2019d like to make a call to manage expectations, since the budget also has some bearing on the tech and startup space.\n\n\nAusterity on the horizon?\n\n\nAt the moment, we know that Anwar is \nnot going to bring back\n the Malaysian version of the value-added tax, AKA the good and services tax (GST) \u2013 for now at least. The unpopular GST was abolished in 2018.\n\n\nAnwar also wants to embark on \nfiscal consolidation\n. This is a policy that a government employs to reduce deficits and debt.\n\n\nThe signs point to Anwar turning on austerity mode. For instance, members of parliament recently woke up to the shocking news that their yearly allowance for their constitutions had been slashed from 3.8 million ringgit (US$884,000) to 1.3 million ringgit (US$302,000). This allowance is used by members of parliament and their staff for outreach programs and aid for their constituents.\n\n\nAlso, because taxes fuel government spending, even tech-related programs, such as the \nDE Rantau digital nomad visa\n, will now require expatriates to file their taxes in Malaysia. Previously, it was proposed that the visa exempted digital nomads from paying taxes during their one- or two-year stay in the country.\n\n\nSmaller startup purse\n\n\nDirect startup funding may take a back seat. In the previous version of budget 2023, the old government allocated 467 million ringgit (US$100.4 million) for that purpose. Here\u2019s a recap of startup-related items in that version:\n\n\n\n\n364 million ringgit (US$77.9 million) for research and development under the education and science, technology, and innovation ministries\n\n\n50 million ringgit (US$10.7 million) for Cradle Fund, the coordinating agency of Malaysia\u2019s startup ecosystem\n\n\n10 million ringgit (US$2.1 million) for a VC fund to finance high-tech companies in the electrical and electronics industry as well as the renewable energy sector via equity injections\n\n\n20 million ringgit (US$4.3 million) for Mranti Technology Park, the country\u2019s research and innovation accelerator, to develop health technology and smart manufacturing\n\n\n16 million ringgit (US$3.4 million) to state agency NanoMalaysia for the development and commercialization of nanotechnology\n\n\n7 million ringgit (US$1.5 million) for Malaysia Techlympics 2023, a series of coding competitions for young Malaysians that tackle themes ranging from AI to sustainable innovation\n\n\n\n\nThere\u2019s a high chance that this list won\u2019t stay the same. I\u2019m guessing items like the VC fund will not be tabled this time.\n\n\nGovernment-owned tech agencies will also be expected to continue old programs since money has already been allocated. But there may not be fresh funding. Even if there is, it\u2019ll be smaller than earlier.\n\n\nAlso, government agencies may not be keen on investing \u2013 even in unicorns. Drone services provider Aerodyne, for instance, received around 25 million ringgit (US$5.8 million) in \ninvestments\n from the government in 2020. That isn\u2019t going to happen this time around.\n\n\nThat said, tech startups should still keep an eye out for research and development funding.\n\n\nDigitalization policies under previous governments usually benefited large firms, according to the \nWorld Bank\u2019s Malaysia Economic Monitor for February 2023\n.\n\n\nAnwar\u2019s focus will be on poor households and SMEs, based on my conversations with government folks. So there\u2019ll definitely be opportunities for tech startups to snap up funding, especially for testing out solutions for both of these groups.\n\n\nStatus quo government?\n\n\nOne of the prevailing sentiments about the new government is that Anwar may not try to rock the boat too much policy-wise.\n\n\nThis means that there\u2019ll be a similar approach to affirmative action policies as in the past, with the Malays, the country\u2019s largest ethnic group, being a priority. This is not to say Malaysians of other ethnicities will be left out, but the focus will be on the majority.\n\n\nPerhaps the true game changer would be if the country can ease bureaucratic processes for foreign investments. It\u2019s worth noting that in Malaysia, foreign investments have \ntwo stages\n: realized and approved.\n\n\nThe former consists of typical investment announcements, i.e., proposed investments, while the latter is when a foreign investor directly owns at least 10% equity in a Malaysia-domiciled company.\n\n\nThe time to get from one to the next can be lengthy, and this is where many investments die because of the bureaucratic nightmare that investors have to deal with, besides economic and political risks.\n\n\nI\u2019m guessing this government might throw some incentives or perks to lure foreign investments. But that won\u2019t help as much if investors have a hard time getting their investments approved.\n\n\nCurrency converted from Malaysian ringgit to US Dollar: US$1 = 4.29"}
{"title": "Top Carsome, Capital A execs back events-booking startup", "body": "\n\nKuala Lumpur-based Eventda is an online bookings platform targeting the meetings, incentives, conferences, and exhibitions (MICE) industry. / Photo credit: Eventda\n\n\n\n\nTop executives from prominent Malaysian tech firms Capital A and Carsome are backing a Kuala Lumpur-based startup.\n\n\nEventda, which touts itself as an \u201conline booking platform of meeting rooms, training rooms, event and co-working spaces,\u201d counts Dabraj Singh and Ravi Shankar as advisers and shareholders. Singh is the chief strategy officer of AirAsia\u2019s Super App, a wholly owned subsidiary of Capital A. Shankar is Carsome\u2019s chief marketing officer.\n\n\nEventda\n plans to raise money via equity crowdfunding platform \nAta Plus\n. The startup is targeting the meetings, incentives, conferences, and exhibitions (MICE) industry, where users can go online and book spaces for such events, according to the pitch deck seen by \nTech in Asia\n.\n\n\n\n\nImage credit: Eventda\n\n\n\n\nAccording to company filings, Singh and Shankar joined Eventda as shareholders on June 11, 2021 and December 31, 2021, respectively.\n\n\nThe startup is run by Yovindra Kanezin and SP Sanjay. An aide to a former transport minister in Malaysia, Kanezin later took up a job at PayPal as a risk analyst before moving to Eventda full time. He is also an Eventda shareholder.\n\n\nSanjay is currently the growth marketing manager of AirAsia and digital marketing chief of Netart-India.\n\n\nEventda is looking to raise between 500,000 ringgit (US$117, 000) and 1.5 million ringgit (US$352, 000) through Ata Plus.\n\n\nDespite incorporating in 2016, Eventda\u2019s company filings show it made zero revenue for the years 2017 to 2019.\n\n\nBut in its pitch deck, Eventda said it had signed a \u201c5+3\u201d years contract with a Malaysian government agency, Human Resources Development Corporation (HRD Corp). The deal involves providing HRD Corp with an e-venue platform, allowing companies certified by the agency to source and book rooms for training programs.\n\n\nEventda also claims it grew the business by securing partnerships and growing its inventory over the last year. It did so with only two full-time employees, two interns, and a cash-burn rate of 162,000 ringgit (US$38,000) for fiscal year 2020."}
{"title": "Healthtech firm WhiteCoat grows revenue 3x, aims for profitability in SG", "body": "\n\n(From left) WhiteCoat COO Clara Leow, WhiteCoat founder and CEO Bryan Koh, and Minister Desmond Lee / Photo credit: WhiteCoat\n\n\n\n\nTelehealth firm \nWhiteCoat\n generated over S$10 million (US$7.7 million) in revenue last year, more than tripling the figure from 2021. This year, the startup plans to double that amount.\n\n\nThe Singapore-headquartered company, which was founded in 2018 by \nBryan Koh\n, is also targeting profitability in its home market by the end of the year.\n\n\nIn 2022, the firm expanded into Indonesia and Vietnam. It aims to also reach profitability in these markets within their first four years of operations. It is also looking to expand its insurer- and corporate-focused B2B model into Malaysia and Thailand.\n\n\n\u201cWe will also continue to evaluate and seize expansion opportunities in other parts of the region where we can establish payer partnerships and where there is market receptivity toward telemedicine,\u201d a spokesperson for the company told \nTech in Asia\n.\n\n\nThe firm has started its series B fundraising round, in which it looks to raise US$25 million. WhiteCoat previously closed its series A at \nUS$10 million\n\u00a0in a round led by the GEC-KIP Technology and Innovation Fund.\n\n\nIn addition to its primary care offering, WhiteCoat has also recently launched pediatrics, obstetrics, chronic disease management, and mental wellness services.\n\n\nThis news comes after the firm opened up its regional headquarters in Singapore.\n\n\nSee also: \nThis Indonesian healthtech firm checked out of hospitals to run clinics\n \n\n\nCurrency converted from Singapore dollar to US dollar: US$1 = S$1.30."}
{"title": "Grab scouts for engineers in Malaysia", "body": "\n\nImage credit: Grab\n\n\n\n\nGrab Malaysia\n is looking to hire several engineers for its engineering center in Kuala Lumpur.\n\n\nIt has openings for a number of roles in the vertical \u2013 including head of engineering, director of engineering, and lead software engineers \u2013 according to a \nLinkedIn post\n by \nFadrizul Hasani,\n CTO of Grab Digibank Project. The super app has already hired over 60 engineers in the country, he said.\n\n\n\u201cWe want to build the best digital bank (and the best bank!!) and more importantly to cultivate engineering talents in the country,\u201d Hasani wrote.\n\n\nGXS Bank, a joint venture between Grab and Singtel, \nwon a digital bank license\n from Bank Negara Malaysia in April last year. The entity has just appointed banking veteran\u00a0\nMuthukrishnan Ramaswami\n as its group CEO.\n\n\nSee also: \nMaking sense of Grab\u2019s cloud kitchen shutdown in Indonesia"}
{"title": "Genesis bankruptcy: Luno Malaysia assures funds are safe", "body": "\n\nPhoto credit: Luno\n\n\n\n\nThe Malaysian arm of crypto exchange \nLuno\n is denying that customer funds are intermingled with its parent, crypto investment firm Digital Currency Group (DCG), or its subsidiaries. This includes Genesis, a lending firm that \nfiled for bankruptcy recently\n.\n\n\nKuala Lumpur-based industry insiders raised this concern with \nTech in Asia\n despite Genesis not being approved by the local regulator, Securities Commission Malaysia (SC).\n\n\nLuno is Genesis\u2019 sister company and lending partner. In the case of the latter, Luno users were able to sign up for a savings wallet that let them earn interest on crypto. In turn, the crypto assets in those savings wallets would be used by Genesis for its loans. But the savings wallet was not offered to any Malaysian customers.\n\n\nIn November last year, Luno took steps to ensure its customers had access to their savings wallets after Genesis decided to temporarily suspend redemptions and loan originations.\n\n\nOne source told us that there were concerns that funds from Luno Malaysia were mixed together with those from other countries \u2013 which had access to Genesis \u2013 in a single wallet.\n\n\nHowever, Luno Malaysia country manager \nAaron Tang\n told \nTech in Asia\n that all customer funds on the platform are not interlinked with DCG or any of its subsidiaries.\n\n\n\u201cMost importantly, irrespective of how Luno as a business is funded, customer funds are always segregated from corporate funds,\u201d he said.\n\n\nTang assured customer funds are maintained with its \u201cappointed trustee partner\u201d per SC requirements.\n\n\nDCG, a crypto conglomerate, is among several firms entangled in the fallout from the collapse of FTX, formerly one of the world\u2019s largest crypto exchanges. This led to DCG\u2019s lending unit, Genesis, filing for bankruptcy.\n\n\nSee also: \nTracking the ripple effects of FTX\u2019s collapse\n\n\nAside from the Genesis debacle, Luno also \nlaid off 35% of its global workforce\n last week.\n\n\nTang told \nTech in Asia\n that internal redundancies had no impact on customers and operations. \u201cI believe it\u2019s also important to reiterate to everyone that customer funds are safe and operations continue as normal,\u201d he added.\n\n\nUpdated (February 10, 12:53 p.m. SGT): This article was updated to include additional information on Luno\u2019s savings wallet."}
{"title": "The lowdown on Malaysia\u2019s digital nomad visa", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nSo you want to be a digital nomad in Malaysia but need some details. Well, I\u2019ve got you covered today.\n\n\nThe country launched DE Rantau, a visa dedicated to these nomads, in October 2022. There\u2019s an \nFAQ\n by the program\u2019s coordinating agency, the Malaysia Digital Economy Corporation (MDEC), that you can check out.\n\n\nKey information to remember from the get-go: It costs US$212 (1,000 ringgit) per applicant and half of this amount for each dependent. The visa is valid for 12 months and renewable for an extra year.\n\n\nThere are some perks, including multiple entries to the country and the option to bring along your immediate family as you ply your trade here.\n\n\nBut there are some teething problems: The visa only covers Peninsular Malaysia, so if you want to travel to Sabah and Sarawak, you need a tourist visa.\n\n\nMore importantly, MDEC hasn\u2019t been able to fix a major issue: the ability for a digital nomad to open a bank account with a local branch. Only yesterday was MDEC able to \nsolve\n\u00a0the ever-important income tax residency status. Spoiler alert: you need to pay tax.\n\n\nAlso, some noted that the waiting time for the DE Rantau is longer than usual. Yep, typical Malaysian problems.\n\n\n\n\nOliver Woods (in the blue batik shirt) receiving his DE Rantau visa on January 20 this year / Photo credit: Malaysia Digital Economy Corporation\n\n\n\n\nThat said, some have tried to apply and have received their visas. Oliver Woods, who coincidentally is the country\u2019s first digital nomad, is an example. Woods hails from New Zealand and has been in Malaysia for nearly a decade.\n\n\nHis first job here was as a social media lead for advertising agency Leo Burnett. In 2016, he moved on to work on various online ad projects \u2013 he has a digital marketing firm in Vietnam and made that country his home base, until recently.\n\n\nCurrently, just like other Malaysian digital nomads, Woods is still liaising with MDEC to sort out visa-related problems.\n\n\nYou may be thinking, why bother applying if the visa\u2019s this problematic? Well, Malaysia is known for its multilingual workforce, good infrastructure with well-connected airports and steady internet connection, and relatively lower cost of living even in the capital, Kuala Lumpur. And let\u2019s not forget, the country is a gastronomic delight, even better than Singapore.\n\n\nAnyway, below is my conversation with Woods, which has been edited for brevity and clarity:\n\n\nWhat motivated you to apply for DE Rantau?\n\n\nWhen I applied last year, I was already a digital nomad and had been traveling a lot. I was in Vietnam, then visited Malaysia, and then New Zealand to reconnect with family and friends. But I always wanted to make Malaysia my home base and from here, travel around the region.\n\n\nThe program looked really attractive. And, I must admit, there\u2019s also an element where I thought it would be cool to be a legal digital nomad.\n\n\nCan you walk us through the process?\n\n\nInitially, it felt quite intimidating. But looking back, it\u2019s not that different from a lot of other visas anywhere else in the world. I was one of the first few applicants, so there were definitely some technical issues.\n\n\nThe biggest challenge was the wait \u2013 I waited for about three months. There was reasonably good communication between myself and MDEC, but there were definitely periods of silence.\n\n\nI\u2019d say that was my biggest stress factor during the application process. There were times when I wouldn\u2019t hear from them (MDEC) for a few weeks.\n\n\nI had to really follow up with emails every week. I was also calling them all the time. Aside from the processing delays, it was actually a pretty easy process and everything was done digitally.\n\n\nWhat was the main pain point about the delay? The approval timeline?\n\n\nThe main frustration was the long duration for application processing, which was said to take four weeks maximum, plus another week for immigration. I think a lot of people, myself included, took that information at face value.\n\n\nBut, now, I run a \nFacebook group\n and a WhatsApp group for the digital nomad community. We\u2019re hearing that there are a lot of approvals but also rejections, so I take that as MDEC accelerating the processing time.\n\n\nThe other side to this delay is the fact that they (MDEC) are rigorously checking people to draw in those with caliber. Applicants need to be serious entrepreneurs or professionals in the digital domain, whether you are a UX/UI designer or a content creator.\n\n\nWhat can digital nomads bring to a country like Malaysia?\n\n\nA well-structured program like DE Rantau requires a relatively high level of credentials. You need to furnish proof \u2013 client invoices, CVs, etc. \u2013 to show that you\u2019re serious. The aim is, after all, to attract skilled workers, especially in the tech sector.\n\n\nInitially, one of the challenges was Malaysia\u2019s immigration approach, which has been quite restrictive and limited to high-tech workers.\n\n\nBut with DE Rantau, there\u2019s a potential easing of approvals, so it\u2019s a good way to introduce high-tech talent into the market that can either contribute to existing enterprises or even build a pipeline of products for the digital economy.\n\n\nThe program\u2019s a nice way of plugging the gaps in terms of skill shortages in the digital space.\n\n\nFinally, any tips for aspiring digital nomads?\n\n\nNumber one, make sure you don\u2019t just hit the minimum requirements. Give as much information in a well-structured, well-documented manner. I assume that some rejections stem from people who didn\u2019t make it easy for MDEC and the immigration department to process those documents.\n\n\nMake sure that each document is 100% accurate. Don\u2019t cut corners and don\u2019t do it in a hurry.\n\n\nAlso, try to go above and submit as much documentation as possible. One of the things they ask for is client contacts. So aside from the contracts, provide invoices, purchase orders \u2026 double down on everything and give extra layers of proof.\n\n\nEven when uploading your degrees, try to add certificates and awards. For instance, in advertising, you might have been involved in projects that have won awards before. Mention them.\n\n\nYour goal in your application is to prove that you\u2019re a high-caliber person who wants to contribute to Malaysia\u2019s digital economy.\n\n\nThe other thing that\u2019s really important is to stay in regular communication with MDEC. Email them probably once a week and call them frequently. The good news is the hotline works, and MDEC staff are great to talk to and amazingly helpful and considerate.\n\n\nSo be positive and keep the conversation going with MDEC until you get your visa."}
{"title": "Sea says it will add over 2,000 jobs in Malaysia", "body": "Shopee\u2019s parent company\u00a0\nSea Group\n said it will generate over 2,000 jobs in Malaysia, which is a rather surprising announcement in this cost-cutting environment.\n\n\n\n\nSea Group founder and group CEO Forrest Li / Photo credit: Sea Group\n\n\n\n\nThe company made the commitment during a meeting with officials from Malaysia\u2019s Ministry of International Trade and Industry at its headquarters in Singapore.\n\n\nAccordingly, Sea plans to open a global cloud computing center and a new warehouse for Shopee in Malaysia. It also looks to set up \ncloud\n \nservices as well as\n\u00a0\ndata\n \nhosting\n \nand\n \nprocessing in the country.\u00a0\n\n\nThe cloud center is slated to be open in the first quarter of 2024. While the company didn\u2019t share a timeline for the ecommerce warehouse, it will be a 1.4-million square-foot facility to be located in Bukit Raja, Klang. The ministry said it will be among the biggest of its kind in Malaysia.\n\n\nSea reportedly \nhad to cut\n 7,000 jobs, or 10% of its workforce, last year amid slower growth for all of its segments.\n\n\nIt\u2019s also estimated that the firm\u2019s \nshare price dropped by almost 80% in 2022.\n\n\nSee also:\u00a0\nWhy Sea\u2019s shares jumped 36% after its Q3 results"}
{"title": "Malaysia gold-trading firm HelloGold to shut shop", "body": "Malaysian investment platform \nHelloGold\n is closing its doors in its home country and Thailand on February 2 due to the tough macroeconomic climate.\n\n\nThe decision was made as HelloGold\u2019s services were \u201cno longer commercially viable,\u201d CEO and co-founder \nRobin Lee\n said in an email to depositors.\n\n\n\n\nHelloGold founder and CEO Robin Lee / Photo credit: HelloGold\n\n\n\n\nThe firm\u2019s customers are still free to buy and sell gold through its platform, but any remaining gold held after 7 a.m. Malaysia time on February 2 will automatically be sold at noon the same day.\n\n\nCustomers on HelloGold\u2019s Smart Saver product, which automatically trades gold at lower rates, will have all their gold transferred to their regular HelloGold accounts by 12 noon Malaysia time on Firday.\n\n\n\u201cWe expect that the platform may experience high traffic following this announcement and therefore apologise in advance for any inconvenience caused,\u201d the company said.\n\n\nSee also: \nWhy are Gojek, Bukalapak, and Tokopedia gunning for digital gold?\n\n\nHelloGold was founded in 2015 by Lee and Ridwan Abdullah, who\u2019s also the firm\u2019s strategy lead. The company said it was the first Shariah-compliant platform for buying and selling gold.\n\n\nIt joins the growing list of startups in the region that are shutting down, including the likes of\u00a0\nSingapore\u2019s UglyFood\n, \nMalaysia\u2019s Kaodim\n, \nIndonesia\u2019s TokoTalk\n, and \nVietnam\u2019s Propzy\n.\n\n\n\u00a0"}
{"title": "Malaysia can be a global SaaS leader, says this VC", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\n\nToday\u2019s column is the second and final installment of my interview with Kevin Brockland, the managing partner of Kuala Lumpur-based VC firm Indelible Ventures.\n\n\n\n\nPhoto credit: Wikimedia Commons\n\n\n\n\nIn the \nprevious segment\n, we discussed, among others, his initiatives in putting Malaysian startups on the map as well as why the country is a good place \u2013 even better than Singapore \u2013 to establish a startup.\n\n\nToday, we dive into some of the issues he\u2019s faced being a VC in Malaysia as well as deals he\u2019ll be keeping an eye out for.\n\n\nThe following interview has been edited for brevity and clarity:\n\n\nWhere will you be putting your money this year?\n\n\nI\u2019m quite big on B2B \nSaaS\n. I think there\u2019s a huge opportunity for companies in Malaysia because of the knowledge set that comes from so many multinational corporations that have these different enabling factors to be able to service not just the region but the globe.\n\n\nThere\u2019s a number of companies here in Malaysia that are building default global products that can be sold, that are building out these great product-led growth motions.\n\n\nAnd there\u2019s a number of those that are up and coming. There\u2019s some that I missed because they are just too big for me. But that\u2019s an area that I\u2019m really excited about because, especially when you start talking about the nearby markets within Southeast Asia, they\u2019re starting to come around. And we\u2019re going to start seeing a similar trend that we\u2019ve seen in other parts of the world where the level of adoption within enterprise is going to start gaining pace and accelerating.\n\n\nI believe that Malaysia is very well-positioned to be one of the leaders in the enterprise SaaS segment for the region. And because of the low cost base, we can actually leverage the growth that we get here and then turn into creating globally competitive products that can then penetrate other markets across the globe.\n\n\nFor the most part, some of the big players out of the US and Europe may set up a representative office in this part of the world. But they\u2019re not a huge focal point. So we have this opportunity to build up and then leverage that position to move outside.\n\n\nIt\u2019s similar to what I brought up earlier about Malaysia going into other markets. If we wait too long, these big players are gonna end up coming in and entrenching themselves.\n\n\nBut if we can be the ones that entrench and then leverage that position of strength in order to move out, we can actually play those dynamics to our benefit.\n\n\nTell us some of the problems you faced when setting up shop here.\n\n\nIf I was setting up during the non-Covid period, I probably would have tried to just go off with a tourist pass and be in and out, and do the visa runs.\n\n\nBut it wouldn\u2019t pan out because if I have my children here, they need a registered visa in order to be able to go to school.\n\n\nOne of the biggest headaches, however, is just being allowed to be in the country. Not an easy process. I had the assumption that it would be a more open door.\n\n\nHow did you overcome those hurdles?\n\n\nKept emailing, kept calling. The visa that I was on was expiring and I had to leave the country for four months while I was still trying to launch and run operations.\n\n\nBut I couldn\u2019t physically be in Malaysia because I was still waiting and waiting for my visa to be renewed. The whole process was just quite difficult.\n\n\nI had investors backing out because why is someone going to invest in a country that doesn\u2019t even want a manager there or makes it so difficult to do so? That throws up red flags, right?\n\n\nThoughts on being domiciled abroad?\n\n\nIf you look at most large companies in Malaysia that have gotten large sums of money invested in them, I\u2019d venture to bet that most of them have a holding company in Singapore or elsewhere at the demand of their investors.\n\n\nBut having the operations, having the core team, having all of that in the country \u2013 that\u2019s what actually matters. That\u2019s where you create the brand of a Malaysian company. If all the team moves, that\u2019s a different story.\n\n\nBut the core team, core management, founders, etc. are in Malaysia, and they form the country\u2019s tax base. Those are the people spending and working in the economy. Those are the ones that are stimulating all the rest of it \u2013 all the relative effects that you\u2019re trying to generate by creating the startup.\n\n\nAs for holding companies domiciled elsewhere, it\u2019s not unique to hear the same thing happening in most places around the world. If you look at Latin America, most of those companies will domicile in the US. When you look at Europe, most of those companies will start domiciling in certain hubs.\n\n\nWhat\u2019s your advice for early-stage startups?\n\n\nFounders need to realize that it has never been easier to set up a startup but it\u2019s never been harder to succeed.\n\n\nThe barrier to entry to put a minimum viable product out is significantly harder these days. The demands on execution are significantly higher. The bar is being raised. And because of that, it\u2019s harder to raise capital.\n\n\nThat said, there\u2019s an abundance of capital. When you look at Asia Pacific, you\u2019re starting to see an increasing allocation.\n\n\nThere is a lot of money in the ecosystem and there\u2019s going to be more coming into venture because family offices are now waking up and starting to allocate. And if just 1% allocation of that big pool of family office wealth comes into venture, you\u2019re talking about an impact on that ecosystem in the tens of billions of dollars, if not more, and some of the statistics might not even be capturing it all.\n\n\nSo there\u2019s massive pools of wealth that are going to end up coming in, but there is a lot of competition. When you talk about from now and the next few years, companies will need to level up their capabilities.\n\n\nThat means trying to hustle, trying to engage the community, developing learnings that you get from engaging with other entrepreneurs, and getting trusted partners on board \u2013 especially people that have been there and done that, as well as those who have connections in other markets. Because it\u2019s really tough but not impossible. So focus on improving those founder skillsets.\n\n\nHas the prospects of an economic downturn affected you as a VC?\n\n\nIf we look at the VC industry as a whole, there are a number of impacts such as the denominator effect, where a portion of the portfolio decreases and drastically pulls down the overall value.\n\n\nYou\u2019ll also see first-time funders and a number of funds get washed out and not get renewed.\n\n\nYou don\u2019t have to generally worry about institutions but when you talk about emerging fund managers \u2013 those who are on their fund one, two, or three \u2013 or high-net-worth individuals, maybe some corporate VCs, family offices \u2026 these entities are generally more sensitive to economic conditions.\n\n\nThis means that things could end up affecting the cash cow component of their lifestyles. And then when they look at some of the obligations that they\u2019ve made, they may end up resisting or shrinking back. Or maybe they agreed to commit but then they end up pulling back.\n\n\nSo there are a number of nuances. But when you look at the VC industry as a whole, more money is being allocated into it. So there\u2019s still a space for people that invest well and are good at what they do.\n\n\nSo I like to think that I fall into that last category of the ones that are good at what they do. But that\u2019d be me patting myself on the back. I\u2019ll have to let my performance speak for itself."}
{"title": "Apple seeks staff for Malaysia retail push", "body": "Apple\n has started recruiting staff in Malaysia, signaling the US tech titan\u2019s retail foray into the country, \nBloomberg\n reported.\n\n\nThe company is searching for store managers, store leaders, account managers, and technical specialists, among other roles. Though the openings do not indicate a specific city base, it\u2019s likely that Apple will set up shop in Kuala Lumpur, the country\u2019s capital.\n\n\nThis marks the third Southeast Asian market where Apple has built physical stores. \nSingapore was the first\n, with the doors to its first location opening in 2017. The following year, Apple followed up with a shop in Bangkok, Thailand.\n\n\nTo date, the firm has \n522 shops\n worldwide, with over half of them located in the US.\n\n\nSo far, Apple is one of the only tech giants to steer clear of mass layoffs. Though the company \nexpanded its headcount\n by 17,000 between 2020 to 2021 and announced a hiring freeze, it has not announced any plans to cut jobs.\n\n\nSee also: \nStartup allegedly lied about Apple, LVMH investment; axed most of its staff\n "}
{"title": "Tony Fernandes thinks Capital A will be worth 4x more. Is he right?", "body": "A few days into the new year, Capital A CEO Tony Fernandes \ntook\n to LinkedIn to inform his readers that he wanted to \u201cprove everyone wrong.\u201d\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe businessman claimed that by the end of the year, Capital A would be worth four times what it is.\n\n\n\u201cChina is open. 150 planes back. 54 to go. Digital companies and red aviation services are very profitable,\u201d he wrote.\n\n\nWhen we \ncovered\n Capital A last year, Fernandes was busy hyping up the group only to face a funding setback: Its 500 million ringgit (US$118 million) loan backed by state-owned financial insurer Danajamin fell apart.\n\n\nCapital A, however, inched forward to close out 2022 but not without turbulence.\n\n\nFlights gradually picked up, with Kuala Lumpur-based equity analysts bullish on the aviation sector, but Capital A\u2019s aviation arm, AirAsia, has been \ncriticized\n for delays and last-minute cancelations.\n\n\nThe group was also \nslapped\n with the Practice Note 17 (PN17) status \u2013 a label given to financially distressed listed companies by the Bursa Malaysia.\n\n\nPN17 companies are given a timeframe to submit a financial regularization plan, which is basically a roadmap that spells out steps the company will take to ensure it remains a \ngoing concern\n.\n\n\nAmid these developments, investors familiar with Capital A\u2019s business investors speaking to \nTech in Asia\n say they were also skeptical of the firm\u2019s digital business, which Fernandes has been touting to be the next big thing after Grab and Gojek.\n\n\nThe Capital A CEO even \nsaid\n it could dethrone both unicorns as Southeast Asia\u2019s e-hailing champion.\n\n\nBut two Malaysian investors tell us that the firm has to face fierce competition at home as well as the screeching halt of easy money it saw in 2022.\n\n\nCapital A\u2019s rivals have had a head start, and the group\u2019s major digital business lines need cash to burn. \u201cWhich they don\u2019t have. If not, Capital A wouldn\u2019t be labeled PN17,\u201d one of the investors said.\n\n\nQuestionable food delivery biz\n\n\nOne of the earliest cracks in Capital A\u2019s digital armor came on New Year\u2019s day when Singaporean daily \nThe Straits Times\n \nwrote\n that AirAsia Food no longer operated in the city-state.\n\n\nThe publication reported that it had discovered this after placing an order on its website by keying in an address in Singapore. A message appeared saying the address was outside the service\u2019s coverage area.\n\n\nThe news publication added that the web service asked users to \u201ccheck (the service) out\u201d at several Malaysian locations, such as Sri Petaling in Kuala Lumpur and George Town in Penang.\n\n\nThe \nStraits Times\n tried to order via AirAsia Food over 12 consecutive days, from December 20 to 31, 2022. It found a successful order could not be placed and neither did AirAsia Food answer its queries.\n\n\nSome Malaysian consumers speaking to \nTech in Asia\n also expressed doubt over the service, saying they couldn\u2019t place an order despite keying a local address.\n\n\nTech in Asia\n has reached out to Capital A for comment but has not received a reply at the time of publication.\n\n\nEnter: the lone bullish voice\n\n\nNot all investors or analysts are bearish on Capital A\u2019s digital ventures, however.\n\n\nOne equities analyst who drew attention last year was Maybank Investment Bank analyst Samuel Yin, who valued the group\u2019s digital assets at 5.66 billion ringgit (US$1.3 billion) or 94 sen (21 cents) per share \u2014 more than the group\u2019s market value of 2.37 billion ringgit (US$550 million) that day when the stock closed at 57.5 sen (13 cents).\n\n\nAt the time of publication, Capital A\u2019s shares are trading at 69 sen (16 cents), giving the group a 2.87 billion ringgit (US$660 million) market capitalization.\n\n\nBusiness publication \nThe Edge\n \nquestioned\n the valuation as Capital A\u2019s digital arm was still burning cash. Also, at 5.66 billion ringgit, its valuation was much higher than that of other profitable companies on the Bursa Malaysia.\n\n\nYin told \nThe Edge\n that the 5.66 billion ringgit valuation only took into account two components of Capital A\u2019s digital arm: the AirAsia Super App and Teleport.\n\n\n\u201cIn July 2021, when CapA acquired Gojek\u2019s operations in Thailand in return for a 4.76% stake in airasia Super App, the deal valued Airasia Super App at US$1 billion. Similarly, Teleport\u2019s acquisition of DeliverEat for US$9.8 million in August 2021 valued the logistics unit at US$300 million,\u201d he explained to \nThe Edge\n.\n\n\nBut 2021 was also the year where listed tech darlings saw their valuations \nmarked down\n.\n\n\nHe went on to defend his estimate by saying that Grab and Sea \u2013 while commanding billions in market value \u2013 do not have positive \nEBITDA\n.\n\n\nOn the other hand, the Airasia Super App reported positive EBITDA in the third quarter ended September 30, 2022, with Teleport also reporting positive EBITDA, supported by increased bellyhold capacity, which is the vacant space in the bellies of passenger aircraft after passengers\u2019 registered luggage has been loaded.\n\n\nYin maintained that position in his latest report, published on January 9. He tells \nTech in Asia\n that by the end of this year and early part of next year that his valuation \u201cis not very difficult to support.\u201d He opines that it\u2019ll be the other way around, i.e., how can Grab and Goto justify their valuations?\n\n\nAside from being EBITDA positive, Yin explains that the Airasia Super App is akin to Traveloka or Booking.com where the main focus is to bundle rides with travel, unlike Grab, which pairs food and rides.\n\n\n\u201cIf you look at super app, the business, which is travel and tourism, is increasing. Just to give an idea, during 2Q 2022, when the country and ASEAN reopened, they were already EBITDA positive. This is significant to me because Grab, GoTo, and Sea can\u2019t churn out EBITDA.\u201d\n\n\nThe logistics gambit\n\n\nOther Kuala Lumpur-based analysts remain skeptical. One analyst told us that valuations are likely to be lower now than in the previous two years as easy money has gotten harder to come by.\n\n\nEven giants such as Grab and Sea are delaying funding because figures are unlikely to be as high as they were last year, he said.\n\n\nAnother analyst said that while Teleport may be able to undercut its competitors, the local logistics space is heating up as price wars are afoot. \u201cHowever, that (Teleport) seems to be one of the most outstanding ones in Capital A\u2019s arsenal,\u201d she said.\n\n\nLast month, Teleport said it \nraised\n US$50 million from \u201clarge institutional credit investors\u201d to fuel growth. It also recently poured an \nundisclosed amount\n into \nKargo Technologies\n, an Indonesian trucking marketplace.\n\n\nBut competition in the Malaysian logistics sector is fierce. For example, Nationwide Express was delisted from the Bursa Malaysia and \nceased operations\n on November 16, after 37 years, ostensibly due to heavy competition. The firm retrenched 1,100 staff members.\n\n\nAmong other \nreasons\n the entry of newer, tech-savvy players, such as J&T Express, Lalamove, and Ninja Van and delivery services from deep-pocketed ecommerce platforms such as Lazada and Shopee, has led to the decimation of logistics\u2019 old dogs in Malaysia.\n\n\nBut since Teleport is tied directly to Capital A\u2019s aviation arm, AirAsia, there might be some upside that other logistics players lack.\n\n\nTeleport relies on AirAsia\u2019s network, and it also has its own fleet of delivery partners. Other competitors with similar business models include DHL and FedEx.\n\n\nFernandes wrote in a LinkedIn post on Monday that anyone in Kuala Lumpur can use Teleport for next-day parcel deliveries to Singapore for a flat rate of 40 ringgit (US$9.28).\n\n\n\u201cThat is almost 80 percent cheaper than our closest competitor for next-day cross-border delivery,\u201d he wrote, adding that services in other cities such as Bangkok, Jakarta, and Manila will be available soon.\n\n\nFor context, DHL announced on September 26, 2022, that it would raise prices by an average of 7.9% for its services, starting January 1.\n\n\nIf there\u2019s one business in Capital A\u2019s arsenal that needs some attention it is BigPay, opines Maybank\u2019s Yin.\n\n\n\u201cThe business has been loss-making for quite a while. They told us they are going to integrate the backend with Super App to incur less cost. Big Pay will also complement the app where you can buy a ticket and hotel, and you can get to the hotel with an AirAsia ride and then use BigPay for transactions. So that\u2019s the environment they are trying to set up.\u201d\n\n\nDigital to supersede aviation\n\n\nWhile the consensus may be split on Capital A\u2019s digital arm, some research houses remain bullish on its aviation business, AirAsia.\n\n\nEquities analysts from two institutional investment banks \u2014 Maybank and Hong Leong \u2014 said a combination of easing jet fuel prices, higher fares, the reopening of China\u2019s borders, and more aircraft returning to service will help Capital A break even around the third quarter of this year.\n\n\nBut everything comes down to Capital A\u2019s plan to return to the black. The group plans to inject or transfer AirAsia to AirAsia X (AAX), the former\u2019s listed long-haul sister, in exchange for shares that will then be distributed among its shareholders.\n\n\nCapital A is supposed to provide more details on the spin-off any time between the end of this month and early February, with the exercise to be completed by July this year.\n\n\nBarring any unforeseen events, this means that Capital A will be a purely digital company, consisting of maintenance, repair, and overhaul (Asia Digital Engineering), logistics (Teleport), digital (Airasia Super App), and fintech (BigPay) businesses.\n\n\nAAX will be rebranded as AirAsia Group and consist of six airlines: \u00adAir\u00adAsia Bhd, Thai AirAsia, AirAsia Indonesia, AirAsia Philippines, AAX Malaysia, and Thai AAX.\n\n\nYin is projecting that for now, Asia Digital Engineering will generate the most earnings but the super app will outstrip that. He is betting that Capital A will return to the black by the third quarter of this year.\n\n\nThis could also likely mean that Capital A will be pursuing a separate spin-off listing in the future, once its PN17 status is fixed. That would meet Fernandes\u2019 \ntimeline\n for a US listing sometime this year."}
{"title": "Malaysia is a better place than Singapore to found a startup, says this VC", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles.\n\n\nKevin Brockland runs Kuala Lumpur-based Indelible Ventures, a seed-stage venture fund. He is also one of the more bullish voices for Malaysian startups \u2013 at least from the viewpoint of my LinkedIn feed.\n\n\n\n\nKevin Brockland runs Kuala Lumpur-based seed-stage fund Indelible Ventures / Photo credit: Kevin Brockland\n\n\n\n\nBut Brockland isn\u2019t Malaysian, he is American. And, he has been in the country since 2015 when he worked as the principal investment officer and director for the Media Development Fund until 2021. He would go on to found Indelible Ventures shortly after.\n\n\nNaturally, he has drawn a fair share of curiosity from the VC and investor space over here, simply because tech ventures here aren\u2019t as hot as in neighboring Singapore \u2013 or even Indonesia and Vietnam.\n\n\nWhat is he doing here then? From my perspective, the Malaysian scene is a bit uneventful. Local champions with the ability to compete abroad are an exotic species, with a number of promising players moving abroad to countries like Singapore at the behest of their investors.\n\n\nBrockland, however, thinks differently. Besides putting his money where his mouth is, he has also launched a podcast called SEA of Startups to showcase Malaysian talent and is also looking to relaunch the Founder Institute in Malaysia. The famous Silicon Valley pre-seed accelerator was here for some time but has gone dormant. Brockland wants to reboot it.\n\n\nWe had a good chat recently about his Malaysian adventure. I\u2019ll be splitting this into two parts. Today, we talk about his podcast and the pros and cons of the Malaysian startup ecosystem.\n\n\nThe following interview has been edited for brevity and clarity:\n\n\nWhy did you decide to start a podcast on Malaysian startups?\n\n\nI\u2019m an extremely obsessive podcast listener, and when I listen to a lot of podcasts in the startup space, they\u2019re hugely valuable. You can extract a large amount of information and value by listening to some of the conversations.\n\n\nAnd if you listen to the podcast, I kind of follow the same format, starting from the origin story of a startup and really trying to get a read on how the companies have been built and developed over time. So there are practical takeaways for other founders.\n\n\nWhen I launched the podcast, there were two priorities. Priority one is to send these podcasts through to my own mailing list of investors, who are primarily based outside of Malaysia.\n\n\nThe intent there was that I felt people outside of Malaysia don\u2019t know much about the success stories here.\n\n\nSo, when somebody says, \u201cHey, what do you think about putting capital in Malaysia?\u201d the response is generally one of two things, depending on which part of the world they\u2019re from.\n\n\n\u201cWhere\u2019s Malaysia?\u201d \u2013 if you\u2019re talking to an American, because we\u2019re not so good at geography. Or it\u2019s \u201cWait, they actually have a startup ecosystem?\u201d\n\n\nAnd that\u2019s a problem. I think that there\u2019s a branding and marketing problem where people just don\u2019t really see those stories being highlighted, and you don\u2019t necessarily get to know how good the understanding and some of these entrepreneurs are.\n\n\nPriority two is other founders who listen to it. Hopefully, it\u2019s going to be useful because I think that there is a lack of community and knowledge sharing within the startup ecosystem.\n\n\nHow do you select interviewees?\n\n\nI\u2019m about six months in, so I\u2019ve done around 20 or 30 interviews so far. Only three of those are my investees.\n\n\nSo as nice as it would be for me to turn this to highlight my own portfolio \u2013 or as we say in the business, \u201cto talk my own book\u201d \u2013 I want to highlight the fact that there are other companies out there, whether they fit my criteria or not.\n\n\nBecause I take a view of, let\u2019s call it the rising-tide-lifts-all-boats mentality.\n\n\nBecause where we\u2019re at right now is a lack of awareness that the Malaysian ecosystem as a whole is creating enough entrepreneurs to become a focal point for capital.\n\n\nThat\u2019s because there are a lot of other countries and cities with a very high volume of entrepreneurship.\n\n\nAnd when you talk about early-stage companies, funds are trying to circle around volume because it\u2019s a numbers game when it comes down to it \u2013 and there are also costs associated with it.\n\n\nIf I\u2019m an early-stage fund, and I say that I need to do 30 to 50 investments over the course of, say, two to three years, then by necessity, I have to be centered in an area that can crank out that kind of volume within my defined criteria or specialization, as most are not generalists.\n\n\nThen to add an additional city that\u2019s only contributing five of that 50\u2026 it\u2019s hard to make the justification to come in for a small check size. So what\u2019s happened is that players don\u2019t really enter Malaysia other than for larger check sizes. Unless an individual has a direct relationship or some other connection in order to make that draw.\n\n\nBut generally speaking, these days, people don\u2019t cross borders for small checks.\n\n\nMalaysia\u2019s startup ecosystem didn\u2019t happen overnight so why aren\u2019t we getting more headlines abroad?\n\n\nIt\u2019s a complicated question with a number of different causal factors. But, I\u2019ll say on one end of it, it comes back to the volume aspect. I think what we failed is in creating, improving, and enabling the environment to produce volume.\n\n\nAnd for me, personally, I look at Malaysia because of all of the enabling factors as being able to be kind of a Singapore too. To be honest with you, I tell some Singapore startups that I know that Malaysia is actually a better place to start.\n\n\nBecause if you\u2019re talking about building a business and selling in Southeast Asia, which country\u2019s population is more representative than most others within the region?\n\n\nMalaysia is more representative. Singapore is representative if you\u2019re trying to sell to New York, Shanghai, Los Angeles, or London.\n\n\nAnd I love Singapore, don\u2019t get me wrong. I don\u2019t want to knock them. They\u2019re awesome.\n\n\nThey\u2019ll always be kind of number one in the region and they have this characteristic where they\u2019re a magnet for all capital, talent, etc.\n\n\nBut if I\u2019m looking at starting a business where capital is constrained, a lower-cost area like Malaysia provides all of those enabling characteristics such as infrastructure and language capability.\n\n\nThere are more MNCs (multinational corporations) in Malaysia than there are in Singapore \u2013 because Malaysia is a larger country \u2013 but we may not have all of the marquee names as in Singapore.\n\n\nBecause of these, we have the knowledge set that comes from people who have worked at some of these MNCs \u2013 we expats who come and want to set up their own businesses.\n\n\nIf you talk to most expats, they absolutely love Malaysia. They may not love some of the hurdles and the hoops that they have to jump through, but when you talk about the people, most of them will say \u201cabsolutely fantastic,\u201d which is why it gets ranked so highly in expat surveys.\n\n\nBut Malaysia is an ideal destination to reach Southeast Asia and also be able to sell to the rest of the globe.\n\n\nI see it as a great starting point because you have enough diversity within the domestic market to be able to find product-market fit and then start replicating in other markets.\n\n\nWhat\u2019s the core challenge that companies face in expanding abroad?\n\n\nMy viewpoint is that companies have a tendency of focusing too long on the domestic market and wanting to become number one in the Malaysian market.\n\n\nBut the problem with that \u2013 from an investor standpoint \u2013 is that they are looking at this from the viewpoint of the size of the addressable market \u2013 and Malaysia is basically the size of a city in China.\n\n\nSo you can\u2019t build a hundred-million-dollar business and grow revenue, or at least it\u2019d be very unlikely to build that off of Malaysia alone.\n\n\nFrom a tech standpoint, and by necessity, you have to look at going international. I think what happens is that a lot of founders spend too much time focusing on the domestic market.\n\n\nAnd, I\u2019ve experienced it firsthand where some of the advice that is being given to these individuals (founders) oftentimes ends up pushing that same focus of going into more states within the country to get farther along.\n\n\nThat may work for certain types of products, like consumer products. But, if I\u2019m talking about a fast-moving tech startup, if I take too long, neighbors are watching, and they\u2019re building.\n\n\nSo there\u2019s this aspect of wanting to solidify my position well enough to where I have excess cash to go take the risk in a new market.\n\n\nAnd I understand the mentality, but if I wait too long, my neighbor is now building up their own product or there are multiple competitors doing the same. They\u2019re solidifying their position.\n\n\nBy the time I\u2019m ready to go, it\u2019s too hard. It\u2019s much more difficult. Now they\u2019re entrenched. Now the switching costs, now the barriers to entry, now all these other factors become more challenging.\n\n\nWhy do we not have more global names? It may be that we\u2019re producing volume but they\u2019re becoming national champions, not international champions."}
{"title": "Malaysian biotech firm banks $5.7m in series A round", "body": "Biogenes Technologies develops, produces, and markets \nsynthetic antibody\n\u00a0diagnostics products via its proprietary platform. The biotech firm is headquartered in Malaysia and plans to enter Indonesia and the Philippines this year.\n\n\nFunding details\n\n\n\n\n\n\nFunding amount:\n $5,700,000\n\n\n\n\nOther investor:\n Pembangunan Ekuiti\n\n\n\n\nStage:\n Series A\n\n\nSource\n\n\n\n\nMore details\n\n\n\n\n\n\n\n\nBiogenes Technologies\n\u2192\n\n\nThe company was founded in 2015 by \nAdrian Joseph\n.\n\n\n\n\n\n\n\n\n\n\nStage\n\n\nAmount (US$)\n\n\nInvestors\n\n\n\n\n\n\nSeed\n\n\nUndisclosed\n\n\nAntler\n\n\n\n\n\n\nSeries A\n\n\n$5.7M\n\n\nPembangunan Ekuiti Sdn Bhd\n\n\n\n\n\n\nTotal\n\n\n$5.7M\n\n\n\n\n\n\n\n\nSee also: \nSeries SEA: Who\u2019s investing in the region\u2019s biotech startups?"}
{"title": "Malaysia\u2019s GHL extends Grab\u2019s PayLater to offline merchants", "body": "Kuala Lumpur-headquartered \nGHL\n has expanded its partnership with Grab Malaysia to extend the super app\u2019s buy now, pay later solution for offline merchants.\n\n\n\n\nPhoto credit: Grab\n\n\n\n\nBesides \nonline merchants\n, offline merchants can now also offer Grab\u2019s PayLater for in-store purchases via GHL.\n\n\nConsumers who use the BNPL service can pay the full amount of the purchase in the next month or four monthly installments with zero interest. They also can earn GrabRewards for those transactions.\n\n\nSee also:\u00a0\nBNPL struggles amid global recession \u2013 except in Southeast Asia\n\n\nFounded in 1994, GHL provides payment gateway solutions and in-store payment terminals to help merchants in processing online and offline transactions. It has been listed on Bursa Malaysia since 2003.\n\n\nThe firm operates in Malaysia, Philippines, Thailand, Indonesia, Singapore, and Australia. It is processing more than 1.5 billion ringgit (around US$350 million) worth of transactions per month.\n\n\nGHL counts All IT Hypermarket, Astro GS Shop, and consumer electronics retailer Senheng as its clients.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.31 ringgit."}
{"title": "Navigating the Malaysian funding landscape in 2023", "body": "Dan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles.\n\nFirst post of 2023. Let\u2019s go.\n\n\nOne of the complaints I usually get from newbie founders \u2013 and even from some slightly seasoned (and at times saltier) ones \u2013 is how complex fundraising is. That, and if they are operating in Malaysia, the lack of options when it comes to investors.\n\n\nBut with a new year and a newfound optimism, there\u2019ll be founders who\u2019ll try their luck to snatch some money, be it to scale their business or last another year.\n\n\nWhat better time than to talk about the legal aspects of fundraising and some of the trends and landmines that are common here? One of the people I know who has worked with startups of all shapes and sizes is Izwan Zakaria.\n\n\n\n\nPhoto credit: Izwan Zakaria\n\n\n\n\nHe runs Izwan & Partners, a law firm that helps startups and tech companies do business and raise capital in Malaysia and overseas.\n\n\nIn 2021, he was consulted by the World Bank and co-authored a \nstudy on assessing the startup financing ecosystem in Malaysia\n.\n\n\nIzwan is also a familiar face in programs run by state-owned Malaysian Global Innovation & Creativity Centre and Malaysia Digital Economy Corporation.\n\n\nHere\u2019s our conversation, which has been edited for brevity and clarity:\n\n\nWhat are some issues you are still seeing that\u2019s common among founders today?\n\n\nIzwan:\n A common phenomenon is that a lot of founders underestimate the timeline that is needed to complete the fundraising.\n\n\nA lot think that when they have successfully pitched to a venture capital firm or even a corporate investor, they soon realize that the money doesn\u2019t come the next day or after the next week.\n\n\nA series of things need to take place until you see the money in the bank account. Sophisticated investors \u2013 from sovereign wealth funds to family offices to corporates \u2013 do extensive due diligence that lasts from three to six months.\n\n\nIf the founder or the company has limited cash runway, they need to work backward to know from the moment they start fundraising to when they are actually going to see money in the bank account.\n\n\nFor practical purposes, we always tell clients that the amount of effort you need for fundraising \u2013 whether you are raising US$1 million or US$1.5 million \u2013 is the same. And it will be additional time and energy you\u2019ll put in on top of your regular work.\n\n\nSo you need to sit down and consider carefully that when you start the exercise, it\u2019s going to be very emotionally exhausting. Because for a lot of founders, it deviates from the day-to-day functions of running the startup.\n\n\nFor first-time founders, this process will be overwhelming. You get those 20-page questionnaires where the startup needs to disclose documents or make sure all representations made in the pitch deck can be substantiated. This is where investments can get delayed \u2013 when founders don\u2019t have figures or claims made in writing or if they are reproduced haphazardly.\n\n\nThe second problem is that a lot of the time, startup founders don\u2019t look for a lawyer until there\u2019s a legal problem or roadblock. So a lot of these issues are only discovered during crucial times like fundraising.\n\n\nUltimately, it\u2019ll be embarrassing for founders during important discussions such as valuations because no investor in their right mind will want to inherit a startup\u2019s legal problems, for example.\n\n\nHow early should startups look for legal help?\n\n\nAs soon as possible. Not only when you have signed a term sheet. A lot of mistakes we\u2019ve come across with startups is that a lot of founders get very excited after spending months or even a year going around pitching competitions, talking to hundreds of VCs. And when they settle on one, they may end up with an investor like a VC who might be unfamiliar with industry best practices and terms.\n\n\nIf you are working with reputable investors, you should be okay, because terms may be industry standard. But when founders settle for a new VC, they may end up receiving terms that aren\u2019t aligned with industry best practices. So having a lawyer at the early stage is important.\n\n\nAlso, from a documentation standpoint, as the founder, you are at the highest negotiating position during the term-sheet stage. So once you\u2019ve already signed the term sheet, you are indicating that you\u2019ve pretty much agreed to the principal terms.\n\n\nBringing a lawyer afterward may also mean the chances for you to deviate or negotiate the drafting of the actual main document, such as the shareholders\u2019 agreement, are lower considering the principal terms have been agreed upon beforehand.\n\n\nBut I think a lot of founders need to understand that it\u2019s not just about the investor assessing the company but also the founders taking time to research the investor to make sure they\u2019re aligned with the company\u2019s long-term goals and values.\n\n\nSee also: \nHere\u2019s how founders can do their due diligence on VCs\n\n\nWhat are some investment trends that are gaining ground over here?\n\n\nThere are two instruments being used: one is the \nSimple Agreement for Future Equity\n (SAFE) by Y Combinator and the other is \nKeep It Simple Security\n (KISS) by 500 Global.\n\n\nThe documents are available on their websites. But the caveat is that these documents have gone through multiple variations and changes over several years. Different versions have their nuances. And we find that a lot of founders do not appreciate the complexity or the technical aspects of these instruments, because they\u2019re \u201ctemplates\u201d.\n\n\nFor example, because the investor is taking a risk of investing in the company without agreeing on a valuation upfront, the investor is managing downside risks by having these two commercial clauses: discount rate and valuation cap. And a lot of founders somehow either don\u2019t appreciate or understand the implications of both clauses.\n\n\nAlso, KISS, for example, is usually a quasi-debt instrument with a 5% interest rate and it has an 18 months\u2019 maturity from its issue date.\n\n\nNot understanding how they work could cause complications down the road. Signing a SAFE document means you can receive the money tomorrow because there\u2019s no requirement for you to issue the shares today, since there\u2019s no valuation that has been agreed upon yet.\n\n\nBut, after six months or a year, when you receive funding or go through priced rounds where there\u2019s already a valuation being agreed upon, this is where the SAFE investor will get their shares issued at a discount rate.\n\n\nSay a company is valued at US$1 million but the valuation cap is US$800,000. The SAFE holder will get shares at US$800,000. In other words, the founder or company will end up issuing a lot more shares than what they had envisaged.\n\n\nWhile it may be easy to get funds through a SAFE, it may backfire down the road if the founder isn\u2019t clear in terms of, say, the dilution that might take effect.\n\n\nIn Malaysia, and even Singapore, it\u2019s common to see SAFE-style investments as opposed to KISS. To be sure, negotiating a SAFE or KISS deal can be stressful due to a lack of local awareness on the technical aspects of these documents.\n\n\nBut in Malaysia, despite SAFE being increasingly common, the Securities Commission has not clearly come up with a formal announcement as to whether or not it is permitted.\n\n\nIt\u2019ll be good if the regulator can be clear in terms of the instrument because in more mature jurisdictions, such as the US, SAFE is also used for equity crowdfunding, known as \u201cCrowdSAFE\u201d, to avoid the hassle of valuing the startup.\n\n\nWhat\u2019s your take on Malaysian startups seeking fortunes abroad?\n\n\nWe do know that there are Singapore-based VCs that require Malaysian investees to domicile their holding company to the city-state. And we have helped some investees do this.\n\n\nIt\u2019s quite normal because for the foreign investor, they may view having the holding company closer to where they are domiciled as better, especially in managing legal and political risks.\n\n\nThis, of course, boils down to the founders themselves and their ability to negotiate. It can also be challenging considering contractual leverage is more toward the investors\u2019 side because this involves money.\n\n\nAs much as we\u2019d like to try and preserve local companies to stay here, we need to be practical at the same time. Whether we like it or not, we have to follow where the money is and most of the time it\u2019ll be Singapore.\n\n\nAnd when it comes to setting up tech companies, there are usually several jurisdictions that are internationally recognised for a startup\u2019s holding company to be domiciled, namely Singapore, UK, and the US. Reasons can be from just being comfortable with domiciling there to an efficient tax regime or better regulatory safeguards for investors.\n\n\nFinally, your thoughts on the Malaysian funding ecosystem?\n\n\nSecuring government funding is more challenging now because of competition.\n\n\nThere are corporations such as state-owned oil company Petronas or family-run conglomerates such as Genting and Sunway that are always looking for investments. But they also represent a handful of corporations venturing into this space.\n\n\nBut Malaysia still has a long way to go. The country\u2019s target is to see at least 5,000 startups registered by \n2025\n. We have around 2,000 or so as of end-2020, according to \ngovernment data\n. Then you also have to consider that our gross domestic product is much lower than Singapore or Indonesia and they, too, also have a higher number of high-net-worth individuals.\n\n\nThere are more millionaires in Indonesia than over here, so they have more disposable income and can participate in risky investments such as angel investing.\n\n\nBut that is where the funding gap is right now over here, especially at the pre-seed stage."}
{"title": "Fintech unicorn Xendit enters Malaysia, invests in local player Payex", "body": "Xendit\n, an Indonesia-based fintech unicorn, has started offering its payment gateway solutions for SMEs in the Malaysian market.\n\n\nIt concurrently announced an undisclosed investment into \nPayex\n, a Bank Negara Malaysia-licensed payment gateway provider.\n\n\n\n\nXendit founder Moses Lo / Photo credit: Xendit\n\n\n\n\nIn a statement, Xendit said that its entry into Malaysia could help more local businesses expand to other Southeast Asian markets. The firm has appointed \nJason Siew\n\u00a0as its general manager in the country.\n\n\nWith its expansion into Malaysia, the fintech firm is now present in three countries, having been operating in the Philippines since 2020. It is eyeing Thailand and Vietnam as potential new markets.\n\n\nThe development comes after Xendit secured backing from Penjana Kapital, a fund supported by the Malaysian government, through the \nDana Penjana Nasional program\n\u00a0in 2021. In the same year, Xendit raised a \nUS$150 million\n series C funding round that put its valuation into unicorn territory.\n\n\nSee also: \nNew unicorn Xendit, rivals double down on regional play\n\n\nFounded in 2015, Xendit offers a payment gateway service that enables startups and SMEs to process digital payments. It currently has over 3,500 active customers including the likes of Traveloka, Wise, Ninja Van, and Grab.\n\n\nIn May last year, the fintech firm \nraised US$300 million\n in a series D funding round led by Coatue and Insight Partners."}
{"title": "Malaysia-based enterprise solution bags $1m in seed money", "body": "WorqApp helps teams and businesses implement enterprise execution. It uses tools to assist in communicating, collaborating, and boosting engagement for high-impact initiatives. The company is headquartered in Malaysia.\n\n\nFunding details\n\n\n\n\n\n\nFunding amount:\n $1,000,000\n\n\n\n\nStage:\n Seed\n\n\nSource\n\n\n\n\nMore details\n\n\n\n\n\n\n\n\nWorqApp\n\u2192\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nStage\n\n\nAmount (US$)\n\n\nInvestors\n\n\n\n\n\n\nSeed\n\n\n$1M\n\n\nMalaysian and foreign investors\n\n\n\n\n\n\nTotal\n\n\n$1M\n\n\n\n\n\n\n\n\nSee also: \n3 developments to watch in Malaysia\u2019s tech space in 2023"}
{"title": "3 developments to watch in Malaysia\u2019s tech space in 2023", "body": "Today\u2019s column will be the last one for the year. And just like that, I\u2019m also celebrating my first anniversary with \nTech in Asia\n. Believe it or not, it\u2019s the first time in a long time that I haven\u2019t been sued over my reportage.\n\n\n\n\nNinja Van and other tech-savvy logistics firms have disrupted the Malaysian courier scene to the point of putting older players out of business. Photo credit: Ninja Van\n\n\n\n\nNot that I\u2019m pining for a suit \u2013 in case some of you want to get creative \u2013 but it\u2019s certainly a respite. Calm before the storm, perhaps? Maybe. For now, I\u2019ll wind down knowing that 2022 has been kind to me.\n\n\nWriting today\u2019s column comes with a major limitation: There\u2019ll be no talking heads as many are holidaying. But cadence is the bread and butter of a weekly column, so we\u2019ll just have to dance, even if it\u2019s with two left feet.\n\n\nAs we ring in the new year in nine days, here are three developments I\u2019ll be watching out for as part of my coverage in 2023:\n\n\nThe last-mile logistics race to the bottom\n\n\nThis is a tale of incumbents and disruptors. The former consists of older logistics players and the latter of tech-savvy upstarts.\n\n\nThe old dogs have been taking a beating over the past couple of years \u2013 not only because of the Covid-19 pandemic but also due to a so-called price war that is afoot, especially in the courier services space.\n\n\nSome that have had to bear the brunt of this competition were or are industry stalwarts.\n\n\nNationwide Express was delisted from the Bursa Malaysia and \nceased operations\n on November 16 after 37 years, ostensibly due to competition. They retrenched 1,100 staff members.\n\n\nAnother listed player, CJ Century Logistics Holdings, \nsold\n its loss-making courier arm last year for 7.5 million ringgit (US$1.7 million), while other public companies, GD Express and Pos Malaysia, have posted consecutive quarterly losses over the past three years despite heavy demand for courier and last-mile delivery services.\n\n\nThe main reasons: newer, tech-savvy players such as J&T Express, Lalamove, and Ninja Van or ecommerce platforms such as Lazada and Shopee that have launched their own delivery services \u2013 aside from the pandemic, of course.\n\n\nHow long can the newbies burn cash to capture market share? Will they eventually stumble like their older counterparts? And what will the country\u2019s regulators do about Pos, a state-owned company?\n\n\nTo truly understand the last mile, you need to step outside the Kuala Lumpur bubble and venture to places like Ipoh, Malacca, Kuantan, or even Kota Kinabalu and Kuching.\n\n\nIt\u2019s amazing how ecommerce has boomed in Tier 2 cities, but herein lies the challenge: How do you make it commercially viable? Transporting goods to these cities is no easy feat.\n\n\nI have tried using courier services, including foreign-owned ones, whenever I\u2019m around these parts of Malaysia and it\u2019s usually a lean team servicing a huge area.\n\n\nIpoh, for example, is the capital city of the state of Perak, the second-largest state in Peninsular Malaysia after Pahang.\n\n\nThe nearest logistics hub, where parcels are processed by couriers and customs (especially for duties), is the state of Penang, located more than 100km north of Perak.\n\n\nCourier companies will then deliver parcels and other items from Penang to Tier 2 cities in northern Malaysia, including Ipoh.\n\n\nMore data leaks?\n\n\nThree Malaysia-based tech companies either had the misfortune of dealing with a data breach this year or said they had experienced one.\n\n\nFirstly, payment gateway iPay88 said that a \u201csophisticated intrusion by an unidentified party or parties\u201d led to the leak of credit card information from online transactions.\n\n\nMalaysia\u2019s central bank, Bank Negara Malaysia, \nordered\n iPay88 to beef up its cybersecurity controls.\n\n\nSecondly, Temasek-backed StoreHub denied a leak despite a misconfiguration in one of its Amazon Web Service servers, which left data exposed.\n\n\nCybersecurity blog SafetyDetectives \nnoticed\n the vulnerability and alerted StoreHub.\n\n\nBut StoreHub \nsaid\n an internal probe showed no data was downloaded maliciously. It added that the server problem was solved within a day after being alerted by AWS via email on February 3.\n\n\nLastly \u2013 and more recently \u2013 a group of hackers known as Daixin leaked data of 5 million AirAsia passengers and staff on November 12. AirAsia is the aviation arm of Capital A.\n\n\nThe leak was deemed serious enough for the Malaysian Communications and Multimedia Commission, the industry regulator, \nto step in\n and hold discussions with Capital A\u2019s management. Investigations are ongoing.\n\n\nFahmi Fadzil, Malaysia\u2019s new communications and multimedia minister \nsaid\n better data security policies will be a key focus of his tenure.\n\n\nIt remains to be seen whether he\u2019ll introduce policies or laws that lead to punitive measures against \u201cleaky\u201d companies.\n\n\nBut data is gold and many tech companies are fuelled by it. Mitigation will be crucial. Malaysians, in particular, have had their data leaked from different sources, including the electoral roll.\n\n\nImagine receiving an unknown call thinking it\u2019s important, only to find out it\u2019s a scammer.\n\n\nConsolidation of government-backed VCs\n\n\nThis has been on the table for a long time, but never really got going.\n\n\nThe problem is twofold: heavy government presence by way of investments in the tech and startup space as well as overlapping mandates.\n\n\nSome discussions were \nunderway\n in 2019, but that never amounted to anything more.\n\n\nThe following year, after a change in government, the state-owned fund of funds Penjana Kapital was launched, adding another participant to an overly crowded space.\n\n\nPenjana\u2019s progenitor, Tengku Zafrul Aziz, who\u2019s now the international trade and industry minister, said in a \nLinkedIn post\n last week that he plans to launch another such fund to draw in foreign investment \u2013 which means even more entities potentially joining the party.\n\n\nInvestors I spoke to say that government overreach in the space is turning out to be a negative influence as they are usually asked to invest in a state-backed fund.\n\n\nWhat these investors want instead is help from related agencies to cut down on paperwork and bureaucracy and to be connected to other startups, among other things.\n\n\nOther investors also told me that many Malaysian founders are still in the mindset of relying heavily on government help.\n\n\nI don\u2019t know much about founding a startup, nor am I going to wade into the debate of whether less or more government is good.\n\n\nBut the fact is, many government VCs have not been able to fulfill their mandates despite the heft and privilege given to them.\n\n\nNot long ago, I wrote about Mavcap\u2019s \nuninspiring run\n investing in startups and its inability to raise a local VC class, which was a crucial element of its mandate.\n\n\nMavcap is the largest state-backed VC, with a total portfolio value of about 5 billion ringgit (US$1.29 billion).\n\n\nPenjana seems to be stepping up to the plate here. Again, why have two entities when one can do the job?\n\n\nCradle, going by the past two federal budgets, has been earmarked as the coordinating agency for tech and startups. Maybe they should take the lead?\n\n\nSome states, such as Penang, are moving toward \nless government involvement\n, but state agencies have been \ncriticized\n for overcrowding, too.\n\n\nIf Malaysia doesn\u2019t solve these systemic issues, we\u2019ll always be front and center of tech and startup \u201cbrain drain\u201d news like when we lost Grab.\n\n\nRecall that the ride-hailing giant began in Malaysia only for Singapore to poach it. Grab still maintains a sizable workforce over here \u2014 because it\u2019s cheaper (it is what it is) \u2014 but we no longer have the joy of calling Grab a Malaysian company.\n\n\nIt\u2019s only \u201cMalaysia-born,\u201d the term local English-language media use for people or companies that were at one point Malaysian.\n\n\nBefore I sign off, I\u2019d like to circle back to something lawmaker and former second finance minister Johari Abdul Ghani pointed out during Monday\u2019s parliamentary sitting: Malaysia has been losing out to its peers in terms of economic growth.\n\n\nFrom 2018 to 2021, Malaysia\u2019s GDP shrank by 0.1%. Yes, \nshrank\n. In that same period, Indonesia grew 11.8%, the Philippines 19.3%, Thailand 9.7%, and Vietnam 24.2%.\n\n\nThe entire region, except Malaysia, recorded positive growth. We have been lagging for a long time \u2013 I hope we do better next year.\n\n\nI\u2019d like to also take this opportunity to wish a Blessed Christmas to those celebrating and Happy Holidays to all. See you in 2023.\n\n\nDan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click \nhere\n to read past articles."}
{"title": "UK company acquires Malaysia\u2019s Propay Partners for APAC push", "body": "Human resources tech firm \nActivpayroll\n has acquired Malaysia-based \nPropay Partners\n to accelerate the former\u2019s growth in the Asia-Pacific region.\n\n\n\n\nActivpayroll CEO Jason Allen / Photo credit: Activpayroll\n\n\n\n\nActivpayroll said \nin a statement\n that prior to this deal, it had partnered with Propay Partners, which offers payroll outsourcing and employee mobility services, for more than a decade.\n\n\nFounded in 1999 by \nAlison Sellar\n, UK-based Activpayroll offers global services in employee payroll, human resources, international payments, and employee mobility to over 1,200 companies across 154 countries. The firm currently has 18 offices across five continents.\n\n\nMeanwhile, Propay Partners was founded in 2001 by \nManish Mehta\n and \nRaj Kumar Paramanathan\n. Covering multinational companies in Asia, its clients include Siemens, General Electric, Unilever, Coca-Cola, and BMW.\n\n\nThe global human resource tech market is \nset to reach\n US$38.4 billion by 2030 at a compound annual growth rate of 5.7%.\n\n\nSee also: \nBlue-collar HR firms rake in revenue, could weather recession\n "}
{"title": "What could change in Malaysia\u2019s tech scene post-elections", "body": "Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a premium subscription\n.\n\n\nHello reader,\n\n\nAt university, I did a double major in communications and political studies. Communications was always going to be my top choice, and the second major was a toss up between politics, sociology, and linguistics.\n\n\nShout out to the University of Melbourne for having introductory lectures that help undergrads figure out what majors they wanted to commit to. That year, the linguistics lecture was canceled, the sociology one was just okay, but the politics session really caught my attention. It was also a nice little bonus that I got the same lecturer for a US politics module that I took a couple semesters later.\n\n\nSo yes, I do have a general interest in politics, albeit mainly in the mechanisms of the various forms of government and how they\u2019ve been employed. I had no intention of being a politician myself. In the words of Obi-Wan Kenobi, \u201cI\u2019m not brave enough for politics.\u201d\n\n\nThis academic interest has persisted, so you can imagine my delight when I started reading my colleague Emmanuel\u2019s \nDan Lain-Lain\n weekly column, which looks at the goings-on in the Malaysia tech scene and comes with a healthy dose of current affairs, policy, and politics.\n\n\nWith elections in the country having concluded just recently, it\u2019s been very intriguing to read about how the political shifts could affect the country\u2019s tech sphere. The latest edition of his column likens the new government to a startup. Read on to see what that means exactly.\n\n\nToday we look at:\n\n\n\n\nMalaysia\u2019s new \n\u201cstartup\u201d government\n\n\n\n\nThe US$1 million seed round of a Vietnamese B2B F&B ordering platform\n\n\nOther newsy highlights such as a Malaysian nutrition company\u2019s US$270 million SPAC and Akulaku potentially getting US$200 million from Mitsubishi UFJ Financial Group\n\n\n\n\n\n\nPremium summary\n\n\nPolitics and tech in Malaysia\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nChances are that most people aren\u2019t thinking about the tech scene when it comes to the recently concluded Malaysian elections. But hey, that\u2019s what specialist publications like \nTech in Asia\n are here for: to find angles that may have been otherwise overlooked.\n\n\nToday, we take a look at some of the latest developments in the country and why its new government is akin to a startup.\n\n\n\n\n\n\nUnprecedented makeup:\n With the government formed by a coalition of three parties \u2013 each with markedly different ideals \u2013 the composition of its ministers and the coalitions that they represent are a first for Malaysia.\n\n\n\n\nMore touchpoints:\n The digital communications and science and innovation ministries \u2013 both helmed by first-time ministers: Fahmi Fadzil and Chang Lih Kang, respectively \u2013 are likely to engage the startup space in some capacity, especially for research and development.\n\n\n\n\nNew focus?\n Economic affairs minister Rafizi Ramli, who runs an AI startup called Invoke Solutions, has hinted that Malaysia will move away from being a commodities-driven market, which it has been since forever. So there\u2019s a glimmer of hope that we\u2019ll see a more lively startup space with a greater emphasis on tech and digital policies as well as funding.\n\n\n\n\nRead more: \n3 things about Malaysia\u2019s new \u2018startup\u2019 government\n\n\n\n\nStartup spotlight\n\n\nWho wants to be a millionaire?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nOda, a B2B F&B ordering platform, has \nraised US$1 million in a seed funding round\n led by Touchstone Partners.\n\n\nThe Vietnam-based company was founded by Jin Lee in 2019 and caters to businesses in the hotel, restaurant, and cafe industry.\n\n\n\n\n\n\nMoney matters:\n The fresh capital will be used to improve the user interface of Oda\u2019s app, further build up its big data analytics capabilities, and upgrade its core tech.\n\n\n\n\nMaking connections:\n Oda connects buyers and suppliers through its management software. This allows users to bulk order fresh food, beverages, and ingredients, cutting food waste and saving on time and costs.\n\n\n\n\nPartners:\n The firm says it connects over 120 suppliers with nearly 500 customers in Vietnam. These customers include Belgo, Baemin Kitchen, and Lacaph.\n\n\n\n\nSee also: \nEx-Grab VN head launches robotics startup\n\n\n\n\nTech in Asia School\n\n\nPerfect your pitch\n\n\n\n\nLeverage TIA School\u2019s connections with Southeast Asia\u2019s finest founders and investors by signing up for our Fundraising Program, where you\u2019ll get a leg up in your fundraising journey.\n\n\nThis program is for early-stage founders to sharpen their pitch and get them investor-ready within six weeks. Test your pitch and get feedback from professional investors within our networks such as GGV, SoftBank, Monk\u2019s Hill Ventures, Saison Capital, BRI Ventures, Square Peg, and more.\n\n\nThis is what our previous Fundraising Program students had to say:\n\n\n\u201cThe biggest takeaway was learning how we can shape our product to be more practical. We also learned how to pitch and fundraise with venture capitals, how to share our business models, go-to-market, and everything else \u2013 all in one course. Impressive to find the best mentors and supporters who will always be willing to guide you.\u201d \u2013 Wine and Khwan, co-founders of SnapPink\n\n\nApply here\n by January 7, 2023 to be part of the upcoming Fundraising Program for a special early bird rate of US$999 \u2013 unit price is US$1,999!\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nA healthy sum\n\nWellous, a Malaysia-based nutrition company, has entered a merger agreement with special purpose acquisition company Kairous Acquisition. After the the deal is completed, Wellous will be publicly listed on the Nasdaq.\n\n\nThe merger consideration is \nworth US$270 million\n \u2013 an amount that will be payable through the freshly issued securities of the merged entity, valued at US$10.10 per share.\n\n\n2\ufe0f\u20e3 \nThat\u2019s a lot of backing\n\nAnt-backed Akulaku may snap up \nUS$200 million in funding\n from Japan-based Mitsubishi UFJ Financial Group (MUFJ), according to a \nBloomberg\n report that cited sources.\n\n\nThe MUFJ investment is likely to boost Akulaku\u2019s valuation to US$1.5 billion. While talks are ongoing, the funding deal could still fall apart.\n\n\n3\ufe0f\u20e3 \nWe tryna ban TikTok again?\n\nSenator Marco Rubio, who represents Florida, has introduced a nine-page bipartisan bill to \nban TikTok in the US\n, citing concerns over the safety of Americans, \nSouth China Morning Post\n reported.\n\n\nTikTok\u2019s user data collection methods \u2013 along with the Chinese law forcing information to be shared with the ruling party \u2013 has become a cause for concern in the US. A TikTok representative said that the bill is \u201cpolitically motivated\u201d and \u201cwill do nothing to advance the national security of the US.\u201d\n\n\n4\ufe0f\u20e3 \nPerfect 10\n\nAktivolabs, a Singapore-based healthtech startup, has \nraised US$10 million in a series A funding round\n led by Adaptive Capital Partners, Seeds Capital, and Japan-based Mitsui. HH Investments and Govin Capital also participated in the round. The deal pushed the firm\u2019s total funding raised to date to US$12.6 million.\n\n\nFounded in 2017, Aktivolabs uses real-time data from smartphones and wearable devices to predict and prevent chronic diseases.\n\n\n5\ufe0f\u20e3 \nPlug in US$9 million\n\nPlugo, a Singapore-based website building platform, has \nraised US$9 million in a series A funding round\n led by Altos Ventures, with participation from BonAngels Venture Partners and Access Ventures.\n\n\nFounded earlier this year, Plugo enables Indonesian sellers to build their own online stores, integrating payment, logistics, and marketing services.\n\n\n6\ufe0f\u20e3 \nPay the creators\n\nPostype, a South Korea-based content creator publishing platform, has \nraised US$7.6 million\n in a round led by Sui Generis Partners and joined by Shinhan Venture Investment and We Ventures.\n\n\nPostype helps creators monetize their work and connect to fans. Artists can publish paywalled content on the platform as well as accept donations and create memberships."}
