Are fintech and online businesses better businesses?

[LITTLEREDDOT]

Net profit (or rather, loss) margin was -33%. Lose 33 cents for every $1 earned.
Uber still losing billions every year.
Grab also losing money.
Amazon only became profitable after about a decade.

There is opportunity cost in investing in fintech start-ups and unicorns.
And also risks.
We hear only of the success stories, but not the 90% which failed.
Might as well buy blue chips, enjoy modest but steady capital gains and dividends.
Take profit 10 years later and then buy these fintechs (Sea, Uber, Grab) when they are established and profitable.
The total return may not be worse off than investing in these fintechs from the start.
That is, if you are lucky enough to be able to be among the initial investors.


Shopee parent Sea's sales double as Asian shoppers go online in pandemic

Revenue rose to US$1.6 billion (S$2.12 billion) in the last three months of 2020 from US$777.2 million a year earlier.PHOTO: SEA LIMITED

3 MAR 2021

SINGAPORE (BLOOMBERG) - Sea Ltd expects e-commerce revenue to double in 2021, sustaining its torrid pace of growth as South-east Asia's most valuable company counts on regional online shopping demand to persist after the pandemic.

Revenue rose to US$1.6 billion (S$2.12 billion) in the last three months of 2020 from US$777.2 million a year earlier, Singapore-based Sea said on Tuesday (March 2) in a statement.

Net loss widened to US$523.6 million from US$283.8 million, as fourth-quarter sales and marketing expenses climbed 95 per cent to US$665.2 million, led by digital financial services.

Sea, backed by Tencent Holdings, has emerged as a stock-market sensation since its initial public offering in New York in 2017, as investors bet the company can establish itself as a leader in e-commerce and gaming in South-east Asia. Among companies valued at US$100 billion or more, the stock is the No. 1 performer in Asia since the start of last year and only trails Tesla globally.

It's also trying to establish fintech as a third growth driver. Sea said on Tuesday it's acquired 100 per cent of Composite Capital Management, a Hong Kong-licensed global investment management firm. With the acquisition, the company is establishing Sea Capital, a platform to manage its overall investments.

The pandemic is helping to spur demand at Sea's e-commerce business Shopee, with fourth-quarter sales increasing 178 per cent to US$842.2 million. Sea forecast 2021 revenue at Shopee of US$4.5 billion to US$4.7 billion, up from US$2.2 billion in 2020.

Hit mobile game Free Fire is fueling growth at Sea's digital entertainment service Garena, whose sales last quarter rose 71.6 per cent to US$693.4 million. Sea forecast Garena's annual bookings - sales plus changes in deferred revenue - will increase to US$4.3 billion to US$4.5 billion in 2021.

Its e-wallet service gained traction, with payment volume exceeding US$2.9 billion for the quarter and US$7.8 billion for the full year. Sea is trying to build financial services into its third growth pillar.

For 2020, Sea posted total digital entertainment bookings of US$3.2 billion.

Annual revenue at Garena rose 77.5 per cent to US$2 billion.

Sea's American depositary receipts closed up 1.49 per cent at US$250 in New York on Tuesday.

 

[Leckmichamarsch]

WHICH MOTHERFUCKERS FUCKEDUP SGX??????????????

 

[LITTLEREDDOT]

Is it profitable, or losing money?

Carousell turns unicorn after raising US$100 million for US$1.1 billion value​

Carousell was founded in 2012 and now counts Telenor Group, Rakuten Ventures, Naver, and Sequoia Capital India among its backers.ST PHOTO: CHONG JUN LIANG

Sep 15, 2021


SINGAPORE (BLOOMBERG) - Carousell, a Singapore-based online classifieds marketplace operator, raised US$100 million (S$134.4 million) in a round led by South Korean private equity firm STIC Investments.
The investment brings Carousell's valuation to US$1.1 billion, according to a statement from the company on Wednesday (Sept 15).
Carousell joins a growing list of unicorns, or private companies valued at more than US$1 billion, in Singapore.
The start-up was founded in 2012 and now counts Telenor Group, Rakuten Ventures, Naver, and Sequoia Capital India among its backers.
The marketplace has since expanded to eight markets across South-east Asia, Taiwan and Hong Kong, allowing users to buy and sell a diverse range of products including cars, lifestyle, gadgets and fashion accessories.

