How long can Aerodyne stay Malaysia’s top dog in drone tech

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Hi readers,

Did you know a
hobbyist drone
 is cheaper than an
iPhone 13
 in Mayalsia? I had no clue until an acquaintance, who happens to be a drone tech geek, brought it up.

Of course, these drones capture visuals and aren’t like the souped-up ones firms use to tackle high risk or tricky jobs like asset inspection or last-mile medicine deliveries.

But capturing visuals is how Aerodyne, the world’s 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.

Kamarul 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’s national oil company.

The rest, as they say, is history.

But 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.

Larger 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.

Aside from entrepreneurial smarts, policy has also been key to the competitive landscape in Malaysia.

Both federal and state governments have opened up sites for drone players, including those based overseas such as Singapore’s Garuda Robotics, to test their solutions at the Medini drone test site, considered the largest in Southeast Asia.

Can policymakers keep up with demand? We also can’t dismiss privacy and security concerns. These tensions will continue to surface as Malaysia pushes the boundaries of drone tech.

For 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’s also not ruling out a dual listing on Bursa Malaysia.

But how long can it be Malaysia’s drone darling?

—
Emmanuel Samarathisa
, journalist at
Tech in Asia

Top stories this week

1.
Aerodyne: Can it remain Malaysia’s drone jewel?

The 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.

2.
Behind Bukalapak’s entry into Indonesia’s digital banking race

Allo Bank, which Bukalapak acquired in January 2022, is backed by a conglomerate with a strong retail presence.

3.
Carousell in talks for $150m acquisition of 99 Group

If the deal goes through, 99 Group’s valuation will be well above the US$83.6 million mark that it hit in 2020.

4.
Is Dubai stealing Singapore’s thunder in crypto?

Binance led the charge when it withdrew its application in the city-state in favor of Dubai. It appears that many are following suit.

5.
Nykaa’s financial health in 5 charts

We put our finger on the pulse of Nykaa, one of India’s few profitable tech startups.

6.
Will India’s 10-minute quick commerce model last?

The 10-minute delivery is taking India’s ecommerce industry by storm. But is the business model viable in the long term?

7.
The keys to J&T Express’ rapid global expansion

J&T Express made waves by capitalizing on its ties to Oppo and Shopee. But will that be enough to drive global expansion?

8.
This deck helped an HR tech firm net $5m from Sequoia, YC, others

Mesh helps employees manage goals, get timely feedback, and improve faster.

9.
A list of fundraising startups from Asia (Updated)

Fundraising is hard. To make things slightly easier, we’ve compiled this list of fundraising startups for our subscribers.

10.
Zimplistic flips to a profit in 2021 after troubles

After mounting losses and high cash burn led to Zimplistic’s sale over a year ago, the company has turned its financials around in 2021.


Fave names ex-Touch ‘n Go exec as chief product officer

Fave
, a Southeast Asian fintech platform, has appointed former Touch ‘n Go executive
Arvindd Selvaratnam
 as regional chief product officer.

Fave chief product officer Arvindd Selvaratnam / Photo credit: Fave

In his new role, Selvaratnam will oversee Fave’s roadmap for regional products and strategic planning, and make use of emerging opportunities for the firm in its next phase of growth.

He will also lead Fave’s product design and development efforts as part of its push toward the buy now, pay later sector.

Selvaratnam previously served as the product lead for Malaysia-based Touch ‘n Go, a provider of smart cards that are used as the sole electronic payment method by toll operators of the country’s expressways and highways.

“It 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,” said Selvaratnam.

See also:
Fave bounces back from Covid-19, cuts losses

The 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.

Fave plans to expand its product and engineering teams. It’s currently hiring for over 20 roles in its payment solutions division.


Surge pours $2m in first accelerator participant from MY

Iimmpact
, a Malaysian fintech startup, has scooped up US$2 million in seed money from Sequoia India’s Surge accelerator.

The Iimmpact team / Photo credit: Iimmpact

Established in 2017, Iimmpact’s platform helps businesses make payments available to over 170 billers. The
API
 solution has bill management features for recurring payments, among others.

“Companies 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,” the company wrote in a statement.

The startup said that its tech platform has processed over US$90 million in transaction value, helping its clients grow and maintain their customer base.

Iimmpact was founded by CEO
Alex Tan
 and chief technology officer
Kelvin Lee
. 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.

See also:
50 rising startups in Southeast Asia

The startup was recently part of the
sixth cohort
 of Surge, which was announced last month. Iimmpact was the first Malaysian firm to take part in the accelerator.


YC-backed 🇮🇳 fintech unicorn enters SEA

India-based fintech unicorn
Razorpay
 has acquired a majority stake in
Curlec
, a Malaysian fintech firm, paving the former’s way into Southeast Asia.

Razorpay team / Photo credit: Razorpay

The size of the deal was undisclosed. The acquisition also marks Razorpay’s first foray into an international market.

Founded 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.

The acquisition will help both companies build and scale seamless payment solutions for Malaysia’s businesses and enable global payments for Indian businesses, said Razorpay in a statement.

“For now, we will be focussing on building payment products for the Malaysian market and then explore other regions in Southeast Asia,”
Harshil Mathur
, CEO and co-founder of Razorpay, told
Tech in Asia.
 The company will slowly adapt and build products tailored to the region’s geography, he added.

See also:
Women-focused fintech firm eyes $5m series A funding

Razorpay 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
US$7.5 billion
.


KKR leads SG proptech unicorn’s $180m round

Livspace
, 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.

Photo credit: Livspace

Existing investors such as Ingka Investments, Jungle Ventures, Venturi Partners, and Peugeot Investments also took part in the fundraise.

Founded 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.

One of the firms’ offerings is Canvas, a
SaaS
 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.

SEA expansion on the cards in 2022

The 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.

“We are really excited about Australia, which is a large market with no competition, based on all the studies that we’ve done,” CEO
Anuj Srivastava
 told
Tech in Asia
. “Given 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.”

Photo credit: Livspace

The company said it has identified “significant” 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.

See also:
The Amazon of home decor eyes profits for SG unit after breaking even in India

Srivastava 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.

“The Southeast Asian market, including Singapore, is usually a US$15 billion to US$20 billion addressable market, which is almost as large as India,” he said.