{"title": "Indonesian D2C beauty brands go international", "body": "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. Get it in your email inbox by \nregistering here\n.\n\n\nHello there,\n\n\nOn weekends, I often accompany my girlfriend to shop for skincare and other beauty products. Even in this ecommerce age, she likes to go directly to stores to see and test the products first.\n\n\nMany beauty retailers offer this experience, including Sociolla. While it\u2019s known first and foremost as an ecommerce firm, it has had an offline strategy as well, opening several stores across cities in Indonesia.\n\n\nSociolla has since deployed that same tactic in Vietnam, its first overseas market. More than that, though, it has also brought over a couple of Indonesian beauty brands with it.\n\n\nIn this week\u2019s Big Story, my colleague Budi dissects how having a retail partner like Sociolla helps these brands cut down on complexities. Plus, even though there are ecommerce platforms that offer cross-border services (including Shopee and Lazada), there is an advantage to Sociolla\u2019s model, which is an offline presence.\n\n\nThat said, having a retail partner is not necessarily the only route for international expansion. Considering Indonesia\u2019s scale, there is also an argument for winning the local market first.\n\n\nMeanwhile, for this week\u2019s Hot Take, I examine Blibli subsidiary Tiket.com\u2019s expansion to Malaysia. It\u2019s a reasonable move for the Indonesian online travel agent at first glance, but questions abound.\n\n\n\u2014 \nJofie\n\n\n\n\nTHE BIG STORY\n\n\nIndonesian D2C beauty brands build foundation for regional expansion\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nBrands have leveraged Sociolla\u2019s network to gain exposure in Southeast Asia, and targeting certain beauty niches may have given them an edge.\n\n\n\n\nTHE HOT TAKE\n\n\nQuestioning Tiket\u2019s ambitions to enter Malaysia\n\n\n\n\nTiket.com\u2019s office in Jakarta / Photo credit: Tiket.com\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nTiket.com, a subsidiary of Indonesian ecommerce firm Blibli, has expanded into Malaysia.\n\n\nAs in Indonesia, Tiket will also offer online travel agent (OTA) services in the country.\n\n\nThe company established Global Tiket Malaysia on December 7. However, there is no further information on when the service will be launched.\n\n\n\n\nHere\u2019s our take:\n\n\nTiket initially announced its aspirations for \nregional expansion\n in 2019, but it\u2019s likely that the pandemic put a wrench in its plans.\n\n\nNow might be the best time to revisit this goal \u2013 not only is the travel industry recovering, but a part of Blibli\u2019s roughly \nUS$510 million\n in IPO proceeds has been \nearmarked\n for Tiket (as well as its other subsidiary, supermarket chain Ranch Market).\n\n\nAt first glance, the company\u2019s choice of Malaysia as its first overseas market makes sense. According to the \ne-Conomy SEA report\n, the gross merchandise value of the industry in Malaysia is projected to hit US$8 billion in 2025, up from US$5 billion in 2019. This is slightly smaller than the projection for Indonesia (US$10 billion) and Singapore (US$9 billion).\n\n\nHowever, questions arise once we look deeper. Tiket\u2019s compatriot, Traveloka, expanded to Malaysia in 2015, along with several other regional markets. Yet, Malaysians still prefer players such as Agoda, Booking.com, and Trivago, according to a \nRakuten Insight survey\n.\n\n\nThis is also confirmed by third-party estimates, which place Traveloka below Agoda, AirAsia, Booking.com, Trivago, and Trip.com in terms of monthly active users so far this year.\n\n\nPerhaps the struggle for Traveloka has been to differentiate itself from what global players offer. Apart from Malaysia, the company also has a presence in Singapore, Thailand, Vietnam, and the Philippines.\n\n\nIt is believed that Traveloka\u2019s success in Indonesia is because it offers native payment methods such as bank transfers and e-wallets, in addition to its strong brand in the country.\n\n\nHowever, this method may not be so successful in Malaysia because \ncredit card penetration\n is higher than in Indonesia. This means that Traveloka does not have a big differentiator compared to Agoda, Booking.com, etc.\n\n\nFor Tiket, a big competitor is AirAsia owner Capital A. The company has launched a \nhotel booking service\n in Malaysia, which will certainly be a direct challenge for Tiket considering Malaysia is AirAsia\u2019s home market.\n\n\nFor now, though, Tiket has shared scant details about its expansion plans, but it\u2019s likely that it will have to come up with a different playbook than Traveloka if it wants to win these overseas markets. But how much is Blibli willing to invest, especially as a newly public company?\n\n\nBlibli\u2019s IPO prospectus showed that the company only had a runway of less than 1 year as of June 30 this year.\n\n\nSee also: \nIs Blibli\u2019s IPO a risk worth taking?\n\n\nBut from another angle, Tiket\u2019s expansion may just be about achieving parity with its rival. In Indonesia, the \nRakuten survey\n revealed that Tiket is in second place among the most popular OTA apps, just below Traveloka.\n\n\nIf it cannot take over the top position from Traveloka in Indonesia, then at least it has made similar inroads for a regional expansion, which could boost its parent firm\u2019s reputation among retail investors (at least in the short term).\n\n\nCould it also be about more than just Tiket? Perhaps the company\u2019s entry into Malaysia can serve as a testing ground for Blibli as well as its parent firm Djarum Group. The conglomerate has had a presence in Malaysia before with its video-streaming platform Mola TV.\n\n\nFor now, Blibli\u2019s ecommerce unit is unlikely to follow Tiket\u2019s steps to expand overseas. As the company laid out, it will focus on strengthening its \nomnichannel services\n in Indonesia, aiming to open 300 offline stores across the country by 2024.\n\n\n\u2013 \nJofie\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nAlso check out \nTech in Asia\n\u2019s coverage of the ecommerce scene \nhere\n.\n\n\n1\ufe0f\u20e3 JD.id, the Indonesian joint venture of Chinese ecommerce major JD.com and Provident Capital, has \nlaid off 30%\n of its staff, or around 200 employees.\n\n\n2\ufe0f\u20e3 AnyMind Group, a Singapore-born ecommerce enabler, has decided to \ndelay its listing plans\n on the Tokyo Stock Exchange due to \u201crisks and disclosures\u201d in its business activities.\n\n\n3\ufe0f\u20e3 Vipshop, one of China\u2019s largest discount retailers, officially \nlaunched its services\n in Southeast Asia on December 8.\n\n\n4\ufe0f\u20e3 Paris-based Vestiaire Collective, the luxury fashion platform helmed by ex-Lazada CEO Maximilian Bittner, has \nsecured a US$79.1 million\n credit facility from Cr\u00e9dit Agricole CIB, Societe Generale, HSBC, Bank of America, and Goldman Sachs.\n\n\n5\ufe0f\u20e3 Shein, the Chinese fast fashion retailer, is \nexploring moving beyond its conventional business\n of selling its own brand apparel into a marketplace platform that will enable other merchants to sell directly to customers.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere.\n\n\nSee you next week!"}
{"title": "Of Malaysian banking granddads and disruption", "body": "This isn\u2019t one of those posts about an elderly person being scammed by a phishing text or some get-rich-quick scheme. Those stories are a dime a dozen, but we\u2019ll save them for coffee-shop talk.\n\n\n\n\nPublic Bank founder Teh Hong Piow. Pic credit: Public Bank\n\n\n\n\nOn Monday, Public Bank founder Teh Hong Piow died. He was 92 years old. Teh founded the bank when he was 35 years old and it grew to become Malaysia\u2019s second-largest bank by market value on the local bourse, outmatched only by Maybank.\n\n\nFun fact: Teh was born in Singapore but came to Kuala Lumpur for work. I know, I know, such tales are rare these days because the reverse is more common: Malaysians running across the causeway to that island of milk and honey (or money). But I digress.\n\n\nI remember Teh because he was not only a mainstay in any top billionaires\u2019 list but also because he ran Public Bank conservatively.\n\n\nIt\u2019s a shareholders\u2019 favorite as the stock has always yielded generous dividends and the bank has always outperformed its peers on a number of metrics, such as return on equity, cost efficiency, and asset quality.\n\n\nAll this was due to Teh\u2019s \u201cboring\u201d style of running a bank. In fact, he was media shy even by bankers\u2019 standards. I could never secure a one-on-one with him no matter how favorable the interview pitch was.\n\n\nBut Teh\u2019s death also shines a spotlight on bank ownership and this is what I want to talk about today.\n\n\nThe privileged few\n\n\nThere are only three men who have been given the right to own more than 10% of a local bank. Teh is one of them. The other two are Hong Leong\u2019s Quek Leng Chan and Ambank\u2019s Azman Hashim.\n\n\nAll three men founded their banks and are afforded this exemption by Malaysian banking laws.\n\n\nWhy? Because they held outsized control of their companies before Malaysia\u2019s central bank, Bank Negara Malaysia (BNM), enforced a law on bank ownership. This exemption is called the grandfathering rule.\n\n\nHere\u2019s the catch: This privilege cannot be passed down \u2013 not even to family members. In Teh\u2019s case, none of his family members are in the business, so there\u2019s no succession there. As for Quek and Azman, they are getting older, but it\u2019s still too early to tell whether their children or grandchildren will take up the business.\n\n\nIndustry folk I spoke to think that Teh\u2019s shares, which are worth 19.9 billion ringgit (US$4.49 billion) at the time of writing, will be put in a family trust. How that will be configured around ownership laws will be an interesting case study.\n\n\nSpanner in the works\n\n\nBut time is running out for Malaysia\u2019s banking grandfathers. Besides the family-trust route, the other option is to sell one\u2019s stake, as is the case with Azman of Ambank.\n\n\nThe Malaysia corporate scuttlebutt went into overdrive in May this year, with talk that Grab was \neyeing that piece of the pie\n, which in turn could give them control of Ambank.\n\n\nThis isn\u2019t a farfetched idea. Grab has been moving upstream in many of its services. It acquired Malaysian supermarket chain Jaya Grocer and added another layer to its food delivery business. So why not a bank? After all, Grab is part of one of six consortiums awarded a digital banking license by BNM.\n\n\nGrab- and Singtel-owned GXS Bank will \nhold\n a 55.5% stake in the consortium\u2019s Malaysian digital banking venture.\n\n\nBut here\u2019s the thing: Grab can\u2019t take over Azman\u2019s stake. It can only buy up to 10% of the latter\u2019s shares. If the super app wants to control Ambank, it\u2019ll need to work with proxies or friends.\n\n\nThe other substantial shareholder also looking to sell its stake in Ambank is Australia and New Zealand Banking Group, which owns 21.68%. But the same ownership rules apply to prospective bidders \u2013 only a 10% stake for an individual shareholder.\n\n\nAn aside \u2013 only because we\u2019re talking banks \u2013 Tong Kooi Ong, the father-in-law of Grab co-founder Anthony Tan, was a banker and he ran Phileo Allied Bank in the \u201990s. But he had to let go of the bank. Tong had to \nsell\n it due to an industry-wide merger initiated by BNM \u2013 a reaction to the 1997-98 Asian financial crisis. Phileo Allied was \nacquired\n by Maybank in 2001.\n\n\nEven though Tong, who now is mostly known for running the business publication \nThe Edge\n, claims to have accepted reality and moved on, he still \nwrote\n in September this year about how Malaysia lost its \u201cfirst digital bank,\u201d alluding to Phileo Allied and its \u201cdigital\u201d offerings in the 90s.\n\n\nA shot at disruption\n\n\nAnyway, times are changing in the Malaysian banking world. As the sun sets on these grandfathers, it may spark a new dawn for many.\n\n\nBNM\u2019s award of digital banking licenses comes amid a perception that the banking sector is staid but is being challenged by digital disruptions on all sides \u2013 from loan aggregators to remittance service providers.\n\n\nMalaysians are also pretty savvy and bold with some ditching local digital services for overseas ones such as Wise.\n\n\nTo BNM\u2019s credit, the central bank has liberalized the digital banking space by allowing foreign entities to hold major stakes in digital banks and, ultimately, own the bank, meaning that these entities can form their own consortiums and appoint their respective board members.\n\n\nAs for traditional banks, the grandfathers will have to come up with a plan of sorts \u2013 no one lives forever. To be sure, the grandfather banks are only three of nine listed banks on Bursa Malaysia, so there are certainly other financial houses that are ripe for the taking either by way of merger or acquisition. RHB, one of the traditional names, is part of a digital banking consortium with Boost.\n\n\nAlso, tech firms sit on a trove of valuable data. Used-car marketplace Carsome, for instance, has an \nextensive database\n of underserved customers, making it a valuable consortium partner of KAF Investment Bank, a digital bank licensee.\n\n\nBut, speculation aside, the end of an era here signals that maybe the banking sector could become more vibrant. With the old guard going and gone, newer local and foreign entrants will be able to fill in the gap with more innovative ideas and products \u2013 hopefully, that is.\n\n\nDan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy, and politics. Click \nhere\n to read past articles."}
{"title": "Malaysian nutrition firm enters SPAC deal for $270m", "body": "Wellous,\n a Malaysia-based nutrition company, has entered a merger agreement with special purpose acquisition firm Kairous Acquisition Corp Ltd. Following the completion of this deal, Wellous will be publicly listed on Nasdaq.\n\n\n\n\nTeam Wellous / Photo credit: Wellous\n\n\n\n\nThe merger consideration is worth US$270 million \u2013 an amount that will be payable through the freshly issued securities of the merged entity, which will be valued at US$10.10 per share. Through the deal, there will also be cash proceeds, which will be made up of Kairous\u2019s approximately US$21 million in trust.\n\n\nFounded in 2016 by Andy Tan and Henry Chin, the company develops, creates, markets, and sells health food and wellness supplements through its tech-enabled platform.\n\n\nIt lists 10 brands on its website, offering a variety of products \u2013 from its Immority anti-aging formulation to its Zenso weight management supplements.\n\n\nThe global dietary supplement market is \nset to grow to\n US$240.9 billion by 2028 at a compound annual growth rate of 8.5%.\n\n\nSee also: \nExclusive: GFC leads $3m+ seed round in Indonesian health and wellness startup\n "}
{"title": "Capital A\u2019s logistics arm nets $50m funding", "body": "Malaysia-based \nTeleport\n, the logistics arm of Capital A, has raised US$50 million in growth capital from \u201clarge institutional credit investors,\u201d the firm said.\n\n\n\n\nPhoto credit: Teleport\n\n\n\n\nThe fresh funds will be used to expand the company\u2019s cross-border delivery capabilities in key Southeast Asian markets, onboard additional freighters, and build hubs in Indonesia, Malaysia, and the Philippines.\n\n\nThe firm also looks to invest further in tech that will enable customers to send products to anywhere in Southeast Asia within 24 hours. It recently poured an \nundisclosed amount\n into \nKargo Technologies\n, an Indonesia-based trucking marketplace, to help it achieve this goal.\n\n\nTeleport was founded in 2018 and is headed by CEO \nPete Chareonwongsak\n.\u00a0The company said that it\u2019s profitable and growing faster than in pre-Covid-19 conditions.\n\n\nWithin Southeast Asia, the startup has upped its market share in terms of cargo volume from 2% in 2021 to 9% in the third quarter of 2022, further growing its ecommerce business 6x year on year. Teleport is also currently serving Shopee, Lazada, and Zalora.\n\n\nSee also: \nSeries SEA: Who\u2019s investing in the region\u2019s logistics and transportation startups?\n "}
{"title": "3 things about Malaysia\u2019s new \u2018startup\u2019 government", "body": "Malaysia\u2019s new government has gone to work. Prime Minister Anwar Ibrahim \nannounced his Cabinet\n last Saturday and has appointed 28 ministers. Deputy ministers and other roles will be revealed later, but the most important part was settled.\n\n\n\n\nPrime Minister Anwar Ibrahim (in glasses) chairing his second Cabinet meeting on Wednesday / Photo credit: Anwar Ibrahim\u2019s Facebook page\n\n\n\n\nI\u2019m hoping that by next week, we can take a break from this heavy political coverage cycle. But since this is an ongoing and important development, we\u2019ll have to stomach this for a while because politics will have an impact on startups and the tech space in general \u2013 to a certain degree.\n\n\n\u201cExtraordinary circumstances\u201d\n\n\nFor starters, Anwar has gone back to the old days of consolidating the prime minister and finance minister roles. This bestows him with near-absolute power. Malaysia\u2019s federal constitution already makes the PM a powerful person, but coupled with the finance portfolio, he can single-handedly dictate where the government should invest without check and balance.\n\n\nYou could argue that Anwar\u2019s Cabinet members would scrutinize deals and provide input. Ditto lawmakers in parliament, but dissent is rare. That\u2019s how the \n1MDB scandal\n exploded \u2013 it was because then-PM Najib Razak was also finance minister and he had the backing of his coalition.\n\n\nAfter winning the 14th general election in 2018, Pakatan Harapan (PH) \u2013 Anwar\u2019s coalition, which was then under the leadership of Mahathir Mohamad \u2013 separated the portfolios. PH was ousted by a coup in 2020 and the two successive governments since then have maintained that separation.\n\n\nThis time, Anwar merged it ostensibly due to \n\u201cextraordinary circumstances\u201d\n. He also believes that he is the best person to draw in foreign investors.\n\n\nWhile another 1MDB scandal is possible, Anwar has assured none of these things will occur under his leadership. He doesn\u2019t have the \nprivilege\n of leading a strong, single coalition, unlike his predecessors.\n\n\nThis time, the new government is more of a consensus between Anwar\u2019s and two other coalitions. So the PM can\u2019t do as he pleases as he might risk losing support, which could trigger a change in government or another election.\n\n\nRaising the bar\n\n\nAs for tech reforms, I\u2019m betting that it will fall on Anwar\u2019s colleague, Rafizi Ramli, who\u2019s also the economic affairs minister. Rafizi runs an AI startup called Invoke Solutions, so he\u2019s very much attuned to the startup and tech scene.\n\n\nRafizi isn\u2019t Nadiem Makarim, who took on the education minister role after growing super app Gojek into a unicorn. Invoke is not even near soonicorn status as the startup is currently \nvalued\n at 105 million ringgit (US$23 million), according to Rafizi. But this is Malaysia where the bar is low, so we\u2019ll have to start somewhere.\n\n\nThe good news is that Rafizi is different from earlier officeholders who were career politicians \u2013 he has dabbled in both startups and politics.\n\n\nHe has also hinted that Malaysia will \nmove away\n from being commodities-driven, which has been the case since forever. So that gives a glimmer of hope that we\u2019ll see a more lively space that will have a greater emphasis on tech and digital policies as well as funding.\n\n\nThe difference between the finance and economics affairs ministries is that the former crafts policies, especially on revenue generation while the latter focuses more on development and long-term goals.\n\n\nBut the ministers of both departments sit on the board of some of the country\u2019s largest institutional shareholders, including sovereign wealth fund Khazanah and asset manager Permodalan Nasional Berhad \u2013 familiar names in the startup ecosystem.\n\n\nThere\u2019s also a digital communications ministry and a science and innovation ministry. Both are helmed by first-time ministers: Fahmi Fadzil and Chang Lih Kang, respectively. They too will engage the startup space in some capacity, especially for research and development.\n\n\nHowever, the main state-owned VCs are Penjana Kapital, Mavcap, and Cradle, which all fall under Anwar\u2019s or Rafizi\u2019s purview.\n\n\nTackling monopolies\n\n\nAs expected, reviews of major public projects are underway. The tech-related one is the 5G rollout. The initiative was launched by Anwar\u2019s predecessors, who opted for a state-owned monopoly, Digital Nasional Berhad (DNB).\n\n\nAnwar charged that procurement was not done in a transparent manner, but DNB has denied this claim and welcomed a review.\n\n\nWe have also yet to hear of news whether Penjana, the state-owned \nfund of funds (FOF)\n, will be reviewed. Penjana caused a stir when it was launched: two of the eight selected VCs are \nlinked\n to then-finance minister Tengku Zafrul Aziz, whose relatives established the FOF.\n\n\nPenjana would go on to \ndeny\n any conflicts of interest and threatened to sue anyone who questioned the VC selection process.\n\n\nDespite serving in different coalitions, Zafrul is back in government. He\u2019ll be leading the international and trade ministry this time around, but his term can only last for three years. This is because under Malaysian law, senators can only serve two three-year stints at most, whether it\u2019s consecutive or otherwise.\n\n\nZafrul first became a senator in March 2020 and resigned last month to run in the recent general election, which he lost. As a result, he only has one more senatorial stint left. It also means that if Anwar\u2019s government survives a term \u2013 five years \u2013 there will be a change at the international trade ministry.\n\n\nNow, what\u2019s with my headline? Well, this government is in many ways a startup. The composition of its ministers and the coalitions that they represent are a first for Malaysia.\n\n\nI also get a sense that Anwar may have factored in these risks. Even going by the mega-project reviews, the PM isn\u2019t being combative; instead, he is trying to establish an image that he prefers negotiations.\n\n\nHe may not rock the boat too much, either. But going by what is happening so far, this new government is signaling that it wants to jumpstart the Malaysian economy. Anwar is embarking on some reviews that touch on decades-old monopolies enjoyed by tycoons. That might point to a government that aims to create a slightly more level playing field for entrepreneurs and investors.\n\n\nI wouldn\u2019t say this is our moment \u2013 that will take a while longer. But perhaps it\u2019s good enough to get us some attention as we\u2019re constantly eclipsed by Singapore and, more recently, Indonesia and Vietnam.\n\n\nAnd like any startup, investing in Malaysia may be risky, but there\u2019s that shot for a reward.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.40 ringgit\n.\n\n\nDan Lain-Lain\n (Malay for \u201cand others\u201d) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene but with a heavy mix of current affairs, policy and politics. Click\u00a0\nhere\n\u00a0to read past articles."}
{"title": "Malaysia\u2019s Al Rajhi Bank launches digibank offering", "body": "Al Rajhi Bank Malaysia (ARBM)\n, a subsidiary of Saudi Arabia\u2019s Al Rajhi Bank, has announced the launch of its digibank app Rize.\n\n\n\n\nAl Rajhi Bank Malaysia CEO Arsalaan Ahmed / Photo credit: Al Rajhi Bank Malaysia\n\n\n\n\nARBM said that a wide range of services are already available on Rize, including deposits, account and personal finance management, debit card application, and ATM services.\n\n\nOne of the app\u2019s key features is a personalized digital financing option that requires minimal documentation and no processing fee. Customers will only need to spend 15 minutes to have money in their account, ARBM said.\n\n\nThe app also has a savings feature called Rize Savings Pot with a profit rate, allowing users to earn money while saving. Users can also invite their family and friends to chip into the pot.\n\n\nLaunched in 2007, ARBM offers Shariah-compliant financial solutions in the retail, corporate, treasury, and investment segments, with a network of 13 branches across Malaysia.\n\n\nRize will be competing against digital banking hopefuls in Malaysia, including GXS Bank, which is backed by Grab and Singtel.\n\n\nSee also: \nPleasant surprise in Malaysia\u2019s digibank race"}
{"title": "Carousell revenue growth in slow lane even as losses narrow", "body": "Welcome to The Checkout! Delivered every Thursday, this free newsletter breaks down the biggest stories and trends in ecommerce. View past issues \nhere\n or \nsign up here\n to receive future newsletters.\n\n\nHi there,\n\n\nFive years ago, we bought our car from a seller after connecting via a Facebook post. That was the only time I dabbled in recommerce. The idea of buying secondhand clothes or shoes still doesn\u2019t come naturally to me.\n\n\nBut the market for used goods has been going from strength to strength. In the US alone, it was a \nUS$160 billion\n opportunity in 2021.\n\n\nIn the first Big Story this week, my colleague, Melissa, brings you Carousell\u2019s financial report card, where the firm emphasized recommerce as its next lever for growth. While classifieds continue to make up nearly 70% of the Singapore-based company\u2019s topline, it believes revenue from recommerce could shoot up in the near future.\n\n\nComing back to my car story, since it\u2019s been five years, we decided to sell it off and upgrade to a bigger vehicle this September. We chose to sell it on Cars24, an ecommerce marketplace for cars as it offered us the best price and convenience.\n\n\nCars24 co-founder and CEO Vikram Chopra in a recent \ninterview\n with \nMoneycontrol\n said the company is \u201calmost profitable.\u201d\n\n\nMalaysian used-car marketplace Carsome is also on a similar path. In the second Big Story this week, my colleague, Emmanuel, exclusively speaks to Carsome CEO Eric Cheng on the tough decisions it has taken to reach profitability.\n\n\nIn the Hot Take, I analyze the sudden rise of Temu, the new shopping app sensation in the US.\n\n\n\u2013 Samreen\n\n\n\n\nTHE BIG STORIES\n\n\n1\ufe0f\u20e3 \nCarousell posts $49.5m in revenue in 2021 as growth slows\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nIn 2021, the classifieds giant laid foundations for recommerce, which will pave the way for its next phase of growth as it heads toward profitability.\n\n\n2\ufe0f\u20e3 \nCan Carsome break even in 2023?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe used-car platform plans to go back into the black after an eventful 2022.\n\n\n\n\nTHE HOT TAKE\n\n\nWhat lies ahead for Temu\n\n\n\n\nPhoto credit: Temu\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\n\n\nTemu\n, the shopping app operated by the parent of Chinese ecommerce giant Pinduoduo, \ntopped\n the list of free Android apps in the US, beating both Amazon and Shein.\n\n\nContributing over 5 million downloads (accounting for 97% of its total), the US forms its biggest global market.\n\n\nPDD Holdings, the owner of Pinduoduo and Temu, recently said it will strive to create \n\u201cunique value\u201d\n with Temu.\n\n\n\n\nHere\u2019s our take:\n\n\nIn almost no time, Temu has become one of the most loved shopping apps in the US, thanks to its \neye-popping\n discounts. For example, a Lenovo wireless earphones variant, priced on Amazon at US$19.5, is available on Temu for US$7.39.\n\n\nThat\u2019s not a surprise, of course, considering who Temu\u2019s sister app is. Pinduoduo\u2019s success has been largely due to its ability to source products directly from Chinese factories. By cutting out the middleman (and the cuts they take), the firm can transfer cost savings over to customers.\n\n\nBut Temu is taking it a step further, offering a discount 30% on top of the already cheap prices as well as free deliveries with no minimum spend. It\u2019s a typical strategy for a company entering a new market, but has proven time and time again to not be a sustainable one.\n\n\nFor Temu, the biggest challenger is likely Shein. For the moment, Shein is focused on fashion, while Temu is a more general platform, but Jianggan Li of Momentum Works notes that it is very likely the two firms will compete at some point.\n\n\n\u201cBoth are formidable players, and it is quite hard to say how things will evolve from there, since there are many factors which might impact,\u201d Li tells \nTech in Asia\n.\n\n\nThere is, however, one key difference between Temu and Pinduoduo: Momentum Works \npointed out\n that Pinduoduo was able to leverage WeChat\u2019s social networks to achieve hypergrowth (since WeChat parent Tencent had invested in the ecommerce company). But WeChat\u2019s reach is limited outside of China. Temu likely cannot expect similar support from Facebook and TikTok in global markets, and these two platforms also operate differently than WeChat.\n\n\nStill, one thing to look out for is how soon Temu expands beyond the US market into developing regions like Latin America or, of course, Southeast Asia.\n\n\nPinduoduo, for one, is not yet present in Southeast Asia. As we\u2019ve previously written, however, copy-pasting its model onto the region would be difficult, considering the region\u2019s high cost of logistics as well as relatively lower digital penetration as compared to China\u2019s.\n\n\nSee also: \nExplaining Pinduoduo, and whether the model can work in Southeast Asia\n\n\nPlus, it will likely face competition from players such as Shopee (which also has operations in \nChina\n), albeit a small one) or Alibaba-backed Lazada, which have a deeper understanding of the local ecosystem. TikTok is also gearing up to become a formidable player in the region, and while its ecommerce business is still small, it has the edge in terms of social media reach.\n\n\nLi points out that in the short term, more affluent markets such as North America will contribute more gross merchandise value and revenue and therefore be seen as \u201ca bigger prize to catch.\u201d Perhaps only when Temu has conquered the US \u2013 still the world\u2019s second-largest ecommerce market behind China \u2013 will it set its sights elsewhere.\n\n\n\u2013 Samreen\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nCheck out \nTech in Asia\u2019s\n coverage of the ecommerce scene \nhere\n.\n\n\n1\ufe0f\u20e3 Former \nLazada\n president Jessica Liu \njoins\n Shein as vice president for global brand operations.\n\n\n2\ufe0f\u20e3 Indonesian conglomerate Astra International has \nlaunched\n a used-car marketplace called \nMobbi\n.\n\n\n3\ufe0f\u20e3 Southeast Asia \nfood and grocery delivery spending\n is up 30%, according to a \nGrab report\n.\n\n\n4\ufe0f\u20e3 Vietnamese online grocery firm \nCooky\n \nraises\n US$4.5 million from Do Ventures and Nextrans.\n\n\n\n\nFYI\n\n\n1\ufe0f\u20e3 \nLessons from the demise of two Chinese grocery delivery pioneers\n\n\n\n\nThe MissFresh app / Photo credit: \nWirestock Creators\n / \nShutterstock\n\n\n\n\nThe influential Nice Tuan and MissFresh both shut down in recent months despite having early success, rapid expansion, and innovative business models.\n\n\n2\ufe0f\u20e3 \nHave Amazon and Shein cracked the omnichannel fashion code?\n\n\n\n\nPhoto credit: Shein\n\n\n\n\nBoth online giants recently opened physical fashion stores, and their new ventures may be lighting the way for the future of retail.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere\n.\n\n\nSee you next week!"}
{"title": "Can Carsome break even in 2023?", "body": "This year has been bittersweet for Carsome.\n\n\nThe Malaysian unicorn kicked off 2022 by raising US$290 million in a series E round, increasing its valuation to about US$1.7 billion. It was also a magnet for talent, having beefed up its workforce with employees that came from the likes of Capital A and MyTukar, the Malaysian arm of rival Carro.\n\n\n\n\nPhoto credit: Carsome\n\n\n\n\nCarsome, however, had to also shelve its dual-listing plans in Singapore and the US that were set for this year, \nBloomberg\n \nreported\n in June.\n\n\nDespite its war chest \u2013 our \nestimates\n show that Carsome has a three-year runway \u2013 the company ultimately had to lay off staff at the end of September. Its leadership team is also forgoing pay until the end of the year.\n\n\nExternal headwinds, both at home and abroad, have been a thorn on the side of many ambitious tech companies this year. Carsome will not be an exemption, Kuala Lumpur-based investors tell \nTech in Asia\n, saying that the current political change in Malaysia as well as the possibility of a global economic recession will be its stumbling blocks.\n\n\nCarsome CEO Eric Cheng, however, tells us in an interview that the company will be on track to break even in 2023. By deciding to make tough cost-cutting decisions early, he says \u201cwe can go toward profitability in a much closer time frame.\u201d\n\n\nAccording to Cheng, the job cuts touched all departments but did not affect \u201ca big part of the workforce.\u201d He estimates that \u201cless than 5%\u201d were laid off and that Carsome still has 4,000 staff.\n\n\nThe focus now, he says, is to work on the company\u2019s \u201caccelerated profitability plan,\u201d a road map that\u2019ll guide Carsome to hit its goal.\n\n\nAnd Cheng is banking on the company\u2019s \u201ctech stack\u201d to bring it to the black.\n\n\nOf thin margins\n\n\nCarsome\u2019s main business is the buying and selling of used cars, and it\u2019s one of several players tackling this space in Southeast Asia.\n\n\nWe \ndiscovered\n that if marketplaces like Carsome or its closest rival Carro could acquire just 15% of Southeast Asia\u2019s growing used-car market, they could generate a revenue of a little more than US$7 billion \u2013 multiple times larger than what these players are making today.\n\n\nCovid-19 has not muted growth for Carsome and Carro either. Both platforms posted new revenue records amid the pandemic, while also providing a lifeline to used-car dealers, such as \nthose in Kuala Lumpur\n.\n\n\nIndeed, Carsome\u2019s revenue for the financial year ending December 31, 2021 doubled to US$656 million compared to the previous year.\n\n\n\n\nHowever, our \nprevious calculations\n also show that the business has thin margins overall, especially since these marketplaces act as intermediaries.\n\n\nSo if we subtract Carsome\u2019s acquisition cost for vehicles sold (i.e., cost of goods sold), the firm has a gross profit of US$36.6 million, which is just 5.6% of its revenue figures. While that appears to be par for the course in the used-car business, it\u2019s a relatively lower figure compared to other industries.\n\n\nCarsome\u2019s golden goose\n\n\nThe technology that powers Carsome is where the money lies, a Malaysian investor familiar with the used-car platform\u2019s business tells \nTech in Asia\n.\n\n\n\u201cThe data that Carsome receives from users and transactions as well as the ability to accurately predict prices or ensure stock availability or even understand user behavior\u2026 these are the aspects of the business that can be spun off,\u201d he says.\n\n\nCheng also tells us that 70% of Carsome\u2019s Malaysia business involves intercity transactions. This means a car can be sold in one state and bought from another \u2013 all in one platform.\n\n\nHowever, despite some of Carsome\u2019s cutting-edge technology, Malay-language news portal \nMalaysia Gazette\n reported that over 50 Carsome customers who had sold their cars to the platform had to wait around three days for their money to be disbursed. The report, which cited sources, noted that the process had typically taken one to three hours before.\n\n\n\n\nCheng tells us it \u201cwasn\u2019t the company mismanaging the process\u201d and adds that the incident was an isolated case. \u201cWhen you\u2019re selling a car with us, everything can be done within an hour. Payment is made within the same day.\u201d\n\n\nThese are according to company policy, he says. But Cheng notes that there are other variables that are out of Carsome\u2019s control, such as bank transfer time or the lack of sufficient documentation from the customer\u2019s side to support the sale.\n\n\nHe adds that the larger segment of customers have been happy with the business, citing the company\u2019s net promoter score (NPS), which has been over 70 \u201cfor the last 12 months, even when news like that happened.\u201d\n\n\nNPS measure a customer\u2019s likelihood to recommend a service based on their experience. A score of 70 and above means that the experience is excellent.\n\n\nThe \u201ctransactional platform\u201d for the underserved\n\n\nCarsome\u2019s tech stack has also enabled it to venture into the digital banking space. The company is part of a consortium that consists of Malaysia\u2019s KAF Investment Bank along with fintech firms Jirnexu and MoneyMatch.\n\n\nCheng says that aside from its marketplace business, Carsome has also provided financing for consumers and dealers over the last four years through Carsome Capital.\n\n\nThis, he argues, will help KAF cross-sell banking solutions to a wider pool of consumers. But it would also help Carsome push out hire-purchase loans to the unserved and underserved market.\n\n\nHire purchase is a commonly used method to buy cars in Malaysia. In a hire-purchase agreement, the car user is responsible for insuring and maintaining the vehicle, but the bank remains the legal owner until the loan is fully paid.\n\n\nThink of it as a rent-to-own scheme, where you are hiring (or renting) the car that is owned by the bank, and you will only fully own the car when you have paid off your monthly installments.\n\n\nBut venturing into hire-purchase financing can be tricky. The pandemic affected other used-car financing companies such as ELK Desa, which is also listed on the Bursa Malaysia. While the group is now riding the recovery, it had to \nincrease\n impairment allowance and credit loss charges during the peak of Covid-19.\n\n\nCheng argues that while Carsome is geared toward borrowers who do not qualify for prime rate loans, it is a \u201ctransactional platform\u201d unlike banks and car financiers such as ELK Desa.\n\n\nThis allows the company to offer an alternative. If a customer can\u2019t continue paying for the car, they can downgrade their vehicle to a cheaper one with a lower installment plan. Banks, on the other hand, would take back the cars from defaulters.\n\n\nThe KAF digital bank, which is a product of the consortium, is expected to launch by the end of next year.\n\n\nKeeping burn rate low to hit profitability\n\n\nCarsome has also been putting its capital to use by making acquisitions. It finalized its A$191 million (US$128 million) purchase of Australia-listed iCar Asia early this year. It has also expanded to Singapore, Thailand, and Indonesia.\n\n\n\n\nWhat was also noticeable about the company\u2019s series E round in January was that it was led by the Qatar Investment Authority. Other investors include 65 Equity Partners and Seatown Private Capital Master Fund, both of which are backed by Singapore\u2019s Temasek Holdings.\n\n\nBut at the time, macroeconomic conditions were different than they are today. The US Federal Reserve has aggressively raised interest rates (expected to reach nearly 3% by the end of the year), thus marking the end of cheap capital.\n\n\nThis, coupled with investors\u2019 declining appetite for high-growth companies, may become a challenge for Carsome moving forward, says a Malaysian VC attached to a regional institutional fund. \u201cAnd I think interest for such companies will either remain low or drop further,\u201d she tells us.\n\n\nCheng knows that he needs to take advantage of Carsome\u2019s strong liquidity position to break even next year. The company sits on US$340.4 million in dry powder as of the end 2021.\n\n\n\n\nEric Cheng, Carsome\u2019s co-founder and Group CEO / Photo credit: Carsome\n\n\n\n\nWithout providing specifics, he says Carsome\u2019s burn rate is low. The CEO also says that the company\u2019s financing partners \u2013 such as Malaysian banks Maybank and Public Bank as well as Indonesia\u2019s Bank Jago \u2013 are still providing \u201cdebt facilities\u201d at competitive interest rates \u201cwhen it comes to financing working capital as well as buying and selling inventory.\u201d\n\n\nAs for its listing plans, Cheng clarifies that the company never went on record about the delay, but he says that it is one of many options on the table. He adds that \u201cit doesn\u2019t really make sense to explore\u201d an IPO at the moment given current market conditions and economic headwinds.\n\n\n\u201cWe are capable of going public, as we have the right governance structures in place such as audit and compensation committees. So it\u2019s a matter of when or if we should do it. No one has the right answer to be honest,\u201d Cheng says.\n\n\n\n\nThe region\u2019s used-car space is heating up, too. Carsome has a strong footprint in Indonesia and Thailand, but another used-car player, Mobbi, has made its debut in Indonesia. The company is backed by local conglomerate Astra International.\n\n\nBut, aside from profitability and better service, Cheng highlights that Carsome will be working on refining a few things in the next 12 months. Chief among them is its mobile app \u2013 besides their ownership profile, car owners will be able to keep track of ancillary needs such as after-sales services and road tax renewals."}
{"title": "Making sense of Malaysia\u2019s new PM and tech reforms", "body": "Last Thursday, when my \nfirst column\n went live, Malaysia finally settled on its 10th prime minister \u2013 Anwar Ibrahim.\n\n\n\n\nMalaysian Prime Minister Anwar Ibrahim / Photo credit: Sadiq Asyraf / Prime Minister\u2019s Department\n\n\n\n\nThe decision came after a week of political intrigue, and it took shorter than I personally expected. Malaysia has entered a post-election coalition era and that\u2019s something all of us, including those in the tech space, will need to get used to.\n\n\nThis brings me to today\u2019s topic about the country\u2019s new prime minister and what the tech industry can expect from the Anwar government in the next few months.\n\n\nBefore we get to this, here\u2019s a little Malaysian Politics 101:\n\n\nAnwar is the chief of the Pakatan Harapan (PH) coalition, which won the most seats \u2013 82 of them \u2013 in the lower house. To form a government, a coalition needs to win at least 112 seats.\n\n\nBecause none achieved this, Anwar and the other coalition chiefs were instructed by the Malaysian king, Yang di-Pertuan Agong, to form a unity government.\n\n\nBut Anwar\u2019s closest rival, former prime minister Muhyiddin Yassin, didn\u2019t agree to this. His coalition, Perikatan Nasional (PN) \u2013 which primarily consists of Islamists and conservative Malays \u2013 has decided to sit out and remain as the opposition.\n\n\nThis leaves Anwar\u2019s PH and other friendlies, namely Barisan Nasional (BN) and Gabungan Parti Sarawak (GPS) \u2013 the country\u2019s third and fourth largest coalitions, respectively \u2013 to form the government. This is unprecedented as PH, BN, and GPS were all on opposite sides of the political spectrum.\n\n\nNotably, BN has had a knack for corruption. Najib Razak, who\u2019s in jail for corruption charges involving a company linked to 1MDB, comes from this party. The coalition\u2019s current chief, Ahmad Zahid Hamid, is also facing corruption trials.\n\n\nMeanwhile, GPS is Sarawak\u2019s ruling party and has always seen PH as rivals and a thorn. Somehow, this time, they were able to reconcile.\n\n\nThis is a case of weird bedfellows, but it is what we have today.\n\n\nAll three coalitions have previously been in government. BN was the country\u2019s ruling coalition until 2018 when it lost to PH during the 14th general election.\n\n\nAnwar was also part of PH during this time and was designated as Mahathir\u2019s successor, but the succession plan never materialized. PN succeeded PH in 2020 after it successfully triggered a coup.\n\n\nMeanwhile, GPS was in a pact with BN and PN when both were in government.\n\n\nNow, what can we expect from this government? Things are chugging slowly. At the time of writing, Malaysia doesn\u2019t even have a Cabinet yet. But there are trends that we can map out.\n\n\nGreater tech adoption?\n\n\nI\u2019ll begin with some good news: Tech-related policies will have a greater emphasis under Anwar\u2019s government.\n\n\nTwo simple reasons: First, the man himself has shown interest. Under PH 1.0, Anwar launched the \nDigital Native Agenda (DNA23)\n. This was supposed to be a key pillar of the government once he took over from Mahathir.\n\n\nDNA23 was supposed to set the tone for the country\u2019s digitalization policy, efforts include job creation and bringing the digital economy to the more rural parts of Malaysia. However, the program lacked any concrete policies.\n\n\nSecond, some of his PH colleagues, who spearheaded important tech initiatives while serving in the Cabinet, have been reelected as lawmakers. This means we might see some of them in government.\n\n\nNames that are relevant here are former communications and multimedia minister Gobind Singh Deo and former energy, science, technology, environment, and climate change minister Yeo Bee Yin.\n\n\nWhen Yeo was minister, she \nstarted\n discussions with major VCs and startup players in the country to establish a fund-of-funds (FoF) initiative. This was the precursor of Penjana Kapital, the current state-owned FoF.\n\n\nShe also looked into \nrestructuring\n five tech-related agencies: Malaysia Venture Capital Management (MAVCAP), Cradle, Malaysia Debt Ventures, Malaysian Technology Development Corp, and Kumpulan Modal Perdana. This is a much-needed discussion that I\u2019ll wade into in the near future. Suffice to say, nothing materialized due to the change in government.\n\n\nGobind, on the other hand, tackled policies such as internet speeds and \nspearheaded\n the Malaysia 5G policy. Succeeding governments have decided to continue with the country\u2019s 5G rollout but due to the change of administrative hands, this initiative is moving at a snail\u2019s pace.\n\n\nWe are not sure whether either of them will be reappointed to the Cabinet and to their previous positions. But we can at least say that there are experienced hands in the coalition who understand certain aspects of the tech industry.\n\n\nFor what it\u2019s worth, PH has governed Selangor and Penang since 2008, the richest states in Malaysia. They, too, have been trying to stimulate the local tech and startup scene, so there\u2019s some continuity on multiple fronts.\n\n\nWhether bureaucracy can grok the needle is something for a later column. But this is where everything makes or breaks with the government.\n\n\nFor now, the consensus from many Kuala Lumpur-based investors I spoke to is that Malaysian government officials, including those helming state-owned VCs and tech agencies, do not have their ears to the ground.\n\n\nThe only puzzle here is: Who\u2019s going to be finance minister? Remember that all state-owned VCs, tech agencies, and government-linked institutional investors \u2013 including sovereign wealth fund Khazanah Nasional \u2013 are answerable to this ministry as well as the prime minister.\n\n\nI\u2019ll add in something here too: The governance of state-owned entities, or government-linked companies (GLCs) as they are called in Malaysia, is convoluted. Funnily, the term GLC is wide-ranging to the point that if I list them all here, it\u2019ll take forever.\n\n\nAnother thing to note is that the finance ministry owns a golden share in GLCs and thus controls board appointments and major decisions. This golden share is like the dual-class share system where, in this case, despite owning only one share, the owner can veto decisions and so on.\n\n\nBut despite this setup, relevant ministries \u2013 usually the communications and multimedia ministry or the science and technology ministry \u2013 will also have to monitor these entities\u2019 progress.\n\n\nIf you\u2019re scratching your head, believe me, I have been doing that earlier than you have. Welcome to Malaysia.\n\n\nInto uncertainty\n\n\nNow onto some bad-ish news. We\u2019ll start with the upcoming reviews of major ongoing infrastructure projects, a de rigueur of any new government.\n\n\nIn the past, these reviews can be consequential as there was political will backing each government since these were the days of strong single coalitions.\n\n\nThis is no longer the case. Anwar has promised that he won\u2019t embark on a witch hunt. That may be good, but reviews will still be done since he\u2019ll need to do two things: placate his cabinet members and plug leakage.\n\n\nI\u2019m not going to predict which projects will be looked at. Historically, however, there are some trends: It\u2019ll involve large-scale projects north of a billion ringgit (US$223.3 million). There would be a pause, an evaluation, and a renegotiation of the project \u2013 albeit at a lower price \u2013 and then resumption of work.\n\n\nExamples include the \nNational Integrated Immigration Systems\n and the intercity rail projects such as the \nMass Rapid Transit\n and the \nEast Coast Rail Link\n.\n\n\nThere have been cases where projects were canceled and a fresh tender was called. Usually these types will end up in a lawsuit that\u2019ll usually be \nsettled out of court\n. Suing the government is tough.\n\n\nFor now, any major deals or policies that involve a government agency \u2013 including state-owned VCs \u2013 is fair game.\n\n\nAn effect of project reviews is also a change in the leaderships of state-owned entities. Tech-related agencies such as MAVCAP, Malaysia Digital Economy Corporation, and Malaysia Debt Ventures are not spared.\n\n\nThere are some who\u2019ve withstood regime changes and continue with their work, such as Malaysian Research Accelerator for Technology & Innovation CEO Dzuleira Abu Bakar. But she is an exception to the norm.\n\n\nTL;DR: We will be facing momentary uncertainty.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.48 ringgit."}
{"title": "The pandemic hit rural SMEs hard. Here\u2019s how Shopee helps them bounce back", "body": "When the pandemic upended the Malaysian economy, the impact was especially dire for \nSMEs\n, who saw their share of the national gross domestic product decline in 2020 and \nagain in 2021\n.\n\n\nThis is a worrying development, as SMEs account for \n98% of all Malaysian establishments\n, many of which are located in rural or semi-rural areas.\n\n\nIn general, these small businesses tend to \nlag behind larger firms in digital transformation\n, and tech adoption is especially low among rural entrepreneurs due to a lack of internet infrastructure, key talent, and hardware. With \n60 million new consumers\n coming online thanks to the pandemic, these SMEs need to pick up digitalization in order to survive.\n\n\n\n\nPhoto credit: \noqba\n / 123RF\n\n\n\n\nAll of this has created a digital divide that has only widened with the pandemic, an issue that the government is addressing with a \n21 billion ringgit (US$4.7 billion) investment\n and a network of IT centers for entrepreneurs to help them access free training and facilities.\n\n\nThe potential that digitization unlocks\n\n\nThough internet connectivity in the country\u2019s less urban areas is still far from perfect, the pandemic has shown that just having a basic connection could have a transformative effect for entrepreneurs in these locations. Mohd Ghazali, a former teacher from the Sabak Bernam district, is one example.\n\n\n\u201cDuring the first lockdown in March 2020, I spent most of my time preparing and conducting home-based teaching and learning,\u201d he recalls.\n\n\nHe began selling his wife\u2019s \nsambal pecal\n, a spicy peanut-based sauce, on ecommerce platform \nShopee\n as a way to kill time and earn a little extra income. Previously, she\u2019d only been selling it offline.\n\n\nBefore opening his online store, Mohd Ghazali and his wife struggled, as their reach was limited to how many people he could physically meet, how many jars he could carry, and the cash-only payments he could accept.\n\n\nAll that changed with Shopee: the entrepreneur\u2019s business became much easier to run with digital tools that helped to promote his products, conduct transactions online, and manage logistics.\n\n\nWhat started out as a humble venture has since become a thriving online business. He now earns an average of 30,000 ringgit (US$6,740.00) a month and has expanded his product line to include local snacks.\n\n\n\u201cWith digitalization, rural entrepreneurs have the opportunity to bring their products, such as fresh produce or handicrafts, to a wider audience without high costs,\u201d says Kenneth Soh, the head of marketing campaigns for Shopee Malaysia.\n\n\nSoh adds that SMEs in these areas are often \nat a bigger disadvantage\n than their urban counterparts who benefit from more readily accessible internet connections and their technical know-how. Complex and expensive logistics further complicate the matter.\n\n\n\u201cWe want to reduce these barriers and help sellers access the benefits of the digital economy,\u201d says Soh.\n\n\nConnecting buyers and sellers\n\n\nShopee launched in Malaysia in 2015 with the goal of helping sellers connect to more buyers and scale online quickly.\n\n\n\u201cFirst-time entrepreneurs can easily open a store on Shopee and manage all aspects of their operations with ease \u2013 from deliveries and payments to inventory management and marketing,\u201d says Soh.\n\n\n\n\nKenneth Soh, head of marketing campaigns for Shopee Malaysia / Photo credit: Shopee\n\n\n\n\nMohd Ghazali shares that having access to a variety of tools for functions like marketing and logistics at zero cost helped him make the most of his available resources. Meanwhile, the free online classes he attended via Shopee University, a multilingual seller training program, enabled him to increase sales and traffic to his store.\n\n\nShopee\u2019s interface is an end-to-end ecosystem with tools and solutions such as livestreaming capabilities and cashback programs. Mohd Ghazali points to features such as Shopee Ads and shipping discounts as key promotional solutions that led to the success of his wife\u2019s \nsambal pecal\n business.\n\n\n\u201cI probably would not have been able to be where I am today without the reach that Shopee is able to provide,\u201d he says.\n\n\nPutting power back into sellers\u2019 hands\n\n\nFor Khairul Azmi, who is the son of farmers from the small fishing port of Tok Bali, Shopee helped his parents regain control over their lives.\n\n\n\u201cMy mother and stepfather\u2026 plant corn and sweet potatoes and rely on middlemen to collect the produce to sell in Cameron Highlands,\u201d he says. \u201cWe had no control over the price of produce, as that\u2019s usually determined by the middlemen.\u201d\n\n\nWhen Covid-19 hit, Khairul\u2019s parents saw their incomes dwindle as the brokers they worked with shuttered operations or demanded steep discounts.\n\n\n\u201cI decided to help by setting up a Shopee store to directly sell to consumers,\u201d he says. \u201cIt wasn\u2019t difficult, very little tech knowledge is required \u2013 it\u2019s like setting up a social media account.\u201d\n\n\nFrom his home in Kuala Lumpur, Khairul could remotely manage his parents\u2019 orders and marketing initiatives.\n\n\n\u201cWhenever I receive an order, Shopee\u2019s platform auto-generates an \nairway bill\n which I send to my family through WhatsApp,\u201d he explains. \u201cThey then print it out, harvest the produce, pack, and ship out within 24 hours.\u201d\n\n\nBy cutting out the go-between, Khairul says his parents sold their entire stock within two months, collecting 100% of the proceeds.\n\n\n\u201cWe gained more autonomy and control over the way we run our business,\u201d he says.\n\n\nSupporting the community\n\n\nThe success of Mohd Ghazali\u2019s \nsambal pecal\n store has enabled him to support not just his children but also local farmers whose livelihoods were affected by the pandemic.\n\n\n\u201cI purchase an average of 400 kilograms of produce from farmers in my village every week at a slightly higher price to help them increase their revenue,\u201d he says.\n\n\n\n\nMohd Ghazali Anuar runs a store on Shopee selling a peanut-based sauce / Photo credit: Shopee\n\n\n\n\nHis earnings have also enabled him to employ underprivileged workers as a way of giving back to his community.\n\n\n\u201cIt\u2019s not much, but it helps,\u201d he says. \u201cWhen you help others grow, you will receive blessings.\u201d\n\n\nMohd Ghazali\u2019s story shows how important SMEs are to the continued recovery and growth of the overall Malaysian economy. When rural entrepreneurs are supported, there are both tangible and intangible knock-on effects.\n\n\nSimilarly for Khairul, his parents\u2019 store has helped spread the word of the quality of Tok Bali corn.\n\n\n\u201cThe most popular corn in the market is from Cameron Highlands, but most people don\u2019t know that there aren\u2019t many corn plantations there,\u201d he says. \u201cMost of the time, that corn was purchased in Tok Bali.\u201d\n\n\n\u201cMaybe now there will be more support given to farmers there.\u201d\n\n\n\n\nShopee is the leading ecommerce platform in Southeast Asia and Taiwan, where customers and merchants are connected in an ecosystem for an easy and secure online shopping experience. Shopee is committed to supporting rural entrepreneurs in Malaysia by providing them with the tools and services they need to scale and succeed.\n\n\nTo find out more about how Shopee can support your entrepreneurial journey, click on \nthis link\n.\n\n\n\n\nThis content was produced by Tech in Asia Studios, which connects brands with Asia\u2019s tech community. \nLearn more\n about partnering with Tech in Asia Studios."}
{"title": "Malaysia: No country for tech heroes", "body": "Recently, I had tea with a few startup founders. A common request \u2013 and a reasonable one \u2013 is to showcase what Malaysia has to offer. A hero story, as they say.\n\n\n\n\nMalaysia\u2019s capital city, Kuala Lumpur. Photo credit: pat138241 /123RF\n\n\n\n\nThat sounds really good: I work for a regional tech publication, which is the best platform to parade and fete what the country has to offer.\n\n\nBut it\u2019s also a difficult request.\n\n\nMore so now as Malaysia looks to appoint its new government. Depending on when you read this column, the country would either already have a new prime minister sworn in while horse trading is still on, or we\u2019ve reached an impasse with no clear winner.\n\n\nWhat does politics have to do with tech? Policymaking, of course. The outcome of Malaysia\u2019s search for a new government could either push the country\u2019s tech industry forward or hold it back.\n\n\nFrom brain drain to political uncertainty\n\n\nThere are major problems that the country has to deal with but two seem relevant here: the lack of skilled talent, with many citizens plying their trade elsewhere, including Singapore, and a dull tech industry that only produces local champions or \njaguh kampung\n in Malay.\n\n\nThe tech evangelists in the previous government, including former finance minister Tengku Zafrul Tengku Aziz, are no longer around, having lost their respective battles in the recent general elections.\n\n\nThe startup space will remember Zafrul as the man who got Penjana Kapital, a state-owned fund of funds, going. He also \ngraced\n Catcha founder Patrick Grove\u2019s Wild Digital conference, which was among the large tech-related conferences in the country before the elections.\n\n\nBut despite an openness towards startups and VCs, Zafrul failed to install more serious reforms in the space. Many government-owned VCs overlap in terms of investment mandates.\n\n\nEven the largest of these, Mavcap, has come under \ncriticism\n for being sluggish in deploying capital and in raising a VC class. State-owned VCs and tech agencies answer to the finance minister.\n\n\nWhat hangs in the balance is a \nbag of goodies\n worth US$100.4 million for tech and startup funding in the country\u2019s 2023 federal budget.\n\n\nWhen a new government waltzes in, it\u2019ll have to table the budget again, which will then be voted on in parliament. This is because elections were called right after the budget was announced but not passed.\n\n\nThis will be the first order of government business. This process allows some of the startup/tech items to be reviewed. There might also be a chance that these perks and promises stay as they are.\n\n\nBear in mind, however, that the government is not bound by budget promises. It can divert funds to other more important issues or delay the funding of certain programs.\n\n\nThere are other issues that need to be rectified. Founders will have to deal with a \nstaid bureaucracy\n and political turmoil. Such hurdles encourage startups to be domiciled in a country where bureaucracy is much more efficient and approvals come easier.\n\n\nCorruption remains a major headache too. The country\u2019s graft buster is \ninvestigating\n the Malaysia Digital Economy Corporation for US$4.9 million in false claims.\n\n\nTo make matters worse, Malaysians are talking more about Indonesian startups than local ones. In September, Traveloka \nnetted\n US$300 million from BlackRock and the Indonesian government at a time when the world is recovering from the Covid-19 pandemic but staring at an economic recession.\n\n\nThis has led to chatter of what others in the region are doing, with many pointing out that Malaysia seems to be left in the doldrums despite having strategic advantages like better public infrastructure and a multilingual workforce.\n\n\nAnd we haven\u2019t even touched on the number of politically linked individuals in the startup space, which makes it difficult for me to cover and highlight. There\u2019s possible legal action with the good ol\u2019 defamation suit. There\u2019s also the web of relationships that one has to mine in order to get to the bottom of who is truly a startup\u2019s benefitting owner.\n\n\nBut there are some good people here. There are also those who have Malaysian roots but are doing good work abroad.\n\n\nIf there\u2019s one thing that will mark the Malaysian tech narrative for at least the next five years, regardless of who walks into government, it\u2019s not one of heroes, but of survivors."}
{"title": "Why Malaysian tech firms are shunning Bursa for Nasdaq", "body": "If you\u2019ve been following tech news in Malaysia, one thing that stands out is the number of companies \u2013 including Carsome and Capital A \u2013 that are keen on listing on the Nasdaq.\n\n\n\n\nPic: Bursa Malaysia\n\n\n\n\nAnd why not? With a market capitalization of shares traded US$28.4 billion, the stock exchange is second only to the New York Stock Exchange globally.\n\n\nStarbox Group, which provides cash rebates, digital advertising, and payment solutions, is the \nfirst Malaysian company\n to list on the Nasdaq. The group began trading on the exchange on September 4 this year.\n\n\nBut why are many Malaysian firms seeking fortunes abroad instead of looking toward Bursa Malaysia, the local exchange? After all, Indonesian peers Blibli, Bukalapak, and GoTo are listed on the Indonesia Stock Exchange.\n\n\nThe answer is complex, according to Kuala Lumpur-based investors who spoke to \nTech in Asia\n, but they agree that if nothing is done to bolster Bursa Malaysia\u2019s appeal, the country will continue to lose out to overseas peers.\n\n\nOne Kuala Lumpur-based institutional investor we spoke to believes that the main reason Malaysian companies are going abroad is the allure of dual class shares, which provides owners with superior voting rights over their companies despite not having large equity ownership.\n\n\nCompanies that have a dual-class structure have two designations for common stock, A shares and B shares. One class of stock ownership has more power than the other. Holding these more powerful shares allows shareholders, which usually consists of founders, to control boardroom decisions.\n\n\nGrab is a good example in this case, he says. The super app\u2019s co-founder, Anthony Tan, has 60.4% of the firm\u2019s voting rights even though he owns just 2.2% of its shares.\n\n\n\u201cAnd this isn\u2019t a Nasdaq thing,\u201d he points out, referring to Malaysia\u2019s regional peers Singapore and Hong Kong. Both countries introduced dual class shares in 2018.\n\n\n\u201cOne explanation here is that Malaysian law is heavily influenced by the Commonwealth system. This includes the country\u2019s companies law. But the UK is now open to dual class shares,\u201d the investor said.\n\n\nThe UK\u2019s Financial Conduct Authority (FCA) said last year that it would implement changes to its listing rules to permit companies with dual class shares to be admitted to a \u201cpremium list.\u201d But there\u2019s a \ncaveat\n: Companies are expected to drop the share structure after five years of going public.\n\n\nTo be sure, dual class shares have their critics. Principles for Responsible Investment, a sustainable investing body backed by the UN, wrote a \nletter\n in September last year to the FCA stating that dual class structures \u201cwould weaken the existing [governance] regime and risks undermining confidence by institutional investors in the UK premium listing segment.\u201d\n\n\nDifferent per-SPAC-tives\n\n\nAnother attraction for Malaysian companies is the nature of special purpose acquisition companies (SPACs) in the US. A SPAC, or blank-check company, is generally given a two years to close the acquisition of a private company before returning the raised money to investors \u2013 Grab is an example of a successful SPAC listing.\n\n\nA banker attached to a regional investment bank tells \nTech in Asia\n companies going through the SPAC route in the US have an advantage at the pre-IPO stage.\n\n\n\u201cInvestors, or sponsors as they are known, backing a SPAC during this period are able to vote\u201d on the acquisition of an existing operating company or the merger of an operating company and a publicly listed SPAC, which in turn means fewer votes are needed from public investors, she argues.\n\n\nMalaysia introduced SPACs in 2011. So far 11 have filed for listings, but only two have been successful. Both companies are in the oil and gas sectors. Bursa, on the other hand, sees an average of 30 IPO listings every year.\n\n\nThe Securities Commission (SC) Malaysia, however, revised SPAC listing guidelines this year. Chief among them is that a SPAC now needs only a simple majority by all shareholders present and voting rather than the 75% majority.\n\n\nSC is one of two capital market regulators in Malaysia \u2013 Bursa itself is the other.\n\n\nThe political elephant in the room\n\n\nFinally, there\u2019s the political risk. \u201cWe can\u2019t ignore the elephant in the room,\u201d says a Singapore-based dealmaker. \u201cThe Malaysian market has been unattractive since the 1Malaysia Development Bhd scandal exploded in 2017 and the ensuing political crises.\u201d\n\n\nMalaysia has seen three regime changes since 2018: The first was after the 14th general election that year, the second was through a coup in 2020, and the third cameafter the government failed to win a confidence vote in parliament in 2021.\n\n\nCompanies looking to list in Malaysia will have to adhere to the country\u2019s affirmative action rules, which require them to allocate a certain percentage of ownership to Malay institutions or investors.\n\n\nFurther, there\u2019s lesser liquidity on the Bursa Malaysia compared to other exchanges such as the Hong Kong Stock Exchange as state-owned companies, also known as government-linked companies (GLCs), \nmake up\n 25% or 445 billion ringgit (US$99 billion) of the bourse\u2019s market capitalisation of 1.81 trillion ringgit (US$397 billion). GLCs are controlled by state-owned institutions.\n\n\nBloomberg terminal data also show that Malaysian state-owned institutions also make up 50% of investors on the Bursa, followed by foreign (40%) and retail (10%) investors.\n\n\nMalaysia\u2019s capital market regulators \u2013 SC and Bursa \u2013 are also vulnerable to political interference. The SC\u2019s newly appointed chairman, Awang Adek Hussin, is a \nmember\n of the country\u2019s ruling political party, Umno. Bursa also saw new leadership appointments following regime changes in 2018 and 2020.\n\n\nSystemic difficulties\n\n\nAs mentioned above, the SC and Bursa Malaysia govern the country\u2019s capital market. In a nutshell, besides having prosecution powers, the SC oversees the Bursa to ensure the stock market operator performs its duties and obligations effectively.\n\n\nBursa, on the other hand, ensures the fair and orderly trading of securities and derivatives. There are three platforms to trade these instruments on the Bursa: Main, ACE and LEAP.\n\n\nACE and LEAP are acronyms for Access, Certainty and Efficiency and Leading Entrepreneur Accelerator Platform.\n\n\nTo list on the main market, a company needs to have a combined track record of 20 million ringgit (US$4.39 million) in profit for the latest three to five financial years. The profit in the latest financial year should be at least 6 million ringgit (US$1.31 million).\n\n\nSome companies that successfully listed on the main market tell us that the process is stringent and can be expensive, given that the SC demands a lot of paperwork and hefty investment banking fees.\n\n\n\u201cIt roughly cost us about 3 million ringgit (US$659,000) to get the initial work done and investment banking fees and a duration of 10 months to be listed on the main market,\u201d the managing director of a company listed on the main market-listed tells us.\n\n\nHe went on to add that this may drive many firms away from listing on the main market because it\u2019s more of a \u201cprofits-test\u201d exercise.\n\n\nACE and LEAP, on the other hand, are regulated by the Bursa and have less stringent measures.\n\n\nCompanies listing on ACE are not required to provide a track record of historical profit but need to have a paid-up capital of between 5 million ringgit (US$1.09 million) to 10 million ringgit (US$2.19 million). Patrick Grove\u2019s Catcha Digital, for example, is listed here.\n\n\nLEAP, introduced in 2017, is designed for SMEs that do not meet the paid-up capital requirements of ACE. Companies looking to list here are also not required to furnish a profit record but need to ensure they are solvent as per the standards set by the Malaysian companies\u2019 act.\n\n\nBut LEAP is only accessible to \u201csophisticated investors,\u201d which the bourse defines as entities with net assets exceeding 10 million ringgit (US$2.19 million) or individuals with net personal assets exceeding 3 million ringgit (US$655,158) or whose gross annual income exceeds 300,000 ringgit (US$65,883).\n\n\nLEAP was the first of its kind in Southeast Asia. Regionally, other similar markets include South Korea\u2019s Konex and Taipei Exchange\u2019s Pioneer Stock Board.\n\n\nHowever, Bursa has yet to roll out a transfer framework from LEAP to ACE despite discussing it since 2019. Only in August this year, Bursa \nofficially\n put out a call for public feedback on how the transfer should be carried out.\n\n\nUnless Bursa moves quickly, LEAP companies seeking to transfer to ACE will have to delist and relist. An investment banker who has worked with ACE and LEAP aspirants tells \nTech in Asia\n that listing on the ACE will set a company back roughly 2 million ringgit (US$439,000).\n\n\nThere are also no transfer frameworks from ACE to the main market. To list on the main market, an ACE-listed company will need to delist and relist and cough up more money.\n\n\nAs of September this year, there are 1,008 companies listed across all three markets, according to the Bloomberg terminal data \u2013 down from 1,027 firms in 2006. The Singapore Stock Exchange has 763 companies while the Hong Kong Stock Exchange has 2904 firms.\n\n\nMalaysia to lose out?\n\n\nA corporate advisory firm that has been engaged by US bankers tells \nTech in Asia\n that many bankers and advisers from the States have been flying into Kuala Lumpur to urge local businesses to list on the Nasdaq.\n\n\nSome even offer incentives such as discounts on underwriting, one said. He adds that the common sales pitch includes access to a larger pool of investors, better credibility, and regulatory framework, as well as greater funding opportunities.\n\n\nAnother private equity investor we spoke to agrees that some of these may help a company\u2019s valuations. He believes Malaysian tech unicorns would have a lower valuation if they listed on the Bursa than on the Nasdaq.\n\n\n\u201cType of investors, a company\u2019s profile, the ability to tap alternative markets \u2013 these things are important when determining a company\u2019s valuation, which is typically what helps improve shareholders\u2019 return,\u201d he explains.\n\n\nA founder of one of the companies we mentioned above also says that many firms have been asking regulators to review some of the strict guidelines \u2013 especially the emphasis on profits \u2013 to make it easier and attractive to list on the Bursa, but progress has been slow.\n\n\nAnother tech startup founder tells us that it may be inevitable that companies list overseas. He says that a local company may have an office in Malaysia, be headquartered in Singapore, but list in the US.\n\n\nHe says that startups in Malaysia are often quizzed about their \u201cwillingness to grow beyond Malaysia,\u201d which is a comparatively small market.\n\n\nHe says that this pressures startups to raise more capital, attract a different investor base, and operate in a country that has clear guidelines and incentives. \u201cThe only option, for now at least, is abroad,\u201d he adds."}
{"title": "Google rolls out e-wallet in more SEA countries", "body": "Google\n has added support for its e-wallet in more Southeast Asian countries, including Thailand and Vietnam. This comes after Visa announced it would soon support\u00a0\nGoogle Wallet in Malaysia\n.\n\n\n\n\nGoogle headquarters in Mountain View, California / Photo credit: 123rf.com\n\n\n\n\nGoogle Wallet is now available in 57 countries in total. It has already launched in Singapore, Hong Kong, and Taiwan.\n\n\nThe e-wallet allows users to pay for transportation and products in supported stores. Google has also partnered with ticketing companies, such as Thaiticketmajor in Thailand, to allow users to add event tickets to their wallets.\n\n\nAdditionally, Google joined hands with airlines, including AirAsia and China Air, allowing boarding passes to be saved in Google Wallet.\n\n\nGoogle Wallet\u2019s expansion comes after it was added to the Google Pixel Watch last month. Today, Google also launched the service on the Fitbit Sense 2 or Versa 4.\n\n\nAccording to the\u00a0\ne-Conomy SEA 2022 report\n, Southeast Asia\u2019s digital economy\u2019s expected to reach US$200 billion in gross merchandise value. The report also predicts digital financial services to overtake ecommerce as the region\u2019s top sector for investments.\n\n\nSee Also:\u00a0"}
{"title": "Visa launches Google Wallet feature in Malaysia", "body": "Starting today, \nVisa Malaysia\n credit card holders registered with Hong Leong Bank \u2013 as well as Public Bank credit and debit card holders \u2013 can store their cards on \nGoogle Wallet\n on both Android and WearOS devices. Purchases will be enabled for in-store, in-app, and online transactions.\n\n\n\n\nPhoto credit: Visa\n\n\n\n\nVisa also announced that HSBC and HSBC Amanah credit card holders will have access to this feature in the coming months.\n\n\nGoogle Wallet uses and shares tokenized account numbers with merchants to keep consumer information safe. It also allows users to store other documents such as tickets, vaccination records, and IDs.\n\n\nAccording to the \nVisa 2021 Consumer Payment Attitudes report\n, usage of mobile contactless payment solutions has increased for 60% of Malaysian consumers, with safety and convenience being the main motivations for this. Last year, 70% of all Visa transactions in the country were contactless.\n\n\nThe \ne-Conomy SEA 2022 report\n also predicts that digital payments in Malaysia are expected to hit nearly US$200 billion in gross transaction value by 2025.\n\n\n\u201cThe impact Covid-19 had on the mobile payment landscape saw shifts in preference for digital payments, with more Malaysians opting for safer and more convenient payment solutions and having an overall positive attitude towards new payment trends,\u201d said \nNg Kong Boon\n, country manager of Visa Malaysia.\n\n\nSee also: \nThe Amazon-Visa stand-off: What\u2019s the endgame?\n "}
{"title": "ASEAN central banks sign MOU to boost cross-border payments", "body": "The central banks of Indonesia, Malaysia, Singapore, Thailand, and the Philippines have inked an agreement to bolster regional payment connectivity.\n\n\n\n\nPhoto credit: aseanbriefing.com\n\n\n\n\nBank Indonesia, Bank Negara Malaysia, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore, and Bank of Thailand (BOT) have agreed to make payments across countries faster, cheaper, more transparent, and more inclusive.\n\n\nThe banks signed the memorandum of understanding on Cooperation in Regional Payment Connectivity (RPC) on November 14 in Indonesia, which saw President Widodo highlighting the importance of collaborations during the event.\n\n\nAccording to a joint statement, RPC is expected to boost regional economic recovery and promote growth through boosted cross-border payment support. The cooperation will include initiatives centered around QR codes and fast payments, among others.\n\n\nSee also: \nQRIS, BI Fast propel banks\u2019 fight against e-wallets in Indonesia\n\n\nRonadol Numnonda, deputy governor of the BOT, noted that ASEAN has become an international hub for cross-border payment linkages.\n\n\n\u201cBuilding on our previous efforts, this MOU marks another\u00a0milestone in our \nASEAN Payment Connectivity initiative\n in working together to address the long-standing pain points in cross-border payments,\u201d said Numnonda."}
{"title": "Sunseap\u2019s tale of hope despite widening losses", "body": "Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHi there,\n\n\nGlobal warming has been a hot topic (no pun intended) in the past few years.\n\n\nThe 2021 film \nDon\u2019t Look Up\n satirized political sentiment and society\u2019s reaction to the climate crisis, while \nBlade Runner 2049\n painted Earth as a barren wasteland, set 27 years from now.\n\n\nAdditionally, one of my favorite bands \u2013 The 1975 \u2013 lent the \nopening track\n of their fourth album to climate activist Greta Thunberg and her poignant spoken word.\n\n\nDespite ideas around climate change entering the public consciousness, a real paradigm shift has yet to come as fossil fuels continue to be the biggest contributor to the problem. After all, most of the decades-old factories and plants in operation still require gas, oil, and coal for power.\n\n\nEven though alternative energy sources remain an option, \nadoption has been slow\n.\n\n\nThis is bad news for firms such as Singapore-based solar power firm Sunseap. In this week\u2019s Big Story, my colleague, Collin, explores the firm\u2019s 2021 financials in a series of charts.\n\n\nAfter two years of profitability, the company has reported its largest annual loss in the last seven years. The firm\u2019s total expenses in 2021 nearly doubled from 2020, while revenue only rose 15.4% within the same time span.\n\n\nRegardless, Sunseap\u2019s revenue from energy supply has doubled in 2021 to US$62.3 million \u2013 making it the firm\u2019s largest source of income. This marks a turning point, as two years ago, it was the smallest revenue contributor \u2013 its construction and maintenance of solar photovoltaic systems was its largest income stream before this.\n\n\nThis indicates a growth in demand for alternative energy in Southeast Asian homes and businesses, and perhaps the inklings of a cleaner future.\n\n\nIn other news, Indonesian coffee giant Kopi Kenangan has made its first foray abroad, into Malaysia. This week\u2019s Making Waves features my colleague, Aditya, demystifying the move.\n\n\n\u2014 Shadine\n\n\n\n\nTHE BIG STORY\n\n\nSunseap records biggest loss in 7 years\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe Singapore firm slipped into the red in 2021 after two years of profitability. But its filings show Southeast Asia\u2019s steady adoption of solar energy.\n\n\n\n\nMAKING WAVES\n\n\nKopi Kenangan\u2019s hot cuppa now in Malaysia\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nIndonesia\u2019s Kopi Kenangan has expanded to Malaysia under a new brand, Kenangan Coffee.\n\n\nThe coffee unicorn has also established a training center called Kenangan Academy in its new market.\n\n\nAfter Indonesia, Vietnam and the Philippines, are the next hot markets for coffee startups in Southeast Asia.\n\n\n\n\nHere\u2019s our take:\n\n\nLast month, Kopi Kenangan, an Indonesia-based coffee startup, \nopened its first international store\n in Suria KLCC, a shopping mall in Malaysia. By the end of this year, it plans to open four more stores in the country.\n\n\nThe company, which entered the unicorn club at the end of last year, uses the brand Kenangan Coffee for its international market.\n\n\nAside from Rocket Internet-backed Flash Coffee, Southeast Asia has seen \na rise\n in coffee startups that not only serve a single country but have also been eyeing international expansions. This comes as no surprise since almost 16% of the world\u2019s coffee \ncomes from Southeast Asia\n.\n\n\nBoth Kopi Kenangan and Flash Coffee are chasing the retail coffee market in Southeast Asia that in 2019, was worth US$6.5 billion, with annual growth of around 6%. According \nto a report\n from consultancy firm RedSeer, relatively newer startups like Kopi Kenangan and Flash Coffee have several advantages compared to existing brick-and-mortar-only coffee players, such as greater online presence, lower price points, and locations closer to residential areas that have resulted in faster coffee deliveries.\n\n\nHowever, Kopi Kenangan\u2019s recent move to pick Malaysia as its first international market begs further scrutiny, especially since Malaysia is not a market high on Southeast Asia\u2019s coffee business.\n\n\n\n\nBesides Indonesia, three coffee markets in Southeast Asian countries that are bigger than Malaysia: Vietnam, Philippines, and Thailand.\n\n\nKopi Kenangan said in a statement that it chose Malaysia as there are many similarities between Indonesia and Malaysia people in \u201ctaste\u201d and \u201cinterest to try new things.\u201d In fact, the word *Kenangan*, which means \u201cmemories\u201d in Indonesian, can also be understood by Malay-speakers.\n\n\nSee also: \nKopi Kenangan\u2019s financials\n and \nFore Coffee\u2019s numbers\n\n\nBesides, expanding to Malaysia means Kopi Kenangan doesn\u2019t need to directly compete with Flash Coffee, which currently operates in Indonesia, Singapore, Thailand, Taiwan, Hong Kong, and South Korea.\n\n\nLast year, Flash Coffee announced that it plans to enter Vietnam, the Philippines, and Malaysia by the end of this year. However, the move hasn\u2019t materialized.\n\n\nIn Malaysia, Kopi Kenangan will have to compete with both big and small coffee chains, including the likes of Starbucks, which in partnership with Berjaya Food, plans to open \n40 new stores by July 2023\n. However, the startup has fared well with a similar profile of challengers in its home country.\n\n\nOn top of that, the startup is likely to see competition from Zus Coffee, which expects to have \n180 outlets\n across Malaysia by the end of the year and can be a significant competitor, considering its well-priced cuppas are available in areas Starbucks isn\u2019t.\n\n\n\n\nInterestingly, Kopi Kenangan\u2019s also built a training center called Kenangan Academy in Malaysia to train baristas and other employees that will be in charge of operation in its stores.\n\n\nThe firm built a similar academy in its home country in November 2019, around two years after its inception. Six months after the academy was established, it had \ntrained a thousand baristas\n.\n\n\nSetting up a skills academy is increasingly becoming de rigueur, as seen in the case of Malaysia-based Carsome, which has set up \nsimilar centers\n in Indonesia and Thailand, besides its home country.\n\n\nBesides helping put the word out about a new player in town, these training centers also ensure a ready supply of skilled employees for these companies to open up more stores. After all, there\u2019s no such thing as too much coffee.\n\n\n\u2013Aditya\n\n\n\n\nFYI\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n1\ufe0f\u20e3\nIndonesian agritech firm rakes in $2.5m in seed money to support middlemen\n\n\nPasarMikro enables transactions between farmers and traders while also providing them with working capital and a marketplace to sell their products.\n\n\n2\ufe0f\u20e3\nIndonesia\u2019s Wahyoo eyes series B raise to bake in cloud kitchen ambition\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe restaurant enabler is turning its partners \u2013 including small eateries called \u201cwarteg\u201d \u2013 into cloud kitchen networks for other brands.\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nCheck out \nTech in Asia\u2019s\n coverage of the emerging tech scene \nhere\n.\n\n\n1\ufe0f\u20e3 Indonesia-based \nFishlog\n has raised \nUS$3.5 million\n in its pre-series A funding round. The fishery firm will use its funding to recruit more staff.\n\n\n2\ufe0f\u20e3 Software-as-a-service startup \nChargebee\n \nhas laid off 142 employees,\n or about 10% of its total headcount. The India and US-based startup said it took these measures to increase efficiency and reduce expenses.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n3\ufe0f\u20e3 \nPropseller,\n a Singapore-based proptech firm, has closed its biggest deal to date on a \nUS$14.5 million property in Sentosa Cove.\n In a LinkedIn post, the firm\u2019s CEO said that Propseller\u2019s daily revenue from the deal was as much as it made in its first 501 days as a company.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere\n.\n\n\nSee you next week!"}