 

[LITTLEREDDOT]

Lose money by the hundreds of millions but can become the richest man in Singapore. Nice.

Singapore's Sea raises $8 billion in mega fund raising​

It would be the largest share sale by a South-east Asian firm since Singtel's US$1.8 billion sale in 1996.PHOTO: REUTERS

SEP 10, 2021, 1:14 PM



HONG KONG (BLOOMBERG) - Singapore online gaming and e-commerce firm Sea has raised about US$6 billion (S$8.1 billion) in a sale of United States shares and convertible bonds, in the biggest ever equity offering by a South-east Asian company.
Sea priced 11 million American depositary shares at US$318 each, according to a statement, raising about US$3.5 billion and confirming an earlier Bloomberg News report. The share price represents a discount of about 1.4 per cent to the Tencent Holdings-backed company's last close of US$322.60 in New York.
The share offering includes a potential overallotment which, if exercised, would increase its size to about US$4 billion.
It would be the largest share sale by a South-east Asian firm since Singtel's US$1.8 billion sale in 1996, according to data compiled by Bloomberg.
The company also priced US$2.5 billion in convertible bonds due in 2026, paying a 0.25 per cent coupon, the statement showed. Sea plans to use the proceeds for purposes including business expansion and potential strategic investments and acquisitions.
South-east Asia's most valuable company has rapidly expanded its market share in e-commerce and gaming during the pandemic, riding hit titles such as shooter game Free Fire as well as its Shopee online shopping app. Its founder Forrest Li became Singapore's richest person in August after shares of his company surged.

 

[LITTLEREDDOT]

Re-posting from another thread:

Massive loss-making company is worth US$40 billion (the value of its merger deal agreed with US special-purpose acquisition company (SPAC) Altimeter Growth Corp earlier this year)?

Grab Q2 loss widens to $1.09 billion, cuts full-year outlook on Covid-19 spread​

Grab said it expects to report group-level adjusted net sales of US$2.1 billion to US$2.2 billion.PHOTO: REUTERS

Sep 14, 2021

SINGAPORE (THE BUSINESS TIMES) - Grab sank deeper into the red in its second quarter, even as revenue more than doubled.
South-east Asia’s ride-hailing and delivery giant cut its full-year projections for several key matrix this year, citing renewed uncertainty amid the Covid-19 pandemic.
It posted a net loss of US$815 million (S$1.09 billion) for the three months ended June 30, exceeding the US$718 million net loss recorded a year earlier. This was due mainly to an increase in interest expense on Grab’s convertible redeemable preference shares, a non-cash item.
Grab's revenue for the quarter swelled 132 per cent year on year to US$180 million. The bulk of US$118 million in revenue came from the mobility segment, where revenue jumped 128 per cent.
The deliveries segment was up 92 per cent to hit US$45 million, while the company’s financial services contributed US$6 million.
“We had a strong quarter with double- and, in some cases, triple-digit growth year-over-year across all of our core verticals. This was in spite of a worsening Covid-19 environment, which saw many South-east Asian countries tightening movement restrictions as cases surged,” said Mr Anthony Tan, group CEO and co-founder.