The 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.

The 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’s operating partner in the region.


🇸🇬 Vegan ice cream firm scoops up $1.1m in fresh funds

Singapore-headquartered
Kind Kones
, 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.

The fundraise lifted Kind Kones’ valuation to S$10 million (US$7.4 million), the company told
Tech in Asia
.

Photo credit: Kind Kones

Other investors that took part in the round include Apricot Capital and Lam Soon, as well as Allianz Capital Partners managing director
Andress Goh
.

Founded in 2017 by
Ishpal Bajaj
 and
Serina Bajaj
, 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.

The ingredients it uses in its frozen tubs
include
 coconut, cashew, almond, and fruits. Kind Kones’ ice cream also comes in flourless, gluten-free cones.

The global vegan ice cream market is
expected
 to be valued at US$805.3 million by 2027, pushed by an increase in health awareness and a rise in consumers’ disposable incomes.

See also:
Korean food delivery major Woowa Brothers joins Shiok Meats bridge round

The latest investment will be used to transition the company’s 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.

Kind Kones will also use the funds for research and development of its product portfolio and scaling up its online presence.

Over 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.

It 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.

Kind Kones is also looking to expand its operations into Thailand early next year, followed by other Southeast Asian countries, including Indonesia.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.35.


Carsome names ex-AirAsia exec as chief marketing officer

Carsome
, a Malaysia-based automobile marketplace, has appointed ex-AirAsia executive
Ravi Shankar Mallavarapu
 to serve as its chief marketing officer (CMO).

Carsome chief marketing officer Ravi Shankar Mallavarapu / Photo credit: Carsome

Mallavarapu most recently served as AirAsia’s chief growth officer, helping build the low-cost airline’s in-house digital marketing and growth team.

In his new role, Mallavarapu will oversee the car ecommerce platform’s brand, marketing, digital, social media, public relations, growth, market research, and customer experience. The new CMO will also collaborate with Carsome’s chief brand officer, Derek Tan, on brand, creative, production, and sponsorships.

Mallavarapu 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. “We can move this online by establishing trust and the best customer experience at every touchpoint,” he added.

The appointment comes just weeks after Carsome raised
US$290 million
 in a new round that pushed its valuation to roughly US$1.7 billion.

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


🇲🇾 e-fulfillment startup eyes series C fundraise

IStore iSend, a Malaysian e-fulfillment startup, is in the process of raising its series C funding round. The company didn’t disclose how much it is looking to bring in but told
Tech in Asia
 that it expects to complete the round within the next 12 to 18 months.

iStore iSend co-founders (from left): Tommy Yong and Joe Khoo / Photo credit: iStore iSend

If successful, it will be the company’s second institutional round of funding – the first being its over
US$5.5 million
 series B round in January 2021. Six months later, it raised a
seven-digit US dollar sum
 from Kuroneko Innovation Fund as part of the same round.

In 2009,
Joe Koo
 and
Tommy Yong
 initially launched as 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.

Today, 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.

It 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.

The 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.

IStore 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.

Joe Khoo, co-founder and CEO of iStore iSend, told
Tech in Asia
 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.

The company is also looking to make a substantial investment in the Thai market, as it looks to penetrate deeper into the market.

“In 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,” said Khoo.

See also:
Series SEA: Who’s investing in the region’s logistics and transportation startups?

Currently, 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.


MyTukar to open 25 new showrooms in 🇲🇾

MyTukar
, a platform for buying and selling cars that is part of the
Carro Group
, 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.

Photo credit: MyTukar

The 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.

Derrick Eng
, CEO of MyTukar, said that the company’s 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.

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

These showrooms and centers will be set up in areas across Perak, Kedah, Sabah, Sarawak, Penang, the Klang Valley, Johor, and Seremban, among others.

“Through these expansions, we hope to establish MyTukar as a community brand, a platform that stimulates the growth of the used-car industry,” said Eng.


Fave co-founder joins 🇲🇾 perfume startup’s seed round

Scentses + Co
, a Malaysia-based perfume startup, has raised an undisclosed amount of seed funding from Fave co-founder
Yeoh Chen Chow
 as well as Malayan United Industries (MUI) Group through its venture arm Pan Malaysia Ventures.

Scentses + Co founders Sabreena Yeong (left) and Sadira Yeong / Photo credit: Scentses + Co

Founded by sisters
Sadira Yeong
 and
Sabreena Yeong
 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.

The 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.

On top of the funding round, Scentses + Co also collaborated with MUI’s portfolio in the retail and hotel sectors, which include Metrojaya and Corus Hotels. The collaboration is expected to boost the startup’s annualized monthly revenue to 10 million ringgit (around US$2.4 million).

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

The company plans to use the fresh funds for marketing purposes.

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.19 ringgit


Ex-JobStreet exec co-launches 1337 Ventures’ new fund

Malaysia-based
1337 Ventures
 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.

Former JobStreet COO Suresh Thiru / Photo credit: 1337 Ventures

The 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.

The 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’s portfolio of startups raise more capital for their seed rounds, if necessary.

“It’s 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,” said Bikesh Lakhmichand, CEO and founding partner of 1337 Ventures.

The 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
Alpha Startups Pre-Accelerator
 program.

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

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.19 ringgit.


Malaysian edtech startup banks $1m in seed money

Malaysia-based
GuruLab
, a platform that provides tutors with learning analytics tools, has raised US$1 million in a seed round joined by Wright Partners.

The GuruLab team / Photo credit: GuruLab

On 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
Eer Kai Song
 and
Vicky Tan
, who previously co-founded learning firms Veritas Academy and Co:Ed Learning.

Currently, 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.

“Many 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,” she added.

See Also:
Indonesia’s top edtech apps aren’t the usual suspects

GuruLab said it will use the new capital to strengthen its analytics platform and expand its offerings within Malaysia’s education system. It also looks to “aggressively” grow its education and tech teams and expand into other subjects and markets in the region.


🇲🇾 Content aggregator raises $1.4m in series A money

Malaysia-based
Newswav
, a content aggregation platform, has raised 6 million ringgit (US$1.4 million) in its series A round led by OSK Ventures International.

