Quantcast
Channel: Tech in Asia
Viewing all 6222 articles
Browse latest View live

Asia tech news roundup – Nov 8

$
0
0
Hong Kong Island

Photo credit: leungchopan / 123RF.

The Fragrant Harbor dominated tech business news today, with big investments for local startups WeLab and BottlesXO, and a seemingly momentous IPO for ebook company China Literature.

Fintech

WeLab scores US$220 million funding (Hong Kong). The online lender will use the money to accelerate its expansion beyond China. Alibaba led the round.  (Tech in Asia)

Enterprise services

Goldman Sachs makes US$17.6 million investment in Sansan (Japan). The US firm indicated that it expects the Japanese startup – which digitizes business cards to form a professional social network – to IPO in the near future. Goldman is committing a total of US$876 million to Japan-related investments over the next couple of years. (Nikkei Asian Review)

Photo credit: sjenner13 / 123RF.

Artificial intelligence

Yixue raises US$41 million in seed round (China). Susquehanna International Group and Nokia Growth Partners are among those that have invested in the startup, which uses AI to provide tailored educational programs for individual students. (China Money Network)

Appier expands executive team (Taiwan). The company – which uses AI to help brands formulate and tailor their marketing campaigns – has appointed former App Annie managing director Junde Yu as its chief new business officer. Charles Ng, formerly chief data scientist at Coupang, will become Appier’s vice president of enterprise AI. (Appier)

Appier team

Appier’s team in Taipei. Photo credit: Appier.

Life sciences

Sequoia backs oncology startup EOC Pharma (China). The firm joined EOC’s US$32 million series B round, which was led by Taikang Investment. EOC in-licenses cancer treatment and diagnostic technologies and commercializes them for the Chinese market. (China Money Network)

Ecommerce

BottlesXO gets US$3.4 million in pre-series A funding (Hong Kong). The booze-on-demand app has raised funds from an undisclosed Singapore private equity firm. It delivers beer, wine, and spirits to thirsty residents of Hong Kong, Shanghai, Suzhou, and Singapore. (BottlesXO)

JD signs on for US-made products worth US$2 billion (China). The ecommerce giant has committed itself to purchasing US goods worth US$2 billion – including US$1.2 billion of US-reared beef and pork –  over the next three years to sell on its online marketplaces. (Bloomberg)

Internet

Copyright: <a href='https://www.123rf.com/profile_tzido'>tzido / 123RF Stock Photo</a>

Photo credit: tzido / 123RF.

Tencent spin-off’s shares gain over 80 percent on Hong Kong debut (China/Hong Kong). Tencent’s ebook unit China Literature made a splash when it listed on the Hong Kong stock exchange today. Shares in the company doubled in value from their HK$55 (US$7.05) asking price in early trading and finished at HK$102.40 (US$13.13) apiece, gaining 86.2 percent for the day. The seemingly impressive debut suggests that Hong Kong can still compete with New York’s exchanges in attracting big tech IPOs. (Reuters)

This post Asia tech news roundup – Nov 8 appeared first on Tech in Asia.


Brief: Tencent pays around $2b for stake in struggling Snapchat

$
0
0
WeChat, Snapchat, Tencent, Snap

Image credit: Tech in Asia.

The news (extracted from CNBC):

  • Snapchat, the messaging app struggling to lure in new users as its features get copied by Facebook, has received a vote of confidence from Chinese tech giant Tencent.
  • Tencent, maker of WeChat, has acquired a 10 percent stake in Snapchat parent Snap, according to a filing with the US Securities and Exchange Commission.
  • Tencent purchased 145.8 million non-voting shares on the open market over the last quarter. At an average US$14.50 per share over that period, Tencent paid an estimated US$2.1 billion.

Why it matters:

  • Snap has an office in Shenzhen, China, focused on hardware development. That’s also Tencent’s hometown.
  • This isn’t the first investment. Tencent made an undisclosed injection into Snapchat back in 2013.
  • “We have long been inspired by the creativity and entrepreneurial spirit of Tencent and we are grateful to continue our longstanding and productive relationship that began over four years ago,” said Snap in its filing. “For its part, Martin Lau, Tencent’s president, informed us that Tencent is excited to deepen its shareholding relationship with us, and that it looks forward to sharing ideas and experiences.”
  • The renewed partnership between Tencent and Snapchat suggests possible collaboration for both messaging apps.

Updated 16 hours after publishing: Tencent has been a bit more specific, saying it could work with Snap to publish games and improve ad sales – specifically to create “newsfeed ads” within Snapchat, reports Reuters. Snapchat does not have a newsfeed, suggesting the millennial-oriented messaging app could become more like Facebook – or like the Moments stream inside Tencent’s WeChat.

This post Brief: Tencent pays around $2b for stake in struggling Snapchat appeared first on Tech in Asia.

Vehicle wrap ads startup StickEarn raises $1m seed funding

$
0
0

A wrap ad for Tokopedia provided by StickEarn. Photo credit: StickEarn.

Indonesia’s StickEarn has secured US$1 million in seed funding from East Ventures, the VC firm told Tech in Asia.

The vehicle advertising startup acts as an intermediary between advertisers and car owners, who are paid by StickEarn to place ads on their cars and then drive around targeted areas to capture the public’s attention.

These ads typically take the form of adhesive “wrap advertising” that can be stuck onto the windscreens and windows of cars and other vehicles so as to be visible to people outside.

This form of out-of-home advertising has become a fairly common sight in many cities, with US startup Wrapify as one of the most well-known players in this space.

But StickEarn’s co-founders realised this was almost non-existent in Jakarta, which has one of the world’s highest volumes of traffic. People in the capital city spend an average of two hours each day on the road sitting in cars, or on scooters and motorbikes.

StickEarn co-founders: Archie Carlson (L), Sugito Alim (LM), Hartanto Alim (RM), and Garry Limanata (R). Photo credit: StickEarn.

Apart from recognizing the significance of this opportunity, StickEarn has also leveraged technology to allow advertisers to launch, track, and analyze their vehicle-based campaigns through its mobile app. Drivers can use the platform as well to keep them informed about where and how long they should be driving to fulfill their clients’ requirements.