{"title": "SG healthtech firm gets $28m pre-series B injection", "body": "Healthtech firm \nSpeedoc\n has raised US$28 million in its pre-series B round, which drew backers including Bertelsmann Investments, Shinhan Venture Investment, Mars Growth, and Vertex Ventures Southeast Asia & India.\n\n\n\n\nSpeedoc co-founders Serene Cai (left) and Shravan Verma / Photo credit: Speedoc\n\n\n\n\nFounded in 2017 by \nSerene Cai\n and \nShravan Verma\n, Speedoc offers tech-enabled, omnichannel healthcare services, giving users access to telehealth consultations, on-site doctor and nurse visits, virtual hospital wards, and ambulance-hailing services.\n\n\nHeadquartered in Singapore, the firm operates in its home country and eight cities in Malaysia. Speedoc last \nraised\n US$5 million via its series A round in 2020.\n\n\nAt the height of the Covid-19 pandemic, the firm provided support for the Singapore government\u2019s home recovery and home vaccination programs.\n\n\nThe fresh funds will be channeled into developing virtual hospitals across Southeast Asia. Speedoc also aims to expand H-Ward, its 24/7 virtual hospital platform.\n\n\nThe startup is working with Singapore-based hospital partners on a two-year pilot trial for virtual ward services. The initiative is part of the Ministry of Healthcare Office for Healthcare Transformation\u2019s Mobile Inpatient Care@Home initiative.\n\n\nSee also: \nAn unknown Singapore healthtech firm\u2019s dubious $583m valuation\n "}
{"title": "Malaysia\u2019s CTOS reports strong Q3 results, set to ride SEA\u2019s fintech wave", "body": "CTOS may not be a familiar name to readers, especially those outside Malaysia.\n\n\nThis is despite the credit reporting company having the largest IPO on Bursa Malaysia, the country\u2019s stock exchange, in 2021. Retail demand for the \n1.2 billion ringgit\n (US$253.2 million) IPO was the largest in eight years, which reflects CTOS\u2019 position as the market leader in Malaysia.\n\n\n\n\nPhoto credit: Tech in Asia\n\n\n\n\nThe company was \nestablished in 1990\n, before the term fintech was even \ncoined\n. Yet, it is set to benefit from the same trends driving the growth of the fintech sector in Malaysia and the wider region.\n\n\nAs a credit reporting firm, CTOS provides information to financial institutions so they can assess whether or not to lend to potential borrowers and how much they can disburse to them. Businesses also use the information provided by CTOS to determine the financial condition of potential partners. Its key customers include peer-to-peer lenders and ecommerce platforms.\n\n\nRevenue and EBITDA up\n\n\nUnlike many of today\u2019s cash-burning fintech startups, CTOS is profitable and generates cash flow from its operations. It even pays shareholders a dividend.\n\n\nLast week, the company announced healthy \nresults\n for the third quarter of 2022. Revenue for the quarter was up 37% year on year, and \nEBITDA\n increased by 86% over the same period.\n\n\nEBITDA margins expanded from 43% in Q3 2021 to 58% in the most recent quarter, which the company \nattributed\n to scalable organic growth and higher contribution from its associates.\n\n\n\n\nThe company\u2019s operating expenses have generally gone up in line with revenue. However, for the first three quarters of this year, total operating expenses as a percentage of revenue was 62%, down from 67% in 2021, which hints at better economies of scale.\n\n\n\n\nCTOS\u2019 share price is currently 1.37 ringgit (US$0.29), up 25% from its IPO price of 1.10 ringgit (US$0.23), but down 26% year to date.\n\n\nRiding the fintech wave\n\n\nAs tech players have grown and ventured into lending services in recent years, so has their demand for credit reports. CTOS is the dominant player in Malaysia, and it competes with the likes of CRIF Omesti and Dun & Bradstreet Malaysia \u2013 whose parent Credit Bureau Asia is listed in Singapore.\n\n\nMalaysia\u2019s upcoming digital banks and accelerating adoption of buy now, pay later services will further fuel demand for CTOS\u2019 services.\n\n\nHowever, the company wants to expand its offerings beyond its core business. In its \nlatest annual report\n, it noted that its \u201ckey competitive edge\u201d is its ability to provide value-added digital solutions \u201cbeyond traditional credit reporting.\u201d\n\n\nTo that end, it has spent the past few years launching digital solutions that span every stage of the customer life cycle, from digital onboarding to debt recovery.\n\n\n\n\nCTOS segments its revenue by customer type, with the largest share coming from SMEs in Malaysia. Its client base is diversified, with no single customer contributing 10% or more of the company\u2019s revenue.\n\n\n\n\nHowever, CTOS stated in its prospectus that its strategy going forward is to maintain and grow its market share by growing its key accounts customer base. It also plans to launch more digital solutions targeted at consumers.\n\n\nSoutheast Asia underpenetrated\n\n\nThe size of Southeast Asia\u2019s credit reporting industry is small, amounting to only 3% of its US counterpart, according to \nresearch\n conducted by tech market intelligence provider IDC.\n\n\nHowever, it is growing at a faster rate. From 2o21 to 2025, IDC expects the region\u2019s credit reporting market to grow at a compound annual growth rate (CAGR) of 10.8%, compared to 7.5% in the US for the same period.\n\n\nWithin Southeast Asia, the top three markets for credit reporting are Singapore, Malaysia, and Indonesia.\n\n\n\n\nThere is an inverse relationship between market size and expected growth \u2013 generally, the larger a market is, the slower the expected rate of growth. The exceptions are Malaysia, which is expected to grow at a higher CAGR than Indonesia despite the latter\u2019s larger market size, and Thailand, where growth between 2021 and 2025 is expected to lag behind Indonesia, even though the former\u2019s market size is much smaller.\n\n\nThis bodes well for CTOS, since it had a dominant share of 73% in Malaysia for 2021. However, there may be limits to its growth.\n\n\nCTOS and its subsidiaries hold three of seven credit reporting agency licenses issued in Malaysia, which could subject the firm to \u201cincreased regulatory scrutiny,\u201d it acknowledged in its prospectus.\n\n\nThe company already has a presence in Thailand through its investment in Business Online. In the longer term, CTOS sees Southeast Asia as a \u201ctremendous opportunity,\u201d one it is likely to seize through acquisitions.\n\n\nAcquisition spree\n\n\nSince its IPO, CTOS has made a series of acquisitions meant to bolster its presence in the region and in areas outside traditional credit reporting.\n\n\n\n\nSo far this year, CTOS has spent 325 million ringgit (US$68.6 million) on investments in associates, which is more than the 220 million ringgit (US$46.4 million) it raised in its IPO. To bridge this gap, the company raised a further 174 million ringgit (US$36.7 million) in March through a private placement.\n\n\nThe Juris acquisition, in particular, was significant, with CTOS paying 206 million ringgit (US$43.5 million) for 49% of the company. \nAccording to the credit reporting firm\n, the acquisition would allow it to offer a \u201cfull suite of solutions, similar to other global bureaus\u201d such as Experian, TransUnion, and Equifax.\n\n\nHow do these acquisitions affect CTOS\u2019 financials? They don\u2019t affect the top line but are instead reflected as \u201cshare of profits of associates\u201d and count toward the company\u2019s profits.\n\n\nFor the \nfull year ending December 31, 2021\n, this line item accounted for 14% of CTOS\u2019 profit before tax. The comparable figure for the first three quarters of 2022 is 21%.\n\n\nIt\u2019s worth noting that the sums that the company earmarked for acquisitions and investments have exceeded its expectations at the time of its IPO by more than 5x. In its prospectus, CTOS said it planned to deploy 58.7 million ringgit (US$12.4 million) of proceeds from its offering for investment and acquisition of various targets \u201cin the next 36 months.\u201d\n\n\nIn response to \nTech in Asia\u2019s\n queries, CTOS said that M&As are \u201coften opportunistic.\u201d It stated that what was disclosed in the prospectus was based on available options at the time, but that when it subsequently \u201cgot the opportunity to acquire more stakes \u2026 we took it.\u201d\n\n\nManagement has since \u201creaffirmed its plans to \nput on hold\n any further acquisitions for one to two years,\u201d according to an analyst note from Nomura.\n\n\nWhy the pause for now? CTOS tells \nTech in Asia\n that it intends to spend the next couple of years \u201cdigesting our recent acquisitions\u201d and that it will \u201cfocus on extracting synergies via cross-selling opportunities to deepen wallet share to increase revenue.\u201d\n\n\nGiven the pace of acquisitions and the volatile macroeconomic environment, that may be the prudent choice for now, and it is unlikely to have a significant impact on CTOS\u2019 revenue or profit growth.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.74 ringgit."}
{"title": "Tony Fernandes steps down as AirAsia X group CEO", "body": "Tony Fernandes\n has resigned as \nAirAsia X\n group CEO only four months after taking up the executive role, \nThe Edge Markets\n reported. Effective immediately, the decision was made due to \u201cother commitments,\u201d he said.\n\n\nPreviously, Fernandes was a non-independent non-executive director at the company. Fernandes stepped into the role after his predecessor Nadda Buranasiri \nresigned\n in April.\n\n\nMalaysia-based AirAsia X is the sister company to budget airline AirAsia and operates medium- to long-haul flights.\n\n\nFernandes is largely known for turning the previously indebted government-linked airline into a thriving company, listed on the Malaysian stock exchange. He has been with AirAsia for over 20 years.\n\n\nAirAsia X recently announced that it will \nexpand medium-haul routes\n from Bangkok to cities in Japan, South Korea, and Australia amid high demand, \u201creactivating\u201d 175 pilots and 285 cabin crew who had been previously furloughed at the height of the pandemic.\n\n\nSee also: \nAirAsia Rides builds on Gojek\u2019s operations to battle Grab in Bangkok\n "}
{"title": "Capital A sees 161% YoY growth in AirAsia super app users in Q3 2022", "body": "Capital A\n\u00a0said it saw a 1,925% year-on-year increase in passengers for the third quarter of 2022, operating 68 aircraft during the period.\n\n\nWith the still climbing interest in travel, the company said its super app saw 9.5 million average monthly active users in the quarter, a 161% growth compared to the same period last year.\n\n\n\n\nPhoto credit: Capital A\n\n\n\n\nThe number of transactions made through the app also saw a 1,953% year-on-year increase for Q3. This represented a 139% growth from the previous quarter.\n\n\nCapital A attributed this growth to the app\u2019s travel vertical, seeing boosts in bookings through FlyBeyond, AirAsia flights, and its Hotels platforms. The company also said its ride-hailing arm, AirAsia Ride, also completed 550,000 trips in the quarter.\n\n\nThe company registered a 21% quarterly growth in its logistics business, Teleport, which moved 26,667 tonnes in Q3. Delivery orders through the business experienced a larger uptick, growing 136% in the quarter to 2.7 million deliveries.\n\n\nMeanwhile, Capital A\u2019s fintech arm BigPay saw its user base grow to over 1.2 million in Q3, representing a 48% and 4% increase on a year-on-year and quarter-on-quarter basis, respectively. The company said the improvement was on the back of new product launches, including that of its budgeting and saving tool Stashes.\n\n\nSee Also: \nAirAsia Rides builds on Gojek\u2019s operations to battle Grab in Bangkok"}
{"title": "Behind Penang\u2019s development as a tech hub", "body": "Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a premium subscription\n.\n\n\nHello reader,\n\n\nI recently got back from a two-week trip to New Zealand. While everything about the vacation was great, there was one thing I realized: I didn\u2019t really eat a variety of food.\n\n\nSure, the beef and venison were delicious, with a fresh quality that could only have come from the free range pastures of local farmers. But I\u2019m Singaporean. I need some spice and life in my food \u2013 if not, why bother living at all?\n\n\nNow, Penang on the other hand\u2026\n\n\nI\u2019ve never actually been there, but the Malaysian state is always in contention for being one of the best places in the world when it comes to food. If you ask me, I can\u2019t believe I haven\u2019t actually visited yet.\n\n\nIn today\u2019s story, we take a look at Penang \u2013 although unfortunately (for me), it\u2019s not a travel guide about where to find the best dining options. Instead, we explore its tech startup scene, which showed much promise some seven years ago. Today, however, things are different. What changed?\n\n\nToday we look at:\n\n\n\n\n\n\nWhat happened\n to Penang\u2019s dream of being a tech hub?\n\n\nA Singaporean biotechnology company going public. \n\n\nOther newsy highlights such as a new code of conduct for Singapore-based BNPL players and GoTo Group\u2019s possible controlled sale of around US$1 billion worth of shares. \n\n\n\n\n\n\nPremium summary\n\n\nPenang dreamin\u2019\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nSingapore and Malaysia have always had a friendly rivalry when it comes to food. I\u2019m just kidding, but I\u2019m pretty sure there are people who would actually fight each other over it.\n\n\nThat being said, there\u2019s another similarity that Penang could have shared with Singapore: that of being a top global hub for tech startups. What happened to that vision?\n\n\n\n\n\n\nToo many cooks:\n According to Khoo Kah Lee, a tech evangelist in Penang, the involvement of state agencies conflicted with his efforts, as their agendas were \u201cnot aligned.\u201d Lee, also known as Curry, added that because Penang is a small state with a population of 1.8 million people, \u201cit made no sense to have two groups (i.e., state vs. non-state [actors] working on the same thing.\u201d \n\n\n\n\nSilver spoon:\n All things considered, Penang actually had a great start. When Malaysia first began attracting global manufacturers to set up shop in the country in the 1970s, Penang was the location of choice due to its English-speaking workforce and connectivity with its strong port and logistics sector. Today, the state has a strong semiconductor industry and an extremely tech-savvy entrepreneurial class. \n\n\n\n\nMissing ingredients:\n With all its resources, however, Penang still lacks in some critical areas, namely talent development, venture capitalist funding, and mentors. Large multinationals and local tech giants tend to get the lion\u2019s share of new talent by offering attractive pay packages, and many young founders would rather consider Kuala Lumpur or Singapore for their headquarters instead.\n\n\n\n\nRead more: \nTwists and turns in Penang\u2019s tech ambitions\n\n\n\n\nStartup spotlight\n\n\nHeal the world, make it a better place\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nI love science fiction. And in many of the media or literature under that genre, one of the defining characteristics is how advanced biotechnology is.\n\n\nFor example, the plot of \nElysium\n, a film from 2013, revolves around a dying man trying to get access to \u201cMed-Bays,\u201d which can heal any disease. While such concepts might be entirely fictional, we shouldn\u2019t discount that biotechnology is making progress today. This is especially so with \nAUM Biosciences\n, a clinical-stage biotechnology company that recently announced it was going public.\n\n\n\n\n\n\nScrew cancer:\n AUM Biosciences was founded in 2018 by Vishal Doshi. It uses an AI-augmented platform to develop targeted cancer therapies. \n\n\n\n\nNice:\n The firm plans to go public through a merger with Mountain Crest, a US-based special purpose acquisition company. The transaction is expected to close in the first quarter of 2023 and reflects a pre-money valuation of US$400 million for the company, with around US$69 million in gross proceeds. \n\n\n\n\nIf we hold on together:\n The merged companies will operate under a new entity called Holdco, with Doshi as its CEO. Additionally, a representative from Mountain Crest will join Holdco\u2019s board of directors. \n\n\n\n\nSee also: \nAfter pandemic growth, Indonesian biotech startup tests post-Covid waters\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nRun baby run\n\nWith its latest seed funding round, \nRunchise\n, an Indonesia-based restaurant management platform, hopefully won\u2019t have to look back. Founded earlier this year, Runchise helps restaurant and franchise owners manage their stores in areas such as table arrangement, supply chain management, and point-of-sales processes.\n\n\nThe amount of funding was undisclosed, but Runchise has indicated that it plans to use it for hiring, product development, and marketing purposes.\n\n\n2\ufe0f\u20e3 \nAt the precipice\nGoTo Group\n is fast approaching the end of its IPO lockup period, which concludes on November 30.\n\n\nTo avoid a potential drop in stock prices should investors decide to sell their shares en masse, the group is in negotiations with major investors, including Alibaba and SoftBank, for a controlled sale of around US$1 billion worth of its stakes. It has also sought advice from Citigroup, Goldman Sachs, and local advisers on the potential stake sale.\n\n\n3\ufe0f\u20e3 \nNo waffling about\n\nWaffle, a Singapore-based customer relationship management platform for F&B businesses, is \nlooking to raise US$1.5 million\n in a seed funding round.\n\n\nFounded in 2020, the company provides point-of-sale and integrated loyalty program solutions for local businesses. Additionally, it provides a dashboard for business owners to generate real-time data and customized reports.\n\n\n4\ufe0f\u20e3 \nRegulate now, less pain later\n\nIn Singapore, a group of fintech players have \nlaunched a buy now, pay later code of conduct\n to ensure ethical practices and protect consumers.\n\n\nThe group is guided by the Monetary Authority of Singapore and is made up of the Singapore FinTech Association and fintech firms, including Atome, Grab Financial Group, ShopBack, Ablr, Latitude Pay, Pace, Split, and SeaMoney. Some of the measures include creditworthiness safeguards, transparent fees and clear disclosures, ethical marketing practices, voluntary exclusion by customers, and financial hardship assistance.\n\n\n5\ufe0f\u20e3 \nA full stomach\n\nThailand-based Infofed has \nsold off a majority stake\n to metaverse firm Translucia.\n\n\nThe deal size was not disclosed, although it is estimated to be an eight-figure sum in US dollars. Together, both companies plan to set up an esports boot camp to make Thailand into a regional hub and develop esports content for Translucia\u2019s metaverse.\n\n\n6\ufe0f\u20e3 \nA clean line of succession\n\nUnlike, say, \nHouse of the Dragon\n, Funding Societies, a Singapore-based fintech firm, announced the \nappointment of Chai Kien Poon as country head of Malaysia\n.\n\n\nHe will succeed Funding Societies Malaysia co-founder Wong Kah Meng, who\u2019ll now be the company\u2019s group COO. This means that Chai will be responsible for the company\u2019s day-to-day operations in the country as well as scouting for local partnerships and initiatives, while Wong will oversee Funding Societies\u2019 businesses across Malaysia, Singapore, and Thailand."}
{"title": "Taking stock of Vietnam\u2019s undervalued agritech sector", "body": "Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHi there,\n\n\nAs a kid, I spent most of my school summer breaks on my grandparents\u2019 poultry and crop farm in South India. This half-hectare property gave me a glimpse of what a farmer\u2019s life was like, and \u201cbackbreaking\u201d is the word that comes to mind.\n\n\nEvery day, my grandfather and uncle would wake up around 5 a.m. to feed the chickens and cattle and start work on the field. They would then inspect the crops and assess for damage due to pests or bad weather. It was heartbreaking when an entire crop of mangoes and cashews for the season were destroyed because of heavy rain.\n\n\nThose days seem to be in the distant past now, as more farmers today adopt agritech solutions that help automate tasks, monitor the environment, increase productivity, and reduce wastage of resources. Agritech startups have also gotten the attention of investors. In Indonesia, for instance, these players have seen an over 60% rise in funding amount till September 2022 to reach US$216.9 million, according to \nTech in Asia\n data\n.\n\n\nHowever, that doesn\u2019t seem to be the case for Vietnam, as my colleague Huong highlights in this week\u2019s Big Story. Only a handful of agritech startups in the country have raised external funding as they grapple with the slow adoption of technology among smallholder farmers, who are mainly concerned with domestic supply chain issues. Despite these challenges, investors see the promise in Vietnam\u2019s agritech.\n\n\nSpeaking of promise, our other Big Story shines a light on the earnings of e-scooter startup Neuron Mobility. My colleague Shadine wrote about the Singapore-based company, which posted a 2.3x revenue growth in 2021 and expanded its operations to 22 cities from just seven a year earlier. Although Neuron exited South Korea just months after it launched there, it has seen rapid growth in Australia, Canada, and the UK.\n\n\nAnother thing that\u2019s swiftly growing is the number of accelerators in Southeast Asia, which we take a deeper look at in this edition\u2019s Making Waves.\n\n\n\u2014 Collin\n\n\n\n\nTHE BIG STORIES\n\n\n1\ufe0f\u20e3 \nThe challenge and hidden potential of Vietnam\u2019s agritech sector\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nAgritech firms in the country face an uphill task to digitalize a fragmented industry.\n\n\n2\ufe0f\u20e3 \nNeuron Mobility\u2019s revenue doubles but losses widen\n\n\n\n\nPhoto credit: Neuron Mobility\n\n\n\n\nThe e-scooter firm exited South Korea in less than a year to focus on markets with high barriers to entry and low competition.\n\n\n\n\nMAKING WAVES\n\n\nAccelerators are not slowing down amid a funding winter\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nAn increasing number of accelerators are launching in Southeast Asia.\n\n\nThese new players are seeing soaring demand amid the funding winter.\n\n\nMore sector-specific niche programs have been introduced this year, especially in Web3.\n\n\n\n\nHere\u2019s our take:\n\n\nSoutheast Asia is in the midst of an accelerator renaissance. In the last three years, \nIterative\n, \nTechsauce\n, \nUpturn\n, \nVisa\n, and \nCradle\n were among the firms that rolled out their own accelerators in the region. Even US-based accelerator Techstars is targeting Singapore \u2013 it\u2019s looking to \nhire a managing director\n in the city-state.\n\n\nThese startup-building programs have always been sought after, but demand is set to skyrocket even during this funding winter.\n\n\nSingapore-based Iterative, which launched in 2020, says that it has been receiving double the number of applications per batch, with its last cohort getting 750 to 1,000 requests. Icetea Labs, which is based in both the city-state and Vietnam, rolled out an eight-week accelerator program in August. It attracted 259 applicants, but only six were chosen.\n\n\nThis rampant demand has been met with a series of new program launches. Creating such programs has become easier, as the pandemic cast a spotlight on digitally enabled conferences, making geography less of a hindrance.\n\n\nFurthermore, the diversification of startup verticals has driven up the need for more niche, sector-specific accelerators.\n\n\nWhether it\u2019s \nBlueChilli\u2019s\n Singapore healthtech accelerator, the \nFEW ESG\n accelerator, or the \nUOB Greentech\n accelerator, which all launched in Southeast Asia this year, these programs harness industry-specific skills to ensure that firms receive the most relevant guidance.\n\n\nHowever, the greatest influx of launches seems to have come from the Web3 industry. \nBNB Chain\n, \nCronos\n, \nBRI Ventures\n, and \nAnimoca Brinc Guild\n are among the newest accelerators in this ecosystem.\n\n\n\n\nImage credit: TImmy Loen\n\n\n\n\nThis is unsurprising as the Web3 industry is one of the most popular spaces for innovation and is still at a nascent stage.\n\n\n\u201cIn the crypto market, everything changes so quickly, so founders need the mindset to adapt to the change to be sustainable,\u201d \nThi Truong\n, Icetea\u2019s founder and CEO, tells \nTech in Asia\n.\n\n\nUnlike most programs, Icetea\u2019s accelerator asks startups for member fees instead of taking equity. Its goal is to bolster the ecosystem and create a network of applications to strengthen the Web3 economy.\n\n\nOther companies such as Google have undertaken the same mission. After rolling out its Circular Economy program this year, the tech giant is looking to develop innovative solutions across sectors.\n\n\nStarting with its Launchpad Accelerator, Google has since offered \nglobal initiatives\n focused on gaming, women-led firms, climate change, and voice AI, among others. Google does not take equity or charge any fees.\n\n\n\u201cStartups are seeing new opportunities in certain industries [but] find that they don\u2019t really have the know-how or the resources to capture that opportunity,\u201d says \nThye Yeow Bok\n, Google\u2019s head of startup ecosystem for Southeast Asia and South Asia.\n\n\nThe presence of these niche sector accelerators has resulted in founders joining multiple programs at a time.\n\n\nIterative co-founder \nHsu Ken Ooi\n observes how \u201cthere\u2019s a lot of accelerator-hopping in Southeast Asia,\u201d which is \u201ckind of unique\u201d to the region. Maybe it\u2019s common in other regions and around the world, but \u201cin the US, it\u2019s not a thing, you go to one or you go to none,\u201d he tells \nTech in Asia\n.\n\n\n\u201cEven though the programs are similar, there are founders who find different values in each accelerator. I\u2019ve even seen a lot of our entrepreneurs join many other accelerators,\u201d says \nSyifa Zakia\n, the Indonesia manager of Endeavor\u2019s ScaleUp Program.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nHowever, accelerators can be distracting to founders, especially when they\u2019re joining more than one. Since these events can last up to six months, they can take up valuable time that founders could be spending to run and build the company \u2013 crucial tasks in an economic downturn.\n\n\nPlus, as more accelerators require membership fees, founders may not have the funds to spare in these tough times.\n\n\nThese programs also allow accelerators to take large amounts of equity \u2013 from 5% to 10% \u2013 at a relatively low cost. This is cumbersome when entrepreneurs are still looking to raise more funding even as they join multiple programs.\n\n\nYet demand remains high regardless of the drawbacks, and these accelerators have no plans to scale back even amid the poor macro conditions. Sequoia\u2019s Surge and Endeavor\u2019s Scale Up, for example, will keep their current capacities. On the other hand, Icetea Labs is bullish: It expects applications to double and is planning to launch two cohorts next year from just one. Meanwhile Iterative aims to expand its cohort size from 19 to 30 startups.\n\n\n\u2014 Shadine\n\n\n\n\nFYI\n\n\nTwists and turns in Penang\u2019s tech ambitions\n\n\n\n\nThe state is known for its robust electrical and electronics sector but has trailed Kuala Lumpur in digital and tech investments.\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nCheck out \nTech in Asia\u2019s\n coverage of the emerging tech scene \nhere\n.\n\n\n1\ufe0f\u20e3 \nMatchday\n, a new venture focusing on European football founded by e-scooter startup Spin\u2019s founder Derrick Ko, has \nreceived backing from \nPlay Time\n the new investment firm of soccer legend Lionel Messi. Based in the US, Play Time seeks to invest in startups and teams that revolve around sports and tech. It is also an investor in football-focused startup AC Momento.\n\n\n2\ufe0f\u20e3 Singapore biotech firm \nAUM Biosciences\n is \ngoing public through a merger\n with US-based blank-check firm \nMountain Crest\n. The merger is expected to close in the first quarter of 2023 and will give AUM Biosciences a valuation of US$400 million.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n3\ufe0f\u20e3 Indonesian co-working startup \nCoHive\n has had its \ndebt payment obligations temporarily suspended\n by a court in Jakarta. If the East Ventures-backed firm can\u2019t pay back its creditors and reach an agreement with them by the time the ruling expires, the judge will declare the debtor bankrupt.\n\n\n4\ufe0f\u20e3 \nShift4Good\n, a VC fund dedicated to sustainable mobility, has announced the \nfirst close of its Fund I at US$98.2 million\n. In the next five years, it will back about 30 startups in their series A and B rounds, including firms in Southeast Asia.\n\n\n5\ufe0f\u20e3 IPO-bound \nZoomcar\n has announced a \nUS$10 million financing\n in connection with its SPAC merger with \nInnovative International Acquisition Corp\n, a US-based blank-check firm.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere\n.\n\n\nSee you next week!"}
{"title": "Twists and turns in Penang\u2019s tech ambitions", "body": "Mention Penang, and many will tell you that the island is a smorgasbord of the finest Malaysian cuisine. It\u2019s also home to a vibrant heritage tourism scene and is touted as the Silicon Valley of the East.\n\n\n\n\nPic credit: Penang Property Talk\n\n\n\n\nAmid the hype back in 2015, \nTech in Asia\n \nvisited\n the Malaysian state, located on the northwest coast of the peninsula.\n\n\nWe found out that the audacious claim checked out: It\u2019s home to 10 industrial parks, with a robust manufacturing sector that specializes mainly in semiconductors.\n\n\nWe also stumbled upon Khoo Kah Lee, a tech evangelist, who\u2019s also known as Curry. Curry was buoyant about Penang\u2019s chances of being the next best thing in the tech scene.\n\n\nFast forward to 2022, and we caught up with Curry again. This time, however, he sang a slightly different tune.\n\n\nOf burnouts and conflict\n\n\nHe tells us that between 2012 and 2016, he tried his best to put Penang\u2019s tech startup ecosystem on the map, but the efforts took a toll on his personal life. Further, Penang\u2019s state agencies became more involved in the picture, which led to conflict as their agendas \u201cwere not aligned\u201d with what he had envisioned, Curry says.\n\n\nThe self-styled tech community builder argues that, as Penang is a small state with a population of only 1.8 million people, \u201cit made no sense to have two groups, i.e., state vs non-state [actors] working on the same thing.\u201d\n\n\nSo Curry took a break. Now he\u2019s back and is eyeing Malaysia\u2019s capital, Kuala Lumpur, as the site of his next venture, which he says is in Web3.\n\n\nA few Malaysia-based investors we spoke to also tell us that despite Penang\u2019s strong electrical and electronics sector and large multinational companies, the state has been struggling to replicate that success downstream, that is, on the digital and software side of things.\n\n\nThe burden of getting those segments up and running right now is on the shoulders of Tony Yeoh, CEO of Penang Digital, which is one of two state agencies working on luring talent and money back to the state. The other entity is InvestPenang.\n\n\nYeoh tells \nTech in Asia\n that the three agencies go about their job quite differently. While Digital Penang has been tasked with bringing in more software-related investments, InvestPenang is focused on attracting manufacturing investments.\n\n\nDigital Penang and InvestPenang also work together with separate counterparts at the federal level. In Malaysia, there are two tiers of government: federal and state. Typically, federal agencies, with headquarters in Putrajaya or Cyberjaya, liaise with their state counterparts to drive investors to regions outside Kuala Lumpur.\n\n\nIn this case, Digital Penang works with the Malaysia Digital Economy Corporation (MDEC) while InvestPenang collaborates with the Malaysian Investment Development Authority.\n\n\nDigital Penang is looking to attract investors with \u2013 among other things \u2013 a grant. Its state counterpart will match that up to 1 million ringgit (US$238,000).\n\n\n\n\nThe Creative Digital District Sandbox in Wisma Yeap, George Town. / Photo credit: Digital Penang\n\n\n\n\nDigital Penang has also designated a creative digital district called CD Square in the state capital of George Town, where startups can run sandboxes.\n\n\nBorn privileged\n\n\nCurry was definitely on to something. Penang\u2019s main advantage is that it\u2019s a magnet for foreign direct investment. The boom began in the 1970s when Malaysia embarked on rapid industrialization by luring global manufacturers to set up shop in the country.\n\n\nPenang was a choice destination due to its English-speaking workforce and its connectivity with its strong port and logistics sector \u2013 strengths that the state inherited from its British colonizers.\n\n\nThe move to industrialize Malaysia saw Penang drawing in the \u201cEight Samurai\u201d: Robest Bosch, Intel, Clarion, Advanced Micro Devices (AMD), Hewlett-Packard (now Keysight Technologies and Agilent Technologies), Litronix (now Osram Opto Semiconductors), Hitachi (now Renesas Electronics) and National Semiconductor.\n\n(after being acquired by Texas Instruments, National Semiconductor no longer operates in the state.)\n\n\nToday, Penang accounts for about 5% of global semiconductor exports, \naccording\n to the Department of Statistics Malaysia and United Nations Comtrade database. Last year, the state \napproved\n 76.2 billion ringgit (US$16.12 billion) in manufacturing investments, which make up 39% of the country\u2019s total investments in the sector.\n\n\nThis has had a spillover effect: Local semiconductor companies were established and some are now as large as multinational firms. Examples include Bursa-listed firms ViTrox and Inari Amertron.\n\n\nIt also sparked a tech-savvy entrepreneurial class. An oft-cited example of this is Jobstreet, which was founded in Penang by Mark Chang in 1997. The firm became a regional jobs platform and went on to list on Bursa Malaysia in 2004. Australian internet job recruitment company Seek acquired Jobstreet in 2014.\n\n\nDespite producing Jobstreet and a few other household names such as Piktochart, the state has found little success \u2013 at least few that have made headlines.\n\n\nDemographic shifts and other challenges\n\n\nTech community builder Curry notes that he and his peers have been able to lay the foundation for local startups but the ecosystem still lacks certain important parts. He highlights three of them: talent development, venture capitalist funding and mentors.\n\n\nPenang-based players that \nTech in Asia\n spoke to flagged several bottlenecks in the state. Firstly, the large multinationals and local tech giants pay well. Even interns can make as much as 3,000 ringgit (US$635) a month at these firms.\n\n\nSecondly, young founders have their eyes on Kuala Lumpur or Singapore. An example is EasyBook, whose founder is from Penang. The company even has some 90 staff in the state but its headquarters is in Singapore. Drone solutions firm Aonic (formerly known as Poladrone) was also founded in Penang but moved to Cyberjaya, Kuala Lumpur.\n\n\nThirdly, there is a gap between investors, regulators, and startups as most of the big names are in the Malaysian capital. While founders agree that a lot can be done online such as meetings and pitches, \u201cit still remains easier to connect and network when such events are done face-to-face,\u201d one investor tells us.\n\n\nPlugging into a wider ecosystem\n\n\nSivavenayakam Velayutham, the managing director of Penang-based incubator 25 Startups, is trying to bridge that gap. He believes that Penang has to first plug into the national startup ecosystem.\n\n\nSiva tells \nTech in Asia\n that he is hoping to connect different states across Malaysia. \u201cSo what we\u2019ll see is a Penang startup, for example, can have their investments from Johor or land pilot projects in Sarawak, for example.\u201d\n\n\nHe has tested the concept. Siva helped convince Sarawak-based IT company Karuna Sarawak to set up an incubator in Penang.\n\n\nOther Penang-based tech veterans such as Exabytes founder Chan Kee Siak are also reinvesting in the local startup ecosystem.\n\n\nExabytes was founded in 2001, and Chan says that the scene has come a long way since. The web-hosting company is still headquartered in Penang but has a sales office in Kuala Lumpur.\n\n\nChan has already invested in two firms: integrated logistics company EasyParcel and edtech startup Forward School.\n\n\nHe tells \nTech in Asia\n that Penang remains attractive due to lower operational and living costs than Kuala Lumpur.\n\n\nDigital Penang\u2019s Yeoh notes that despite having a weaker ecosystem than the Malaysian capital, Penang is \u201cseeing talent moving back.\u201d\n\n\n\n\nPhoto credit: Forward School\n\n\n\n\nSome millennials \u2013 like Forward School founder Howie Chang \u2013 are already trying to strike it out. He believes there are still opportunities to exploit, given the widespread presence of multinationals in the state.\n\n\nForward School offers everything from boot camps to a two-year diploma in applied software engineering called NitroDegree. The latter is a program accredited by Malaysia\u2019s human resources ministry and comes with a job guarantee for graduates.\n\n\nChang also says that despite being away from Kuala Lumpur, he had had no issues engaging federal agencies, such as MDEC, thanks to the nature of his business. Forward School has also obtained a loan from Malaysia Debt Ventures, a federal agency as well.\n\n\nYeoh also says that Digital Penang is aligned with MDEC and its federal counterparts, despite the Penang and the federal governments being led by two different political coalitions. He is even on the board of MDEC\u2019s grant recommendation committee. Other tech agencies such as Cradle and Mranti have collaborated with Digital Penang to run various programs and sandboxes.\n\n\nSystemic advantages and risks\n\n\nThere are other structural tailwinds: After Kuala Lumpur, Penang will be equipped with 5G connectivity throughout the island next year. Malaysia recently \nlaunched\n a digital nomad pass that allows remote workers to set up shop in select destinations nationwide, including Penang.\n\n\nHowever, Skeptics flag that too many of the policies are led by politicians. Digital Penang\u2019s chairman, for example, is the state\u2019s chief minister, Chow Kon Yeow. Investors we spoke to are divided over the level of state involvement in the startup scene. Some are calling for less government involvement, with a focus on policymaking, though others are fine with it.\n\n\nPenang\u2019s state government will surely be offered the chance to prove itself. Malaysia\u2019s general election is coming up this year, and Penang will also hold state elections next year. The state has also put next year\u2019s budget on hold to accommodate both elections.\n\n\nPenang\u2019s digital agenda will be on the line as the outcomes will determine whether the state will continue to pursue its startup agenda with greater funding and better leadership or leave it behind and move on to something else."}
{"title": "Funding Societies Malaysia names co-founder as group COO, appoints new country boss", "body": "Funding Societies,\n a Singapore-based fintech firm, announced the appointment of \nChai Kien Poon\n as country head of Malaysia. He will succeed Funding Societies Malaysia co-founder \nWong Kah Meng\n, who\u2019ll now be the company\u2019s group COO.\n\n\n\n\nFunding Societies\u2019 Chai Kien Poon (left) and Wong Kah Meng / Photo credit: Funding Societies\n\n\n\n\nPreviously, Chai served as head of strategic projects and operations for Funding Societies, Malaysia. As country head, he will be responsible for the company\u2019s day-to-day operations in the country as well as scouting for local partnerships and initiatives.\n\n\nMeanwhile, Wong will now oversee Funding Societies\u2019 businesses across Malaysia, Singapore, and Thailand.\n\n\n\u201cWe have built ourselves a strong foundation since our inception in Malaysia in 2017, and I am excited to forge the future with the team as we continue to expand our products and services and extend our reach in the SME fintech landscape,\u201d said Chai.\n\n\nSee Also: \nFunding Societies swipes right on payments in SEA\n\n\nThe appointment comes after Funding Societies raised \nUS$50 million\n in debt funding from\u00a0HSBC Singapore. The company also\u00a0\nraised US$144 million\n earlier this year in a round led by SoftBank Vision Fund 2."}
{"title": "Indonesia\u2019s Kopi Kenangan opens first international store in Malaysia", "body": "Kopi Kenangan\n, an Indonesia-based coffee tech startup, has opened its first international store in Suria KLCC, a shopping mall in Malaysia. The company uses the brand Kenangan Coffee for the store, which will be carried by all of its branches outside Indonesia.\n\n\n\n\nKopi Kenangan co-founders Edward Tirtanata (left) and James Prananto / Photo credit: Kopi Kenangan\n\n\n\n\nBy the end of this year, Kopi Kenangan plans to open four more stores in Malaysia, specifically in MyTown Cheras, Pavilion Kuala Lumpur, NU Sentral Kuala Lumpur, and Sunway Pyramid Petaling Jaya. The company has also built an employee training center called Kenangan Academy in Uptown Petaling Jaya.\n\n\nIn May, CEO \nEdward Tirtanata\n told \nTech in Asia\n that the firm would \nopen its first store\n outside Indonesia this year. He added that the company aims to enter two or three countries in Southeast Asia soon.\n\n\nFounded in 2017 by Tirtanata, \nJames Prananto\n, and \nCynthia Chaerunnisa\n, Kopi Kenangan offers an app where users can order coffee. They can opt to pick up their drinks at the company\u2019s stores or have their beverages delivered.\n\n\nThe coffee chain currently has more than 850 stores in 64 cities across Indonesia. It has also expanded its offerings by introducing bread brand Cerita Roti, chicken-based snack brand Chigo, and soft-cookie brand Kenangan Manis.\n\n\nIn December 2021, Kopi Kenangan achieved unicorn status after it raised \nUS$96 million\n in the first close of its series C round.\n\n\nSee also: \nKopi Kenangan\u2019s return to profits after a year in the red"}
{"title": "Malaysia\u2019s $100m startup funding in doubt as elections loom", "body": "The Malaysian government had set aside about 467 million ringgit (US$100.4 million) for tech and startup financing next year, but that amount could be revised as the country heads to the polls.\n\n\n\n\nFinance Minister Tengku Zafrul Tengku Aziz tabling the 2023 federal budget / Photo credit: Malaysia\u2019s Printing and Publications Department\n\n\n\n\nThe country\u2019s finance minister, Tengku Zafrul Tengku Aziz, unveiled the allocation at last Friday\u2019s tabling of the 2023 federal budget.\n\n\nHere\u2019s a breakdown of the allocation:\n\n\n\n\n364 million ringgit (US$77.9 million) for \u201cresearch and development\u201d under the education and science, technology, and innovation ministries\n\n\n50 million ringgit (US$10.7 million) for Cradle Fund, the coordinating agency of Malaysia\u2019s startup ecosystem\n\n\n10 million ringgit (US$2.1 million) for a venture capital fund to finance high-tech companies in the electrical and electronics industry as well as the renewable energy sector via an equity injection\n\n\n20 million ringgit (US$4.3 million) for Mranti Technology Park, the country\u2019s research and innovation accelerator, to focus on developing health technology and smart manufacturing\n\n\n16 million ringgit (US$3.4 million) to state agency NanoMalaysia for the development and commercialization of nanotechnology\n\n\n7 million ringgit (US$1.5 million) for Malaysia Techlympics 2023, a series of coding competitions for young Malaysians that tackle themes ranging from AI to sustainable innovation\n\n\n\n\nPrime Minister Ismail Sabri Yaakob, however, announced the dissolution of parliament on Monday after getting consent from the king on Sunday.\n\n\nConventionally, a caretaker government can still push ahead with plans agreed upon before the dissolution. But only a new government can table the 2023 budget. This means the sum set aside for tech could either be retained or revised as the budget wasn\u2019t passed in parliament.\n\n\nIsmail Sabri\u2019s government had set aside a total of 372.3 billion ringgit (US$79.9 billion) for next year. Financial and political analysts speaking to \nTech in Asia\n noted that as the general elections neared, the budget was like a \u201ccarrot\u201d dangled in front of beneficiaries ranging from large businesses and startups to poor households.\n\n\nFollowing Malaysia\u2019s constitution, a general election has to be called within 60 days after announcing the dissolution of parliament.\n\n\nIsmail Sabri \nsaid\n that if his coalition party Barisan Nasional (BN) won the polls, the proposed initiatives would continue to be implemented.\n\n\nBut one political analyst told \nTech in Asia\n that even if BN wins the election, this may be easier said than done.\n\n\nTypically, the coalition with the largest number of parliamentary seats will decide who will lead the country in the next five years. That person is usually the president of the winning bloc or the one who commands the biggest support from his peers.\n\n\nIf BN doesn\u2019t win with a supermajority or Ismail Sabri is not appointed prime minister, federal allocations for next year\u2019s budget are subject to change or revision.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.67 ringgit"}
{"title": "Addressing ESG concerns in Malaysia\u2019s glovemaking industry", "body": "While much of the world is starting to treat Covid-19 as endemic, the demand for medical equipment, including rubber gloves, is expected to continue growing.\n\n\nYet, Malaysia\u2019s leading glovemakers are faced with declining revenues and share prices. On top of this, they have to deal with stakeholders who are increasingly focused on compliance with \nESG\n considerations.\n\n\nPerhaps, they can look to M\u00f6lnlycke for inspiration. The Swedish medical products and solutions company only has four factories in Malaysia, compared to over 70 collectively for the country\u2019s leading players. Yet, M\u00f6lnlycke is taking a proactive role in using tech to ensure compliance with ESG guidelines.\n\n\nSupply-demand imbalance\n\n\nThe Malaysian Rubber Gloves Manufacturers Association (MARGMA) \nestimates\n\u00a0global demand for gloves in 2022 at about 399 billion pieces, 11% higher than the previous year. It expects the number to grow by around 12% to 15% more in 2023.\n\n\n\n\nMalaysia alone accounts for about 65% of the world\u2019s rubber glove production, which translates to 259 billion pieces.\n\n\nHowever, others are less sanguine about the industry\u2019s prospects. RHB Invest analyst Chun Sung Oong stated in a \nresearch note\n\u00a0that the bank expects growth of global demand for rubber gloves to remain sluggish at 4% to 6% in 2023 and 2024. Further, he noted the \u201cpersistent imbalance in the demand-supply dynamic,\u201d with high levels of inventory needing at least a year to normalize.\n\n\nThese imbalances have affected the country\u2019s top four glove manufacturers \u2013 Top Glove Corporation, Kossan Rubber Industries, Hartalega Holdings, and Supermax Corporation \u2013 which saw their revenues collectively decline by US$782 million, or 57%, over the past year.\n\n\n\n\nSimilarly, total profit for these four companies has shriveled from US$496 million to US$38 million over the last year, a decrease of 92%.\n\n\nThese poor results have been reflected in the firms\u2019 share prices. Year-to-date, they are down between 42% to 73%.\n\n\n\n\nSustainability efforts may help rein in expenses\n\n\nStill, MARGMA remains optimistic, with president Supramaniam Shanmugam stating that the supply-demand imbalance will reach equilibrium within \nsix to nine months\n, compared to Oong\u2019s more conservative estimate of at least one year.\n\n\nWhile these conditions usually push companies to narrow their focus, it remains imperative that glovemakers continue to work toward sustainability, especially since the higher cost of energy is a major factor in their operating expenses.\n\n\nThe process of glove manufacturing involves using vulcanizers, which heat the gloves as part of the curing process. Heating of any form makes up \ntwo-thirds\n\u00a0of the energy demand of industrial companies around the world.\n\n\n\u201cOn the environmental side, getting access to renewable energies and the investments made by governments to help companies get access to renewable electricity or biogas is a bit of a challenge,\u201d says Jean-Christophe Guillou, M\u00f6lnlycke\u2019s vice president of global operations and sourcing for gloves, who is based in Malaysia.\n\n\n\n\nJean-Christophe Guillou, M\u00f6lnlycke\u2019s vice president of global operations and sourcing for gloves / Photo credit: M\u00f6lnlycke\n\n\n\n\nHe tells \nTech in Asia\n that, aside from Singapore, the development of renewables and access to green energy in Southeast Asia is \u201cbelow what you can get in Europe, as well as a few South American countries.\u201d\n\n\nTech plays major role in compliance\n\n\nWhen it comes to addressing the challenges and working to comply with ESG guidelines, Guillou says that tech plays a major role when it comes to data collection.\n\n\n\u201cThe tech makes it easier for our people to get their work done and is also a key part that helps us meet ESG goals,\u201d shares Guillou. He adds that the company taps experts and third-party systems for its operations.\n\n\n\u201cM\u00f6lnlycke invests quite extensively in building management systems, which allows us to get the data we need through the arrays of sensors in use. We see where energy is most used and if there are any loose ends, so we can perform preventive maintenance,\u201d he explains.\n\n\nFor example, the company uses sensors to measure its vulcanizers for temperature and energy usage.\n\n\n\u201cIf there is a sudden energy spike, we need to check the machines, as the sudden increase in energy used means there may be something wrong,\u201d says Guillou. He adds that glove production uses a lot of energy and water due to the need to chill and heat the materials at different stages.\n\n\nHe also says that M\u00f6lnlycke\u2019s new factory in Kedah \u2013 its fourth in Malaysia \u2013 has a fully digitized waste-water treatment plant attached to it as well as a building management system that monitors energy usage. The data feeds to a single dashboard for ease of oversight and control.\n\n\n\n\nMonitoring dashboard in use / Photo credit: M\u00f6lnlycke\n\n\n\n\nGuillou shares that the industry also sees challenges in bringing on suppliers that are themselves ESG-compliant. This involves not only the suppliers providing raw materials to the plants but also those in charge of sourcing workers to man those plants.\n\n\nHowever, in his capacity as a board member of the Association of Malaysian Medical Industries, Guillou notes that most glove manufacturers have strict guidelines on ethical issues. The association also discusses governance affairs, which the companies themselves are already highly aware of, especially with the attention the US Customs and Border Protection has paid to the \nissue\n\u00a0of alleged forced labor.\n\n\nCan local players keep up?\n\n\nHowever, with profit margins looking depressed in the face of losses from eroding average selling prices, it is uncertain if Malaysia\u2019s local glovemakers will be able to fully commit the investment required to reach their ESG goals.\n\n\nYet, this is also a time when consumers are placing greater priority on the sustainability aspect of the goods they use \u2013 to the point of being willing to \nspend more\n\u00a0for sustainable products. More companies and nations have also pledged to answer the call of the United Nations\u2019 Sustainable Development Goals, which include ESG compliance.\n\n\nThe stronger consumer focus on sustainability means that ESG benchmarks are now \u201ckey in [the] valuation of glovemakers,\u201d \naccording\n to Chua Siu Li, an analyst at Public Investment Bank.\n\n\n\u201cMore can be done or improved on, especially since the industry has a goal to reduce carbon emissions to 50% by 2030 and be carbon neutral by 2050. But to reach that goal, people need to accelerate investments,\u201d says Guillou.\n\n\n\u201cEven if some of the investments made to reduce carbon emissions do not have the greatest financial return on investment, that\u2019s the only way to decarbonate, and you go for it. Sometimes you don\u2019t save money, but it reduces your carbon emissions,\u201d he adds.\n\n\nMalaysian glove manufacturers have already been taking steps to invest in ESG compliance. Among the top four companies in the industry, alternative energy sources and systems are being integrated into both new and existing facilities, such as the use of solar panels to supplement energy needs or, in Supermax\u2019s case, the use of \nbiomass boilers\n\u00a0instead of fossil fuel burners.\n\n\nTop Glove has also been \nrecognized\n\u00a0by this year\u2019s Dow Jones Sustainability Index for its sustainability efforts. The firm is targeting a 25% reduction in carbon emission intensity overall while aiming for zero carbon emissions at its offices and warehouses by 2025.\n\n\nHartalega and Kossan are also \nfounding members\n\u00a0of the Responsible Glove Alliance, a body for the protection of worker rights established in March. This is a positive and visible step in terms of regulation within the industry, especially in light of the forced labor allegations that led to Top Glove and Supermax being issued Withhold Release Orders by the US Customs and Border Protection. However, while Top Glove has been given the all clear, the order against Supermax, which was issued in October 2021, remains in effect.\n\n\nSupermax was also recently \nplaced under observation\n\u00a0for allegations of human rights violations by Norges Bank Investment Management, which manages Norway\u2019s Government Pension Fund Global, the world\u2019s largest sovereign wealth fund. The Malaysian firm denied the allegations, saying that it has already implemented measures to improve living and working conditions.\n\n\nAs much as the industry and its players have made great strides, more needs to be done to bring the Malaysian glove production industry up to the exacting ESG standards of the United Nations\u2019 sustainable development goals. The sector also needs those same stakeholders to step up their game, especially in how these firms are investing their time and resources \u2013 not to mention funds \u2013 in meeting their ESG targets."}
{"title": "What drove Carsome into the layoff lane?", "body": "Welcome to The Checkout! Delivered every Thursday, this free newsletter breaks down the biggest stories and trends in ecommerce. View past issues \nhere\n or \nsign up here\n to receive future newsletters.\n\n\nHi there,\n\n\nThe struggle of tech companies in 2022 is real, and used-car marketplaces have not been spared.\n\n\nIn 2020, many vehicle ecommerce startups in Southeast Asia and India drove their way into the unicorn club after raising large amounts of money. The Covid-19 pandemic contributed to their rise due to consumers\u2019 fears of public transport.\n\n\nBut fast forward to 2022, with high inflation and an economic downturn, these companies are suddenly in the slow lane.\n\n\nBecause of thin margins and cash burn, growth has taken a backseat for now. Most of the used-car marketplaces are taking prudent measures to weather the storm.\n\n\nIn India, SoftBank-backed \nCars24 let go of 600 employees\n earlier in May, while Droom \npostponed\n its IPO plans.\n\n\nRecently, Malaysia\u2019s Carsome announced that it was \nlaying off 10% of staff\n as well as forgoing leadership pay for the rest of 2022. The company earlier this year raised US$290 million, which supposedly put it in a better cash position than its counterparts.\n\n\nSo what went happened with the Malaysian unicorn?\n\n\nIn the Big Story this week, my colleagues Putra and Emmanuel dig deeper into the financials of the company to answer that question.\n\n\nSpeaking of cost-cutting measures, Shopee has done a lot of those lately. Last week, its retrenchment extended to Malaysia, Taiwan, and the Philippines, where it also faced an unexpected social media backlash.\n\n\nOur Hot Take attempts to explain when or whether we can expect an end in sight for Shopee\u2019s string of bad news.\n\n\n\u2013 Samreen\n\n\n\n\nTHE BIG STORY\n\n\nWhy did Carsome lay off 10% of staff? We dig into its finances for clues\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe Malaysian unicorn says that it remains \u201con target\u201d to break even in group-level EBITDA over the next few quarters.\n\n\n\n\nTHE HOT TAKE\n\n\nIs there an end in sight to Shopee\u2019s current woes?\n\n\n\n\nPhoto credit: Shutterstock\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nLast week, Shopee users in the Philippines stormed social media platforms like Twitter and Facebook, calling others to \nuninstall and delete the app\n after the company chose controversial Filipino celebrity \nToni Gonzaga\n as its latest brand ambassador.\n\n\nPeople questioned the timing, as Gonzaga was hired at roughly the same time that Shopee was laying off staff in the country.\n\n\nShopee\u2019s latest rounds of cost-cutting measures also hit employees in Taiwan and Malaysia.\n\n\n\n\nHere\u2019s our take:\n\n\nLately, many tech companies have laid off workers. However, Shopee\u2019s layoffs, which came market after market as opposed to one at a time, has undoubtedly lowered morale in the company.\n\n\nDuring its Q2 results, Sea announced that it would be \u201cprioritizing profitability and cash flow management.\u201d All these steps are being taken to achieve this goal, as the company suffered losses of nearly US$1 billion during the quarter.\n\n\nStill, some analysts are not expecting the company to break even in 2023.\n\n\nWith inflation-induced cost surges \u2013 such as soaring logistics fees due to rising fuel prices \u2013 and the reduction of consumer spending in many of its key markets, growth might be hard to come by, pointed out \nJianggan Li\n, founder and CEO of Momentum Works.\n\n\nSee also: \nAs gas prices soar, SEA logistics players brace for impact\n\n\nHowever, he told \nTech in Asia\n that the firm\u2019s cash balance at the group level would be enough to sustain the company for more than three years based on its levels of cash burn for Q2 2022.\n\n\nAccording to\u00a0\nKe Yan\n, head of research at DZT Research, \u201cShopee has a window of about one year to prove to investors its ability to make profit for ecommerce.\u201d\n\n\nIn the early days, as Shopee was expanding, Sea could use profits from its gaming arm, Garena, to subsidize losses in ecommerce. However, Garena\u2019s profits have been in decline, with adjusted \nEBITDA\n falling in each of the past four quarters.\n\n\nTo compound matters, Sea is obliged to set aside \nS$1.5 billion\n as paid-in capital for MariBank, its Singapore digital bank. It will also have to invest in MariBank and its other digital banks in the region. Sea\u2019s ability to support Shopee is thus much more constrained than in the past.\n\n\nAnother issue is whether the current macro environment will improve at all.\n\n\n\u201cMore drastic measures might be needed if the crisis lasts much longer than anticipated. But so far, the management seems to be prudent, although the communications could have been better,\u201d added Li.\n\n\nAs Shopee\u2019s pandemic-led growth wanes, and as rivals Lazada and \nTikTok Shop\n make their moves, Shopee\u2019s current position as the ecommerce market leader in Southeast Asia is clearly shaking. It needs to break out of the mold.\n\n\n\u2013 Samreen & Simon\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nCheck out \nTech in Asia\u2019s\n coverage of the ecommerce scene \nhere\n.\n\n\n1\ufe0f\u20e3 \nNaver\n, South Korea\u2019s leading internet company, is \nacquiring\n secondhand goods marketplace Poshmark for US$1.2 billion. Naver is also an investor in classifieds marketplace unicorn Carousell.\n\n\n2\ufe0f\u20e3 \nMeesho\n, a Meta-backed Indian ecommerce platform, has received \nUS$192 million\n from its US-based parent firm, Meesho Inc.\n\n\n3\ufe0f\u20e3 \nShopBack\n has entered into a subscription agreement to raise \nUS$80 million\n in the second tranche of its series F round from 65 Equity Partners.\n\n\n4\ufe0f\u20e3 \nCosmart\n, an Indonesia-based ecommerce firm, has raised \nUS$5 million\n in seed funding from Lightspeed, East Ventures, and Vertex Ventures Southeast Asia & India.\n\n\n5\ufe0f\u20e3 Indonesian ecommerce firm \nBlibli\n has \nresubmitted\n an application to go public.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere\n."}
{"title": "Why did Carsome lay off 10% of staff? We dig into its finances for clues", "body": "Emmanuel Samarathisa also contributed to this report.\n\n\nWhen Carsome \nannounced\n last week that it was laying off 10% of staff as well as forgoing leadership pay for the rest of 2022, it might have come as a surprise to some.\n\n\nMalaysia\u2019s first tech unicorn has raised a total of US$567 million in disclosed funding, including a massive \nUS$290 million haul\n announced in January 2022, according to \nTech in Asia\n\u2019s database. It counts several blue-chip names among its backers such as Gobi Partners, Asia Partners, and Catcha Group.\n\n\nLately, Carsome still appeared to go from strength to strength. It poached senior executives from AirAsia parent Capital A, made a number of acquisitions (including \na US$200 million deal\n to acquire iCar Asia and take it private), and gained an elusive \ndigital banking license\n in Malaysia as part of a consortium.\n\n\nJust in August, Carsome \nannounced\n that it had reached 18,000 cars sold monthly across its four core markets to celebrate its seventh anniversary.\n\n\n\n\nPhoto credit: Carsome\n\n\n\n\nIt even filed for a dual listing in Singapore and the US earlier this year, though that has been \nscrapped\n for the moment.\n\n\nBut a look at Carsome\u2019s financial statements for its 2021 financial year hints that the company\u2019s approach to growth may have caught up with it.\n\n\nIn a statement provided to \nTech in Asia\n, Carsome Group says that \u201cwe have made decisive changes in organizational design, commercial policy, as well as branding strategy to accelerate our group-wide profitability plan in the next few quarters.\u201d\n\n\nThe company adds that it is \u201csupported by our strong financial resources and the full backing of our shareholders as well as banking partners,\u201d and remains \u201con target to break even in group-level \nEBITDA\n\u201d in the next few quarters.\n\n\nBig revenue but thin margins\n\n\nIn his email to staff, Carsome co-founder and CEO Eric Cheng attributed the layoffs to the global economic slowdown, which many other tech firms have been grappling with this year.\n\n\nSee also:\u00a0\nTracking layoffs across Asia\u2019s startup ecosystem (Updated)\n\n\nCheng also notes that the company\u2019s top priority is \u201caccelerating our group profitability plan and [achieving] positive EBITDA within the next few quarters.\u201d\n\n\nLast month, \nTech in Asia\n reviewed \nCarsome\u2019s financial statements\n for the financial year ending December 31, 2021, in which we highlighted that its revenue doubled to US$656 million compared to the previous year, while its net cash used in operating activities stood at negative US$114 million.\n\n\n\n\nThe pandemic had not dampened the growth of either \nCarsome\n or \nCarro\n, both of which notched new records during that time. For some used-car dealers in Kuala Lumpur, these platforms even provided a lifeline, \nas we reported previously\n.\n\n\nBut the used-car business has thin margins. This is partly because dealers and marketplaces work as middlemen \u2013 they buy a used car at X price and sell them at Y price. The difference between the two prices makes up the margin.\n\n\nThis point is particularly evident in gross profits. Carsome primarily earns its revenues from selling used cars, but if we subtract the acquisition costs of vehicles sold (i.e., cost of goods sold), the firm has a gross profit of US$36.6 million, which is just 5.6% of its revenue figures.\n\n\n\n\nThat puts its operating expenses in a new light. For instance, the gross profit would not be enough to cover its employee benefits expenses (US$34.8 million) and would barely cover advertising and marketing (US$28.8 million).\n\n\nTo be fair, Carsome \nnoted previously\n that a sizable chunk of its losses for FY 2021 was caused by accounting adjustments that are non-cash expenses and unrelated to the company\u2019s operational performance.\n\n\nExcluding fair value adjustments, non-cash items, and non-operational corporate costs, a spokesperson told \nTech in Asia\n at the time that Carsome\u2019s 2021 operating EBITDA was in line with the previous year\u2019s EBITDA margin.\n\n\nHefty acquisitions\n\n\nThe next question for Carsome\u2019s financials revolves around its cash burn and runway.\n\n\nAccording to its cash flow statement, its net cash used in operating activities totaled US$114 million. That translates to US$9.5 million per month.\n\n\n\n\nAssuming all of its revenue and expenses hold steady in 2022, that means Carsome\u2019s war chest could provide a three-year runway.\n\n\nBut it has likely spent some cash this year in its acquisition spree.\n\n\n\n\nAssuming the remainder of Limousine and Car Transport\u2019s acquisition has been paid out, Carsome would be left with US$190 million in cash and cash equivalents after these acquisitions. That brings its estimated runway down to 20 months \u2013 a little under two years.\n\n\nWhile it\u2019s unclear whether these businesses are already profitable, it\u2019s possible that the acquisitions would also present additional operating expenses for Carsome, thus leading to a higher cash burn. The company has also expanded its \nMalaysia headquarters\n, where it will double its local investment (though it\u2019s unclear whether Carsome has followed through on this).\n\n\nWhat\u2019s next\n\n\nIn August, \nMalaysia Gazette\n reported that \nover 50 Carsome customers\n who had sold their cars to the platform had to wait around three days for their money to be disbursed. Typically, it took one to three hours.\n\n\nThe IPO could have provided more runway \u2013 Carsome is said to have aimed to raise \nUS$400 million\n at a US$2 billion valuation from the dual listing. But at this point, the prospects are hazy at best.\n\n\nStill, it\u2019s undeniable that Carsome, along with rival Carro, are leaders in a potentially lucrative space. Based on our \nprevious calculations\n, even if these marketplaces reach just 15% of Southeast Asia\u2019s growing used-car market, they could generate a revenue of a little over US$7 billion \u2013 multiples of what these players are making today.\n\n\n\n\nCarsome co-founder and group CEO Eric Cheng / Photo credit: Carsome\n\n\n\n\nThe key focus moving forward for Carsome, perhaps, is to double down on areas beyond the car transactions themselves \u2013 especially those that can contribute to topline revenue with minimal costs \u2013 while keeping expenses low.\n\n\nFinancing is one example, which Carsome already does. Venture builder Momentum Works \nnoted\n that similar players in China went through a tough time early in the pandemic, and the lesson there is to not \u201cburn for growth.\u201d\n\n\nWould its digital banking consortium provide a way out? Indeed, in its statement, Carsome Group says that it will continue to work with its digital banking partners on a pilot program and are \u201con track with the launch date.\u201d"}
{"title": "Malaysian graftbuster probes MDEC over $4.9m in false claims", "body": "The Malaysia Digital Economy Corporation (MDEC) is being investigated by the country\u2019s anti-corruption commission (MACC) over false claims worth more than 23 million ringgit (US$4.9 million).\n\n\n\n\nTwo former MDEC officials (in orange) were brought to court to face charges in approving millions in false claims. / Photo credit: MACC\n\n\n\n\nNational newswire \nBernama\n first \nreported\n the matter on September 23 but did not reveal the name of the government agency.\n\n\nSources close to the situation, however, told \nTech in Asia\n that the entity concerned was MDEC and the investigations involve the agency\u2019s sharing economy department, among other concerns.\n\n\nAn MDEC spokesperson confirmed the matter with \nTech in Asia\n but added it could not comment due to the ongoing probes.\n\n\nThe anti-graft agency\u2019s investigation is centered upon two undisclosed companies that were paid claims by MDEC amounting to more than 19 million ringgit and more than 7 million ringgit to run training programs from 2016 to 2020.\n\n\nClaims were made and approved even though no training was conducted.\n\n\nEight individuals from the agency and companies involved have been remanded by the MACC so far, according to \nBernama\n."}
{"title": "Grab to launch digibank in Malaysia, Indonesia in 2023", "body": "Grab aims to roll out its digibank in Malaysia and Indonesia next year, the \ncompany\n\u00a0said. The announcement follows \nthe launch of GXS Bank\n, a digibank it formed in partnership with Singtel, in Singapore last month.\n\n\n\n\nPhoto credit: Grab\n\n\n\n\nBank Fama International will serve as the foundation for the digibank it plans to establish in Indonesia. Grab will build the digibank in partnership with Singtel and Emtek Group.\n\n\nGrab and Singtel previously \ninvested US$70 million\n in Bank Fama, each getting a 16.26% stake in the bank. In addition, Indonesian conglomerate Emtek Group controls 62.8% of Bank Fama\u2019s shares.\n\n\nMeanwhile in Malaysia, GXS Bank \u2013\u00a0a joint venture between Grab and Singtel \u2013 \nwon a digital bank license\n from Bank Negara Malaysia in April. The joint venture will own 55.5% of the proposed digital bank, subject to regulatory approval.\n\n\nSee also: \nGrab\u2019s financial arm takes center stage at its investor day\n\n\nGrab was also \nrumored\n to be in talks to buy a majority stake in Malaysian banking group AMMB Holdings (AmBank). However, the super app said it could not comment on \u201crumors or speculations.\u201d\n\n\nOn its recent investor day, Grab announced it is \naiming to break even\n on a group-adjusted \nEBITDA\n basis by the second half of 2024. The firm\u2019s digibank operations are also expected to \nbreak even\n by 2026."}
{"title": "Shopee\u2019s retrenchment wave hits Malaysian ops", "body": "Ecommerce titan Shopee has slashed jobs in Malaysia following a retrenchment round in \nthree other countries\n.\n\n\n\n\nPhoto credit: Shopee\n\n\n\n\nPeople familiar with the matter told \nTech in Asia\n that an announcement by senior management was made during a Monday town hall.\n\n\nA source who was affected by the job cuts couldn\u2019t confirm the number of employees who were laid off, but they told us that some of their affected peers came from the business development, marketing, and customer service departments.\n\n\nAnother source told us that Monday\u2019s layoff announcement was part of last week\u2019s round of retrenchments.\n\n\nThe delay for Malaysia was due to the scale and size of the exercise, the source said, but they added that cuts \u201cremain in the low single-digit percentage across all teams affected.\u201d\n\n\nIn a statement, Shopee said that like last week\u2019s exercise, the Malaysia cuts are part of ongoing efforts to \u201coptimize operating efficiency with the goal of achieving self-sufficiency across our business.\u201d\n\n\nSeptember has been a rough month for Shopee. On September 19, Indonesian business portal \nKumparan\n \nreported\n that the company will be laying off staff in Singapore, China, and Indonesia, dismissing 180 employees in total.\n\n\nAn undisclosed number of employees in Taiwan and the Philippines were also \nrecently let go\n.\n\n\nEarlier this month, the ecommerce platform \nclosed operations\n in Argentina, Chile, Colombia, and Mexico.\n\n\nShopee\u2019s parent firm, Sea Group, has also announced belt-tightening measures.\n\n\nCiting an internal memo to staff sent by CEO Forrest Li, \nBloomberg\n \nreported\n on September 15 that the group revised company expense guidelines with the top management forgoing salaries until self-sufficiency was achieved.\n\n\nLi added that for business travel, Sea staff would stick to economy class. Travel and hotel stay expenses would also be limited to US$30 and US$150 per day, respectively.\n\n\nThis story is developing. Check back for updates"}
{"title": "Binance backs Malaysian crypto exchange\u2019s $1.6m raise", "body": "MX Global\n, which runs a licensed digital asset exchange in Malaysia, has raised US$1.6 million in funding, according to VentureCap Insights data.\n\n\n\n\nPhoto credit: Binance\n\n\n\n\nThe round was led by Crypto exchange Binance and Hachiman Technology, the latter \nreportedly\n being MX Global\u2019s parent company.\n\n\nIt was earlier reported that Binance invested an undisclosed amount in MX Global in March, which also saw the participation of publicly listed firm Cuscapi. Beyond the equity investment, Binance was also providing tech and talent transfer to MX Global\n\n\nIn June, CEO \nChangpeng Zhao\n revealed that Binance \nwill work with Malaysian cryptocurrency exchanges\n to expand its services in the country.\n\n\nThis followed a cease and desist order issued by the Securities Commission of Malaysia against Binance and Zhao in July 2021, as the company was operating without a license.\n\n\nSee also: \nThe tech mogul backing Binance\u2019s Malaysia breakthrough"}
{"title": "Carsome to lay off 10% of staff, leadership to forgo salaries for rest of 2022", "body": "Malaysian unicorn \nCarsome\n has started an \u201cemployee base optimization\u201d exercise that will see the used-car firm let go of up to 10% of its staff.\n\n\n\n\nPhoto credit: Carsome\n\n\n\n\nAccording to a company note seen by \nTech in Asia\n, the exercise is \u201ceither completed or currently ongoing\u201d in Thailand and Indonesia, and is set to begin in Malaysia as well as across Carsome\u2019s regional roles.\n\n\nTech in Asia\n has reached out to Carsome for comment.\n\n\nThe company has promised that all impacted employees will receive their full severance package, along with support on their job searches. The executive leadership team will also be forgoing their salaries for the rest of 2022 to contribute to the severance packages that the firm will be giving out.\n\n\nThe exercise is meant to harden Carsome against the current global economic slowdown. The firm is also optimizing its acquisition strategy and accelerating integration with \niCar Asia\n and \nWapCar\n, which it bought in \nFebruary\n and \nMay\n, respectively. Carsome had also acquired\u00a0Singaporean car marketplace \nCartimes\n in \nMarch\n.\n\n\nCEO \nEric Cheng\n and CFO \nJuliet Zhu\n will also be offering \u201ca significant portion\u201d of their combined personal \nESOP\n shares. This will be awarded to\u00a0\u201cemployees who not only demonstrate strong ownership in their contributions, but also go the extra mile meeting our business goals.\u201d\n\n\nThe development follows the unicorn posting its \nresults\n for the 2021 financial year, which saw Carsome doubling its revenue to US$656 million compared to 2020. However, its losses also widened over 7x to US$138.6 million. These increased losses were attributed to fair value adjustments that are non-cash expenses and are unrelated to Carsome\u2019s operating performance.\n\n\nMeanwhile, the group also managed to build up a war chest of about US$340.4 million, which reflects its \nUS$170 million series D2 round\n in September 2021.\n\n\nEarlier this year, Carsome \nraised\n another US$290 million, which pushed its valuation up to US$1.7 billion.\n\n\nSee also: \nCan Cars24 take on Carro, Carsome in SEA?"}
{"title": "TikTok Shop partners with Ninja Van for SEA logistics", "body": "TikTok Shop\n has appointed Singapore-based \nNinja Van\n as its official logistics partner in Indonesia, Malaysia, and the Philippines.\n\n\n\n\nTikTok Shop illustration / Image credit: TikTok Shop\n\n\n\n\nWith the deal, the tech-enabled logistics firm will be picking up products from sellers, sorting them in hubs, then delivering them straight to customers.\n\n\nTikTok Shop is integrated into the short-form video platform and is available in six Southeast Asian countries, including Thailand, Vietnam, and Singapore. Sales on the platform are \nslowly overtaking\n those of ecommerce giants such as Shopee,\u00a0\nTech in Asia\n recently reported.\n\n\nThough it has found success in the region, TikTok Shop has \ndelayed plans\n to set up shop in the US and the UK.\n\n\nWith over \na billion monthly active users\n on its platform, TikTok is \npoised to reach\n US$12 billion in revenue this year, growing over 2x from last year\u2019s figure of US$4.6 billion.\n\n\nTikTok parent company ByteDance has also \ndecided to buy back US$3 billion in shares\n from its investors, which will bring the firm\u2019s valuation to US$300 billion. It is currently China\u2019s most valuable private company.\n\n\nSee also: \nTikTok Shop has set SEA on fire within months\n "}
{"title": "Alibaba Cloud invests $1b to boost global partner network", "body": "Alibaba Cloud\n, Alibaba Group\u2019s cloud computing unit, will invest US$1 billion to boost its global ecosystem of partners ecosystem and their market expansion.\n\n\n\n\nSelina Yuan speaking at Alibaba Cloud Summit 2022 / Photo credit: Alibaba\n\n\n\n\nAs part of its international strategic roadmap, Alibaba Cloud will commit the funds over the coming three fiscal years. The investments include financial and non-financial incentives like funding, rebates, and go-to-market initiatives.\n\n\nThe cloud computing firm launched a regional accelerator program to boost partners\u2019 income and strengthen their technical expertise.\n\n\nSelina Yuan\n, president of Alibaba Cloud Intelligence International, said partners were a key focus for Alibaba Cloud and the revamped strategy toward partners prioritizes partners\u2019 growth to build an inclusive ecosystem that also benefits customers.\n\n\nAlibaba Cloud currently has about 11,000 partners worldwide, including Salesforce, VMware, Fortinet, IBM, and Neo4j.\n\n\nThe Alibaba unit\u2019s solutions serve a range of industries, including fintech, commerce, and manufacturing.\n\n\nNoting that demand for its services was shooting up as more firms move to the cloud, Alibaba Cloud is rolling out new global infrastructure products and distributed cloud services.\n\n\nIt also opened three new customer service centers in Malaysia, Portugal, and Mexico, as well as three service delivery centers in Malaysia, Hong Kong, and the United Arab Emirates.\n\n\nSee also: \nAlibaba\u2019s financial health in 5 charts"}
{"title": "Malaysian fintech firm raises $6.5m in private equity funding", "body": "Malaysian fintech Revenue Monster Group\u2019s products include online store front solution \u00c0 La Carte, payment terminals, and an ecommerce payment gateway.\n\n\nFunding details\n\n\n\n\n\n\nFunding amount:\n US$6,500,000\n\n\n\n\nLead investors:\n The SEA Capital\n\n\n\n\nStage:\n Strategic investment\n\n\nSource\n\n\n\n\nMore details\n\n\nRevenue Monster Group\n has raised US$6.5 million in total funding.\n\n\n\n\n\n\nStage\n\n\nAmount (US$)\n\n\nInvestors\n\n\n\n\n\n\nStrategic investment\n\n\n$6,500,000\n\n\nThe SEA Capital\n\n\n\n\n\n\nRevenue Monster Group was founded by \nLim Kar Aik\n.\n\n\nSee also: \nSeries SEA: Who\u2019s investing in the region\u2019s fintech startups?"}
