Insignia Ventures Partners

Amidst the tougher funding environment, talent all over the world continue to gain interest building in Southeast Asia Sarah Bak, our CFO, and Allen Chng, our VP of Strategic Development and Operations, share more about the Singapore and Southeast Asia startup ecosystem to students around the world in separate programs in Singapore over the past few days Earlier this week, Sarah was part of a panel introducing Singapore and Southeast Asia to curated cohort of entrepreneurship program alumni from the Northwestern University - Kellogg School of Management, the University of Michigan, and Reichman University in the Zell Global Entrepreneurship Network (ZGEN) She specifically talked about the importance of digital (internet), physical (incubation spaces), and regulatory infrastructure (e.g., EntrePass by Startup SG) to drive startup creation in the region. She also cited the value of sandboxes like that one StraitsX (part of Fazz group) was a part of and which ultimately led to them receiving a full suite of MPI licenses from the MAS just last week, which include stablecoin issuance A few days later, Allen shared our view of the Southeast Asia opportunity before MBA students of the Hult International Business School, as part of a class taught by Insignia Ventures Academy alum Bilal Noorgat CA CFA Thank you to ZGEN and Bilal for inviting us! 📸 Photos from the Hult class and ZGEN session

Market expansion is not cheap, especially for B2C brands and companies, but there is a way… Localization can take up a lot of resources if not done effectively, and even if there is a “playbook” to replicate across markets, it’s never a 100% copy paste There will always be that “replication risk” inherent, and competitive advantages for brands and companies expanding across markets will be built on this ability to reduce the risks around replication A lot of this ability hinges on robust partnerships, as we’ve learned from our portfolio companies, and these partnerships can take on multiple forms: 1️⃣ Carro acquires leading local players in different markets and partners with leading players of specific functional areas (content, tech, aftersales), today operating in 7 markets (Singapore, Indonesia, Malaysia, Thailand, Taiwan, Hong Kong, Japan) 2️⃣ igloo built a distribution network globally to drive sales of their smart access technology, today distributing to 50+ markets across 6 continents 3️⃣ Intellect built partnerships with leading healthcare providers like IHH Healthcare and Accresa to distribute their mental healthcare programs for employees across Asia and the US, today with 3.5 million+ members across 22 markets 4️⃣ Dr Clear Aligners Group built an ecosystem of third-party dental clinics and healthcare groups in addition to their own flagship clinics, today with hundreds of third party and self-operated clinics across 7 markets. While partnerships seem like an easy answer to the playbook replication and market expansion problem for startups looking to keep costs on the low end, there are two questions in particular that always need to be asked as this partnership ecosystem is built: 🤨 How do you prioritize partnerships across different markets as well as balance it out with proprietary initiatives as well?  🧐 How do you ensure partners are getting into a win-win relationship? 👉 On question 1, it’s still important for the company to set the standard for how it expects its brand, products, and services to be delivered. It’s also important for the company to not be swayed left and right by demands of each market or partner and focus on what makes the most sense for the overall group. 👉 On question 2, this can be easy to overlook especially if partnerships come inbound, but there needs to be a constant communication with partners on how they are benefiting from the relationship. In some ways this communication can lead to new product discovery or even more cost-effective ways of delivering products and services to a market. 📸 L-R: Carro Experience Center in Malaysia (from paultan.org), igloo home at CES 2024, Intellect’s first flagship clinic in Singapore, Dr Clear clinic snapshot