Newswav team / Photo credit: Newswav

Founded 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
The Sun Daily
,
SCMP
,
Malay Mail
, and
The Edge
, among others.

The content firm was founded by
Swee Wai Hoow,
 who also founded mobile commerce marketplace SnapSell, as well as
Yap Zhi Chau
, group executive chairman of YYC Advisors.

“The disruption happening in the news and media industry will accelerate for the rest of this decade,” said Ng Kay Yip, co-founder of JobStreet and an early investor in Newswav.

Currently, the company’s 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.

Newswav, which is backed by BFM Capital and YYC Ventures, will use the fresh funds to acquire more users, expand creators’ platforms, and scale up in-house adtech capabilities, among other things.

See also:
A list of fundraising startups from Asia (Updated)

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.18 ringgit.


Earned-wage access startup gets $5.3m seed funding

Paywatch
, 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
The Business Times
.

The fresh funds will be used to expand into new Southeast Asian markets such as Indonesia and the Philippines.

Paywatch 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.

See also:
Is earned-wage access Indonesia’s latest hot ticket?


JCB injects $5m in 🇲🇾 fintech firm in strategic partnership

Soft Space
, a Malaysian fintech firm, has inked a partnership with Japanese international payment brand
JCB
, a first of its kind in Malaysia.

JCB’s Yoshiki Kaneko (left) and Soft Space’s Joel Tay / Photo credit: JCB and Soft Space

The 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.

The tie-up would also see the two companies work together on business efforts capitalizing on Soft Space’s 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.

Other 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.

See also:
How Axiata’s Boost stands out in SEA’s heated fintech race

Soft Space is a
software point-of-sale
 company supporting over 30 financial institutions across 10 countries. The fintech firm was founded in 2012 by
Chang Chew Soon
, who stepped down as its group CEO in 2018. The company is now led by CEO
Joel Tay
.


C-suite changes on the cards at MDEC: sources

Two members of Malaysian Digital Economy Corporation’s (MDEC) C-suite have resigned or are serving their notice period after short stints at the agency, people familiar with the matter told
Tech in Asia
.

MDEC’s headquarters in Cyberjaya / Photo credit: MDEC

Aiza 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’s digitalization policies, until December 2021.

It is understood that chief financial officer Nora Junita Hussaini is serving her notice period.

Meanwhile, MDEC has brought in Ashran Ghazi, the former CEO of Malaysian Global Innovation & Creativity Centre, as a contract-for-service consultant.

An MDEC spokesperson declined to comment when
Tech in Asia
 asked about the resignations and Ashran’s appointment.

The 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.

Nora Junita, a chartered accountant, joined MDEC last year on January 21.

Both were hired under the agency’s then-CEO Surina Shukri and non-executive chairman Rais Hussin Mohamed Ariff.

Surina was succeeded by Mahadhir Aziz, who took over the reins as MDEC’s 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.

Md Alwi Che Ahmad took over from Rais as chairman, and his two-year tenure began on December 1.

Both 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’s ruling political party.

Established in 1996, MDEC is under the purview of the Communications and Multimedia Ministry.

MDEC is also governed by the Finance Ministry, which serves as the
golden shareholder
 that approves board appointments.


AirAsia gets license for drone pilot training in Malaysia

AirAsia
 got the green light from the Civil Aviation Authority of Malaysia to conduct remote drone pilot training at its academy in Kuala Lumpur.

Photo credit: AirAsia

The license will support the company’s aim of launching urban drone delivery for goods and retail items from AirAsia’s ecommerce platforms in the future, said Bo Lingam, CEO of AirAsia Aviation.

With the new license, the Drone Academy, which is under AirAsia’s digital edutech arm, AirAsia Academy, will offer commercial remote pilot training classes starting January 24. The academy will open with four classes – with more courses to come soon – and will be open to AirAsia employees and others.

The pilot training curriculum is also AirAsia’s bid to join a global drone delivery market that is estimated to grow to nearly
US$3.7 billion
 by 2027.

“Drone 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,” said Aireen Omar, president of AirAsia Group Digital.


🇲🇾 drone firm to take flight in Scandinavia through team up

Aerodyne
, 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.

Photo credit: Aerodyne

Established 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.

Kamarul Muhamed
, founder and group CEO of Aerodyne, said that the partnership would allow the company to tap into the Scandinavian region’s large renewable energy sector. In 2020, Denmark and Norway had a total renewable capacity of 9,677 megawatts and 37.2 terawatts, respectively.

“There 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,” he added.

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

The announcement follows Aerodyne’s similar
partnerships
 in Thailand with AI and Robotics Ventures, a subsidiary of petroleum major PTT Exploration and Production, and IT solutions firm Digital Creation.


Carsome races ahead with $290m funding

Update (January 10, 10:25 am): This article was updated to include details from a statement from Carsome.

Malaysian car marketplace
Carsome
 has raised US$290 million in a new round led by
65 Equity Partners
,
SeaTown Holdings
, and
Qatar Investment Authority
, said a
Bloomberg
 report, citing sources. The round pushes its valuation to roughly US$1.7 billion.

Carsome co-founder and group CEO Eric Cheng / Photo credit: Carsome

Both 65 Equity Partners and SeaTown Holdings are backed by Temasek Holdings. Mediatek, Sunway, Gokongwei Group, YTL Group, and Taiwan Mobile also joined the round.

Carsome is one of the largest online platforms for vehicle buyers and used car dealers. The company in September 2021 raised
US$170 million
 from Asia Partners, Gobi Partners, and 500 Southeast Asia, among other investors, bringing its valuation to US$1.3 billion.

It 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.

With a presence in the three mentioned countries and Singapore, the startup claims it sells nearly 100,000 vehicles annually. The tech unicorn is also evaluating a potential listing in the US in the later part of 2022, added the report.

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


Malaysian edtech firm bags $2m from YC, 500 Global

Pandai
, 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.

(From left) Pandai founders Mohd Suhaimi Ramly, Mohd Akmal Akhpah, and Khairul Anwar Mohamad Zaki / Photo credit: Pandai

Founded 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’s activities and let teachers tap into the firm’s question bank.