{"title": "Exodus of advisors at 5ire, India\u2019s meteoric \u2018105th unicorn\u2019", "body": "Emmanuel Samarathisa and Terence Lee co-reported this story \u2013 the second installment of a two-part series. Read the first one \nhere\n.\n\n\nIn July, the three founders of 5ire were living the dream.\n\n\nThe company, formed in late 2021, was building 5irechain, a \u201cproof-of-benefit\u201d blockchain that had been highlighted at the World Economic Forum\u2019s (WEF) 2022 \nannual meeting\n in Davos, Switzerland, last May. When 5ire said in July that it had reached \nunicorn status\n, it was widely covered by the crypto and Indian tech media.\n\n\nBut by August, a mass exodus of its advisors began. They claimed that they weren\u2019t receiving information about the company, raising questions about 5ire\u2019s financials, assets, and even its investors.\n\n\n\n\n5ire co-founders (from left): Prateek Dwivedi, Pratik Gauri, and Vilma Mattila / Photo credit: 5ire\n\n\n\n\nNow the company seems to be trying to correct its course. It has put together a new board of directors, addressed questions about its valuation, and even clarified \u201csome gray areas\u201d with its investors.\n\n\nAlso, 5ire is now calling itself a \u201cblockchain\u201d company instead of a \u201ccrypto\u201d one. It hopes the change will help it be seen more as a serious technology firm and not just another player in the Wild West-like crypto scene.\n\n\nThe founders \u2013 \nPratik Gauri\n, 31; \nPrateek Dwivedi\n, 32; and \nVilma Mattila\n \u2013 say they began to realize that a change was needed in April.\n\n\nIn August, Arjun Prasad, an advisor who had joined the company in March, was put in charge of the advisory board. He tells \nTech in Asia\n that he replaced the existing roster of advisors, which was largely made up of representatives from the crypto industry, with more people from mainstream companies.\n\n\nTech in Asia\n spoke to several members of the previous board, who said that lack of communication was the main cause of concern among investors. Prasad admits there was a problem with the initial slate, which was put in place \u201c\u200b\u200bbased on personal relationships between the co-founders.\u201d\n\n\n\u201cIt was done on a very ad hoc basis, which isn\u2019t the correct way. I think everyone was too busy trying to build 5ire,\u201d he notes.\n\n\n\n\nPhoto of 5ire\u2019s founders from CEO Pratik Gauri\u2019s Instagram account\n\n\n\n\nThe new makeup of the advisory board is meant to cement its current positioning as a \u201cblockchain\u201d firm.\n\n\n5ire says it has retained three members of the old board: \nJeff Hoffman\n, a entrepreneur and motivational speaker; \nRichard Swart\n, a former director of research at University of California, Berkeley; and \nDavid Marshall\n, co-founder and partner at Marshland Capital. However, \nTech in Asia\n could not reach them for confirmation.\n\n\nGone are \nWulf Kaal\n, founder of crypto firm CRDAO, and \nJaime Gold\n, an entrepreneur and professional poker player. Prasad said that except for Marshall, the current 5ire board no longer includes people from a crypto background.\n\n\nThe startup has not yet released the names of the board\u2019s newcomers, but they include a private equity fund manager (joining in a private capacity); a partner from \nPricewaterhouseCoopers in London\n; a member of UK-based law firm \nClifford Chance\n; and a member of the United Arab Emirates\u2019 royal family.\n\n\n\u201cI decided that if you start bringing traditional players on board, compliance first becomes much easier,\u201d Prasad says.\n\n\nHe thinks that working with crypto advisors also posed unusual problems. \u201cSome of the crypto people were asking to send [sensitive] documents via Telegram. That doesn\u2019t happen in the real world,\u201d Prasad insists.\n\n\nThe startup has confirmed that it has been asked to pitch to Mubadala, an investment firm from Abu Dhabi, although it says it is only in preliminary talks. The chairman of \nMubadala\n is \nSheikh Mohammed bin Zayed Al Nahyan\n, the president of UAE.\n\n\nTech in Asia\n reached out to Mubadala but was unable to get confirmation.\n\n\nWhat does 5ire do?\n\n\n5ire first made headlines in January, when it claimed that it had raised \nUS$21 million\n in seed financing to develop its new blockchain. The funds came from the sale of its tokens.\n\n\nThe first major conflict between 5ire and its ex-advisors came when the company announced in February it had secured a US$100 million capital commitment from \nGlobal Emerging Markets (GEMS) Global Yield\n, a private alternative investment group based in Luxembourg.\n\n\nAt the time, the announcement raised questions about why anyone would invest that much in a new, unproven company without a product. There were also doubts about the deal, particularly whether it would be an equity investment and where 5ire\u2019s valuation had come from.\n\n\nGauri defended the move, telling \nTech in Asia\n that it was only a commitment.\n\n\n\u201cWe can only draw down that money if we do an IPO,\u201d the 5ire CEO says. \u201cWe don\u2019t have any intentions to take the company public in the near future, which also means we will not be drawing down on any of that money.\u201d\n\n\nProof of benefit?\n\n\nAs for a product, 5ire had been working on developing a \u201cproof-of-benefit\u201d blockchain. Called 5irechain, it was created around the ideals of the so-called \u201c\nFifth Industrial Revolution\n,\u201d which is also where the company gets its name.\n\n\nThose ideals come from the \nUnited Nations\u2019 17 Sustainable Development Goals\n, which are aimed at eradicating poverty in combination with \u201cstrategies that improve health and education, reduce inequality, and spur economic growth.\u201d\n\n\nThe goal of this blockchain project was to build a system capable of measuring the actions of companies and agencies working towards the UN\u2019s stated goals. If this sounds idealistic, 5ire admits it is.\n\n\n\u201cOur aim initially \u2026 was basically to have a paradigm shift from a for-profit to a for-benefit sort of an economy. That\u2019s a lofty goal,\u201d chief marketing officer \nPradeek Dwivedi\n tells \nTech in Asia\n.\n\n\nThe startup can achieve this by encouraging entities or individuals that are serious about sustainability to become 5irechain\u2019s validators.\n\n\nIn turn, validators that have higher sustainability scores (as determined by the blockchain) would have better odds of being selected to validate a block of transactions and earn the rewards for doing so.\n\n\nAccording to the company\u2019s estimates, it could see revenues of over US$1 billion in just three years. Dwivedi contends there\u2019s nothing odd about making money from such an idealistic goal.\n\n\n\u201cIf you are compliant with the UN\u2019s SDG goals, you should benefit,\u201d he says. \u201cThat doesn\u2019t mean the United Nations is paying you. It means the 5irechain will reward you for doing good in the world.\u201d\n\n\nAdvisors say that demand for 5irechain is huge, especially among government agencies, non-governmental organizations and companies. The project claims it could remove questions about whether an agency\u2019s actions, such as working to alleviate world hunger, are verifiable or just empty promises.\n\n\nWho are the founders?\n\n\nThe three founders say the idea for 5ire was \u201cborn in August 2021 out of a chai shop in Delhi.\u201d\n\n\nGauri calls himself a serial entrepreneur, and 5ire is his ninth company. He went to high school in Delhi and says he received his engineering degree from \nGuru Gobind Singh Indraprastha University\n and a master\u2019s degree in business administration from the \nIndian Institute of Foreign Trade\n.\n\n\nGauri has made it into several lists for top business people. He also claims to have studied and received certificates from the Harris School of Public Policy at the University of Chicago and the Sa\u00efd Business School at the University of Oxford.\n\n\nOn his website, Gauri described himself as \u201cwidely known as the creator of the Fifth Industrial Revolution (5IR).\u201d He told \nTech in Asia\n that he began promoting 5IR more than a decade ago, claiming it aims to help solve \u201cthe problems of humanity [that] still continue to plague us.\u201d\n\n\n\n\nScreenshot from 5ire CEO Pratik Gauri\u2019s website\n\n\n\n\n\u201cYou will find actually one of my TEDx talks on the Fifth Industrial Revolution in 2016 or 2017,\u201d Gauri says. \u201cI started promoting this concept when I was 16.\u201d However, the earliest video featuring Gauri that \nTech in Asia\n could find online is \ndated 2019\n.\n\n\n5IR appears to be inspired by the \nFourth Industrial Revolution\n, a well-known concept that was apparently coined by WEF founder \nKlaus Schwab\n. Gauri explains that 5IR marks the transition from a for-profit economy to a \u201cfor-benefit\u201d economy.\n\n\nMeanwhile, Dwivedi\u2019s background is \u201crunning marketing companies,\u201d and he retired in 2016 and 2017 after making \u201ca lot of money,\u201d according to Gauri. Dwivedi\u2019s LinkedIn profile indicates that he worked primarily in media. He was with Kaching Media, a company he founded, until January of this year.\n\n\nIn the financial year 2019 to 2020, public documents show Kaching Media posted revenues of 5,937,941.00 rupees or just over US$74,000. However, revenue plunged to US$0 the next year.\n\n\nMattila is a venture capitalist and angel investor who has been in the crypto industry for over eight years. A previous advisor for 5ire said her investments were not small \u2013 they ranged from anywhere between US$500,000 and US$1 million. She has connections in the UN and the WEF, which featured 5ire as a platform partner at its 2022 meeting.\n\n\nOne of the first concerns the founding trio faced from its advisors was the burn rate, which measures how fast a startup is going through its cash reserves. With only US$21 million from a token raise and despite the claims from Gauri that 5ire had not drawn any cash from investment group GEMS, advisors remained concerned.\n\n\nGauri\u2019s social media activity didn\u2019t help. On Instagram, he \nposted pictures\n of himself in Dubai, flaunting various gas-guzzling luxury cars including a Ferrari and a Lamborghini.\n\n\n\u201cWhen you\u2019re in Dubai, you drive new sports cars everyday LOL,\u201d he wrote in the caption for one of the photos. \u201cAm bored of jags/audi/bmws/mercs, guys please suggest an upgrade,\u201d he lamented in another.\n\n\n\n\n5ire CEO Pratik Gauri\u2019s Instagram post\n\n\n\n\nDwivedi and Prasad admit that while the images made for bad PR, they had nothing to do with the company\u2019s burn rate.\n\n\n\u201cOK, we have a Jaguar and a BMW,\u201d Dwivedi says. \u201cWe do because we have worked before we started this company. So the BMW and the Jaguar and everything were bought way before 5ire was even an idea.\u201d\n\n\nPrasad says the company still has over 60% of the money it has raised so far, sourced from a seed round that raised US$21 million and a series A round that has brought in US$20 million to date.\n\n\n\u201cWe are cash flow positive,\u201d Prasad asserts.\n\n\nUK-headquartered Sram & Mram has committed to another US$80 million when 5ire meets certain milestones, but 5ire says it is \ncurrently looking for another investor\n.\n\n\nThe Pope and Woz\n\n\nWhat the company had communicated publicly also compounded the advisors\u2019 worries.\n\n\nFor example, 5ire claimed to have met with Pope Francis at the Vatican. Advisors said that wasn\u2019t true. They did get an invitation to the Vatican, thanks to the connections of Hoffman \u2013 one of the advisors retained from the old board. However, the 5ire team instead met with Cardinal Peter Kodwo Appiah Turkson, who is chancellor of the \nPontifical Academies for Sciences and for Social Sciences\n.\n\n\n\n\n5ire claims to have met the pope as well as the founders of Netflix and Apple.\n\n\n\n\nThen there is the issue of the company\u2019s location. 5ire lists itself as a Dubai-based company, and all three founders live in the Emirati city. But when the startup reached unicorn status with a US$1.5 billion valuation, headlines proclaimed it India\u2019s 105th unicorn.\n\n\nPrasad claims the focus on Indian media was intentional, but it was not intended to mislead.\n\n\n\u201cIf we can capture the Indian market first, going global is much easier,\u201d he says. 5ire also wanted to capitalize on the homegrown pride that came with being an Indian company in India, especially since it was looking to partner with governments and large corporate houses in the country.\n\n\nAccording to Prasad, the India office is primarily meant to serve the local market. The Dubai office is a marketing office for the Middle East and North Africa region, while the UK entity will hold some of 5ire\u2019s technology patents and legal contracts.\n\n\nThe founders claim they prefer to be seen as \u201cdecentralized.\u201d As Gauri puts it: \u201cWe don\u2019t even want to have an office because we have about more than 100 people already working with us. Are we incorporated? Yes. Which countries currently? It\u2019s India. It\u2019s Dubai. It\u2019s London.\u201d\n\n\nDoctorates from Malaysia?\n\n\nThen there\u2019s the matter of the trio\u2019s recent honorary doctorates, which were awarded to Gauri, Dwivedi, and Mattila by the Malaysia South Indian Chamber of Commerce (MSICC).\n\n\nOn August 23, \nTech in Asia\n sought additional information about the honorary degrees but was unable to reach anyone at MSICC. At the time, it appeared that the organization had no known website and no publicly listed office address or phone number. On September 2, we finally found the MSICC website. According to our checks, msicc.org was created on August 24 and went live on August 29.\n\n\nThe MSICC website, which has since been taken offline, contains only a few pages, but one of those is an application for an honorary doctorate. A picture of Gauri being given one of those doctorates is on that page, which includes a button that says \u201cGet Yours.\u201d \nTech in Asia\n has applied for the degree, but we have not received a response or a confirmation email so far.\n\n\nWe also found another website that also claims to represent the MSICC: www.msiccint.com. Both sites list Dato Shri Venugopal \u2013 an associate of Sram & Mram CEO Sailesh Lachu Hiranandani \u2013 as chairman of the organization. But the second one, which was registered in August 2021, is largely under construction and contains large amounts of dummy text.\n\n\n\n\nA screenshot of the MSICC website\n\n\n\n\nThe 5ire founders have also published several short articles on the \nFifth Industrial Revolution\n, 5irechain\u2019s \nsecurity\n and its \nnetworks\n in obscure academic journals.\n\n\nA token offering comes next\n\n\nOn its Telegram channel, 5ire has been regularly posting that it is currently testing its staking and unstaking features and plans to launch a testnet on November 30. A token generating  event is schedule for December 15.\n\n\n5ire has already announced it will attend WEF\u2019s 2023 annual meeting in Davos as part of the \nGlobal Innovators program\n."}
{"title": "Scrutinizing \u2018India\u2019s 105th unicorn\u2019 and its $1.5b valuation", "body": "Emmanuel Samarathisa and Terence Lee co-reported this story.\n\n\nConventional wisdom says to never look a gift horse in the mouth. Unfortunately, conventional wisdom says nothing about dealing with unicorns.\n\n\nThe unicorn in this case is 5ire, a blockchain startup that touts its new, potentially paradigm-changing tech. Its work was \nhighlighted\n at the World Economic Forum\u2019s annual meeting in Davos, Switzerland, earlier in May.\n\n\nWhen 5ire proclaimed that it had reached \na US$1.5 billion valuation\n, the news was widely covered by the crypto and Indian tech media.\n\n\nBut now, after only three months, 5ire appears to be pulling away from \nSram & Mram\n, the very company whose commitment to invest US$100 million made the startup a unicorn.\n\n\nAccording to a source inside the startup, 5ire is looking for another firm to be its series A investor. If that happens, the new investor would take over the round, although 5ire would be required under the terms of its agreement to pay a premium to Sram & Mram.\n\n\nThe specifics of the premium have not been disclosed. 5ire has not identified who the new backer would be, but a deal could be announced soon.\n\n\n\n\nSram & Mram CEO Sailesh Lachu Hiranandani (third from left) with 5ire co-founders / Photo credit: 5ire\n\n\n\n\nQuestions about Sram & Mram and 5ire have been circulating among the startup\u2019s advisors since the announcement.\n\n\nTech in Asia\n tried to speak to Sram & Mram Group several times for this story, but we did not get a response from its chairman, \nSailesh Lachu Hiranandani\n. We were also unable to find evidence to back up the company\u2019s claims that it generated a \u201csales turnaround\u201d of US$800 million for the financial year 2017 to 2018.\n\n\nSram & Mram says it was founded in 1995 by Hiranandani. He is also listed in the Panama Papers for being an \nofficer\n in \nPeak Talent International\n, a \nSingaporean company\n that defaulted in 2001. The specifics of the default were not revealed.\n\n\nAs for 5ire, its former advisors told \nTech in Asia\n that it is unusual for a startup without a product to receive such a high valuation \u2013 or a US$100 million investment. 5ire isn\u2019t scheduled to launch its testnet until November 30.\n\n\nIt\u2019s true that many pre-product crypto projects have raised even larger sums of money, though many have criticized this as a sign of a bubble that\u2019s about to burst.\n\n\nAccording to Arjun Prasad, an advisor to 5ire CEO \nPratik Gauri\n, the US$1.5 billion valuation was made by firms hired by Sram & Mram.\n\n\nThe law firm hired was Ann & Anuar, which has offices in Subang, Penang, and Kuala Lumpur, according to the Malaysian Bar Council\u2019s \nlegal directory\n. \nTech in Asia\n called three phone numbers listed for the Malaysia-based law firm but none were working.\n\n\nThe name of the accounting firm hired by Sram & Mram was not released to \nTech in Asia\n.\n\n\n\n\nPhoto credit: Ann & Anuar\n\n\n\n\nPrasad says that 5ire is standing by the valuation, which he explains was derived based on its main revenue stream, revenue projections for its technology, and tokenomics as it stands today.\n\n\nWhat does Sram & Mram do?\n\n\nOn its \nwebsite\n, the firm claims to be a UK-headquartered conglomerate with 10 companies and over 300 employees across five continents. Sram & Mram says it has forged eight international alliances and operates in 35 locations, with branch offices in Cambodia, South Africa, Indonesia, Malaysia, Bahrain, Georgia, India, and Bangladesh.\n\n\nThe company adds that it has \u201cfootprints spread across multifarious services,\u201d including neural networks, oil and gas, animation, ecommerce, AI, hedge fund management, forex management, hospitality services and solutions, media and publishing, embedded systems and infrastructure. It also claims to own a chain of exclusive luxury hotels and resorts in Cambodia and Malaysia.\n\n\nThese connections were what attracted 5ire to Sram & Mram.\n\n\n\u201cWe wanted to go to a conglomerate or a player which can basically lend relationships and connect us directly to prime ministers, presidents \u2026 connect us to central banks, connect us to state banks, connect us to state governments,\u201d 5ire CEO Gauri shares. \u201cBecause when we do so, then the revenue we\u2019re expecting is huge.\u201d\n\n\nBut \nTech in Asia\u2019s\n search of public filings found that very little of Sram & Mram\u2019s expansive business dealings can be verified.\n\n\nThe group\u2019s UK subsidiary, Sram & Mram Technologies and Resources, shows the company held 928.3 million pounds in non-tangible assets but saw no revenue in 2019 and 2020, the last year when data was available. Another UK-based firm, Sram & Mram Technologies, held roughly 36,000 pounds in 2021.\n\n\nAccording to the Malaysia branch\u2019s filings, Sram & Mram posted 661,000 ringgit in revenue in 2018 and 3.2 million ringgit in revenue in 2020, but the company didn\u2019t earn any revenue in 2019, 2017, and 2016. Overall, the Malaysian branch lost 265,000 ringgit over the five-year period.\n\n\n\n\nWalletz4u booth / Photo credit: Sram & Mram\n\n\n\n\nThe only actual product that can be found is Sram & Mram\u2019s line of personal protective equipment. The company has a photo of its office showcasing its \nWalletz4U\n brand of gloves.\n\n\nSram & Mram claims that Walletz4U is a leading producer of rubber gloves, although the brand doesn\u2019t appear on lists of such manufacturers in Malaysia. Despite claims of establishing a factory in 2021 and shipping gloves overseas, no business listing or address can be found for the facility other than the company\u2019s main Malaysia office.\n\n\n\n\nAside from Sram & Mram Resources, Hiranandani owns two other companies and is a shareholder in a restaurant business. Company filings show that his cash cow is Hoven Nine Industries, which sells rubber gloves.\n\n\nNone of Hiranandani\u2019s Malaysian entities have posted revenue or profits exceeding US$1 million for financial years 2020 or 2021.\n\n\nSram & Mram Group has two Singaporean subsidiaries: Sram And Mram Minerals and Sram & Mram Technologies. Neither entities filed financial statements, but Hiranandani is identified in them as Cambodian and a shareholder in Sram & Mram Minerals.\n\n\nEven information that comes from 5ire about Sram & Mram is inconsistent. In news articles about the US$100 million investment, Gauri claimed that Sram & Mram owned \n800 hospitals\n. But the 5ire CEO later told \nTech in Asia\n that he meant a network of 800 hospitals, although he did not identify which network this was.\n\n\nMeanwhile, a search on LinkedIn only surfaced 47 current Sram & Mram employees and 29 former workers, which is unusual for a firm that claims to have a headcount of 300 and almost 30 years of history.\n\n\nIn all of the company\u2019s business filings, \nTech in Asia\n could not find any evidence indicating anywhere close to US$800 million in revenue, assuming that\u2019s what \u201csales turnaround\u201d refers to. We sought additional information from Sram & Mram but did not receive a reply.\n\n\n5ire says it did its due diligence by meeting with partners that Sram & Mram had invested in to \u201csee if they had received funds in the past.\u201d They reached out to one firm based out of Sweden and a stem-cell company in Boston. 5ire also talked to a gaming platform and a UK company that rents parking spaces via an app. However, it did not disclose the names of these companies.\n\n\n\u201cOn that basis, we went ahead with Sram & Mram rather than listening to what everyone else said,\u201d Prasad explains.\n\n\nHe also admits that 5ire talked to Sram & Mram\u2019s partners because of concerns about Hiranandani.\n\n\n\u201cWe also read the Panama Papers,\u201d Prasad says. \u201cWe were worried. We wanted to ensure that they can actually service the money that they\u2019re promising.\u201d\n\n\n\n\nSailesh Hiranandani (left) at a signing ceremony in Zambia / Image credit: Mwebantu\n\n\n\n\nAfter that, 5ire went forward and structured its deal with Sram & Mram carefully. The first tranche \u2013 worth US$20 million \u2013 was paid immediately. The next is scheduled for when 5ire launches its testnet, which is expected to be in late November or early December. If no new investor agreement is reached with a third party, Sram and Mram would fund this tranche as stated in its original agreement.\n\n\nThe startup will receive the third tranche after 50 people join the chain during the testnet. The final payment is expected to come in when the main net is launched. The deal states that all payments will be disbursed over a 10-month period.\n\n\nHowever, if Sram & Mram fails to pony up, then it will receive equity equal to what it has already paid, and the remainder of 5ire\u2019s series A funding can then be taken over by another investor.\n\n\n\u201cThat\u2019s why we are in talks with other VC investors \u2026 just in case they would like to come in and take over that round,\u201d Prasad says.\n\n\nUltimately, 5ire accepted the deal with Sram & Mram on practical grounds.\n\n\nAs Prasad points out: \u201cWe understood that it helps us gain traction \u2013 it gives us the cash flow when we need it. The cash injection \u2013 we need it. And we still have a buffer today to take on a series A investor which is a loan entity, a proper VC.\u201d\n\n\nHe added that prior to the deal, Sram & Mram had brought several clients to 5ire as a show of good faith.\n\n\n\u201cThis wasn\u2019t just taken randomly. I mean, we didn\u2019t just say, \u2018OK, we\u2019ll go with someone that\u2019s very gray.\u2019 They gave us a very lucrative deal,\u201d Prasad says.\n\n\nThis is the first installment of a two-part series. \nThe next article\n explores 5ire\u2019s three founders and how conflict with advisors forced the trio to make improvements to the business."}
{"title": "HappyFresh resumes services in Indonesia, ceases ops in Malaysia and Thailand", "body": "Update (September 22, 7:35 p.m. SGT): This article has been updated with details on the closure of HappyFresh operations in Malaysia and Thailand.\n\n\nAfter pausing its operations and \nhiring restructuring firm\n Alvarez & Marsal Holdings due to financial troubles, e-grocery firm\u00a0\nHappyFresh\n has resumed services in Indonesia. However, the company decided to cease operations in Malaysia and Thailand.\n\n\n\n\nA HappyFresh rider delivering goods / Photo credit: HappyFresh\n\n\n\n\nThe e-grocer said it has also received a \u201crecent injection of fresh funds\u201d to support operations in Indonesia \u2013 its only profitable market among the three it operates in. The firm\u2019s tech division in the country will be led by co-founder and CTO\u00a0\nFajar Budiprasetyo\n.\n\n\nThe decision to exit Malaysia and Thailand was taken to \u201censure HappyFresh\u2019s market-leading position in Indonesia is maintained as a key growth opportunity for the overall company,\u201d the Jakarta-headquartered firm said in a statement.\n\n\nAdditionally, the firm has reinstated CEO \nGuillem Segarra\n, CFO \nFrederic Verin\n, and COO \nChristoph \nKrauss\n to lead the company\n.\n A new board of directors is also being formed by Segarra and US-based risk consultancy\u00a0Kroll, following the resignation of \nKai\n\u2013\nKevin Gotthard Kux\n,\n \nLee Jung An\n, and David Keller\n \nlast week. \n\n\nVenture debt funds Genesis, Mars, and Innoven will collaborate with HappyFresh to help the e-grocer reach profitability by the end of this year.\u00a0\n\n\nHappyFresh was founded in 2014 by\u00a0Kai Kux,\u00a0\nKonstantin Lange\n,\u00a0\nMarkus Bihler\n, \nBenjamin Koellmann\n, Fajar Budiprasetyo, and \nTim Marbach\n.\n\n\nThe firm has faced various issues this year. In August, the firm put the salaries of several employees on hold and cut all contractor roles, citing \n\u201cfinancial issues.\u201d\n\u00a0Poor global macroeconomic conditions also drove HappyFresh\u2019s management to freeze hiring and cut costs. These problems come after the firm made a \ngross loss\n of US$4.3 million in 2021.\n\n\nSee also: \nHappyFresh in limbo with delayed salaries and \u2018inactive\u2019 top execs\n "}
{"title": "Malaysia-based customer communications firm dials $7m in series A", "body": "Respond.io\n, a Malaysia-based conversational commerce platform, has raised US$7 million in a series A round led by Headline, with AltaIR Capital participating.\n\n\n\n\nThe Respond.io team / Photo credit: Respond.io\n\n\n\n\nRespond.io streamlines messages from chat apps, web communication platforms, and emails into a centralized dashboard, which enables more efficient customer communication. This is especially pertinent in Asia, where users \ntend to hold a preference\n for tailored messages through these platforms compared to Western markets.\n\n\nThe firm said that its services are used by over 10,000 businesses across 86 countries, handling more messages than its three main competitors combined. Its clients include ShareChat, Decathlon, Klook, Yoho, Abenson, and Roche.\n\n\nRespond.io added that its revenue grew 25x since its last funding round in 2020.\n\n\nThe startup will use the new funding to expand to West Asia, Latin America, and Europe. It also aims to extend its suite of integration capabilities.\n\n\nThe firm was founded in 2017 by \nGerardo Salandra\n, who previously worked at Google and IBM.\n\n\nSee also: \n400m Indians use WhatsApp, but will they shop on it?\n \n\n\nOther investors in this round include:\n\n\n\n\nSmart Partnership Capital\n\n\nSterling Oak Group\n\n\nCalendula Ventures\n\n"}
{"title": "Gobi closes $10m fund, welcomes Allianz Malaysia as limited partner", "body": "VC firm \nGobi Partners\n has brought its Malaysia-focused US$10 million Gobi SuperSeed II Fund to a close with the onboarding of investment holding company \nAllianz Malaysia\n as a limited partner.\n\n\n\n\nGobi Partners co-founder Thomas Tsao / Photo credit: Gobi Partners\n\n\n\n\nThe deal marks Allianz Malaysia\u2019s first investment in a VC firm. However, its general insurance arm was an early partner of insurtech firm \nPolicyStreet\n and online property rental platform \nSpeedhome\n, both of which are part of Gobi SuperSeed II Fund\u2019s portfolio.\n\n\nThe fund, which targets early-stage tech startups in Malaysia, also has \nMalaysia Venture Capital Management\n and \nSunway Group\n as limited partners. It will focus on startups that work in the segments of AI, big data, cloud, ecommerce, fintech, internet of things, and the Halal economy.\n\n\n\u201cWe believe that both the fund and the portfolio companies will benefit substantially from Allianz\u2019s ecosystem locally here in Malaysia as well as globally,\u201d said Gobi co-founder \nThomas Tsao\n.\n\n\nLaunched in 2020, Gobi SuperSeed II Fund can invest in up to 25 portfolio companies. Aside from PolicyStreet and Speedhome, it has invested in two other startups: tech news platform \nTechNode\n and Sunway Group\u2019s innovation arm Sunway Innovation Labs.\n\n\nEarlier this year, Gobi \npartnered\n with Malaysia-based social finance platform Ethis Group to launch a US$20 million Shariah-compliant fund.\n\n\nSee also: \nCan Malaysia find its niche as a Shariah fintech hub?"}
{"title": "Will Islamic fintech be Malaysia\u2019s ticket out of \u2018no man\u2019s land\u2019?", "body": "Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. Get it in your email inbox by \nregistering here\n.\n\n\nHello there,\n\n\nMany years ago, while on an exchange program in the US, I took a course on Islamic finance.\n\n\nWhile I admired the innovative structures used to avoid transactions with \nriba\n or interest, some of these seemed like a case of prioritizing form over substance to me.\n\n\nNevertheless, Islamic finance has been a burgeoning subset of the fintech sector in the last few years. With the recent emphasis on \nESG\n concerns, Islamic finance, which is seen as \nsocially responsible\n, can be expected to continue attracting investor interest.\n\n\nIt is also a niche where Malaysian startups have been able to shine, as my colleague Qishin notes in this week\u2019s premium story.\n\n\nMalaysia is often in a \u201cno man\u2019s land\u201d when it comes to tech startup funding, caught between neighbors with much larger populations and tiny Singapore, which benefits from its affluent population and status as Southeast Asia\u2019s financial hub.\n\n\nYet, Malaysia was ranked first in the Global Islamic Fintech Index for 2021 and 2022. This ranks countries by looking at 19 indicators over five categories.\n\n\nIts high ranking could help the country become a hub for Islamic fintech players in the region or even globally.\n\n\nThings are also looking up for Malaysia\u2019s wider fintech landscape \u2013 wealthtech platform Versa, which wants to empower Malaysians to achieve financial wellness, made waves last week when it announced an eight-figure fundraise. I explore this further in this week\u2019s Hot Take.\n\n\n\u2013 \nSimon\n\n\n\n\nTHE BIG STORY\n\n\nCan Malaysia find its niche as a Shariah fintech hub?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nAs regional competition catches up, can Malaysia keep its lead in the Islamic fintech space, and can that lead be leveraged to make it a finance hub?\n\n\n\n\nTHE HOT TAKE\n\n\nCan Malaysia\u2019s Versa get rich by helping others grow their wealth?\n\n\n\n\n(Front row, from left) Versa co-founders Nelson Wong, Teoh Wei Xiang, and Richmond Yau / Photo credit: Versa\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nVersa, a Malaysian digital wealth management platform, closed an \neight-figure funding round\n\u00a0last week.\n\n\nInvestors that participated in the round include Malaysian early-stage VC firm RHL Ventures, South Korean financial conglomerate KB Investment, and existing investor Affin Hwang Asset Management.\n\n\nIn addition to cash management service Versa Cash, the startup recently introduced Versa Invest, enabling users to actively invest with the world\u2019s top fund managers.\n\n\n\n\nHere\u2019s our take:\n\n\nVersa wants to empower Malaysians to achieve financial wellness.\n\n\nThe digital wealth management app is targeting a group that is struggling to make ends meet. Only 16% of Malaysian working adults feel comfortable or elated about their financial well-being, according to \nresearch\n by AKPK, the country\u2019s credit counseling and debt management agency.\n\n\nThe wealthtech sector is a growing business: Funding poured into the industry\u2019s Asian players reached over US$2.2 billion in 2021. This was up 204% from the previous year and constituted 25% of global wealthtech venture funding, according to a \nreport\n by digital wealth platform Endowus and professional services firm KPMG.\n\n\nIn the past week, Vietnamese wealthtech firm \nTititada\n and Singaporean player \nStashAway\n also received funding.\n\n\nVersa currently offers two main products: Versa Cash, a cash management service, and Versa Invest, a collection of global funds \nactively managed\n by Affin Hwang Asset Management and other partners.\n\n\nWith Versa Cash, users can enjoy returns of up to 2.5% per annum \u2013 more attractive than the \n0.25%\n interest rate that Maybank currently offers on its savings account for amounts below 100,000 ringgit (around US$22,200). Users can grow their savings for emergencies and short-term goals. There are no lock-in periods or penalties for early withdrawals.\n\n\nHowever, unlike fixed deposits at a bank, the product is not risk-free, although Versa says it is a \u201cvery low-risk\u201d offering. To achieve its annual rate of return while maintaining its risk level, Versa Cash invests in money market instruments and low-risk fixed deposits.\n\n\nOfferings like Versa Cash may seem similar to savings products offered by the new wave of \ndigital banks\n that are launching in the region.\n\n\nThat said, new digibanks can be expected to be more generalist in their approach compared to wealthtech firms, which will continue to offer specialized services, advice, and products. Where wealthtech platforms may also differentiate themselves is in the field of investments.\n\n\n\u201cWe think there\u2019s a huge, growing pie for everyone, but wealth management will be evolving in its own direction and deepening at a rate that digital banks will probably find it hard to compete with because of the level of focus \u2026 as a result, we see more partnering in the ecosystem,\u201d Endowus CEO Gregory Van said at a press event on Monday.\n\n\nFor Versa and other wealthtech firms, cash management products may be a way to attract funds and build a brand before venturing into other products. Singapore-based Syfe, for instance, also has a similar product called Syfe Cash+, which offers a higher interest rate, no fees, and quick withdrawals.\n\n\nVersa Invest\u2019s focus on actively managed funds contrasts with other players such as Endowus, which tend to use more passive strategies.\n\n\nThere may be other potential concerns as well. First, the presence of Affin Hwang as both a shareholder in Versa and a manager of its users\u2019 funds might present a conflict of interest.\n\n\nSecond, the annual management fee of 1% per annum is not as favorable as other players such as StashAway, which charges its Malaysian users an \nannual fee of 0.8% or lower\n.\n\n\nGoing forward, how might Versa develop its business? One option would be to borrow a page from Endowus\u2019 book. The latter was the first digital wealth platform that enabled its users to invest their public pension funds through their \nCentral Provident Fund accounts\n, a mandatory savings scheme for working Singapore citizens and permanent residents.\n\n\nPerhaps Versa can work with the Malaysian equivalent, the Employees Provident Fund (EPF), to enable EPF members to invest part of their savings with Versa products.\n\n\nWith average monthly salaries in Malaysia \nbelow\n other Asian countries like Singapore, China, and Thailand, platforms like Versa offer an alternative for workers to grow their wealth and achieve financial well-being.\n\n\n\u2013 \nSimon\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nAlso check out \nTech in Asia\u2019s\n coverage of the fintech scene \nhere\n.\n\n\n1\ufe0f\u20e3 \nSG digibank Trust hits 100,000 customers within 2 weeks of launch\n: According to Trust, users between the ages of 18 and 90 signed up on the platform, which is backed by a partnership between Standard Chartered Bank and Fairprice Group.\n\n\n2\ufe0f\u20e3 \nSG\n \nfintech firm M-Daq expands into Japan with new office\n: The profitable firm, which offers forex solutions, has processed over US$32 billion in cross-border transactions across 45 markets since 2016.\n\n\n3\ufe0f\u20e3 \nSG wealthtech investment grows 7x, outpaces region: report\n: According to the report by Endowus and KPMG, Singapore\u2019s wealthtech investments climbed to over US$161 million in 2021 as prominent firms in the country proliferated.\n\n\n4\ufe0f\u20e3 \nPhilippine finance app secures $20m debt facility from Helicap\n: BillEase, which offers personal loans, e-wallet top-ups, and buy now, pay later services, has raised US$55 million in debt and equity to date.\n\n\n5\ufe0f\u20e3 \nRevolut wants to compete with PayPal and Apple at online checkouts\n: The UK-based fintech firm has signed up retailers such as Shopify to implement a new one-click payment feature, and it will allow customers to earn cashback on their mobile or desktop purchases.\n\n\n6\ufe0f\u20e3 \nGoldman\u2019s Apple Card business has a surprising subprime problem\n: Losses on credit card loans at the bank, which counts the Apple Card as its biggest credit product, hit 2.93% in the second quarter \u2013 the worst among US card issuers.\n\n\n\n\nFYI\n\n\nAtome\u2019s 2021 profits nearly triple as revenue sources shift\n\n\n\n\nPhoto credit: Atome\n\n\n\n\nThe BNPL firm\u2019s earnings showed solid profit growth, but revenue from the Philippines and Vietnam shrank in favor of Singapore and Malaysia.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere\n."}
{"title": "Can Malaysia find its niche as a Shariah fintech hub?", "body": "In Southeast Asia\u2019s tech scene, Malaysia occupies a no-man\u2019s-land of sorts.\n\n\nIts 32 million population \u2013 substantially smaller compared to its neighbors\u2019 \u2013 is less conducive to cultivate single-market, local startups. The country also isn\u2019t a global financial hub like Singapore, which has attracted startups and venture capital firms to set up regional operations.\n\n\nBut there is one niche where Malaysia could differentiate itself: Islamic fintech.\n\n\nThe country is a global leader in traditional Islamic finance. According to \na report\n by the Islamic Corporation for the Development of the Private Sector (ICD), Malaysia represented 13.2% of global Islamic banking assets. The country comes in third after Iran (28.5%) and Saudi Arabia (21.2%) and has nearly 8x more assets than Indonesia (1.7%), which has the world\u2019s largest Muslim population.\n\n\n\n\nSo far, however, its government and startups have been slow to capitalize on this advantage.\n\n\nIn 2021, Malaysia\u2019s Islamic fintech sector generated US$3 billion in transaction volumes. Meanwhile, the country\u2019s Islamic finance space as a whole reported assets of over US$272 billion, according to central bank data.\n\n\nWhat gives?\n\n\nMalaysia\u2019s \nlong history in Islamic banking\n \u2013 it introduced the Islamic Banking Act and established \nBank Islam Malaysia\n in 1983 and enacted the Takaful Act in 1984 \u2013 is an undeniable advantage for Islamic fintech startups.\n\n\nMalaysia was also in pole position in the Global Islamic Fintech (GIFT) Index for 2021 and 2022. The index measures 19 indicators in over five categories: talent, regulation, infrastructure, capital, and Islamic fintech market and ecosystem.\n\n\nNaoto Nomura, a general manager at the Malaysian outpost of Japanese lender Aeon Credit Service, says that for aspiring Islamic fintech players, Indonesia is more attractive in terms of market size and talent pool.\n\n\nHowever, the Kuala Lumpur-based executive adds that Malaysia has a better regulatory system in place. This makes it easier for companies in the sector to set up operations, launch products, and collaborate with larger incumbents.\n\n\n\u201cIt\u2019s a very good strategy to start [in Malaysia] and then explore out into other markets,\u201d says Nomura, whose company was part of a consortium \u2013 along with Aeon Financial Service and MoneyLion \u2013 that obtained a \ndigital banking license\n from Bank Negara Malaysia (BNM), the country\u2019s central bank.\n\n\nNomura says that part of the infrastructure includes Shariah finance scholars who can help draft new financial products, providing advice even on new trends like blockchain and cybersecurity.\n\n\n\u201cWe are quite amazed at the knowledge and literacy they have beyond finance,\u201d he says. \u201cFor them, Islam is a value system, [but] it\u2019s also a science.\u201d\n\n\nThus far, however, local startups have not seized the opportunity that Malaysia\u2019s status in traditional Islamic finance presents.\n\n\nAccording to the Islamic Fintech Database, which tracks some 375 Islamic fintech firms as of 2022, Malaysia has the fifth-highest number at 37. The country trails behind Indonesia with 61, followed by the United Kingdom (45) and the United Arab Emirates (42).\n\n\nHowever, the number that have raised venture funding, according to our database, is much fewer.\n\n\n\n\nOne of them, Ethis, has expanded into Indonesia since 2015. More recently, Ethis \ncollaborated with VC firm Gobi Partners\n to set up a US$20 million Shariah-compliant global seed fund, which will start investing in the ASEAN and the Middle East and North Africa region.\n\n\nOther local firms primarily operate partnerships with companies from neighboring countries. Shariah-compliant payments platform PayHalal, for instance, \npartnered\n with Singapore-based buy now, pay later firm Atome in October 2021. Through the deal, PayHalal merchants can offer installment payment options to their customers.\n\n\nMeanwhile, Al Rajhi Bank Malaysia formed a strategic partnership with Moneythor in April to \ndevelop the Singapore company\u2019s digital banking\n services in Malaysia.\n\n\nA launchpad for expansion\n\n\nOne avenue the country can take, some experts say, is creating a Singapore-like hub model, where foreign companies enter Malaysia to set up regional operations.\n\n\nNomura\u2019s colleague Ajith Jayaram, who is the chief transformation officer at Aeon Credit Services Malaysia, is one of those who think this could work. Beyond Malaysian fintech firms expanding abroad, he sees success in foreign players coming to Malaysia to create an Islamic financing business model then launching it to other Muslim markets.\n\n\nHe believes this would be possible due to the maturity of the country\u2019s Islamic finance ecosystem and support from the central bank.\n\n\n\u201cIf the digital Islamic bank model works well, it\u2019s always been our goal to use Malaysia as a stepping stone, to launch this bank into other countries where we (Aeon Credit) operate out of,\u201d he says. Aeon Credit has a significant presence throughout Asia, operating in Malaysia, Indonesia, the Philippines, India, Hong Kong, Taiwan, and its home market of Japan.\n\n\nOne such fintech firm trialing a new product in Malaysia is Singapore-based alternative digital financing platform Funding Societies, which launched a Shariah-compliant trade financing product for MSMEs.\n\n\nFunding Societies data saw a demand for Islamic finance from Malaysian Muslim entrepreneurs, though the service is also appealing for non-Muslims given the emphasis on fairness and transparency in fees and charges. There was also demand among investors due to the shared principles between Islamic finance and \nenvironmental, social, and governance\n investing.\n\n\nWong Kah Meng, group COO at Funding Societies, tells \nTech in Asia\n that Malaysia was a natural fit for the firm\u2019s launch due to the receptiveness of local businesses toward Shariah-compliant financial products and the mature financing framework in the country.\n\n\n\n\nWong Kah Meng, co-founder and CEO of Funding Societies Malaysia / Photo Credit: Funding Societies\n\n\n\n\n\u201cEach market that Funding Societies is in currently acts as a testing ground for uniquely localized products. We are more than happy to expand products that work into other markets,\u201d Wong says.\n\n\nMeanwhile, Dima Djani, co-founder and CEO of Indonesian peer-to-peer (P2P) lender Alami, says Malaysia is definitely a destination the firm is interested in entering, as it\u2019s near Indonesia and has shared values.\n\n\n\u201cThe other Shariah fintech companies are still positioning themselves as P2P lending companies. And P2P lending, in general, has seen challenges in terms of securing VC investments,\u201d he says.\n\n\nRecently, Indonesia is seeing a societal and \ncultural shift\n, where young, middle-class Muslims are embracing a more conservative take on Islam. These consumers now opt for Islamic banking to avoid practices barred by Islamic law like exploitative interest payments known as \u201criba.\u201d\n\n\nLikewise, Malaysian Islamic finance prohibits riba and requires products to be vetted by the \nShariah Advisory Council\n.\n\n\nSee also: \nA new digital bank could instill VC faith in Indonesia\u2019s sharia fintech\n\n\nMore urgency?\n\n\nOf late, there may be more urgency for Malaysia\u2019s Islamic fintech space to develop even further. The \nGIFT 2022 Index\n notes that other Southeast Asian countries are quickly closing the gap.\n\n\nIndonesia rose one spot to third place, overtaking the United Arab Emirates; Singapore was up four spots taking eighth place; while Brunei saw the largest jump, rising 11 spots to enter the top 20.\n\n\nMalaysia\u2019s Shared Prosperity Vision 2030 blueprint put the industry at the intersection of Islamic finance and the digital economy as a key to sustainable and equitable economic growth. The government has also put into place \nprograms\n to support the space\u2019s development.\n\n\nSome government agencies are now working with Islamic fintech firms to distribute financing as well, such as local fintech player Microleap and Bank Pembangunan Malaysia \ncollaborating\n to finance Malaysia Digital Economy Corporation (MDEC)\u2019s digital agritech program.\n\n\nWhether these efforts, combined with recent investments into the sector, will keep Malaysia at the forefront of Islamic fintech is still a work in progress. For one, MDEC, in its Islamic Fintech Report for 2020, highlights some challenges that the space still contends with.\n\n\nSome concerns include a lack of clarity on fintech products that are not under the purview of BNM or SC, which creates market doubts on startups, and a lack of high-level direction on the Islamic fintech agenda.\n\n\n\n\nBank Islam Malaysia\u2019s app Be U. / Photo credit: Bank Islam\n\n\n\n\nMDEC also says that the venture capital environment is not mature enough to meet the funding needs of Islamic fintech startups. The local tech talent pool, for instance, is hampered by lower remuneration offers compared to neighboring countries.\n\n\nTo be fair, Islamic fintech globally still accounts for a small cut of the total Islamic finance pie. The Organization of Islamic Cooperation \nestimates\n the fintech transaction volume of participating countries to be around US$79 billion in 2021. In comparison, the total market value for the global Islamic finance industry then was at US$2.2 trillion.\n\n\nThe top countries by market size were Saudi Arabia (US$26 billion), Iran (US$19.1 billion), and Malaysia in distant third (US$4.8 billion). (Indonesia wasn\u2019t far behind, with an estimated US$4.2 billion market size.)\n\n\nPerhaps Islamic digital banks will be the way forward for Malaysia, as they involve the country\u2019s more prominent tech companies. Aside from the Aeon Credit Service consortium, the other Islamic banking license went to the group of KAF Investment Bank, Jirnexu, MoneyMatch, and Carsome.\n\n\nThough part of a consortium that received a conventional digital banking license, fintech firm Boost has also \ndabbled in Islamic finance\n. In February 2022, it launched Shariah-compliant micro-financing product Capital Plus targeted at MSMEs.\n\n\nSince then, existing Islamic banks have also entered the digital banking space. Most recently, publicly listed Bank Islam Malaysia \nlaunched\n its Be U app in July 2022, which it invested 34 million ringgit (US$7.52 million) to set up.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.42 ringgit."}
{"title": "Malaysian wealth management app secures 8-figure funding", "body": "Versa\n, a digital wealth management service, has secured an eight-figure funding round led by Hibiscus Fund, a VC fund managed by RHL Ventures and South Korean financial services conglomerate KB Investment.\n\n\n\n\n\n\n[Front L-R] Versa\u2019s co-founders Nelson Wong, Teoh Wei Xiang, and Richmond Yau with the Versa team. / Photo by: Versa\n\n\nThe round was also backed by OSK Ventures, Singapore-based HPRY Ventures, and returning investor Affin Hwang Asset Management.\n\nVersa\u2019s mobile app helps users manage their finances and gain interest on their otherwise idle cash with a platform that offers returns similar to those from other low-risk deposit options and with the flexibility of a savings account.\n\n\nThe Malaysia-based fintech startup was established in 2020 and was one of the first recognized market operators to obtain approval to operate from Malaysia\u2019s \nSecurities Commission\n.\n\n\nIt is currently offering net returns of 3.2% per year for savings in its cash management service, Versa Cash. Versa\u2019s investor and partner, Affin Hwang Asset Management, manages Versa Cash.\n\n\nVersa is also close to hitting US$44.44 million in transactions, having doubled its transactions since the beginning of 2022. In June 2022, it also introduced Versa Invest, an investment fund managed by top global fund managers.\n\n\nVersa CEO \nTeoh Wei-Xiang\n said the funding will help drive the company\u2019s vision of empowering more people to achieve financial wellness goals and bridge the financial literacy gap in Malaysia.\n\n\nVersa was also a recipient of the Cradle Fund Sdn Bhd (Cradle) \nCIP Ignite II grant\n for commercialisation, a conditional grant of up to 500,000 ringgit (US$111,000) for tech based start-ups.\n\n\nSee also: \nPleasant surprise in Malaysia\u2019s digibank race\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.5 ringgit"}
{"title": "Malaysian game dev acquired for $1m, set for Vietnam expansion", "body": "Mason Games\n, a mobile game development studio based in Malaysia, has been acquired for US$1 million by Iglobsys Technology, a local company focusing on big data analytics and blockchain.\n\n\n\n\nMason Games founder and CEO Daryl Lau / Photo credit: Mason Games\n\n\n\n\nThe acquisition will bolster Mason Games\u2019 plans to start its first blockchain game project, the company said. It also aims to set up a game development office in Vietnam later this year.\n\n\nFounded in July 2021, Mason Games is a developer of casual strategy and idle games with Asian influences. Some of its titles include \nMath Cat Boxing\n, \nScoopy\n, and \nMonkey Madness\n.\n\n\nDaryl Lau\n, founder and CEO of Mason Games, said the acquisition will \u201ccarve out larger market footprints in mobile gaming, especially in Southeast Asia.\u201d\n\n\nMeanwhile, Iglobsys Technology director Jackie Chong said the deal is a good opportunity for the firm to enter the consumer business as it has the \u201cpotential to amass an extensive database of users over a short time.\u201d\n\n\nEstablished in 2018, Iglobsys Technology helps clients improve their productivity and competitiveness. It has a presence in Singapore, Vietnam, and Indonesia.\n\n\nSee also: \nBlockman Go could be Garena\u2019s next big hit after Free Fire"}
{"title": "Carsome doubles revenue in FY21, though losses widen", "body": "Malaysian used-car unicorn \nCarsome\n has posted US$656 million in revenue for the financial year ending (FYE) December 31, 2021. That\u2019s double the previous year\u2019s figure, according to its latest regulatory filings available on VentureCap Insights.\n\n\n\n\nCarsome co-founder and group CEO Eric Cheng / Photo credit: Carsome\n\n\n\n\nLosses, however, widened by over 7x to US$138.6 million. But a Carsome spokesperson tells \nTech in Asia\n that a sizable chunk of its expenses came from \nfair value adjustments\n that are non-cash expenses and are unrelated to the business\u2019 operating performance.\n\n\nThe firm\u2019s fair value loss on redeemable convertible preference shares, for one, totaled US$49 million.\n\n\n\u201cThe operating \nEBITDA\n of FY 2021 \u2013 excluding fair value adjustments, non-cash items, and non-operational corporate cost \u2013 was in line with the previous year\u2019s EBITDA margin,\u201d says the spokesperson.\n\n\nThis is Carsome\u2019s first financial statement since becoming a unicorn. In September 2021, the company raised\n \nUS$170 million\n from Asia Partners, Gobi Partners, and 500 Southeast Asia, among other investors, bumping up its valuation to US$1.3 billion.\n\n\nThis fundraise was reflected in its significantly higher pile of cash and cash equivalents, which amounted to US$340.4 million \u2013 over 10x higher from the previous corresponding period.\n\n\nIn January 2022, the company raised another \nUS$290 million\n, and it\u2019s now eyeing a US IPO.\n\n\nThin margins\n\n\nCarsome\u2019s revenue growth came despite the impact of Covid-19 containment measures, which dampened demand for travel in Southeast Asia. For instance, the pandemic\u2019s impact on the automobile industry was estimated to have slashed\n \nThailand\u2019s vehicle output\n by almost half to a little over 1.1 million units in 2020, according to research firm IHS Markit.\n\n\n\n\nA Carsome spokesperson shares that the firm\u2019s wholesale unit posted a 190% rise in revenue from a year ago and that its retail unit jumped 20x in the same period. The company said its business in all markets demonstrated \u201cstrong growth,\u201d with revenue in Thailand and Indonesia soaring 332% and 226%, respectively.\n\n\nThe company does not disclose revenue breakdowns by geography in its financial statements. It did announce recently that it sold \n18,000 vehicles\n per month across its four core markets: Malaysia, Singapore, Indonesia, and Thailand.\n\n\nRevenues, however, are just one part of the story in the thin-margin used-car business. After subtracting the acquisition costs of vehicles sold (i.e., cost of goods sold), Carsome has a gross profit of US$36.6 million, which is just 5.6% of its revenue figures.\n\n\nThis is par for the course in the industry: Close competitor Carro\u2019s gross profit margin for FYE 2020 was \n10%\n. Compare that with an industry like logistics, which typically has higher margins. Ninja Van, for instance, posted a \n61.6% gross profit margin\n for FYE 2021.\n\n\nCarsome\u2019s 5.6% gross profit margin is a slight dip from 6.5% in FYE 2020. But the revenue growth does mean that, in terms of absolute numbers, gross profit is up 71% from the previous year.\n\n\n\n\nAs for expenses, the company has recorded a 141% increase in employee benefits expenses. This appears to be a bid to lure talent with generous incentives.\n\n\nIn February this year, we reported that Carsome had poached about \n13 junior and senior executives \nfrom AirAsia\u2019s marketing and tech divisions, as well as 12 junior and senior staff from rival MyTukar\u2019s business development division in 2021. Carsome provided incentives including cash bonuses to dealers for selling used cars to the platform.\n\n\nZooming into profitability\n\n\nIt\u2019s clear that Carsome\u2019s focus before it lists is on scaling up. The company \nexpanded\n its Malaysian office and acquired three entities this year: auto classifieds firm iCar Asia, social media platform WapCar, and car dealership \nCarTimes\n. The firm then combined iCar Asia and WapCar into a new subsidiary called \nWapCar AutoFun\n.\n\n\n\n\nIt is also launching three additional refurbishment facilities \u2013 where the firm will recondition existing vehicles \u2013 by the end of 2022 to meet demand in Indonesia and Thailand.\n\n\nWhile Carsome is accelerating its growth plans in FY 2022 even amid the pandemic, revenue in the first half of this fiscal year has already surpassed the previous year, says the company\u2019s spokesperson.\n\n\nCarsome has been reducing its losses every quarter since the beginning of the year and aims to hit EBITDA breakeven by the second half of 2023, the company tells \nTech in Asia\n.\n\n\nCompetitor Carro, meanwhile, just announced that its revenue for FYE March 31, 2022 has also \ndoubled\n to US$464 million.\n\n\nIt\u2019s a more modest figure compared to Carsome\u2019s, but Carro says it has been profitable since FYE 2021.\n\n\nAs leading players in the Southeast Asian used-car market, Carsome and Carro are often neck and neck in capturing a sizable slice of the space.\u00a0\n\n\n\n\nThe two companies run on similar models, but the main difference appears to be Carro\u2019s focus on fintech. The firm\u2019s fintech arm,\n Genie Financial Services\n, provides its customers with credit options to purchase their cars. The unit saw its non-performing loans ratio remain at 0.1% and delivered about 30% \nreturn on equity\n for FY 2022.\u00a0\n\n\nSingapore-headquartered Carro has also \ninvested\n in Indonesia\u2019s Bank Index.\n\n\nWhile Carsome also facilitates loans through its platform, including through its own Carsome Capital subsidiary, this strategy appears to be nascent. Revenue from financing of vehicles totaled just US$340,000 for 2021.\n\n\nSee also: \nInside Carsome\u2019s and Carro\u2019s all-out war in Malaysia\n\n\nTogether, however, Carro and Carsome have captured less than 5% of the pre-owned cars market in Malaysia, Thailand, and Indonesia as of 2021, according to Momentum Works. There\u2019s still a significant opportunity for both companies to capture more market share, and new competitors like \nIndia\u2019s Cars24\n and \nIndonesia\u2019s Moladin\n\u00a0may yet enter the scene."}
{"title": "Kopi Kenangan to enter Malaysia by Q4", "body": "Kopi Kenangan\n, an Indonesia-based coffee tech startup, has picked Malaysia as its first market to operate in outside its home country. It plans to open around five to 10 stores in Kuala Lumpur and Bandar Sunway by the fourth quarter of the year,\u00a0 the company told \nTech in Asia\n.\n\n\n\n\nKopi Kenangan shop at a gas station / Photo credit: Kopi Kenangan\n\n\n\n\nEdward Tirtanata, CEO and co-founder of Kopi Kenangan, \nfirst announced\n these expansion plans while speaking at Nexticorn International Summit 2022. However, the company didn\u2019t disclose the amount of investment it would put into the venture.\n\n\nKopi Kenangan added that along with the expansion plans, it looks to launch a new brand or product \u2013 which would depend on which country it\u2019s eyeing to enter. The plans come as the word \u201c\nKopi\n\u201d in its brand name, which translates to \u201ccoffee,\u201d is understood only in Indonesia and Malaysia.\n\n\nIn May, Tirtanata had told \nTech in Asia\n that the firm plans to \nopen its first store\n outside Indonesia this year. He further said it aims to enter two or three countries in Southeast Asia soon.\n\n\nThe company didn\u2019t give out other country names in its regional expansion plan when asked about it again. \u201cWe are still focused on our expansion in Malaysia and our domestic dominion in Indonesia,\u201d said Tirtanata.\n\n\n\u201cWe anticipate that consumer behavior in Indonesia will be similar to Malaysia, where online is as important as offline. We will leverage our tech capability that we have built (back-end and front-end), so that we could understand consumers\u2019 behavior better and replicate our success in Indonesia,\u201d he added.\n\n\nSee also: \nKopi Kenangan\u2019s return to profits after a year in the red\n\n\nIn December 2021, Kopi Kenangan achieved unicorn status after it raised \nUS$96 million\n in the first close of its series C round."}
{"title": "Google to select up to 15 SEA, Pakistan firms for accelerator", "body": "Google has opened applications for its accelerator program that will help startups in Southeast Asia and Pakistan solve specific and technical challenges using the tech giant\u2019s resources.\n\n\n\n\nPhoto credit: Google\n\n\n\n\nThe \nGoogle for Startups Accelerator\n program is looking for 10 to 15 startups in the seed or series A stages and based in Indonesia, Malaysia, Pakistan, Singapore, Thailand, Vietnam, or the Philippines. It will accept applications from firms that operate in industries such as ecommerce, finance, healthcare, SME-focused B2B solutions, education, agriculture, and logistics.\n\n\nFounders selected for the program will be paired with industry experts as well as mentors from Google to tackle the challenges that their startups are facing.\n\n\nSee also: \nSeries SEA: Who\u2019s investing in the region\u2019s AI startups?\n\n\nAccording to the tech giant, Southeast Asia saw US$11.5 billion in deal activity for the first half of 2021. Startups in Pakistan raised US$350 million in funding last year, a 5x growth from 2020.\n\n\n\u201cOne explanation for this acceleration is that Pakistan and Southeast Asia both have a thriving youth population,\u201d Google said in a statement. \u201cThese young people tend to be tech-savvy, have an interest in entrepreneurship, and are more in tune with global trends.\u201d\n\n\nStartups that have previously participated in the Google for Startups Accelerator program include Shoplinks, Sehat Kahani, Kata.ai, and Rumarocket."}
{"title": "Lazada-backed TNG Digital struggles to meet its potential", "body": "Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. Get it in your email inbox by \nregistering here\n.\n\n\nHello there,\n\n\nIn the early days of Indonesia\u2019s digital payments scene, I \u2013 like many others \u2013 extensively used GoPay, Ovo, and Dana for food deliveries and other online transactions.\n\n\nOffline payments, though, were a different story. Unless the cashbacks were particularly mouth-watering, my immediate instinct had always been to take out my trusty BCA debit card \u2013 something I didn\u2019t have to continually top up.\n\n\nBut then my behavior changed in late 2019, when Bank Indonesia launched its nationwide QRIS system, which lets consumers pay with any e-wallet through one unified QR code. I found myself paying for offline payments both with e-wallets as well as through BCA\u2019s mobile banking app much more frequently.\n\n\nA similar thing happened in Malaysia. As my colleague Emmanuel writes in this week\u2019s Big Story, the state-linked TNG Digital e-wallet has struggled to turn a profit despite being one of Malaysia\u2019s top four players. Part of that reason is due to a national QR code system that has eroded the revenue streams of e-wallet operators in the country.\n\n\nBut that has turned out to be just one of TNG Digital\u2019s many problems. Despite its links to Touch \u2018n Go, CIMB Bank, Ant Group, and Lazada, bureaucratic influence and a mismatch of priorities between the e-wallet and its parent firm have become a key issue, insiders tell \nTech in Asia\n.\n\n\nIn this week\u2019s Hot Take, I also take a look at a seemingly burgeoning trend among fintech startups: debt financing. It\u2019s an attractive option for founders in the current macro environment, but does its benefits outweigh the risks?\n\n\n\u2013 \nPutra\n\n\n\n\nTHE BIG STORY\n\n\nMaking sense of TNG Digital and Lazada\u2019s hefty investment in the firm\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe Malaysian company\u2019s parent firm may have a monopoly over key public services, but a staid bureaucracy stands in the way.\n\n\n\n\nTHE HOT TAKE\n\n\nMove aside equity financing, venture debt is coming in hot\n\n\n\n\nAtome is one of the fintech startups that has raised venture debt. / Photo credit: Atome\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nFunding Societies announced this week that it raised \nUS$50 million\n in credit facilities from HSBC Singapore.\n\n\nEarlier this month, the same bank provided a \nUS$100 million debt facility\n to buy now, pay later company Atome.\n\n\nThis year, \nLendable\n, which provides capital to fintech firms in emerging markets, also extended US$20 million and US$30 million worth of debt financing to the Philippines\u2019 \nBillEase\n and Indonesia\u2019s \nAlami\n, respectively.\n\n\nIn India, fintech startups are \nexpected to lead\n in venture debt funding this year, continuing last year\u2019s trend where 111 deals totaling US$538 million were struck.\n\n\n\n\nHere\u2019s our take:\n\n\nVenture debt is on the rise.\n\n\nWhile its appeal has always been clear \u2013 it lets founders raise funds without diluting their equity stakes \u2013 it\u2019s become particularly attractive in the current macroeconomic environment.\n\n\nLower valuations have made equity financing less attractive to founders, with venture capitalists preferring more conservative deals. That said, the trend could also be born out of a desire to \navoid the VC trap\n.\n\n\nWhile the US is \nseeing a surge\n in venture debt, a similar trend is playing out here in Southeast Asia.\n\n\nInnoVen Capital SEA, a venture debt platform providing financing to startups and growth-stage companies in the region, tells \nTech in Asia\n that it is seeing \u201cstrong interest\u201d for venture debt from both early-stage and later-stage companies.\n\n\nBut it\u2019s important to note that not all debt financing is the same.\n\n\nLending firms typically partner with a bank or financial institution, which provides the source of funds, instead of extending credit from their own balance sheets. Take Funding Societies\u2019 HSBC Singapore deal, for instance: the funds will be disbursed as loan products for the neobank\u2019s SME clients.\n\n\nBut we\u2019re talking about another type of debt financing here: venture debt that will be used for fueling operation and growth. In Atome\u2019s case, the firm plans to use the US$100 million in fresh funds for expansion efforts in Asia.\n\n\nDebt financing is by no means exclusive to fintech startups. Last year, at least two venture debt funds \u2013 from \nGenesis Alternative Ventures\n and \nIris Capital Partners\n \u2013 were launched in Southeast Asia, and both of them professed to be sector agnostic. But a vast majority of this year\u2019s debt deals have involved fintech companies.\n\n\nIndeed, a \nsurvey\n on Indian startups from venture debt provider Stride Ventures found that 45% of its respondents said that fintech startups will be most actively raising venture debt this year. They\u2019re followed by consumer startups (14.3%) and agritech firms (11.9%).\n\n\nAccording to Paul Ong, partner at InnoVen Capital SEA, there is a \u201cnatural business utility\u201d for fintech startups and those with business models that are focused on lending to raise debt.\n\n\n\n\nShariah-compliant fintech startup Alami raised debt financing from Lendable. / Photo credit: Alami\n\n\n\n\nBut many use cases for venture debt \u2013 such as financing working capital, inventory, capital expenditure, or acquisitions \u2013 also apply to industries outside of fintech, he adds.\n\n\nLendable, which connects investors to fintech companies, has provided debt financing to online lending platforms like BillEase and Alami. But it has also provided a \nsenior secured loan\n of up to US$10 million to Workmate, a workforce management platform, to support the startup\u2019s worker marketplace.\n\n\nThere may be multiple reasons why Lendable is drilling down on the fintech sector specifically. One may simply be the high demand for loans by online lending platforms. Given that its proprietary risk tech platform also helps assess potential deals involving fintech companies, it would make sense to continue focusing on that specific vertical.\n\n\nAs attractive as venture debt may be in a downturn, it does come with its own set of risks, the biggest drawback being repayment pressure, Ong notes.\n\n\nIn the US, the Federal Reserve is seeing \ncontinued interest rate hikes\n as it fights inflation, which could, in turn, be passed on to firms in higher interest rates on their repayments. Would startups have the liquidity to withstand them?\n\n\nMeanwhile, Armando Argueta, vice president for early-stage ventures at Silicon Valley Bank, \nwrote\n that venture debt is designed for companies who \u201cprioritize growth over profitability\u201d \u2013 not necessarily a popular maxim in recent times.\n\n\nStill, the risks may outweigh the benefits for founders, especially now that down rounds are becoming more of a reality. Singapore-based FinAccel is but one example: Just last week, the firm is \nreportedly\n raising funds at a US$1.5 billion valuation \u2013 a 25% drop compared to its US$2 billion valuation last year.\n\n\n\u2013 \nPutra\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nAlso check out \nTech in Asia\u2019s\n coverage of the fintech scene \nhere\n.\n\n\n1\ufe0f\u20e3 \nPayMongo CEO goes on \u2018voluntary leave\u2019\n: COO Isabel Ridad has been appointed as acting CEO of the Philippine payment gateway.\n\n\n2\ufe0f\u20e3 \nPayMongo\u2019s former CFO: \u2018I never stole from any company\u2019\n: Jay Olos posted the statement on LinkedIn, where he also apologized for remarks made toward female colleagues.\n\n\n3\ufe0f\u20e3 \nFunding Societies scores $50m in debt funding from HSBC Singapore\n: The fund will be disbursed through tailored loan products for SMEs across five countries.\n\n\n4\ufe0f\u20e3 \nIndonesian regulator halts new crypto exchange registrations\n: It remains unclear if the new rule is permanent, but the circular could be amended at any time.\n\n\n5\ufe0f\u20e3 \nVietnam\u2019s Touchstone invests $1m in Credify\n: The Singapore-headquartered fintech firm is building a platform that connects financial service companies with consumers through its ServiceX solution.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere.\n\n\nSee you next week!"}
{"title": "Making sense of TNG Digital and Lazada\u2019s hefty investment in the firm", "body": "Malaysian e-wallet services provider TNG Digital (TNGD) was born from privilege: Its parent firm, Touch \u2018n Go (TNG), has a monopoly over key public services. Meanwhile, CIMB Group, which owns \u200b\u200bTNG, is Southeast Asia\u2019s fifth-largest bank by assets and is a government-linked company.\n\n\n\n\nPic credit: Touch \u2018n Go\n\n\n\n\nOver the past year, TNGD has been making headlines for courting a list of institutional investors. Recently, ecommerce giant Lazada led an equity funding round that saw the e-wallet provider \nraise\n 705 million ringgit (US$168.3 million).\n\n\nThis came after the company raised US$75 million from insurer AIA Malaysia and US-based private equity firm Bow Wave Capital Management in August 2021.\n\n\nBut the road to fintech hegemony for TNGD isn\u2019t clear-cut despite its government ties, according to company insiders that spoke with \nTech in Asia\n. They cite bureaucratic influence and a mismatch of priorities between the e-wallet provider and its parent firm as the key issues.\n\n\nBleeding red but in pole position\n\n\nTo be sure, the TNG e-wallet is among the top four e-wallets in Malaysia, together with GrabPay, ShopeePay, and BigPay, government sources tell \nTech in Asia\n.\n\n\nThe sources were involved in a recent e-wallet initiative for the youth which required the participation of the four largest e-wallet providers in the country by market share.\n\n\nMalaysian fintech chiefs and investors believe that TNGD could possibly \u201cbe in pole position by a large margin\u201d due to its presence not only in the capital city of Kuala Lumpur but throughout major cities nationwide.\n\n\nDespite its ubiquity, however, TNGD remains in the red as, according to company insiders, the firm does not make money on e-wallet transactions.\n\n\n\n\nThere are two reasons for this. First, the introduction of the national QR code effectively prevented e-wallet providers from making money from transactions.\n\n\nInitially, users who wanted to make e-wallet payments had to download the specific e-wallet to make a transaction.\n\n\nBut with the national QR code, users can use any e-wallet service or bank app to make their purchases and are not charged a transaction fee for payments worth up to 5,000 ringgit (US$1,114).\n\n\nSecond, a TNGD insider tells us that the only time the company earns from e-wallet transactions is if the purchase went through a point-of-sale (POS) terminal. But in this setup, \u201cmost of the proceeds goes to the POS provider.\u201d\n\n\nThe source didn\u2019t divulge further information but added that TNGD is moving aggressively into financial services, especially microloans, to make up for the lack of revenue from e-wallet transactions.\n\n\nTNGD\u2019s current shareholders are TNG, AIA Malaysia, Bow Wave Capital Management (via ASP Malaysia LP), Ant Group, Alipay, and Lazada. The latter three are controlled by Chinese tech behemoth Alibaba.\n\n\nBoth TNG and TNGD are under CIMB Digital Assets, which is CIMB Bank\u2019s portfolio of digital businesses and ventures.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nIn 2017, Ant took up a \nsubstantial stake in TNGD\n and proved to be a lifeline for the company. The Chinese fintech giant helped remake the e-wallet along the lines of Alipay, which has also grown from providing e-payments to insurance, investments products, and microloans.\n\n\nTNGD rolled out GO+, an investment product available on the e-wallet, in March last year. TNG Group CEO Effendy Shahul Hamid told Malaysian business publication \nThe Edge\n in an April interview that GO+ had reached 2.2 million users at the end of February, with total assets under management of \u201cjust shy of half a billion ringgit (US$111.4 million).\u201d\n\n\nBut TNGD only ventured into microloans in April this year when it launched GOPinjam. The product, however, drew flak from the public for imposing interests as high as 36% per year, depending on the loan amount and duration.\n\n\nThe Edge\n found that GOPinjam had \nthe highest interest or profit rate in the country\n when compared to licensed moneylenders and banks. Most institutions, it added, charged 18% a year at most.\n\n\nEffendy, who is also the CEO of CIMB Digital Assets, defended GoPinjam and told the business publication that the product\u2019s rates ranged from 8% to 36%, depending on various factors such as loan amount or creditworthiness.\n\n\nThe rates, he said, cover not only the costs to disburse the loans, which are \u201cessentially very high,\u201d but also the risk undertaken by the group.\n\n\n\u201cNo one else in the market is giving out loans as low as 100 ringgit (US$22) and allows them to pay back as quickly as one week with an interest of only 69 sen (US$0.15),\u201d he said in the report.\n\n\nTNG and TNGD are regulated by Malaysia\u2019s central bank \u2013 Bank Negara Malaysia \u2013 and the Securities Commission Malaysia.\n\n\nEnter the problematic parent\n\n\nPerhaps the most pressing hurdle that has hampered TNGD is its relationship with its parent firm TNG.\n\n\nDubbed Malaysia\u2019s first fintech product, TNG was incorporated in 1997. In its debut, it offered a prepaid card for commuters to pay for rail fees and tolls.\n\n\nSince then, the firm continues to have one competitive advantage: It is a monopoly. TNG is the sole electronic toll collector for all highways in Peninsular Malaysia and a common ticketing system for major public transport in the country.\n\n\nEvery citizen over the age of 12 carries a TNG card of sorts \u2014 the TNG payment feature is embedded into the chip of Malaysia\u2019s national identity card, therefore turning these into something similar to a TNG prepaid card.\n\n\nHowever, even if TNG and TNGD share the same CEO, there hasn\u2019t been much collaboration between the two companies.\n\n\nEven after TNG ventured into the fintech space with TNGD in 2017, it did not enable seamless prepaid card reloads from the e-wallet app.\n\n\nThis proved to be a thorn for users, who had to rush to a nearby kiosk to manually reload their TNG prepaid cards. To make matters worse, they could only reload their cards during a stipulated time period.\n\n\nAfter some time, the firm introduced two features: PayDirect and RFID. PayDirect allows users to link their cards with the TNGD e-wallet for toll payments. In the event that there\u2019s insufficient balance on the card, the toll fare is deducted from the e-wallet.\n\n\nRFID, on the other hand, is a sticker with a radio-frequency chip that drivers need to attach to their front windscreen.\n\n\nThe RFID tag is unique to each user and is synced to TNGD\u2019s e-wallet. So a driver simply needs to pass through the RFID toll gate, and the fees are deducted from the e-wallet directly.\n\n\nHowever, take up has been slow. According to a July 18 parliamentary reply, only about 20% of toll users rely on the RFID. The government has set a target to introduce a multilane free flow system that is RFID-dependent by 2026.\n\n\nEven so, toll companies have not increased RFID lanes. So far, there is only one RFID lane per major toll gate, leading to congestion during peak hours.\n\n\nAnd despite being able to sync the e-wallet with RFID, the entire system doesn\u2019t recognize a negative balance. This means that if your e-wallet is short on cash, you\u2019ll have to manually pay the toll fee at the gate.\n\n\nTNG only solved the prepaid card reloading issue this April when it introduced new prepaid cards with near-field communication. This followed the government\u2019s announcement early this year that it would be \nreviewing the entire setup\n to allow the public to pay tolls using any digital payment provider \u2013 though they would still need to sync up with an RFID tag.\n\n\nThe sluggishness to fix the reloading problem, according to sources in TNGD, was due to differences between the parent firm and the e-wallet provider. \u201cThe reload option has been the number one request for so long, but TNG failed to move quickly because they felt it wasn\u2019t a priority,\u201d one source said.\n\n\nRocky path to profitability\n\n\nMoving forward, Lazada\u2019s July investment in TNGD will likely be closely watched by market participants such as Angel Low, an associate principal with The Hive Southeast Asia.\n\n\nThe deal could be a move for both entities to turn a profit, Low tells \nTech in Asia\n.\n\n\nWhile Lazada has reached a \u201cmassive volume\u201d in terms of gross merchandise volume and users, \u201cthey still have yet to turn it around to break even,\u201d she said, citing disclosures in Alibaba\u2019s 2022 (FY22) Annual Report.\n\n\nAlibaba\u2019s international commerce segment for FY22 recorded a negative adjusted \nEBITDA\n for that financial year at a US$1.4 billion loss.\n\n\nThe tech behemoth said this was \u201cprimarily attributable to the increase in Lazada\u2019s marketing and promotional spending for user acquisition and engagement,\u201d among others.\n\n\nTNGD insiders we spoke to, on other hand, see Lazada\u2019s investment as more of a directive from Ant. They claim that current shareholders, including Ant, do not want to pony up more cash.\n\n\nThe aim for TNGD, the sources say, is to go regional. The firm is working with Visa to launch a prepaid card this year that will expand its acceptance worldwide, including the ability to cash out through an ATM.\n\n\nAaron Sarma, co-founder and general partner of accelerator ScaleUp Malaysia, tells \nTech in Asia\n that despite its privileges, TNGD will not crowd out the fintech space to the point that Malaysia is left \u201cwith a monopoly in the digital wallet space.\u201d Newer fintech players or startups, he opines, will move in to target niche users.\n\n\nIn turn, incumbents will be pressed to stay ahead of the game, the Kuala Lumpur-based investor argues, as \u201cthere\u2019s a potential threat of \u2018being out-innovated\u2019 by digital banks.\u201d\n\n\nSarma says that Malaysia has already \u201cdone a good job\u201d in getting banks to go online. And, arguably, incumbent banks \u201chave the advantage of traditional banking infrastructure, capital, and a locked-in customer base.\u201d\n\n\nBut the game changer, he adds, is innovation in reaching the underserved, which fosters financial inclusiveness.\n\n\nTNGD isn\u2019t a digital banking licensee as, according to CEO Effendy, the company couldn\u2019t cobble up a compelling consortium. The CEO, however, told \nThe Edge\n that the unit would still be in the digital banking space.\n\n\nBut can TNGD compete with incumbents as well as newer digital banks?\n\n\nCompany sources we spoke to remain pessimistic. Many of the digital banks are run by entrepreneurs, have better talent, and aren\u2019t bogged down by bureaucracy, they argue.\n\n\nTNG\u2019s owner, CIMB, is controlled by Khazanah Nasional, Malaysia\u2019s sovereign wealth fund, which reports to the country\u2019s prime minister and finance minister. Effendy, too, is a corporate man and has been with CIMB since 2014.\n\n\n\u201cTNGD, on the other hand, operates in a constrained, risk-averse environment. When your parent is a government-linked company, the fear of a deal gone wrong or a missed opportunity is heightened due to public scrutiny. Also, bureaucrats can\u2019t pivot as quickly as entrepreneurs,\u201d one company source adds.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.4 ringgit."}
{"title": "SG fintech firm Fomo Pay banks $13m in series A money", "body": "Fomo Pay\n, a Singapore-based fintech firm, has raised US$13 million in its series A funding round led by Jump Crypto \u2013 the digital assets arm of Jump Trading Group.\n\n\nInvestors including HashKey Capital, Antalpha Ventures, Ab Initio Capital, and Republic Capital also took part in the fundraise.\n\n\n\n\nFomo Pay founder and CEO Louis Liu (right) / Photo credit: Fomo Pay\n\n\n\n\nFounded in 2015, Fomo Pay provides a one-stop solution for merchants in Singapore and Malaysia by facilitating a variety of payment methods such as WeChat Pay, Baidu Wallet, GrabPay, and Visa QR.\n\n\nThe latest investment will be used to ramp up hiring and develop its infrastructure. The startup will also diversify its product offerings and work with regulators on central bank digital currency projects.\n\n\nIn September 2021, Fomo Pay \nsecured new licenses\n from the Monetary Authority of \nSingapore\n\u00a0to operate three new regulated activities: a merchant acquisition service, a domestic money transfer service, and a digital payment token service.\n\n\nSee also: \nRazer\u2019s payments platform is profitable a year from launch, has global ambitions\n\n\n\u201cOur goal is to work in harmony with all stakeholders on both developmental and regulatory approaches to achieve the vision of Singapore as an innovative and responsible global digital asset hub,\u201d said Fomo Pay founder \nLouis Liu\n.\n\n\nFomo Pay said it recorded higher transaction volumes in the first half of the year compared to its full-year levels in 2021. The company added that it has an \u201cextremely strong\u201d client pipeline."}
{"title": "Apple Pay lands in Malaysia", "body": "Apple \nhas launched\n its digital payment service in Malaysia. Starting today, Apple Pay is available for Mastercard and Visa cardholders of Maybank, AmBank, and Standard Chartered Bank. The service will be rolled out to users with American Express cards later this year.\n\n\n\n\nPhoto credit: \nDenPhotos / Shutterstock\n\n\n\n\nThis marks the second Southeast Asian market for Apple Pay. The tech giant previously \nreleased\n the payment service in Singapore in 2016.\n\n\nWith Apple Pay, customers can pay for products and services with their iPhone, Apple Watch, iPad, and Mac devices when making purchases in store or online. The payment service uses Apple\u2019s Face ID and Touch ID features as authentication methods.\n\n\nCurrently, Apple Pay is accepted at retailers such as KFC, McDonald\u2019s, Starbucks, and Watsons, as well as in ecommerce websites like Shopee.\n\n\nAmong Apple\u2019s main rivals, Samsung provides \nfull services\n for Samsung Pay in Malaysia, while Google Pay is \nlimited\n to only online and in-app payments in the country.\n\n\nSee also: \nHow Axiata\u2019s Boost stands out in SEA\u2019s heated fintech race"}
{"title": "Carsome reaches 18k cars sold a month as it reaches 7th year", "body": "Malaysian unicorn \nCarsome\n said it has reached 18,000 cars sold per month across its four core markets.\n\n\n\n\nPhoto credit: Carsome\n\n\n\n\nThe company, which is celebrating its seventh year of operation, offers used-car refurbishment and sales, as well as vocational training in vehicle reconditioning. It\u2019s active in Malaysia, Singapore, Indonesia, and Thailand.\n\n\nA company statement highlighted the group\u2019s retail business as its fastest growing unit, expanding from a single center in Malaysia to over 20 across its key markets in less than two years. The segment currently contributes a quarter of Carsome\u2019s revenue.\n\n\nMeanwhile, the startup\u2019s refurbishment arm launched its first Carsome Certified Lab refurbishment facility this year, which can recondition over 2,000 vehicles a month. The company plans to launch three more facilities by the end of 2022 to meet refurbishment demands in Indonesia and Thailand. It already operates more than 120 inspection and retail centers in its four markets.\n\n\nThe company\u2019s educational arm, Carsome Academy, has also reached over 1,500 students to date, and they have undertaken over 6,000 hours of training. The segment, which is accredited by the Malaysian Ministry of Human Resources, has also expanded to Indonesia and Thailand to provide vocational training and job opportunities.\n\n\nCarsome, which recently \nexpanded\n its Malaysian office, also saw the acquisition of three entities, namely auto classifieds firm iCar Asia, social media platform WapCar, and car dealership \nCarTimes\n. Both iCar Asia and WapCar were then combined into a new subsidiary, \nWapCar AutoFun\n.\n\n\nOn the fintech side, Carsome recently obtained a \ndigital Islamic banking license\n as part of a consortium led by KAF Investment Bank. It is one of the first companies in Malaysia to hold such a license.\n\n\nCarsome raised US$290 million in a\u00a0\nfunding round\n in January, bringing its valuation to US$1.7 billion. While it initially said that it plans to go public this year, its dual IPO has been \ndelayed\n, with the company citing \u201cdeteriorating macroeconomic conditions.\u201d\n\n\nSee also: \nCan Cars24 take on Carro, Carsome in SEA?"}
{"title": "AirAsia to explore air taxis in Malaysia with UK firm", "body": "AirAsia\n has signed a one-year partnership with UK-based advanced air mobility (\nAAM\n) infrastructure developer \nSkyports\n to explore the development of air taxis in Malaysia.\n\n\n\n\nVertical take-off and landing passenger aircraft / Photo credit: Capital A\n\n\n\n\nAirAsia Aviation Group Limited\u2019s dedicated AAM unit has inked an agreement with Skyports to establish a fully operational vertiport network.\n\n\nFeasibility studies for integrating the network will be carried out, and the two firms will also identify potential sites and operational requirements to implement the project. Initial assessments will prioritize Kuala Lumpur, according to a statement.\n\n\nWhile AirAsia brings its aviation expertise to the table, Skyports has extensive experience in creating electric vertical takeoff and landing gear for aircraft. Skyports will also engage local regulatory bodies and other such organizations.\n\n\nYun-Yuan Tay\n, Skyports\u2019 Asia-Pacific head, said the partnership highlights the steady progress of AAM development and interest in Malaysia and the wider APAC region.\n\n\nSee also: \nCan AirAsia\u2019s super-app ambitions take off?"}
{"title": "Fave to provide BNPL service for CIMB users in Malaysia", "body": "Malaysian bank \nCIMB\n has partnered with fintech platform \nFave\n\u00a0to provide buy now, pay later\u00a0services to its customers, \nDigital News Asia\n reported.\n\n\nThe partnership will give CIMB\u2019s 8.4 million cardholders a mobile-friendly and flexible payment option that is accepted at over 15,000 merchant locations across Malaysia.\n\n\nIn addition to the BNPL service, shoppers can earn up to 15% cashback at selected merchants.\n\n\nAccording to \nSamir Gupta\n, CEO of group consumer banking at CIMB, the partnership marks a step forward for the company\u2019s digital adoption efforts.\n\n\nDespite recent \nheadwinds\n hitting BNPL players globally, the market is still flourishing in Southeast Asia, with many firms \nsaying\n they continue to see strong traction.\n\n\nAccording to a \nGoogle, Temasek, and Bain report\n, digital lending transactions in the region, including BNPL, will reach US$116 billion in 2025, growing at a compound annual growth rate of 31% from 2021 to 2025.\n\n\nSee also: \nFave bounces back from Covid-19, cuts losses"}
{"title": "1337 Ventures opens applications for 43rd cohort of digital accelerator", "body": "Malaysia-based \n1337 Ventures\n, a VC firm that focuses on early-stage startups, has opened applications for the 43rd cohort of its Alpha Startups digital accelerator program.\n\n\n\n\nThe 1337 Ventures ECF accelerator team / Photo credit: 1337 Ventures\n\n\n\n\nThe six-week program will guide entrepreneurs from the ideation stage of their firms to the minimum viable product phase. They can also seek consultations with industry experts and mentors to accelerate their business.\n\n\nParticipants may receive up to 50,000 ringgit (US$11,220) as pre-seed funding and up to 100,000 ringgit (US$22,436) in Amazon Web Services cloud credits, digital skills training, and job portal credits, among others.\n\n\nEstablished in 2012, 1337 Ventures has served over 1,000 startups from five countries. The VC firm has launched accelerators for companies including FWD, NTIS, Bank Negara Malaysia, Khazanah Nasional, Telekom Malaysia, Digi, the Malaysia Digital Economy Corporation, CIMB Bank, RHB Bank, and Maybank.\n\n\nSee also: \nHas Malaysia\u2019s largest VC lost its luster?\n\n\nPreviously, 1337 Ventures mentored startups in Malaysia like BloomThis, ParkEasy, Eat Cake Today, and Maideasy, which were all part of its accelerators in the past.\n\n\nThe Alpha Startups digital accelerator program will close with a virtual demo day, where teams can present their concepts to investors and VCs. Past notable judges in the program include Suresh Thiru, former CEO of Seek Asia, \nSyed Haizam\n, managing director of The Hive Southeast Asia, and \nTony Yeoh\n, CEO of Digital Penang."}