Southeast Asia is no longer a region for tech investment and expansion... …Because it’s become much more than that. It’s also become a starting point to build global companies, and the region has come a long way 1️⃣ before Southeast Asia was view collectively as a group of emerging market economies ripe for tech and venture capital investment, the momentum was to attract global capital and talent into the region 2️⃣ the Southeast Asia narrative attracting investors and strategic players went into full swing as local startups sought to become regional market leaders. The momentum was to produce regional players to deliver on this promise of Southeast Asia outcomes. 3️⃣ Southeast Asia has become a destination for global talent to produce companies with a global presence A lot of the trends we’ve written about in terms of company building these past few months all contribute to this evolving role of the region: 1️⃣ vertical AI or AI-as-a-Service (lowering barriers to tech) as with WIZ.AI or bluesheets 2️⃣ growth stage companies shifting from 3P to 1P (increasing margins for market expansion and establishing global differentiation) as Carro and Pinhome are doing for cars and homes respectively 3️⃣ slowdown and saturation of tech in more mature markets pushing talent to start companies from emerging market regions like Southeast Asia 4️⃣ big tech and emerging consumer brands focusing on Southeast Asia as a key growth market Building a company with a global presence is not limited to market expansion. 👉 There are B2B / B2B2C companies like Intellect growing with multinational partners and customers to drive adoption of their products and services 👉 There are companies that are inherently global from day one because of the global nature of problem they are solving like Finmo with global treasury pain points or Janio Asia with cross-border logistics 👉 There are also companies that create a global presence competitively even if they are just focusing on a single market because of the highly localized approach they take, companies like Ajaib’s approach to growing the investing class in Indonesia or SuperApp (YC W18) reinventing retail in tier 2 cities to rural Indonesia Follow us for a deeper dive into these pathways to a global presence on review.insignia.vc. 📸 Central Jakarta traffic

Does bringing bank credit to every Filipino resonate with you? How would you like to become part of the first bank team in the world with Sense of Humour and Street Smart as actual corporate values? We have a number of management openings: Head of Key Accounts - Shop Installment Loans Chief Risk Officer (focused on regulated entity/BSP risks) Head of Internal Audit Head of Treasury Performance Marketing Officer Product Manager - Shop Installment Loans Product Manager - Deposits Legal and Data Privacy Officer Head of Anti-Fraud If you're passionate about making a difference and thrive in a fast-paced, bad-ass, innovative environment, we want to hear from you! 💜 Email to hr@tonikbank.com and join us! 🌐💼 (re-shares are very much welcome!) #Tonik #DigitalBanking #CareerOpportunities #Hiring #Innovation #FinancialInclusion #JoinUs

How this dental clear aligner brand is building a global presence out of Malaysia... We're privileged to be partnered with Dr Clear Aligners Group in their US$8 million Series A round, as the dental healthcare company continues to explore new market expansion and enhance its tech capabilities Founded in April 2020 by Ryan Teo, Kevin Lim, and Jayden Cheng, Dr Clear Aligners has rapidly grown its footprint, operating in 7 countries with a robust network of over a thousand partner clinics. The company also owns and operates 11 fully licensed dental clinics, offering a comprehensive range of dental services. Most recently, Dr Clear Aligners partnered with one of the largest dental clinic chains in SEA and introduced patented technology in patient treatment monitoring, the first of its kind in the region. Read more about what this funding means for DCA: https://lnkd.in/g-JnbbTi Follow us for more insights into this latest investment!

The One Thing Every Enabler Can’t Grow Without… We have had the opportunity to invest in companies in Indonesia tackling traditional industries with many underserved businesses, from poultry to farms to fisheries to textiles. While these businesses approach enabling these industries in different ways, from providing inputs and advisory to operations management software to export solutions, a common service these companies have expanded to is financing. As different as the products are, the businesses in each of these industries face inventory management or input access challenges that can often slow down growth without a cash buffer or more stable cash flow to then guarantee more stable inventory or input flows. 1️⃣ BroilerX partnering with Bank BJB to support supply chain financing for their chicken farmers (the second bank it has partnered with) 2️⃣ FishLog has its inventory financing product FishFin and also partnered with BNI Xpora to support Indonesian seafood SMEs in expanding exports 3️⃣ Elevarm’s recent funding round is going towards its financing products with the help of its strategic partners 4️⃣ Wifkain has its Wif-fin service in partnership with several fintechs Read the rest of the essay here: https://lnkd.in/gJ7bVytg 📸 L-R, T-B: BroilerX poultry products, Elevarm farmers, FishLog International products, Wifkain's Manufacturing-as-a-Service