The company’s offering was launched amid the Covid-19 pandemic, which helped it onboard users quickly. The app now has over 30,000 monthly active users.

Pandai 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.

“We still want to improve the stickiness of our app and prolong the time that users spend in the app,”
Khairul Anwar Mohamad Zaki
, the company’s chief executive, told
Tech in Asia
.

To 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.

See also:
The key players in Southeast Asia’s growing edtech scene

Zaki founded Pandai along with his friends
Mohd Suhaimi Ramly
 and
Mohd Akmal Akhpah
. The three graduated from universities in the US and have run a traditional education business together since 2008, though the trio now focus their efforts on Pandai.

Before bagging its most recent investment, Pandai became the first Malaysian edtech startup that was accepted in the Y Combinator accelerator program.

The 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.

Other investors in this round include:

Soma Capital

Harvard Management Company

RHL Ventures

Falnas Capital

Kembara Kapital


AirAsia set to rebrand as Capital A

Malaysia-based
AirAsia
 is set to rebrand itself as Capital A, signaling the expansion of its services beyond its core airlines-to-cargo delivery and fintech services,
Nikkei
 reported.

The decision has been greenlit by the Companies Commission of Malaysia.

Over the past year, AirAsia has made significant leaps in realizing its super-app ambitions by unveiling
AirAsia Ride
, a ride-hailing service that will focus primarily on airport transportation for flight passengers.

The group also said it would launch its
food delivery service
 in Indonesia by early 2022 and has opened applications for potential partners in the country.

While 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.

Recently, AirAsia Digital scrapped its plans for a
US$10 million
 acquisition of Velox Fintech, a unit of Gojek Thailand. The Malaysia-based firm, however, completed the acquisition of another business under Gojek Thailand – Velox Technology – for US$40 million.

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


Malaysia gets $37.8m venture debt fund

Malaysia-based
Iris Capital Partners
 has launched Iris Fund, a 160 million Malaysian ringgit (US$37.8 million) fund co-managed with South Korea-based Hanwha Asset Management.

It is the first privately-led
venture debt
 fund in Malaysia, and it targets high-impact startups locally and across Southeast Asia.

Iris Fund chairman Wan Kamaruzaman Wan Ahmad / Photo credit: Iris Fund

“While the Iris Fund isn’t 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,” said
Wan Kamaruzaman Wan Ahmad
, chairman of the Iris Fund.

The fund has already joined foodtech firm Growthwell Group’s
US$22 million series A round
.

Iris Capital Partners was established in 2020 under the
Dana Penjana Nasional
 program of the Malaysian government’s
economic recovery agency
.


Malaysian fintech firm nets $7m to grow Shariah-compliant finance arm

CapBay
, a fintech startup based in Malaysia, has secured 30 million ringgit (US$7 million) from Kenanga Capital Islamic (KCI), a subsidiary of
Kenanga Investment Bank Berhad
 (KIBB).

CapBay co-founder Xing Xian Ang / Photo credit: CapBay

Through 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.

Last year, CapBay partnered with KIBB by acquiring a
49% stake
 in its subsidiary KCI to create Malaysia’s first fintech firm focused Islamic supply chain finance.

According to the
Association of Islamic Banking and Financial Institutions Malaysia
, half of Malaysia’s banking assets is expected to be Islamic by 2030 as the industry’s growth outpaces conventional banking.

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

“We noticed many of our clients seeking an Islamic alternative to our products, and we are catering to this growing demand,” said
Sri Mohd Mokhtar Mohd Shariff
, chairman of CapBay.

Currency converted from Malaysian ringgit to US dollars: US$1 = 4.22 ringgit.


SG insurtech firm teams up with Pine Labs in Malaysia

Igloo
, a Singapore-based insurtech firm,  announced that it has teamed up with Indian digital payments service provider
Pine Labs
 in Malaysia.

Photo credit: Pine Labs

Through 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.

Igloo’s Mobile Phone 360 and Phone Screen Protection products are available on Pine Labs’ platform. The protection covers repair services and replacement costs worth up to 100% of the gadget’s retail price.

Pine Labs currently has over 246,000 merchants in 3,700 cities and towns across India and Malaysia.

Igloo has also appointed insurance veteran
Amitabh Singh
 as country manager for Malaysia. Singh, whose nearly 20-year experience includes a stint at AIA Malaysia, will be at the helm of Igloo’s overall operations in the this market.

The company will also be hiring for key roles across sales and business development as well as operations and customer service in the country.

Igloo has established over 30 partnerships this year across diverse industries in Southeast Asia. In November, it
strengthened its tie-up with Vietnamese delivery firm AhaMove
 by introducing three new products.

During the same month, Igloo teamed up with direct-to-consumer
healthcare marketplace HD
 to provide health-related microinsurance products in Thailand via the HDmall platform.

In September, Igloo inked agreements with e-wallet platforms
GCash
 in the Philippines and
Dana
 in Indonesia to provide online shopping protection and phone screen protection, respectively.

In July, Igloo partnered with food delivery platform
Foodpanda Singapore
 to roll out insurance products for gig economy workers.


Grab to buy Malaysian grocery major

Southeast Asian super app
Grab
 has signed an agreement to acquire Jaya Grocer, a Malaysia-based online and offline grocery firm, for an undisclosed sum.

GrabSupermarket in Malaysia / Photo credit: Grab

The Singapore-headquartered tech giant has agreed to buy all the ordinary shares and 75% of the preference shares of Jaya Grocer, according to Grab’s filing on Nasdaq.

Grab also has the option to buy up the remaining 25% of the grocery firm’s 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’s regulations.

The 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.

See also:
Grab’s financial health in 8 charts

“Following closing, Jaya Grocer is expected to become a subsidiary of Grab Holdings and its financial results will be consolidated by Grab Holdings,” the filing read. The deal is projected to close in the first quarter of 2022.


Google Cloud names ex-Microsoft exec as country director of Singapore, Malaysia

Google Cloud has appointed
Sherie Ng
 as the country director of its business in Singapore and Malaysia.

Ng was previously Microsoft’s 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
Singlife Philippines
.

She will be reporting directly to
 Ruma Balasubramanian
, Google Cloud’s managing director for Southeast Asia. Ng also joins an all-female leadership team as she leads Google Cloud Platform and Google Workspace’s revenue, go-to-market strategy, and operations divisions.