Grab's total gross merchandise value (GMV), a metric used to measure transaction volumes, jumped 62 per cent to a record US$3.9 billion. GMV for deliveries grew 58 per cent to US$2.1 billion, while GMV for mobility rose 93 per cent to US$685 million.
“Our deliveries business continues to outperform and is growing rapidly with the addition of new offerings such as GrabMart and GrabSupermarket, and we expect to continue investing heavily in this segment,” Mr Peter Oey, Grab’s chief financial officer, said.
Grab expects to report group-level adjusted net sales of US$2.1 billion to US$2.2 billion, a step down from the US$2.3 billion it initially projected in April. It expects full-year gross merchandise value of US$15 billion to US$15.5 billion, trimmed from an earlier forecast of US$16.7 billion.
Grab also forecast adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) loss of US$0.7 billion to US$0.9 billion for this year compared with a previously projected Ebitda loss of US$0.6 billion.
“Grab’s full-year 2021 outlook anticipates an extension of partial and complete lockdowns throughout several countries where Grab operates as a result of the continuing spread of Covid-19,” the company said.
As at end-June, Grab had US$5.3 billion in cash and cash equivalents, up from US$3.7 billion as of end-2020. Total outstanding debt was US$2.1 billion. This was primarily due to the closing of Grab’s first senior secured term loan facility of US$2 billion at the end of January.
The second quarter results come as Grab prepares to go public in the United States through a record deal with special purpose acquisition company (Spac) Altimeter Growth.
Grab said the US$39.6 billion merger is still expected to be completed in the fourth quarter. The deal was postponed from the third quarter as Grab works on a review of its financials.

 

[LITTLEREDDOT]

Govt, Temasek Holdings set up $1.5b fund to help high-growth tech firms seeking to list in S'pore​

The SGX will launch a Strategic Partnership Model to develop tailored solutions ranging from private market fund-raising to boosting liquidity for high-growth companies.PHOTO: ST FILE

Ovais Subhani

SEP 17, 2021

SINGAPORE - The Government unveiled a package of initiatives on Friday (Sept 17) to attract high-growth, high-tech local and regional companies to list on the Singapore Exchange (SGX).
The biggest initiative is the setting up of a fund, dubbed the Anchor Fund @ 65, with an initial tranche of $1.5 billion, that will assist promising high-growth companies raise capital through public listings here. The Government and Temasek Holdings will co-invest in the fund.
A high-growth company usually generates significant positive cash flow, which increases at a faster pace than the overall economy. However, they typically pay little to no dividends to stockholders, opting instead to put most or all of the profits back into its expanding business.
The Growth IPO Fund is another of the initiatives, this one focuses on late-stage private enterprises that are two or more funding rounds away from a listing. It will help them grow and prepare for an eventual initial public offering (IPO) here.
This IPO fund – with an initial tranche of $500 million – will be set up by EDBI, the investment arm of the Economic Development Board, and will mainly focus on future market leaders and technology innovators.
The Monetary Authority of Singapore (MAS) will also enhance its Grant for Equity Market Singapore (Gems) scheme, introduced in early 2019, to increase its support of companies seeking to list and to further develop Singapore’s equity research ecosystem.

The SGX on its part will launch a Strategic Partnership Model to develop tailored solutions ranging from private market fund-raising to boosting liquidity and global investor outreach for high-growth companies.
Speaking at the SGX’s Securities Market Open event on Friday morning, Minister for Trade and Industry Gan Kim Yong said Singapore will make a concerted push to establish itself as the listing destination of choice for local and global market leaders, especially from high-growth and high-tech sectors.
“In the coming years, many Singaporean and Asian companies in high-growth, high-tech sectors will come of age and seek to list on public markets. We should strive to anchor these companies in Singapore,” he said.
Expanding on the initiatives, Mr Gan said the Anchor Fund @ 65 will be managed on a commercial basis by 65 Equity Partners, a new and wholly owned investment platform of Temasek.

65 Equity Partners will also manage the $1 billion Local Enterprises Fund @ 65, which was announced in this year’s Budget to help large local enterprises transform, expand and scale.
Both the Anchor Fund @ 65 and Local Enterprises Fund @ 65 will have access to Temasek’s strong network and deep expertise and will be well positioned to help portfolio companies grow and flourish from founding to listing, the minister said.
The Gems listing grant, which helps to defray listing costs, will have its cap increased from $1 million to $2 million to better support listings of unicorn companies in Singapore. The grant will also be expanded to support listings by special purpose acquisition companies (Spacs).
To facilitate price discovery and boost trading liquidity, MAS will expand the Gems research talent development grant to co-fund hiring costs of research talent for two years, up from the earlier cap of one year.
“We know that the initiatives we are launching today are no magic bullet. But we believe they will blow new wind into the sails of our public equity market and make SGX not just a viable but a compelling option for innovative growth companies.”
Mr Gan said the package was not just for the sake of having high valuations or market cap.
“It is to give the most promising start-ups and entrepreneurs from Singapore and across the region another engine of growth, and to allow them to stay rooted here as they ride the wave of opportunity globally.”