{"title": "Capital A sees major YoY gains in passengers, super app users as travel returns", "body": "Malaysia\u2019s \nCapital A\n is seeing the effects of the returning demand for travel, seeing a 633% year-on-year jump in passengers carried in the second quarter of 2022 with a \nload factor\n of 84% \u2013 similar to its pre-pandemic numbers.\n\n\n\n\nPhoto credit: Capital A\n\n\n\n\nPreviously named AirAsia Group, Capital A said its consolidated airlines business \u2013 which includes its operations in Malaysia, Indonesia, and the Philippines \u2013 carried around 5.6 million passengers from April to June this year.\n\n\nWith people\u2019s interest in travel rekindled, the company said the Airasia Super App saw record highs in the growth of average monthly active users. It hit 10.6 million in the second quarter of the year, climbing 236% compared to the previous year. The number of transactions through the platform also saw gains in the reported quarter, registering a 524% year-on-year growth to hit 4.9 million.\n\n\nAdditionally, the company saw a rise in ecommerce deliveries done through its logistics service, Teleport, with a 630% year-over-year increase to land at almost 1.2 million in the quarter.\n\n\nSee Also: \nThe C-suites powering Capital A\n\n\nThe firm\u2019s boost in passengers mostly came from its home country of Malaysia, seeing a massive 1,276% year-on-year leap in travelers to hit almost 3.9 million. Its Indonesia operations saw around 715,000 passengers, and its Philippines arm flew almost 1 million people, logging year-over-year jumps of 132% and 480%, respectively.\n\n\nIn Thailand \u2013 which was not included in its consolidated airline numbers \u2013 the firm carried over 1.7 million passengers, representing a 133% rise."}
{"title": "Malaysia-based TNG Digital raises $168.3m led by Lazada", "body": "TNG Digital\n has raised 750 million ringgit (US$168.3 million) in its latest equity funding round led by ecommerce giant Lazada Group.\n\n\n\n\nTouch \u2018n Go Group CEO Effendy Shahul Hamid. / Photo credit: Touch \u2018n Go Group\n\n\n\n\nThe funding round also included a follow-on investment by Touch \u2018n Go, which is a TNG Digital shareholder and the firm\u2019s parent company. This brings the total funding raised by TNG Digital over the last 18 months to over US$220 million.\n\n\nTouch \u2018n Go Group CEO Effendy Shahul Hamid said the strategic investment will bring new value propositions to the user and merchant bases of Lazada and Touch \u2018n Go. He added that the funding will be used to expand all areas of digital financial services.\n\n\nIn 2017, TNG Digital was jointly founded by Touch \u2018n Go and China\u2019s Ant Group, which split ownership of the firm on a 51% to 49% basis, respectively.\n\n\nTNG Digital \nreportedly\n raised US$75 million from insurer AIA Malaysia and US-based private equity firm Bow Wave Capital Management in August 2021. Following AIA\u2019s investment, Touch \u2018n Go\u2019s stake in TNG Digital was diluted to around 47% from 51%.\n\n\nSee also: \nOrg Chart: The people behind Boost\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.46 ringgit."}
{"title": "Touch \u2019n Go partners with PayNet for cashless campaign in rural Malaysia", "body": "Malaysian fintech firm \nTouch \u2019\nn Go Group\n has joined \nPayNet\n, a payments solution provider, to launch a cashless promotion campaign in the country\u2019s Kedah state.\n\n\n\n\nTouch \u2019n Go lane at a toll plaza in Malaysia / Photo credit: Touch \u2018n Go\n\n\n\n\nCalled Mai Kita Cashless, which means \u201clet\u2019s go cashless\u201d in Bahasa Malaysia, the campaign aims to boost cashless payments for merchants and consumers in rural communities via Touch \u2019n Go\u2019s e-wallet and PayNet\u2019s DuitNow QR service.\n\n\nThe program will last until the end of this year and will serve approximately 300 merchants in the area. As part of the campaign, users will earn 5 ringgit (US$1.12) in cashback for every cashless transaction.\n\n\nEstablished in 1997, Touch \u2019n Go is one of Malaysia\u2019s largest electronic payments providers. Its e-wallet, which now has over 16 million users and more than 550,000 merchants, was launched in 2017 via \na partnership\n with Ant Group.\n\n\nMeanwhile, PayNet is Malaysia\u2019s national payments network that develops central infrastructure for the country\u2019s financial markets. Its largest shareholder is the Central Bank of Malaysia.\n\n\nAccording to \na 2022 study by Visa\n, 74% of Malaysian consumers have adopted digital payment methods, making the country only three years away from becoming a cashless society.\n\n\nSee also: \nHas Malaysia\u2019s largest VC lost its luster?\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.45 ringgit."}
{"title": "Indonesia\u2019s Doku buys Malaysian fintech firm for $7.5m", "body": "Indonesia-based fintech firm \nDoku\n has acquired Malaysian payments gateway \nSenangPay\n for US$7.5 million, the companies said in a joint statement.\n\n\n\n\n(From left) SenangPay founders Al\u2019dilah Yunus, Mansor Abdul Rahman, and Khairul Azizi Mohd Razali / Photo credit: SenangPay\n\n\n\n\nDoku financed the deal with the funding it received last year from Apis Growth Fund II, a private equity fund managed by Apis Partners.\n\n\nThe acquisition will help SenangPay adopt new services \u2013 such as e-wallets, remittances, and offline transactions \u2013 that can help its merchants go from brick-and-mortar models into digital businesses, which is in line with the Malaysian government\u2019s \n\u201cMalaysia Digital\u201d initiative\n.\n\n\nEstablished in 2015, SenangPay helps Malaysian businesses accept payments through credit cards, debit cards, internet banking, and all major e-wallet providers in the country. The company is also registered with Mastercard International as a payment facilitator for the Asia-Pacific region.\n\n\nSee also: \nPleasant surprise in Malaysia\u2019s digibank race\n\n\nMeanwhile, Doku provides online and offline payment solutions, serving over 150,000 merchants, including TikTok, Google, Garuda, Prudential, and Traveloka. It has five licenses from the Bank of Indonesia, which enables its payment gateway, domestic fund transfers, cross-border remittances, biller payments, e-money and e-wallet services, and QR code payments.\n\n\n\u201cWe believe the opportunity to enter Malaysia is all the more attractive given the similar socio-cultural backgrounds of our two countries,\u201d said \nNabilah Alsagoff\n, Doku\u2019s CEO.\n\n\nRecently, SenangPay launched SenangZakat, a platform where users can make donations in Malaysia."}
{"title": "Bank Islam Malaysia to launch digibank app this month", "body": "Publicly listed \nBank Islam Malaysia\n\u00a0is set to officially launch its digital banking app called Be U in the middle of this month, \nThe Edge Markets\n reported, citing a statement from the bank\u2019s CEO\u00a0\nMuazzam Mohamed\n.\n\n\nThe news comes two months after the country\u2019s central bank \nawarded digital banking licenses\n to five applicants, including consortiums led by Grab and Sea Group. Bank Islam was not one of the awardees, but it will \nuse its existing Islamic banking licenses\n\u00a0for its offering.\n\n\nBank Islam said that it has invested 34 million ringgit (around US$7.7 million) to set up the digital bank, and it aims to acquire up to 400,000 users in the next 12 months.\n\n\nAccording to Mohamed, Be U focuses on university students, fresh graduates, and gig workers, so it will not compete with Bank Islam\u2019s existing market in the SME sector.\n\n\nIn the first quarter of this year, Bank Islam\u2019s revenue hit 774 million ringgit (around US$174.6 million), a slight increase of 0.4%\u00a0compared to last year. However, its net profit dropped 33% to 105.9 million ringgit (around US$23.9 million) in the same period.\n\n\nSee also: \nPleasant surprise in Malaysia\u2019s digibank race\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.43 ringgit."}
{"title": "Has Malaysia\u2019s largest VC lost its luster?", "body": "Malaysia Venture Capital Management (Mavcap) is the largest government-owned venture capital firm in Malaysia, with a total portfolio value of about 5 billion ringgit (US$1.29 billion).\n\n\n\n\nMavcap CEO Shahril Anas Hasan Aziz / Photo credit: Mavcap\n\n\n\n\nFounded in 2001, Mavcap\u2019s mission was to invest in \nICT\n-related companies across the entire funding spectrum, from pre-seed to late stage.\n\n\nBut after around two decades, Malaysia-based investors and founders have begun questioning Mavcap\u2019s role in stimulating the tech space, especially after it stopped direct investments in 2011 to solely focus on being a fund of funds (FoF).\n\n\nFrustrations, uncertainty, and doubt\n\n\nFour investment professionals who spoke to \nTech in Asia\n on condition of anonymity flagged a host of issues.\n\n\nFirstly, they say it\u2019s difficult to directly engage Mavcap with proposals, claiming that they have to go through intermediaries to get the attention of the agency.\n\n\nSecondly, they highlight that Mavcap\u2019s funding has become too small, making it difficult for the agency to make meaningful investments.\n\n\nThe sources add that not much is known about Mavcap\u2019s investment returns, aside from press statements announcing new funds and investments and information available on its website.\n\n\nA government official familiar with Mavcap told \nTech in Asia\n that they only knew details about the agency\u2019s investment through Teak Capital, a boutique VC firm headquartered in Kuala Lumpur, which was appointed as Mavcap\u2019s outsource partner in July 2008.\n\n\nTeak would fetch a premium for its investee company, GroupsMore, which was acquired by ecommerce platform Groupon in January 2011.\n\n\nThe government official said that the deal helped Mavcap get a 2x return on its investment. However, they couldn\u2019t divulge more details as the information has not been made public.\n\n\nThirdly, the investors that \nTech in Asia\n spoke to question Mavcap\u2019s relevance in light of Penjana Kapital, a newer government agency that has not only been making headlines but also has the same mandate as Mavcap in being an FoF.\n\n\nThe sources argue that success stories of foreign funds being domiciled in Malaysia like Thomas Tsao of Shanghai-based Gobi Partners and of raising a Malaysian VC class such as Victor Chua of Vynn Capital are rare cases.\n\n\nTsao opened Gobi\u2019s Southeast Asian headquarters in Malaysia in 2012, and he also relocated to the country. Chua, on the other hand, worked in Mavcap and then moved to Gobi before setting off on his own with Vynn Capital.\n\n\nLastly, the investors expressed concern over the mood in government agencies across the board. These entities may be adopting a wait-and-see approach to deals because of an impending general election.\n\n\nIsmail Sabri Yaakob, Malaysia\u2019s current prime minister, has until the third quarter of 2023 to call for national polls, according to the country\u2019s constitution.\n\n\nYes, but\u2026\n\n\nIn an email reply to \nTech in Asia\n, Mavcap answered the concerns that the investors had mentioned, especially over its track record.\n\n\nA Mavcap spokesperson said that aside from Teak, US-based Ethos Capital and a few of the agency\u2019s funds have \u201csuccessfully yielded returns from their investment.\u201d However, the spokesperson didn\u2019t drill down to specifics.\n\n\nEthos partnered with Mavcap and \nlaunched a fund\n in 2007. This initiative was part of Mavcap\u2019s 80 million ringgit (US$18 million) allocation for its outsourced partners\u2019 program.\n\n\nAs for internal rate of returns, these \u201cwould be determined by the respective VC fund managers and the key industries they are focused on,\u201d the spokesperson said. The gestation period for VCs is around eight years \u201cto ensure attractive return on investment.\u201d\n\n\nThe spokesperson also pointed out that Mavcap has so far created more than \u201c50 local fund manager personnel and several local VC firms,\u201d which has led to \u201can increased participation by the private sector\u201d in Malaysia\u2019s startup ecosystem, among other results.\n\n\nGrappling with systemic difficulties\n\n\nBut how and when did all these problems bubble to the surface? To get a better picture, one needs to recall that Mavcap was established in 2001. At the time, Mahathir Mohamad was on his first term as Malaysia\u2019s prime minister (1981 to 2003).\n\n\nBack then, the goal was to have an agency that provided alternative financing for budding ICT firms in order to make the landscape more competitive.\n\n\nTo that end, the government provided Mavcap with an allocation worth 970 million ringgit (US$219.1 million) with the mandate of funding startups as well as seed and early-stage firms in ICT-related industries.\n\n\nLike many government agencies, Mavcap has been led by bureaucrats. Many of its current directors are from the civil service. For example, Shahril Anas Hasan Aziz, the agency\u2019s current CEO, is an economics graduate who worked with various government investment agencies before joining Mavcap in 2015.\n\n\nSome of the companies that Mavcap directly invested in during its early days include JCBNext, which runs the \nJobStreet.com\n platform, as well as Censof and Aemulus, which are both Bursa Malaysia-listed tech firms.\n\n\nApart from managing its own funds, Mavcap also partners with others such as 500 Startups, Gobi, and telco giant Axiata, to name a few. Through these investments, Mavcap supported unicorns such as Singapore-headquartered Grab, Indonesian ecommerce player Bukalapak, and Malaysia-based Carsome, among others.\n\n\nAs of 2021, Mavcap is among \nthe three largest VCs\n in the country in terms of funding secured, according to the latest data from capital markets regulator Securities Commission Malaysia (SC).\n\n\nBut despite its influence and seniority, Mavcap is being eclipsed primarily due to a high concentration of government-backed VCs, leading to a duplication of roles and mandates.\n\n\nThe SC also reported that 45% of capital in Malaysia\u2019s VC space came from government agencies and investment companies.\n\n\nFor instance, government-backed Cradle funds pre-seed and seed companies, which taps into the same pool of investments as Mavcap.\n\n\nOther government agencies that operate in the same universe as Mavcap include Malaysia Debt Ventures, which provides alternative financing to ICT-related companies, and the Malaysia Technology Development Corporation, which focuses solely on tech companies, as its name indicates.\n\n\nIn fact, the Malaysian government \nhalved\n Mavcap\u2019s annual budget under the 11th Malaysia Plan (11MP), a government development roadmap. The 11MP ran from 2016 to 2020.\n\n\nThe move effectively forced Mavcap to seek partnerships with the private sector in deploying investments.\n\n\nMavcap was also missing in this year\u2019s government budget allocation. Instead, it was Cradle that received an \n20 million ringgit allocation\n (US$4.5 million) for startups.\n\n\nOutshone by a younger rival\n\n\nThat said, it\u2019s Penjana Kapital that has been giving Mavcap a run for its money. Penjana Kapital\u2019s FoF is similar to Mavcap\u2019s and also targets the same pool of tech companies.\n\n\nIt\u2019s also a relatively young agency. Though Penjana Kapital was established only in 2020, it oversees a 1.2 billion ringgit (US$271 million) fund where the government provides 600 million ringgit (US$135 million) with the rest being matched by private investors.\n\n\nTwo consultants familiar with how Penjana Kapital was set up told \nTech in Asia\n that the FoF has an upper hand because it reports to the Finance Ministry while Mavcap is under the purview of the Science, Technology and Innovation Ministry. The former has greater heft and bureaucratic influence than the latter.\n\n\nTaufiq Iskandar, Penjana Kapital\u2019s chief information officer, \nsaid\n in a May 16 interview with business publication \nThe Ken\n that the FoF had closed 1.3 billion ringgit (US$293.6 million), or 8% above the original target of 1.2 billion ringgit (US$271 million).\n\n\nFrom the 1.3 billion ringgit, Penjana Kapital committed 581.7 million ringgit (almost US$131.4 million) at end-April, with the rest matched by private VCs. This leaves the agency with 19 million ringgit (nearly US$4.3 million) to be matched with newer investments.\n\n\nPenjana Kapital has also launched Kapital X, a VC talent development program in partnership with Sunway iLabs, the innovation arm of local conglomerate Sunway Group.\n\n\nTaufiq also told \nThe Ken\n that Kapital X saw 30 participants \u2013 from final-year undergraduates to junior and mid-level public market analysts \u2013 working on investment deals alongside analysts from local and regional VC firms.\n\n\nNg Wan Peng, the former COO of the Malaysia Digital Economy Corporation, tells \nTech in Asia\n that programs like Penjana Kapital, with its FoF, incentives, and talent development initiatives, are what the country needs at the moment.\n\n\n\u201cHopefully, this gives us success stories. We lack that,\u201d she says.\n\n\nAt least a billion ringgit\n\n\nNg opined that the government needs to put in policies or incentives that encourage funds, especially foreign ones, to set up shop in Malaysia. Some of these include making it easier and quicker for a foreign fund to be domiciled in the country.\n\n\nUnlike many others, however, she doesn\u2019t see multiple government agencies competing for the same pool of startup talent as a problem because Malaysia has yet to reach a saturation point. Instead, greater allocation of funds is what\u2019s needed.\n\n\nMavcap, in her opinion, has to set aside \u201cat least\u201d a billion ringgit if it wants to push the needle.\n\n\nKevin Brockland of Kuala Lumpur-based Indelible Ventures, also thinks that there should be more money on the table. The current amount that government agencies shell out \u201care not the type that would get startups results\u201d he tells \nTech in Asia\n.\n\n\nBrockland cites Cradle\u2019s MyStartup\u2019s accelerator program, which promises to fund companies anywhere between 50,000 ringgit and 250,000 ringgit, which is hardly enough for a seed-stage company. He believes that the funding needs to be bumped up to US$250,000 or 1.1 million ringgit for each startup.\n\n\n\u201cMalaysia needs more institutional capital and value-adding investors,\u201d he says. The lack of such support, he observes, has led Malaysia to fall behind its peers, particularly in seed investing.\n\n\nRecalling his experience domiciling his company in Malaysia, Brockland said the entire process \u201ctook a lot\u201d of money and time.\n\n\nIf agencies including Mavcap could address these issues, then the funds will follow, he adds.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.42 ringgit."}
{"title": "Malaysia\u2019s Speedhome falls victim to SEA\u2019s layoff bug", "body": "Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a Premium subscription\n.\n\n\nHi readers,\n\n\nRenting a home in Malaysia can be a tedious process. You\u2019ll have to deal with an agent, whose primary goal is to earn a commission and not finding you a proper unit.\n\n\nBut before you can even do that, you first have to dodge the racism here. While our consitution prohibits discrimination on based on grounds including sex, religion, and race, we don\u2019t have anti-discrimination laws per se. Malaysia had that chance in 2018 to ratify the International Convention on the Elimination of All Forms of Racial Discrimination but we didn\u2019t.\n\n\nSo prepare yourself for questions like, \u201cWhat is your race?\u201d or \u201cWhich country are you from?\u201d And you can bet that locals and foreigners will be treated differently. You can also count on the fact that not all locals are treated fairly, too.\n\n\nI\u2019m a mixed-race brown man, and yes, I have been on the receiving end of this treatment despite being Malaysian. Most of the time I have landed a unit because it\u2019s my wife who does the negotiating \u2013 she is of a different ethnicity.\n\n\nLet\u2019s say you have earmarked a unit. The agent will then start to get pushy and rush you to sign a rental agreement and collect \u2013 here comes the best part \u2013 a so-called deposit that can amount to four months\u2019 rent.\n\n\nThe deposit supposedly acts as some sort of \u201cinsurance\u201d in case the tenant goes rogue, trashes the place, or worse, turns it into a crime den.\n\n\nOf course, you have to sign a tenancy agreement. The terms will not be in your favor, save for the fact that in case  the landlord breaches the agreement, they will return your deposit.\n\n\nSo in order to rent a space, you have to pay not only a deposit that protects landlords against your potential future bad behavior but also the legal fees for a lopsided tenancy contract.\n\n\nLuckily, my landlords have been great and I\u2019ve also been a good tenant. But the entire process and the upfront cash can be stressful.\n\n\nThis is where Speedhome comes in. The company promises to do away with the middlemen and the hefty upfront deposits. It also offers insurance for landlords.\n\n\nThis sounds great, but tackling a systemic issue like the rental market can be perilous. Maybe that\u2019s why the company is downsizing so it can better allocate resources.\n\n\nIt\u2019s a sad story. If you drive by major highways in and around Kuala Lumpur, you\u2019ll find huge digital billboards of Speedhome CEO Wong Whei Meng trumpeting perks and such. It was an entirely different picture when Wong took to LinkedIn on July 1 \nto announce\n that he is starting a talk show on Facebook where viewers can tip him.\n\n\nWong wrote that four years after putting up Speedhome, he is worth millions on paper. But \u201cthat\u2019s just a facade; it doesn\u2019t pay the bills.\u201d The reality is, his family\u2019s  \u201csavings are dwindling,\u201d so they \u201cstarted to set a strict daily meal budget.\u201d\n\n\nSomehow all that marketing spend, the seemingly pro-tenant perks as well as funding (it secured a Series A round last year) did not pay off.\n\n\nWhat truly happened? I don\u2019t know. For now, Malaysia has caught the layoff bug. But as I cover some of these stories, I ask myself, \u201cWhy did such a great idea like Speedhome, which could have benefited a lot of middle-income families, just couldn\u2019t take off?\u201d\n\n\n\u2014 \nEmmanuel Samarathisa\n, journalist at \nTech in Asia\n\n\n\n\nTop stories this week\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n1\ufe0f. \nMalaysian proptech firm Speedhome to cut workforce\n\nThe company has decided to downsize despite securing series A funding last year from two Malaysian investors.\n\n\n2. \nLazada\u2019s chief strategy officer set to leave post\n\nMagnus Ekbom is the last member of the founding team to depart the firm.\n\n\n3. \nZilingo\u2019s Ankiti Bose resigns from the company\u2019s directorships\n\nBose\u2019s resignation comes more than a week after co-founder Dhruv Kapoor filed a management buyout proposal to the Zilingo board.\n\n\n4. \nCan ShopBack\u2019s $80m reinvention take it to IPO?\n\nA plain-vanilla cashback platform may not be very exciting to investors, but one with a fintech spin may be a different story.\n\n\n5. \nWhat the Russia-Ukraine crisis spells for spacetech in SEA\n\nSpacetech know-how and talent are exiting Russia and Ukraine because of the war, but Southeast Asia seems too slow to capitalize on the opportunity.\n\n\n6. \nEx-Binance CFO has big plans for Coins.ph, Gojek\u2019s \u2018underloved,\u2019 \u2018orphaned\u2019 business\n\nWei Zhou, the former chief financial officer at Binance, plans to transform Coins.ph into a Web3 powerhouse.\n\n\n7. \nEU tech crackdown a warning shot for SEA\u2019s big tech companies\n\nSoutheast Asia\u2019s big tech companies are safe from the European Union\u2019s new regulations for now, but they should start preparing for future challenges.\n\n\n8. \nChina is embracing Web3 without crypto\n\nChina is preparing to export its version of Web3 to the world. But will it gain mainstream acceptance?\n\n\n9. \nTerra, Celsius raise prospects for crypto insurance\n\nInvestors are looking to put their money behind crypto insurers who can cut through the red tape of the traditional insurance sector.\n\n\n10. \nBNPL struggles amid global recession \u2013 except in Southeast Asia\n\nRising interest rates, inflation, and a looming recession have cast doubt on the viability of the BNPL model. But SEA\u2019s players may be an exception."}
{"title": "Exclusive: Rocket Internet-backed Flash Coffee bags $33m in first series B tranche", "body": "Rocket Internet-backed \nFlash Coffee\n has raised US$32.8 million in the first close of its series B funding round, the company\u2019s founder and CEO \nDavid Brunier\n told \nTech in Asia\n. However, details of the lead investor in the round remain undisclosed.\n\n\nOther investors in the round include Delivery Hero, Columbus Holding International, White Star Capital, Conny & Co, DX Ventures, and Al-Dhow Engineering General Trading & Contracting, according to Flash Coffee\u2019s regulatory filings.\n\n\n\n\nPhoto credit: Flash Coffee\n\n\n\n\nCurrently, the company is in the final stages of hitting the second close of its series B round.\n\n\nFounded by ex-Foodpanda chief marketing officer David Brunier and former Bain & Company executive \nSebastian Hannecker\n in 2020, Flash Coffee offers premium coffee at prices more than 50% lower than Starbucks.\n\n\nCompared with other coffee startups like Luckin Coffee and Kopi Kenangan, which often focus on one market, the Rocket Internet-backed firm has aimed to be a regional player since its launch. \nIt now operates in Indonesia, Singapore, Hong Kong, South Korea, Japan, Thailand, and Taiwan. It plans to expand into the Philippines, Malaysia, and Vietnam by this year.\n\n\nIn 2020, when Flash Coffee last revealed its financial statements, the company recorded a loss of US$2.2 million while posting revenue of nearly US$247,000.\n\n\nFrom early 2021 to August 2021, Flash Coffee opened 90 new coffee outlets. The company targets an additional 350 new stores across Asia by the end of 2022.\n\n\nSee also: \nFore Coffee brews its way to profitability\n\n\nIn April 2021, Flash Coffee \nlanded US$15 million\n in a series A round led by White Star Capital. DX Ventures, Global Founders Capital, and Conny & Co also participated in the round, boosting Flash Coffee\u2019s total funds raised to US$20 million at the time."}
{"title": "Grab rolls out intercity travel services in Singapore, Malaysia", "body": "Grab Malaysia has rolled out intercity travel services in Malaysia and Singapore, giving users the ability to purchase bus and ferry tickets for direct routes between the two countries.\n\n\n\n\nPhoto credit: Grab\n\n\n\n\nGrab Intercity was adapted onto the super app\u2019s platform via a team-up with \nSplyt\n, an service integration solution provider, and \nEasybook\n, a regional transportation booking platform. The new service also allows users to pay for tickets with GrabPay and earn points for Grab\u2019s reward system.\n\n\nWith Grab Intercity, users can choose from over 15,000 available routes and buy travel tickets on the app. The feature will also allow Grab users to purchase bus tickets to over 30 destinations in Singapore from 11 different states and cities across Malaysia.\n\n\n\u201cIt\u2019s only through collaboration with industry leaders across different sectors that we\u2019re able to simplify routine errands such as planning for a holiday,\u201d said \nRashid Shukor\n, director of country operations and mobility at Grab Malaysia.\n\n\nHaving direct routes between the two nations will also support economic recovery as it would make travel more convenient, according to Wee Ka Siong, Malaysia\u2019s transport minister.\n\n\nSee also: \nHow GrabMaps plans to beat Google Maps in $1b sweepstake for SEA dominance"}
{"title": "ScaleUp Malaysia to pour $1m into 10 startups in 2022 cohort", "body": "Startup accelerator \nScaleUp Malaysia\n is looking to invest US$100,000 into each of the 10 startups in its 2022 cohort.\n\n\n\n\nScaleUp Malaysia Team / Photo credit: ScaleUp Malaysia\n\n\n\n\nStartups in Malaysia, Southeast Asia, and globally that are already generating revenue \ncan apply\n for the program. Firms must be able to show a \u201cstrong\u201d product value proposition, a sizable market, and a \u201ccompelling\u201d go-to-market plan, ScaleUp Malaysia said.\n\n\nThe program, which starts in the fourth quarter of this year, will include a one-month investor readiness bootcamp, along with access to venture capital networks. The program will also offer two-year support from an external management team.\n\n\nWithin five weeks of submission, applicants will know if they are accepted into the program.\n\n\n\u201cWe recognize that this is a very precarious time for founders with so much uncertainty with the economic situation in the region and around the world,\u201d said ScaleUp Malaysia managing partner Andre Sequerah. \u201cThis is why we have streamlined our process to make sure that exceptional startups get funded quickly so they hit the ground running and scale effectively.\u201d\n\n\nIn the company\u2019s previous cohort, which saw startups apply from 26 countries, the 11 participants received US$60,000 in funding.\n\n\nSee also: \nMalaysian proptech firm Speedhome to cut workforce"}
{"title": "MyTukar changes brand lane, adopts Carro\u2019s color scheme", "body": "MyTukar\n, a used-car marketplace based in Malaysia, has changed its brand identity to align with the appearance of its parent company, Singapore-based Carro.\n\n\nThe update includes a revised logo and a new color scheme to replace the shade of teal that MyTukar used. It has now adopted an orange color palette, which mirrors Carro\u2019s signature tint.\n\n\n\n\n(From left) MyTukar founder and chairman Fong Hon Sum and company CEO Derrick Eng with Aaron Tan, Carro\u2019s co-founder and chief executive officer / Photo credit: MyTukar\n\n\n\n\nMyTukar also announced that its first Carro-powered campaign will be rolled out in the coming weeks.\n\n\nCustomer service is another area that MyTukar plans to improve. It is eyeing a new fleet of flatbed trucks that will deliver vehicles directly to customers\u2019 homes. In addition, it plans to offer buyers an interest rate that can go as low as 1.88%, along with same-day loan approval and vehicle collection.\n\n\nAs part of its rebranding, MyTukar is hosting \nan automotive fair\n at its flagship showroom in Malaysia. It will feature over 1,000 MyTukar-certified pre-owned cars and can accommodate more than 6,000 guests.\n\n\nSee also: \nCan Cars24 take on Carro, Carsome in SEA?\n\n\nFounded in 2018 by \nFong Hon Sum\n, MyTukar aims to transform the used-car trading process through its full-stack, digitized platform. Since its inception, the company\u2019s transaction volumes soared by 63% for wholesale and 260% for retail while its net revenue increased by 89%.\n\n\nA year later, Carro set up shop in Malaysia by \ninvesting\n US$30 million in MyTukar, adding to its list of subsidiaries.\n\n\nA \nglobal chip shortage\n and deteriorating economic conditions have fueled higher demand for used vehicles in Malaysia. In the first quarter of 2022, demand for pre-owned cars in the country \nshot up\n by 8% while prices also rose by 5%."}
{"title": "Malaysian proptech firm Speedhome to cut workforce", "body": "Speedhome, a Malaysia-based property rental platform, will be laying off staff.\n\n\nEmployees have begun looking for jobs after learning of an impending retrenchment at the company, several industry insiders told \nTech in Asia\n.\n\n\n\n\nPhoto credit: Speedhome\n\n\n\n\nA Speedhome spokesperson also confirmed the matter with \nTech in Asia\n, saying that job cuts were \u201cinevitable\u201d as the proptech firm had recently embarked on a \u201ccost optimization\u201d exercise.\n\n\nThe number of affected staff was not disclosed. Speedhome has 99 employees, according to its \nLinkedIn\n page.\n\n\nThe spokesperson said the company was advised to \u201crecalibrate\u201d its business plan, citing \u201chigher interest rates, economic uncertainty and funding environment.\u201d\n\n\nHowever, the move is not expected to affect Speedhome\u2019s customers or services, the Speedhome representative added.\n\n\nFounded in 2015, Speedhome\u2019s sales pitch is connecting landlords directly with tenants, removing the need for real estate agents or the collection of hefty security deposits.\n\n\nThe platform also provides rental protection and insurance through a partnership with Allianz General Insurance.\n\n\nLast year, Speedhome \nannounced plans\n to enter Bangkok and to pursue a super app for property investors after it raised 7 million ringgit (US$1.5 million) in series A round from two Malaysian institutional investors: insurer Allianz Malaysia and venture capital firm Gobi Partners.\n\n\nMalaysian startups have not been exempted from the layoff wave that recently hit tech companies in Asia.\n\n\nShopping aggregator iPrice \ndismissed\n 20% of its employees while services marketplace Kaodim \nceased operations\n today.\n\n\nTrack all the layoffs across Asia \nhere\n and help us help us maintain this list by \nfilling this form\n with any information on job cuts and affected employees.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.41 ringgit"}
{"title": "Payments major Wise posts 33% YoY jump in revenue for FY22 as costs rise", "body": "Global payments firm \nWise\n recorded strong growth in revenue and profit right after its CEO \nKristo Kaarmann\n was said to be under investigation by UK authorities due to his \ntax affairs\n.\n\n\n\n\nPhoto credit: Wise\n\n\n\n\nWise posted a 33% year-on-year increase in revenue to almost 560 million pounds (US$\n683.6 million)\n for its 2022 financial year ended March 31, the company said in its first financial report as a publicly listed firm.\n\n\nThe growth was mainly driven by rising transaction volumes. Total volume transferred in FY22 was US$93.2 billion, up 40% from FY21.\n\n\nAdjusted \nEBITDA\n, meanwhile, saw a 12% year-on-year rise to US$\n148\n.1 million for the period. The company reported a reduced adjusted EBITDA margin \u2013 from 26% to 22% \u2013 as it planned to invest back into its teams, products, and marketing.\n\n\nIts gross profits registered a 43% increase to US$453.7 million during the same period.\n\n\nHowever, Wise\u2019s growth in these areas came with 48% and 31% increases in the company\u2019s administrative and employee costs, respectively. The company spent US$392 million on the former and US$225.4 million on the latter.\n\n\nThe payments firm said it will continue to invest sustainably into its infrastructure, with a target adjusted EBITDA margin at or above 20%. It\u2019s also looking to hit revenue growth of between 30% to 35% in FY23.\n\n\nIn July 2021, Wise \nlisted\n on the London Stock Exchange at a valuation of US$11 billion.\n\n\nThe financial report comes after Kaarmann came under investigation by the UK\u2019s Financial Conduct Authority for failing to pay over US$878,000 for the 2017 to 2018 tax year, resulting in a US$446,000 fine.\n\n\nThe regulator has the power to deem Kaarmann unfit to be a senior manager of an investment firm, a role he occupies as Wise offers stock trading in addition to international payments.\n\n\nCurrency converted from pound sterling to US dollar: US$1 = 0.82 pounds.\n\n\nSee also: \nSeries SEA: Who\u2019s investing in the region\u2019s fintech startups?"}
{"title": "Ikea taps 2C2P for Southeast Asia payments", "body": "Singapore-based payments platform \n2C2P\n said it will handle payments for Ikano Retail, a franchisee of retail giant Ikea, for customers in Singapore, Malaysia, Thailand, and the Philippines.\n\n\n\n\nIkea store in Singapore / Photo credit: Wikipedia\n\n\n\n\nThe payments firm\u2019s services will cover online transactions through credit cards and available e-wallets in each market. This includes DBS, OCBC, Standard Chartered, and UOB accounts via eNETS for Singpore, as well as FPX for Malaysia, PromptPay for Thailand, and GCash for the Philippines.\n\n\nAdditionally, 2C2P\u2019s payment platform will also offer Ikano Retail with customized features that automatically reconcile multiple business streams and provide accurate data reporting.\n\n\n\u201cBy offering a full-suite solution that integrates Southeast Asia\u2019s differing payment methods, we hope to provide Ikea with a competitive advantage and help them keep pace with their customers\u2019 changing payment preferences and needs,\u201d said \nAgnes Chua\n, executive director at 2C2P.\n\n\nThe deal comes amid increased spending in Southeast Asia\u2019s ecommerce market, which is expected to hit \nUS$179.8 billion by 2025\n.\n\n\nIn March, 2C2P \nteamed up with ShopeePay\n to process digital payments in Southeast Asia, while it \npartnered with BillEase\n last year to boost buy now, pay later services in the Philippines.\n\n\nIn April, \nAnt Group became the majority stakeholder in 2C2P,\n linking the latter\u2019s merchants to AliPay+.\n\n\nSee also: \nThese are the most active investors in Southeast Asia\u2019s startups"}
{"title": "Gojek confirms no plans to enter Malaysia (Updated)", "body": "Update (June 24, 11 a.m. SGT): This article was updated with comments from a Gojek spokesperson.\n\n\nGojek has confirmed to \nTech in Asia\n that the ride-hailing giant has no plans to enter the Malaysian market after reports of a car with the company\u2019s logo sparked rumors of its expansion plans.\n\n\nThe company said that the vehicle spotted was being filmed as part of an upcoming campaign that is expected to be released later this year. A black Honda City car with a Gojek sticker on the side was \nreportedly\n seen filming in Kuala Lumpur while a traffic policeman was guarding the shooting spot.\n\n\nThere are \n33 e-hailing companies registered\n with them as of June 2022, according to Malaysia\u2019s Land Public Transport Agency. The list does not include Gojek.\n\n\nIn 2019, the Indonesian firm\u00a0\nconsidered running\n pilot trials in Malaysia after the government agreed to give the company\u2019s motorcycle ride-hailing services a principal approval in the country. Gojek had also \nannounced plans\n to enter the Malaysian market by 2020.\n\n\nHowever, Malaysia\u2019s government\u00a0\nmade a u-turn\n on motorcycle ride hailing in 2021, citing high death rates involving motorcyclists in road accidents.\n\n\nSee also: \nGoTo Group\u2019s financial health in 4 charts"}
{"title": "Gobi and Malaysian social finance firm to launch $20m Shariah fund", "body": "Malaysia-based social finance platform \nEthis Group\n has teamed up with VC firm \nGobi Partners\n to set up a US$20 million Shariah-compliant seed fund.\n\n\n\n\nRepresentatives from Gobi and Ethis / Photo credit: Ethis\n\n\n\n\nThe joint fund will invest in startups that comply with Shariah law, initially focusing on startups in the ASEAN and\u00a0Middle East and North Africa regions.\n\n\nSet to have its first close by year-end, the investment vehicle aims to support startups that produce goods for the Muslim community.\n\n\n\u201cThe establishment of this joint fund will allow us to channel investments into tech startups driving change and making an impact,\u201d said Ethis COO \nMohamed Shehzad Bin Mohamed Islam\n. \u201cVenture capital is in high demand and suitable for ethical investment.\u201d\n\n\nBased in Malaysia and Hong Kong, Gobi Partners supports early- to growth-stage startups in emerging and underserved markets. So far, the VC firm has invested in more than 320 startups.\n\n\nThe companies expect the joint fund to benefit from Gobi\u2019s network of startups and Ethis\u2019 relationships in Shariah-compliant funding.\n\n\nAlthough the Muslim community could make up nearly a third of the world\u2019s population by 2060, its \u201cdigital needs are largely unmet or underserved,\u201d said Gobi co-founder \nThomas Tsao.\n\n\n\u201cThrough this partnership with Ethis and the creation of this dedicated fund, we will now be able to fund, nurture, and support even more Muslim entrepreneurs,\u201d he added.\n\n\nSee also: \nA new digital bank could instill VC faith in Indonesia\u2019s sharia fintech"}
{"title": "East Ventures leads Malaysian D2C ecommerce firm\u2019s $29m series B", "body": "RPG Commerce\n, a Malaysia-headquartered ecommerce firm, has raised US$29 million in a series B funding round led by East Ventures. Other investors that participated in the round include UOB Venture Management, Vertex Ventures Southeast Asia & India, and RHL Ventures.\n\n\n\n\nRPG Commerce founders / Photo credit: RPG Commerce\n\n\n\n\nFounded in 2017, the direct-to-consumer ecommerce company acquires brands and develops its own. The company runs an end-to-end brand development, production, and delivery process to sell products. It has offices in Singapore, Malaysia, and the Philippines.\n\n\nTo date, RPG has more than 10 in-house international brands offering consumer products like clothing and homeware. These include\u00a0Thousand Miles, Bottoms Lab, Montigo, and Cosmic Cookware.\n\n\n\u201cRPG takes a multi-category, multi-brand approach while retaining the roll-up model as an option, making them a unique and successful player in the ecommerce landscape,\u201d said \nWillson Cuaca\n, co-founder and managing partner of East Ventures.\n\n\nThe funds raised will be used to improve the company\u2019s technology and development processes as well as to expand its portfolio of brands.\n\n\nSee also: \nShopee layoffs hit payments, food delivery and LatAm teams"}
{"title": "Org Chart: The people behind Boost", "body": "\n\nOrg Chart\n maps out the people at the top of Asia\u2019s most prominent tech companies. Who are the key decision-makers? How are the teams organized? What does it tell us about the company\u2019s priorities? We continue this series with Malaysian fintech company Boost.\n\n\nBoost, the fintech arm of Kuala Lumpur-based telco giant Axiata, recently made headlines when it bagged the highly coveted digital banking license in Malaysia together with RHB Bank.\n\n\nLaunched in 2017, Boost was initially under Axiata Digital as the subsidiary\u2019s e-wallet arm. This was when parent firm Axiata ventured into the digital space with a mandate to grow Malaysia\u2019s first tech unicorn.\n\n\nThat ambition was somewhat realized in June 2020 when life insurance firm Great Eastern invested US$70 million for a 21.8% stake in Boost, valuing the company at US$320 million at the time. But it was used-car platform Carsome that beat Boost to the punch in being crowned Malaysia\u2019s first unicorn.\n\n\nThe Great Eastern deal, more than just providing capital, also saw Boost become a holding company. It now had four core businesses: lifestyle app Boost Life, merchant solutions platform Boost Biz, microinsurance and microfinancing arm Boost Credit, and cross-border payments gateway Boost Connect.\n\n\nAt the helm of Boost is group CEO Sheyantha Abeykoon, an Axiata veteran who joined the telco giant\u2019s Sri Lankan unit in 2013. Abeykoon then became the CFO of Axiata Digital in 2017 before taking on the CEO mantle in 2021.\n\n\nAmong the four aforementioned subsidiaries, only Boost Credit doesn\u2019t have a CEO.\n\n\nEric Chong, a sales veteran, heads Boost Biz. His work experience revolves around the telco space, particularly in enterprise sales. Chong also has experience working in key telco multinationals including Malaysia\u2019s Axiata and Digi.Com, Indonesia\u2019s PT Smartfren Telecom, and Australia\u2019s Syniverse.\n\n\nRaja Mansukhani, who also comes from a telco or teleservices background, leads Boost Connect. He joined Axiata in 2009 as its assistant vice president overseeing group operations. Before that, he worked in Indian-based firms such as Tata Teleservices and Tech Mahindra. He joined Boost as executive director in charge of revenue prior to working his way up to becoming the Boost Connect chief.\n\n\nMeanwhile, Ungku Norliza Ungku Halmie, an auditor by training, is Boost Life\u2019s CEO. She debuted at Axiata in 2010 as an assistant vice president for business and planning performance and would go on to become Axiata Digital\u2019s CFO in 2014. She joined Boost as finance operations director in 2017.\n\n\nCurrently, Boost tells \nTech in Asia\n that it has more than 10 million users and a merchant base of nearly 500,000 touchpoints in both Malaysia and Indonesia.\n\n\nBut despite having a government-linked company as its parent firm, it still has a lot of ground to cover especially in cementing itself as a dominant player in the fintech space. Axiata is majority owned by Malaysia\u2019s sovereign wealth fund Khazanah Nasional.\n\n\nNotably, Boost was missing from a recent government initiative that channeled credits to Malaysian youth between the ages of 18 and 20. The eligible e-wallet providers chosen for the program were Grab, Shopee, BigPay, and Touch \u2018n Go.\n\n\nThat said, some Kuala Lumpur-based banking analysts that \nTech in Asia\n spoke to say that Boost has a chance in the SME segment due to its exposure in the space. However, they also noted that the sector is familiar territory for the Grab and Sea consortiums, which makes winning market share \u201can uphill battle.\u201d\n\n\nBoost chief Abeykoon tells \nTech in Asia\n that digital banking \u201cis not a green field but more a brown-field venture\u201d for the group, providing it with an \u201cincumbent advantage.\u201d\n\n\nHe points to Boost\u2019s track record in SME financing, among others, as a differentiator. According to Abeykoon, the fintech group has already disbursed about 1 billion ringgit worth of loans in Malaysia, with \u201calmost 42% of our customers having never received credit from other financial service providers before.\u201d\n\n\nBoost\u2019s non-performing loan ratio \u201cremains at below 4% on average in Malaysia,\u201d he adds. Malaysian ratings agency Ram Ratings\u2019 A1/Stable \nrating\n for Boost\u2019s maiden tranche of medium-term notes backs this claim.\n\n\nHere are some other observations:\n\n\n\n\nDespite being owned by a parent firm in the telco industry, some of Boost\u2019s C-suite executives come from a tech background. For example, Boost CTO Norman Noble previously worked at Seek as its director of engineering, while Boost chief business officer Gurpreet Kheera had stints as country head at proptech firm SmartBuild Asia and a consultant at Bain & Company.\n\n\nDiana Boo\u2019s role as chief marketing officer was newly created when Boost Holdings was formed in June 2021. She was previously Lazada Malaysia\u2019s chief marketing officer.\n\n\nFour Boost department heads are also AirAsia alumni:\n\n\nEdwin Ng, Boost\u2019s head of engineering, was a senior manager at AirAsia\u2019s software engineering department from May 2020 to September 2021. He joined Axiata Digital as its head of engineering that year and retained the same role at Boost.\n\n\nGary Foo, who joined Boost as its head of sales and merchants marketing in June 2018, served as AirAsia\u2019s regional head for ancillary marketing.\n\n\nYap Poh Peng was hired as Boost head of analytics and loyalty after she served as chief analytics officer at AirAsia\u2019s Big unit, which manages the airline\u2019s loyalty program, from July 2018 to October 2020.\n\n\nKaren Kow, Boost\u2019s cluster head (loyalty), also worked as head of commercial and strategic partnership at AirAsia\u2019s Big unit from March 2019 to December 2020.\n\n\nBoost Indonesia is led by Stefanus Warsito who joined Axiata Digital in 2019 as a director. He is a finance veteran with stints at HSBC and Modalku, among others. Stefanus reports to CEO Abeykoon.\n\n\n\n\nBoost has only verified with \nTech in Asia\n the data on its C-suite executives and not the heads of its departments. We also checked our information with sources familiar with Boost and publicly available information.\n\n\nYou can also check out our coverage of Boost \nhere\n. If you find any missing or inaccurate data, do reach out to tianwen@techinasia.com so we can fill in the gaps\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.39 ringgit\n\n\nUpdate (June 17, 10:56 a.m.): This article was updated to accurately reflect Karen How\u2019s, Gary Foo\u2019s, Shang Tan\u2019s, Dina Seikh Salleh\u2019s and Feruz Razak\u2019s positions as well certain facts about Boost and its parent, Axiata.\n\n\nCredits\nGraphics:\n Timmy Loen\nEditing:\n Putra Muskita, Tay Tian Wen, and Jaclyn Tiu"}
{"title": "TreeDots to shut down group-buying service this month", "body": "TreeDots\n, a Singapore-based food marketplace, is set to shut down its group-buying service by June 27, 2022, with its last delivery scheduled for the day before.\n\n\n\n\nTreeDots co-founder and CEO Tylor Jong / Photo credit: TreeDots\n\n\n\n\nIn a message to hosts and buyers through Telegram, the firm also said that it would immediately reduce the availability of products on the group buy platform until June 24.\n\n\nThe message said the decision to cease the group-buying service \u201cwas not easy.\u201d\n\n\nInstead of tapping into its B2B infrastructure, the B2c or group buy presented\u00a0\u201d more differences, meaning separate infrastructure to build, than areas of synergies,\u201d Tylor Jong, co-founder and CEO at TreeDots, told\u00a0\nTech in Asia.\u00a0\n\n\nThe development comes almost half a year after the platform, which offers surplus food products at lower prices, raised \nUS$11 million in series A money\n\u00a0and announced plans of expanding in the region. It is not yet known how many jobs will be affected by this closure.\n\n\nTreeDots\u2019 main selling point is connecting buyers to produce rejected for looking imperfect. With operations in Singapore, Malaysia, and Indonesia, the firm claims to have saved \n2,500 tonnes of food\n by diverting surplus food. It also has 120 employees as of March this year.\n\n\nThe firm is looking at internal hiring for affected employees, and has shared their resumes to other companies with their permission, added Jong.\n\n\nSingapore saw a boost in \ngroup-buying services in 2021\n\u00a0amid a growing trend of \nbulk purchasing\n\u00a0in China. Such services generally \nlower product prices\n for individuals by ordering huge quantities before splitting the costs among buyers.\n\n\nAsia has been seeing a series of layoffs, with more than 13,000 workers getting the boot in March alone. Shopee, for one, is \ntrimming teams in Southeast Asia,\n\u00a0while \ncryptocurrency\n and \nlogistics\n players are also affected.\n\n\nSee Also: \nShopee layoffs hit payments, food delivery and LatAm teams\n\n\nTrack all the layoffs across Asia \nhere\n and help us maintain this list by \nfilling this form\n with any information on job cuts and affected employees.\n\n\nUpdate: (June 17, 2022, 3:30pm SGT): TreeDots side on the issue has been added."}
{"title": "AirAsia CEO seeks New York listing in 2023", "body": "Capital A\n is looking to list low-cost carrier AirAsia and its proprietary super app on the New York Stock Exchange, believing the time is right for the IPOs, \nreported\n \nthe Financial Times.\n\n\n\n\nTony Fernandes, AirAsia Group\u2019s chief executive / Photo credit: World Travel & Tourism Council\n\n\n\n\nAccording to Capital A CEO Tony Fernandes, the group has already begun its compliance work. He said the AirAsia listing will be slated for \u201csometime next year,\u201d and the AirAsia super app will follow after that. He also believes he will be able to bring on investors based on his past success when he went from an entertainment industry executive to an airline operator.\n\n\nDuring the pandemic, the group \u2013 which primarily operated the low-cost carrier \u2013 moved to ecommerce and other digital businesses like ride-hailing and fintech.\n\n\nSee also: \nOrg chart: The C-suites powering Capital A\n\n\nCapital A\u2019s shares on the Malaysian stock exchange are still under \nPractice Note 17\n \u2013 a sign of a listed company in financial distress. However, Fernandes insisted that it is an accounting issue that \u201cdoesn\u2019t reflect the fundamentals of the company.\u201d"}
{"title": "Carsome names Nick Nash, others to new advisory board", "body": "Malaysia-based car marketplace \nCarsome\n announced that it has appointed a new advisory board, which aims to help accelerate the company\u2019s regional expansion and growth.\n\n\n\n\nPhoto credit: Carsome\n\n\n\n\nThe board currently has four members: \nNicholas Nash\n, managing partner and co-founder of Asia Partners; \nHarish Bahl\n, founder of Smile Group; \nPandu Sjahrir\n, managing partner of Indies Capital; and \nDan Neary\n, vice president of Meta Asia Pacific. Nash will also serve as board chairman.\n\n\nCarsome said the advisory board\u2019s experience in scaling tech companies across Southeast Asia will help it refine its decision-making capability as well as place the company\u2019s next step on firmer ground.\n\n\n\u201cWe are confident that their expertise, experience, and network will invaluably help in Carsome\u2019s mission to deliver trust, choice, and transparency to our customers across the car transaction and ownership experiences across Southeast Asia,\u201d said \nEric Cheng\n, Carsome co-founder and CEO, in a statement.\n\n\nSee also: \nInside Carsome\u2019s and Carro\u2019s all-out war in Malaysia\n\n\nFounded in 2015 by Eric Cheng and \nJiun Ee Teoh\n, Carsome is the \nfirst tech unicorn\n in Malaysia. It is one of Southeast Asia\u2019s largest automotive ecommerce platforms, having already expanded to Indonesia, Thailand, and Singapore.\n\n\nIn January, it \nraised\n US$290 million in a round led by 65 Equity Partners, SeaTown Holdings, and Qatar Investment Authority, which brought the car marketplace\u2019s total valuation to roughly US$1.7 billion."}
{"title": "Malaysia\u2019s iPrice Group sacks 20% of employees", "body": "Malaysia-based iPrice Group, a shopping aggregator, has laid off 20% of its employees. \nTech In Asia\n has verified that the company has let go of 50 employees.\n\n\n\n\nPhoto credit: iPrice\n\n\n\n\nThe firm said that the measures were taken to focus the business on its core mission \u201cto help people save money\u201d shopping online. Currently, the firm is following legal and contractual requirements and helping laid-off staff find new opportunities, according to a statement.\n\n\nFounded by \nDavid Chmela\u0159\n and \nHeinrich Wendel\n in 2014, iPrice helps users shop for products online by providing price comparisons, seller discounts, and promotions.\n\n\n\u201cWhilst we proved these new services all resonated with online shoppers, they each required further investment with a longer-term payback,\u201d Chmela\u0159 said. He added that given the uncertain economic environment, the company will strive to be \u201chyper-focused\u201d on its core product.\n\n\nSee also: \nTracking layoffs across Asia\u2019s startup ecosystem\n\n\nThe company \nsaid\n that two-thirds of Southeast Asian shoppers overpay by 10% when online shopping and its site publishes 7.5 billion offers to help its 100 million users find cheaper deals.\n\n\nThe job cuts come three months after iPrice Group received a US$5 million investment from Japanese firms KDDI Corporation and Itochu Corporation."}
{"title": "J&T Express buys $136m land in Malaysia for logistics center", "body": "J&T Express\n, an Indonesia-based logistics firm, has acquired a 30-acre parcel of land in Malaysia for 600 million ringgit (US$136.4 million).\n\n\n\n\nPhoto credit: J&T\n\n\n\n\nThe land is located in Bandar Rimbayu, a township around 30 kilometers away from Port Klang, the main gateway by sea into Malaysia. It will be used to build an integrated logistics center for express distribution, logistics, transportation, and warehousing to meet J&T Express\u2019 business needs in the country.\n\n\nRoy Zeng, CEO of J&T Express Malaysia, called Bandar Rimbayu \u201cthe golden triangle of Selangor,\u201d believing in the future development potential of the area.\n\n\n\u201cThe new facility will be fitted with our advanced technology, which enables us to better tap on our existing networks to meet the growing demands of the burgeoning ecommerce industry in Southeast Asia,\u201d said\u00a0Charles Hou, group vice president of J&T Express.\n\n\nSee also: \nThe keys to J&T Express\u2019 rapid global expansion.\n\n\nFounded in 2015, J&T Express now has localized express networks in 12 countries: China, Indonesia, Vietnam, Malaysia, Thailand, the Philippines, Cambodia, Singapore, Saudi Arabia, the United Arab Emirates, Mexico, and Brazil. The firm serves over 2 billion people.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.40 ringgit."}
{"title": "Binance to work with Malaysian cryptocurrency exchanges to expand locally", "body": "Global cryptocurrency exchange \nBinance\n is open to working with Malaysian cryptocurrency exchanges to accelerate adoption of the digital asset in the country.\n\n\n\n\nChangpeng Zhao, CEO and founder of Binance / Photo credit: MX Global\n\n\n\n\nBinance CEO and founder \nChangpeng Zhao\n said the plan was to \u201cgo global by going local.\u201d This would involve working with partners and regulators to shape safe ecosystems that would encourage mass adoption.\n\n\n\u201cProtecting users costs a lot of money in the short term, but in the long run it will be a big win,\u201d he said at the recent Crypto Market Trends and Future Opportunities conference organized by Malaysian crypto exchange MX Global.\n\n\nBinance on March 1 invested an undisclosed amount in \nMX Global\n, which also received funding from Bursa Malaysia-listed tech company Cuscapi.\n\n\nMX Global CEO \nFadzli Shah Anuar\n said that beyond equity investment, Binance would also be assisting the company through technology and talent transfer.\n\n\nAnuar and Zhao \u2013 who both spoke in the same conference session \u2013 said that instead of competing, crypto exchanges should work together to spread awareness of crypto.\n\n\nSee also: \nThe tech mogul backing Binance\u2019s Malaysia breakthrough\n\n\nIn July 2021, the Securities Commission Malaysia issued a cease and desist against Binance and Zhao for operating without a license, effectively barring the company from directly setting up shop in the country.\n\n\nThe firm was believed to be working on a collaboration with a local digital asset exchange operator at the time, but the deal did not materialize due to the ban.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.21 ringgit."}
{"title": "Malaysian ecommerce enabler partners with TikTok Shop", "body": "Malaysia-based \nMomentum Commerce\n, an ecommerce enabler, has been authorized as a TikTok Shop partner in the country.\n\n\n\n\nPhoto credit: \nAscannio / Shutterstock\n\n\n\n\nThis collaboration lets Momentum Commerce launch its brands \u2013 such as Eucerin, Nivea, Al-Ikhsan Sports, and Wardah \u2013 on the platform.\n\n\n\u201cWe initially explored the potential of TikTok Shop by testing the waters with a select number of our brands and, as shopper interest snowballed quickly, we were able to garner significant gross merchandise value for our brands in a single livestream, over time strengthening their dominance in the market,\u201d said \nHans-Peter Ressel\n, co-founder and CEO of Momentum Commerce.\n\n\nSince partnering with Momentum Commerce, Indonesian beauty brand Wardah has seen a 36x growth in its number of followers in 30 days due to its livestreaming and short video content. This has nudged Wardah\u2019s sales conversion up to above 5%, the ecommerce enabler said in a statement.\n\n\nSee also: \nExplaining TikTok\u2019s ecommerce bet in Southeast Asia\n\n\nFounded in 2019 by Ressel and Eddy Yap, Momentum Commerce provides its clients with a suite of solutions that include content creation, end-to-end livestreaming services, talent management, PR and brand partnerships, AI analytics, logistics, fulfillment, and store management. The firm also provides a production studio and team to its brands for creating short-form video content.\n\n\nAccording to the company, social commerce is projected to grow over 45% year on year."}
{"title": "Microsoft, Malaysia gov\u2019t team up to boost digital literacy", "body": "Microsoft and the Malaysian government have entered into a partnership to provide digital skills training to civil servants, reported \nDigital News Asia\n.\n\n\nThe tie-up will bring 80% of the government\u2019s data storage to the cloud and 80% of its end-to-end service transactions online. It will also aim to have all civil servants become digitally literate.\n\n\nMicrosoft will be working with government agencies MyDigital Corp and the Malaysian Administrative Modernisation and Management Planning Unit (Mamput). The US company had earlier signed a cloud framework agreement with Mamput to invest in the country\u2019s digital transformation.\n\n\nLast year, Microsoft announced that it would be building its \nfirst data center in Malaysia\n to cater to local customers in the public and private sectors.\n\n\nThe global tech giant also launched its \nMicrosoft for Startups Founders Hub\n program \nin Asia\n earlier this year, offering up to US$300,000 in benefits and credits.\n\n\nSee also: \nMalaysia bans Dickheads NFT"}
{"title": "HK think tank\u2019s edtech venture bags $1m in pre-seed round", "body": "Gift.ed,\n an edtech startup incorporated in Singapore, has bagged US$1 million in pre-seed funding from investment holding company \nIMC Pan Asia Alliance\n.\n\n\n\n\nJanet Teo (CEO, GIFT.ed) and Chandran Nair (Global Institute For Tomorrow Founder and GIFT.ed Chairman) | Photo credit: GIFT.ed\n\n\n\n\nThe online education platform is a venture of Hong Kong-based think tank \nGlobal Institute for Tomorrow\n (GIFT) and will be set for beta launch in the second quarter of 2023. It will incorporate the think tank\u2019s existing publications and executive education curriculum, which is based on 15 years of leadership programs and workshops.\n\n\nGift.ed\u2019s educational content will also be based on insights from GIFT\u2019s projects in agribusiness, fintech, and healthcare, among others. To personalize corporate education, the platform will match the client\u2019s organizational goals and interests with relevant content.\n\n\nGift.ed CEO \nJanet Teo\n is leading the company\u2019s operations out of GIFT\u2019s regional office in Kuala Lumpur. The platform will be launched amid a growing corporate e-learning market, she said.\n\n\nGIFT plans to tap its existing client pool to test the platform, with some already involved in platform design and course development.\n\n\nSee also:\n Why Southeast Asia\u2019s edtech sector is in a class of its own"}
{"title": "Funding Societies launches Shariah-compliant financing products", "body": "Funding Societies\n, a digital financing company headquartered in Singapore, is launching new Shariah-compliant trade financing products for MSMEs in Malaysia.\n\n\nThe financing solutions are based on \nCommodity Murabahah (Tawarruq)\n, or the practice of buying commodities with deferred prices before selling to a third party.\n\n\n\n\nWong Kah Meng, co-founder and CEO of Funding Societies Malaysia / Photo Credit: Funding Societies\n\n\n\n\nThe zero-collateral financing is available for Malaysian MSMEs that have been operating for at least a year. Funding Societies offers a credit line of up to 1 million ringgit (US$228,000).\n\n\nThe Islamic fintech (iFinTech) solutions have no hidden fees and can be repaid through flexible options, the company website said. Businesses that are Shariah-compliant \u2013 or those that do not primarily work in the tobacco, liquor, or gambling sectors \u2013 can apply.\n\n\nThe fintech company partnered with \nMasryef Advisory\n for guidance on Shariah principles.\n\n\nThese financing products are aimed at benefiting both Muslim and non-Muslim investors and will give underserved MSMEs more access to Islamic financing, says \nKhairil Anuar Mohd Noor\n, principal at Masryef Advisory.\n\n\nSee also: \nAre Malaysia\u2019s startup efforts finally paying off?\n\n\nCurrency converted from Malaysian Ringgit to US Dollar: US$1 = 4.39 ringgit"}
{"title": "Malaysia-based Cradle Fund\u2019s group CEO steps down", "body": "Cradle Fund\n, an early-stage startup venture fund owned by the Malaysian government, announced that \nRafiza Ghazali\n will step down as group CEO with effect from May 31. Ghazali was leaving her role to pursue other opportunities, the firm said.\n\n\n\n\nPhoto credit: Cradle Fund\n\n\n\n\nThe board has appointed Norman Matthieu Vanhaecke, currently senior vice president of corporate services, as interim group CEO starting June, until a permanent replacement is found.\n\n\nThe company said that Ghazali helped Cradle develop into a startup ecosystem builder and become the coordinating agency for the \nMalaysian Startup Ecosystem Roadmap\n during her tenure.\n\n\nCradle is Malaysia\u2019s \u201cearly-stage startup influencer,\u201d incorporated under the country\u2019s ministry of finance to fund tech startups through its Cradle Investment Program. Currently administered by the Ministry of Science, Technology, and Innovation, Cradle has supported over 1,000 startups so far.\n\n\nThe firm recently launched its first \naccelerator program\n, coaching 36 startups on subjects such as funding and implementing business strategies.\n\n\nSee also: \nThese are the most active investors in Southeast Asia\u2019s startups\n "}
{"title": "Grab launches new financial services brand", "body": "Grab Financial Group,\n a unit of the Southeast Asian \nsuper app\n, will launch a new brand combining its payments and financial services.\n\n\nCalled \nGrabFin\n, the brand will serve as a single entry point for users to access digital payments, insurance, lending, and wealth management offerings on the Grab app.\n\n\n\n\nPhoto credit: Grab\n\n\n\n\nGrabFin will first be launched in Singapore and Malaysia before rolling out in other Southeast Asian markets in the next few months. The integrated platform will simplify access to financial services and ensure multi-layered security features for transactions, said \nKell Jay Lim\n, the head of GrabFin.\n\n\nThe new firm will now be the parent brand for all of Grab\u2019s financial services outside of digital banks. As a result, Grab Financial Group will oversee two segments: GrabFin and digibanks.\n\n\nAlongside GrabFin, the financial services unit also announced its new investment product \nEarn+\n for Singapore-based Grab users. The offering, which has no maximum investment limit or lock-in period, has a projected yield of 2% to 2.5% per year.\n\n\nSee also: \nGrab\u2019s financial health in 9 charts\n\n\n\u201cEarn+ provides our users with access to low-risk, investment-grade bond portfolios, which were previously only available to institutional investors,\u201d said \nWenbin Wong\n, head of GrabFin Singapore.\n\n\nThe announcement follows Grab reporting a \n6% year-over-year growth\n in revenue for the first quarter of 2022. The startup also saw its adjusted \nEBITDA\n swing to a loss of US$287 million for the quarter, from US$111 million during the same period a year ago."}
{"title": "His resourcefulness got him a job at Lalamove", "body": "\n\nIn 2018, Aaron Yesudian had his eyes on a driver operations associate role at \nLalamove\n, which had just entered the Malaysian market at the time.\n\n\nHowever, he had just graduated and obtained a bachelor\u2019s degree in chemical engineering the year before, and he had no experience in or knowledge about the logistics industry.\n\n\n\n\nOn this episode of \nHow to Get a Job at a Unicorn\n, Yesudian recounts how he had to go the extra mile when he applied for a position with the logistics startup and shares some advice for fresh graduates looking to score a gig with a billion-dollar company.\n\n\nTimecodes:\n\n\n00:00 \u2013 What did you want to be when you were a kid?\n\n01:34 \u2013 How to get a job at a unicorn as a fresh graduate\n\n02:10 \u2013 Aaron Yesudian\u2019s days in school\n\n02:47 \u2013 Dashed dreams of becoming a pilot\n\n04:16 \u2013 Looking for a job in the tech world\n\n05:10 \u2013 Applying for a role at Lalamove\n\n06:22 \u2013 Going the extra mile to know the ins and outs of the logistics scene\n\n07:54 \u2013 Cinching the gig\n\n08:55 \u2013 When Covid-19 hit\n\n10:17 \u2013 Getting recognition \u2013 and a promotion\n\n11:49 \u2013 Advice for anyone interested in joining Lalamove\n\n15:30 \u2013 Plans for the future of his career\n\n\nHost:\n\n\n\n\n\n\nPeter Bithos\n, CEO of Seek Asia, the parent company of JobStreet and JobsDB in Southeast Asia\n\n\n\n\nFeatured Interviewee:\n\n\n\n\n\n\nAaron Yesudian\n, driver operations manager, Lalamove Malaysia\n\n\n\n\n\n\nJobStreet by Seek Asia is Southeast Asia\u2019s leading online jobs portal. Visit \nJobStreet\n now to find your dream job.\n\n\n\n\nEpisode Transcript:\n\n\nPeter Bithos (VO):\n\nWhat did you want to be when you were a kid? Or, if you\u2019re still a kid, what do you want to be when you grow up?\n\n\nI wanted to be a diplomat, working for the US State Department, traveling from country to country, in exotic places \u2013 maybe even an ambassador one day.\n\n\nFor Aaron Yesudian, when he was growing up in Kuala Lumpur, he wanted to be a truck driver.\n\n\nAaron Yesudian:\n\nAs a kid, around the ages of six to seven, I wanted to actually be a truck driver.\n\n\nPeter Bithos:\n\nA truck driver?\n\n\nAaron Yesudian:\n\nYeah, yeah.\n\n\nPeter Bithos:\n\nLike, one of the big, like, 18-wheeler trucks?\n\n\nAaron Yesudian:\n\nYeah, correct. I think that was purely due to my fascination with Optimus Prime at that time, right? And I remember going down to Penang, which is in the North of KL here, and I always used to count how many trucks we used to pass, right? Just due to my fascination with trucks at that time.\n\n\nPeter Bithos (VO):\n\nBut, as most of us know, childhood dreams don\u2019t always come true. So instead of driving a truck today, Aaron manages fleets of delivery truck drivers in Malaysia for Lalamove, one of Asia\u2019s top same-day delivery and courier service providers.\n\n\nFor the uninitiated, Lalamove became one of Hong Kong\u2019s first unicorns in 2019 when its valuation hit the US$1 billion mark. But today, the company\u2019s valuation has grown even further. And Aaron managed to get a job there right after graduating from university.\n\n\nFrom JobStreet and \nTech in Asia\n, this is \nHow to Get a Job at a Unicorn\n, a podcast where I talk to employees at Asia\u2019s top tech companies to find out exactly how they landed their gigs.\n\n\nI\u2019m Peter Bithos, the CEO of Seek Asia, the parent company of JobStreet and jobsDB around Southeast Asia, and in this episode, I\u2019m going to tell you the story of how Aaron got to work for Lalamove as a fresh graduate.\n\n\nPeter Bithos:\n\nSo let\u2019s go back, Aaron, way back. What did you do in school? What did you study? And what were you hoping to do when you, like\u2026 I don\u2019t think you woke up in the morning and said, \u201cI wanna work for Lalamove.\u201d\n\n\nAaron Yesudian:\n\nHaha yeah, true, true. I think, growing up, what career and what profession I wanted to pursue was a lot of things, right?\n\n\nPeter Bithos (VO):\n\nAs we\u2019ve established earlier, Aaron had a fascination with trucks and wanted to become a truck driver as a kid \u2013 who doesn\u2019t? Though that affinity for large vehicles evidently remains until today, teenage Aaron had a different idea of who he wanted to be.\n\n\nAaron Yesudian:\n\nAnd then along my teenage years, I decided to pursue a career as a pilot.\n\n\nPeter Bithos:\n\nA pilot?\n\n\nAaron Yesudian:\n\nYeah, correct. And this was because my dad used to take me for all these air shows that used to be in Langkawi or\u2026 back then it was quite a lot of air shows at the Subang Airport.\n\n\nPeter Bithos:\n\nOh, yeah?\n\n\nAaron Yesudian:\n\nYeah, so I used to go and I\u2019m very fascinated with airplanes as well, right? Until today, it\u2019s always like I\u2019m seeing it for the first time and it always excites me, and then I\u2019ll just take my phone, open up flight radar, and see what aircraft is flying over, where its destination is.\n\n\nPeter Bithos (VO):\n\nAaron was determined to become a pilot \u2013 even after finishing his chemical engineering degree at university. But that dream was dashed as well.\n\n\nAaron Yesudian:\n\nSo when I graduated, I think this was about four years back now, right? And I continued to apply for cadet programs as a pilot as well, and I got through to Singapore Airlines, right? And I went for the interview, right? And it was there that I decided halfway through the application program that I did not want to do this anymore for two reasons.\n\n\nOne was because I didn\u2019t know I had an eye issue until I went for the interview, right? So my right eye is a bit bad and they said, like, \u201cWoah, you might need to consider another career option.\u201d And the second was I decided, like, I wanted to do something more in a leadership role.\n\n\nPeter Bithos (VO):\n\nWith a new goal in mind, Aaron set out to find a job. But the first few months of his job hunt proved challenging.\n\n\nAaron Yesudian:\n\nI did consider a lot of companies related to what I studied, right? In fact, I actually sent in my resume in person, right? I go to the company and I send it in. But actually, to be frank with you, what happened was I did not get any response from the industries that I was relevant to at that time.\n\n\nPeter Bithos (VO):\n\nThat\u2019s when Aaron turned his attention to the tech startup world. At the time, the innovation scene was already bustling in Malaysia with several homegrown startups \u2013 including yours truly at JobStreet \u2013 cropping up and many more startups from overseas setting up operations there.\n\n\nOne of those startups was Lalamove, which had just entered the Malaysian market in 2018. And at first glance, Aaron was sold on working for the company.\n\n\nAaron Yesudian:\n\nSo I did a bit of homework on them and what Lalamove is and what they stood for. And when I looked up \u2013 because it was available on YouTube and there was a lot of articles on Lalamove at that time itself \u2013 I think the thing that actually attracted me to Lalamove was the flexibility they provided to the potential delivery partners to choose their own jobs, right? They were flexible to do it at their own time, at their own pace, and they could choose what jobs they wanted.\n\n\nI sent in my resume, and then I got called up. So they called me and they spoke to me, and they said, like, \u201cHey, here\u2019s a case study you\u2019ve got to do,\u201d about the local logistics landscape in Kuala Lumpur at that time, right? \u201cYou go and just do the pros and cons of local logistics landscape, and then you get back to us.\u201d\n\n\nPeter Bithos (VO):\n\nHere\u2019s the problem: Aaron had a degree in chemical engineering \u2013 not logistics. But rather than be deterred by the challenge, Aaron decided to take that challenge up.\n\n\nAaron Yesudian:\n\nThey wanted to know the friction points for the local logistics companies right here and what do they face on a day-to-day basis, right? So to be honest, right, when I got the case study, I was, like, \u201cOh, where am I going to find a driver?\u201d\n\n\nPeter Bithos:\n\nI was just going to ask you, like, how did you prepare for that case study as a chemical engineer?\n\n\nAaron Yesudian:\n\nCorrect. I did not know where to begin with, right? So when I saw the email, I was at the gym, right? So I was, like, \u201cOh, where am I going to find a logistics driver?\u201d So as I was exiting the gym, I saw this truck \u2013 it was a logistics company. So I told myself, \u201cOK, I\u2019ll just follow this truck. If he doesn\u2019t stop in 10 minutes, then I will go home.\u201d\n\n\nSo I just followed him and, in three minutes, he stopped at one of the offices nearby, the loading bay. So he stopped and he was doing his thing. Then I approached him and said, \u201cHey, do you have five minutes? Can I just interview you?\u201d And he was kind enough to actually take time to speak to me very quickly on what friction he faces on a day-to-day basis.\n\n\nPeter Bithos (VO):\n\nSo let\u2019s just take a pause. You know what? Props to Aaron because I love that story. You know, I\u2019ve conducted a few interviews in my time and you have no idea how few candidates actually take the time to do that kind of research when interviewing. Like, it sounds so easy, doesn\u2019t it? But who just thinks to walk up to a stranger and say, \u201cHey, talk to me for a while, will you?\u201d\n\n\nAnd what would you know, it paid off. Just over a week after presenting his case study to Lalamove\u2019s city launcher who came in from Hong Kong, Aaron was hired as a driver operations associate.\n\n\nAaron Yesudian:\n\nWhen I got the job, I was actually really happy, right? Because at that time, I think it was already five months since I finished my studies and \u2013 you know, moms being moms \u2013 on a day-to-day basis, she never failed to remind me that, \u201cHey, you\u2019re still not working.\u201d So I was really happy and I couldn\u2019t wait to start.\n\n\nSo what I did was, when I got offered the role by HR at that time, I did ask her, like, \u201cHey, is there anything I can do? And I can come in earlier to help out as well,\u201d because I know they were already setting up and I wanted to be, like, in the hole from ground zero kind of thing, right, and get the whole experience. But at that time, she said that they had sufficient manpower so I could come in at the start date that they already had communicated to me.\n\n\nPeter Bithos (VO):\n\nAnd so Aaron began at his new gig at Lalamove, managing delivery driver partners, taking charge of driver acquisition and training, and helping the team shape the company into the decacorn it is today.\n\n\nBut while he had a great time during his first two years at Lalamove, 2020 was a huge challenge because of a little thing called Covid-19, maybe you\u2019ve heard of it. Despite that, Aaron says that 2020 was when he accomplished his biggest achievement at the company.\n\n\nAaron Yesudian:\n\nThere was a lot of people getting retrenched and whatsoever so here in Lalamove, we were a source of replacement income, right? Because if you work in a company for six to 10 years or for a long period of time, I think if you suddenly get retrenched, the first thing is you\u2019re not sure of what to do. You don\u2019t even know where your resume is, you don\u2019t know how to\u2026 and you\u2019re all over the place, right? So Lalamove was a platform for them to find replacement income until they could find something maybe more stable or they\u2019re more inclined to. Because as soon as that happens, you\u2019re all over the place and you need something just to go, like, on a day-to-day kind of thing. So the biggest milestone, I think, the biggest achievement here will be providing a platform for these partners, right, when the pandemic hit.\n\n\nPeter Bithos (VO):\n\nHeart of gold, this one. You just want to give him a hug, don\u2019t you? Actually, you probably want to get a hug from him. And I\u2019m sure his bosses recognized his passion because in 2021, Aaron got promoted to the role of driver operations manager \u2013 well deserved \u2013 attaining the leadership role that he\u2019d sought when he graduated from school all those years ago.\n\n\nPeter Bithos:\n\nDo you have a team now reporting to you? Are there little \u201cAarons\u201d going around?\n\n\nAaron Yesudian:\n\nYeah, I have a number of colleagues now reporting to me on a day-to-day basis, weekly basis, you would say.\n\n\nPeter Bithos:\n\nHow do you like that jump? Because you mentioned earlier you were thinking about being a pilot, which is a very solo kind of career.\n\n\nAaron Yesudian:\n\nYeah, correct, right, right.\n\n\nPeter Bithos:\n\nNow you\u2019re managing people. So now you\u2019re doing the thing that you didn\u2019t become a pilot because you wanted to do. What does it feel like to lead people? How are you finding it?\n\n\nAaron Yesudian:\n\nYeah, actually, I find it quite interesting because I\u2019m still learning too, right? I have a long way to go for that and speaking to them and seeing what actually motivates them.\n\n\nI think that the hardest thing, I\u2019d say, is finding the time to actually speak one-on-one, right? To speak to them and getting them to see what motivates them, where they see themselves maybe in three to five years\u2019 time, and how I can help them achieve their intended goals, right, based on what they set out to do.\n\n\nPeter Bithos (VO):\n\nOn top of that, Aaron is now in a position of hiring people to join his team. Having been with the company since it first launched in Malaysia and helping build that company to the logistics giant that it is today, his advice for anyone \u2013 anyone \u2013 who might be interested in joining him is to be a little bit like he was just four years ago.\n\n\nAaron Yesudian:\n\nThe two words that come up straight to my mind is proactiveness and hard work, right? But it\u2019s a bit hard to gauge, right, during an interview \u2013\n\n\nPeter Bithos:\n\nRight, how do you\u2026 what do you ask or what do you do to help suss that out?\n\n\nAaron Yesudian:\n\nSo when we speak to them first, of course, there is the whole onboarding process that we follow, right? And when we first speak to the potential candidate as well, what we do is we give them a case study to do. And of course, the case study covers quite a big range of things that they need to do. And when they come to us, they will need to present. So they need to be able to have and hold a conversation.\n\n\nAnd it\u2019s not about the case study that they actually prepared, right? Because most of the time, we already have the information that they are going to bring to us. But it\u2019s more to how they actually carry out the case study.\n\n\nWhen going for an interview, I think the candidate has to do their own homework, right? They need to actually read up more on the company itself and know what the company stands for and what they are potentially going to do. Don\u2019t come to an interview not prepared. I mean, being nervous is one thing, right? It\u2019s OK. It\u2019s part of it. They just need to come in and have a conversation, right? Hold the conversation, speak. So for them to know, before coming for an interview is always to do their homework.\n\n\nI think what fresh grads can actually do is to always be better prepared, right? I mean, sometimes we do have people with experience, and based on what we are hiring for. But I think what\u2019s very important coming into the job is the soft skills, right? The communication aspect, the teamwork aspect, because everything else can be taught, we can learn together, and we can grow into it, right? Of course, if there is a sudden business need for a certain role, of course, we might need to hire someone with a little bit more experience, right? But I think, of course, fresh grads will always be given the chance. And if they can come in during the interview and prove themselves to us, then, hey, why not, right?\n\n\nPeter Bithos (VO):\n\nHonestly, that might sound like overly simplistic advice, but even at my level, while I\u2019m interviewing, you\u2019d be surprised at the number of senior tech execs who come in without doing any homework on the company or the job that they\u2019re applying for. So for all you fresh grads out there, mid-career, great managers, or even execs or people listening for whatever set of reasons: Do your homework.\n\n\nAnyway, back to Aaron, who\u2019ll now be celebrating four years at Lalamove this year, I wondered whether he had any new plans for his career, but he told me he\u2019s not going anywhere \u2013 at least not for now.\n\n\nPeter Bithos:\n\nSo just, you know, just to close out with a last couple of questions: Lalamove in general, you still love it?\n\n\nAaron Yesudian:\n\nOh, I\u2019ve loved it from day one, right? I think Lalamove is kind of my home.\n\n\nPeter Bithos:\n\nAw, that\u2019s very nice. And what makes it\u2026 you mentioned the people earlier and the mission in terms of giving people opportunity to make income. So is there anything else that, like, makes you stay there and be such a good ambassador for Lalamove?\n\n\nAaron Yesudian:\n\nI think it\u2019s as you mentioned, Peter, the people and the culture that we have here, right? It\u2019s constantly helping one another whether it\u2019s in day-to-day tasks, whether it\u2019s something else outside of work as well. It\u2019s a cohesive unit here, right? Everyone looks out for one another, everyone is ever willing to help, they\u2019re always learning together.\n\n\nPeter Bithos:\n\nThat\u2019s fantastic, yeah. So what are the plans? You still want to be a pilot one day, far-off in the future, you think?\n\n\nAaron Yesudian:\n\nI think I\u2019ll pass on that, actually, Peter.\n\n\nPeter Bithos:\n\nSo what\u2019s the future of Aaron\u2019s tech career? What\u2019s it look like? Like, if you fast forward five, 10 years, do you have an idea of what you\u2019d like to do? Or what you see yourself doing?\n\n\nAaron Yesudian:\n\nActually, I do. I\u2019ve actually told myself that, maybe in five years, I want to start my own business.\n\n\nPeter Bithos:\n\nReally?\n\n\nAaron Yesudian:\n\nYeah.\n\n\nPeter Bithos:\n\nA young and aspiring entrepreneur. What would you\u2026 do you have a concept you\u2019re working up in your head or\u2026?\n\n\nAaron Yesudian:\n\nActually, I want to do something that\u2019s easily available in everybody\u2019s homes, right? Something\u2026 because it\u2019s always about selling, right? Whether it\u2019s a product or a service. So something that\u2019s available in everybody\u2019s homes and in terms of\u2026 I\u2019ll get recurring orders as well.\n\n\nPeter Bithos:\n\nYeah, yeah, a good business model is important.\n\n\nAaron Yesudian:\n\nYeah.\n\n\nPeter Bithos:\n\nSo in between now and then\u2026 so let\u2019s say you start a business five years from now, right? You come up with your great idea and you\u2019re off and running. Are there additional skills or do you think about what skills you need prior to doing it?\n\n\nAaron Yesudian:\n\nYeah, actually, I\u2019ve thought about it. And whatever decision that\u2026 I\u2019ve told myself, whatever decision that I have to make, to achieve that goal in five years is to build towards that. Maybe now, in Lalamove, I already know how to operationally run a company, right? And see if the next decision I make is to go somewhere fresh again, completely new, right? Maybe before even raising capital or something, right?\n\n\nPeter Bithos:\n\nFantastic.\n\n\nPeter Bithos (VO):\n\nYou know, I get the fortunate opportunity to interact with so many people across industries, and it was so fascinating hearing Aaron\u2019s story. He\u2019s got a great career, and the best part is that he\u2019s only just getting started. Who knows? We could someday hear about Aaron Yesudian, the entrepreneur, in a few years.\n\n\nBut until then, that\u2019s all the time we have for today. Thank you so much for listening. How to Get a Job at a Unicorn is a podcast by Tech in Asia, produced in partnership with us over here at JobStreet. If you\u2019re looking for a job, find us at jobstreet.com and, hopefully, we\u2019ll get you started at your own dream job real soon.\n\n\nSpecial thanks, of course, to Aaron Yesudian for sharing his amazing story. If you wanna find him, we\u2019ll include some links to his LinkedIn profile in the show notes down below.\n\n\nDon\u2019t forget to give us a follow and, if you\u2019re feeling up to it, why not give us five stars on whatever app you\u2019re listening on? Make sure to check out our other episodes too \u2013 we\u2019ve got people from Grab and GoTo Group talking about how they landed their jobs and sharing tips for anyone who wants to join them.\n\n\nThat\u2019s it for this episode. My name\u2019s Peter Bithos. Thanks for joining, and I hope you join us again soon."}