See also:
Top 5 takeaways from Google Cloud Next

She brings 25 years of leadership experience in the tech space, having worked at Nice Systems, Invensis, Singtel, Comverse Technologies, CSG Systems, and Lucent Technologies.


Una Brands commits $23m to buy Malaysian ecommerce firms in 2022

Una Brands
, 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.

Una Brands co-founders / Photo credit: Una Brands

The company will be offering an upfront lump sum and a cut of the profits to these firms going forward, according to
 Kiren Tanna
, CEO and founder of Una Brands.

The
Thrasio
-style platform acquires companies that sell across several channels relevant to the Asia-Pacific market including Shopify, Shopee, Lazada, Tokopedia, and Amazon.

Una 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.

The 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.

Since launching earlier this year, Una Brands has raised
US$55 million
 from global investors including White Star Capital, Alpha JWC, and Ninja Van co-founder
Alvin Teo.

See also:
Roll-up ecommerce flexes its muscles in India

Una 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.


AC Ventures, East Ventures join $8.5m round of Malaysian F&B startup

Food Market Hub
, 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’s Penjana Kapital. East Ventures and Gojek’s VC arm Go-Ventures also participated in the round.

Adding to the
US$4 million series A round
 that the company announced in November last year, the total amount raised in this round reached US$12.5 million.

Food 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

Food 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.

The company was founded by
Anthony See
 and
Shayna Teh
 in 2017.

It 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.

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

Other investors in this round include:

SIG

500 Global

Velocity Ventures

Capital Code


High-speed internet startup to launch in 10 APAC markets

Transcelestial
, a last-mile internet distribution startup based in Singapore, said it has partnered with
Exclusive Networks, a
digital infrastructure distributor,
 to expand its operations
into

Australia,

New

Zealand,

Hong
Kong,

Macau,

India,

Indonesia,

Malaysia,
 the
Philippines,

Singapore,

Thailand,

and

Vietnam.

The Transcelestial team / Photo credit: Transcelestial

Under
the

partnership,

Exclusive

Networks

will

sell

Transcelestial’s

solutions

to
its

current

customer

base

of
 m
obile
 n
etwork
 o
perators
,
 i
nternet
 s
ervice
 p
roviders,
 and
 e
nterprises in all ten markets.

Founded in 2016, Transcelestial’s 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.

Charles
Han
, Transcelestial’s company’s newly appointed global channel strategy and program lead, and
Sunny Tham
, its global channel sales lead, will spearhead the company’s

expansion

plan
.

Han
 has
previously

held

senior

leadership

roles

at

VMware,
Cisco,

and

Citrix. Meanwhile

Tham

has over
20
years of experience in the Asia-Pacific point-to-point wireless connectivity market.

Exclusive Networks provides cloud and cybersecurity services. Its ‘local sale, global scale’ model serves clients with international reach via a single point of contact.

“Exclusive

Networks

is

putting

its

trust

and

weight

into

this

partnership

to

address

what
Covid-19

has

made

most

urgent

in

the

telecom

industry

–

an

accelerated

rollout

of

transformational
network

upgrades,” said Brad Gray, senior vice president of APAC at Exclusive Networks.
 “
We

see

a

distinct

and

timely

opportunity

here

for

first-movers

to

lead

the

charge
and

define

the

future

of
connectivity.”

See also:
IFast could be Singapore’s most underrated public internet company

Transcelestial

is

backed

by

investors including

Wavemaker

Partners,

EDBI,

Airbus

Ventures,

Kickstart

Ventures,

Cap

Vista,

Seeds

Capital
,

Entrepreneur

First,
Partech

Ventures,

500

Startups,

AirTree

Ventures,

Tekton

Ventures,
SGInnovate,

SparkLabs

Global

Ventures.
 Its investors also include
Michael

Siebel,
CEO

of

Y-Combinator and
 co-f
ounder

of

Twitch, among others.

Correction (November 25, 2:30p.m. SGT): The article has been corrected to reflect the exact tech that Transcelestial uses.


Malaysian VC firm to pump $38m in startups through 2 new funds

Malaysia Venture Capital Management Berhad
 (Mavcap), one of Malaysia’s largest VC firms, has agreed to set up two new funds with a collective size of 160 million ringgit (just above US$38 million).

Photo credit: Mavcap

The 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.

Besides 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.

“With 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,” said Asyrul Ramali, CEO of Ficus Group Capital (Mavcap’s partner for the fund).

The US$25 million Orbit Malaysia Fund I, which was
announced earlier this month
, will be managed by Jakarta-based Kejora Capital, with Sunway Group and Mavcap serving as anchor investors. The partnership follows Sunway Group and Mavcap’s collaboration on the Malaysia SuperSeed Fund II in 2019.


How Malaysia’s co-working spaces can become more than just ‘spaces’

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 – especially in Malaysia.

According to real estate consultancy firm Knight Frank Malaysia, the number of co-working spaces in the Klang Valley alone
has doubled
 from 2017, with 66 co-working operators across 160 spaces as of 2020.

Photo credit: Common Ground

It’s 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.

However, the pandemic has put operators in a precarious position, as movement restrictions and shifts toward more hybrid working arrangements mean that it won’t be enough for co-working spaces to just be physical offices.

“Co-working spaces cannot remain as purely property projects,” says Yong Kai Ping, CEO of the
Selangor Information Technology & Digital Economy Corporation (Sidec)
. “They need to offer a full package of ecosystem and community support [to attract startups].”

Many 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.

And for co-working spaces in Malaysia, they can also enhance their offerings through a program launched by the
Malaysia Digital Economy Corporation (MDEC)
: the
Malaysia Digital Hub (MDH)
 initiative.

Bringing together the elements for startup success

Launched 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.

While 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.

Sidec, for one, has been certified as an MDH, running a co-working space along with its flagship incubator program.
Forward School
, 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.

Participants at Sidec’s flagship accelerator program in 2019 / Photo credit: Sidec

“It 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,” shares Howie Chang, Forward School’s co-founder and CEO. For him, getting an MDH certification felt like a natural step, as MDEC’s goals for the program aligned with Forward School’s own ambitions to foster Malaysian startup talent.