When it takes more than one CEO to build a global company While it is important for a startup going global to have a replicable business model, it is just as critical to have leaders ensuring the execution is tailored to the needs and nuances of the market. These leaders are essentially building their own startup in these markets, with the overarching business as the framework in which to operate. In many ways, scaling a startup geographically is an art of building a startup from the ground up in every market — this could mean quite literally starting from scratch, or even in the case of a joint venture or M&A market entry, integrating the local operations into the wider global operation, both from a process and people standpoint. Regardless, the leaders in every market need to be able to balance alignment with management with the flexibility to meet the specific needs of their market Such was the challenge that Carro’s Chief Science Officer Bryan Tan, PhD took on, becoming CEO of Carro Indonesia more than a year ago. From an outsider’s perspective, Bryan has already had quite the journey, going from the academe as a nuclear physicist to joining a fast growing tech company. But Bryan took this even a step further taking on an even larger executive role with growing the Carro business in one of its first markets and Southeast Asia’s largest market. While coming from the unlikeliest of backgrounds for a tech company in the auto industry, he became the right person at the right place at the right time. His work developing Carro’s AI/ML capabilities especially around pricing has been essential to creating a more seamless tie in between Carro’s business work at the P&L level and the tech level. Having a leader able to bridge this link between P&L and tech has been important for a market like Indonesia where more effort has been needed to drive process automation and market education He and his team have grown Carro Indonesia 5x over the past year, creating momentum for the market and contributing to Carro’s positioning as a global company as the group has been eyeing a potential IPO. Bryan’s story is one of finding and enabling the right people to take ownership of growth levers that actually suit their strengths, even if it may not be obvious at first. And Bryan is not alone — Carro’s six other markets also have leaders with their own stories and strengths that align with the needs of the market — and a global company like Carro will continue to need more than one such leader — a global citizen, if you will. If you’re interested in becoming such a leader, check out Carro’s Management Associate Program (in Singapore and Malaysia): https://lnkd.in/gSZG7f6S Read the full feature: https://lnkd.in/gYHGUJ5E

What Does Market Really Mean In Product-Market Fit: The Case Of Surabaya When it comes to product-market fit, market often refers to the target user/customer of the business. It’s the market at its most nuclear definition. What are the characteristics and behaviors of these users? What are these users’ pain points? For some software products, because of how homogeneous the user experience can be at scale, it’s a good enough definition. But it is clear from comparisons of similar business models across countries that market also refers to the very physical environment and socio-economic dynamics that can influence the way a company executes its business model. This is important especially for O2O models, like the social commerce business of SuperApp (YC W18) that involves developing and transporting fast-moving and retail goods across communities in tier-2 cities to rural Indonesia. A visit to the heart of their operations in Surabaya unveiled several examples of how various aspects of the market beyond the users themselves can impact the business. 1️⃣ Disparities present opportunities for innovation. It’s not uncommon to see across the road from rundown suburban areas with small mom-and-pop shops / tokos (selling everything from rice to gas), new housing and commercial developments, especially in Western Surabaya, where much of the development has shifted from the East. This is characteristic of a rapidly evolving city is the texture of having different landscapes within minutes of each other. While the city has the largest GDP after Greater Jakarta, the gap is still quite massive (around 5x), GDP / capita is still shy of US$5K, and minimum wages are still significantly lower. There is a clear disparity that could easily become more significant as certain areas in the city are developed more than others. Closing this disparity, at least when it comes to the selection and prices of fast-moving goods for consumers, has been the mission of Super from the very beginning. 2️⃣ No change is too small. Developments as simple as a new highway being constructed that shortens travel time from the airport to a key warehouse for example can be instrumental in rethinking growth for a business. 3️⃣ Markets are dynamic characters. A lot of stores closed amidst the height of the pandemic but in the years since there has been a revival of retail, restaurants, and coffee shops in the city. Old homes are also being renovated, more so than before the pandemic. This could point towards any number of impacts on a business like Super’s, from competition to more distribution opportunities for their private label products beyond tokos. The full article here: https://lnkd.in/gNGb8zah 📸 Shots of the Eastern Indonesian city from Paulo J's visit to Surabaya for a new project (stay tuned!)