{"title": "Grab vies for AmBank despite tricky nature of deal", "body": "Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a Premium subscription\n.\n\n\nHi readers,\n\n\nGrab\u2019s offline-online strategy is back in vogue after the ride-hailing giant was said to be \nnegotiating a majority stake\n in AMMB Holdings (AmBank), Malaysia\u2019s fourth-largest bank by assets.\n\n\nGrab is looking to acquire the stakes of AmBank\u2019s two largest shareholders: the Australia and New Zealand Banking Group (ANZ) and Azman Hashim, the Malaysian bank\u2019s former chairperson. ANZ owns a 21.68% stake in the bank while Azman, a veteran banker who led AmBank from 1982 to January 2022, holds 11.83%.\n\n\nThe last time we read about this potential acquisition was when Grab bought Malaysian grocery chain Jaya Grocer early this year.\n\n\nHowever, there are two differences this time: First, the AmBank acquisition hasn\u2019t been confirmed. Grab didn\u2019t comment when we asked to verify the news. Second, AmBank is a traditional institution, meaning it is tightly regulated by Bank Negara Malaysia (BNM), which makes this possible purchase even trickier.\n\n\nNow, Grab, together with Singtel, has snagged a digital banking license in the country. And what\u2019s interesting here is that BNM has liberalized the space, allowing foreign entities to hold a majority stake in and ultimately own a digital bank.\n\n\nAccording to BNM, three out of the five license winners are Malaysian-owned in that Malaysian entities hold a majority stake in their respective consortia. Grab-Singtel is considered foreign despite having Kuok Brothers, controlled by Malaysian tycoon Robert Kuok, as a partner.\n\n\nAll these digital banks need to do moving forward is adhere to the central bank\u2019s guidelines and cross the required hurdles as agreed by all stakeholders.\n\n\nThese are all well and good. But, owning an incumbent like AmBank is a different ball game. BNM wields huge clout over who sits on the boards of these banks, and it also determines who can own a substantial stake in them.\n\n\nThese laws came into effect after the 1997-1998 Asian financial crisis when BNM mandated mergers between a handful of large-cap banks in the country.\n\n\nAmBank is a good example of these laws taking effect. Back in 2017, US-based private equity firm TPG Newbridge was reported to be negotiating with then AmBank chairperson Azman to purchase ANZ\u2019s stake in the bank.\n\n\nHowever, BNM \ndid not green light\n the deal because the move went against the central bank\u2019s policy of not having a private equity firm as a substantial shareholder of a bank. So it\u2019s clear that banks can\u2019t simply sell their strategic stake to the highest bidder.\n\n\nAlso, legislation dictates that no individual is allowed to hold more than a 10% interest in shares in any local financial institution.\n\n\nNow here\u2019s the fun part: There\u2019s a so-called grandfather rule in the banking scene that only allows three seasoned bankers in the country to own more than 10% in their respective banks. In AmBank\u2019s case, these bankers would be Azman, Quek Leng Chan of Hong Leong Financial Group, and Public Bank\u2019s Teh Hong Piow.\n\n\nThe reason for the trio\u2019s exemption is that their personal stakes in the respective banks were acquired before Malaysia\u2019s banking and financial institution act was enforced in 1989.\n\n\nIndustry stalwarts and observers have expected this unwritten rule to be challenged \nsince 2016\n.\n\n\nThere are practical reasons for such a challenge, especially now: AmBank is looking to put its checkered past behind it after settling claims for being involved with the 1MDB scandal. Azman, who turns 83 this year, has retired from the banking group. ANZ is still keen on selling its stake.\n\n\nIf BNM approaches Grab\u2019s AmBank acquisition in the same spirit as it did with the digital banks, then maybe times are truly changing in the Malaysian banking space. However, this doesn\u2019t mean negotiations will be easy for Grab, more so because it is a foreign company.\n\n\nBut if the ride-hailing giant emerges as AmBank\u2019s major shareholder, then it can definitely unlock synergies between its digital and traditional banking arms. The other side of the coin is BNM\u2019s ability to regulate newer owners of these banks. It\u2019s a pressing matter, but that\u2019s a story for another day.\n\n\nSomewhere along these lines is the revival of another grapevine favorite: the merger between AmBank and RHB Bank, Malaysia\u2019s third-largest financial services group and a digital banking consortium partner of Boost. But, that, too, is for another day.\n\n\n\u2014 \nEmmanuel Samarathisa\n, journalist at \nTech in Asia\n\n\n\n\nTop stories this week\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n1. \nGrab eyes majority stake in Malaysia\u2019s 4th largest bank: sources\n\nAmBank is on investors\u2019 radars after the settlement of claims linked to the 1MDB con, insiders say.\n\n\n2. \nAfter GoTo IPO, Tokopedia eyes Indonesia\u2019s lower-tier cities\n\nWith a regional expansion not in the cards for now, Tokopedia eyes lower-tier cities in Indonesia as prime growth areas. But so are its competitors.\n\n\n3. \nOrg chart: The C-suites powering Capital A\n\nWe look at the captains steering Capital A as it pivots from being a discount airline to a diversified tech group.\n\n\n4. \nLazada gets $378m boost from Alibaba, filings show\n\nThe capital is under the form of new shares issued by Lazada to the Singapore-based entity of Alibaba Group.\n\n\n5. \nMeet the growing ranks of the Grab mafia\n\nAs Grab alumni founders grow in number, can the company catch a second wind by tapping into them?\n\n\n6. \nThe key players in Indonesia\u2019s credit-scoring space\n\nEcommerce companies like Tokopedia and Blibli have also dipped their toes into the industry.\n\n\n7. \nPleasant surprise in Malaysia\u2019s digibank race\n\nThe five chosen consortia will be expected to meet the central bank\u2019s stringent guidelines within the next two years.\n\n\n8. \nCapital SEA: Southeast Asia\u2019s funding landscape (updated 11 May 2022)\n\nWho are the new active investors on the block? Which funding rounds look like outliers? This visual story answers all this and more.\n\n\n9. \nHow an Animoca game lost 70% of its users after adding KYC\n\nAs play-to-earn games look to introduce a KYC process to comply with regulatory guidelines, players are voicing privacy concerns.\n\n\n10. \nOrg Chart: The people leading Carousell\n\nWe look at the team behind Carousell as the firm diversifies its business while eyeing a potential IPO."}
{"title": "Org Chart: The C-suites powering Capital A", "body": "\n\nOrg Chart\n maps out the people at the top of Asia\u2019s most prominent tech companies. Who are the key decision-makers? How are the teams organized? What does it tell us about the company\u2019s priorities? We continue this series with Malaysian diversified group Capital A.\n\n\nCapital A was born out of necessity. The global aviation industry ground to a halt amid Covid-19 as pandemic-induced measures clipped the wings of major airlines, including AirAsia.\n\n\nIn 2020, the Kuala Lumpur-based budget airline had to let go off staff, seek government aid, and restructure its debt to survive.\n\n\nBut the most important move by Tony Fernandes, AirAsia\u2019s co-founder and CEO, was to change the company\u2019s name to Capital A, marking its diversification into tech.\n\n\nThe pivot was easy: AirAsia already had a tech arm that managed its digital services, including its website. Scaling up involved reorganization at the group level, which Fernandes executed. With shareholders support, Capital A was born on March 13 this year and its new ticker went up on the Bursa Malaysia stock exchange.\n\n\nThe group\u2019s structure has been simplified into two main arms: aviation (AirAsia) and digital (AirAsia Digital).\n\n\nMajor responsibilities have been assigned to Fernandes\u2019 three generals or presidents: Tharumalingam Kanagalingam (aviation), Aireen Omar (digital), and Collin Currie (digital business).\n\n\nAmong the three, Aireen and Tharumalingam have worked with Fernandes the longest. Aireen joined AirAsia in 2006 after a three-year stint at New York\u2019s Deutsche Bank as her first job.\n\n\nTharumalingam, meanwhile, worked at EMI Music Malaysia and Warner Music Malaysia before joining AirAsia as ground operations manager in 2001, the year the firm was founded.\n\n\nCurrie joined AirAsia in 2021 after working as the managing director for Adidas Group\u2019s Hong Kong, Taiwan, and Greater China businesses from 2005 onwards. Before this, he was Sony Music Entertainment Malaysia\u2019s managing director from 2003 to 2005.\n\n\nWhen Capital A was known as AirAsia Group, many of its tech businesses such as Airasia.com were grouped under the airline arm. But after restructuring the group into Capital A, there\u2019s a clear division between aviation, tech, and other services.\n\n\nTharumalingam and Currie have similar backgrounds as Fernandes: All three have worked in the music business. Prior to founding AirAsia, Fernandes was vice-president at Warner Music Southeast Asia, which he left after it announced its merger with America Online in 2001.\n\n\nAireen heads AirAsia Digital, focusing on the ventures such as AirAsia Super App and Teleport, while Currie handles the digital aspects of the business, from communications to marketing.\n\n\nHere are a few more observations:\n\n\n\n\nKamaruddin Meranun is a co-founder of AirAsia and a close associate of Fernandes but doesn\u2019t get involved in the day-to-day running of the group. He is the non-executive non-independent chairman of Capital A and also one of the group\u2019s controlling shareholders.\n\n\nAmong the three presidents, Aireen not only leads the most important business unit, but also one that houses the greatest number of departments and subsidiaries. She oversees Teleport, BigPay, and the AirAsia Super App, among others.\n\n\nThere\u2019s some upward mobility within Capital A. Tharumalingam, for example, climbed up the ranks to become president. Tharumalingam joined the firm as a ground operations manager in 2001 and worked his way up to deputy CEO by 2017 before being promoted to CEO in 2021.\n\n\nKhairie Hisyam Aliman was a business journalist with \nThe Edge\n before joining AirAsia as its \u201cfuturist.\u201d He became chief of staff following the restructuring.\n\n\nTan Suan Sear who is AirAsia Food CEO was the founder of DeliverEat, which AirAsia acquired in 2021.\n\n\nA majority of Capital A staff are Malaysians. There are country heads who are also corporate veterans. For example, AirAsia Philippines CEO Ricardo Isla had worked with PLDT Global Corporation, a major Philippines telco provider, before joining the airline.\n\n\nAirAsia X remains a wholly owned listed subsidiary that\u2019s outside Capital A. Fernandes and Meranun are major shareholders of AirAsia X through their investment vehicle, Tune Group but AirAsia X has its own board and is not a wholly owned subsidiary of Capital A. In 2020, there were \nplans\n to merge AirAsia X and AirAsia, but that plan has yet to materialize under Capital A.\n\n\n\n\nCapital A did not participate in this article. \nTech in Asia\n has verified the chart with company insiders.\n\n\nYou can also check out coverage of \nCapital A\n here. If you find any missing or inaccurate data, do reach out to tianwen@techinasia.com so we can fill in the gaps.\n\n\nCredits\nGraphics:\n Timmy Loen\nEditing:\n Tay Tian Wen, Collin Furtado, and Arpit Nayak"}
{"title": "Malaysia\u2019s 1337 Ventures launches fundraising bootcamp for SMEs", "body": "Malaysia-based \n1337 Ventures\n, a VC firm focusing on early-stage startups, has launched a fundraising bootcamp as part of an equity crowdfunding (ECF) accelerator program to help local SMEs.\n\n\nThe launch followed 1337 Ventures\u2019 demo day, during which companies pitched to investment firms such as The Hive SEA, Tenggara Capital, Gobi Partners, Malaysia Debt Ventures, Kairous Capital, and Rosewood Capital.\n\n\n\n\nThe 1337 Ventures ECF accelerator team / Photo credit: 1337 Ventures\n\n\n\n\nThe participants included used goods and idle asset marketplace \nUnearth\n and healthtech startup \nQueueMed Asia\n. They will be raising funds via ECF through 1337 Ventures\u2019 sister company, \nLeet Capital\n.\n\n\nSuresh Thiru\n, an angel investor and former CEO of Seek Asia who participated in the demo day, said the ECF accelerator program saw \u201ca great mix of participation\u201d from different industry players and would \u201cplay a critical role\u201d for Malaysian entrepreneurs.\n\n\nSee also: \nYC-like Indian accelerator eyes $500m second fund\n\n\nThe four-week program provided learning materials that focused on how to conduct a business valuation, the types of legal instruments required for an ECF raise, the types of grants currently available, and what constitutes a good media story.\n\n\nECF has been increasingly popular in Malaysia as a new and viable way for local businesses to raise funds. The Securities Commission Malaysia \nreported\n that the total ECF funds raised increased to 221.63 million ringgit (US$50.6 million) in 2021 from 127.73 million ringgit (US$29.1 million) in 2020.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.38 ringgit."}
{"title": "Grab eyes majority stake in Malaysia\u2019s 4th largest bank: sources", "body": "Ride-hailing giant Grab is in talks to buy a majority stake in Malaysian banking group AMMB Holdings (AmBank), people familiar with the matter told \nTech in Asia\n.\n\n\n\n\nPic: Ambank\n\n\n\n\nTwo industry insiders said talks were still in preliminary stages but that Grab is among the names seeking to snap up a stake in Malaysia\u2019s fourth-largest bank by assets. AmBank, which is listed on Bursa Malaysia, has a market value of 12 billion ringgit (US$2.74 billion).\n\n\nTech in Asia\n understands that investors have their sights on AmBank\u2019s banking and asset management arms, following the bank\u2019s settlement of claims linked to the multibillion-dollar 1Malaysia Development Bhd (1MDB) scandal.\n\n\nBusiness publication \nThe Edge\n first reported the deal on May 7, saying Grab was looking to take over the stakes of AmBank\u2019s two largest shareholders: Australia and New Zealand Banking Group (ANZ) and Azman Hashim, the Malaysian bank\u2019s former chairman.\n\n\nANZ owns a 21.68% stake in the bank while Azman, a veteran banker who led AmBank from 1982 to January 2022, holds 11.83%.\n\n\nIn response to an enquiry by \nTech in Asia\n, A Grab spokesperson told \nTech in Asia\n the super app would not comment on \u201crumors or speculation\u201d while ANZ did not respond to queries from \nThe Edge\n. We have also reached out to AmBank for comment.\n\n\nThe industry insider \nTech in Asia\n spoke to didn\u2019t divulge how much Grab was willing to fork out for the deal, but added that the Singapore-headquartered firm\u2019s physical banking strategy in Malaysia appears to be in line with a move the ride-hailing giant recently made in Indonesia by purchasing a 16.3% stake in Bank Fama International.\n\n\nGrab\u2019s interest in traditional banking and AmBank\u2019s search for investors come on the heels of a few recent developments.\n\n\nFirstly, GXS Bank, a joint venture between Grab and Signtel, recently snagged a digital banking license from Bank Negara Malaysia. GXS has formed a consortium with Kuok Brothers, the investment vehicle of Malaysia\u2019s wealthiest tycoon, Robert Kuok. Grab said in an April 29 press statement that GXS would own 55.45% of the proposed digital bank, subject to regulatory approval.\n\n\nSecondly, AmBank has meanwhile reached a settlement with the Malaysian government on all outstanding claims and actions regarding transactions around 1MDB. The bank had to pay 2.83 billion ringgit (US$645 million) as part of the settlement despite denying wrongdoing on its part in 2017.\n\n\nAmBank\u2019s settlement is linked to the bank\u2019s handling of 5 billion-ringgit (US$1.14 billion) bonds issued by 1MDB in May 2009. The 30-year government-guaranteed bonds, which pay an interest rate of 5.75%, were almost stolen and flipped by fugitive financier Low Taek Jho \u2013 known as Jho Low \u2013 and collaborators.\n\n\nMalaysian enforcement agencies investigated the issuance of the bonds, including the involvement of AmBank\u2019s senior staff in facilitating the flipping of the bonds. Investigators found that Jho Low and his co-conspirators had made a profit of 600 million ringgit (US$136 million) at 1MDB\u2019s expense.\n\n\nThirdly, since 2016, ANZ\u2019s has looked to lessen its exposure to Asia, closing down businesses in several countries in the region, including Singapore, and announcing that it was considering the sale of minority stakes in banks across Malaysia, Indonesia, and China.\n\n\nGrab listed on the Nasdaq five months ago and raised fresh capital. Despite reporting a loss of US$3.4 billion for the financial year ended December 31, 2021, the ride-hailing giant is sitting on US$9 billion in cash, with a net cash position of US$6.8 billion.\n\n\nGrab\u2019s maiden purchase post-IPO was Malaysian grocery store chain Jaya Grocer, which it bought for an undisclosed sum in January this year.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.38 ringgit\n\n\nSee also: \nMaking sense of Grab\u2019s Jaya Grocer acquisition"}
{"title": "US-based Swimlane to set up regional headquarters in Malaysia", "body": "US-based \nSwimlane\n will set up its headquarters for the Asia Pacific in Kuala Lumpur as part of a tie-up with \nCyberSecurity Malaysia\n to improve cybersecurity analytics and automation in the region, reported \nDigital News Asia\n.\n\n\nAs part of the alliance, the two parties have also identified three key initiatives for improving cybersecurity in the region: fostering awareness about the value of automating security operations for organizations, driving up in-country development of talent and skills, and introducing security operations automation to existing and new partners to develop solutions and services for the regional market.\n\n\nThe low-code security automation provider believes the Asia Pacific faces a significant shortage in talent when it comes to cybersecurity. The region currently has over 2 million cybersecurity roles open for hire \u2013 which makes up 66% of the total global talent shortage in the field.\n\n\nSee also: \nThe tech mogul backing Binance\u2019s Malaysia breakthrough"}
{"title": "Crossing the first milestone in Malaysia\u2019s digibank race", "body": "Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a Premium subscription\n.\n\n\nHello reader,\n\n\nWhen was the last time you physically stepped into a bank branch?\n\n\nAside from having to deposit the money I received from relatives during the recent Lunar New Year festivities, I actually haven\u2019t had to go down to the bank in nearly two years. While that\u2019s partially due to Covid-19, it\u2019s primarily because almost everything I need to do with my bank can now be done online.\n\n\nDigital banking has made accessing financial services easier than ever, and it has created opportunities to close the gaps when it comes to financial inclusion.\n\n\nCountries all over the globe are looking into issuing digital banking licenses, hoping to leverage tech in order to make financial services accessible to underserved and underbanked people. Malaysia is no exception.\n\n\nThe Southeast Asian nation has just taken its first step towards making digital banks a reality with its announcement of the successful applicants for its digital banking license last week.\n\n\nToday we look at:\n\n\n\n\nThe \nlatest updates\n from Malaysia\u2019s digital banking race \n\n\nThe mental health startup that\u2019s Meta\u2019s first investment in Southeast Asia \n\n\nOther newsy highlights such as the latest in Didi\u2019s woes and JD.com\u2019s special cash dividend\n\n\n\n\n\n\nPremium summary\n\n\nThe state of Malaysia\u2019s digital banking race\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nLast week, Bank Negara Malaysia (BNM), the nation\u2019s central bank, announced the five successful applicants for its maiden digital banking license.\n\n\nThe results were somewhat surprising, but at least on paper, featured a good mix of Malaysian- and foreign-controlled entities, allaying concerns of political interference that had dogged the central bank ever since its open tender call for the licenses.\n\n\n\n\n\n\nA motley crew:\n Out of the five chosen consortia, three were majority-owned by Malaysians, namely Boost-RHB Bank, YTL Digital Capital-Sea, and the KAF consortium. The other two are the partnership between GSX Bank (the Grab and Singtel digital bank) and Kuok Brothers, and the Aeon consortium.\n\n\n\n\n\nDidn\u2019t make the cut:\n  Falling out of the digital banking race were a consortium led by local conglomerate Sunway and another led by BigPay, the e-wallet arm of AirAsia parent firm Capital A. Neither of them received licenses from BNM.\n\n\n\n\n\n\nWhat\u2019s next?:\n Winning the license is just the beginning of Malaysia\u2019s digital banking race. The country has a banking penetration rate of 96.1%, and many traditional banks have already moved into the digital space.\n\nDigital banks will face challenges with getting customers on board and will need to manage the risks involved with collecting deposits and loan defaults, as Malaysia\u2019s underserved and unserved segment is made up of customers with inconsistent cash flow.\n\n\n\n\n\n\nRead more: \nPleasant surprise in Malaysia\u2019s digibank race\n\n\n\n\nStartup spotlight\n\n\nMeta for mental health\n\n\n\n\nJust last week, I was talking about the rise of mental health startups in Asia. It seems pretty timely then that this week, mental wellness firm Ami \nhas raised US$3 million\n in a seed round joined by Meta\u2019s New Product Experimentation Team. It is Meta\u2019s first early-stage investment in Asia.\n\n\n\n\n\n\nFounded earlier this year\n, Ami offers private and accessible health care support for employees. Its system pairs users with coaches by analyzing their answers as they sign up for the service.\n\n\n\n\n\nThe startup\n, which is based in Singapore and Indonesia, maximizes messaging platforms like WhatsApp for communication between users and support providers. Its coaches are available at all times with no appointment needed.\n\n\n\n\n\n\nThe fresh funding\n will go toward Ami\u2019s expansion plans within Asia.\n\n\n\n\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nShareholders rejoice\n\nChinese ecommerce titan JD.com \nhas approved a special cash dividend\n of US$0.63 per ordinary share and US$1.26 per American depositary share to shareholders. In total, the dividend will amount to nearly US$2 billion.\n\n\nThe ecommerce giant swung to a net loss of US$800 million in the fourth quarter of 2021 from a net profit of US$3.8 billion a year ago.\n\n\n2\ufe0f\u20e3 \nThis peppermint isn\u2019t for eating\n\nAustralia-based Peppermint Innovation said its unit, Peppermint Bizmoto, \nhas been licensed\n to offer app-based e-wallet services to users in the Philippines, allowing users in the country to receive digital money and access digital services via its platform.\n\n\nPreviously, Peppermint Bizmoto only offered financial services such as remittance, bill payments, cash transfers, and e-loads or mobile phone top-ups through its network of direct-selling agents.\n\n\n3\ufe0f\u20e3 \nDidi\u2019s woes continue\n\nIn a regulatory filing, Didi Global revealed that it is \nfacing a probe\n by the US Securities and Exchange Commission over its US$4.4 billion IPO at the New York Stock Exchange (NYSE).\n\n\nThis comes after Didi announced that it would be delisting from the NYSE in the wake of Chinese authorities opening an investigation into its customer data collection practices and cybersecurity risks shortly after the company went public.\n\n\n4\ufe0f\u20e3 \nA public market debut in the works\n\nMamaearth, an India-based beauty and baby care brand, is \nplanning an IPO\n by mid-2023, sooner than the previous two- to three-year plan. Its parent company Honasa Consumer raised US$52 million in a funding round led by Sequoia in January, reaching unicorn status with a valuation of US$1.2 billion.\n\n\n5\ufe0f\u20e3 \nAccelerating Asia\u2019s startups\n\nSingapore-based Accelerating Asia, an early-stage VC firm and startup accelerator, \nhas backed nine new startups\n across Asia and poured additional capital into four companies that are part of its existing portfolio.\n\n\nWith the investment into the new startups, which are part of the VC firm\u2019s sixth cohort, Accelerating Asia now has 52 companies in its portfolio that have raised a combined total of over US$42 million.\n\n\n6\ufe0f\u20e3 \nGo with the motion\n\nLottieFiles, an animation workflow platform based in Malaysia, \nhas raised US$37 million\n in a series B funding round led by Square Peg Capital. Investors including 500 Global and Microsoft\u2019s venture fund, M12, joined the round.\n\n\nFounded in 2019, LottieFiles enables animators to streamline their work, offering over 50,000 free and premium animations."}
{"title": "Microsoft backs $37m round of US-, Malaysia-based motion graphics firm", "body": "LottieFiles\n, an animation workflow platform, has raised US$37 million in a series B funding round led by Square Peg Capital. Investors including 500 Global and Microsoft\u2019s venture fund, M12, joined the round.\n\n\n\n\nLottieFiles CEO Kshitij Minglani (left) and chief technical officer Nattu Adnan / Photo credit: LottieFiles\n\n\n\n\nLottieFiles is a motion graphics platform that allows animators to streamline their work, offering over 50,000 free and premium animations. It also plans to launch a workflow and collaboration solution later this year, according to a statement.\n\n\nAdditionally, LottieFiles will use the funding to further its product roadmap and expand its operations.\n\n\nLottieFiles was founded in 2019 by \nKshitij Minglani\n (CEO) and \nNattu Adnan\n (chief technology officer).\u00a0Since then, the company has onboarded users from over 135,000 companies globally, including animation designers and motion designers for Google, TikTok, Disney, Uber, Airbnb, and Netflix.\n\n\nLottieFiles is based in the US, with offices in Seoul and Kuala Lumpur. In January 2021, the company raised \nUS$9 million\n in a round led by M12. LottieFiles then followed up in February with its acquisition of\u00a0Indian design asset marketplace\u00a0\nIconscout\u00a0\nfor an undisclosed sum.\n\n\nSee Also:\u00a0\nAre Malaysia\u2019s startup efforts finally paying off?\n\n\nOther investors in its latest round include:\n\n\n\n\nXYZ Venture Capital\n\n\nGreatPoint Ventures\n\n"}
{"title": "Grab-Singtel, others win Malaysia digital bank license", "body": "Bank Negara Malaysia (BNM), the country\u2019s central bank, has awarded digital banking licenses to five applicants, including a consortium led by Sea Group and YTL Digital Capital.\n\n\nA consortium comprising Boost Holdings and RHB Bank plus another led by GXS Bank and Kuok Brothers have\u00a0 also received licenses under the Financial Services Act 2013.\n\n\n\n\nPhoto credit: 123RF\n\n\n\n\nGXS Bank, a joint venture between Grab and Singtel, will hold a 55.45% stake in the proposed Malaysia digital bank. The group will hire more than 200 people across verticals, including product and design, data, technology, risk, and compliance.\n\n\nMeanwhile, two consortiums \u2013 one involving Aeon Financial Service, Aeon Credit Service, and MoneyLion; the other led by KAF Investment Bank \u2013 have received licenses under the Islamic Financial Services Act 2013.\n\n\nThe new license holders were chosen from 29 applications. Three of the five consortiums are majority-owned by Malaysians, according to a \nBNM statement\n.\n\n\nSee also: \nHow Gojek-backed Bank Jago is taking on Sea, Akulaku\u2019s digibanks\n\n\nBefore they start operations, the successful applicants will undergo a period of operational readiness, which will be vetted by BNM through an audit. The process may take between 12 months to 24 months.\n\n\n\u201cBy adopting digital technology more widely for everyday transactions, we can significantly increase opportunities for our society to participate in the economy \u2013 by overcoming geographical barriers, reducing transaction costs, and promoting better financial management,\u201d Tan Sri Nor Shamsiah, BNM\u2019s governor, said in the statement."}
{"title": "Dickheads NFT gets the snip from Malaysia\u2019s censors", "body": "Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a Premium subscription\n.\n\n\nHello reader,\n\n\nI never thought I\u2019d be writing about how images of anthropomorphic penises are getting censored, but here we are.\n\n\nCensorship\u2019s a funny thing. As writers, we learn about the different rules we need to follow \u2013 both said and unsaid. But I believe that it would be better if censorship is mostly left up to the individual. After all, we do have control over the type of content we consume, and self-regulation is the key factor. If you don\u2019t like it, then avoid it.\n\n\nToday\u2019s story takes a look at censorship from the perspective of Malaysia\u2019s government, which recently banned the Dickheads NFT project. The move has raised some concerns within the NFT artist community, especially following other instances of potential legal violations.\n\n\nToday we look at:\n\n\n\n\nNon-fungible tokens, part 1: Malaysia \nputs a stop\n to an \u201cinappropriate and indecent\u201d NFT project\n\n\nNFTs, part 2: Adgorithmics incorporates them as loyalty rewards\n\n\nOther newsy highlights such as TikTok Shop\u2019s Malaysia rollout and Revolut getting the green light for crypto services in Singapore.\n\n\n\n\n\n\nPremium summary\n\n\nGetting the cut\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nArt getting censored is a tale as old as time. In this case, the Malaysian Communications and Multimedia Commission (MCMC) didn\u2019t take too kindly to digital images of anthropomorphic penises being sold online and has banned the Dickheads NFT project from being minted locally. Whether this is just the beginning of further censorship within the space, only time will tell.\n\n\n\n\n\n\nDrop it like it\u2019s banned:\n \nTech In Asia\n understands the censorship comes after complaints were filed with the MCMC. In response, the agency ordered Malaysia-based marketplace NFT Pangolin to delist the project. According to the MCMC, the complaints stated that the content in question is \u201cinappropriate and indecent in nature.\u201d\n\n\n\n\n\nAfter the cock-up:\n An NFT Pangolin spokesperson told us that the company was \u201cworking closely\u201d with MCMC and the Dickheads NFT artist to address the matter. As for the unamed artist, they\u2019re now looking to host the project on OpenSea, the world\u2019s largest NFT marketplace, or SuperRare, an Ethereum-based digital art market.\n\n\n\n\n\n\nChilling effect:\n This isn\u2019t the first time an NFT artist has gotten into trouble in the country. Fahmi Reza recently landed himself in hot water because of his Monyet Istana (Palace Monkey) NFT. He was arrested by police last week and detained under Malaysia\u2019s sedition laws. He was released the next day but has since been barred from leaving the country.\n\n\n\n\n\n\nRead more: \nMalaysia bans Dickheads NFT\n\n\n\n\nStartup spotlight\n\n\nGet rewarded with\u2026 NFTs?\n\n\n\n\nPhoto credit: MetaGacha\n\n\n\n\nI\u2019m not really big on loyalty rewards as I often don\u2019t think they\u2019re worth it (though they do come in handy sometimes). But if I were a customer of Adgorithmics, an ecommerce-focused AI company, \nits loyalty program\n could possibly change my mind.\n\n\nThe company is rewarding customers with NFTs. To do this, it partnered with blockchain firm Klaytn Foundation, with the NFTs being issued through the MetaGachas platform.\n\n\n\n\n\n\nNot just a gacha game:\n MetaGachas is a smart contract that specializes in creating customer loyalty programs. Each MetaGachas NFT has a different value and allows users to claim discounts and membership privileges from different shops. This will encourage them to make more transactions and collect more NFTs.\n\n\n\n\n\nYou get a reward, you get a reward, everyone gets a reward:\n The initiative will allow both sellers and buyers to earn NFTs from transactions. They can then collect the NFTs, exchange them for vouchers to make other purchases, or redeem prizes such as smartphones, game consoles, and laptops.\n\n\n\n\n\n\nFirst come, first served:\n Social commerce platform Tapao is the first to join the initiative, and it has already registered more than 3,000 people since the NFT program was launched. According to Adgorithmics, Klaytn, and MetaGacha, Tapao is already seeing several thousand purchases through the NFTs, with holders also getting a 5% discount on the platform.\n\n\n\n\n\n\n\n\nIn partnership with\n\n\n\n\nA peek into the future of sports technology\n\n\n\n\nFor football fans, you\u2019d probably remember a time before matches were broadcast in ultra-high-definition quality.\n\n\nMuch has changed since then, not only in football broadcasting, but in the rest of the sporting world as well.\n\n\nAs technology makes its way into the sports industry, advancements like interactive streaming offers, smart stadiums, wearables, and other sportstech innovations have helped the sector progress to an unprecedented level of sophistication \u2013 allowing everyone to enjoy their sporting experience even more.\n\n\nIf you\u2019re keen on learning about the future of sportstech development, keep an eye out for the Deutsche Fussball Liga\u2019s SportsInnovation trade fair in May. During the fair, you\u2019ll be able to check out a unique event: a series of innovation games where new sportstech solutions will be tested and showcased in a live environment.\n\n\nTo learn more about SportsInnovation, visit \nits website\n.\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nA nervous sort of optimism\n\nNeuron Mobility, a Singapore-based e-scooter startup, has raised \nUS$43.5 million\n in a series B round. This brings the company\u2019s total funding to US$77.7 million, with the capital going toward developing its tech, manufacturing more e-scooters, and driving its global expansion plans.\n\n\nOutside of Singapore, the firm has a presence in Australia, the UK, and South Korea, as well as a permit to operate in over 30% of all cities in Canada.\n\n\n2\ufe0f\u20e3 \nJoining the fray\n\nSocial media giant TikTok is \nentering Malaysia\u2019s online shopping market\n through its ecommerce arm, TikTok Shop. Business owners can start signing up to sell goods through their TikTok accounts and will be charged a 1% payment service fee. According to a company statement, TikTok Shop aims to support small businesses that have not yet set up physical stores due to high investment costs.\n\n\n3\ufe0f\u20e3 \nBig backers\n\nIndonesia-based BintanGo has \nraised US$2.1 million\n in a seed round led by Investible and eWTP Tech Innovation Fund, with participation from current and former executives of YouTube, Facebook, and Google. The firm provides productivity and monetization tools as well as financial solutions for digital content creators to help them manage, simplify, and grow their businesses.\n\n\n4\ufe0f\u20e3 \nRevolut gets crypto go-ahead\n\nThe UK-based fintech unicorn can now operate a fully regulated cryptocurrency service after \ngetting approval from the Monetary Authority of Singapore\n. According to a report by \nFintechnews Singapore\n, the Revolut app will now support the buying, selling, and holding of cryptocurrencies.\n\n\n5\ufe0f\u20e3 \nEnough with the puns\n\nSpenmo Financial Technology Corporation, a Singapore-based payments software startup, \nhas been licensed to operate in the Philippines\n. The firm can now operate payment systems in the country through a license issued by the central bank of the Philippines. According to the firm, this will help it tap into the increasing volume of digital business transactions in the country.\n\n\n6\ufe0f\u20e3 \nIs this an offer Sea can\u2019t refuse?\n\nState-owned Bank Negara Indonesia (BNI) has \noffered Singapore-based Sea Group a 10% stake in Bank Mayora\n. BNI currently holds a 63.9% stake in Bank Mayora following its acquisition of 1 billion new shares.\n\n\nReports of Sea and BNI\u2019s partnership surfaced last December, with BNI president director Royke Tumilaar saying that the internet giant helped BNI transform Bank Mayora into a digital bank by providing services to develop its tech and business model."}
{"title": "New ecommerce firm launches in Malaysia, plans regional expansion", "body": "Malaysia-based \nShoppymore\n, a new ecommerce platform, has joined the crowded market, aiming to hit 10 million ringgit (US$2.3 million) in revenue by the end of the year.\n\n\n\n\nShoppymore founder and group CEO Datuk Seri Dr Barani Karuna Karan / Photo credit: Shoppymore\n\n\n\n\nShoppymore has onboarded 100 sellers in its first year of operations and aims to increase this number tenfold in 2022 to hit its US$2.3 million revenue target.\n\n\nThe company claims to currently have a daily transaction value of about US$11,460.\n\n\nShoppymore founder \nDatuk Seri Dr Barani Karuna Karan\n said that the firm plans to expand to India, Indonesia, and the Philippines, with a focus on exporting Malaysia-made products.\n\n\nAmong the sellers listed on the platform was direct selling company Destina 1 International Sdn Bhd, where the Shoppymore founder serves as group executive chairperson.\n\n\nThe region\u2019s ecommerce space has gotten increasingly crowded, with TikTok Shop \nofficially entering\n Thailand, Vietnam, and Malaysia in February. TikTok is reportedly working on functions \nto enable cross-border ecommerce\n\u00a0for merchants in selected Southeast Asian countries.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.36 ringgit.\n\n\nSee also: Explaining TikTok\u2019s ecommerce bet in Southeast Asia"}
{"title": "TikTok\u2019s ecommerce arm sets up shop in Malaysia", "body": "TikTok\n Shop, the ecommerce arm of the global short-video app, has rolled out its online shopping platform in Malaysia.\n\n\n\n\nPhoto credit: Unsplash\n\n\n\n\nBusiness owners in the country can start signing up to sell goods using their TikTok accounts. The platform, which can recommend products to its mobile app users, charges a 1% payment service fee to merchants.\n\n\nTikTok Shop aims to support small businesses that have not yet set up physical stores due to high investment costs, the company said in a statement.\n\n\nEcommerce income in Malaysia jumped 17.1% in the third quarter of 2021 compared to the same three-month period in 2020, said Darren Quek, TikTok Malaysia\u2019s strategy operations manager, citing government statistics.\n\n\n\u201cThis shows that more Malaysians are shopping online, and we want to tap into this market to make it more convenient for our creators to reach their buyers, and vice versa,\u201d he added.\n\n\nSee also: \nExplaining TikTok\u2019s ecommerce bet in Southeast Asia\n\n\nTikTok Shop officially \nentered\n Thailand, Vietnam, and Malaysia in February, where it has been hiring local teams.\n\n\nFollowing its Malaysia launch, the company has been rolling out sales campaigns for local shoppers."}
{"title": "Malaysia bans Dickheads NFT", "body": "The Malaysian Communications and Multimedia Commission (MCMC) has banned the Dickheads NFT project, which features anthropomorphic penises, from being minted on local \nNFT\n marketplaces.\n\n\n\n\nImage credit: Dickheads NFT\n\n\n\n\nTech in Asia\n understands that a complaint was filed with the MCMC, which led the agency on March 30 to order NFT Pangolin, a newly launched Malaysia-based marketplace, to delist the project.\n\n\nMCMC told us that the agency requested NFT Pangolin to remove the NFTs after receiving \u201ccomplaints that the content is deemed to be inappropriate and indecent in nature.\u201d\n\n\nMeanwhile, an NFT Pangolin spokesperson told us that the company was \u201cworking closely\u201d with MCMC and the Dickheads NFT artist to address the matter.\n\n\nThe Dickheads NFT artist, who is based in Malaysia, told \nTech in Asia\n that the project will be hosted on OpenSea, the world\u2019s largest NFT marketplace, or SuperRare, an Ethereum-based digital art market.\n\n\nThe artist also alleged that MCMC suspended its Twitter account but MCMC told us that it did not submit such a request.\n\n\nNFTs are neither digital currencies nor securities and are not regulated by the country\u2019s financial regulators, including Bank Negara Malaysia and Securities Commission Malaysia. But MCMC\u2019s powers include monitoring social media and censoring content deemed inappropriate, \u201cwhich raises the issue of freedom of expression because in many ways an NFT is art,\u201d a Kuala Lumpur-based artist tells us.\n\n\nThey add that this may not bode well for local NFT marketplaces as artists and issuers \u201cwill risk having their work censored by MCMC.\u201d\n\n\nThe regulator\u2019s move to censor Dickheads NFT is a first in Muslim-majority Malaysia, where its government as well as aristocracy adopt a conservative stance toward the freedom of expression.\n\n\nSome Malaysian artists, such as Visithra Manikam, have successfully minted NFTs. She is believed to be Malaysia\u2019s \nbiggest-selling artist\n on OpenSea, with some of her work being purchased by rapper Snoop Dogg.\n\n\nBut projects such as artist Fahmi Reza\u2019s Monyet Istana (Palace Monkey) NFT are expected to test the country\u2019s censorship limits.\n\n\nFahmi, known for his satirical take on Malaysian affairs, will be minting the piece on Pentas.io, a local NFT marketplace. The money he raises from the sale will go to the Freedom of Expression Legal Defense Fund, which is managed by activists and lawyers.\n\n\n\n\nMonyet Istana is a satirical graphic featuring Mojo Jojo, the main villain in the popular \u201890s cartoon \nThe Powerpuff Girls\n, in traditional royal attire. The artwork is a jibe toward a sultan\u2019s purchase of a painting, which itself was a satirical piece portraying lawmakers from Malaysia\u2019s parliament as apes and frogs.\n\n\nFahmi was arrested by police last Thursday \u2013 just 15 hours after he shared his work \u2013 and detained under Malaysia\u2019s sedition laws. He was released the next day but has been barred from leaving the country.\n\n\nUpdate (Apr. 26, 4:00 p.m. SGT): This article was updated to add responses from MCMC."}
{"title": "Behind the growth of Malaysia\u2019s digital creative content startups", "body": "Many things come to mind when one thinks about Malaysia. The country is a key producer of rubber and palm oil, an industrial powerhouse, and a popular tourist destination. But it is also the home of a booming digital creative content scene.\n\n\n\n\nPhoto credit: pat138241 /\n123RF\n\n\n\n\nIn 2020, Malaysia\u2019s gaming market \nstood at US$786 million\n, which made it the third largest in Southeast Asia. Its animation industry was \nvalued at over US$1.6 billion\n in the same year, with exports in the sector standing at over US$285 million, doubling from 2014. Local animation studios also produced more than 65 original pieces of intellectual property, creating nearly US$40.5 million in export value and expanding its presence to more than 120 countries.\n\n\nThe products of Malaysia\u2019s digital creative industry have also received recognition around the world. Programs such as \nUpin and Ipin\n, which explores the adventures of two twin brothers, and \nMechamato\n, which revolves around a boy and his robot companion, have reached global audiences. Meanwhile, games like multiplayer arena brawler \nGigaBash\n and action-adventure title \nNo Straight Roads\n have won accolades at international competitions.\n\n\nIt\u2019s no surprise that the industry plays a key role in Malaysia\u2019s growing digital economy.\n\n\nThe value of digital creative content\n\n\n\u201cDigital content has great potential in driving the growth of Malaysia\u2019s digital economy, making it an area of great interest for us,\u201d says Mahadhir Aziz, CEO of the \nMalaysia Digital Economy Corporation (MDEC)\n, a government agency supporting the country\u2019s digital industries.\n\n\nIn his perspective, there are several reasons why this is the case.\n\n\n\n\nMahadhir Aziz, CEO of MDEC / Photo credit: MDEC\n\n\n\n\nFirst, the digital creative industry has been put forward \nas a key driver\n of the post-pandemic economy in Southeast Asia. This is a result of rapid digitalization and a growing generation of millennials and Gen-Z consumers who value experiences and entertainment, alongside an \neven greater demand\n for digital content globally.\n\n\nSecond, digital creative content provides a way for many key skills in tech to be utilized.\n\n\n\u201cDigital content is based on established digital creative skills and tech, such as programming, design, art, and narrative construction,\u201d explains Aziz. \u201cNot only does it help train essential base skills, it also allows room for innovation and creates opportunities to explore use cases for new tech, such as virtual reality, augmented reality, and blockchain.\u201d\n\n\nThere is also a significant growth opportunity for Malaysian startups in the digital content market for Islamic entertainment.\n\n\nIn 2019, Muslim consumers globally \nspent US$222 billion\n on media and recreation, up from US$214 billion in the year before. The pandemic saw the consumption of Islamic content rise to unprecedented levels, and Muslim consumer spending on media is expected to reach US$270 billion by 2024, although the market remains largely underserved on the content front.\n\n\nBuilding up a digital creative economy\n\n\nGiven the potential of the digital creative content industry to drive Malaysia\u2019s digital economy, the nation has rolled out several initiatives to help support its growth.\n\n\nMDEC is leading the Malaysian government\u2019s efforts through the Digital Content Ecosystem (DICE) policy under the Ministry of Communications and Multimedia, which focuses on attracting investments, building up local talent and companies, and strengthening the ecosystem through government and private sector partnerships.\n\n\nAccording to Aziz, MDEC\u2019s support of the government\u2019s DICE policy will take form across four areas, namely business development, creative skills and talent, digitalization, and research and partnerships. These include competitions and business-matching opportunities, as well as access to a number of strategic investments and grants to help fuel the growth of local companies.\n\n\nOne Malaysian startup that has benefited from MDEC\u2019s support is content development firm \nThe R&D Studio\n.\n\n\nIn 2017, the startup participated in MDEC\u2019s Intellectual Property Creators Challenge (now known as the \nDigital Content Creators Challenge\n) and won the competition, receiving a 75,000 ringgit (US$17,800) grant to produce its short film \nBatik Girl\n. The movie went on to premiere in 17 countries, receive official selections in 28 international film festivals, and win awards in Chile, Japan, and the US.\n\n\n\n\nPoster for Batik Girl / Photo credit: The R&D Studio\n\n\n\n\nAside from the support available in its home turf, The R&D Studio was also able to take advantage of opportunities that MDEC offers to local animation companies that aim to go abroad and tap into new markets.\n\n\nAlongside two other startups \nZappy\n and \nDurioo\n, The R&D Studio exhibited at the \nMalaysia Pavilion\n during \nExpo 2020 Dubai\n, which was held in January this year. Through the event, the firm was able to exhibit \nBatik Girl\n to an even broader audience while connecting to potential clients in the Middle East.\n\n\nExpo 2020 Dubai also opened up opportunities for Zappy and Durioo. Zappy has worked with a local government in the Middle East on an animation project and is in talks with several companies in Dubai. Meanwhile, Durioo has connected with broadcasters in the Middle East and North Africa to bring its Islamic children\u2019s content to wider audiences.\n\n\n\u201c[Having these startups participate] in Expo 2020 Dubai allows us to give them exposure to global markets, as well as bring the brand name of Malaysian digital content space to the wider audience,\u201d says Aziz.\n\n\nFrom Malaysia to the world\n\n\nThe CEO is bullish about the future of Malaysia\u2019s digital creative content economy.\n\n\n\u201cThe future looks good, as is evident by the success seen by startups in the space,\u201d shares Aziz. \u201cThese startups represent the funnel of new creators entering the space and are the lifeblood of creativity, and earlier studios have paved the way for other entrants to enter the field.\u201d\n\n\nMDEC will continue to fuel the growth of the country\u2019s digital creative industry, both through supporting startups and developing the necessary talent for keeping the sector going.\n\n\n\u201cThese initiatives will help provide a strong foundation for our growing industry and ensure that there isn\u2019t a lack of talent,\u201d Aziz explains. \u201cWith steady flow of talent, infrastructure, and consistent government grants and initiatives, the gaming and animation industry will be able to not just profit, but also fuel the growth of Malaysia\u2019s digital economy.\u201d\n\n\nAs Malaysian content continues to cross borders, the CEO is confident that the country\u2019s startups will be able to reach consumers all over the world.\n\n\n\u201cAs the global audience expands their taste for diverse content, Malaysia with its culture-rich and diverse population would be able to deliver content that is different and unique,\u201d he says.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.23 ringgit.\n\n\n\n\nMalaysia Digital Economy Corporation (MDEC) is the agency under the Ministry of Communications and Multimedia Malaysia leading the digital transformation of the country\u2019s economy for 25 years. It aims to enable a progressive, innovation-led digital economy.\n\n\nLearn more about MDEC on its website \nhere\n.\n\n\n\n\nThis content was produced by Tech in Asia Studios, which connects brands with Asia\u2019s tech community. \nLearn more\n about partnering with Tech in Asia Studios."}
{"title": "Al Rajhi Malaysia-Moneythor partnership brings PFM to boost upcoming digital services", "body": "Al Rajhi Bank Malaysia\n, a subsidiary of Saudi Arabia-based Al Rajhi Bank, has inked a strategic partnership with Singapore digibank solutions provider \nMoneythor\n to implement personal finance management (PFM) features in its upcoming digital banking services in Malaysia.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nThe partnership is part of Al Rajhi Malaysia\u2019s commitment to digital transformation. This includes integrating Moneythor\u2019s PFM solution, which uses real-time data, machine learning, and behavioral science to offer personalized digital finance management. The tech will also complement the bank\u2019s plans for a full spectrum of Shariah-compliant products as part of its digital banking services this year.\n\n\nAl Rajhi Malaysia established a new \noffice\n in February that will house its digital bank team, along with several other divisions. The bank also \nappointed\n Ikram Khaliq as its head of digital bank.\n\n\nSee also: \nAs digibanks rise, will Indonesia\u2019s online lenders become obsolete?"}
{"title": "Capital A partners with Google for super-app ambitions", "body": "Capital A\u2019s digital business, \nAirasia\n Super App\n, has partnered with Google Cloud to co-create software tools, nurture tech talent, and provide more data-driven intelligence for MSMEs.\n\n\n\n\nPhoto credit: Capital A\n\n\n\n\nAirAsia\u2019s app offers services such as flight and hotel bookings, ecommerce, food and parcel delivery, ride-hailing, financial and health services, and on-demand education. It operates in Malaysia, Indonesia, Singapore, Thailand, and the Philippines, with a total of 51 million users since its establishment in 2020.\n\n\nIts partnership with Google Cloud will encompass four pillars, including building a Cloud Center of Excellence (CCoE) consisting of experts from both AirAsia and Google Cloud. Another pillar involves AirAsia tapping into Google Cloud\u2019s infrastructure to bolster its app\u2019s reliability as more features and services are added.\n\n\nThe partnership will also see the two firms provide data-driven insights for MSMEs on AirAsia\u2019s platform and develop a suite of software development kits for ecosystem partners.\n\n\n\u201cWith Google\u2019s help, our ecosystem will not only be transactional but be about building community and enriching that community \u2013 not just the customers but partners like restaurants, airlines, hotels, and drivers,\u201d said \nTony Fernandes\n, CEO of Capital A.\n\n\nSee Also: \nCapital A faces funding setback in super-app push"}
{"title": "SG agritech firm enters Indonesia, Malaysia", "body": "Singapore-based \nGlife Technologies\n, a food and agritech firm, has acquired controlling stakes in startups\u00a0\nPanenID\n and \nYolek\n. Financial details on the deals were not disclosed.\n\n\nPanenID is a farm-to-table startup in Indonesia, while Yolek is a plant-based food distributor in Malaysia.\n\n\n\n\nGilfe co-founder and deputy CEO Caleb Wu / Photo credit: Gilfe\n\n\n\n\nEstablished in 2018, Glife addresses the supply chain pain points of food businesses by linking these companies to farmers and providing them digital tools.\n\n\nPanenID and Yolek will use\u00a0\nGlife\u2019s proprietary food and beverage solutions to boost their operation efficiency by up to 50%.\n\n\n\u201c\nBoth Indonesia and Malaysia are vibrant communities within the food and agriculture space. We recognize the immense potential for us to tap on given the large agriculture market,\u201d said \nCaleb Wu,\n co-Founder and deputy CEO of Glife.\n\n\nThis deal is Glife\u2019s first step outside Singapore as it eyes expansion within the region. Last year, it \nraised US$8 million\n in a series A round led by Temasek\u2019s Heliconia.\n\n\nSee also: \nThe key players in Indonesia\u2019s promising agritech space"}
{"title": "The fintech opportunity in Pakistan\u2019s breakout funding year", "body": "Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. If you\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHello there,\n\n\nI remember watching the travels of an ex-colleague\u2019s trip to the \nHopar glacier\n and \nHunza valley\n in Pakistan\u2019s Gilgit-Baltistan region unfold on Instagram a few years ago. At the time, I made a mental note to visit someday.\n\n\nThough Pakistan is known for many things, its picturesque sights are rarely mentioned. That narrative, however, has changed slightly in recent times. \nSocial media influencers flock to the region\n, promoting a different side to the country away from the corruption, political instability, and fears of terrorism that often dominate headlines.\n\n\nThese days, it\u2019s not just travelers who\u2019re drawn to the country. Investors last year injected a record US$350 million into Pakistani startups \u2013 more than 5x the amount raised in 2020. Several deals saw foreign VCs like Tiger Global and Kleiner Perkins back startups in the country for the first time.\n\n\nThis week\u2019s big story details the surge in funding that Pakistani startups saw last year, how fintech became a particular bright spot among them, and what it\u2019ll take to keep the momentum going in the years ahead.\n\n\nOver in Malaysia, the wait for the results of successful digital banking licensees awardees got extended indefinitely after months of anticipation because Bank Negara Malaysia said its decision would be announced \u201cupon completion of the legal process.\u201d My colleague, Emmanuel, has more in this week\u2019s Hot Take.\n\n\n\u2014 Melissa\n\n\n\n\nTHE BIG STORY\n\n\n1\ufe0f\u20e3 \nFintech a bright spot in Pakistan\u2019s breakout year\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nPakistani startups are attracting more international VC funding than ever before. But will that momentum continue?\n\n\n\n\nTHE HOT TAKE\n\n\nMalaysia\u2019s digital banking hiccup\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nBank Negara Malaysia was supposed to announce five digital banking licenses by March 31 this year but said in a recent press conference that the announcement would come only after the completion of the legal process.\n\n\n29 applicants from various backgrounds bid to offer services to the country\u2019s underserved and unserved segments.\n\n\nThe central bank said applicants that meet the criteria of providing greater financial inclusion would be awarded licenses.\n\n\n\n\nHere\u2019s our take:\n\n\nBy the time you read this, you were supposed to know the five digital banking license holders in Malaysia \u2013 but you don\u2019t.\n\n\nNor Shamsiah Mohd Yunus, the governor of Bank Negara Malaysia (BNM), said in \na March 30 presser\n that the announcement would be made in the near future, upon completion of the legal processes.\n\n\nShe didn\u2019t elaborate on what these legal processes were, but the central bank\u2019s move has effectively delayed the award of the licenses. BNM had said that it expected to announce the five successful applicants by the end of the first quarter of this year, i.e., by March 31.\n\n\nBut the delay came as a surprise. BNM has been on the ball since 2020. After a six-month consultation period, the central bank issued a policy document on December 31, 2020 dealing with the licensing framework for digital banks.\n\n\nIt then issued a tender call for applications wanting to conduct digital banking or Islamic digital banking \u2013 the deadline for which was June 30, 2021. In February this year, BNM told the media that it was in the advanced stages of assessing applications and that it would announce the winners by March-end, along with the publication of its annual report.\n\n\nThe policy document is comprehensive, requiring applicants to have a five-year business plan, including a market study of underserved and unserved segments and an analysis of the gap in the market.\n\n\nBNM has chosen to use the terms \u201cunderserved\u201d and \u201cunserved\u201d as opposed to \u201cunbanked,\u201d indicating that while the unbanked population in the country is small, banks are not adequately serving the needs of certain segments in terms of products, services and pricing.\n\n\n\n\nPhoto credit: \nKaihsu Tai\n.\n\n\n\n\nDigital banking hopefuls have indicated that they want to reach the country\u2019s poor households, SMEs, and micro firms.\n\n\nThe potential is huge: In Malaysia, SME gross domestic product (GDP) usually outpaces that of the country\u2019s as a whole \u2014 except in 2020, when SME growth came in at negative 7.3%, which was lower than the national GDP for the first time since 2003. That was ostensibly due to Covid-19 and subsequent restrictions on movement.\n\n\nThat\u2019s why the chatter on the street is that intense lobbying from certain quarters may have led to the delay in the central bank\u2019s announcement.\n\n\nThis isn\u2019t unfounded: Suhaimi Ali, BNM\u2019s innovation and development director, told \nFintech Malaysia\n in \na June 17 interview\n that the bank had seen a number of applicants using political connections to lobby and get a head start in the digital-banking license process.\n\n\nHe said the bank adhered to a strict governance process in assessing applicants and wanted all parties to respect that process.\n\n\nSuhaimi\u2019s remarks are best read as aspirational. While the bank touts good governance, it is also under the control of the Ministry of Finance, which is a political entity.\n\n\nIt\u2019s worth noting that among the 29 applicants are politically controlled entities, state governments, government-linked companies, and firms led by founders with deep political ties. But there are also applicants without hefty political clout that might competently run a digital bank.\n\n\nEach of them has various reasons to apply. For those looking at this from a purely business perspective \u2013 such as Grab, with its nationwide database of delivery riders and customers \u2013 snagging a license provides a moat in the country\u2019s competitive tech landscape.\n\n\nIn an ideal world, the central bank should award the five licenses to the consortiums with the best business plans.\n\n\n\u2014 \nEmmanuel\n\n\n\n\nNEWS YOU SHOULD KNOW\n\n\nCheck out \nTech in Asia\u2019s\n coverage of the fintech scene \nhere\n.\n\n\n1\ufe0f\u20e3 \nIndonesia\u2019s FinAccel acquires majority stake in local bank (Updated)\n: FinAccel, the parent company of Kredivo, an Indonesia-based buy now, pay later service, has obtained all the necessary regulatory approvals for the acquisition of Bank Bisnis Internasional, which it plans to transform into a digital bank.\n\n\n2\ufe0f\u20e3 \nSBI Ventures Singapore joins Philippine startup\u2019s $6m round\n: Wealth management startup Seedbox Technologies, which lets users invest in funds online at low cost, says it has over 1 million users.\n\n\n3\ufe0f\u20e3 \nGojek sells Coins.ph to ex-Binance CFO for almost $200m\n: Coins.ph, which started as a digital wallet that can be used to buy and sell crypto assets, announced its integration with Ronin last month.\n\n\n4\ufe0f\u20e3 \nAkulaku gets $10m funding for SEA push\n: The debt funding comes after the Indonesian fintech firm raised US$100 million in a series E round from Thailand\u2019s Siam Commercial Bank in February, turning the former into a unicorn.\n\n\n5\ufe0f\u20e3 \nPace acquires Rely for BNPL boost\n: The acquisition of Singapore\u2019s first BNPL player will extend Pace\u2019s reach in Singapore and Malaysia.\n\n\n\n\nFYI\n\n\nApple working to bring more financial services in house\n\n\nThese include payment processing, risk assessment for lending services, and credit checks. The move would reduce its reliance on third-party providers for future products.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere\n.\n\n\nNot your cup of tea? You can unsubscribe from this newsletter by going to your \u201cedit profile\u201d page and choosing that option in our preferences center.\n\n\nIn the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com.\n\n\nSee you next week!"}
{"title": "Malaysian fintech app nets $15.5m in series A money", "body": "Gotrade\n, a Malaysia-based investing app, has raised US$15.5 million in a series A round led by Velocity Capital Fintech Ventures.\n\n\n\n\nTeam Gotrade / Photo credit: Gotrade\n\n\n\n\nThe funding will be used to grow Gotrade\u2019s team and launch localized versions of its product in various markets, starting with Southeast Asia.\n\n\nThe startup also said it is rolling out its services in Indonesia, allowing users to invest as little as US$1 in the likes of Tesla, Apple, and Netflix on its commission-free platform.\n\n\nIt has partnered with Valbury Asia Futures, the Jakarta Futures Exchange, and the Futures Clearing House of Indonesia \u2013 all regulated by the country\u2019s derivatives regulator Bappebti \u2013 to design a derivative that gives the end users market access to US stocks. As part of the deal, Valbury Group owner \nAndrew Haryono\n has been recognized as a co-founder of Gotrade.\n\n\nGotrade also announced two senior executive hires: \nTan Hui Lynn\n and \nJeremy Ng\n, joining the startup as general counsel and chief financial officer, respectively.\n\n\nFounded in 2019 by \nRohit Mulani\n, \nNorman Wanto\n, and \nDavid Grant\n with the mission to make investing accessible to everyone, Gotrade allows users to buy fractional shares in global giants on the New York Stock Exchange and Nasdaq. It claims to now have \n500,000 \nusers from over \n140 \ncountries.\n\n\nLast year, the fintech platform raised \nUS$7 million\n in a seed round.\n\n\nThe series A round also saw participation from:\n\n\n\n\nMitsubishi UFJ Financial Group\n\n\nBeenext\n\n\nKibo Ventures\n\n\nPicus Capital\n\n\nLocalGlobe\n\n\nSocial Leverage\n\n\nRaptor\n\n\n\n\nSee also: \nExclusive: Bukalapak co-founders back \ud83c\uddee\ud83c\udde9 B2B fintech startup amid funding spree"}
{"title": "Turbulence ahead for AirAsia parent as it chases super-app dreams", "body": "Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a Premium subscription\n.\n\n\nHello reader,\n\n\nI\u2019m really thrilled by the prospect of being able to travel again. With most of the population fully vaccinated, Singapore recently simplified its protocols for travelers entering the country. Many other countries are opening their borders to tourists as well and streamlining their processes.\n\n\nAs such, I\u2019ve been spending a lot of my spare time looking up flights and hotels, making plans for my next holiday.\n\n\nI\u2019m not the only one who\u2019s excited about travel and tourism picking up again. Capital A, the parent company of Malaysian carrier AirAsia, pivoted towards \nbeing a super app\n amid the pandemic, rolling out a multitude of digital businesses beyond its airline offering.\n\n\nAs Capital A pursues its goal of becoming a tech company, the return of travel will likely put some cash in its pockets \u2013 which it certainly needs more of.\n\n\nToday we look at:\n\n\n\n\nCapital A\u2019s \nfunding setback\n and what it means for the business\n\n\nA Singaporean fintech startup focused on domestic workers\n\n\nOther newsy highlights such as Grab\u2019s head of tech\u2019s new venture and the aftermath of Shopee India\u2019s closure\n\n\n\n\n\n\nPremium summary\n\n\nThe road ahead for Capital A\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nCapital A \u2013 formerly known as AirAsia Group \u2013 has been making a concerted push towards becoming a super app, adding logistics, fintech, and other digital services to its AirAsia business. But as it moves towards becoming a tech company, it faces a bumpy road ahead.\n\n\n\n\n\n\nA question of funding\n: Capital A embarked on a major fundraising push, aiming to collect US$592 million. However, negotiations for one of the main funding sources for the tranche \u2013 a US$118 million club facility backed by state-owned financial insurer Danajamin \u2013 broke down. Without the Danajamin guarantee, Capital A would be pressured to raise funds to expand operations and diversify.\n\n\n\n\n\nThe challenges are many\n: Earlier this year, Capital A dropped to PN17 status, a tag given by the Malaysian stock exchange for financially distressed firms, putting it at risk of being delisted. Additionally, Capital A\u2019s airline and digital businesses are still in the red, with the latter likely to face stiff competition from the likes of Grab and Foodpanda.\n\n\n\n\n\n\nHopes for the future\n: Many of the developments that could act as positive catalysts for Capital A are still up in the air, such as the group\u2019s application for a digital banking license in Malaysia and the potential uptick for AirAsia as Malaysia opens its borders and travel resumes. Only time will tell what\u2019s in store for Capital A.\n\n\n\n\n\n\nRead more: \nCapital A faces funding setback in super-app push\n\n\n\n\nStartup spotlight\n\n\nPayments please\n\n\n\n\nJiPay executives (from left) tech lead Chin Rui Chew, product operations manager May Thu Lwin, CEO Dayana Yermolayeva, and growth lead Shiva Raju / Photo credit: JiPay\n\n\n\n\nMy family had a domestic helper when I was growing up, and I have vague memories of my mother withdrawing cash so that our helper could do the groceries. The ways people pay and transact have changed tremendously since then \u2013 and Singapore-based JiPay \nhas raised US$1.3 million\n in a seed round led by East Ventures to help facilitate this shift.\n\n\n\n\n\n\nFounded in 2020\n, JiPay offers a prepaid Mastercard service that can be used by domestic helpers to buy groceries and supplies for their employers. The company also provides an app that allows domestic helpers to pay through Singapore\u2019s PayNow service and lets employers monitor the spending of their helpers via the same app.\n\n\n\n\n\nSo far,\n JiPay has hit US$1 million in card spending and saw transaction volumes grow by more than 10x in the past six months.\n\n\n\n\n\n\nThe fresh funding\n will be used for hiring and product development. JiPay also plans to offer personal accounts for domestic helpers \u2013 many of whom come from other countries \u2013 that can help them receive, save, and send their salaries to their families back home.\n\n\n\n\n\n\n\n\nIn partnership with\n\n\n\n\nAll about edtech in one place\n\n\n\n\nEdtech is on the rise around the world, and it\u2019s revolutionizing the way we learn and work.\n\n\nIf you want to know how edtech can make a difference, join the annual ASU+GSV Summit. Held from April 4 to 6, the event is a collaboration between Arizona State University and Global Silicon Valley.\n\n\nThe summit will cover everything edtech, from the GSV Cup Pitch Competition spotlighting \u201cPre-K to Gray\u201d edtech startups to in-depth discussions on the future of education and workforce skills. There will also be panels that explore the ways in which edtech has helped democratize education and the role of the metaverse in learning, as well as how edtech can drive greater awareness of climate action and other social issues.\n\n\nKeynote speakers such as renowned author Margaret Atwood, metaverse expert Cathay Hackl, and US Surgeon General Vivek Murthy will be in attendance. Their talks will be streamed live and available on demand, alongside pitches from the top 20 startups in the GSV Cup competition, which will award the winner with US$1 million in cash and credits.\n\n\nReady to find out more about what edtech can do? Sign up to attend the summit virtually \nhere\n.\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nGaming your way to unicorn status\n\nGames24x7 \nhas secured US$75 million\n in a round led by Malabar Investment. According to sources, the India-based multigame platform\u2019s valuation now stands at US$2.5 billion, making it the country\u2019s newest unicorn. Founded in 2006, Games24x7 offers titles like RummyCircle, My11Circle, and U Games and says it has over 100 million users.\n\n\n2\ufe0f\u20e3 \nFrom Grab to gaming\n\nWui Ngiap Foo, Grab\u2018s head of tech, \nis leaving\n the Southeast Asian super app after seven years to lead a crypto gaming venture. He is reportedly set to join Ethlas as the company\u2019s co-founder and CEO. Ethlas is a gaming platform built on the blockchain that allows players to amass tradeable crypto coins.\n\n\n3\ufe0f\u20e3 \nThe aftermath of Shopee\u2019s failed venture into India\n\nShopee India will \nlay off over 300 staff\n after it decided to shut down operations in the country. The news came as a shock to employees, who were unaware about the closure until Monday. Shopee will offer severance pay for three months \u2013 April, May, and June \u2013 to all employees, with March salaries will be credited as per usual. Meanwhile, competitor firms are already eyeing these employees to fill their ranks.\n\n\n4\ufe0f\u20e3 \nMore bucks for this blockchain-focused fund\n\nGumi Cryptos Capital (GCC), a blockchain-focused VC firm that has backed startups like OpenSea and Yield Guild Games, has raised US$110 million \nfor its second fund\n. GCC will invest in early-stage companies that build solutions in blockchain infrastructure, developer tools, gaming, decentralized finance, metaverse, decentralized autonomous organizations, and Web3 applications.\n\n\n5\ufe0f\u20e3 \nGoTo\u2019s IPO plans get going\n\nIndonesia\u2019s GoTo Group, the combined entity of Gojek and Tokopedia, is \nset to raise\n around US$1.1 billion in a local listing slated for April 11. It is expected to be the third-largest IPO in Asia and fifth-largest in the world this year, according to a company statement. However, the target amount is lower than GoTo\u2019s initial plan to raise a maximum of US$1.4 billion.\n\n\n6\ufe0f\u20e3 \nNo code? No problem\n\nUK-based Builder.AI \nhas received US$100 million\n in a series C funding led by Insight Ventures. Established in 2016, the firm offers a no-code development platform powered by AI for faster software and app building. It is also working on knowledge graph-powered code synthesis and hopes to use the latest fundraise to fuel AI-related investments and develop its conversational AI product."}
{"title": "Fintech unicorn Airwallex launches in Malaysia", "body": "Airwallex\n, a Hong Kong-based fintech platform, has launched its cross-border payment services in Malaysia, after \nscoring a money services license\n from Bank Negara Malaysia in August last year.\n\n\n\n\nAirwallex CEO and co-founder Jack Zhang / Photo credit: Airwallex\n\n\n\n\nWith the launch, the company said that \u201cqualified businesses\u201d will be given access to its foreign exchange conversions and payouts services in more than 130 countries. In the next few months, these services will be available to more businesses across Malaysia.\n\n\nAirwallex was founded in 2015 by \nJack Zhang\n and \nMax Li\n. Launched in Melbourne, the firm has raised more than US$800 million and is currently valued at around US$5.5 billion. The company has onboarded more than 1,000 employees and tens of thousands of customers to date.\n\n\nEarlier this year, the unicorn startup \nexpanded to Singapore\n after acquiring a Major Payment Institution License from the Monetary Authority of Singapore.\n\n\nSee Also: \nSeries SEA: Who\u2019s investing in the region\u2019s fintech startups?"}
{"title": "YC doubles the number of SEA startups in latest cohort", "body": "Startup enabler \nY Combinator\n has unveiled the 33 Southeast Asian startups that have been included in its latest winter 2022 cohort. The number is almost doubled from the last batch and amounted to around 8% of the 414 startups that were funded by the accelerator in this cohort.\n\n\n\n\nAs part of the accelerator program, Y Combinator will invest US$125,000 in seed capital for a 7% stake in each startup. It will also give them access to company-building workshops, a global curriculum, and support from a community of mentors.\n\n\nFrom those 33 startups, around half of them come from Indonesia, while another 10 are headquartered in Singapore. Five startups originate from Vietnam while two others hail from Malaysia. These 33 startups offer solutions for industry verticals such as fintech, quick commerce, \nSaaS\n, recruitment, and blockchain, among others.\n\n\nHere\u2019s a list of startups from Southeast Asia that have made it to the YC W22 program:\n\n\nIndonesia\n\n\nCrediBook\n\n\nFounders:\n \nGabriel Frans\n, \nChristian Lee\n, and \nDekha Anggareska\nLaunch:\n 2020\n\n\nCrediBook digitizes the SME supply chain, from wholesale to retail, through an online wholesale and bookkeeping operation system.\n\n\nFresh Factory\n\n\nFounders:\n \nWidijastoro Nugroho\n, \nLarry Ridwan\n, and \nAndre Septiano\nLaunch:\n 2020\n\n\nFresh Factory provides a network of hyperlocal cold chain fulfillment centers and have equipped them with fulfillment management systems.\n\n\nDropezy\n\n\nFounders:\n \nChandni Chainani\n and \nNitesh Chellaram\nLaunch:\n 2021\n\n\nDropezy is a startup that delivers groceries in under 15 minutes.\n\n\nBananas\n\n\nFounders:\n \nMario Gaw\n and \nKristian F. H. Sinaulan\nLaunch:\n 2021\n\n\nBananas enables users to order groceries and get them delivered in 10 minutes.\n\n\nRadius\n\n\nFounders:\n \nIvan Darmawan\n, \nChryssia Natalia\n, and \nStephanie Wongsoredjo\nLaunch:\n 2021\n\n\nRadius offers 15-minute grocery deliveries in Indonesia\u2019s Tier 2 cities.\n\n\nAigis\n\n\nFounders:\n \nReinhart Hermanus\n, \nPhilip Moniaga\n, and \nSebastian Yaphy\nLaunch:\n 2021\n\n\nAigis is a digital health insurance provider for the Indonesian market.\n\n\nDeall SejutaCita\n\n\nFounders:\n \nAndhika Sudarman\nLaunch:\n 2020\n\n\nDeal SejutaCita helps companies hire college students and recent graduates by promoting their career events and vacancies.\n\n\nLumina\n\n\nFounders:\n \nAswin Andrison\n and \nTri Ahmad Irfan\nLaunch:\n 2021\n\n\nLumina is a job platform for blue-collar workers in Southeast Asia.\n\n\nFinku\n\n\nFounders:\n \nShyam Kalairajah\n, \nReinaldo Tendean\n, and \nShylla Pramadhani\nLaunch:\n 2021\n\n\nFinku is a personal finance platform for Indonesians.\n\n\nPina\n\n\nFounders:\n \nChristian Hermawan\n, \nFajar Kuntoro\n, \nDaniel van Leeuwen\n, and \nHendry Chou\nLaunch:\n 2020\n\n\nPina is a personal money management app for Indonesians.\n\n\nSribuu\n\n\nFounders:\n \nNadia Amalia\n, \nNadia Fadhila\n, and \nFransisca Susan\nLaunch:\n 2021\n\n\nSribuu is a wealth management platform for Indonesians.\n\n\nRocket Pocket\n\n\nFounders:\n \nAgnes Lie\n, \nDominic Sumarli\n, and \nFrederick Widjaja\nLaunch:\n 2022\n\n\nRocket Pocket is a fintech app for teenagers in Indonesia.\n\n\nUpBanx\n\n\nFounders:\n \nWafa Taftazani\n, \nAlif Jafar Fatkhurrohman\n, and \nHendri Wijaya\nLaunch:\n 2021\n\n\nUpBanx is a financial app for direct-to-consumer brands and content creators.\n\n\nTransfez\n\n\nFounders:\n \nBondan Herumurti\n and \nEdo Windratno\nLaunch:\n 2020\n\n\nTransfez is a financial app for small businesses in Indonesia.\n\n\nBipi\n\n\nFounders:\n \nDavid Chew\n and \nYih Lin Teh\nLaunch:\n 2021\n\n\nBipi is a mobile point-of-sale system for corner stores.\n\n\nBlocknom\n\n\nFounders:\n \nGhuniyu Fattah Rozaq\n and \nFransiskus Raymond\nLaunch:\n 2021\n\n\nBlocknom is a crypto investment platform for Southeast Asia.\n\n\nSee also: \nThese are the most active investors in Indonesia\u2019s startups\n\n\nSingapore\n\n\nPoko\n\n\nFounders:\n \nSean Ang\n, \nGeoffrey See\n, and \nVan Tran\nLaunch:\n 2021\n\n\nPoko is a collaboration platform for the Web3 sector.\n\n\nCircular\n\n\nFounders:\n \nYaniv Bernstein\n, \nGeorge Oliver\n, \nNick Ramsay\n, and \nPantha Roy\nLaunch:\n 2021\n\n\nCircular offers subscriptions for users to access and experience tech products such as smartphones, laptops, headphones, wearables, and virtual reality devices.\n\n\nSyncware\n\n\nFounders:\n \nDirk Jan van Veen\n and \nWalter Pintor\nLaunch:\n 2021\n\n\nSyncware is helping factories save power and reduce carbon emissions via sensors.\n\n\nPowerhouse AI\n\n\nFounders:\n \nKushal Pillay\n and \nIvo Verhaegh\nLaunch:\n 2021\n\n\nPowerhouse AI is a solution that automates warehouse inventory checks with mobile devices.\n\n\nUnravel Carbon\n\n\nFounders:\n \nMarc Allen\n, \nSimon Christofides\n, and \nGrace Sai\nLaunch:\n 2021\n\n\nUnravel Carbon is an enterprise software that helps companies track and reduce their carbon emissions.\n\n\nTake App\n\n\nFounders:\n\u00a0\nYoumin Kim\nLaunch:\n 2021\n\n\nTake App is an ecommerce enabler platform that allows online sellers in Southeast Asia to take orders via WhatsApp messages.\n\n\nSuggestr\n\n\nFounders:\n \nAditya Mehta\n and \nOleksii Sidorov\nLaunch:\n 2021\n\n\nSuggestr\u2019s solution helps online sellers to increase their sales through various personalized efforts.\n\n\nPeakflo\n\n\nFounders:\n \nSaurabh Chauhan\n and \nDmitry Vedenyapin\nLaunch:\n 2021\n\n\nPeakflo is a platform that enables SMEs to collect payments from customers and vendors.\n\n\nPower to the Brand\n\n\nFounders:\n \nRasmus Chow\n and \nYee Meng Chua\nLaunch:\n 2021\n\n\nPower to the Brand is a marketing and distribution-as-a-service firm in Southeast Asia.\n\n\nCherry Recommends\n\n\nFounders:\n \nIsaac Donnelly\n and \nRian Finnegan\nLaunch:\n 2020\n\n\nCherry Recommends is an AI-powered promotion management platform.\n\n\nSee also: \nThese are the most active investors in Singapore\u2019s startups\n\n\nVietnam\n\n\nGimo\n\n\nFounders:\n \nNgoc Nguyen\n and \nQuan Nguyen\nLaunch:\n 2019\n\n\nGimo is an earned-wage access platform from Vietnam.\n\n\nMarathon Education\n\n\nFounders: \nDuc Pham\n and \nTran Viet Tung\n\nLaunch: 2021\n\n\nMarathon Education provides live interactive tutoring classes to K-12 students in Vietnam.\n\n\nTradezi\n\n\nFounders:\n \nPhil Dang\n and \nJasmine Huynh\nLaunch:\n 2022\n\n\nTradezi is an investment app for Southeast Asia that offer stocks, crypto, and other alternative assets.\n\n\nAnfin\n\n\nFounders:\n \nMichael Do\n and \nPhuoc Tran\nLaunch:\n 2021\n\n\nAnfin is an investment app in Vietnam.\n\n\nNook\n\n\nFounders:\n \nRobert Huynh\n and \nNathaniel Ricca\nLaunch:\n 2021\n\n\nNook is a platform to redesign and remodel homes in Southeast Asia.\n\n\nSee also: \nThese are the most active investors in Vietnam\u2019s startups\n\n\nMalaysia\n\n\nDurioo\n\n\nFounders:\n \nSinan Ismail\nLaunch:\n 2021\n\n\nDurioo creates and licenses high quality Islamic cartoons and shows for kids that are available on its subscription app.\n\n\nYezza\n\n\nFounders:\n \nWan Aizuddin\n and \nAmmar Roslizar\nLaunch:\n 2020\n\n\nYezza is an ecommerce enabler that helps small businesses in Southeast Asia to create online stores on WhatsApp."}