This was the case as well for Kuala Lumpur-based co-working space
Common Ground
. According to co-founder Juhn Teo, the co-working space was already certified as an MDH when it opened its first location in 2017.

“We built Common Ground with a vision of a digitized, dynamic community,” shares Teo. “We 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 – through providing access, networks, and the right environment.”

As 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.

Being part of the ecosystem

Getting 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.

Photo credit: Forward School

MDEC 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.

For example, MDHs are a key part of the appeal behind MDEC’s
Malaysia Tech Entrepreneur Programme (MTEP)
, which seeks to attract foreign tech talent and aspiring entrepreneurs to come to Malaysia.

When 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.

“What we offer to these foreign startups [and entrepreneurs] is fast access and quick connections to the local business community,” says Teo. “Once 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.”

Getting bigger and better

Being 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.

“[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,” says Chang.

Photo credit: Common Ground

For 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.

And it’s 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.

Teo shares the example of
OoGyaa
, an e-scooter startup that operates out of one of Common Ground’s 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’s connections with tech partners, established via MDEC, to set up its payment processes efficiently and affordably.

More than just spaces

As MDEC
doubles down
 on its ecosystem of support for startups in Malaysia, MDHs will continue to play a key role in driving the industry’s growth.

Currently, 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’s 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.

“What the pandemic has made abundantly clear is that the needs of the ecosystem continue to shift, and agility is key to success,” shares Ganesalingam. “MDEC’s 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 – a holistic solution to grow and catalyze our ecosystem.”

Aside from bringing together the ingredients that will help a startup succeed into one location, MDHs also help build up and strengthen Malaysia’s startup community. They bring together like-minded individuals to spark new conversations and new ideas – and a new generation of Malaysian startups that can compete on the global stage.

MDEC is an agency under the Malaysian administration that aims to lead Malaysia’s 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.

Learn more about Malaysia Digital Hubs
here
.

This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community.
Learn more
 about partnering with Tech in Asia Studios.


ScaleUp Malaysia unveils 20 startups in third cohort

ScaleUp Malaysia
, an accelerator focused on growth-stage firms, has selected 20 startups for its fourth cohort.

Photo credit: ScaleUp Malaysia

The selected companies hail from verticals including edtech, fintech, media, manufacturing, cybersecurity, foodtech, and ecommerce.

Launched 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.

Venture capital firms Quest Ventures from Singapore and Indelible Ventures from the US have joined the cohort to support shortlisted scale-up companies.

The 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.

Meanwhile, Midwest Composites, Howuku, Q3 Payment, GoCloud, and Neptrix have been selected for the Indelible Ventures track.

Here are the startups:

SpareXHub
, an ecommerce marketplace for auto spare parts that brings together automotive distributors, independent workshops, and car owners.

Biztech.asia
, 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.

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

Hav.life
, a platform that provides rewards for fitness goals.

Howuku
, 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.

Aoikumo
, a software-as-a-service provider for the beauty and medical aesthetics industries.

Nanka
, a food startup that produces plant-based meat from jackfruit to provide a better alternative to highly processed fast-food dishes.

J8 Autism Athletics
, 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.

Jazro
, 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.

Madcash
, a digital platform that tracks the impact of funding an interest-free microloan given to unbanked women micro-entrepreneurs.

Midwest Composites
, a designer and manufacturer of advanced and bio-based composites for clients that want to use futuristic materials in their products.

Neptrix
, 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.

OpenAcademy
, an education platform that provides non-theory based programs, training, and content by industry practitioners.

PantangPlus
, a web-based booking platform for traditional post-natal therapy, serving pregnant mothers who are looking for therapists or confinement ladies.

Q3 Payment
, a platform that provides standardized connected payment solutions while working with preferred payment acquirers in the region.

Graze Market
, 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.

Solaku
, an online marketplace for deliveries, blue-collar services, and other offerings focusing on underserved towns in Malaysia.

Traitily
, a digital recruitment platform that leverages behavioral assessment for employers to filter a candidate’s fit to the job function.

VireServe
, 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.

Wa Sushi
, a food and beverage ecommerce company that focuses on Japanese cuisine.


Accelerating Asia picks 9 startups for fifth cohort

Accelerating Asia
, 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
US$20 million Fund II
.

The 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.

Photo credit: Accelerating Asia

Accelerating 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
100-day program
.

Amra Naidoo
, 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’s portfolio startups have typically seen their average monthly recurring revenue climb 180% to hit around US$55,000 after completing the program.

Here are the startups that made it to Accelerating Asia’s fifth cohort:

Chat Genie

The 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.

Dana Fintech

The 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.

The startup has already raised US$200,000 in seed funding and has partnered with the likes of Ajkerdeal, iFarmer, and V-cube.

Ellegra

The 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.

Giftpack AI

The US-based startup provides AI-driven personalized gifting services at scale. Its AI analyses each recipient’s 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).

Mayani

The 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.

It is also the first Filipino startup in the space that has received investment from Silicon Valley agritech venture firm, AgFunder.

Sohopathi

The 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.

Supply Line

Another 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.

VIFO

The 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.

Z-Waka

The 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.


Are Malaysia’s startup efforts finally paying off?

“When is the best time to invest in a unicorn?” Thomas Tsao, co-founder of Shanghai-based venture capital firm Gobi Partners, asks in an interview with
Tech in Asia
. He answers his own question: “five years ago.”

That’s exactly how much time has passed since Gobi Partners invested in Malaysia-based used-car marketplace
Carsome’s series A fundraise
.

CEO and founder Eric Cheng (center) with the Carsome team. / Photo credit: Carsome

At the time, the country’s tech startup ecosystem
left much to be desired
: Among other issues, it was recovering from the loss of super app Grab, which had moved its headquarters to Singapore in 2014 after reportedly
struggling to raise funds in Malaysia
.

Still, Gobi Partners took a shot on the relatively young Carsome, and it paid off. In January 2021, the latter became Malaysia’s
first tech startup unicorn since Grab
.

Though the Malaysian government’s efforts to spur the nation’s startup ecosystem have copped criticism for bearing little fruit, Carsome’s 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.