Minister for Trade and Industry Gan Kim Yong (right) speaking at the SGX’s Securities Market Open event on Sept 17, 2021. PHOTO: MINISTRY OF TRADE AND INDUSTRY

A joint statement by the Ministry of Trade and Industry, the MAS and Temasek said the initiatives will enhance Singapore’s attractiveness as a destination for capital raising by local and regional enterprises.
SGX chief executive Loh Boon Chye noted: “There are many Asian and home-grown companies which are at the cusp of global success.”
The initiatives will build on recent SGX efforts to strengthen its trading platform, connectivity and its range of fund-raising options, including dual-listing collaborations with overseas exchanges and the launch of the Spacs framework.
“This inter-agency initiative further sets Singapore apart as a capital markets hub and is a first of its kind within the region that ensures success for market leaders through deep collaboration between public and private sectors,” said Mr Loh.

 

[LITTLEREDDOT]

Funding initiative seen as a booster shot for SGX, but investor zest will be key to success​

The SGX has for years struggled with delistings and low volumes.PHOTO: ST FILE

Ovais Subhani


SEP 17, 2021

SINGAPORE - The $2 billion multi-agency package announced on Friday (Sept 17) will help revitalise new listings on the Singapore stock market but an extra push may be required to whet local investor appetite for high-growth and high-tech companies that have been uncommon on the bourse here.
Financial experts and market players said the stars may be aligning for the local market as many companies in the medtech, biotech, fintech and sustainability space, as well as potential future leaders in healthcare and industrial sectors in Singapore and across the region are looking for a home.
Some of these companies, including local names that have listed elsewhere or are in the process of holding an initial public offering (IPO) abroad, may seek secondary listings here.
The Financial Times reported in June that Singaporean firms looking for a secondary listing here include Sea, the holding company for Shopee and Garena that is listed in New York, Hong Kong-listed gaming group Razer and ride-hailing and food delivery app Grab, which is separately listing via a special purpose acquisition company (Spac) in the United States.
Foreign issuers from mainland China and Hong Kong which may have been deterred by Beijing's recent policy changes could also head to Singapore for a secondary listing.
Mr Tham Tuck Seng, capital markets leader at PwC Singapore, said Singapore is one of the main alternative venues for secondary listings for Chinese companies and some in the technology-media-telecommunication space may list here.

The Singapore Exchange (SGX) has for years struggled with delistings and low volumes, giving rise to the perception that the local market has lost its vitality.
That is why the emphasis in the package of initiatives is on attracting high-growth and high-tech companies and is meant to address the dearth of listings from the tech sector that led to a startling rally in the United States and some other markets following the initial Covid-19 lockdown last year.
Most markets in South-east Asia, including Singapore, are seen as laden with old-economy finance and real estate stocks. As a result, the MSCI Asean Index has underperformed similar gauges for Asia-Pacific and world equities since markets started to recover last year.
The dominance of traditional companies has suppressed returns for an even longer period. The benchmark Straits Times Index has returned an annualised 6 per cent over the past five years in US dollar terms, about half of the broader MSCI Asia Pacific Index's gains.
Hence, leading high-growth tech companies in the region like Singapore's Grab and PropertyGuru, and Indonesia's GoTo - the merged entity of Gojek and Tokopedia - are seeking more liquid and tech-savvy markets abroad.
For decades now, local investors have been given a steady diet of these old-economy stocks that ensure big payouts every quarter to keep their shareholders hooked.
So for most investors it will be a steep learning curve to get used to investing in high-growth tech companies that usually generate significant positive cash flows but pay little to no dividends, opting instead to put most or all of the profits back into their expanding businesses.
Mr Tham said there are growth companies already listed on the SGX but most of them trade at significant valuation discounts and have low liquidity as investors here are not familiar with their business.
"Whether investors' preference will switch to these high-growth companies will be very much dependent on the awareness created by the capital market ecosystem to enable investors here to have more depth and sophistication in their understanding of these companies," he said.