We want to provide our clients access to a more effective and measurable advertising platform,” said co-founder Sugito Alim in a statement. “Secondly, StickEarn aims to empower our [driver] partners by providing them with additional income.”

The startup launched in January this year. As of this month, it is operating in 14 cities across Indonesia. It has worked with 50 companies, and tens of thousands of drivers have signed on as partners, said co-founder Archie Carlson.

Other companies in Jakarta that offer similar app-based vehicle advertising services include Ubiklan and Karta.

This post Vehicle wrap ads startup StickEarn raises $1m seed funding appeared first on Tech in Asia.

Hinglish alone won’t do. Any business targeting India must crack these languages.

$
0
0

Photo credit: Klozest.

If you’re in India, you are likely to get an overdose of the word “only.” It pops up everywhere, as in “I’m here only.” There are other Indianisms, “like this only.” Visitors to India can find it quaint or exasperating, depending on the situation. If you’ve had enough of this already, you can try a reverse Indianism too – “Don’t eat my head.”

The problem of deciphering Indian English isn’t confined to visitors. In the digital world, machines have to deal with it as well. Amazon’s Alexa speaker, for example, has started shipping to India only now, two years after its release. One reason for holding it back is to give time to linguists and developers to get the Alexa virtual assistant up to speed with Hinglish – a blend of Hindi and English, spoken with a distinct Indian accent.

9 out of every 10 new internet users in India over the next five years are likely to be Indian language users.

Now the Alexa speaker can handle requests like, “Please add jeera, atta, and haldi to my shopping list.” The English words for those are cumin, wheat flour, and turmeric, but few Indians use them in conversation. “Alexa is not a visiting American, she has a very Indian personality,” says Parag Gupta, head of product management for Amazon Devices India.

Amazon is not the only one learning Hinglish. Google has a Hinglish-speaking virtual assistant, although it has yet to launch Google Home speakers in India. Apple wants Siri to get the cultural nuances of dialog in India, and has a Hinglish keyboard for the iPhone 8 and iPhone X.

It’s not easy. Hinglish can vary depending on whether you’re in Delhi or Hyderabad. Folks in Hyderabad pride themselves on their “Hyderabadi Hindi” which has influences of Urdu because of its heritage of Muslim rulers, as well as the local language Telugu.

India has 22 constitutionally-recognized “official languages,” but several others are widely used, like Bhili or Bhilodi spoken by a million Bhil tribals in the desert and forest areas of Rajasthan and Gujarat. There are over 1,600 dialects and 30 languages
each spoken by more than a million native speakers.

Thus, even though such a large domestic market with a population of 1.3 billion is enticing for internet businesses, it’s far more diverse than neighboring China. Mandarin Chinese is spoken by the vast majority in mainland China dominated by the Han ethnic group.

Urban India’s widespread use of English is often cited as an advantage over China for global businesses, but it’s a different picture when it comes to targeting the hundreds of millions in the interior or even among the lower middle class in the big cities.

Less than 100 million out of India’s 700 million literates can read or write English. And most of the new internet users belong to the latter group, drawn in by the availability of affordable smartphones and falling data costs.

Five regional languages represent 75 percent of the digitally engaged audience who prefer to communicate in their native languages.

So how can a business overcome multiple language barriers to target these hundreds of millions of non-English-speaking or even Hinglish-speaking consumers? One strategy is to zero in on the most used Indian languages.

As many as 90 percent of the 700 million literates in India can read and write at least one of India’s 12 major local languages. And among those, Hindi, Marathi, Gujarati, Telugu, and Bengali are the top five Indian languages that any business or app developer localizing digital products for the Indian market should not ignore, according to the first Digital Indian Language report (PDF) published by Reverie Language Technologies.

These five regional languages “represent more than 75 percent of the total digitally engaged audience who prefer to communicate in their native languages,” Reverie notes. On the other end are Dogri, Kashmiri, Konkani, Maithili, Manipuri, Nepali, Sanskrit, and Santhali – which Reverie calls “digitally endangered languages that would need support from handset manufactures and state governments to preserve for future generations.”

The language divide

Reverie has been trying to bridge the “Indian language divide” in the digital world since its inception in 2009. It built a cloud platform that businesses, OEMs, and chipset-makers can use so that the end-users of their products can consume digital content in their preferred regional language, real-time.

Through a set of APIs, Reverie’s tech stack on the cloud offers services like local-language translation, transliteration, device input, and search.

The company also has an Indian language keyboard, Swalekh Indic. It helps users type text messages, Facebook updates, tweets, emails, blogs, and so on in any of the 22 Indian languages.

See: This startup helps online businesses smash one of their biggest barriers in Asia

For its report, Reverie studied around 27,000 unique Android smartphone users who have been using Swalekh for six months – January to June 2017.

Here’re some excerpts from the Reverie report:

Top 10 Indian languages by sessions and word count

Tops apps by sessions and word count

Not surprisingly, WhatsApp is the most popular app with Indian language users using the Swalekh keyboard. As much as 35.95 percent of sessions on all Indian languages was spent on WhatsApp.

Top app categories by sessions and word count

Indian language internet users study by Google-KPMG

A report (PDF) published earlier this year by Google and KPMG estimated that Indian language internet users will drive the next phase of internet adoption in India. They’re expected to constitute more than 2.5 times the English internet user base by 2021.

Source: Google-KPMG report.