A gem that needs more polishing

Victor Chua, managing partner of Vynn Capita and former Malaysia Venture Capital Management (MAVCAP) council member, calls Malaysia a country of “undiscovered gems.”

The country has talents who can run and scale businesses, advanced infrastructure on par with Singapore, and is
the world’s leading Islamic economy
, which gives it easier access to other high-growth markets such as Indonesia. The Islamic digital economy is one of the “biggest untapped opportunities in the world,” Gobi Partners’ Tsao says.

The Malaysian government has been pushing the startup agenda since the early 2000s when it set up MAVCAP, the country’s largest venture capital fund, and Cradle Fund, a grant-giving agency focused on early-stage tech startups.

Later, it set up MaGIC, the country’s answer to Silicon Valley, and Malaysia Digital Economy Corporation (MDEC), a dedicated government body to lead its digital economy.

The Malaysian Global Innovation and Creativity Centre (MaGIC) / Photo credit: Jason Lee

These initiatives sound great on paper but could not keep Grab from moving its headquarters out of the country.

Experts say
Malaysian companies are leaving
 in search of greater market accessibility, a wider variety of funding options, and a high-quality talent pool.

“The government has certainly contributed to building a more supportive Malaysian startup ecosystem. However, retaining the talent locally – that’s the big question,” Patrick Grove, co-founder and CEO of Catcha Group, tells
Tech in Asia
. “We do not have the infrastructure yet to help startups scale rapidly.”

Funding gap no more?

Malaysia initially struggled with funding – as many young ecosystems do – things have started to change. Even so, many of the country’s corporations and high-net-worth individuals are still too risk-averse to play the startup game, Vynn Capital’s Chua says.

The 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.

For one thing, there are at least
60 different government agencies
 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.

Also, some of the processes for getting grants are so long-drawn that it’s “easier to take the private investment route, which also gives startups access to an international pool of knowledge and experience,” says Grove.

Malaysia’s
political climate
 has also been an area of concern as government initiatives change with each new administration.

At present, a razor-slim parliamentary majority has experts concerned about “downside risks to the economic outlook on fears that policy formulation and implementation are taking a backseat,” as a
CGS-CIMB note published in December 2020
 highlighted.

This is why some fear a lack of follow-through on
Penjana Kapital
, 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.

Photo credit: Malaysia’s Ministry of Finance

These concerns, nonetheless, may have been allayed to some extent when Penjana announced that it was
on track to exceed the fund’s May 2021 target amount
 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.

Meanwhile, at least one Penjana-backed fund has been
launched
, which could instil further confidence in spectators.

In recent years, the country has also seen investments from a
US$350 million vehicle
 established by state energy firm Petronas as well as a
US$60 million fund
 called Redbeat Ventures, run by AirAsia. The latter has since been
rebranded as AirAsia Digital
, to reflect a
clearer distinction
 between the company’s airline and digital businesses.

Besides the lack of funding, Malaysia’s market size – not too small, but not as big as some Southeast Asian economies – 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
opportunistic investment market
 rather than an investor’s first choice.

Finally, Singapore’s
lower corporate tax rate
 and general ease of doing business continue to give the city-state an edge over Malaysia.

Reaping the fruits of the harvest

While Malaysia’s efforts are far from perfect, industry players contend that the country is shaping up for success.

Government agencies have encouraged more corporations to invest in startups, according to Gobi Partners’ Tsao. Support from MDEC and MaGIC have strengthened the case for investments by
enabling Malaysian startups
 to “be competitive locally, then scale regionally.”

MAVCAP, under the leadership of former CEO Jamaludin Bujang’s, brought international VCs like Gobi Partners and 500 Southeast Asia (formerly 500 Durians) to Malaysia’s shores. “This 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],” Tsao says.

Gobi Partners co-founder Thomas Tsao / Photo credit: Gobi Partners

Government grants and funding initiatives have also been instrumental in the journey of some of Malaysia’s most successful startups today.

In 2012, Grab – called MyTeksi at the time – was a recipient of the government’s 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.

MAVCAP’s 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 – 500 Southeast Asia and MAVCAP – that appeared “on the cap tables of most Malaysian startups,” he says.

“When 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.”

500 Southeast Asia has
43 Malaysian startups
 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.

MAVCAP says 10% of startups in its portfolio typically “survive the valley of death.”

“My 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,” says Cheng. “Carsome 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.”

All eyes on Malaysia

“Ecosystems don’t spring up overnight,” Tsao says. “A 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—then people start believing.”

With Carsome entering the unicorn club, all eyes are now on Malaysia. Catcha Group’s Grove says that the used-car platform’s success has given other local startups a boost, regionally and globally.

The 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
US$100 million
 round at a valuation of US$1 billion.

Given the newfound momentum in the country’s startup space, the Malaysian government has set its sights on creating 5,000 companies, including
five unicorns, by 2025
.

Photo credit:
123rf

That said, there’s 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.

For 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.

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.35 ringgit.


Payments firm Omise enters Malaysia

Omise
, a Thailand-based fintech startup, has officially expanded its payment gateway service to Malaysia.

Synqa (parent company of Omise) CEO and founder Jun Hasegawa / Photo credit: Synqa

Founded in 2013, Omise provides online payment solutions to merchants. Prior to Malaysia, the startup was already operating in Thailand, Japan, and Singapore.

In Malaysia, the company has been registered as a merchant acquirer in the country’s central bank, Bank Negara Malaysia. It has also partnered with Maybank to use the bank’s cash management solutions in the country.

Omise’s Malaysia operation will be led by
Ivy Lee
, who previously held executive roles in CIMB, a multinational bank, and iPay88, another Malaysia-based payment gateway.

The company told
Tech in Asia
 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.

Read also:
Demystifying Omise parent Synqa’s plans to disrupt payment networks

In 2020, Omise’s parent company Synqa
raised US$80 million
 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.


Grab Financial expands offerings to SMBs in ecommerce push

Grab Financial Group
 (GFG), the fintech arm of Singapore-based unicorn
Grab
, is expanding its suite of products to empower small and medium-sized businesses (SMBs) across Southeast Asia.

Under the
Grow with Grab
 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.

The 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.