However, Mr Murli Ravi, co-founder of venture capital firm Tin Men, said there is no paucity of savvy Singaporean investors who may have been investing in growth opportunities elsewhere amid the lack of such firms here.
Mr Max Loh, EY Asean IPO leader, said that how local investors view new high-growth companies will depend on their varied risk profiles and appetite, factors that cannot be controlled or easily projected.
"What can be done is to uplift the entire equity listing ecosystem, bring back the buzz to SGX equities, whether it be existing or new companies, and offer investors more options by which they can make informed choices to invest or otherwise," he added.
Mr Robson Lee, partner at law firm Gibson Dunn, said Singapore will also have to confront the perception among most high-growth and successful tech companies that in the past have given the SGX a wide berth.
"This has been due to an ingrained perception that the Singapore market has poor liquidity and depressed valuations, which is anathema to high-growth companies seeking public listing as a spring-board to greater growth and scalability."

Moreover, Mr Lee said that while the joint collaboration by the Government, Temasek and the SGX is unprecedented and will reinvigorate the market, the new initiatives are by no means the panacea.
"There must be institutionalised follow-through with clarity and consistency in execution, monitoring and constant revamp to fine-tune and improve implementation to achieve the desired policy objectives," he noted.
"As they say, the devil lies in the details. There must be clarity of objectives and an institutionalised and systematic proper follow through."
Mr Lee also said that high qualifying standards and accountability for use of funds offered in the package by the Monetary Authority of Singapore, Temasek and EDBI, the investment arm of Economic Development Board, should separate the gold from the dross. But these standards should not be perceived as barriers that deter bona fide listing aspirants

 

[maxsanic]

First of all, we must understand that as far as the founders and employees of such tech companies are concerned, making a profit isn't high on the agenda for them. Most just want to generate newsworthy excitement to attract funding at ever higher valuations before cumulating in a bonanza post IPO.

For the founders, employees with stock options/equity and PE investors, the company is deemed a success upon IPO at a good price. They do not give a dam on whether it's making money or not. Those that subscribe for IPO just need to offload upon listing at a good price while the secondary public buyers are hoping to time the markets to make a profit.

It's a greater fool theory game for these fancy tech and fintech companies, most of the people involved couldn't care less when the company in question will turn profit or even if there's a viable path to ever breakeven.

 

[thomasfoster]

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[LITTLEREDDOT]

Funds pouring in across start-up ecosystem in Singapore​

Homage Founder and CEO Gillian Tee. Homage raised US$30 million in its recent financing round.PHOTO: HOMAGE

Choo Yun Ting


SEP 20, 2021


SINGAPORE - There's no lack of action in the local start-up scene with several firms landing fresh funds from investors in recent months.
The money has been pouring in across the start-up ecosystem, with firms in the healthcare and medical fields among those in the limelight.
Take health services start-up Homage, which announced earlier this month that it raised US$30 million (S$40.3 million) in its recent financing round.
The round was led by Temasek unit Sheares Healthcare Group and included the participation of venture capital firms DG Daiwa Ventures and Sagana Capital. Homage said the funds will be used to accelerate its regional expansion and scale its platform.
Telehealth provider Doctor Anywhere was another beneficiary of the investment surge.
Its $88 million funding round closed on Aug 31 after attracting investors such as private equity firm Asia Partners, the Economic Development Board's investment arm EDBI, and healthcare group IHH Healthcare.