Here’re some highlights from the Google-KPMG report:

  • Indian language internet users grew to 234 million by the end of 2016, surpassing the number of English internet users.
  • 9 out of every 10 new internet users in India over the next five years are likely to be Indian language users.
  • The number of Indian language internet users will continue to grow at an annual rate of 18 percent to reach 536 million by 2021, while English internet user base will grow at 3 percent annually to reach 199 million.
  • By 2021, Indian language users would account for about 75 percent of India’s total internet user base.
  • While only 42 million Indian language internet users currently access ecommerce, this will grow 32 percent annually to hit 165 million users by 2021.
  • Currently, 47 million Indian language internet users access digital payments products – to top-up credit for phone and pay utility bills mostly. This number is expected to grow 30 percent annually to hit 175 million by 2021.
  • Digital news will add over 180 million Indian language users by 2021 to reach a total of 284 million readers. This will be 85 million higher than the number of English users.
  • A rural user spends 15 percent more time consuming digital news compared to an urban user.
  • Indian language digital entertainment with a user base of 167 million currently will reach 392 million by 2021.
  • While chat apps and digital entertainment will continue to have high adoption levels amongst these users, ecommerce, online government services, and digital classifieds would clock the highest growth in adoption rates across Indian language users till 2021.


Besides the growing smartphone adoption in the country, affordable high speed internet, and rising digital literacy, a key factor that’s fueling the growth of internet users is the “Indian language enablement of the ecosystem bringing and engaging more Indian language users online.”

This post Hinglish alone won’t do. Any business targeting India must crack these languages. appeared first on Tech in Asia.

WeChat users send record 38 billion messages per day

$
0
0

The chatty users of WeChat have just set a new record, sending 38 billion messages per day. That’s 25 percent more than last year.

Here’s how that compares to WhatsApp:

Image credit: Tech in Asia.

Tencent, maker of WeChat, also revealed a few more stats today in its 2017 WeChat Data Report:

  • 6.1 billion voice messages sent each day
  • 205 million video and voice calls daily
  • 50 million “seniors” – age 55-70 – are active users
  • 3.5 million active “official accounts,” used by brands, media outlets, bloggers, and celebrities
  • 797 million users actively browse through content from official accounts

This post WeChat users send record 38 billion messages per day appeared first on Tech in Asia.

Asia tech news roundup – Nov 9

$
0
0
Copyright: bingfengwu / 123RF Stock Photo

Shenzhen, Tencent’s hometown. Photo credit: bingfengwu / 123RF.

Tencent has been in the headlines again today, investing big sums into electric vehicle (EV) maker Nio and Snapchat parent Snap. Indonesian startups StickEarn and OnlinePajak also nabbed funding.

Marketing and advertising

StickEarn secures US$1 million seed funding (Indonesia). East Ventures invested in the Jakarta startup, which provides a mobile platform that allows brands to place their ads in cars and other vehicles and monitor their whereabouts. (Tech in Asia)

Photo credit: StickEarn.

Enterprise services

OnlinePajak gets US$3 million to US$5 million in series A round (Indonesia). The startup has developed an app that helps corporate taxpayers manage their tax payments, invoices, and employee payroll. Alpha JWC led the round, with Sequoia Capital taking part. (DealStreetAsia)

Qubole raises US$25 million strategic round (India). Singtel’s Innov8 venture arm and Harmony Partners co-led the round, with existing investors Charles River Ventures, Lightspeed Venture Partners, Norwest Venture Partners, and Institutional Venture Partners returning to up their stakes. Qubole provides an AI-driven big data analytics platform, and will use the funding to expand its worldwide business. (Qubole)

Itilite Technologies closes seed round (India). The Bengaluru-based travel management startup has raised an undisclosed amount of seed capital from Matrix Partners and several angel investors. (Livemint)

Transportation

Nio EP9 Vision. Photo credit: Nio NextEV.

Nio raises more than US$1 billion in Tencent-led round (China). The electric car manufacturer – previously known as NextEV – is valued at over US$5 billion following the investment. Lone Pine Capital, CITIC Capital, and Baillie Gifford were among the other participants in the round. (Reuters)

Meanwhile, Tencent rival Baidu is rumored to have backed WM Motor (China). The Beijing-based EV startup is said to have raised US$140 million from investors led by internet giant Baidu. Tencent is also thought to have joined in the round. (China Money Network)

Ecommerce

Three startups join forces to offer integrated ecommerce solutions (Singapore). Online store builder Shopmatic, payments gateway Red Dot Payment, and logistics manager iCommerce Asia have been brought together by International Enterprise Singapore to provide an end-to-end service for businesses that want to begin selling on the internet. The trio have already signed a deal for their joint solution worth more than US$73,000. (IE Singapore)

Media

Live.me receives US$50 million from Toutiao (China/US). Personalized news service Toutiao has invested in the US livestreaming platform, as the popularity of live video grows worldwide. (China Money Network)

Investors, accelerators, and incubators

snapchat

Photo credit: Adam Przezdziek.

Tencent invests US$2.1 billion in Snap (China/US). The Chinese company has acquired a 10 percent stake in the firm behind Snapchat, which recently reported a disappointing quarter with lower-than-expected revenue and user numbers. Tencent indicated it will work with Snap on gaming content and ads. (CNBC)

Airbnb commits US$2 million to Asia-Pacific investment (Vietnam). The rentals portal wants to invest US$2 million in businesses and other organizations pursuing “innovative tourism projects” in the region over the next three years. It unveiled its plans at the APAC CEO Summit in Da Nang. (Airbnb)

This post Asia tech news roundup – Nov 9 appeared first on Tech in Asia.

Musical.ly, a huge hit with teens, is acquired by ambitious Chinese media startup

$
0
0
music, teens, millennials

Photo credit: Alice Moore / Unsplash.

Musical.ly, the app described by Teen Vogue as a mixture of Vine, Snapchat, and Dubsmash, has been acquired in a surprise deal.

Based in Shanghai, China, but predominantly used by teens in North America and Europe, Musical.ly has grown to 200 million users making and watching a mishmash of homemade music and comic videos. This year it also rolled out Live.ly for live streaming.

The acquirer is Bytedance, the ambitious Chinese media startup behind the smash-hit news app Toutiao, which has 120 million readers each day across China. The terms of the deal are not disclosed, but an overnight rumor snagged by The Wall Street Journal says it’s US$800 million to US$1 billion. A Bytedance representative declined to disclose the amount to Tech in Asia.

Bytedance is said to be worth US$20 billion as it raises more funding.