Why it’s more important than ever for venture backed companies to have a global presence (and it’s not just about market expansion) Elevarm’s recently announced strategic partnerships with Rabobank, Scala, Inc. and Amartha to develop the agritech’s farmer financing product: https://lnkd.in/gnbvSvWn And Aloshop by Shipper’s official announced its launch in Thailand following its high ranking performance on TikTok: https://lnkd.in/gnUfZa_a These recent milestones of two very different portfolio companies share one common thread: Indonesian companies building a global presence This could come in different forms: Liked market expansion driven by a proven playbook in one market and the opportunity to replicate it in another with similar market “stakes”, as in the case of Aloshop unlocking the ecommerce enabler opportunity in Thailand through TikTok (which has also been a driver for their growth in Indonesia) Or solving a unique local problem with a differentiated approach that resonates with and attracts global partners to help make the company’s value proposition more scalable and competitive, as in the case of Elevarm’s financing product There are a couple more on the B2B front, but that’s for another post… Regardless of the approach, the trajectories of such companies in Indonesia point towards greater global interest in the region and economic fundamentals enabling more cross-border expansion And with the higher cost of money and greater competition, it pays for venture-backed companies to have a wider horizon for what the business can become Photos from Aloshop Thailand coverage on dailysocial and Elevarm’s Impact Report: https://elevarm.com/impact 

Going online-to-offline as a healthtech shouldn’t be a burden on costs but an opportunity to rethink growth Recent milestones from our healthcare portfolio companies (Intellect’s launch of their flagship mental healthcare clinic and Tentang Anak celebrating the anniversary of their private label brand Expert Care along with their #madeinindonesia recognition from Google) bring up a key insight on the growth trajectory of healthcare companies in the region: the “traditional”, offline approach still matters, especially in B2C and B2B2C models A physical, offline presence still plays a key role in growth, whether it’s opening up clinics, partnering with healthcare groups to distribute offline, or developing white label brands to tackle specific needs of customers While healthcare drew the spotlight of investors in Southeast Asia thanks to the emergence of “remote service delivery”, simply growing and monetizing on top of this has not been enough Following a first principle we’ve mentioned before to progressively “own” the value chain and veer away from a pure platform play, healthcare companies are also finding it valuable to build a more tangible presence beyond virtual services by also venturing into the actual treatment (as opposed to just connecting providers with patients). But isn’t the whole point of technology to reduce the costs of setting up offline? This may apply to only specific aspects of the customer journey (e.g., service discovery, treatment monitoring, maintenance, etc.) , and the cases where offline spaces are incorporated (e.g., treatment proper) can be an opportunity to build a longer-term relationship with the patient, more effectively than a purely virtual experience would. Having this online-to-offline distribution also strengthens the competitive advantage of the company’s core technology, if there is, as it would reduce costs of an otherwise purely offline process while still granting the company greater coverage than purely online players This means a shift in mindset around implementing online-to-offline strategies, from thinking how about offline execution purely from a costs standpoint to how the offline experience can also drive greater value for the entire business (e.g., stronger retention, more avenues for customer engagement and feedback, more opportunities for B2B and B2B2C distribution) In light of lower barriers to technology with AI, this is where a lot of the competitive moats will come into play — the ability of the company to focus on which aspects of the customer experience can benefit from offline strategies. Full essay: https://lnkd.in/gaBndBqR L-R: Intellect Team at the Intellect flagship clinic opening in Marina One; Tentang Anak founders Mesty Ariotedjo and Garri Juanda celebrating a year of Expert Care by Tentang Anak