GrabMerchant Commerce will be rolled out to Malaysia and the Philippines in 2022.

GFG 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 – Grab’s buy now, pay later product – in these payment gateways for their respective Southeast Asian merchant bases.

“With 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’s ecosystem with over 25 million monthly transacting users, and many of our PayLater merchants have reported increased basket sizes and check-out rates,” said
Chris Yeo
, managing director and head of GrabPay.

These initiatives will help the superapp tap the regional ecommerce market opportunity, which is expected to be valued at
US$172 billion
 by 2025.

See also:
 Why does the GrabPay-Stripe partnership matter?

In 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’s website to complete the transaction.

According 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.

“Our approach is to be an open ecosystem,” said
Reuben Lai
, senior managing director of GFG.


The roller-coaster years of Indonesian e-grocer HappyFresh

HappyFresh
, an Indonesia-based online grocery platform, raised
US$65 million
 in July, exceeding its initial targets because of strong demand from new and existing investors.

HappyFresh rider delivering goods / Photo credit: HappyFresh

The six-year-old startup has delivered groceries to hundreds of homes in Indonesia, Malaysia, and Thailand, with its delivery fleet traveling thousands of kilometers.

However, CEO
Guillem Segarra
 says HappyFresh is just getting started and probably scratching the surface on what’s ahead.

Speaking at the 2021
Tech in Asia
Conference, Segarra shares the fascinating roller-coaster ride of HappyFresh.

The not so happy times

HappyFresh 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.

But running a company is not like a sprint, but a marathon.

While the company focused on topline and growth, it failed to look at the fundamentals. “We realized relatively early on that we stretched ourselves quite too thin,” says Segarra, who previously worked for Lazada before joining HappyFresh in 2015.

HappyFresh CEO Guillem Segarra / Photo credit: HappyFresh

The startup had to
cut back in Taiwan and the Philippines
 to zoom in on its major markets in Indonesia, Malaysia, and Thailand.

See also:
Indonesia e-grocery battle escalates as more players enter the fray

The 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 – from losing US$5 to US$10 per order, the company started seeing positive margins.

“Focusing on basics was not the most sexy thing to do, but it was necessary,” recalls Segarra.

Both 2018 and 2019 were focused on marketing and building relationships with customers.

With 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’ behavior toward online groceries.

Customer is king

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.

The company’s customer insights team breaks down the feedback, which are then incorporated in the strategy and delivery verticals for better services.

Photo credit: HappyFresh

“Our biggest investment probably is really listening to the customer,” says Segarra. This is evident from the fact that HappyFresh now has a repeat customer base of 90%.

The startup is on a mission to make lives convenient for customers. It promises to get fresh groceries delivered to the user’s doorstep in an hour, something which was unheard of six years ago when HappyFresh was founded.

“We believe that food is something that brings people and families together. Providing an experience [that is] convenient but also high quality is very important,” says Segarra. The company’s vision is to be in every single household of Southeast Asia, he adds.

Update (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.


Teachmint partners with YC-backed Malaysian edtech firm to power live classes

Teachmint
, an India-based education infrastructure provider and teaching platform, has partnered with Malaysia’s
Pandai
, a Y Combinator-backed edtech startup, for live classroom solutions in the Southeast Asian country.

From left: Teachmint co-founders Payoj Jain, Divyansh Bordia, Anshuman Kumar, and Mihir Gupta / Photo credit: Teachmint

Teachmint 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.

The platform recently partnered with Dhaka-based startup
Shikho
 to power live classes for students in Bangladesh.

Teachmint is also in talks with players in Indonesia and the Philippines for similar partnerships,
Mihir Gupta
, the startup’s CEO and co-founder, told
Tech in Asia
. “We are also actively looking to acquire startups [that] support teacher and institute enablement in the next couple of months,” he added.

Founded 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.

See also:
Indonesian edtech’s biggest challenges

So 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.


BukuWarung co-founders back Singapore live commerce software startup

Singapore-based
Upmesh
, which provides ecommerce software to merchants who make real-time sales on social media, has raised US$3 million in seed round funding.

Team Upmesh / Photo credit: Upmesh

The round was led by
Leo Capital
 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.

Incorporated last year, Upmesh helps sellers automate orders capturing and payment collection while selling physical goods on Facebook Live.

The platform will soon be rolling out for Instagram Live merchants, co-founder
Shawn Teow
 told
Tech in Asia.
 “We are also exploring other social media platforms like TikTok but those plans aren’t firmed up yet,” he added.

The Singapore startup currently processes almost US$40 million in annualized gross merchandise value and has onboarded nearly 300 merchants since its launch.

The platform captures comments on live content and tags them to the merchants’ 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.

“Enabling 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,” said
Wong Zi Yang, co-founder and CEO of Upmesh.

Live commerce – buying and selling goods in real time – 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.

See also:
How Shopee can succeed in Poland, India

According to a
report
, 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’s LazLive, the report said.


Indian cloud kitchen startup hits unicorn status with $175m raise

Rebel Foods
, 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.

More funding details

Lead investor
: Qatar Investment Authority

Returning investors:
 Coatue Management and Evolvence

Stage:
Series F

More company updates

Rebel Foods will use the new funds to build the company’s tech, expand its global operations, and acquire new brands.

The company is aiming to launch its initial public offering within the next 18 to 24 months.

The cloud kitchen operator said it is “steadily” moving toward profitability and has hit an annual run rate of US$150 million in terms of sales.

Rebel Foods has built over 45 brands across 10 countries – India, Indonesia, United Arab Emirates, the UK, Singapore, Malaysia, Thailand, Hong Kong, the Philippines, and Bangladesh. It also operates more than 4,000 “internet restaurants,” which cater exclusively to delivery orders.

The startup works with restaurants such as Wendy’s and operates its own brands including Faasos, Behrouz Biryani, Ovenstory, Mandarin Oak, The Good Bowl, and Sweet Truth.

In 2019, City Storage Systems, the real estate company of Uber co-founder and former CEO Travis Kalanick,
reportedly
 bought a small stake in Rebel Foods as part of the cloud kitchen operator’s US$125 million series D round.

For more coverage about the company, head
here
. You can also click on the link below to view the company’s key details and funding history.