See: China’s $20 billion news app

More eyeballs

In a statement this morning, Bytedance vowed to boost Musical.ly with its content-driven AI and help expand the social network’s “reach in China and around Asia.”

music, teens, millennials

A Musical.ly user performs. GIF by Tech in Asia, from video by The Best Musical.ly.

Bytedance already has a growing media empire around the world that includes Flipagram, Topbuzz, and Tik Tok.

Alex Zhu, Musical.ly co-founder and co-CEO, today described Bytedance, with its AI know-how, as the “ideal partner.”

“Musical.ly’s vision is to make entertainment more personal, participatory and interactive, by enabling anyone to be a content creator. To achieve this, we need to constantly innovate to provide new and exciting video creation tools to our users, and we see AI as a critical factor in augmenting human creativity,” added Zhu.

If you’ve not heard of Musical.ly, your kids would prefer it stays that way. In a survey, one-sixth of youngsters aged 13 to 19 said Musical.ly is the app “they were most excited about and doubted adults would know about,” reported Business Insider.

See: How a Chinese startup won the hearts of American teens

This post Musical.ly, a huge hit with teens, is acquired by ambitious Chinese media startup appeared first on Tech in Asia.

Flipkart just launched its first phone

$
0
0
Flipkart phone

Billion Capture+ starts at US$170. Photo credit: Flipkart.

Following in the footsteps of Amazon’s Fire phone flop, India’s Flipkart today unveiled its first ever phone.

Starting at US$170, the dual camera Billion Capture+ shows India’s biggest homegrown ecommerce store is going after the cheap-and-cheerful sector that’s currently dominated by Chinese brands Xiaomi and Oppo. It goes on sale November 15.

See: In India, Xiaomi is getting close to toppling Samsung

Indian consumers bought an estimated 109 million new smartphones in 2016 amid a swing away from basic flip-phones, according to IDC. This year is likely to be even bigger. Indeed, the nation of 1.3 billion last month surpassed the US to become the second largest smartphone market.

There will likely be more phones from Flipkart now that it has established the Billion brand. It also comes with a patriotic twist.

“By making these products in India, we will create an impact on both the manufacturing ecosystem in the country and the skills of young workers,” said Flipkart co-founder Sachin Bansal today. “Doing this in fast-growing, high-tech segments like smartphones will magnify this impact on the nation.”

Chinese newcomers like Xiaomi and Oppo are ahead of the curve on this, having already established Indian factories in the wake of Prime Minister Narendra Modi calling for a wave of made-in-India products. Apple manufactures its iPhone SE in India for the local market.

Flipkart, locked in a fierce battle with Amazon for dominance, first dabbled with its own hardware at the end of last year when it released phone chargers and data cables.

Billion Capture+ specs can be found here.

This post Flipkart just launched its first phone appeared first on Tech in Asia.


Brief: Uber’s Khosrowshahi ‘not optimistic’ on Southeast Asia profitability

$
0
0

Dara Khosrowshahi. Photo credit: Uber.

The news (via Reuters):

  • Uber CEO Dara Khosrowshahi said that he doesn’t expect the US ride-hailing company’s Southeast Asian business to be profitable in the near future.
  • “The economics of that market are not what we want them to be,” he said at The New York Times DealBook conference in New York earlier today. “I think it’s over-capitalized at this point. We’re going in, and we’re leaning forward. But I’m not optimistic that market is going to be profitable any time soon.”
  • Nevertheless, he ruled out the possibility of merging the business with regional competitors, as Uber has previously done in China with Didi Chuxing and in Russia with Yandex.

Why it matters:

  • Uber has so far been unable to turn a profit in its Asian markets, where it faces fierce competition from homegrown players like Grab in Southeast Asia, Go-Jek in Indonesia, and Ola in India.
  • Observers have suggested that for Southeast Asia, the US company might take the same route it did in China and Russia, where it effectively exited the market and left it to local players. However, Khosrowshahi’s words in New York indicate otherwise.

This post Brief: Uber’s Khosrowshahi ‘not optimistic’ on Southeast Asia profitability appeared first on Tech in Asia.

Asia tech news roundup – Nov 10

$
0
0
Copyright: <a href='https://www.123rf.com/profile_dibrova'>dibrova / 123RF Stock Photo</a>

Lujiazui, Shanghai. Photo credit: dibrova / 123RF.

Bytedance’s second big acquisition in as many days is revealed, Go-Jek adds yet another string to its bow, and Flipkart gives a sneak peek of its first phone. Here are some of Asia-Pacific’s top tech headlines this Friday.

Social media

Bytedance buys Musical.ly (China). The Chinese media company reportedly paid as much as US$1 billion for the Shanghai-based maker of the lip-syncing app, which is particularly popular with European and North American users. Yesterday, Bytedance’s Toutiao unit revealed it had acquired livestreaming app Live.me. (Tech in Asia)

Ecommerce

Flipkart phone

The Billion Capture+ starts at US$170. Photo credit: Flipkart.

Flipkart enters the smartphone fray (India). The ecommerce company is launching its first own-brand mobile device next week in an effort to diversify its consumer offerings. Named Billion Capture+, it features 13-megapixel dual cameras, seven hours’ worth of battery life, and up to 4GB of memory. (Tech in Asia)

Social enterprise

Qlue raises undisclosed amount from GDP Venture (Indonesia). The “smart city” platform allows citizens to file public service-related complaints online, as well as access real-time information on things like traffic and public transport. Qlue previously raised over US$1 million in its May 2016 series A round. (DailySocial)

Transportation

Go-Jek lends the taxman a hand (Indonesia). The Indonesian Directorate General of Taxation is planning to appoint the ride-hailing and payments company as an official tax agent. Members of the public will be able to apply for a tax identification number and file their returns via a Go-Jek-developed app. (e27)

Photo credit: Go-Jek.