{"title": "Capital A faces funding setback in super-app push", "body": "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.\n\n\nHis sales pitch: Capital A will survive the Covid-19 pandemic and stage a roaring comeback.\n\n\nTo headline its efforts, the group embarked on a major fundraising push, aiming to collect 2.5 billion ringgit (US$592 million).\n\n\nThe hype, however, dissipated when negotiations for one of the main sources of funding for the tranche \u2013 a 500 million ringgit (US$118 million) club facility backed by state-owned financial insurer Danajamin \u2013 broke down.\n\n\n\n\nPhoto credit: Capital A\n\n\n\n\nThe Danajamin-backed loan was a game changer for Capital A, which was reeling from the effects of pandemic-induced restrictions.\n\n\nOn October 5 last year, Capital A received the \nnecessary approvals\n from Danajamin for a club facility. The guarantee from the Malaysian government \u201cis a strong signal of support,\u201d the group said in a statement.\n\n\nAll of this came undone when Fernandes and Capital A co-founder Kamarudin Meranun announced on March 11 that they \nwould be rejecting the loan\n, citing Danajamin\u2019s requirement that the two founders act as guarantors, among other issues.\n\n\nIn 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.\n\n\nKuala Lumpur-based investors \nTech in Asia\n spoke to were divided over Danajamin\u2019s 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.\n\n\nBut 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 \u201cpent-up demand for travel\u201d that will benefit the group once Malaysia opens its borders on April 1.\n\n\nAny hint of recovery, they say, will only likely happen in 2023.\n\n\nExacerbating matters is that on January 7 this year, Capital A dropped to PN17 status, a tag given by the Bursa Malaysia (the country\u2019s 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.\n\n\nDoor \u201cremains open\u201d\n\n\nAs 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.\n\n\nThe group is also raising US$225 million from foreign banks.\n\n\nA fund manager speaking to \nTech in Asia\n on condition of anonymity believes that Capital A still has three options to consider if it wants to plug the gap left by Danajamin.\n\n\nFirst, the group can apply for another round of private placement and rights issuances. \u201cThis may take some time, roughly six months for necessary approval from the Securities Commission Malaysia, and may further dilute shareholders\u2019 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.\u201d\n\n\nSecond, the fund manager argues that Capital A can raise funds from private equity investors or take loans from foreign banks. \u201cThey may also consider listing some of their subsidiaries.\u201d\n\n\nFernandes \ntold \nTech in Asia\n in August last year that he was considering listing in the US via a special purpose acquisition company within five to six months\u2019 time. This has yet to materialize.\n\n\nThird, 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. \u201cThere\u2019s no clause that restricts businesses who have been rejected from not applying, so the door remains open for Capital A.\u201d\n\n\nProgress still up in the air\n\n\nCapital A\u2019s core revenue streams can be broken down into two major sections, according to its unaudited financial statement for December 31, 2021 (FY21).\n\n\nThere\u2019s 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).\n\n\nBut both segments are still in the red and have posted negative \nEBITDA\n figures, according to Capital A\u2019s FY21 financials. The group, however, has narrowed its losses since last year.\n\n\n\n\nDespite Malaysia\u2019s announcement to open its borders, equity analysts attached to major Kuala Lumpur-based equity research houses are divided over Capital A\u2019s near-to-mid-term prospects.\n\n\nFor instance, in its March 1 note, Public Investment Bank flagged the group\u2019s PN17 status and raised concerns over \u201cchallenges\u201d the group may encounter in dealing with the problem in the \u201cnear to medium term.\u201d\n\n\nWhile some lenders may be averse to provide financing to Capital A, others, such as Kenanga Investment Bank\u2019s Raymond Choo, are more bullish on Capital A\u2019s prospects.\n\n\nWith \u201cleaner and more optimized airline operations\u201d 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.\n\n\nTwo analysts \nTech in Asia\n spoke to say they are not releasing a note with their recommendations to clients soon, as \u201cthere\u2019s nothing really substantial\u201d from Capital A at the moment. They add that many of the developments that could act as positive catalysts for the group are tentative \u2013 the pending approval for the company\u2019s digital banking license is one example.\n\n\nBank Negara Malaysia, the country\u2019s central bank, is expected to announce the five winning consortiums for a digital banking license by the end of March.\n\n\nCapital A\u2019s 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.\n\n\nIkhlas Capital is a private equity firm partly owned by former banker Nazir Razak, \nthe younger brother of former prime minister Najib Razak\n. Nazir is also the non-executive chairperson of Bank Pembangunan Malaysia, the country\u2019s largest development financial institution (DFI), which in turn owns Danajamin.\n\n\nMIDF is also a DFI under the purview of the International Trade and Industry Ministry.\n\n\nTricky tech pivot\n\n\nThe two analysts we spoke to also opined that Capital A\u2019s digital businesses may not live up to expectations, especially in the \u201ccompetitive\u201d ride-hailing and ecommerce spaces, where the likes of Grab and Foodpanda dominate.\n\n\n\u201cAs we have seen with Grab\u2019s 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?\u201d one analyst asks.\n\n\nGrab\u2019s 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.\n\n\nGunning to dominate the digital business scene, especially deliveries, was initially not something Fernandes had in mind. He told \nTech in Asia\n in \nan interview last August\n that he was \u201cnot there to necessarily become number one in food delivery.\u201d\n\n\nBut 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.\n\n\n\u201cWhen (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, \u2018I think we can,\u2019\u201d Fernandes told a press conference that day.\n\n\nA private equity investor tells \nTech in Asia\n that Capital A does have an existing database that may come in handy in providing solutions and products.\n\n\nMeanwhile, Hong Leong Investment Bank aviation analyst Daniel Wong points out that the firm is also developing its digital arm.\n\n\nIn his March 1 note, Wong indicates another advantage: AirAsia Digital Engineering\u2019s plans to construct its own maintenance, repair, and overhaul facilities at the Kuala Lumpur International Airport.\n\n\nCapital A\u2019s 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.\n\n\nHome is where the battle is\n\n\nTo be sure, Capital A is certainly not just a Malaysian brand. Its airline and digital businesses are regional.\n\n\nHowever, Fernandes wrote in a \nMarch 18 LinkedIn post\n that Capital A is \u201ca new company and branding starts at home.\u201d\n\n\nBut changes are afoot in its home country. The Malaysian Aviation Commission, the country\u2019s civil aviation industry regulator, approved the application of two new discount airlines \u2014 MyAirline and SKS Airways.\n\n\nMalaysia Airlines, the country\u2019s ailing flag carrier, chided the decision, saying the approval would lead to worsening overcapacity. AirAsia, meanwhile, welcomed the move.\n\n\nAlthough the newer entrants will not match AirAsia, investors tell \nTech in Asia\n that Capital A\u2019s recent board appointments in its airline business also point to a more aggressive move to stay in pole position.\n\n\nJamaludin Ibrahim, a telco veteran whose last high-profile gig was as Axiata\u2019s chief executive, was appointed AirAsia chairperson on February 10 this year.\n\n\nAirAsia 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.\n\n\nWhile 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.\n\n\nWZ Satu has been known to be a company linked to the Pahang royal family.\n\n\nAccording to the firm\u2019s 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.\n\n\nIn 2018, Norza pushed for a new low-cost carrier terminal, a proposal \nbacked by AirAsia\n.\n\n\nIn search of a break\n\n\nSince 2020, Fernandes and AirAsia have been the subject of intense scrutiny. Early that year, the founder tried pushing for a \nmerger between AirAsia and Malaysia Airlines\n, but that didn\u2019t pan out after the deal was leaked to business publication \nFocus Malaysia\n.\n\n\nSovereign wealth fund Khazanah Nasional, Malaysia Airlines\u2019 ultimate shareholder, would go on to \nfile a police report\n against the publication and, through its lawyer, issue a cease-and-desist against the newsroom from publishing more on the deal.\n\n\nFernandes and Kamarudin would again be in the spotlight after Airbus admitted to \nbribing two executives in AirAsia\n and its long-haul sister AirAsia X for a sports car deal.\n\n\nThe 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.\n\n\nBut the investigations by regulators Securities Commission Malaysia and the Malaysian Anti-Corruption Commission have yet to be made public.\n\n\nAirAsia also had to \nlay off a total of 2,400 staff members\n in October 2020 and last year. Some of the company\u2019s key talent \nleft the firm\n 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.\n\n\nFernandes said in a March 28 \npress conference\n that AirAsia had settled over 90% of passenger refunds with more to be fulfilled \u201cas the flights resume.\u201d\n\n\nThe founder opined in a LinkedIn post that, after restructuring Capital A, he finally saw \u201clight\u201d despite having \u201ca long way to go.\u201d This time, he\u2019ll need to have a runway that\u2019ll last him and his group until 2023.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.20 ringgit."}
{"title": "500 Global-backed agritech firm reaps $3m in seed money", "body": "Plant Cartridge\n, a Kuala Lumpur-based agritech company that offers sustainable agriculture solutions, has raised US$3 million in seed funding.\n\n\n\n\nPhptp credit: Plant Cartridge\n\n\n\n\nBacked by \n500 Global\n\u00a0and 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.\n\n\nFounded in 2016 by \nChanning Liang\n and \nMichael Mak\n, 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.\n\n\nThe 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.\n\n\nSee also: \nIndonesian agritech is pandemic-proof, but here are the warning signs"}
{"title": "Can the crabs take over the axies?", "body": "Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a Premium subscription\n.\n\n\nHello reader,\n\n\nIn 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.\n\n\nNow, 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.\n\n\nThe 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).\n\n\nToday we look at:\n\n\n\n\nThe \nnewest play-to-earn game\n that could be the next Axie Infinity\n\n\nA gaming startup that has launched operations in Japan\n\n\nOther newsy highlights such as a fintech platform that is looking to compete with Grab and GoTo, and a \u2018Robin Hood\u2019 hacker who has exploited crypto worth US$52.8 million.\n\n\n\n\nAlso, if you\u2019re a tech firm bringing your A-game to the startup ecosystem, do fill out this \nCDP x Tech in Asia\n \nquestionnaire survey\n and celebrate your participation in the creation of a net-zero economy.\n\n\n\n\nPremium summary\n\n\nBattle of the crabs\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nCrabada\n is a play-to-earn (P2E) idle game on the Avalanche blockchain that lets players own \nNFT\n crabs and earn rewards by mining, looting, battling, crafting items, and more. The \u201clooting\u201d 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 \nAxie Infinity\n, \nCrabada\n has high user retention and revenue potential.\n\n\n\n\n\n\nCrabadology:\n To get started, \nCrabada\n players need a team of three NFT crabs, which they can buy for around US$8,000 in total. Players who can\u2019t afford to do so can either use the game\u2019s tavern feature \u2013 where experienced players deploy their idle crabs for rent \u2013 or buy a single NFT crab and rent it out until they earn enough money to buy all three.\n\n\n\n\n\nWhat\u2019s it got over \nAxie Infinity\n?:\n Despite \nAxie Infinity\n\u2019s 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\u2019s long-term viability.\n\n\n\n\n\n\nSustainable gaming:\n In the second half of 2021, when the number of SLP minted on \nAxie Infinity\n consistently outpaced those burned, the price of SLP took a beating. Meanwhile, \nCrabada\n\u2019s team has introduced various inflation-reducing game mechanisms that increase the burn of Treasure Under Sea, its in-game currency. This keeps the token\u2019s value from sliding.\n\n\n\n\n\n\nRead more: \nCrabada: the next Axie Infinity?\n\n\n\n\nStartup spotlight\n\n\nYGG enters Mario city\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nYield Guild Games (YGG), a P2E gaming startup, has \nlaunched in Japan\n via partnerships with several industry players. The blockchain-focused company currently has over 100,000 members and 20,000 scholars \u2013 people who rent NFT assets to play P2E games \u2013 from more than 24 countries.\n\n\n\n\n\n\nInvestor bonanza:\n 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.\n\n\n\n\n\nThe Japan plan:\n 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.\n\n\n\n\n\n\nGetting into the legends\u2019 arena:\n Japan is a pioneer of the gaming industry, introducing the world to games such as \nSuper Mario\n, \nPokemon\n, and \nSonic the Hedgehog\n. Japanese mobile games have also recently introduced \u201cgacha\u201d \u2013 a mechanic that brings randomized virtual loot boxes to players \u2013 driving up spending on games.\n\n\n\n\n\n\n\n\nQuick bytes\n\n\n1\ufe0f\u20e3 \nTossing into SEA\n\nSouth Korea-based Viva Republica, which operates mobile financial app Toss, is \nset to raise up to US$1 billion\n in the second quarter this year to take on Grab and GoTo in Southeast Asia. Viva Republica plans to enter five more countries \u2013 Indonesia, Malaysia, Thailand, India, and the Philippines.\n\n\n2\ufe0f\u20e3 \nRobin Hood in town\n\nSolana-based stablecoin protocol Cashio was \nexploited by a hacker for US$52.8 million\n after an \u201cinfinite mint glitch\u201d enabled the person to mint tokens without providing collateral. The hacker has been described as a \u201cmodern-day Robin Hood\u201d for leaving a note in the input data of the Ethereum transactions that says, \u201cAccount with less 100k have been returned. All other money will be donated to charity.\u201d\n\n\n3\ufe0f\u20e3 \nCrypto no more in Malaysia\n\nPutting speculations to rest, Malaysia\u2019s deputy finance minister told parliament that the country \nhas no intention of legalizing cryptocurrencies\n. The government official pointed out how using cryptocurrencies involves drawbacks such as price fluctuations and cybersecurity issues.\n\n\n4\ufe0f\u20e3 \nPre-conditioning for IPOs\n\nSingapore-based PrePO, a decentralized trading platform, has \nraised US$2.1 million\n in a strategic round led by Republic Capital and IOSG Ventures. The firm allows users to take long or short positions on pre-IPO companies and pre-token crypto projects. It also provides users access to pre-public assets as well as transparent and up-to-date market prices.\n\n\n5\ufe0f\u20e3 \nA landmark deal\n\nAustralia and New Zealand Banking Group (ANZ), one of Australia\u2019s top four banks, has \npartnered with Fireblocks\n, a digital asset tech provider, to mint the country\u2019s first digital asset linked to the Australian dollar. ANZ minted the Australian dollar stablecoin, the A$DC, through digital asset investment platform Zercop. The transaction was done for Victor Smorgon Group, a private wealth management firm for digital assets.\n\n\n6\ufe0f\u20e3 \nRobots in kitchens\n\nZomato has \ninvested US$5 million\n for a 16.66% stake in Mukunda Foods, an India-based food robotics company. The investment takes Mukunda Foods\u2019 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."}
{"title": "Ex-Lalamove, Delivery Hero execs\u2019 quick commerce firm raises $6m in pre-seed money", "body": "BeepBeep\n, a Singapore-based quick commerce firm, has raised a US$6 million pre-seed funding round led by Genesia Ventures earlier this year.\n\n\nThe firm currently is also raising a series A round to build 50 warehouses, make new hires, and expand to other countries in Southeast Asia.\n\n\n\n\nPhoto credit: BeepBeep\n\n\n\n\nFounded 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.\n\n\nIn a statement, the company said that its number of orders grew 4x month on month since November 2021.\n\n\nBeepBeep was established by \nMarija Brunier\n and \nGaetano Seminario\n, former executives at Delivery Hero and Lalamove, respectively.\n\n\nSee also: \nWill India\u2019s 10-minute quick commerce model last?"}
{"title": "Crypto won\u2019t be legal tender in Malaysia, minister says", "body": "Putting speculations to rest, Malaysia\u2019s deputy finance minister told parliament that the country has no intention of legalizing cryptocurrencies like Bitcoin, reported \nBloomberg\n.\n\n\nI Mohd Shahar Abdullah\n pointed out how using cryptocurrencies involve drawbacks such as price fluctuations and cybersecurity issues.\n\n\nIn early March, Malaysia\u2019s communication ministry \npushed\n for the adoption of Bitcoin as an official payment method. This comes months after El Salvador became the first country to name \nBitcoin as a national currency\n.\n\n\nSee also: \nWhy China\u2019s crypto exodus is a boon for green bitcoin mining"}
{"title": "Cars24\u2019s impending showdown against Carro, Carsome", "body": "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\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHi there,\n\n\nThese days, conversations with friends are often filled with angst over rising prices.\n\n\nWhile 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.\n\n\nEven better news? Competition in Southeast Asia\u2019s used-car scene is about to heat up, and that could be a boon for car buyers seeking their dream ride on a budget.\n\n\nIn this week\u2019s Big Story, my colleague Samreen looks at Indian pre-owned vehicles marketplace Cars24\u2019s foray into Southeast Asia.\n\n\nFounded 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.\n\n\nIn this week\u2019s Hot Take, I look at how NFTs can take Southeast Asia\u2019s direct-to-consumer scene forward, and why the time to do so could be right.\n\n\n\u2014 Tian Wen\n\n\n\n\nTHE BIG STORY\nCan Cars24 take on Carro, Carsome in SEA?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nCars24 is wheeling around choice, value, and quality to compete with local unicorns Carro and Carsome in SEA.\n\n\n\n\nTHE HOT TAKE\nCan NFTs be rocket fuel for SEA\u2019s D2C brands?\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nSoutheast Asia\u2019s D2C scene continues to boom, with the Philippine market expecting to see a \n56% increase\n in D2C web stores this year.\n\n\nStill, many early-stage D2C players in the region struggle to find profitability.\n\n\nAt the same time, cryptocurrency adoption is reaching all-time highs in Southeast Asia, with funding to blockchain enablers soaring to record levels in 2021.\n\n\n\n\nHere\u2019s our take:\n\n\nSoutheast Asia\u2019s D2C revolution isn\u2019t slowing down.\n\n\nIndonesian brands like beauty startup Social Bella and fashion firm Berrybenka are growing in prominence. Meanwhile, the Philippines is expected to see a \n56% increase\n in D2C web stores this year.\n\n\nBut it\u2019s still too early to pop the champagne. Even now, most early-stage D2C players \nstill struggle\n to break even, let alone scale their business.\n\n\nAt 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.\n\n\nIf there\u2019s a way for Southeast Asian D2C brands to have their cake and eat it, the answer could lie in blockchain technology. Here\u2019s why.\n\n\nD2C brands work when they \nattain\n 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.\n\n\nIntegrating NFTs as part of community building could strengthen brand loyalty and keep customers coming back for more. That\u2019s a plus for customer lifetime value and the overall financial health of D2C brands.\n\n\nNFTs also help brands with cash flow by getting people to buy into a concept before a product is delivered.\n\n\nCase in point: Singapore-based NFT community Luna Kiddy \nplans\n 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.\n\n\nBut if pundits have been heralding Southeast Asia\u2019s blockchain era for years, why should anyone, let alone D2C brands, be serious about it now?\n\n\nFor one, crypto has gone mainstream in the region. Blockchain enablers are also gaining traction, and even established banks like Thailand\u2019s Siam Commercial Bank and Singapore\u2019s DBS are making a splash in the space.\n\n\nStill, there are a couple of roadblocks D2C brands will have to deal with if blockchain adoption is on the cards.\n\n\nThe interest in NFTs has \ncooled lately\n 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.\n\n\nThe mushrooming of blockchains could also \nmake it difficult\n 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.\n\n\nAre NFTs the rocket ship Southeast Asia\u2019s D2C commerce scene has been looking for? It could be a long-term game changer \u2013 or a quick ride on and off the Web3 hype train.\n\n\n\u2014 Tian Wen\n\n\n\n\nNEWS YOU SHOULD KNOW\n\nCheck out \nTech in Asia\u2019s\n coverage of the ecommerce scene \nhere\n.\n\n\n1\ufe0f\u20e3 \nAlibaba\n has \napproved\n 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\u2019s ongoing regulatory crackdown.\n\n\n2\ufe0f\u20e3 \niPrice Group\n, a Malaysia-based price comparison platform, has \nraised\n US$5 million from Japanese conglomerates Itochu Corporation and KDDI Corporation.\n\n\n3\ufe0f\u20e3 \nCommerceIQ\n, a US-based retail ecommerce management platform with operations in India, has \nraised\n US$115 million in a SoftBank-led series D funding round.\n\n\n4\ufe0f\u20e3 \nPinduoduo\u2019s\n revenue \nsaw\n a sluggish 3% year-on-year increase to US$4.3 billion due to weak user growth and fluctuations in user activity.\n\n\n5\ufe0f\u20e3 \nThe Parent Inc\n, the owner of Singaporean parenting community platform theAsianparent, has \nraised\n US$8 million from Line Southeast Asia, the VC arm of Japanese messaging platform Line.\n\n\n\n\nFYI\nAfter $1.5b IPO, Bukalapak explores new frontier: gaming\n\n\n\n\nPhoto credit: Bukalapak\n\n\n\n\nWhile 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.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere\n.\n\n\nNot your cup of tea? You can unsubscribe from this newsletter by going to your \u201cedit profile\u201d page and choosing that option in our preference center.\n\n\nSee you next week!"}
{"title": "Malaysian ecommerce aggregator carts $5m in funding", "body": "Malaysia-based \niPrice\n, 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.\n\n\n\n\nIPrice Group CEO Paul Brown-Kenyon (from left) with company co-founders David Chmela\u0159 and Heinrich Wendel / Photo credit: iPrice Group\n\n\n\n\nEstablished by \nDavid Chmelar\n and \nHeinrich Wendel\n 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.\n\n\nThe 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 \nUS$92 billion\n in transaction value by 2025.\n\n\nIts lending partners include Cashalo in the Philippines, SmartPayin Vietnam, Zip in Singapore, and Home Credit, Julo, and Payku in Indonesia.\n\n\nIPrice 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\n.\n\n\nThe company is eyeing a bigger opportunity in Southeast Asia as digital consumers in the region use almost \neight websites on average\n when shopping."}
{"title": "Grab to provide Shariah-compliant financing for Malaysian drivers", "body": "Regional super app \nGrab\n, through its financial arm, has partnered with \nSedania As Salam Capital\n to provide a Shariah-compliant financing product for its drivers and delivery partners in Malaysia.\n\n\n\n\nPhoto credit: Grab\n\n\n\n\nThe 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\u2019 daily earnings.\n\n\nIn 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).\n\n\nThe 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.\n\n\nSee also: \nOrg Chart: The people driving Grab\n\n\nSedania 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.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.2 ringgit."}
{"title": "Ecommerce enabler to create 10k jobs in Malaysia", "body": "Flash Malaysia Express\n, an ecommerce service provider, is aiming to create 10,000 job opportunities in Malaysia in line with its expansion plans in the country.\n\n\n\n\nPhoto credit: Flash Group\n\n\n\n\nLaunched 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.\n\n\nThe company is currently servicing nearly 30,000 deliveries daily, and it employs 4,000 people, including riders and staff.\n\n\nA business unit under Flash Group, \nThailand\u2019s first unicorn\n, Flash Express also has a presence in Thailand, the Philippines, and Laos.\n\n\nSee also: \nExclusive: Ecommerce enabler Zaapi bags $4m seed round led by Flourish Ventures, GFC, Partech"}
{"title": "Malaysia\u2019s Carsome buys SG car marketplace", "body": "Carsome\n, the Malaysian used-car marketplace,\u00a0has bought a majority stake in \nCarTimes Group\n, a Singapore-based automotive platform, for an undisclosed sum, \nThe Business Times\n \nreported, citing sources.\n\n\nThe 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\u2019 MD Eddie Loo.\n\n\nEstablished in 2001, CarTimes Group provides auto solutions, including retail, rental, insurance, and workshop servicing. Carsome, which raised \nUS$290 million\n in January, is evaluating a potential listing in the US in the later part of 2022.\n\n\nThe acquisition comes amid heated competition in the auto marketplace space as Carsome\u2019s presence in Singapore \u2013 competitor Carro\u2019s home market \u2013 has so far been limited.\n\n\nSee also: \nInside Carsome\u2019s and Carro\u2019s all-out war in Malaysia"}
{"title": "The tech mogul backing Binance\u2019s Malaysia breakthrough", "body": "Binance, one of the world\u2019s largest crypto exchanges, is finally in Malaysia after a rough 2021 trying to break into the country\u2019s growing cryptocurrency market.\n\n\nIn 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.\n\n\nAfter the ban was issued, \nTech in Asia\n understands that a suitor, Penang-based Sinegy, tried to strike a collaboration with Binance but that didn\u2019t materialize. Sinegy is an SC-recognized digital asset exchange (DAX) operator, having been registered with the regulator since June 2019.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nBinance told \nTech in Asia\n that it does not comment on rumors or speculation. Sinegy didn\u2019t respond to requests for comment.\n\n\nBinance 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.\n\n\nMX 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.\n\n\nIn a bourse filing on March 1, Cuscapi estimated that, upon conversion of the shares, it may have \u201can equity stake between 25% and 35%\u201d in MX Global. The DAX, however, did not disclose the amount of Binance\u2019s equity investment.\n\n\nMX Global\u2019s representatives \u201ccame thoroughly prepared when probed by the regulator about the Binance investment,\u201d a source with knowledge of the matter tells \nTech in Asia\n.\n\n\n\u201cSome of the SC officers had reservations, going by the regulator\u2019s actions against Binance last year, but when they queried the MX Global team, the company\u2019s representatives were able to furnish relevant information,\u201d the source explains.\n\n\nThe source didn\u2019t 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 \u201cindustry veterans with experience in navigating the local regulatory landscape.\u201d\n\n\nAll roads lead to Wong\n\n\nAccording to filings with the Companies Commission of Malaysia, MX Global was founded on March 7, 2018. Its directors are Fadzli Shah Anuar \u2013 who serves as the company\u2019s CEO \u2013 as well as Yap Shon Leong, Mat Noor Nawi, Zuraida Elma Zulkefli, and Jason Chan Ling Khee.\n\n\nMost of these names are associated with two large-cap tech companies listed on Bursa Malaysia \u2013 MyEG Services and Excel Force \u2013 and their founder Wong Thean Soon.\n\n\n\n\nMyEG co-founder Wong Thean Soon / Photo credit: MyEG\n\n\n\n\nWong, 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\u2019s ruling party.\n\n\nMyEG, 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).\n\n\nOf the two, MyEG gets more attention as it is a dominant govtech player. It\u2019s noted for its proximity to the nexus of business and politics and its ability to draw in some of the country\u2019s largest institutional investors, such as the Employees Provident Fund.\n\n\nIn 2019, MyEG had to \nissue a statement\n clarifying that Norraesah\u2019s role in the company was not as an Umno proxy but in her capacity as a corporate figure.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nMX Global\u2019s 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.\n\n\nMeanwhile, 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\u2019s finance ministry.\n\n\nMX Global CEO Fadzli runs a company called New Era Strategic Thinking (Nest), and MyEG\u2019s 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.\n\n\nThis link was formed through a \nShark Tank\n-esque reality show called \nMake the Pitch\n 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.\n\n\nWong\u2019s close associates\n\n\nIt is MX Global board member Chan, however, who shares a deeper working history with Wong.\n\n\nThe two were coursemates at the National University of Singapore and both graduated in 1994 with a bachelor\u2019s degree in electrical and electronic engineering, according to \nMyEG\u2019s 2016 annual report\n.\n\n\nChan would go on to work with Wong in some of the latter\u2019s 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 \u201cforward thinking since many Malaysian tech entrepreneurs weren\u2019t brave or imaginative during the Web 1.0 days.\u201d\n\n\nChan 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.\n\n\n\n\nCuscapi executive chairman Jayakumar Panneer Selvam / Photo credit: PRNewsfoto/MX Global\n\n\n\n\nAnother 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.\n\n\nIn 2014, Jayakumar and Wong found themselves in the SC\u2019s crosshairs over \nthe manipulation of MyEG shares\n between January 16 and April 24, 2007.\n\n\nWong 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.\n\n\nAs MyEG\u2019s managing director, Wong was also \nfined\n 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\u2019 permits from 2015 onward.\n\n\nWong only disclosed the information in a conference organized by the investment arm of CIMB Bank on January 6, 2015. The bourse noted that MyEG\u2019s share price shot up 26% in the days following the announcement.\n\n\nAt one point, punters would track Jayakumar and Wong\u2019s investments to uncover companies where both men were involved either as shareholder or director.\n\n\nIn 2017, \nNikkei Asia\n \nreported\n 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\u2019s investment vehicle, Asia Internet Holdings, raised its stake to 9 million shares.\n\n\nThe duo\u2019s 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.\n\n\nIn a statement, Wong blamed \u201ccertain media quarters\u201d that extracted information from annual reports and \u201cpublished stories that created the misperception of impending merger-and-acquisition activity.\u201d\n\n\nHe would go on to vow to never make \u201cany passive investments in listed equities in the future.\u201d\n\n\nHedging their bets\n\n\nAn equities analyst covering MyEG tells \nTech in Asia\n that the tight tech elite network that \u201cwe see is simply due to the nature of the tech space, which is volatile\u201d due to constant political changes.\n\n\n\u201cSo many of these early movers such as Wong and Jayakumar might have cross directorships or shareholdings as a hedge,\u201d the analyst adds.\n\n\nMyEG 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.\n\n\nThe group\u2019s 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\u2019s share price from declining further when it has dipped by 30%.\n\n\nInvestors were jittery because Pakatan Harapan promised a review of all projects approved by its predecessor, some of which were linked to MyEG.\n\n\nThe 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\u2019s cabinet.\n\n\nAhmad Zahid is facing 45 \u200b\u200bcharges 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.\n\n\nMyEG and another listed contemporary, Datasonic Group, were implicated in the charges against Ahmad Zahid. Both companies denied wrongdoing, saying they \nnever paid\n anyone to secure e-government services.\n\n\nIn 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.\n\n\nMyEG 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.\n\n\nBoth acquisition moves coincided with the Pakatan Harapan government\u2019s 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.\n\n\nWhile 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.\n\n\nIris Corp, an immigration services specialist, eventually won the tender. But it is also \npartnering with S5 Systems\n to execute certain core modules of the NIIS project.\n\n\nS5 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.\n\n\nThe MyEG managing director has also recently surfaced as a substantial shareholder of Widetech Malaysia, owning a \n12.29% stake\n in the loss-making property group. His intentions over the acquisition are unknown.\n\n\nWhat MX Global gains from Binance\n\n\nMX Global CEO Fadzli told \nbusiness publication \nThe Edge\n that his company plans to introduce other cryptocurrencies \u2013 such as Solana, Dogecoin, Binance Coin, and Cardano \u2013 to Malaysians.\n\n\nCrypto investors and watchers \nTech in Asia\n spoke to say they\u2019d be keen on whether local investors will get access to Binance\u2019s global liquidity pool that allows for cross-border trade.\n\n\nInvestors are also looking forward to accessing Binance\u2019s global order book like that with Indonesia\u2019s 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.\n\n\nBut to enable these features, including the introduction of new regulated products, MX Global will \u201cneed to convince and meet requirements set out by SC and the central bank, Bank Negara Malaysia,\u201d a Kuala Lumpur-based consultant tells \nTech in Asia\n.\n\n\nHe cites the current SC\u2019s know-your-customer rules that require users of licensed exchanges to be onboarded onshore to allay money laundering and tax evasion concerns.\n\n\n\u201cSome offerings, such as \nNFTs\n, are not regulated but the trading of cryptocurrencies are,\u201d he says.\n\n\nOn Wong\u2019s role, the equities analyst \nTech in Asia\n 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.\n\n\n\u201cWong is also among a handful of Malaysian corporates who have made inroads to China, especially in the blockchain and AI space,\u201d he adds, citing MyEG\u2019s recent launch of NFT Pangolin, a global marketplace that supports the issuance and trading of virtual assets.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.21 ringgit."}
{"title": "Inside Carsome\u2019s and Carro\u2019s all-out war in Malaysia", "body": "Nikita Puri co-reported this story.\n\n\nThere\u2019s 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.\n\n\nBut one point of divergence is in how they have expanded into each other\u2019s home markets. While Carsome\u2019s presence in Singapore \u2013 Carro\u2019s home market \u2013 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.\n\n\n\n\nPhoto credit: Carsome\n\n\n\n\nSince then, Malaysia has become a particularly vicious battleground for the two companies, according to multiple sources who spoke to \nTech in Asia\n. The two automotive marketplaces have gone head to head to attract not just car buyers but also dealers \u2013 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.\n\n\n\u201cCarsome can\u2019t move freely because Carro/myTukar is in Malaysia,\u201d says a source who declined to be named. \u201cHome turf is always more important.\u201d\n\n\nCarsome, Carro, and myTukar declined to participate in this story. A myTukar spokesperson, however, says that following its reorganization, myTukar \u201cachieved record performance in January 2022.\u201d The local car reseller\u2019s revenue for the month was up nearly 40% from November 2021 (when the resignations happened) and over 100% year on year.\n\n\nPreviously, Carsome has \ndenied\n targeting talent \u201cfrom any company,\u201d with a spokesperson telling \nTech in Asia\n that \u201cthere is no attempt as alleged.\u201d\n\n\nA raid on myTukar, and data leaks\n\n\nAs \nTech in Asia\n \nreported\n 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.\n\n\nWhile these employees joined Carsome between November 2021 and January 2022, documents reviewed by \nTech in Asia\n 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.\n\n\nBut 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.\n\n\nIndeed, 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.\n\n\nIn 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 \nTech in Asia\n\u2018s requests for comment.)\n\n\n\n\nOf course, poaching a competitor\u2019s employees isn\u2019t uncommon, but the insider says that Carsome\u2019s poaching is an \u201congoing modus operandi.\u201d\n\n\nCarsome reached out indiscriminately to every single person in myTukar\u2019s senior management in a bid to poach them, he says. \u201cThis was not a normal recruitment exercise, but akin to a raid.\u201d\n\n\nThe source says Carsome has conducted three or four rounds of \u201chighly organized\u201d poaching in total. The latest, which targeted middle and junior staff, was in January 2022.\n\n\nSources 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.\n\n\n\u201cRegardless, the manner they left \u2013 and subsequently aided the poaching or solicitation \u2013 was not very ethical,\u201d says the insider. He further adds that myTukar\u2019s decision to try and retain the six employees was \u201cnot the best decision\u201d as the employees were \u201coverpromoted, and underdelivered.\u201d\n\n\nAnother source familiar with the situation echoes those points, saying that myTukar\u2019s numbers \u201cpractically did not move despite multiplying marketing spending.\u201d But both sources say that the other reason is data leaks.\n\n\nThe 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\u2019s not absolutely certain who perpetrated the leaks, the issue ended around the time the six employees left myTukar.\n\n\nSince 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.\n\n\nWhile there had been some disruption, myTukar also benefited from having its founder, Fong, on the board. Ultimately, the company ensured that \u201crevenues and volumes do not fall off the cliff due to individuals leaving.\u201d\n\n\nCarsome\u2019s \u201cgenerous\u201d incentives\n\n\nTalent was not the only area in which myTukar and Carsome butted heads. A Kuala Lumpur-based used-car dealer tells \nTech in Asia\n that when business slowed during the Covid-19 pandemic, both companies \u2013 along with competitors like \nMuv\n \u2013 started offering incentives.\n\n\nThese 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.\n\n\nOne 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:\n\n\n\n\nThe 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\u2019s online platform.\n\n\nThe dealer says that MyTukar and Muv both offer similar cash bonuses, but they have not been as generous as Carsome.\n\n\nAnother dealer tells \nTech in Asia\n that unlike Carsome, myTukar offers less money \u2013 300 ringgit at most \u2013 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.\n\n\n\n\nCarsome\u2019s promotion for dealers / Photo credit: Carsome\n\n\n\n\nThe second dealer adds that while he had worked \u2013 and continues to work \u2013 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.\n\n\n\u201cOverall, it seems like in the present conditions, Carsome understands the dealer\u2019s situation because they kept launching different campaigns so that dealers could profit during the pandemic,\u201d explains the first dealer. \u201cMyTukar is overall OK, but compared to Carsome, their campaigns are more restrictive.\u201d\n\n\nThat said, \nTech in Asia\n 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.\n\n\nCarsome\u2019s buyback scheme\n\n\nThere is one incentive, however, that only Carsome offers: buybacks. Carsome\u2019s relationship with dealers of used cars runs both ways: Dealers can sell inventory to Carsome and also buy used cars from the platform.\n\n\nThe 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.\n\n\n\u201cSuppose I get a car for 50,000 ringgit and can\u2019t sell it in one or two months, I can relist the same car on Carsome and see how much they offer for it,\u201d says the first dealer. \u201cSometimes they offer a good price and sometimes they offer a bad price.\u201d\n\n\nThis, however, raises the question of how much these cars that have been sold and bought back multiple times may have contributed to Carsome\u2019s revenue.\n\n\nThere doesn\u2019t 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\u2019s 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.\n\n\n\n\nCarro\u2019s Showroom Anywhere in Singapore/ Photo credit: Carro\n\n\n\n\nThis could also mean that it\u2019s hard to make an apple-to-apple comparison of Carro\u2019s and Carsome\u2019s revenue figures.\n\n\nThe first dealer explains that while it is not a common practice \u2013 Carsome had been the one to come up with the idea \u2013 he has been \u201cgrateful to have that.\u201d 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.\n\n\nThe second dealer explains, however, that it all depends on the price: \u201cIf I bought the car for 20,000 ringgit and they offered me 18,000 ringgit, I wouldn\u2019t go for it.\u201d\n\n\nAlso, even though dealers can buy and sell the same car to Carsome multiple times, there\u2019s little incentive to do so. \u201cWhy would we do that? We have to make money.\u201d\n\n\nNonetheless, a source highlights that it could help increase Carsome\u2019s revenue figures or transaction values, particularly as the firm raises new funding.\n\n\nA direct threat\n\n\nIndeed, 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.\n\n\nTo 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 \u2013 a 2.5.x increase \u2013 for FYE March 31, 2021).\n\n\n\n\n\n\nOf course, it\u2019s likely that these numbers would have changed since then \u2013 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.\n\n\nSee More:\n \nCarsome and Carro: A neck-and-neck race to transform how people buy cars\n\n\nThese funding rounds have also led to each company\u2019s 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\u2019s Bank Allo and Bank Index.\n\n\nThe insider, however, also questions Carsome\u2019s \u201coverspending\u201d in its M&A strategy. For instance, Carsome \nacquired iCarAsia\n with an \nEV/Sales ratio of over 15x\n (the normal benchmark is \nbetween 1 to 3\n). It\u2019s a \u201csignificantly overvalued\u201d amount, the source says, especially for a company that is still \nEBITDA\n negative.\n\n\nCarro, meanwhile, is currently enjoying the strong returns on its Bank Allo investment. The company invested \nabout US$5 million\n in Bank Allo at \n478 rupiah per share\n. Since then, the bank\u2019s stock price has risen more than 10x to over 5,000 rupiah.\n\n\n\n\nMyTukar founder and CEO Fong Hond Sum (left) and Carro founder and CEO Aaron Tan / Photo credit: Carro\n\n\n\n\nAt the moment, though, it\u2019s unclear which of the two companies is ahead in Malaysia \u2013 neither provides a revenue breakdown by country in financial statements lodged with Singapore\u2019s Accounting Regulatory and Corporate Authority. (Despite its Malaysian origins, Carsome now has a group entity registered in Singapore \u2013 a common move among regional companies.)\n\n\nOne advantage that myTukar holds, however, is its partnership with three major players in Malaysia\u2019s 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.\n\n\nMalaysia is a smaller used-car market than Indonesia \u2013 whose volume is twice as high as the former\u2019s \u2013 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.\n\n\nMoreover, Malaysia would still be a priority for Carsome, given that it is the firm\u2019s home country, even if the platform is also present in the two larger markets. The source familiar with Carro\u2019s strategy says that in Indonesia, Carsome is still \u201cexperimental,\u201d i.e., not yet profitable.\n\n\n\u201cMalaysia is a more mature market for Carsome, and it\u2019s under direct threat,\u201d he says. \u201cThey\u2019re feeling the heat.\u201d"}
{"title": "Zalora adds BNPL for SEA customers with Pace tie-up", "body": "Singapore-based \nPace Enterprise\n, a fintech firm that offers buy now, pay later services, has partnered with \nZalora\n, a fashion and lifestyle platform.\n\n\n\n\nPhoto credit: Zalora/Pace\n\n\n\n\nThe partnership enables Zalora to deploy Pace\u2019s payment infrastructure at checkout. The facility is already accessible on Zalora\u2019s web platform and mobile webpage, and it will come to the ecommerce firm\u2019s mobile app later this year.\n\n\nPace 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.\n\n\nThe fintech firm added that nearly 20% of Pace transactions are being made by new Zalora customers.\n\n\nSee also: \nBNPL sours in Australia, but will SEA players buck the trend?\n \n\n\nPace 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.\n\n\nEstablished in 2020, Pace currently operates in Singapore, Malaysia, Hong Kong, Thailand, and Japan. In November 2021, it \nraised US$40 million\n in series A funding from Vertex Ventures Southeast Asia, Alpha JWC Ventures, and other investors.\n\n\nMeanwhile, 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."}
{"title": "PropertyGuru expects EBITDA-positive 2022 ahead of US listing", "body": "Singapore-based proptech major \nPropertyGuru\n expects to swing into the positive adjusted \nEBITDA\n arena in 2022. The outlook comes days before the company\u2019s set listing on the New York Stock Exchange.\n\n\n\n\nPropertyGuru\u2019s Singapore office / Source: PropertyGuru\n\n\n\n\nThe proptech firm\u2019s revenue climbed by 22.7% to US$73.8 million in 2021. This is also 3.3% above the company\u2019s forecast of US$71.5 million.\n\n\nPropertyGuru 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.\n\n\n\u201cSoutheast Asia\u2019s 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,\u201d said CEO \nHari Krishnan\n.\n\n\nIn 2022, PropertyGuru\u2019s engagement market share grew to 84% in Singapore, according to SimilarWeb data. Rising property prices and consumer confidence mainly drove this growth.\n\n\nSee also: \nPropertyGuru\u2019s revenue and valuation fall for the first time in years\n\n\nMeanwhile, new property listings on the company\u2019s Vietnam unit \nBatdongsan\n 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.\n\n\nIn the second half of 2021, PropertyGuru integrated \niProperty.com\n into its existing operations. This helped the former capture over 90% of Malaysia\u2019s engagement market share, according to SimilarWeb data.\n\n\nPropertyGuru\u2019s listing is backed by a business combination with Bridgetown 2, a \nSPAC\n 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 \nextraordinary general meeting\n on March 15.\n\n\nCurrency converted from Singapore dollar to US dollar: US$1 = S$1.36."}
{"title": "SEA\u2019s tech giants put to the sword following lackluster earnings", "body": "Welcome to the Opening Bell \ud83d\udd14! 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\u2019s publicly listed tech companies. If you\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHello reader,\n\n\nIt was that week in the quarter again, when the household names from Southeast Asia\u2019s tech industry revealed their GDP-sized earnings results, along with guidance on their near to medium-term financial prospects.\n\n\nUsually, these events signal the strength of tech businesses in the region, but this time around, it left investors wanting more, \nway more\n.\n\n\nThese closely watched reports not only provide an insightful view into the current state of a company\u2019s 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.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nIt\u2019s 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.\n\n\nA sudden surge of investor optimism\n heading into its Q4 earnings report quickly went up in smoke, with the Singapore-headquartered firm\u2019s shares plunging \nwell over a third of its value\n, or roughly 37%, after posting its results.\n\n\nGrab\u2019s \nQ4 results hardly paint a pretty picture\n and, perhaps, has justified investor skepticism over its stock in recent months.\n\n\nIt may be the case that CEO Anthony Tan\u2019s grand plan for Grab needs more time to bear fruit, but the market has no patience under the current macro environment. Grab\u2019s share price has fallen about 70% in the last three months. You can find an in-depth review of Grab\u2019s financial health \nhere\n.\n\n\nAnother company with a strong claim to being the face of Southeast Asian tech firms\u2019 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.\n\n\nSea shed about \nUS$10.4 billion in market value\n after slashing its year-on-year booking guidance for its digital entertainment unit Garena for the first time. India\u2019s ban on \nFree Fire\n has been a thorn in Sea\u2019s share price, but as my colleague Simon reports in \nthis premium story\n, there are glimmers of hope that Sea can pull itself out of a deep hole.\n\n\nOver in China, Baidu\u2019s (BIDU, NDAQ) investors would be forgiven for fearing the worst after Alibaba\u2019s (BABA, NDAQ) \ndisappointing earnings\n last month.\n\n\nHowever, the search engine, whose stock price has shown resilience in the face of China\u2019s big tech crackdown, bucked the trend. Its \nrise in quarterly revenue\n was warmly embraced by the market. Baidu\u2019s share price rose immediately following results, but eventually succumbed to broad market-wide weakness to end the week down nearly 4%.\n\n\n\u2014 Shravanth\n\n\n\n\n4 Stocks to watch\nHot stocks, earnings reports, restructuring, activist investor pressure, and more. We feature the stocks that are likely to make big moves during the week.\n\n\n\n\nNIO ES6 electric SUV semi-autonomous car on display / Photo credit: 123rf.com\n\n\n\n\n\ud83c\udde8\ud83c\uddf3 \nNio Inc (NIO, NYSE):\n The Chinese electric vehicle maker plans to carry out \nsecondary listings by introduction\n 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.\n\n\nConcerns over being forced off the US exchanges amid China\u2019s tech crackdown likely stoked these moves. Nio\u2019s primary listing will remain in New York for now. Additionally, the company \nreported 6,131 vehicle deliveries\n 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.\n\n\n\ud83c\uddee\ud83c\udde9 \nBukalapak (BUKA, IDX):\n This ecommerce giant became the first Indonesian unicorn to list on the country\u2019s stock exchange last year. However, since its market debut, the company\u2019s shares have fallen nearly 70%.\n\n\nIn an attempt to reverse its fortunes, Bukalapak looks to \nlaunch its e-grocery business\n, AlloFresh. The new venture will launch with around US$69.7 million from Bukalapak, Growtheum Capital Partners, and Trans Retail Indonesia \u2013 a local offline retailer owned by conglomerate CT Corp Group.\n\n\n\ud83c\uddf2\ud83c\uddfe \nCapital A (CAPITALA, KLSE):\n When AirAsia \nrebranded itself as Capital A\n 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.\n\n\nNow, it is taking its \nfinancial product marketplace, AirAsia Money, to Indonesia\n. 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.\n\n\n\ud83c\uddef\ud83c\uddf5 \nPanasonic Corp (6752, TYO):\n A long-time supplier for Tesla Inc (TSLA, NDAQ), the electric vehicle (EV) battery maker plans to begin \nmass-producing a new type of lithium-ion battery\n for Tesla before the end of March 2024 with two new production lines at its western Japanese plant in Wakayama.\n\n\nPanasonic 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 \nbuild a mega factory in the US\n to support the US EV behemoth.\n\n\n\n\n3 Market whispers\nA lot more reliable than whispers, we highlight engaging source-based reporting from reputable news outlets around the globe.\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n1\ufe0f\u20e3 \nNo IPO pain, no IPO gain:\n China\u2019s most popular fitness app, Keep Inc, has \nfiled for an IPO in Hong Kong\n after it \nreportedly pulled the plug\n on a US$500 million listing on US stock exchanges. The pricing and size of the IPO are yet to be determined.\n\n\nKeep becomes the latest high-profile Chinese firm to have its IPO plans disrupted after Beijing\u2019s rising scrutiny of overseas listings pushed social networking platform Soul and podcasting app Ximalaya to shelve their US listing plans.\n\n\n2\ufe0f\u20e3 \nMusk brothers in hot water:\n Tesla CEO Elon Musk and his brother, Kimbal Musk, \nare being investigated\n by the US Securities and Exchange Commission (SEC) on whether their recent stock sales violated the commission\u2019s insider-trading rules.\n\n\nThe SEC\u2019s 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\u2019s results. The company\u2019s shares fell sharply in the wake of Elon\u2019s poll, with 58% of voters saying he should sell.\n\n\n3\ufe0f\u20e3 \nA truce on the offing?\n For over a year, Amazon (AMZN, NDAQ) and Future Retail (FRETAIL, NSE) have been in an intense legal tussle that has stalled Future\u2019s US$3.4 billion sale of assets to Reliance Industries (RELIANCE, NSE). In fact, the stand-off showed no signs of abating with \nreports claiming\n Amazon planned to launch criminal court proceedings against Future Retail.\n\n\nHowever, in what appears to be a dramatic U-turn by both parties, there \nare now ongoing talks over an out-of-court settlement proposal\n. The two parties have until March 15 to explore a settlement via negotiations.\n\n\n\n\n2 Eye-popping facts \ud83d\udc40\nTech in Asia scours the internet to bring you the head-turning numbers from the world of business.\n\n\n\n\n\n\nUS$31 billion\n \u2013 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.\n\n\n\n\n\nUS$16 billion\n \u2013 That\u2019s how much South Korea\u2019s 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) \naims to put in US$35 billion through 2025\n.\n\n\n\n\n\n\n\n\nThe 1 you didn\u2019t see coming\nWe spotlight the unusual, not-your-everyday kind of story that has got everyone talking and social media buzzing over the past week.\n\n\n\n\nImage credit: 123rf.com\n\n\n\n\nFeng Shui master foresaw 1MDB misery:\n 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\u2019s largest stock exchange took the internet by storm, a former Goldman Sachs (GS, NYSE) banker, closely tied to the 1MDB scandal, admitted to \nconsulting a feng shui master\n to see if more trouble lay ahead over the next decade.\n\n\nTim Leissner, the US government\u2019s key witness in the trial of former Goldman colleague Roger Ng over the multibillion-dollar scam to loot Malaysia\u2019s wealth fund, said the feng shui master\u2019s report predicted that \u201cI would have an issue with authorities for the first half of the 10 years but then it would be resolved.\u201d\n\n\nThe 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.\n\n\nFor those readers looking to jump from a weird story to a wholesome one, maybe the tale of this \nextraordinary centenarian\n will help you overcome your Monday blues.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it!\n\n\nNot your cup of tea? You can unsubscribe from this newsletter by going to your \u201cedit profile\u201d page and choosing that option in our preference center.\n\n\nHappy investing and see you next week!\n\n\nDisclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice."}
{"title": "The Carsome lure sees rival firms lose key talent", "body": "Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a Premium subscription\n.\n\n\nHi readers,\n\n\nPeople come and go, and that\u2019s 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.\n\n\nI\u2019ve been in the workforce for more than a decade, and I\u2019ve had my share of doing all sorts of jobs. Journalism wasn\u2019t my first gig and when I managed to cut my teeth in the trade, I began right at the bottom as a junior writer.\n\n\nEvery time there was a town hall, I\u2019d hear my previous bosses pull that cliched bluster of \u201ceveryone is dispensable,\u201d 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.\n\n\nThat people are crucial to an organization can be gleaned from Capital A chief Tony Fernandes\u2019 \nLinkedIn post\n where he took aim at \u201cnew digital unicorns\u201d who had poached his staff last year. But he wasn\u2019t the only one in the wilderness, as my colleague Putra Muskita would find out \u2013 MyTukar, the Malaysian arm of automotive marketplace Carro, also lost talent that year, too.\n\n\nWhere did these employees go? Carsome \u2013 the rival of Carro and, to a certain extent, Capital A as well.\n\n\nSome of Capital A\u2019s and MyTukar\u2019s 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?\n\n\nThere were whispers of Carsome poaching them, but the company told us that no such attempts were made.\n\n\nAnyway, journalism requires me to stay factual, and the fact is Carsome is currently a magnet for top talent.\n\n\n\u2014 \nEmmanuel Samarathisa\n, journalist at \nTech in Asia\n\n\n\n\nTop stories this week\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\n1\ufe0f. \nCapital A, MyTukar lost key execs to Carsome in 2021\n\nThe exodus involves junior and senior execs from across AirAsia\u2019s marketing and tech divisions as well as MyTukar\u2019s business development unit.\n\n\n2. \nUnearthing Sea Group\u2019s alumni network\n\nTaking advantage of skill sets honed at Sea Group, the company\u2019s alumni have gone on to launch startups in different verticals.\n\n\n3. \nThe Philippines: Asia\u2019s next crypto hub?\n\nFrom big venture capital deals to increasing crypto ownership, the Philippines is fast becoming a hub for crypto startups. Here\u2019s why.\n\n\n4. \nAlibaba\u2019s financial health in 5 charts\n\nWe analyze the financial figures reported by Chinese internet giant Alibaba.\n\n\n5. \nThis SPH veteran spun off his jobs platform to catch a big wave\n\nJulian Tan\u2019s FastCo, which runs jobs platform FastJobs, is now working on its series A round \u2013 its first fundraise after the company\u2019s spin-off from SPH.\n\n\n6. \nAnalyzing MoMo\u2019s super-app ambitions\n\nWe dissect the challenges for the Vietnamese unicorn as it plows ahead in the country\u2019s fintech battleground.\n\n\n7. \nHow Polygon puts India at the heart of the crypto world\n\nPolygon is leading India\u2019s Web3 revolution, but the road to the top was long and hard.\n\n\n8. \nExclusive: Two heavy equipment startups backed by Indonesian super angel merge\n\nWebTrace and TraktorHub, which are both backed by Prasetia Dwidharma, have merged into one entity to tackle the heavy equipment sector.\n\n\n9. \nOrg Chart: The people steering Lazada\n\nWe look at the crew leading Lazada Group as the firm celebrates its 10th year this month.\n\n\n10. \nCarousell triples revenue to $40.6m in 2020\n\nThe Singapore-headquartered classifieds giant could list in the US through a SPAC merger as soon as this quarter."}
{"title": "Carsome appoints CFO as group president", "body": "Car ecommerce platform \nCarsome\n has appointed \nJuliet Zhu\n as group president while keeping her current role as chief financial officer (CFO).\n\n\n\n\nCarsome CFO and group president Juliet Zhu / Photo credit: Carsome\n\n\n\n\nIn 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\u2019s overall capital structure and synergy creation across the company\u2019s businesses.\n\n\nThese come in addition to her responsibilities as the company\u2019s CFO, which includes financial reporting, planning and analysis, and investor relations.\n\n\nZhu has previously worked in the investment industry across China, India, and Southeast Asia.\n\n\nCarsome has recently made other senior appointments, such as Ravi Shankar Mallavarapu as \nchief marketing officer\n, Andrew Mawikere as \ncountry CEO of Indonesia,\n\u00a0and Siwaphume Lertsansaran as \ncountry managing director of Thailand\n.\n\n\nSee also: \nAre Malaysia\u2019s startup efforts finally paying off?"}
{"title": "The leaders at the helm of Lazada", "body": "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\u2019re not a subscriber, get access by \nregistering here\n.\n\n\nHi there,\n\n\nIn the last year till September 2021, Lazada was clocking in \nUS$21 billion in gross merchandise value (GMV)\n. The Southeast Asian giant, which started out as an Amazon clone in 2012, has played a significant role in the evolution of the region\u2019s ecommerce scene.\n\n\nLazada has been through many changes, including a revolving door of CEOs, as my colleague Tay Tian Wen summarizes in our Big Story this week.\n\n\nOur 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.\n\n\nWhile 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\u2019s about TikTok and its ecommerce ambitions, after all.\n\n\n\u2014 Nikita\n\n\n\n\nTHE BIG STORY\nOrg Chart: The people steering Lazada\n\n\n\n\nImage credit: Timmy Loen\n\n\n\n\nWe look at the crew leading Lazada Group as the firm celebrates its 10th year this month.\n\n\n\n\nTHE HOT TAKE\nByteDance\u2019s ecommerce play\n\n\n\n\nHere\u2019s what happened:\n\n\n\n\nTikTok Shop, the ecommerce arm of TikTok, has launched in Thailand, Vietnam, and Malaysia.\n\n\nIt was introduced in Indonesia and the UK last year.\n\n\nTikTok\u2019s ecommerce GMV reached US$951 million in 2021.\n\n\n\n\nHere\u2019s our take:\n\n\nLast week, \nThe Checkout\n analyzed why \nByteDance shut down its Shein clone\n, Dmonstudio. There\u2019s been major developments on ByteDance\u2019s ecommerce side since then.\n\n\nFor one, TikTok Shop, which allows creators and brands to sell products directly to consumers through the app, is \nrapidly expanding across Southeast Asia\n and has ramped up hiring in Thailand, Vietnam, and Malaysia.\n\n\nIn 2021, TikTok\u2019s ecommerce GMV totaled 6 billion yuan (US$951 million), which is \nonly about 1% of China-only counterpart Douyin\u2019s GMV\n for the year.\n\n\nBut for 2022, TikTok is looking at nearly 12 billion yuan from its ecommerce unit. It has reasons to be optimistic \u2013 the year it was established in China, Douyin\u2019s ecommerce arm saw a GMV of about 500 billion yuan.\n\n\nIndonesia accounted for at least 70% of TikTok\u2019s ecommerce GMV. The rest came from the UK, where TikTok Shop has been available since April 2021.\n\n\nWhile Douyin and TikTok\u2019s parent ByteDance keeps its fingers crossed, it knows that livestreaming and social commerce play up to its strengths.\n\n\nIn 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 \nreport from Meltwater\n. The media monitoring platform also found that Sea Group\u2019s Shopee posted a 2.5x increase in annual livestream viewership on its platform.\n\n\n\n\nShopee Celebrity Club livestreaming in action / Photo credit: Shopee\n\n\n\n\nByteDance 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\u2019s \n600 million daily active users as \u201cvery sticky.\u201d\n The push also coincided with the rollout of payment service Douyin Pay.\n\n\nThe timing is crucial: ByteDance\u2019s ecommerce play comes as China\u2019s government continues to keep a \nclose watch on tech companies\n for a variety of reasons, including monopolistic behavior. This makes room for others to grow.\n\n\nGetting into ecommerce also means that TikTok\u2019s 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.\n\n\nFollowing Alibaba\u2019s recent results, an analyst \ntold the \nFinancial Times\n that \u201cthe hit from Douyin and Kuaishou livestreaming ecommerce has been huge\u2009\u2026\u2009Taobao livestreaming can\u2019t compete.\u201d Kuaishou is a\u00a0 Douyin rival while Taobao is a C2C and B2C shopping marketplace operated by Alibaba.\n\n\nTikTok\u2019s popularity has spilled over to its ecommerce business and it shows. #TikTokMadeMeBuyIt is so catchy that \nBuzzFeed\n came out with several articles dedicated to the hashtag.\n\n\nOnce 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 \ntemporarily close her candy store\n to fulfill the hundreds of orders that flooded in after her video went viral.\n\n\nAnalysts also think that it\u2019s only a matter of time before Chinese sellers \nwill have access to the wider world through TikTok\n, which is expected to be \u201cfriendlier\u201d to them than Amazon has been.\n\n\nBesides algorithms and resources, there\u2019s another element at work in the social commerce game: the human factor.\n\n\nThe popularity of TikTok Shop also depends on its roster of livestreaming stars. China\u2019s Li Jiaqi or Lipstick Brother, \nwho sold US$2 billion in goods in a single day on Alibaba\n, is a good example of the competition that ByteDance faces.\n\n\nIt\u2019s possible that with the now-defunct Dmonstudio, ByteDance could have had some control over the quality of select merchandise. But that\u2019s not possible with a livestreaming model where the company has less control over the merchants on its platform.\n\n\nTake ByteDance\u2019s Fanno, for instance. Much like \nShopee\u2019s problems in India\n, the quality of products is \nreportedly a hit or miss on Fanno\n in Europe.\n\n\nByteDance likely expects so much more from TikTok Shop than from Fanno. After all, TikTok already has a captive audience ripe for a livestreaming harvest.\n\n\n\u2013 Nikita\n\n\n\n\nNEWS YOU SHOULD KNOW\n\nCheck out \nTech in Asia\u2019s\n coverage of the ecommerce scene \nhere\n.\n\n\n1\ufe0f\u20e3 \nSea Group\u2019s\n \nmarket value fell by US$10.4 billion\n 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 \u2013 a first for the Southeast Asian internet firm.\n\n\n2\ufe0f\u20e3 China-based \nDianxiaomi\n, a cross-border ecommerce solutions startup, \nhas secured US$100 million\n in a round led by Tiger Global Management and Huaxing Growth Capital. Founded in 2014, Dianxiaomi provides enterprise resource planning solutions for ecommerce players.\n\n\n3\ufe0f\u20e3 \nAlloFresh\n, an Indonesia-based e-grocery startup, is preparing \nto launch its business\n with about 1 trillion rupiah (around US$69.7 million) from Bukalapak and others.\n\n\n4\ufe0f\u20e3 \nSariSuki\n, a social commerce startup based in the Philippines, \nhas raised US$10.7 million\n this year. One of its co-founders is Brian Cu, the former president of Grab Philippines.\n\n\n5\ufe0f\u20e3 After \nGarena\u2019s\n \nFree Fire\n game was banned in India as part of a clampdown on Chinese apps, \nSingapore\u2019s government has reached out to the Indian government for clarification\n. Garena\u2019s parent company, Sea Group, is headquartered in the city-state.\n\n\n\n\nFYI\n\n\n\n\nPhoto credit: 123rf.com/supernam\n\n\n\n\nRetailers seek real-world profits in the metaverse\n\nWhile it\u2019s too soon to \u200cknow 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.\n\n\n\n\nThat\u2019s it for this edition \u2013 we hope you liked it! Do also check out previous issues of the newsletter \nhere.\n\n\nNot your cup of tea? We\u2019re working on letting you unsubscribe from this newsletter by going to your \u201cedit profile\u201d page and choosing that option in our preference center. We\u2019ll let you know when it\u2019s deployed.\n\n\nSee you next week!"}
{"title": "ScaleUp Malaysia names 11 startups in third cohort", "body": "ScaleUp Malaysia\n has revealed the 11 startups that have received investments as part of its third cohort \u2013 which was organized in partnership with Quest Ventures, Indelible Ventures, and Mranti.\n\n\n\n\nFrom left: Quest Ventures partner Jeffrey Seah, ScaleUp Malaysia managing partner Xelia Tong, and Indelible Ventures managing partner Kevin Brockland / Photo credit: ScaleUp Malaysia\n\n\n\n\nThe 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.\n\n\nThe 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.\n\n\nThe 11 chosen firms are:\n\n\n\n\n\n\nGuruInovatif\n, a platform that provides complete online resources for teachers\u2019 professional development.\n\n\n\n\nMadCash\n, a fintech platform that provides microloans and captures business performance and repayment data of its women entrepreneurs.\n\n\n\n\nOpen Academy\n, an edtech platform that provides real, non-theory based programs, training, and content from industry practitioners.\n\n\n\n\nSpareXHub\n, an ecommerce marketplace for genuine auto spare parts.\n\n\n\n\nVireServe\n, a cybersecurity firm that offers a \nSaaS\n platform for cyber security checks, compliance automation, and security protection for day-to-day business.\n\n\n\n\nWA Sushi\n, an F&B ecommerce company building \u201cquality food made for delivery.\u201d\n\n\n\n\nHowuku\n, an online platform that offers an all-in-one web optimization and analytics solution.\n\n\n\n\nKumo\n, a SaaS provider for the beauty and medical aesthetics industry.\n\n\n\n\nMidwest Composites\n, a designer and manufacturer of futuristic materials.\n\n\n\n\nRecqa\n, a knowledge-sharing platform for team members to share learnings and other relevant information.\n\n\n\n\nBizTech Asia\n, a cross-media and marketing platform that enables B2B marketing for clients.\n\n\n\n\nScaleUp Malaysia has also opened registration for startups to state their interest to participate in the next cohort."}
{"title": "AirAsia launches financial marketplace in Indonesia", "body": "Malaysia-based AirAsia has launched a financial product marketplace, \nAirAsia Money,\n in Indonesia. The service is integrated within the AirAsia app and is already available in the country.\n\n\n\n\nPhoto credit: 123rf\n\n\n\n\nAirAsia 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.\n\n\nAirAsia partnered with local insurance startup PasarPolis, investment app Bareksa, donation platform Rumah Zakat, and payment service Wise in the release of the new service.\n\n\nMoving forward, the company said that it wants to expand the service to other countries.\n\n\nEarlier this year, AirAsia \nlaunched its food delivery service\n in Indonesia, after making it available in Malaysia, Singapore, and Thailand.\n\n\nSee also: \nTony Fernandes responds to critics of his AirAsia super-app gamble"}
{"title": "TikTok Shop enters Thailand, Vietnam, Malaysia", "body": "TikTok Shop, the ecommerce arm of the social networking giant, has entered Thailand, Vietnam, and Malaysia, \nreported\n \nPandaily,\n citing an \nE\nbrun\n report.\n\n\nTikTok Shop allows locally based consumers to buy a wide array of goods while also offering businesses more opportunities to make sales via the app.\n\n\nTikTok, which is one of the fastest-growing social media platforms with over 1 billion users worldwide, also performed \nA/B testing\n 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.\n\n\nThe company is hiring locally in Thailand, Vietnam, and Malaysia.\n\n\nSee also: \nA uniquely Chinese strategy is helping Zynn take on TikTok"}
{"title": "Capital A, MyTukar lost key execs to Carsome in 2021", "body": "Additional reporting by Putra Muskita\n\n\n\n\nImage credit: Carsome\n\n\n\n\n2021 was a year of change for AirAsia and MyTukar, the Malaysian unit of Singaporean automotive marketplace Carro.\n\n\nCovid-19 forced AirAsia to rethink its businesses amid pandemic-induced restrictions that crushed the aviation sector.\n\n\nThe 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.\n\n\nMeanwhile, MyTukar underwent a reorganization and looked to grow its market share soon after sealing a US$30 million investment from Carro in 2019.\n\n\nBut, along with the change in name and strategic shifts, came major rejigging in the leadership of each company.\n\n\nTech in Asia\n has found that about 13 junior and senior executives from AirAsia\u2019s marketing and tech divisions, as well as 12 junior and senior staff from MyTukar\u2019s business development division, left to join Carsome in 2021.\n\n\nWhile 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\u2019s digital marketing and tech units.\n\n\nSee also: \nCarsome and Carro: A neck-and-neck race to transform how people buy cars\n\n\nThe resignations have irked AirAsia co-founder and CEO Tony Fernandes, who in a February 3 \nLinkedIn post\n, took a swipe at his former colleagues, saying they \u201chave never quite performed well in their new companies.\u201d\n\n\nWhile he did not explicitly mention Carsome, Fernandes also hit out at \u201cnew digital unicorns who actually have not achieved much\u201d for poaching ex-AirAsia staff.\n\n\nCarsome is said to be Malaysia\u2019s first tech unicorn following its share-swap deal with internet investment firm Catcha in 2021.\n\n\n\u201cIt takes a lot more than one person and that [is] the beauty and as people leave we replace them with better people,\u201d Fernandes wrote in the post.\n\n\nCapital A declined to comment on the staff departures and on Fernandes\u2019 LinkedIn post.\n\n\nHowever, the CEO recently edited his post, clarifying that the statement didn\u2019t \u201capply to all\u201d and that his point was that it had always been \u201cabout the team not the individual.\u201d\n\n\nInsiders familiar with the matter also tell \nTech in Asia\n that they knew that Carsome had made offers to a number of MyTukar\u2019s staff across different divisions.\n\n\nTech in Asia\n has seen offer letters dated June 2021 to select MyTukar employees from Carsome. Some of those named in those letters have jumped ship.\n\n\nCarsome denied targeting talent \u201cfrom any company,\u201d with a spokesperson telling \nTech in Asia\n that \u201cthere is no attempt as alleged.\u201d\n\n\nHere\u2019s a list of AirAsia and Carsome\u2019s most notable departures, organized by department. \nTech in Asia\n reached out to a few of the names below but did not receive any responses.\n\n\nAirAsia\n\n\nMarketing\n\n\nRavi Shankar\n\n\nShankar \njoined Carsome\n as chief marketing officer in January this year after a five-year stint with AirAsia\u2019s digital marketing unit. Before that, he held the role of chief growth officer at AirAsia from November 2020 to January 2022.\n\n\nIn his previous role, he was part of the team that worked on AirAsia\u2019s plan to diversify into tech, and developed its super app.\n\n\nR. Bharath\n\n\nBharath worked at AirAsia for four years, from March 2017 to November 2021. He then joined Carsome as its head of digital marketing.\n\n\nVishnu Teja\n\n\nTeja has been Carsome\u2019s digital marketing manager since October 2021. He worked at AirAsia in the same position from December 2018 to October 2021.\n\n\nSelina Loh\n\n\nLoh worked at AirAsia from March 2020 to December 2021 as marketing assistant manager. She joined Carsome in January this year as marketing strategy manager.\n\n\nAmeera Iskak\n\n\nAmeera has been a Carsome\u2019s customer engagement specialist since June 2021. She previously worked at AirAsia as a digital marketing executive for two years.\n\n\nEdwin Ng Keck Seng\n\n\nNg 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).\n\n\nTech\n\n\nVishnu Nambiar\n\n\nNambiar has been Carsome\u2019s CTO \nsince July 2021\n. Prior to this, he was AirAsia\u2019s CTO from September 2019 to July 2021. Nambiar also had stints at Lazada, Microsoft, and IBM.\n\n\nKenneth Jaysone Francis\n\n\nFrancis 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).\n\n\nRoshinee Supramaniam\n\n\nRoshinee is currently Carsome\u2019s 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.\n\n\nSamini Subramaniam\n\n\nSamini is Carsome\u2019s 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.\n\n\nSamini has a doctorate in IT from the Malaysian Multimedia University, where she also served as an academician and researcher from 2013 to 2019.\n\n\nIlyas Ishak\n\n\nIlyas 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.\n\n\nNazar Ibrahim\n\n\nNazar worked as a software engineering manager at AirAsia from November 2020 to November 2021. He then joined Carsome as vice president of engineering.\n\n\nHe also had an earlier stint as a software architect at AirAsia from March 2008 to September 2016.\n\n\nMadan Kumar\n\n\nKumar is Carsome\u2019s vice president in the engineering department.\n\n\nBefore this, he was AirAsia\u2019s senior product manager in its airline division from February 2017 to October 2021.\n\n\nMyTukar\n\n\nBusiness development\n\n\nJeffrey Ong\n\n\nOng 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\u2019s CEO.\n\n\nYap Mun Jinn\n\n\nYap 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.\n\n\nOw Mun Loong\n\n\nOw worked at MyTukar for a year and three months, beginning as head of operations and then moving up to general manager. He joined Carsome\u2019s regional group expansion office as an expansion and strategy lead in January this year.\n\n\nShaun Yap\n\n\nYap has been Carsome\u2019s head of risk since January this year. He was MyTukar\u2019s head of risk from April 2021 to December 2021.\n\n\nDarren Lim\n\n\nLim 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.\n\n\nAmin Zulkiflee\n\n\nAmin has been Carsome\u2019s 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.\n\n\nAlex Wong\n\n\nWong was MyTukar\u2019s talent acquisition executive from July 2021 to December 2021. He was hired for the same position at Carsome in January this year.\n\n\nN. Nurul Nadhira\n\n\nNurul Nadhira is an assistant manager at Carsome, as of January this year. She was a team leader in MyTukar\u2019s business division from July 2020 to January 2022.\n\n\nMuhammad Naqiuddin Rosli\n\n\nNaqiuddin worked as MyTukar\u2019s business manager from October 2020 to February 2021. He has worked at Carsome at an equivalent role since April 2021.\n\n\nAzahary Azman\n\n\nAzahary 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.\n\n\nKamal Arif\n\n\nKamal worked as a business strategist at MyTukar from March 2021 to October 2021. He immediately joined Carsome that month as a pricing assistant manager.\n\n\nMohd Ikhwan\n\n\nIkhwan worked as MyTukar\u2019s sales team lead from August 2020 to February 2021. He then joined Carsome as a sales executive."}
{"title": "Patrick Grove co-founded platform partners with Indonesian rental firm", "body": "Instahome\n, a Malaysia-based home rental platform, has announced a partnership with \nFlokq\n, an Indonesia-based startup offering similar services. In a statement, both companies said that they will be leveraging each other\u2019s inventory, tech capabilities, and know-how.\n\n\n\n\nInstahome co-founder Patrick Grove / Photo credit: Tech in Asia\n\n\n\n\nFounded 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 \nEric Tan\n.\n\n\nMeanwhile, Flokq was founded by \nAnand Janardhanan\n and \nHarmeet Singh\n in late 2019. It also has more than 10,000 units listed on its platform, across Jakarta and Bali. Last year, it \nacquired\n co-living startup YukStay for an undisclosed amount.\n\n\nInstahome and Flokq said that they each have serviced thousands of customers.\n\n\nSee also: \nWhy is Patrick Grove starting a new property marketplace?\n\n\nWith 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."}
{"title": "Monk\u2019s Hill leads $2m round of Malaysian proptech firm", "body": "Malaysia-based \nUrbanmetry\n, an AI-based property data startup, has raised US$2 million in a pre-series A round led by Monk\u2019s Hill Ventures.\n\n\n\n\nTeam Urbanmetry /Photo credit: Urbanmetry\n\n\n\n\nFounded by \nKoh Cha-Ly\n 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.\n\n\nUrbanmetry 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.\n\n\nThe 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.\n\n\n\u201cThe 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,\u201d saud \nKuo-Yi Lim\n, Monk\u2019s Hill Ventures co-founder and managing partner, in a statement.\n\n\nSee also: \nWhat could go wrong for Shopee?\n "}
{"title": "How long can Aerodyne stay Malaysia\u2019s top dog in drone tech", "body": "Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia\u2019s tech and startup community. \nGet the newsletter in your inbox everyday with a Premium subscription\n.\n\n\nHi readers,\n\n\nDid you know a \nhobbyist drone\n is cheaper than an \niPhone 13\n in Mayalsia? I had no clue until an acquaintance, who happens to be a drone tech geek, brought it up.\n\n\nOf course, these drones capture visuals and aren\u2019t like the souped-up ones firms use to tackle high risk or tricky jobs like asset inspection or last-mile medicine deliveries.\n\n\nBut capturing visuals is how Aerodyne, the world\u2019s top drone services provider, got its start. The drone tech firm was founded in 2014 by Kamarul A. Muhamed, who saw the potential of using drones in bigger jobs after using them in his media production company.\n\n\nKamarul was in many ways a first mover. He also proved his business model could work after he landed a gig to inspect assets of Petronas, Malaysia\u2019s national oil company.\n\n\nThe rest, as they say, is history.\n\n\nBut as Aerodyne has cemented itself as the go-to drone tech provider, other upstarts are also looking to wrestle for domestic and regional market share.\n\n\nLarger corporations are also mulling their own in-house drone pilot teams, while others, such as Capital A (formerly AirAsia), have set up pilot-training centers.\n\n\nAside from entrepreneurial smarts, policy has also been key to the competitive landscape in Malaysia.\n\n\nBoth federal and state governments have opened up sites for drone players, including those based overseas such as Singapore\u2019s Garuda Robotics, to test their solutions at the Medini drone test site, considered the largest in Southeast Asia.\n\n\nCan policymakers keep up with demand? We also can\u2019t dismiss privacy and security concerns. These tensions will continue to surface as Malaysia pushes the boundaries of drone tech.\n\n\nFor now, Aerodyne seems to be thriving and is on an acquisition spree, with its latest buy bolstering its data analytics and AI capabilities. While looking at a potential listing on the Nasdaq or Tokyo Stock Exchange, it\u2019s also not ruling out a dual listing on Bursa Malaysia.\n\n\nBut how long can it be Malaysia\u2019s drone darling?\n\n\n\u2014 \nEmmanuel Samarathisa\n, journalist at \nTech in Asia\n\n\n\n\nTop stories this week\n\n\n\n\n1\ufe0f. \nAerodyne: Can it remain Malaysia\u2019s drone jewel?\n\nThe Malaysian drone tech specialist is having a growth spurt, even eyeing an IPO. But its dominance at home and in the region may soon be challenged.\n\n\n2. \nBehind Bukalapak\u2019s entry into Indonesia\u2019s digital banking race\n\nAllo Bank, which Bukalapak acquired in January 2022, is backed by a conglomerate with a strong retail presence.\n\n\n3. \nCarousell in talks for $150m acquisition of 99 Group\n\nIf the deal goes through, 99 Group\u2019s valuation will be well above the US$83.6 million mark that it hit in 2020.\n\n\n4. \nIs Dubai stealing Singapore\u2019s thunder in crypto?\n\nBinance led the charge when it withdrew its application in the city-state in favor of Dubai. It appears that many are following suit.\n\n\n5. \nNykaa\u2019s financial health in 5 charts\n\nWe put our finger on the pulse of Nykaa, one of India\u2019s few profitable tech startups.\n\n\n6. \nWill India\u2019s 10-minute quick commerce model last?\n\nThe 10-minute delivery is taking India\u2019s ecommerce industry by storm. But is the business model viable in the long term?\n\n\n7. \nThe keys to J&T Express\u2019 rapid global expansion\n\nJ&T Express made waves by capitalizing on its ties to Oppo and Shopee. But will that be enough to drive global expansion?\n\n\n8. \nThis deck helped an HR tech firm net $5m from Sequoia, YC, others\n\nMesh helps employees manage goals, get timely feedback, and improve faster.\n\n\n9. \nA list of fundraising startups from Asia (Updated)\n\nFundraising is hard. To make things slightly easier, we\u2019ve compiled this list of fundraising startups for our subscribers.\n\n\n10. \nZimplistic flips to a profit in 2021 after troubles\n\nAfter mounting losses and high cash burn led to Zimplistic\u2019s sale over a year ago, the company has turned its financials around in 2021."}
{"title": "Fave names ex-Touch \u2018n Go exec as chief product officer", "body": "Fave\n, a Southeast Asian fintech platform,\u00a0has appointed former Touch \u2018n Go executive \nArvindd Selvaratnam\n as regional chief product officer.\n\n\n\n\nFave chief product officer Arvindd Selvaratnam / Photo credit: Fave\n\n\n\n\nIn his new role, Selvaratnam will oversee Fave\u2019s roadmap for regional products and strategic planning, and make use of emerging opportunities for the firm in its next phase of growth.\n\n\nHe will also lead Fave\u2019s product design and development efforts as part of its push toward the buy now, pay later sector.\n\n\nSelvaratnam previously served as the product lead for Malaysia-based Touch \u2018n Go, a provider of smart cards that are used as the sole electronic payment method by toll operators of the country\u2019s expressways and highways.\n\n\n\u201cIt is high time to join Fave at the growth stage with buy now, pay later and online shopping becoming salient parts of consumer behavior in Southeast Asian markets,\u201d said Selvaratnam.\n\n\nSee also: \nFave bounces back from Covid-19, cuts losses\n\n\nThe new Fave recruit was also formerly the product lead at TNG Digital, where he managed online and offline product domains, cross-border payments, and in-app bill payments. Selvaratnam was part of the founding team at Boost, the fintech arm of Axiata, where he focused on growing its user base.\n\n\nFave plans to expand its product and engineering teams. It\u2019s currently hiring for over 20 roles in its payment solutions division."}
{"title": "Surge pours $2m in first accelerator participant from MY", "body": "Iimmpact\n, a Malaysian fintech startup, has scooped up US$2 million in seed money from Sequoia India\u2019s Surge accelerator.\n\n\n\n\nThe Iimmpact team / Photo credit: Iimmpact\n\n\n\n\nEstablished in 2017, Iimmpact\u2019s platform helps businesses make payments available to over 170 billers. The \nAPI\n solution has bill management features for recurring payments, among others.\n\n\n\u201cCompanies of any size can, with minimal effort, launch digital payment products for their customers, such as phone top-ups, utilities payment, gaming, transportation, corporate gifting, food and beverage vouchers, and more,\u201d the company wrote in a statement.\n\n\nThe startup said that its tech platform has processed over US$90 million in transaction value, helping its clients grow and maintain their customer base.\n\n\nIimmpact was founded by CEO \nAlex Tan\n and chief technology officer \nKelvin Lee\n. Tan previously served as a data analyst for the Royal Melbourne Institute of Technology University, while Lee was the former head of engineering at clinical communication app Circles.MD.\n\n\nSee also: \n50 rising startups in Southeast Asia\n\n\nThe startup was recently part of the \nsixth cohort\n of Surge, which was announced last month. Iimmpact was the first Malaysian firm to take part in the accelerator."}