The company has around 2,800 doctors and medical professionals in its network across five countries in South-east Asia, it said.
Telemedicine players, including Doctor Anywhere, have benefited from the accelerated adoption of telehealth services in the region amid the pandemic.
Another medical technology start-up that drew investor interest was mental health firm Intellect, which announced last month that it raised US$2.2 million.
The company, which launched in April last year, provides mental health benefits solutions for employers as well as a consumer-targeted app with self-guided digital therapy programmes.
Overall, the funding picture has been more robust this year and is in line with the global economic recovery.
Tech start-ups here raised $5.3 billion in the first half of this year, up from $3.4 billion in the same period last year, noted Enterprise Singapore last month.
There were 355 fund-raising deals closed in the period, well up on the 317 last year.

Telehealth provider Doctor Anywhere was another beneficiary of the investment surge. PHOTO: DOCTOR ANYWHERE

Singapore has also added several unicorns - unlisted start-ups valued at US$1 billion or more - to its ranks this year, including online classifieds firm Carousell. It raised US$100 million in its latest funding round to reach a US$1.1 billion valuation, the firm announced last week.
Meanwhile, e-commerce brand aggregator Rainforest announced its US$20 million funding round led by venture capital firm Monk's Hill Ventures earlier this month.
The company aims to use the funds to acquire more Asia-based e-commerce brands and scale them, primarily in the home goods, mother and children, personal care and pet segments.
Last month, Singapore-based Rocket Academy, which develops online coding courses, announced that it had raised $1.5 million from a mix of angel investors and venture capitalists.
The firm looks to help address the industry-wide shortage in software engineers through its courses. It has developed two courses - an introductory programme for beginners to learn the basics of coding, and one to prepare students for a career in software engineering.
Automotive start-up Motorist closed $1.2 million in seed funding earlier this month in a round led by angel investor and jobs portal JobsCentral co-founder Lim Der Shing.
Motorist, which provides transaction and other services to vehicle owners, is seeking to expand into Thailand, which would be its third market.
At the same time, tech start-up Rider Dome, which provides a collision alert system for motorcycle riders, raised US$1 million in pre-seed funding.
It is focusing on providing its safety systems to large delivery fleets and motorcycle manufacturers.

 

[LITTLEREDDOT]

Ninja Van raises US$578m from investors inlcuding Alibaba​

Investors are betting on transportation, logistics and warehouse companies amid a boom in e-commerce.
PHOTO: LIANHE ZAOBAO

Sep 26, 2021

(BLOOMBERG) - Ninja Van, a Singaporean logistics startup, raised US$578 million from investors including Chinese e-commerce giant Alibaba Group Holding in a series E round.
Existing investors B Capital Group, the venture capital firm set up by Facebook Inc. co-founder Eduardo Saverin and Raj Ganguly, a former executive at Bain Capital, and European parcel delivery company Geopost/DPDgroup, also participated in the fundraising, according to a statement.
The new funding round will help lift the company's valuation to well beyond US$1 billion ahead of a potential initial public offering as early as next year, people familiar with the matter have said.
Venture capital firm Monk's Hill Ventures and Zamrud, an existing investor linked to a Southeast Asian sovereign wealth fund, also joined the round. Ninja Van plans to use the funds to better its infrastructure and technology, as it seeks to be cost efficient while improving the quality of its operations.
Investors are betting on transportation, logistics and warehouse companies amid a boom in e-commerce, one of the beneficiaries of the coronavirus pandemic.
Founded in 2014, Ninja Van operates in six markets in Southeast Asia and delivers close to 2 million parcels a day in the region, according to its website. It raised US$279 million in a series D round last year where participants included ride-hailing firm Grab Holdings Inc.

Ninja Van's clients include PT Tokopedia, which has merged with ride-hailing giant Gojek to create GoTo, Indonesia's most valuable startup, Alibaba's Lazada Group and Shopee, a unit of Singapore-based Sea Ltd. The logistics startup also works with global consumer groups such as Unilever Plc and with smaller shops.
"The quality of investors joining us in this round of investment is a clear signal that the market recognises the emerging opportunities for e-commerce logistics in Southeast Asia and how as an entrenched player in the region, Ninja Van is positioned to take a central role in meeting the shifting demands of both businesses and consumers," said Mr Lai Chang Wen, co-founder and chief executive officer of Ninja Van Group.
Mr Kenny Ho, head of investment for Southeast Asia at Alibaba Group, said: "With Ninja Van's vast presence and extensive local insights in the region, we are confident that our partnership with Ninja Van would enable us to better serve participants in the e-commerce ecosystem across the region."