Artificial intelligence

Computer vision startup Malong Technologies raises US$33 million (China). SB China Venture Capital led the series B round. Malong has developed image recognition technology for applications in the retail, textiles, furniture, and food and beverage industries. (China Money Network)

Healthcare

Alodokter confirms US$9 million Softbank-led round (Indonesia). Reports that the healthcare and well-being portal had closed its series B round first emerged last week. The startup confirmed today that SoftBank Ventures Korea led the US$9 million investment, with Golden Gate Ventures and Feng He also taking part. (Alodokter)

Investors, accelerators, and incubators

Alibaba wants a piece of BigBasket (China/India). The internet company reportedly has sought approval from the Competition Commission of India to acquire a stake in the parent company of ecommerce site BigBasket. An investment from the Chinese firm could help India’s top online grocer shore up its position and face down Amazon, which recently obtained regulatory approval to set up an online groceries business in the country. (VCCircle)

This post Asia tech news roundup – Nov 10 appeared first on Tech in Asia.

Video: The most important thing in business, according to Jack Ma

China spends record $18b halfway through Singles Day

$
0
0
angry shoppers fight

Photo credit: pressmaster / 123RF.

Blasting past last year’s US$12 billion, China’s eager online shoppers have spent US$17.9 billion halfway through the annual Singles Day shopfest.

Indeed, the midday tally has surpassed last year’s US$17.7 billion 24-hour total.

The figure is for Alibaba’s two marketplaces, which dominate China’s booming ecommerce industry. No consumer expenditure figure for the day is available from JD, Alibaba’s closest rival.

China’s online shoppers are set to spend around US$1.2 trillion during the course of this year, according to data from Emarketer.

This post China spends record $18b halfway through Singles Day appeared first on Tech in Asia.

Alibaba smashes Singles Day record as shopping spree hits $25b

$
0
0

Image credit: Pexels.

China’s 24-hour orgy of online shopping has ended on a climactic high. Singles Day shoppers spent a record US$25.3 billion, eclipsing last year’s US$17.7 billion tally.

China, Alibaba Singles Day spending total 2017 - GRAPH 1

The figure is for Alibaba’s two marketplaces, which dominate China’s booming ecommerce industry. JD, Alibaba’s closest rival, saw US$19.1 billion spent during its sales event, which ran from November 1 to 11, up 50 percent from last year’s.

A record high 90 percent of spending was done on phones and tablets, said an Alibaba spokesperson. Last year it was 82 percent, and 69 percent in 2015.

Alipay, Alibaba’s mobile wallet app, processed around 256,000 payment transactions per second at its peak within the first 10 minutes of the shopping festival. A total of 1.48 billion transactions were processed by Alipay in the entire 24 hours.

Singles Day 2017, Alibaba, Taobao, Tmall

A large screen at Alibaba’s event shows the final tally. Photo credit: Alibaba.

China’s online shoppers are set to spend around US$1.2 trillion during the course of this year, up from 2016’s US$911 billion, according to data from Emarketer.

Still room to grow

While consumers showed increasing enthusiasm for the day of discounts across China’s ecommerce sites, not everyone is a fan of the annual Singles Day phenomenon, which first started in 2009.

“Singles Day is a disaster for the environment. Alibaba isn’t doing nearly enough,” said Greenpeace East Asia toxics campaigner Nie Li to Agence France Presse.

Greenpeace estimates the 24-hour shopfest last year generated 130,000 tonnes of packaging waste – less than 10 percent of which was recycled.

China’s Singles Day surpassed the US’ Black Friday and Cyber Monday in scale back in 2012:

China, Alibaba Singles Day spending total 2017 - GRAPH 1

Updated 11 hours after publishing: Added JD’s stat.

Converted from Chinese yuan. Rate: US$1 = RMB 6.64.

Watch: Alibaba’s robot army

This post Alibaba smashes Singles Day record as shopping spree hits $25b appeared first on Tech in Asia.

Video: Musk, Bezos and humanity’s race to Mars

Razer’s quest to IPO

$
0
0

The man at the helm of Razer has had a busy year. At the same time co-founder and CEO Ming-Lian Tan was prepping his company for a US$504 IPO on the Hong Kong Exchange, he also took up the challenge of coming up with a unified cashless payments system for Singapore, after engaging with Prime Minister Lee Hsien Loong on Twitter.

And to top it all off, the gaming hardware and entertainment company branched off to smartphones – the Razer phone was unveiled on November 1 to mixed reactions from the gaming and gadget world.

As the company’s stock starts trading, let’s take a look at Razer’s greatest milestones on its road to IPO.

This post Razer’s quest to IPO appeared first on Tech in Asia.


Uber and the ride-hail funding war

$
0
0

Uber is on the verge of its biggest ever funding round after approving SoftBank’s bid to buy a sizeable stake. The deal looks set to allow Softbank and an array of other investors to buy a US$10 billion stake in the ride-hailing firm, reports Bloomberg this morning.

Here’s how Uber, Softbank, and its rivals stack up after this game-changing investment:

Uber funding history

Uber funding history

Uber funding history

Uber funding history

This post Uber and the ride-hail funding war appeared first on Tech in Asia.

What SoftBank’s $10b investment in Uber means for its battle with Ola in India

$
0
0

Photo credit: Ola.

Scandal-ridden Uber has confirmed a deal to sell a chunk of its stakes to SoftBank. The Japanese giant could invest US$10 billion over the next month to acquire 14 percent or more of Uber’s shares, both in fresh and existing stock.

The investment in Uber comes on top of the billions SoftBank has poured into other ride-hailing companies: Didi in China, Grab in Southeast Asia, and Ola in India. Just a month ago, it led a US$2 billion investment in Ola.

This is similar in strategy to SoftBank’s investments in India’s ecommerce market.

SoftBank boss Masayoshi Son sees a big opportunity in ride-hailing as a whole. So his strategy is to get substantial stakes in all the major players. If one or more of them emerge as winners in the long run – that is, regardless of which company wins these ride-hailing battles – SoftBank will be sitting on top of a huge global business.

This is similar in strategy to SoftBank’s investments in India’s ecommerce market. Initially, it hedged its bets by investing in both Snapdeal and Paytm. This year it upped the stakes by investing US$2.5 billion in Amazon’s biggest rival in India – Flipkart. At the same time, it made a solo investment of US$1.4 billion in Paytm.