{"title": "YC-backed \ud83c\uddee\ud83c\uddf3 fintech unicorn enters SEA", "body": "India-based fintech unicorn \nRazorpay\n has acquired a majority stake in \nCurlec\n, a Malaysian fintech firm, paving the former\u2019s way into Southeast Asia.\n\n\n\n\nRazorpay team / Photo credit: Razorpay\n\n\n\n\nThe size of the deal was undisclosed. The acquisition also marks Razorpay\u2019s first foray into an international market.\n\n\nFounded in 2018, Curlec builds new-age tech solutions on top of existing payments infrastructure to make it easier for companies to collect recurring payments and take control of their cash flows. The company says its annual revenue has been growing at nearly 5x since 2018.\n\n\nThe acquisition will help both companies build and scale seamless payment solutions for Malaysia\u2019s businesses and enable global payments for Indian businesses, said Razorpay in a statement.\n\n\n\u201cFor now, we will be focussing on building payment products for the Malaysian market and then explore other regions in Southeast Asia,\u201d \nHarshil Mathur\n, CEO and co-founder of Razorpay, told \nTech in Asia.\n The company will slowly adapt and build products tailored to the region\u2019s geography, he added.\n\n\nSee also: \nWomen-focused fintech firm eyes $5m series A funding\n\n\nRazorpay currently serves over 8 million businesses in India including Facebook, Ola, Zomato, Swiggy, and Cred. It has clocked US$60 billion in total payment volume as of early December 2021, which it plans to take to US$90 billion by the end of the year. The company is backed by the likes of Tiger Global, Y Combinator, and Sequoia Capital India, and it currently holds a valuation of \nUS$7.5 billion\n."}
{"title": "KKR leads SG proptech unicorn\u2019s $180m round", "body": "Livspace\n, a Singapore-based proptech firm, has raised US$180 million in its series F funding round led by KKR, pushing the company into unicorn territory.\n\n\n\n\nPhoto credit: Livspace\n\n\n\n\nExisting investors such as Ingka Investments, Jungle Ventures, Venturi Partners, and Peugeot Investments also took part in the fundraise.\n\n\nFounded in 2014, Livespace offers interior design and renovation services using tech that helps predict pricing, timelines, and quality of a housing project. It also streamlines the supply chain of products and services on its cloud platform, which brings together original equipment manufacturers, brands, contract manufacturers, and subcontractors.\n\n\nOne of the firms\u2019 offerings is Canvas, a \nSaaS\n platform that lets designers engage with their customers, create 2D and 3D visuals, and add products and services to a shopping cart. The software then generates a project plan that helps designers monitor their progress.\n\n\nSEA expansion on the cards in 2022\n\n\nThe company will use the fresh funds to launch its operations in new markets, double down on brand building in India and Singapore, and invest in its supply chain.\n\n\n\u201cWe are really excited about Australia, which is a large market with no competition, based on all the studies that we\u2019ve done,\u201d CEO \nAnuj Srivastava\n told \nTech in Asia\n. \u201cGiven the strength of the market and the product market fit potential, we will use some of the capital for market launches, with the intention of dominating the Asia Pacific interior design market.\u201d\n\n\n\n\nPhoto credit: Livspace\n\n\n\n\nThe company said it has identified \u201csignificant\u201d opportunities for expansion in India via acquisitions in the direct-to-consumer space. It is also looking to explore acquisitions of private labels in the material space, including those for finishes, accessories, and kitchen equipment.\n\n\nSee also: \nThe Amazon of home decor eyes profits for SG unit after breaking even in India\n\n\nSrivastava also shared that the company will set aside around US$40 million to US$50 million for its expansion into Southeast Asia, where it is eyeing markets such as Vietnam, Indonesia, Malaysia, and Thailand. It looks to scale its operations in the region beginning 2023.\n\n\n\u201cThe Southeast Asian market, including Singapore, is usually a US$15 billion to US$20 billion addressable market, which is almost as large as India,\u201d he said.\n\n\nThe CEO added that the Singapore market has the same characteristics as India, citing its supply side fragmentation, lack of trust by consumers, and demand. These similarities provide Livspace with tailwinds for further expansion.\n\n\nThe proptech firm is also potentially exploring a joint venture to fuel its expansion plans in Southeast Asia. It used a similar strategy in the Middle East where it formed a joint venture with Alsulaiman Group, Ikea\u2019s operating partner in the region."}
{"title": "\ud83c\uddf8\ud83c\uddec Vegan ice cream firm scoops up $1.1m in fresh funds", "body": "Singapore-headquartered \nKind Kones\n, a plant-based ice cream startup, has raised S$1.5 million (US$1.1 million) in its series A round led by DSG Consumer Partners.\n\n\nThe fundraise lifted Kind Kones\u2019 valuation to S$10 million (US$7.4 million), the company told \nTech in Asia\n.\n\n\n\n\nPhoto credit: Kind Kones\n\n\n\n\nOther investors that took part in the round include Apricot Capital and Lam Soon, as well as Allianz Capital Partners managing director \nAndress Goh\n.\n\n\nFounded in 2017 by \nIshpal Bajaj\n and \nSerina Bajaj\n, Kind Kones serves all-natural vegan ice cream, along with desserts that are healthier alternatives to their conventional versions. The company operates in Singapore and Malaysia, where it has six outlets and two ecommerce channels.\n\n\nThe ingredients it uses in its frozen tubs\u00a0\ninclude\n coconut, cashew, almond, and fruits. Kind Kones\u2019 ice cream also comes in flourless, gluten-free cones.\n\n\nThe global vegan ice cream market is\u00a0\nexpected\n to be valued at US$805.3 million by 2027, pushed by an increase in health awareness and a rise in consumers\u2019 disposable incomes.\n\n\nSee also: \nKorean food delivery major Woowa Brothers joins Shiok Meats bridge round\n\n\nThe latest investment will be used to transition the company\u2019s business model from retail to consumer packaged goods, where its vegan ice creams will be available in supermarkets by the second quarter of the year.\n\n\nKind Kones will also use the funds for research and development of its product portfolio and scaling up its online presence.\n\n\nOver the past year, the startup has doubled its revenue to nearly S$2.3 million (US$1.7 million), with up to 40% of its sales coming from its online channel.\n\n\nIt currently has 25 staff, and aims to add another four employees in the foodtech and operations teams by the end of the first quarter of 2022.\n\n\nKind Kones is also looking to expand its operations into Thailand early next year, followed by other Southeast Asian countries, including Indonesia.\n\n\nCurrency converted from Singapore dollar to US dollar: US$1 = S$1.35."}
{"title": "Carsome names ex-AirAsia exec as chief marketing officer", "body": "Carsome\n, a Malaysia-based automobile marketplace, has appointed ex-AirAsia executive \nRavi Shankar Mallavarapu\n to serve as its chief marketing officer (CMO).\n\n\n\n\nCarsome chief marketing officer Ravi Shankar Mallavarapu / Photo credit: Carsome\n\n\n\n\nMallavarapu most recently served as AirAsia\u2019s chief growth officer, helping build the low-cost airline\u2019s in-house digital marketing and growth team.\n\n\nIn his new role, Mallavarapu will oversee the car ecommerce platform\u2019s brand, marketing, digital, social media, public relations, growth, market research, and customer experience. The new CMO will also collaborate with Carsome\u2019s chief brand officer, Derek Tan, on brand, creative, production, and sponsorships.\n\n\nMallavarapu said that Carsome is currently in a good position to spark a change in user behavior in Southeast Asia, where most car transactions are still being done offline. \u201cWe can move this online by establishing trust and the best customer experience at every touchpoint,\u201d he added.\n\n\nThe appointment comes just weeks after Carsome raised \nUS$290 million\n in a new round that pushed its valuation to roughly US$1.7 billion.\n\n\nSee also: \nAre Malaysia\u2019s startup efforts finally paying off?"}
{"title": "\ud83c\uddf2\ud83c\uddfe e-fulfillment startup eyes series C fundraise", "body": "IStore iSend, a Malaysian e-fulfillment startup, is in the process of raising its series C funding round. The company didn\u2019t disclose how much it is looking to bring in but told \nTech in Asia\n that it expects to complete the round within the next 12 to 18 months.\n\n\n\n\niStore iSend co-founders (from left): Tommy Yong and Joe Khoo / Photo credit: iStore iSend\n\n\n\n\nIf successful, it will be the company\u2019s second institutional round of funding \u2013 the first being its over \nUS$5.5 million\n series B round in January 2021. Six months later, it raised a \nseven-digit US dollar sum\n from Kuroneko Innovation Fund as part of the same round.\n\n\nIn 2009, \nJoe Koo\n and \nTommy Yong\n initially launched\u00a0as a warehousing business modeled after Fulfillment by Amazon. However, there was a lack of volume in the Malaysian ecommerce market, which drove them to switch to last-mile delivery. But in 2013, as demand for ecommerce grew, they returned to their original business model that focused on warehousing.\n\n\nToday, iStore iSend has developed a system to automate ecommerce operations. It provides clients with services ranging from storage to delivery arrangements and also value-added options such as real-time inventory management and shipment tracking.\n\n\nIt has also expanded into offering ecommerce enablement services such as online store set-up, brand onboarding on marketplaces, official online store management, growth and marketing campaigns management, listing, and customer services for brands and retailers.\n\n\nThe company has been talking to existing as well as new investors for its series C round and has received strong interest from new investors amid strong demand for ecommerce logistics.\n\n\nIStore iSend will use the fresh funds to boost its operations in Thailand, which it entered in the second half of 2021, and launch in Vietnam and the Philippines by the end of the year. Following the expansion, it will be present in six Southeast Asian countries, the others being Malaysia, Singapore, and Indonesia.\n\n\nJoe Khoo, co-founder and CEO of iStore iSend, told \nTech in Asia\n that he estimated it would take US$1 million for a logistics firm to get started in a Southeast Asian country, and the firm plans to invest exactly that amount in each of Vietnam and the Philippines to get things running.\n\n\nThe company is also looking to make a substantial investment in the Thai market, as it looks to penetrate deeper into the market.\n\n\n\u201cIn Thailand, we are going to invest more as it is a very promising market for us. If we just take a look at the initial numbers, it is quite a substantial growth area for us,\u201d said Khoo.\n\n\nSee also: \nSeries SEA: Who\u2019s investing in the region\u2019s logistics and transportation startups?\n\n\nCurrently, iStore iSend processes over 5 million items per year across a combined 375,000 square feet of warehouse space in four nations. It said it made over US$17 million in revenue in 2020 and saw a 15% month-on-month growth in volume of products processed via its warehouses. The company currently has a staff of over 200 employees and has expanded its business to Singapore, Indonesia, and China."}
{"title": "MyTukar to open 25 new showrooms in \ud83c\uddf2\ud83c\uddfe", "body": "MyTukar\n, a platform for buying and selling cars that is part of the \nCarro Group\n, said that it will be expanding nationwide in Malaysia this year as it looks to open close to 25 showrooms and retail experience centers across its home country.\n\n\n\n\nPhoto credit: MyTukar\n\n\n\n\nThe company said its showrooms, which will feature the latest line of used cars on the market, will serve as another key avenue to reach its customers. Meanwhile, its retail experience centers will serve as a one-stop shop for its clients and will cover all aspects of car ownership, from vehicle purchase to after-sale services and maintenance.\n\n\nDerrick Eng\n, CEO of MyTukar, said that the company\u2019s goal this year is to set up experience centers across all major towns in Malaysia. The initiative comes as the company sees a 15% to 20% increase in used-car sales, it said in a statement. MyTukar expects sales to grow exponentially in 2022.\n\n\nSee Also: \nCarsome and Carro: A neck-and-neck race to transform how people buy cars\n\n\nThese showrooms and centers will be set up in areas across Perak, Kedah, Sabah, Sarawak, Penang, the Klang Valley, Johor, and Seremban, among others.\n\n\n\u201cThrough these expansions, we hope to establish MyTukar as a community brand, a platform that stimulates the growth of the used-car industry,\u201d said Eng."}
{"title": "Fave co-founder joins \ud83c\uddf2\ud83c\uddfe perfume startup\u2019s seed round", "body": "Scentses + Co\n, a Malaysia-based perfume startup, has raised an undisclosed amount of seed funding from Fave co-founder \nYeoh Chen Chow\n as well as Malayan United Industries (MUI) Group through its venture arm Pan Malaysia Ventures.\n\n\n\n\nScentses + Co founders Sabreena Yeong (left) and Sadira Yeong / Photo credit: Scentses + Co\n\n\n\n\nFounded by sisters \nSadira Yeong\n and \nSabreena Yeong\n in July 2020, Scentses + Co offers perfume subscription services that allow customers to get different products every month. The company said that it is the first startup to offer such a service in Malaysia.\n\n\nThe firm currently has more than 10,000 subscribers and over 700 stock-keeping units on its platform. The company added that it has achieved a positive cash flow.\n\n\nOn top of the funding round, Scentses + Co also collaborated with MUI\u2019s portfolio in the retail and hotel sectors, which include Metrojaya and Corus Hotels. The collaboration is expected to boost the startup\u2019s annualized monthly revenue to 10 million ringgit (around US$2.4 million).\n\n\nSee also: \nAre Malaysia\u2019s startup efforts finally paying off?\n\n\nThe company plans to use the fresh funds for marketing purposes.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.19 ringgit"}
{"title": "Ex-JobStreet exec co-launches 1337 Ventures\u2019 new fund", "body": "Malaysia-based \n1337 Ventures\n has launched a 1.2 million ringgit (US$287,000) fund co-funded by former JobStreet COO Suresh Thiru and seasoned venture capitalist Asgari Stephens.\n\n\n\n\nFormer JobStreet COO Suresh Thiru / Photo credit: 1337 Ventures\n\n\n\n\nThe company said its 1337 Accelerator Fund I aims to invest in seed-stage Malaysian startups across any industry. The VC itself will act as the general partner of the fund and will be in charge of startup screening and portfolio management, among others.\n\n\nThe new fund plans to ink eight deals throughout the year, with a maximum ticket size of 150,000 ringgit (almost US$36,000). In addition, 1337 Ventures will help the fund\u2019s portfolio of startups raise more capital for their seed rounds, if necessary.\n\n\n\u201cIt\u2019s more than just the funding, it is also about the steady direction from our team to help startups raise a larger seed round, and with Suresh and Asgari being their advisors, these startups are all equipped to scale up their business,\u201d said Bikesh Lakhmichand, CEO and founding partner of 1337 Ventures.\n\n\nThe company added that in 2021, it had disbursed over US$310,000 in funding to both early-stage and later seed-stage companies. It plans to continue with its early investments strategy this year, while also doubling down on teams participating in its \nAlpha Startups Pre-Accelerator\n program.\n\n\nSee also: \nAre Malaysia\u2019s startup efforts finally paying off?\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.19 ringgit."}
{"title": "Malaysian edtech startup banks $1m in seed money", "body": "Malaysia-based \nGuruLab\n, a platform that provides tutors with learning analytics tools, has raised US$1 million in a seed round joined by Wright Partners.\n\n\n\n\nThe GuruLab team / Photo credit: GuruLab\n\n\n\n\nOn top of its learning tools, GuruLab also provides students with personalized lessons, starting with livestreamed English classes. The company was founded in 2021 by former McKinsey & Company consultant \nEer Kai Song\n and\u00a0\nVicky Tan\n, who previously co-founded learning firms Veritas Academy and Co:Ed Learning.\n\n\nCurrently, the company has already onboarded a team of over 10 masters and doctorate degree holders in education, as well as teachers with decades of experience, Eer said.\n\n\n\u201cMany within our team have returned home after an overseas education to help Malaysian students because we see first hand the opportunities that a good education can bring,\u201d she added.\n\n\nSee Also: \nIndonesia\u2019s top edtech apps aren\u2019t the usual suspects\n\n\nGuruLab said it will use the new capital to strengthen its analytics platform and expand its offerings within Malaysia\u2019s education system. It also looks to \u201caggressively\u201d grow its education and tech teams and expand into other subjects and markets in the region."}
{"title": "\ud83c\uddf2\ud83c\uddfe Content aggregator raises $1.4m in series A money", "body": "Malaysia-based \nNewswav\n, a content aggregation platform, has raised 6 million ringgit (US$1.4 million) in its series A round led by OSK Ventures International.\n\n\n\n\nNewswav team / Photo credit: Newswav\n\n\n\n\nFounded in 2017, Newswav is a politically independent news aggregator that provides content in three languages including English, Malay, and Chinese. It has partnered with nearly 200 content partners like \nThe Sun Daily\n, \nSCMP\n, \nMalay Mail\n, and \nThe Edge\n, among others.\n\n\nThe content firm was founded by \nSwee Wai Hoow,\n who also founded mobile commerce marketplace SnapSell, as well as \nYap Zhi Chau\n, group executive chairman of YYC Advisors.\n\n\n\u201cThe disruption happening in the news and media industry will accelerate for the rest of this decade,\u201d said Ng Kay Yip, co-founder of JobStreet and an early investor in Newswav.\n\n\nCurrently, the company\u2019s mobile apps and website record over 15 million average monthly visits. It has also posted 3x revenue growth in 2021, compared to the previous year.\n\n\nNewswav, which is backed by BFM Capital and YYC Ventures, will use the fresh funds to acquire more users, expand creators\u2019 platforms, and scale up in-house adtech capabilities, among other things.\n\n\nSee also: \nA list of fundraising startups from Asia (Updated)\n \n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.18 ringgit."}
{"title": "Earned-wage access startup gets $5.3m seed funding", "body": "Paywatch\n, an earned-wage access (EWA) startup based in Malaysia and South Korea, has raised US$5.3 million in seed funding from venture firm Third Prime, as well as family offices in Singapore and Malaysia, reported \nThe Business Times\n.\n\n\nThe fresh funds will be used to expand into new Southeast Asian markets such as Indonesia and the Philippines.\n\n\nPaywatch enables employees to access their earnings instantly, rather than having to wait for payday. To do this, it partners with banks who provide low-cost financing directly to employees. The firm counts Hong Leong Bank in Malaysia and Hana Bank in South Korea as its partners.\n\n\nSee also:\u00a0\nIs earned-wage access Indonesia\u2019s latest hot ticket?"}
{"title": "JCB injects $5m in \ud83c\uddf2\ud83c\uddfe fintech firm in strategic partnership", "body": "Soft Space\n, a Malaysian fintech firm, has inked a partnership with Japanese international payment brand \nJCB\n, a first of its kind in Malaysia.\n\n\n\n\nJCB\u2019s Yoshiki Kaneko (left) and Soft Space\u2019s Joel Tay / Photo credit: JCB and Soft Space\n\n\n\n\nThe collaboration includes a US$5 million injection from JCB into Soft Space. According to a joint statement, the injection is only part of the first tranche of funding coming for the Malaysian startup.\n\n\nThe tie-up would also see the two companies work together on business efforts capitalizing on Soft Space\u2019s fintech-as-a-service business model, tech, and regulatory knowledge. In addition, JCB said it plans to expand its merchant network, establish card issuing solutions, and provide customer marketing offerings through the partnership.\n\n\nOther areas for collaboration include enhanced merchant acceptance, mobility, payment gateways, and technical support. The two companies also said they are committed to accelerating cashless payments both in Malaysia and across Southeast Asia, linking Japanese consumers to the region.\n\n\nSee also: \nHow Axiata\u2019s Boost stands out in SEA\u2019s heated fintech race\n\n\nSoft Space is a \nsoftware point-of-sale\n company supporting over 30 financial institutions across 10 countries. The fintech firm was founded in 2012 by \nChang Chew Soon\n, who stepped down as its group CEO in 2018. The company is now led by CEO \nJoel Tay\n."}
{"title": "C-suite changes on the cards at MDEC: sources", "body": "Two members of Malaysian Digital Economy Corporation\u2019s (MDEC) C-suite have resigned or are serving their notice period after short stints at the agency, people familiar with the matter told \nTech in Asia\n.\n\n\n\n\nMDEC\u2019s headquarters in Cyberjaya / Photo credit: MDEC\n\n\n\n\nAiza Azreen Ahmad has resigned as chief digital business officer, according to the sources, who spoke on condition of anonymity. Checks on her LinkedIn profile show that she worked at MDEC, which is tasked with overseeing Malaysia\u2019s digitalization policies, until December 2021.\n\n\nIt is understood that chief financial officer Nora Junita Hussaini is serving her notice period.\n\n\nMeanwhile, MDEC has brought in Ashran Ghazi, the former CEO of Malaysian Global Innovation & Creativity Centre, as a contract-for-service consultant.\n\n\nAn MDEC spokesperson declined to comment when \nTech in Asia\n asked about the resignations and Ashran\u2019s appointment.\n\n\nThe executives who quit had worked at the agency for less than a year. Aiza joined in March after a three-month stint as CEO of Pertama Digital, a govtech company listed on Bursa Malaysia.\n\n\nNora Junita, a chartered accountant, joined MDEC last year on January 21.\n\n\nBoth were hired under the agency\u2019s then-CEO Surina Shukri and non-executive chairman Rais Hussin Mohamed Ariff.\n\n\nSurina was succeeded by Mahadhir Aziz, who took over the reins as MDEC\u2019s chief executive on September 1. He is the former CEO of Futurise, a government agency under the Finance Ministry with a mandate to oversee the National Regulatory Sandbox program.\n\n\nMd Alwi Che Ahmad took over from Rais as chairman, and his two-year tenure began on December 1.\n\n\nBoth Rais and Md Alwi are political appointees. Rais is a former supreme council member of the Malaysian United Indigenous Party while Md Alwi is the Kok Lanas state assemblyman and a member of the United Malays National Organisation, the country\u2019s ruling political party.\n\n\nEstablished in 1996, MDEC is under the purview of the Communications and Multimedia Ministry.\n\n\nMDEC is also governed by the Finance Ministry, which serves as the \ngolden shareholder\n that approves board appointments."}
{"title": "AirAsia gets license for drone pilot training in Malaysia", "body": "AirAsia\n got the green light from\u00a0the Civil Aviation Authority of Malaysia to conduct remote drone pilot training at its academy in Kuala Lumpur.\n\n\n\n\nPhoto credit: AirAsia\n\n\n\n\nThe license will support the company\u2019s aim of launching urban drone delivery for goods and retail items from AirAsia\u2019s ecommerce platforms in the future, said Bo Lingam, CEO of AirAsia Aviation.\n\n\nWith the new license, the Drone Academy, which is under AirAsia\u2019s digital edutech arm, AirAsia Academy, will offer commercial remote pilot training classes starting January 24. The academy will open with four classes \u2013 with more courses to come soon \u2013 and will be open to AirAsia employees and others.\n\n\nThe pilot training curriculum is also AirAsia\u2019s bid to join a global drone delivery market that is estimated to grow to nearly \nUS$3.7 billion\n by 2027.\n\n\n\u201cDrone delivery will soon become our latest logistics solution, providing a strong boost to support the ever-growing ecommerce industry. Most importantly, this innovation will allow us to create new high-tech job opportunities for Malaysians,\u201d said Aireen Omar, president of AirAsia Group Digital."}
{"title": "\ud83c\uddf2\ud83c\uddfe drone firm to take flight in Scandinavia through team up", "body": "Aerodyne\n, a Malaysia-based drone startup, has struck a deal with Norway-based tech firm Astralution to offer drone-as-a-service and software-as-a-service solutions in the Scandinavian region.\n\n\n\n\nPhoto credit: Aerodyne\n\n\n\n\nEstablished in 2014, Aerodyne uses AI to integrate large-scale data operations and analytics into its drone offerings. The company said it has managed over 560,000 infrastructure assets with 458,058 flight operations across 35 countries globally.\n\n\nKamarul Muhamed\n, founder and group CEO of Aerodyne, said that the partnership would allow the company to tap into the Scandinavian region\u2019s large renewable energy sector. In 2020, Denmark and Norway had a total renewable capacity of 9,677 megawatts and 37.2 terawatts, respectively.\n\n\n\u201cThere is also a huge opportunity to break data silos in the oil and gas sector, and with room to improve in how data can be standardized, integrated, and analyzed,\u201d he added.\n\n\nSee also: \nAre Malaysia\u2019s startup efforts finally paying off?\n\n\nThe announcement follows Aerodyne\u2019s similar \npartnerships\n in Thailand with AI and Robotics Ventures, a subsidiary of petroleum major PTT Exploration and Production, and IT solutions firm Digital Creation."}
{"title": "Carsome races ahead with $290m funding", "body": "Update (January 10, 10:25 am): This article was updated to include details from a statement from Carsome.\n\n\nMalaysian car marketplace \nCarsome\n has raised US$290 million in a new round led by \n65 Equity Partners\n, \nSeaTown Holdings\n, and \nQatar Investment Authority\n, said a \nBloomberg\n report, citing sources. The round pushes its valuation to roughly US$1.7 billion.\n\n\n\n\nCarsome co-founder and group CEO Eric Cheng / Photo credit: Carsome\n\n\n\n\nBoth 65 Equity Partners and SeaTown Holdings are backed by Temasek Holdings. Mediatek, Sunway, Gokongwei Group, YTL Group, and Taiwan Mobile also joined the round.\n\n\nCarsome is one of the largest online platforms for vehicle buyers and used car dealers. The company\u00a0in September 2021 raised \nUS$170 million\n from Asia Partners, Gobi Partners, and 500 Southeast Asia, among other investors, bringing its valuation to US$1.3 billion.\n\n\nIt plans to use the new funds to invest in hiring, tech development, and data capability. Carsome also looks to expand its retail brand Carsome Certified across markets in Malaysia, Indonesia, and Thailand.\n\n\nWith a presence in the three mentioned countries and Singapore, the startup claims it sells nearly 100,000 vehicles annually.\u00a0The tech unicorn is also evaluating a potential listing in the US in the later part of 2022, added the report.\n\n\nSee also: \nCarsome and Carro: A neck-and-neck race to transform how people buy cars"}
{"title": "Malaysian edtech firm bags $2m from YC, 500 Global", "body": "Pandai\n, a Malaysia-based education technology firm, has raised a little over US$2 million in its pre-seed and seed rounds, which saw participation from Y Combinator, Global Founders Capital, and 500 Global.\n\n\n\n\n(From left) Pandai founders Mohd Suhaimi Ramly, Mohd Akmal Akhpah, and Khairul Anwar Mohamad Zaki / Photo credit: Pandai\n\n\n\n\nFounded in January 2020, Pandai is an education app that helps K-12 students improve their academic performance. Recently, the startup launched modules that would allow parents to monitor their child\u2019s activities and let teachers tap into the firm\u2019s question bank.\n\n\nThe company\u2019s offering was launched amid the Covid-19 pandemic, which helped it onboard users quickly. The app now has over 30,000 monthly active users.\n\n\nPandai began as a free service before it rolled out its paid feature at the beginning of 2021. However, despite the number of paid users increasing by 25% every month, the company said the feature is not its focus right now.\n\n\n\u201cWe still want to improve the stickiness of our app and prolong the time that users spend in the app,\u201d \nKhairul Anwar Mohamad Zaki\n, the company\u2019s chief executive, told \nTech in Asia\n.\n\n\nTo date, users spend around 57 minutes a day on the app, and the company wants to push that number to 90 minutes and boost its monthly active users as well.\n\n\nSee also: \nThe key players in Southeast Asia\u2019s growing edtech scene\n\n\nZaki founded Pandai along with his friends \nMohd Suhaimi Ramly\n and \nMohd Akmal Akhpah\n. The three graduated from universities in the US and have run a traditional education business together\u00a0since 2008, though the trio now focus their efforts on Pandai.\n\n\nBefore bagging its most recent investment, Pandai became the first Malaysian edtech startup that was accepted in the Y Combinator accelerator program.\n\n\nThe company plans to use the fresh funds to acquire more customers in Malaysia and improve the technology and content side of its product. It currently has around 37 employees spread out between its technology and content divisions.\n\n\nOther investors in this round include:\n\n\n\n\nSoma Capital\n\n\nHarvard Management Company\n\n\nRHL Ventures\n\n\nFalnas Capital\n\n\nKembara Kapital\n\n"}
{"title": "AirAsia set to rebrand as Capital A", "body": "Malaysia-based \nAirAsia\n is set to rebrand itself as Capital A, signaling the expansion of its services beyond its core airlines-to-cargo delivery and fintech services, \nNikkei\n reported.\n\n\nThe decision has been greenlit by the Companies Commission of Malaysia.\n\n\nOver the past year, AirAsia has made significant leaps in realizing its super-app ambitions by unveiling \nAirAsia Ride\n, a ride-hailing service that will focus primarily on airport transportation for flight passengers.\n\n\nThe group also said it would launch its \nfood delivery service\n in Indonesia by early 2022 and has opened applications for potential partners in the country.\n\n\nWhile the change in name is subject to approval from shareholders at a general meeting to be convened at a later date, it is expected to keep the AirAsia brand for its air carrier business.\n\n\nRecently, AirAsia Digital scrapped its plans for a\u00a0\nUS$10 million\n acquisition of Velox Fintech, a unit of Gojek Thailand. The Malaysia-based firm, however, completed the acquisition of another business under Gojek Thailand \u2013 Velox Technology \u2013 for US$40 million.\n\n\nSee also: \nTony Fernandes responds to critics of his AirAsia super-app gamble"}
{"title": "Malaysia gets $37.8m venture debt fund", "body": "Malaysia-based \nIris Capital Partners\n has launched Iris Fund, a 160 million Malaysian ringgit (US$37.8 million) fund co-managed with South Korea-based Hanwha Asset Management.\n\n\nIt is the first privately-led \nventure debt\n fund in Malaysia, and it targets high-impact startups locally and across Southeast Asia.\n\n\n\n\nIris Fund chairman Wan Kamaruzaman Wan Ahmad / Photo credit: Iris Fund\n\n\n\n\n\u201cWhile the Iris Fund isn\u2019t limited to specific sectors or funding stages, we do look for companies with comprehensive business plans and projections that have clear strategies for long-term growth prospects,\u201d said \nWan Kamaruzaman Wan Ahmad\n, chairman of the Iris Fund.\n\n\nThe fund has already joined foodtech firm\u00a0Growthwell Group\u2019s\u00a0\nUS$22 million series A round\n.\n\n\nIris Capital Partners was established in 2020 under the\u00a0\nDana Penjana Nasional\n\u00a0program of the Malaysian government\u2019s \neconomic recovery agency\n."}
{"title": "Malaysian fintech firm nets $7m to grow Shariah-compliant finance arm", "body": "CapBay\n, a fintech startup based in Malaysia, has secured 30 million ringgit (US$7 million) from Kenanga Capital Islamic (KCI), a subsidiary of \nKenanga Investment Bank Berhad\n (KIBB).\n\n\n\n\nCapBay co-founder Xing Xian Ang / Photo credit: CapBay\n\n\n\n\nThrough this investment, the startup is looking to grow its Shariah-compliant supply chain finance arm. Called CapBay Islamic, it has already been approved for Shariah-compliant peer-to-peer financing by the Securities Commission Malaysia.\n\n\nLast year, CapBay partnered with KIBB by acquiring a \n49% stake\n in its subsidiary KCI to create Malaysia\u2019s first fintech firm focused Islamic supply chain finance.\n\n\nAccording to the \nAssociation of Islamic Banking and Financial Institutions Malaysia\n, half of Malaysia\u2019s banking assets is expected to be Islamic by 2030 as the industry\u2019s growth outpaces conventional banking.\n\n\nSee also: \nAre Malaysia\u2019s startup efforts finally paying off?\n\n\n\u201cWe noticed many of our clients seeking an Islamic alternative to our products, and we are catering to this growing demand,\u201d said \nSri Mohd Mokhtar Mohd Shariff\n, chairman of CapBay.\n\n\nCurrency converted from Malaysian ringgit to US dollars: US$1 = 4.22 ringgit."}
{"title": "SG insurtech firm teams up with Pine Labs in Malaysia", "body": "Igloo\n, a Singapore-based insurtech firm,\u00a0 announced that it has teamed up with Indian digital payments service provider \nPine Labs\n in Malaysia.\n\n\n\n\nPhoto credit: Pine Labs\n\n\n\n\nThrough the partnership, Igloo can expand further into Malaysia while Pine Labs will offer shoppers mobile phone protection solutions under IglooCare Program, which offers repair and other services nationwide.\n\n\nIgloo\u2019s Mobile Phone 360 and Phone Screen Protection products are available on Pine Labs\u2019 platform. The protection covers repair services and replacement costs worth up to 100% of the gadget\u2019s retail price.\n\n\nPine Labs currently has over 246,000 merchants in 3,700 cities and towns across India and Malaysia.\n\n\nIgloo has also appointed insurance veteran \nAmitabh Singh\n as country manager for Malaysia. Singh, whose nearly 20-year experience includes a stint at AIA Malaysia, will be at the helm of Igloo\u2019s overall operations in the this market.\n\n\nThe company will also be hiring for key roles across sales and business development as well as operations and customer service in the country.\n\n\nIgloo has established over 30 partnerships this year across diverse industries in Southeast Asia. In November, it \nstrengthened its tie-up with Vietnamese delivery firm AhaMove\n by introducing three new products.\n\n\nDuring the same month, Igloo teamed up with direct-to-consumer \nhealthcare marketplace HD\n to provide health-related microinsurance products in Thailand via the HDmall platform.\n\n\nIn September, Igloo inked agreements with e-wallet platforms \nGCash\n in the Philippines and \nDana\n\u00a0in Indonesia to provide online shopping protection and phone screen protection, respectively.\n\n\nIn July, Igloo partnered with food delivery platform \nFoodpanda Singapore\n to roll out insurance products for gig economy workers."}
{"title": "Grab to buy Malaysian grocery major", "body": "Southeast Asian super app \nGrab\n has signed an agreement to acquire Jaya Grocer, a Malaysia-based online and offline grocery firm, for an undisclosed sum.\n\n\n\n\nGrabSupermarket in Malaysia / Photo credit: Grab\n\n\n\n\nThe Singapore-headquartered tech giant has agreed to buy all the ordinary shares and 75% of the preference shares of Jaya Grocer, according to Grab\u2019s filing on Nasdaq.\n\n\nGrab also has the option to buy up the remaining 25% of the grocery firm\u2019s preference shares after closing the deal. The super app also said that it will partner with a Malaysia-based investor, which will own 50% of the voting shares in Jaya Grocer, to comply with the country\u2019s regulations.\n\n\nThe retail grocery store started back in December 2007 and has since grown to run 40 stores across Peninsular Malaysia, according to Grab. Most of these locations are in the Klang Valley area, an urban conglomeration centered in Kuala Lumpur.\n\n\nSee also: \nGrab\u2019s financial health in 8 charts\n\n\n\u201cFollowing closing, Jaya Grocer is expected to become a subsidiary of Grab Holdings and its financial results will be consolidated by Grab Holdings,\u201d the filing read. The deal is projected to close in the first quarter of 2022."}
{"title": "Google Cloud names ex-Microsoft exec as country director of Singapore, Malaysia", "body": "Google Cloud has appointed \nSherie Ng\n as the country director of its business in Singapore and Malaysia.\n\n\nNg was previously Microsoft\u2019s general manager for the public sector in the Asia Pacific, where she handled public-private partnerships. She is also a founding partner at insurance firm \nSinglife Philippines\n.\n\n\nShe will be reporting directly to\n Ruma Balasubramanian\n, Google Cloud\u2019s managing director for Southeast Asia. Ng also joins an all-female leadership team as she leads Google Cloud Platform and Google Workspace\u2019s revenue, go-to-market strategy, and operations divisions.\n\n\nSee also: \nTop 5 takeaways from Google Cloud Next\n\n\nShe brings 25 years of leadership experience in the tech space, having worked at Nice Systems, Invensis, Singtel, Comverse Technologies, CSG Systems, and Lucent Technologies.\n\n\n\u00a0"}
{"title": "Una Brands commits $23m to buy Malaysian ecommerce firms in 2022", "body": "Una Brands\n, a Singapore-based ecommerce roll-up firm, will be investing US$23.6 million in the next year to acquire local Malaysian ecommerce brands and grow them into household names.\n\n\n\n\nUna Brands co-founders / Photo credit: Una Brands\n\n\n\n\nThe company will be offering an upfront lump sum and a cut of the profits to these firms going forward, according to\n Kiren Tanna\n, CEO and founder of Una Brands.\n\n\nThe \nThrasio\n-style platform acquires companies that sell across several channels relevant to the Asia-Pacific market including Shopify, Shopee, Lazada, Tokopedia, and Amazon.\n\n\nUna Brands acquires independent profitable firms with revenue between US$1 million and US$50 million and can complete the end-to-end transaction within six weeks.\n\n\nThe company aims to acquire brands that focus on everyday consumer products in categories such as home and living, beauty and personal care, pets, babies, and sports.\n\n\nSince launching earlier this year, Una Brands has raised \nUS$55 million\n from global investors including White Star Capital, Alpha JWC, and Ninja Van co-founder \nAlvin Teo.\n\n\nSee also: \nRoll-up ecommerce flexes its muscles in India\n\n\nUna Brands has so far acquired over 20 firms, with the earliest brands seeing an over 50% increase in sales and profits since their acquisition. The company has a team of 90 people across seven offices in Singapore, Australia, India, China, Taiwan, Indonesia, and Malaysia."}
{"title": "AC Ventures, East Ventures join $8.5m round of Malaysian F&B startup", "body": "Food Market Hub\n, a Malaysia-based procurement and inventory management platform for the food and beverage (F&B) industry, has raised US$8.5 million in a series A+ round led by AC Ventures Malaysia, which is backed by the country\u2019s Penjana Kapital. East Ventures and Gojek\u2019s VC arm Go-Ventures also participated in the round.\n\n\nAdding to the \nUS$4 million series A round\n that the company announced in November last year, the total amount raised in this round reached US$12.5 million.\n\n\n\n\nFood Market Hub core team (from left): CTO Amit Gupta, CEO Anthony See, COO Shayna Teh, head of growth and strategy Anusha Rajadorai, and head of regional expansion Chee Ping Lim / Photo credit: Food Market Hub\n\n\n\n\nFood Market Hub automates the purchasing and inventory-tracking process by connecting F&B businesses with suppliers. In a statement, the company said that it currently has 5,000 active users, double the figure from early 2020. Its annualized total order value grew more than 4x in the past 12 months to US$600 million.\n\n\nThe company was founded by \nAnthony See\n and \nShayna Teh\n in 2017.\n\n\nIt plans to use the fresh money to scale its business in Malaysia and Indonesia, while expanding to Singapore and Thailand by 2022. The firm also aims to enter other markets such as Vietnam.\n\n\nSee also: \nAre Malaysia\u2019s startup efforts finally paying off?\n\n\nOther investors in this round include:\n\n\n\n\nSIG\n\n\n500 Global\n\n\nVelocity Ventures\n\n\nCapital Code\n\n"}
{"title": "High-speed internet startup to launch in 10 APAC markets", "body": "Transcelestial\n, a last-mile internet distribution startup based in Singapore, said it has partnered with \nExclusive Networks, a \ndigital infrastructure distributor,\n to expand its operations\u00a0\ninto\n \nAustralia,\n \nNew\n \nZealand,\n \nHong \nKong,\n\u00a0\nMacau,\n \nIndia,\n \nIndonesia,\n \nMalaysia,\n the \nPhilippines,\n \nSingapore,\n \nThailand,\n \nand\n \nVietnam.\n\n\n\n\nThe Transcelestial team / Photo credit: Transcelestial\n\n\n\n\nUnder \nthe\n \npartnership,\n \nExclusive\n \nNetworks\n \nwill\n \nsell\n \nTranscelestial\u2019s\n \nsolutions\n\u00a0\nto \nits\n \ncurrent\n \ncustomer\n \nbase\n \nof\n m\nobile\n n\network\n o\nperators\n,\n i\nnternet\n s\nervice\n p\nroviders,\n\u00a0and\n\u00a0e\nnterprises in all ten markets.\n\n\nFounded in 2016, Transcelestial\u2019s laser communications tech makes it possible to beam fiber-grade Internet without the need for any wires between buildings, cell towers or street-level poles. This can be implemented in a fraction of the time and cost of physical fiber cables.\n\n\nCharles \nHan\n, Transcelestial\u2019s company\u2019s\u00a0newly appointed global channel strategy and program lead, and \nSunny Tham\n, its global channel sales lead, will spearhead the company\u2019s\n \nexpansion\n \nplan\n.\n\u00a0\nHan\n has \npreviously\n \nheld\n \nsenior\n \nleadership\n \nroles\n \nat\n \nVMware, \nCisco,\n \nand\n \nCitrix. Meanwhile\n \nTham\n\u00a0\nhas over \n20 \nyears of experience in the Asia-Pacific point-to-point wireless connectivity market.\n\n\nExclusive Networks provides cloud and cybersecurity services. Its \u2018local sale, global scale\u2019 model serves clients with international reach via a single point of contact.\n\n\n\u201cExclusive\n \nNetworks\n \nis\n \nputting\n \nits\n \ntrust\n \nand\n \nweight\n \ninto\n \nthis\n \npartnership\n \nto\n \naddress\n \nwhat \nCovid-19\n \nhas\n \nmade\n \nmost\n \nurgent\n \nin\n \nthe\n \ntelecom\n \nindustry\n \n\u2013\n \nan\n \naccelerated\n \nrollout\n \nof\n \ntransformational \nnetwork\n \nupgrades,\u201d said Brad Gray, senior vice president of APAC at Exclusive Networks.\n \u201c\nWe\n \nsee\n \na\n \ndistinct\n \nand\n \ntimely\n \nopportunity\n \nhere\n \nfor\n \nfirst-movers\n \nto\n \nlead\n \nthe\n \ncharge \nand\n \ndefine\n \nthe\n \nfuture\n \nof \nconnectivity.\u201d\n\n\nSee also: \nIFast could be Singapore\u2019s most underrated public internet company\n\n\nTranscelestial\n \nis\n \nbacked\n \nby\n \ninvestors including\n\u00a0\nWavemaker\n \nPartners,\n \nEDBI,\n \nAirbus\n \nVentures,\n \nKickstart\n \nVentures,\n \nCap\n \nVista,\n \nSeeds\n \nCapital\n,\n \nEntrepreneur\n \nFirst, \nPartech\n \nVentures,\n \n500\n \nStartups,\n \nAirTree\n \nVentures,\n \nTekton\n \nVentures, \nSGInnovate,\n \nSparkLabs\n \nGlobal\n \nVentures.\n Its investors also include \nMichael\n \nSiebel, \nCEO\n \nof\n \nY-Combinator and\n co-f\nounder\n \nof\n \nTwitch, among others.\u00a0\n\n\nCorrection (November 25, 2:30p.m. SGT): The article has been corrected to reflect the exact tech that Transcelestial uses."}
{"title": "Malaysian VC firm to pump $38m in startups through 2 new funds", "body": "Malaysia Venture Capital Management Berhad\n (Mavcap), one of Malaysia\u2019s largest VC firms, has agreed to set up two new funds with a collective size of 160 million ringgit (just above US$38 million).\n\n\n\n\nPhoto credit: Mavcap\n\n\n\n\nThe investment vehicles, named the Orbit Malaysia Fund I and the Ficus SEA Fund, will look for equity funding opportunities in the AI, fintech, healthtech, greentech, industrial tech, edtech, and IoT spaces. It plans to back startups from Malaysia, as well as other countries in the region.\n\n\nBesides this, the Ficus SEA Fund will invest in local startups in the logistics and greentech industries, and is eyeing other areas such as Islamic fintech, augmented reality, and solutions that tackle environmental, social, and governance issues.\n\n\n\u201cWith our investment focused on robust growth sectors, we foresee positive returns for investors in the years to come, particularly in the post-pandemic environment as the world forges ahead toward recovery,\u201d said Asyrul Ramali, CEO of Ficus Group Capital (Mavcap\u2019s partner for the fund).\n\n\nThe US$25 million Orbit Malaysia Fund I, which was \nannounced earlier this month\n, will be managed by Jakarta-based Kejora Capital, with Sunway Group and Mavcap serving as anchor investors. The partnership follows Sunway Group and Mavcap\u2019s collaboration on the Malaysia SuperSeed Fund II in 2019."}
{"title": "How Malaysia\u2019s co-working spaces can become more than just \u2018spaces\u2019", "body": "When a startup begins seeking out an office of their own, their first port of call nowadays is often a co-working space. Known for the flexibility, convenience, and resources that they provide to businesses, co-working spaces are on the rise all over the world \u2013 especially in Malaysia.\n\n\nAccording to real estate consultancy firm Knight Frank Malaysia, the number of co-working spaces in the Klang Valley alone \nhas doubled\n from 2017, with 66 co-working operators across 160 spaces as of 2020.\n\n\n\n\nPhoto credit: Common Ground\n\n\n\n\nIt\u2019s certainly an exciting time to be a player in the industry. The Covid-19 pandemic has led to a reimagining of what the modern workplace looks like, and even larger corporations are considering co-working spaces for the flexibility they offer.\n\n\nHowever, the pandemic has put operators in a precarious position, as movement restrictions and shifts toward more hybrid working arrangements mean that it won\u2019t be enough for co-working spaces to just be physical offices.\n\n\n\u201cCo-working spaces cannot remain as purely property projects,\u201d says Yong Kai Ping, CEO of the \nSelangor Information Technology & Digital Economy Corporation (Sidec)\n. \u201cThey need to offer a full package of ecosystem and community support [to attract startups].\u201d\n\n\nMany co-working spaces have begun branching out to different areas beyond their primary offering. Some organize community events, while others strike up deals with tech partners and vendors to benefit their members.\n\n\nAnd for co-working spaces in Malaysia, they can also enhance their offerings through a program launched by the \nMalaysia Digital Economy Corporation (MDEC)\n: the \nMalaysia Digital Hub (MDH)\n initiative.\n\n\nBringing together the elements for startup success\n\n\nLaunched in 2017, the MDH initiative aims to bring together all the key components and players required for startup growth in one place, with co-working spaces serving as the physical meeting point.\n\n\nWhile co-working spaces are usually the focus of this program, the MDH initiative is open to any organization that provides physical amenities such as office space and internet connectivity, as well as more support and community-focused elements such as access to funding opportunities and tech partners.\n\n\nSidec, for one, has been certified as an MDH, running a co-working space along with its flagship incubator program. \nForward School\n, an edtech firm based in Penang that offers founders a co-working space alongside its engineering and developer training programs, has received the certification as well.\n\n\n\n\nParticipants at Sidec\u2019s flagship accelerator program in 2019 / Photo credit: Sidec\n\n\n\n\n\u201cIt has always been our mission to bridge the local tech talent gap, and we also work with key players in the tech industry and startups to help grow the ecosystem as a whole,\u201d shares Howie Chang, Forward School\u2019s co-founder and CEO. For him, getting an MDH certification felt like a natural step, as MDEC\u2019s goals for the program aligned with Forward School\u2019s own ambitions to foster Malaysian startup talent.\n\n\nThis was the case as well for Kuala Lumpur-based co-working space \nCommon Ground\n. According to co-founder Juhn Teo, the co-working space was already certified as an MDH when it opened its first location in 2017.\n\n\n\u201cWe built Common Ground with a vision of a digitized, dynamic community,\u201d shares Teo. \u201cWe knew that we could not just provide a desk and Wi-Fi, and our true value would come in how we support businesses to do their best work \u2013 through providing access, networks, and the right environment.\u201d\n\n\nAs such, acquiring MDH certification made sense for Common Ground. The co-working space has had several venture capital firms working out of its premises, providing founders in their spaces with access to funding opportunities literally next door. It also frequently organizes community events such as pitching sessions, fireside chats, and hackathons.\n\n\nBeing part of the ecosystem\n\n\nGetting certified as an MDH is no easy endeavor, given the ecosystem of facilities and support that firms need to have in place to receive the certification. However, it appears to be worth the effort: being an MDH has proven to be a differentiating factor for these businesses.\n\n\n\n\nPhoto credit: Forward School\n\n\n\n\nMDEC often features MDHs as part of the resources it offers to entrepreneurs, which means that having the certification allows these businesses to get greater exposure and reach out to more startups. Additionally, being an MDH enables these co-working spaces to work closely with MDEC on the different programs it offers.\n\n\nFor example, MDHs are a key part of the appeal behind MDEC\u2019s \nMalaysia Tech Entrepreneur Programme (MTEP)\n, which seeks to attract foreign tech talent and aspiring entrepreneurs to come to Malaysia.\n\n\nWhen an entrepreneur arrives in Malaysia as part of MTEP, they are often introduced to MDHs as a way for them to connect with relevant ecosystem players and build up their networks.\n\n\n\u201cWhat we offer to these foreign startups [and entrepreneurs] is fast access and quick connections to the local business community,\u201d says Teo. \u201cOnce they join us as members, they in turn add fresh opportunities and spark technological pursuits within the existing community. This helps us become a magnet for startup and tech events and activities.\u201d\n\n\nGetting bigger and better\n\n\nBeing an MDH also offers businesses the opportunity to enhance the services they already provide, in collaboration with other partners in the MDEC ecosystem. The organization works closely with the MDHs in its network, putting together monthly programs to help them develop and grow further.\n\n\n\u201c[The MDH initiative] helps us to be better connected and in touch with the many programs coming out of MDEC, and to tap into a wider network of players in the sector and encourage collaboration,\u201d says Chang.\n\n\n\n\nPhoto credit: Common Ground\n\n\n\n\nFor example, Sidec has been able to strike up partnerships with corporations such as Agrobank and Bank Islam to offer mentorship to startups that participate in its incubator program. Meanwhile, Common Ground has worked with Microsoft and HP to give its members special rates, and it is currently in talks with Microsoft to provide upskilling programs for its community.\n\n\nAnd it\u2019s not just co-working spaces that stand to gain from the MDH initiative. Plenty of startups have benefited from the way that MDHs have pooled together different resources, ideas, and people into one space.\n\n\nTeo shares the example of \nOoGyaa\n, an e-scooter startup that operates out of one of Common Ground\u2019s co-working spaces. The firm was able to connect with another Common Ground member whose services helped address its business needs. OoGyaa was also able to leverage Common Ground\u2019s connections with tech partners, established via MDEC, to set up its payment processes efficiently and affordably.\n\n\nMore than just spaces\n\n\nAs MDEC \ndoubles down\n on its ecosystem of support for startups in Malaysia, MDHs will continue to play a key role in driving the industry\u2019s growth.\n\n\nCurrently, there are 10 co-working space operators that have received MDH certifications. These MDHs have over 22 locations throughout Malaysia. According to Gopi Ganesalingam, chief digital industry officer of MDEC\u2019s tech ecosystems and globalization division, the MDH program has supported the growth of over 600 startup entrepreneurs to date. The program is also looking to expand its reach to co-working spaces in places like Sabah, Sarawak, Johor, and Malacca.\n\n\n\u201cWhat the pandemic has made abundantly clear is that the needs of the ecosystem continue to shift, and agility is key to success,\u201d shares Ganesalingam. \u201cMDEC\u2019s MDH program reflects our dynamism in that it is no longer simply offering a physical space but one that enables exchange of ideas, learning, support and access \u2013 a holistic solution to grow and catalyze our ecosystem.\u201d\n\n\nAside from bringing together the ingredients that will help a startup succeed into one location, MDHs also help build up and strengthen Malaysia\u2019s startup community. They bring together like-minded individuals to spark new conversations and new ideas \u2013 and a new generation of Malaysian startups that can compete on the global stage.\n\n\n\n\nMDEC is an agency under the Malaysian administration that aims to lead Malaysia\u2019s digital economy forward. Its Malaysia Digital Hub initiative aims to bring together the key components and players required for startups to grow into a common meeting place.\n\n\nLearn more about Malaysia Digital Hubs \nhere\n.\n\n\n\n\nThis content was produced by Tech in Asia Studios, which connects brands with Asia\u2019s tech community. \nLearn more\n about partnering with Tech in Asia Studios."}
{"title": "ScaleUp Malaysia unveils 20 startups in third cohort", "body": "ScaleUp Malaysia\n, an accelerator focused on growth-stage firms, has selected 20 startups for its fourth cohort.\n\n\n\n\nPhoto credit: ScaleUp Malaysia\n\n\n\n\nThe selected companies hail from verticals including edtech, fintech, media, manufacturing, cybersecurity, foodtech, and ecommerce.\n\n\nLaunched in October 2019, ScaleUp Malaysia focuses on local growth-stage companies. It provides participants with training programs that cover finance, human resources, marketing and sales, technology, product, and strategy.\n\n\nVenture capital firms Quest Ventures from Singapore and Indelible Ventures from the US have joined the cohort to support shortlisted scale-up companies.\n\n\nThe companies selected for the Quest Ventures track are: Jazro, Madcash, Traitily, GuruInovatif, SpareXHub, Nanka, VireServe, OpenAcademy, Hav.life, PantangPlus, J8 Autism Athletics, Graze Market, Solaku, Wa Sushi, and Biztech.asia.\n\n\nMeanwhile, Midwest Composites, Howuku, Q3 Payment, GoCloud, and Neptrix have been selected for the Indelible Ventures track.\n\n\nHere are the startups:\n\n\n\n\n\n\nSpareXHub\n, an ecommerce marketplace for auto spare parts that brings together automotive distributors, independent workshops, and car owners.\n\n\n\n\nBiztech.asia\n, a cross-media and marketing platform that enables business-to-business marketing for clients via scheduled video and podcast content, as well as networking and corporate gaming events.\n\n\n\n\nGuruInovatif\n, a platform that provides complete online resources for professional development of teachers.\n\n\n\n\nHav.life\n, a platform that provides rewards for fitness goals.\n\n\n\n\nHowuku\n, an online platform that offers all-in-one web optimization and analytics services as well as user experience testing tools to help businesses visually understand their visitors and improve conversion rates.\n\n\n\n\nAoikumo\n, a software-as-a-service provider for the beauty and medical aesthetics industries.\n\n\n\n\nNanka\n, a food startup that produces plant-based meat from jackfruit to provide a better alternative to highly processed fast-food dishes.\n\n\n\n\nJ8 Autism Athletics\n, a fitness firm that provides services catered specifically to the neurodiverse community, equipping them with the skill sets to socially assimilate and partake in family physical activities.\n\n\n\n\nJazro\n, a robotics education company that aims to develop digital talents in science, technology, engineering, and mathematics with specially curated content for students between the ages of five and 17.\n\n\n\n\nMadcash\n, a digital platform that tracks the impact of funding an interest-free microloan given to unbanked women micro-entrepreneurs.\n\n\n\n\nMidwest Composites\n, a designer and manufacturer of advanced and bio-based composites for clients that want to use futuristic materials in their products.\n\n\n\n\nNeptrix\n, a provider of enterprise resource planning tech to small and medium-sized businesses, helping them convert manufacturing into smart factories that are more productive and cost-efficient.\n\n\n\n\nOpenAcademy\n, an education platform that provides non-theory based programs, training, and content by industry practitioners.\n\n\n\n\nPantangPlus\n, a web-based booking platform for traditional post-natal therapy, serving pregnant mothers who are looking for therapists or confinement ladies.\n\n\n\n\nQ3 Payment\n, a platform that provides standardized connected payment solutions while working with preferred payment acquirers in the region.\n\n\n\n\nGraze Market\n, a social enterprise that aims to bridge the gap between food waste and hunger by ensuring imperfect fresh produce from farmers and distributors find a market at a discounted price to the public.\n\n\n\n\nSolaku\n, an online marketplace for deliveries, blue-collar services, and other offerings focusing on underserved towns in Malaysia.\n\n\n\n\nTraitily\n, a digital recruitment platform that leverages behavioral assessment for employers to filter a candidate\u2019s fit to the job function.\n\n\n\n\nVireServe\n, a cybersecurity and IT solutions provider that has developed a tool to help freelancers and consultants perform compliance consulting and act as lead generation to service providers including tech principles and system integrators.\n\n\n\n\nWa Sushi\n, a food and beverage ecommerce company that focuses on Japanese cuisine.\n\n"}
{"title": "Accelerating Asia picks 9 startups for fifth cohort", "body": "Accelerating Asia\n, a Singapore-based early-stage venture capital fund, has announced its fifth cohort of pre-series A startups and its first batch of investments from its \nUS$20 million Fund II\n.\n\n\nThe accelerator has shortlisted as many as nine startups across Bangladesh, Malaysia, the Philippines, Myanmar, Vietnam, and the US. The venture fund said that shortlisted startups had already increased their monthly recurring revenue by more than 40% to an average of US$20,000 per month since joining Accelerating Asia last month.\n\n\n\n\nPhoto credit: Accelerating Asia\n\n\n\n\nAccelerating Asia added that the fifth cohort was the most competitive to date as it saw 550 applications from 30 countries. The shortlisted startups, which operate across eight verticals, including fashion, ecommerce, agritech, fintech, ecommerce, healthtech, insurtech, and edtech, will join its \n100-day program\n.\n\n\nAmra Naidoo\n, co-founder and general partner of Accelerating Asia, said in a statement that the selected startups were likely to grow their revenue significantly over the next 12 months, as the accelerator\u2019s portfolio startups have typically seen their average monthly recurring revenue climb 180% to hit around US$55,000 after completing the program.\n\n\nHere are the startups that made it to Accelerating Asia\u2019s fifth cohort:\n\n\nChat Genie\n\nThe Philippines-based business-to-business (B2B) platform provides online stores for businesses on Facebook Messenger, Instagram, Viber, GCash, PayMaya, and other apps. It provides integrated online payment and automated delivery services to more than 2,000 merchants.\n\n\nDana Fintech\n\nThe Bangladesh-based fintech firm helps banks, financial institutions, and fintech firms offer digital lending and buy now, pay later facilities to underbanked small and medium-sized entrepreneurs and individuals through its credit-scoring engine, digital underwriting, and application programming interface platforms.\n\n\nThe startup has already raised US$200,000 in seed funding and has partnered with the likes of Ajkerdeal, iFarmer, and V-cube.\n\n\nEllegra\n\nThe Malaysian online personal styling platform for women has more than 25,000 users. It also has partnerships with brands, such as Dressing Paula, Mis Claire, Curve Cult, and Love Knot.\n\n\nGiftpack AI\n\nThe US-based startup provides AI-driven personalized gifting services at scale. Its AI analyses each recipient\u2019s social media, cultural background, and digital footprint to customize gift options. The startup already works with more than 800 corporate accounts and is also backed by 500 Startups (rebranded as 500 Global).\n\n\nMayani\n\nThe Philippines-based ecommerce platform focused on agriculture provides smallholder farmers with broader access to the market, while minimizing food loss through a digitized agricultural value chain.\n\n\nIt is also the first Filipino startup in the space that has received investment from Silicon Valley agritech venture firm, AgFunder.\n\n\nSohopathi\n\nThe Bangladesh-based edtech startup provides an online social platform for peer-to-peer learning. It has set up a community of 200,000 learners and educators.\n\n\nSupply Line\n\nAnother Bangladesh-based startup in the cohort, Supply Line provides digital B2B procurement and invoice financing solutions to local retailers by connecting them with lenders and distributors through a single platform.\n\n\nVIFO\n\nThe Vietnam-based startup aims to make insurance available to everyone by unifying insurers, agencies, customers, and customer services into a single software-as-a-service (SaaS) platform. Currently, more than 17 insurance companies and 1,600 products are listed on the VIFO platform.\n\n\nZ-Waka\n\nThe Myanmar-based SaaS platform aims to help doctors in developing countries efficiently manage clinics, collaborate with other healthcare professionals and pharmaceutical companies. The startup currently works with over 300 doctors and 70 pharmaceutical brands."}
{"title": "Are Malaysia\u2019s startup efforts finally paying off?", "body": "\u201cWhen is the best time to invest in a unicorn?\u201d Thomas Tsao, co-founder of Shanghai-based venture capital firm Gobi Partners, asks in an interview with \nTech in Asia\n. He answers his own question: \u201cfive years ago.\u201d\n\n\nThat\u2019s exactly how much time has passed since Gobi Partners invested in Malaysia-based used-car marketplace \nCarsome\u2019s series A fundraise\n.\n\n\n\n\nCEO and founder Eric Cheng (center) with the Carsome team. / Photo credit: Carsome\n\n\n\n\nAt the time, the country\u2019s tech startup ecosystem \nleft much to be desired\n: Among other issues, it was recovering from the loss of super app Grab, which had moved its headquarters to Singapore in 2014 after reportedly \nstruggling to raise funds in Malaysia\n.\n\n\nStill, Gobi Partners took a shot on the relatively young Carsome, and it paid off. In January 2021, the latter became Malaysia\u2019s \nfirst tech startup unicorn since Grab\n.\n\n\nThough the Malaysian government\u2019s efforts to spur the nation\u2019s startup ecosystem have copped criticism for bearing little fruit, Carsome\u2019s ascent to unicorn status may signal a new chapter for the Southeast Asian country. Still, its ecosystem may need even more changes to see sustained success.\n\n\nA gem that needs more polishing\n\n\nVictor Chua, managing partner of Vynn Capita and former Malaysia Venture Capital Management (MAVCAP) council member, calls Malaysia a country of \u201cundiscovered gems.\u201d\n\n\nThe country has talents who can run and scale businesses, advanced infrastructure on par with Singapore, and is \nthe world\u2019s leading Islamic economy\n, which gives it easier access to other high-growth markets such as Indonesia. The Islamic digital economy is one of the \u201cbiggest untapped opportunities in the world,\u201d Gobi Partners\u2019 Tsao says.\n\n\nThe Malaysian government has been pushing the startup agenda since the early 2000s when it set up MAVCAP, the country\u2019s largest venture capital fund, and Cradle Fund, a grant-giving agency focused on early-stage tech startups.\n\n\nLater, it set up MaGIC, the country\u2019s answer to Silicon Valley, and Malaysia Digital Economy Corporation (MDEC), a dedicated government body to lead its digital economy.\n\n\n\n\nThe Malaysian Global Innovation and Creativity Centre (MaGIC) / Photo credit: Jason Lee\n\n\n\n\nThese initiatives sound great on paper but could not keep Grab from moving its headquarters out of the country.\n\n\nExperts say \nMalaysian companies are leaving\n in search of greater market accessibility, a wider variety of funding options, and a high-quality talent pool.\n\n\n\u201cThe government has certainly contributed to building a more supportive Malaysian startup ecosystem. However, retaining the talent locally \u2013 that\u2019s the big question,\u201d Patrick Grove, co-founder and CEO of Catcha Group, tells \nTech in Asia\n. \u201cWe do not have the infrastructure yet to help startups scale rapidly.\u201d\n\n\nFunding gap no more?\n\n\nMalaysia initially struggled with funding \u2013 as many young ecosystems do \u2013 things have started to change. Even so, many of the country\u2019s corporations and high-net-worth individuals are still too risk-averse to play the startup game, Vynn Capital\u2019s Chua says.\n\n\nThe government has tried to address this issue by creating grants and governing bodies to stimulate the ecosystem. However, many have said these efforts have been overly convoluted and counterproductive.\n\n\nFor one thing, there are at least \n60 different government agencies\n involved in the space, with many having overlapping functions. Industry observers have even said they were unable to distinguish between the roles and functions of MDEC and MaGIC, for instance.\n\n\nAlso, some of the processes for getting grants are so long-drawn that it\u2019s \u201ceasier to take the private investment route, which also gives startups access to an international pool of knowledge and experience,\u201d says Grove.\n\n\nMalaysia\u2019s \npolitical climate\n has also been an area of concern as government initiatives change with each new administration.\n\n\nAt present, a razor-slim parliamentary majority has experts concerned about \u201cdownside risks to the economic outlook on fears that policy formulation and implementation are taking a backseat,\u201d as a \nCGS-CIMB note published in December 2020\n highlighted.\n\n\nThis is why some fear a lack of follow-through on \nPenjana Kapital\n, a 1.2 billion ringgit (US$289 million) fund-of-funds launched by the government in June 2020 and aimed at supporting the local startup scene by matching funds invested by multinational VCs.\n\n\n\n\nPhoto credit: Malaysia\u2019s Ministry of Finance\n\n\n\n\nThese concerns, nonetheless, may have been allayed to some extent when Penjana announced that it was \non track to exceed the fund\u2019s May 2021 target amount\n of 850 million ringgit (US$ 204.8 million) by 622 million ringgit (US$ 149.9 million), which would bring the total to 3.7x the original target.\n\n\nMeanwhile, at least one Penjana-backed fund has been \nlaunched\n, which could instil further confidence in spectators.\n\n\nIn recent years, the country has also seen investments from a \nUS$350 million vehicle\n established by state energy firm Petronas as well as a \nUS$60 million fund\n called Redbeat Ventures, run by AirAsia. The latter has since been \nrebranded as AirAsia Digital\n, to reflect a \nclearer distinction\n between the company\u2019s airline and digital businesses.\n\n\nBesides the lack of funding, Malaysia\u2019s market size \u2013 not too small, but not as big as some Southeast Asian economies \u2013 also puts it in the shadow of neighbors like Indonesia. Some investors prefer to put their money exclusively into large markets. Malaysia, therefore, is seen as more of an \nopportunistic investment market\n rather than an investor\u2019s first choice.\n\n\nFinally, Singapore\u2019s \nlower corporate tax rate\n and general ease of doing business continue to give the city-state an edge over Malaysia.\n\n\nReaping the fruits of the harvest\n\n\nWhile Malaysia\u2019s efforts are far from perfect, industry players contend that the country is shaping up for success.\n\n\nGovernment agencies have encouraged more corporations to invest in startups, according to Gobi Partners\u2019 Tsao. Support from MDEC and MaGIC have strengthened the case for investments by \nenabling Malaysian startups\n to \u201cbe competitive locally, then scale regionally.\u201d\n\n\nMAVCAP, under the leadership of former CEO Jamaludin Bujang\u2019s, brought international VCs like Gobi Partners and 500 Southeast Asia (formerly 500 Durians) to Malaysia\u2019s shores. \u201cThis provided linkages to North Asia and Silicon Valley, which played a small role in adding more energy and enthusiasm in connecting Malaysia to the North Asian ecosystems, and now global [ecosystems],\u201d Tsao says.\n\n\n\n\nGobi Partners co-founder Thomas Tsao / Photo credit: Gobi Partners\n\n\n\n\nGovernment grants and funding initiatives have also been instrumental in the journey of some of Malaysia\u2019s most successful startups today.\n\n\nIn 2012, Grab \u2013 called MyTeksi at the time \u2013 was a recipient of the government\u2019s Cradle Fund. That 150,000 ringgit (US$36,145) investment may not have been huge, but it did give the company a start. Meanwhile, Carsome has consistently benefited from MAVCAP funding.\n\n\nMAVCAP\u2019s investments via Gobi Partners came at a time when funding was scarce, according to Eric Cheng, CEO and co-founder of Carsome. In 2015, there were two prominent names \u2013 500 Southeast Asia and MAVCAP \u2013 that appeared \u201con the cap tables of most Malaysian startups,\u201d he says.\n\n\n\u201cWhen you look at it from a capital perspective, you need that to provide that flexibility to grow a business, test your model, expand to new models. They are probably the pioneers when it comes to Malaysian investors.\u201d\n\n\n500 Southeast Asia has \n43 Malaysian startups\n in its portfolio, while MAVCAP has invested in over 1,000 companies to date. The latter currently has 2 billion ringgit (US$482 million) in funds under its management.\n\n\nMAVCAP says 10% of startups in its portfolio typically \u201csurvive the valley of death.\u201d\n\n\n\u201cMy co-founder, Teo Jiun Ee, and I are both Malaysians. As such, it is natural for us to start out in Malaysia, where we are most familiar with the market,\u201d says Cheng. \u201cCarsome has done well in Malaysia as we have achieved profitability here. We plan on solving the pain points of the used-car industry. We believe that if it works for Malaysia, it will work for other countries.\u201d\n\n\nAll eyes on Malaysia\n\n\n\u201cEcosystems don\u2019t spring up overnight,\u201d Tsao says. \u201cA lot of the rise and fall of ecosystems has a lot to do with faith. That was what was missing in Malaysia. You need successes\u2014then people start believing.\u201d\n\n\nWith Carsome entering the unicorn club, all eyes are now on Malaysia. Catcha Group\u2019s Grove says that the used-car platform\u2019s success has given other local startups a boost, regionally and globally.\n\n\nThe bets for the next billion-dollar Malaysian startup include logistics platforms TheLorry and EasyParcel, and Aerodyne Group, a drone tech company that is reportedly raising a \nUS$100 million\n round at a valuation of US$1 billion.\n\n\nGiven the newfound momentum in the country\u2019s startup space, the Malaysian government has set its sights on creating 5,000 companies, including \nfive unicorns, by 2025\n.\n\n\n\n\nPhoto credit: \n123rf\n\n\n\n\nThat said, there\u2019s still a lot to be done if Malaysia wants to keep things ticking along. It has to synchronize agencies and initiatives to remove overlaps, cultivate talent and distribute experience in a structured manner, build more homegrown investors and VCs, and maintain open channels with entrepreneurs and other stakeholders, including regulators, central banks, and even academia.\n\n\nFor now, the country has carved its niche in Southeast Asia as a jumping-off point for regional startups, thanks to its strategic location, diverse market, a large English-speaking population, and cost-effective talent.\n\n\nCurrency converted from Malaysian ringgit to US dollar: US$1 = 4.35 ringgit."}
{"title": "Payments firm Omise enters Malaysia", "body": "Omise\n, a Thailand-based fintech startup, has officially expanded its payment gateway service to Malaysia.\n\n\n\n\nSynqa (parent company of Omise) CEO and founder Jun Hasegawa / Photo credit: Synqa\n\n\n\n\nFounded in 2013, Omise provides online payment solutions to merchants. Prior to Malaysia, the startup was already operating in Thailand, Japan, and Singapore.\n\n\nIn Malaysia, the company has been registered as a merchant acquirer in the country\u2019s central bank, Bank Negara Malaysia. It has also partnered with Maybank to use the bank\u2019s cash management solutions in the country.\n\n\nOmise\u2019s Malaysia operation will be led by \nIvy Lee\n, who previously held executive roles in CIMB, a multinational bank, and iPay88, another Malaysia-based payment gateway.\n\n\nThe company told \nTech in Asia\n that its priority is to bed down and support its local team in Malaysia. However, Omise is also considering expanding to other countries in Southeast Asia, such as Indonesia, Vietnam, and the Philippines.\n\n\nRead also: \nDemystifying Omise parent Synqa\u2019s plans to disrupt payment networks\n\n\nIn 2020, Omise\u2019s parent company Synqa \nraised US$80 million\n in a series C funding led by SCB 10X and Sparx Group. It has served 6,000 clients and has over 150 employees in total."}
{"title": "Grab Financial expands offerings to SMBs in ecommerce push", "body": "Grab Financial Group\n (GFG), the fintech arm of Singapore-based unicorn \nGrab\n, is expanding its suite of products to empower small and medium-sized businesses (SMBs) across Southeast Asia.\n\n\n\n\nUnder the \nGrow with Grab\n initiative, GFG rolled out GrabMerchant Commerce, a webstore builder platform. Since the pilot launch in May, over 500 merchants have signed up, with businesses in industries such as apparel, furniture, food and beverage, and artisanal products.\n\n\nThe company said that these merchants have averaged a 6x increase in sales from when they were onboarded on the platform, with 83% of them activating e-wallet GrabPay.\n\n\nGrabMerchant Commerce will be rolled out to Malaysia and the Philippines in 2022.\n\n\nGFG has also partnered with leading regional payment gateways such as 2C2P, AsiaPay, and Razer Merchant Services to accelerate the usage of GrabPay by SMBs. These partnerships will also enable PayLater \u2013 Grab\u2019s buy now, pay later product \u2013 in these payment gateways for their respective Southeast Asian merchant bases.\n\n\n\u201cWith PayLater, consumers can pay next month and earn GrabRewards, or pay in four interest-free instalments. Merchants find PayLater compelling given the scale of Grab\u2019s ecosystem with over 25 million monthly transacting users, and many of our PayLater merchants have reported increased basket sizes and check-out rates,\u201d said \nChris Yeo\n, managing director and head of GrabPay.\n\n\nThese initiatives will help the superapp tap the regional ecommerce market opportunity, which is expected to be valued at \nUS$172 billion\n by 2025.\n\n\nSee also:\n Why does the GrabPay-Stripe partnership matter?\n\n\nIn June, Grab also launched the Shopping icon on its app to facilitate merchant discovery by users across Southeast Asia. To purchase products, users are directed to the merchant\u2019s website to complete the transaction.\n\n\nAccording to Grab, one in five users tapped on the icon to explore merchants across categories such as fashion, beauty, electronics, and home and living. These users also accessed merchant offers available on the app.\n\n\n\u201cOur approach is to be an open ecosystem,\u201d said \nReuben Lai\n, senior managing director of GFG."}
{"title": "The roller-coaster years of Indonesian e-grocer HappyFresh", "body": "HappyFresh\n, an Indonesia-based online grocery platform, raised \nUS$65 million\n in July, exceeding its initial targets because of strong demand from new and existing investors.\n\n\n\n\nHappyFresh rider delivering goods / Photo credit: HappyFresh\n\n\n\n\nThe six-year-old startup has delivered groceries to hundreds of homes in Indonesia, Malaysia, and Thailand, with its delivery fleet traveling thousands of kilometers.\n\n\nHowever, CEO \nGuillem Segarra\n says HappyFresh is just getting started and probably scratching the surface on what\u2019s ahead.\n\n\nSpeaking at the 2021 \nTech in Asia \nConference, Segarra shares the fascinating roller-coaster ride of HappyFresh.\n\n\nThe not so happy times\n\n\nHappyFresh started operations in Indonesia and Malaysia in 2015. It went in an aggressive growth mode and rolled out in Thailand in the next six months, followed by operations in Taiwan and the Philippines.\n\n\nBut running a company is not like a sprint, but a marathon.\n\n\nWhile the company focused on topline and growth, it failed to look at the fundamentals. \u201cWe realized relatively early on that we stretched ourselves quite too thin,\u201d says Segarra, who previously worked for Lazada before joining HappyFresh in 2015.\n\n\n\n\nHappyFresh CEO Guillem Segarra / Photo credit: HappyFresh\n\n\n\n\nThe startup had to \ncut back in Taiwan and the Philippines\n to zoom in on its major markets in Indonesia, Malaysia, and Thailand.\n\n\nSee also: \nIndonesia e-grocery battle escalates as more players enter the fray\n\n\nThe years 2016 and 2017 were the most difficult for the company, as it went back to the drawing board and focused on unit economics, logistics, and new business units. These measures turned the tables for HappyFresh \u2013 from losing US$5 to US$10 per order, the company started seeing positive margins.\n\n\n\u201cFocusing on basics was not the most sexy thing to do, but it was necessary,\u201d recalls Segarra.\n\n\nBoth 2018 and 2019 were focused on marketing and building relationships with customers.\n\n\nWith 2020 came the pandemic, and it brought volatile traffic on the platform. This year, HappyFresh has been experiencing a 10x to 20x growth across the three countries it operates in as it sees a shift in customers\u2019 behavior toward online groceries.\n\n\nCustomer is king\n\n\nHappyFresh has been testing a network of micro fulfilment centers to make sure it has more control over inventory and its products are not out of order.\n\n\nThe company\u2019s customer insights team breaks down the feedback, which are then incorporated in the strategy and delivery verticals for better services.\n\n\n\n\nPhoto credit: HappyFresh\n\n\n\n\n\u201cOur biggest investment probably is really listening to the customer,\u201d says Segarra. This is evident from the fact that HappyFresh now has a repeat customer base of 90%.\n\n\nThe startup is on a mission to make lives convenient for customers. It promises to get fresh groceries delivered to the user\u2019s doorstep in an hour, something which was unheard of six years ago when HappyFresh was founded.\n\n\n\u201cWe believe that food is something that brings people and families together. Providing an experience [that is] convenient but also high quality is very important,\u201d says Segarra. The company\u2019s vision is to be in every single household of Southeast Asia, he adds.\n\n\nUpdate (Oct. 18, 11.45 a.m. SGT): This article was updated to include a statement that HappyFresh has been testing a network of micro fulfilment centers to make sure it has more control over inventory and its products are not out of order."}
{"title": "Teachmint partners with YC-backed Malaysian edtech firm to power live classes", "body": "Teachmint\n, an India-based education infrastructure provider and teaching platform, has partnered with Malaysia\u2019s \nPandai\n, a Y Combinator-backed edtech startup, for live classroom solutions in the Southeast Asian country.\n\n\n\n\nFrom left: Teachmint co-founders Payoj Jain, Divyansh Bordia, Anshuman Kumar, and Mihir Gupta / Photo credit: Teachmint\n\n\n\n\nTeachmint provides a video-as-a-service offering for edtech startups across the globe. Through its proprietary plug-and-play live class solutions, Teachmint reduces the go-to-market time for these edtech players.\n\n\nThe platform recently partnered with Dhaka-based startup \nShikho\n to power live classes for students in Bangladesh.\n\n\nTeachmint is also in talks with players in Indonesia and the Philippines for similar partnerships, \nMihir Gupta\n, the startup\u2019s CEO and co-founder, told \nTech in Asia\n. \u201cWe are also actively looking to acquire startups [that] support teacher and institute enablement in the next couple of months,\u201d he added.\n\n\nFounded in 2020, Teachmint is a mobile and video-first teaching platform that has so far enabled 1.5 million teachers in India to digitize their classrooms. Its proprietary video technology allows teachers to take live classes, record and store lectures, automate attendance, and conduct polls.\n\n\nSee also: \nIndonesian edtech\u2019s biggest challenges\n\n\nSo far, the startup has secured US$40 million in funding from investors such as Learn Capital, CM Ventures, Better Capital, and Lightspeed India Partners. It is in talks to raise a series B in a couple of months."}
{"title": "BukuWarung co-founders back Singapore live commerce software startup", "body": "Singapore-based \nUpmesh\n, which provides ecommerce software to merchants who make real-time sales on social media, has raised US$3 million in seed round funding.\n\n\n\n\nTeam Upmesh / Photo credit: Upmesh\n\n\n\n\nThe round was led by \nLeo Capital\n and saw participation from BukuWarung founders Chinmay Chauhan and Abhinay Pedisetty. GoTo Financial executive Jonathan Barki, Zopim co-founders Royston Tay and Kwok Yang Bin, Beenext, iSeed, and Prasetia Dwidharma Ventures also participated in the round.\n\n\nIncorporated last year, Upmesh helps sellers automate orders capturing and payment collection while selling physical goods on Facebook Live.\n\n\nThe platform will soon be rolling out for Instagram Live merchants, co-founder \nShawn Teow\n told \nTech in Asia.\n \u201cWe are also exploring other social media platforms like TikTok but those plans aren\u2019t firmed up yet,\u201d he added.\n\n\nThe Singapore startup currently processes almost US$40 million in annualized gross merchandise value and has onboarded nearly 300 merchants since its launch.\n\n\nThe platform captures comments on live content and tags them to the merchants\u2019 inventory items. It also automatically sends a checkout link to customers. Merchants see their average transaction values grow by over 40% after onboarding, the startup claims.\n\n\n\u201cEnabling ecommerce functionality in live commerce is just the first step. Moving forward, we are working to make Upmesh become the best place for communities around live selling to gather and share great products in a transparent format,\u201d said \nWong Zi Yang, co-founder and CEO of Upmesh.\n\n\nLive commerce \u2013 buying and selling goods in real time \u2013 has become popular in markets all over the world as consumers turn to social media to discover and purchase items. Top ecommerce players such as Shopee and Lazada are also tapping into the up-and-coming trend.\n\n\nSee also: \nHow Shopee can succeed in Poland, India\n\n\nAccording to a \nreport\n, users streamed ShopeeLive in Singapore and Malaysia for 3x longer between February and June 2020. In April 2020 alone, up to 4,500 Singapore merchants signed up to Lazada\u2019s LazLive, the report said."}
{"title": "Indian cloud kitchen startup hits unicorn status with $175m raise", "body": "Rebel Foods\n, an India-based cloud kitchen operator, has raised US$175 million in its latest round of funding at a valuation of US$1.4 billion.\n\n\nMore funding details\n\n\n\n\n\n\nLead investor\n: Qatar Investment Authority\n\n\n\n\nReturning investors:\n Coatue Management and Evolvence\n\n\n\n\nStage:\u00a0\nSeries F\n\n\n\n\nMore company updates\n\n\n\n\nRebel Foods will use the new funds to build the company\u2019s tech, expand its global operations, and acquire new brands.\n\n\nThe company is aiming to launch its initial public offering within the next 18 to 24 months.\n\n\nThe cloud kitchen operator said it is \u201csteadily\u201d moving toward profitability and has hit an annual run rate of US$150 million in terms of sales.\n\n\nRebel Foods has built over 45 brands across 10 countries \u2013 India, Indonesia, United Arab Emirates, the UK, Singapore, Malaysia, Thailand, Hong Kong, the Philippines, and Bangladesh. It also operates more than 4,000 \u201cinternet restaurants,\u201d which cater exclusively to delivery orders.\n\n\nThe startup works with restaurants such as Wendy\u2019s and operates its own brands including Faasos, Behrouz Biryani, Ovenstory, Mandarin Oak, The Good Bowl, and Sweet Truth.\n\n\nIn 2019, City Storage Systems, the real estate company of Uber co-founder and former CEO Travis Kalanick, \nreportedly\n bought a small stake in Rebel Foods as part of the cloud kitchen operator\u2019s US$125 million series D round.\n\n\n\n\nFor more coverage about the company, head \nhere\n. You can also click on the link below to view the company\u2019s key details and funding history."}