 

[sweetiepie]

Ninja Van raises US$578m from investors inlcuding Alibaba

All these Chao turtle are making losses

 

[LITTLEREDDOT]

More Asean start-ups became unicorns thanks to robust funding, rising middle class: Report​

Fifteen start-ups in Singapore and 11 in Indonesia account for the lion's share of the region's 35 unicorns.ST PHOTO: KUA CHEE SIONG

Choo Yun Ting

Oct 21, 2021


SINGAPORE - More start-ups in South-east Asia have attained unicorn status - valuations of US$1 billion (S$1.34 billion) or more - in the past couple of years, driven by factors such as robust funding from the private equity markets and rising middle class.
In 2021 alone, 19 start-ups in the region saw an increase in valuation to above US$1 billion, according to a report on Asean start-ups by Credit Suisse earlier this month.
Fifteen start-ups in Singapore and 11 in Indonesia account for the lion's share of the region's 35 unicorns.
Among recent additions to the Republic's list of unicorns are used car marketplace Carro and logistics firm Ninja Van.
Credit Suisse's list excludes start-ups that are in the process of public listing, such as super app Grab, which is headquartered in Singapore.
About a quarter of Asean unicorns are in the fintech space and 20 per cent are in e-commerce, followed by logistics (11 per cent) and diversified Internet/technology (8 per cent).



Most of the unicorns have a consumer-led business model, with very few in the business-to-business space.
The report highlighted that while private equity deals have outweighed public market funding for start-ups in the region, this could soon change. Markets are assigning high values to Asean tech, it said.
The report attributed robust growth in the number of Asean unicorns to several reasons: demographics, expanding middle class, increase in smartphone and data usage, as well as growth in private equity capital.
It noted that some of the Asean-6 countries - Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam - have among the youngest demographics in the world, which means that the region is likely to be more willing to adopt new technologies.

The rising middle class is linked to the consistent increase in gross domestic product per capita over the last decade.
A large amount of private equity activity has historically centred on Singapore and Indonesia, although Malaysia and Vietnam have also seen higher activity recently, the report highlighted.
Singapore is generally viewed as a favourable place for raising capital, due to reasons such as its high levels of corporate governance.
Quest Ventures partner Jeffrey Seah told The Straits Times that a start-up's valuation is derived from factors such as its capabilities and accessibility of its products.

He noted instances when start-ups have raised funds at a lower valuation compared with a previous funding round.
This was seen for some firms last year, when their sales projections did not materialise or when expansion did not go as planned.
"The Covid-19 pandemic exacerbated this occurrence across the South-east Asia markets," Mr Seah added.
Credit Suisse's report noted how Covid-19 has positively impacted several sectors, such as fintech and e-commerce.
For example, the pandemic has accelerated the adoption and migration to digital channels for financial services and these trends are expected to remain in the longer term given greater convenience and lower costs to consumers, it said.
Governments in the region have rolled out policies and initiatives to promote digital payments, with the intentions of boosting non-cash usage and financial inclusion.
Alumni of successful start-ups and tech companies are emerging as founders of new start-ups, the report added.
"Consequently, a virtuous cycle may ensue, where increased growth will lead to greater investment and further development of the ecosystem that will in turn produce more company founders or co-founders or chief executives in South-east Asia."