As for the weakest player among the trio – Snapdeal – SoftBank tried hard to merge it with Flipkart but the deal fell through when the Snapdeal founders decided to hold out for more.

The inference one can draw from that is Ola and Grab will get backing as long as they remain in contention as market leaders. But if either of them loses market share rapidly like Snapdeal did in 2016, then it could be curtains or at best a distress sale.

Also, it potentially shuts out niche players with the leaders widening their offerings, as Ola has been doing with auto-rickshaws (three-wheelers).

Auto-rickshaws are a popular means of transport on congested Indian roads, clocking nearly 230 million passenger rides a day. Ola says it has onboarded 120,000 auto-rickshaws, and recently equipped them with free wifi. Uber, on the other hand, has struggled to get its auto act going, shutting down services in a few second-tier cities after running pilots.

See: Ola gives auto-rickshaws free wifi while Uber struggles to kickstart 3-wheelers

The advantage Ola has gained here is significant as the share of auto-rickshaws in rides booked online rose to 10 percent in the third quarter of this year, compared to a mere 3 percent in the same period last year. The number of auto-rickshaw rides booked via ride-hailing apps went up from 5.5 million in Q3 2016 to 18.5 million in Q3 2017, according to RedSeer Consulting.

Ola VP Ankit Jain points out how customer needs vary in India compared to the West. “If you land in New York or a European city, you’ll find two or three options, from a slightly nicer car to a less nice car to a car pool. In India, we have people who are willing to pay over 500 rupees for a ride to those who want to pay less than 50 rupees for a ride. So that’s why you see in our offerings that we go everywhere from luxury cars, SUVs, sedans, hatchbacks, and shared cabs to rickshaws, bike taxis, and now we’re even experimenting with bicycles,” Jain said at a tech conference in Bangalore last week.

In terms of the mobility we’re driving, we’re almost starting to compete with the entire personal car market.

Ola’s wider play is reflected in its presence in over 100 Indian cities, compared to Uber serving only the biggest 30. That’s a strategic differentiation because Uber is focusing on doubling down and winning in the major cities, which contribute the bulk of the revenue. Ola, on the other hand, could have an early mover advantage by going into areas which are yet to gain momentum.

The mega investments by SoftBank into both Ola and Uber would enable them to make longer term plays for differentiation. Thus, we can expect moves in business as well as tech innovation, and not just competing on discounts for riders and incentives for drivers.

After raising US$1.1 billion from SoftBank, with another US$1 billion in the pipeline, Ola announced a partnership with Microsoft to build a connected car platform to enhance customer experiences. This will be an extension of in-cab entertainment suite Ola Play.

Meanwhile, Uber has been investing in self-driving tech while its US rival Lyft is partnering with Google’s Waymo self-driving project.

Growth stalls, then picks up smartly

In India, both Ola and Uber experienced a slowdown in growth at the start of this year as they cut back on driver incentives to pare down on losses. Drivers went on strike in cities across India, affecting growth and giving a boost to traditional radio taxi operators like Meru.

Recent data from RedSeer Consulting suggests, however, that growth has picked up again for ride-hailing apps. The Indian capital Delhi had a 10 percent monthly growth rate in September; only Islamabad in Pakistan had a higher growth rate in South Asia and the Middle East.

Source: RedSeer Consulting.

Ola has a wider reach with over 800,000 vehicles on its platform in over 100 cities. But Uber has claimed a surge in number of rides this year, despite the distractions of scandals and boardroom battles. Surveys have suggested that Uber is closing the gap with Ola.

App Annie data shows Ola is the market leader with 52-52 percent compared to Uber’s 46-48 percent based on monthly active users in May. More recently, Cheetah Lab data showed a slender lead for Ola in terms of reach based on active users on its platform.

Source: eMarketer.

Into this neck-to-neck race comes the SoftBank investment in Uber, just a month after leading a $2 billion investment round in Ola. This huge influx of capital will make an impact on the ride-hailing scene next year in India, which is Uber’s biggest market outside the US after it lost out to Didi Chuxing in China.

The biggest winner could be the consumer with better offers and experiences as the well-funded Ola and a rejuvenated Uber slug it out. Apart from commutes, ride-hailing has the potential to reduce the usage of private cars and congestion.

As Ankit Jain of Ola points out, “a ride-sharing car typically does nearly 10 times the number of kilometers as a personal car, in the range of 200-250 kilometers a day against 25 kilometers.”

By that yardstick, Ola’s 800,000 vehicles would be equivalent to 8 million personal cars, which is one-third the total personal car ownership in India. “In terms of the mobility we’re driving, we’re almost starting to compete with the entire personal car market,” says Jain.

Add Uber’s 450,000 vehicles to that, and you have the equivalent of half the personal cars in India in terms of kilometers run. Masayoshi Son’s huge bets on ride-hailing can be seen in that context too, and not just the rivalry between the apps. SoftBank is setting a new paradigm of investing in a domain, not just a company, with its mammoth US$100 billion Vision Fund and an even bigger one coming soon.

This post What SoftBank’s $10b investment in Uber means for its battle with Ola in India appeared first on Tech in Asia.

How Skyscanner enters new markets

$
0
0

The Inside series is a column where the Tech in Asia Jobs team gives an insider’s glimpse into interesting companies and professions. Looking for a job? Search thousands of jobs for free on Tech in Asia Jobs.

I immediately recognized the Skyscanner office upon stepping out from the elevator. Decked in its familiar blue, pink, green and grey theme, it looked exactly like every other Skyscanner office I’d seen online.

Photo credit: Skyscanner.

But unlike the others, Skyscanner’s Singapore office is their regional headquarters, and is where a lot of the magic happens to bring the UK brand to its Asia-Pacific counterparts. In Singapore alone, the team reports solid revenue growth and a 40 percent visitor growth year on year.

I spoke to Paul Whiteway, senior director and head of growth for Asia, to find out more about Skyscanner’s development in the region.

Skyscanner’s expansion to APAC

Members of the Skyscanner APAC team at an annual team bonding event this year. Whiteway is first from the right. Photo credit: Skyscanner.

Skyscanner landed on Singapore’s shores in 2011, when its business was picking up in Asia.

Since then, its Singapore office has flourished into a 100-strong team, including the Growth, Commercials, and Product teams — the three pillars that unlock growth in their markets.

“As the regional HQ, we have a very diverse team based in Singapore,” said Whiteway. “We have teams from the local countries who are responsible for growth in their markets. My job is to help them be successful. This involves managing and working with teams to help them define and execute the strategy for growth in our markets.”

“I act like a chef by finding the right recipe and mix for a market, coordinating the resources, timing the execution, getting the resources and ingredients, and removing blockers,” he added.

Organisational structure

Unlike traditional corporations, Skyscanner is organized into cross-functional teams or squads.

Image credit: Joshua Lim.

To put it simply, the APAC team in Singapore is called a tribe, with Whiteway as the tribe leader.

Within the APAC tribe, there are different kinds of squads, like the growth and engineering squads. Squads have between five to eight members.

Growth squads are typically organized by the countries belonging to the region they handle. For example, the Singapore office has the Korea squad, the India squad, the South Asia squad (in charge of Singapore, Malaysia and Thailand), the Oceania squad (in charge of Australia and New Zealand), and the VIP squad (in charge of Vietnam, Indonesia and Philippines).

In general, this is what a country squad looks like.

Image credit: Skyscanner.

This structure allows squads to work towards achieving the same key performance indicators together. As a result, teams are lean and agile, with complete autonomy to enable rapid iteration and have maximum impact.

Entering new markets

According to Whiteway, Skyscanner sets out “to build a sustainable foundation for growth,” beginning by “understanding the level of product-market fit for that market and some key critical growth levers.”

They then conduct some limited marketing activity to provide initial stimulus. This could be anything from running advertisements, improving search engine optimization, public relations activities, and blogger outreach.

Next would be finding ways to get to product-market fit.

“To determine product-market fit,” he said, “we use a set of key metrics, such as acquisition, activation, retention, referral and revenue [or AARRR] to consider whether the market has the potential to support growth.”

“Product-market fit is always a moving target for us,” he said. “Take Korea for example. At the initial stages, it was crucial to get local partners and airlines into Skyscanner. Once that was in place, Skyscanner Korea was able to offer local currency options and local support. As it progressed, it was learning how travellers book and make choices, and then adjusting the product to match that.”

Once they get to product-market fit, Skyscanner then applies certain growth levers, such as increasing the number of local partners, app store optimization, and running advertisements and email marketing campaigns.

“We are also always tweaking our product to make sure product-market fit remains,” he said.

Challenges of localisation

“The fact that APAC isn’t as homogenous a region like Europe is both an opportunity and challenge for us,” said Whiteway. “We needed to make sure we are adapting our offering to individual Asian markets while making our business more nimble and responsive to customer needs.”

He also cited the allocation of resources as a constant challenge.

“In some markets, we need to take a leap of faith in order to kickstart growth,” he said. “In others, the small experiments and iterations will prove more successful and effective. Our teams are constantly looking into the data, speaking to users, and working across different squads and tribes, in order to determine what the right approach is.”

Case study: Korea

The Korea squad. Photo credit: Skyscanner.

Whiteway held up Skyscanner’s Korea squad as a huge success.

“The team has managed to grow more than double year-on-year and has hit its first revenue milestone in January of this year,” he said.

He pointed out several elements that have worked in their favor.

“At the beginning, the squad focused on building supply by speaking to airlines and educating them about Skyscanner. With the help of engineers, we were able to integrate partners such as Korean Air and Asiana Airlines within a year. Having local partners on Skyscanner provided users with locally available prices, familiar brands, and local customer services,” he said.

However, technical problems occurred when the airlines’ systems proved incompatible with Skyscanner’s, affecting the accuracy of prices presented on Skyscanner.

“This affected the user experience and was a challenge for us to move forward,” he said. “Our engineers worked closely with the product, commercial, and growth teams to help stabilize the system and improve price inaccuracies. That helped our brand earn the trust of the Korean travelers.”

Once the issue was resolved and they found product-market fit, the growth teams were able to execute and optimize marketing activities to acquire and retain users.

“Our squads and tribe structure helped see collaboration among the product, commercial, and growth teams to overcome such challenges. And it has proven successful for us,” he said.

Areas for improvement

Despite its successes, Whiteway still sees areas where Skyscanner can do better.

“APAC consumers have different purchasing behaviours, and they access the internet from their mobile devices more so than on their desktops,” said Whiteway.

“Our app usage is climbing towards 50 percent, but we are not there yet,” he continued. “We are now working towards that direction and want to be able to move our app usage to 80 percent, like our parent company, Ctrip.”

Hiring

The Skyscanner Oceania squad. Photo credit: Skyscanner.

Whiteway said Skyscanner is looking for people who are not only collaborative and independent, but are also active learners and self-starters. “Because of the way we are structured as a growth organisation, we are looking for talent with T-shaped skillsets — those who are willing to explore and learn skills beyond their own specialization,” he said.

He also shares some helpful advice for potential candidates.

“Be data-driven and experimental. Build, measure and learn. Design like you’re right, and test like you’re wrong,” he said.

This post How Skyscanner enters new markets appeared first on Tech in Asia.

Razer shares surge early in oversubscribed $528m Hong Kong IPO

$
0
0
Razer CEO Min-Liang Tan on stage at Tech in Asia Singapore 2017

He’s a billionaire now. Razer CEO Tan Min-Liang on stage at Tech in Asia Singapore 2017. Photo credit: Tech in Asia.

Razer shares commenced trading on the Hong Kong stock exchange today in one of Southeast Asia’s most highly anticipated tech company IPOs.

The gaming peripherals maker – currently based in the US, but with roots in Singapore – had set its opening share price at HK$3.88 (US$0.50), with a target of raising about US$528 million in total.

Thanks to oversubscription, the share price surged in early trading to a high of HK$5.49 – a 42 percent gain on its opening price, according to Bloomberg. Things settled down during the afternoon, with Razer stock closing at HK$4.58 at the end of the trading day.

The South China Morning Post reported that about 220,000 retail investors subscribed for Razer shares, with underwriters upping the tranche available to them from 10 percent to 50 percent. Cornerstone investors included Singaporean sovereign wealth fund GIC, Chinese real estate company Kingkey Enterprise Holdings, and the Hartono brothers who run Indonesia’s Djarum Group conglomerate.

The company’s Singaporean CEO Tan Min-Liang, whose family owned around 42 percent of Razer stock prior to today’s IPO, is expected to be made into a billionaire by the listing.

See: Razer’s quest to IPO

Razer will use a quarter of the money it has raised to fund expansion into new verticals, including mobile devices. The company unveiled its first smartphone last week.

Another quarter of the proceeds will go towards mergers and acquisitions, with the rest earmarked for research and development, marketing and sales, and general working capital purposes.

Razer’s impressive first day comes less than a week after China Literature, a Tencent-affiliated ebook company, raised US$1.1 billion in its Hong Kong IPO.

Chinese online car insurance platform Yixin is aiming to raise as much as US$870 million in its Hong Kong listing, which is slated to take place on Thursday this week.

Converted from Hong Kong dollar. Rate: US$1 = HK$7.80.

This post Razer shares surge early in oversubscribed $528m Hong Kong IPO appeared first on Tech in Asia.

Singaporean payments startup shifts to business clients with $1m fundraise

$
0
0
Copyright: <a href='https://www.123rf.com/profile_racorn'>racorn / 123RF Stock Photo</a>

Photo credit: racorn / 123RF.

Singaporean startup iPaymy has raised US$1 million in a seed round led by Beenext and Digital Garage’s investment arm, DG Incubation.

Starting out as a consumer-focused platform, iPaymy has since pivoted towards serving small and medium-sized enterprises (SMEs), providing a platform for them to use their credit cards rather than cash to pay for expenses like invoices, salaries, and taxes.

The startup’s first product was a payments platform that allowed individuals to pay monthly expenses using their credit card.

It’s just like if you go to a restaurant and charge the meal to your credit card.

“We launched a consumer business to help consumers earn lots of air miles by paying their rent with their credit card,” iPaymy co-founder and CEO Ethan Dobson tells Tech in Asia. “Organically, after a few months, we started hearing feedback from some of those consumer customers who said they run a small business, and it would be great if they could use the same solution there.”

That’s when the startup began working on its new offering, named iPaymy for Business. This platform allows SMEs to add payees and make both one-time and recurring payments using a credit card – even to payees that don’t typically accept such payments.

More than air miles

Small businesses can struggle to access traditional financing products, such as bank loans, that they typically rely on to cover operating expenses. They might not meet the lender’s criteria, or they might have an unsatisfactory or non-existent credit record. Even if they have a decent credit score, they likely face a motherload of paperwork, the need to put up other assets as collateral, and a weeks-long approval process if they apply for a loan.

Something that most Singaporean SMEs do have access to, though, is a credit card. If they have the ability to pay everyday outgoings on credit card, they can free up working capital for spending or investing elsewhere.

The problem is that plenty of payees – in a broad sense, including employees and landlords – don’t accept credit cards. Realizing this, iPaymy co-founders Dobson and Chrystie Dao-Szabo set out to find a solution.

Within the rails

Explaining how the model works, Dobson says that he considers iPaymy to be a tech-driven payments platform, rather than a financial intermediary.  

“We don’t actually touch the cash, by design,” he explains. “We want to work within the existing rails, so we work with various acquisition partners – Stripe being one of them.”

Chief business development officer Chrystie Dao-Szabo and chief executive officer Ethan Dobson, iPaymy’s co-founders. Photo credit: iPaymy.

The startup charges an SME’s credit card with funds settled to an iPaymy trust account. Recipients are then paid directly via a bank transfer from the trust account within four business days, after iPaymy has claimed its one-time, per-transaction fee and completed know-your-customer checks. The SME pays its credit card provider back as normal when its statement arrives at the end of the month.

“We don’t lend, we don’t take on risk in that way,” says Dobson. “It’s just like if you go to a restaurant and charge the meal to your credit card.”

SMEs think that going to the banks is the only way to get capital.

For more complicated payments, such as monthly salaries for a number of employees, business owners can upload a CSV file containing tabulated employee data to the iPaymy platform. The credit card is then charged and the KYC process takes place before iPaymy transfers the funds to the employees’ bank accounts.

There are a few other startups around offering similar solutions to iPaymy, such as fellow Singaporean company CardUp. However, Dobson thinks the biggest challenge facing iPaymy is awareness.

“We’re partners with a number of banks, but other banks are in a way our competitors, because SMEs think that going to the banks is the only way to get capital,” he says. “One of our main goals is to educate SMEs, and that task varies along a pretty big spectrum, from the mom-and-pop shop which is lower on financial sophistication scale, to folks all the way up at the top.”

Pivot, grow

Dobson says that the startup still maintains an extensive portfolio of individual customers for its original consumer solution. However, it is now dedicating all of its development and R&D resources to iPaymy for Business, which it sees as having more growth and scale potential.

In terms of the US$1 million seed funding it has just raised, iPaymy will be spending in three areas – product development, its go-to-market strategy, and potential regional expansion beyond Singapore.

For Dobson, having the expertise and experience of VC firms Beenext and DG Incubation on board is at least as valuable as the capital they’ve injected into iPaymy.

“They are the premier payments VCs in the region,” he says. “These guys know payments – Digital Garage has [payments provider] VeriTrans. Teru [Sato, founder] of Beenext built Beenos in Japan. Their network here is amazing, and in terms of series A and beyond, we’re very aligned on what our goals are. That’s such an enormous tailwind for the company.”

Dobson says that iPaymy is aiming to lock up a series A round by the middle of next year, with the next fundraise already attracting interest from “recognizable names.”

This post Singaporean payments startup shifts to business clients with $1m fundraise appeared first on Tech in Asia.

Viewing all 6222 articles
Browse latest View live