 

[LITTLEREDDOT]

Grab posts $1.34 billion net loss for Q3, as Covid-19 curbs hit ride-hailing in region​

Fresh outbreaks in South-east Asia hit Grab's mobility unit that fell behind its deliveries business, its largest by billings.PHOTO: ST FILE

Nov 12, 2021

BENGALURU (REUTERS) - South-east Asia's largest ride-hailing and food delivery firm Grab Holdings on Thursday (Nov 11) reported a net loss of US$988 million (S$1.34 billion) for the July-September quarter, 59 per cent more than the year-ago loss of US$621 million.
Total revenue for the third quarter fell 9 per cent to US$157 million, from US$172 million a year earlier, as its ride-hailing business was hit by Covid-19 curbs in some countries in the region.
Fresh outbreaks in South-east Asia hit Grab's mobility unit that fell behind its deliveries business, its largest by billings. Its mobility business brought in US$88 million in revenue, down 26 per cent from a year earlier, while sales at its deliveries unit rose 58 per cent.
"Mobility and food delivery services were suspended in Vietnam for most of the third quarter, and six of our core countries in which we operate experienced tighter movement controls," said chief financial officer Peter Oey.
Chief executive Anthony Tan told an investor webcast that the company expects major recovery for the ride-hailing business in the fourth quarter, especially in Indonesia, Malaysia and Vietnam, as vaccination rates increase in the region, the Nikkei Asia reported.
Grab's gross merchandise value - the total value of transactions made through Grab's platform - rose 32 per cent to a quarterly record of US$4 billion, due to expansion in its delivery and financial services.

The company's adjusted loss before interest, taxes, depreciation and amortisation widened 66 per cent to US$212 million in the third quarter.
Including non-cash items, net loss came to US$988 million.
The non-cash items of US$748 million include US$443 million in interest expense from Grab's convertible redeemable preference shares, which would cease upon listing. Another US$217 million came from stock-based compensation and fair-value losses on investments.
Singapore-based Grab announced in April it will go public via a record-setting merger with a special purpose acquisition company.
On Thursday, Grab said the planned merger with US-based Altimeter Growth Corp "continues to progress and is expected to close in the fourth quarter of 2021".
The deal valued Grab at nearly US$40 billion and would enable the company to be listed on Nasdaq.
Founded in 2012 as a regional taxi app in Malaysia, Grab provides ride-hailing, food and grocery deliveries, mobile banking and payments in more than 400 cities in eight countries in South-east Asia.

 

[tanwahtiu]

Funding initiative seen as a booster shot for SGX, but investor zest will be key to success​

The SGX has for years struggled with delistings and low volumes.PHOTO: ST FILE

Ovais Subhani


SEP 17, 2021

SINGAPORE - The $2 billion multi-agency package announced on Friday (Sept 17) will help revitalise new listings on the Singapore stock market but an extra push may be required to whet local investor appetite for high-growth and high-tech companies that have been uncommon on the bourse here.
Financial experts and market players said the stars may be aligning for the local market as many companies in the medtech, biotech, fintech and sustainability space, as well as potential future leaders in healthcare and industrial sectors in Singapore and across the region are looking for a home.
Some of these companies, including local names that have listed elsewhere or are in the process of holding an initial public offering (IPO) abroad, may seek secondary listings here.
The Financial Times reported in June that Singaporean firms looking for a secondary listing here include Sea, the holding company for Shopee and Garena that is listed in New York, Hong Kong-listed gaming group Razer and ride-hailing and food delivery app Grab, which is separately listing via a special purpose acquisition company (Spac) in the United States.
Foreign issuers from mainland China and Hong Kong which may have been deterred by Beijing's recent policy changes could also head to Singapore for a secondary listing.
Mr Tham Tuck Seng, capital markets leader at PwC Singapore, said Singapore is one of the main alternative venues for secondary listings for Chinese companies and some in the technology-media-telecommunication space may list here.

The Singapore Exchange (SGX) has for years struggled with delistings and low volumes, giving rise to the perception that the local market has lost its vitality.
That is why the emphasis in the package of initiatives is on attracting high-growth and high-tech companies and is meant to address the dearth of listings from the tech sector that led to a startling rally in the United States and some other markets following the initial Covid-19 lockdown last year.
Most markets in South-east Asia, including Singapore, are seen as laden with old-economy finance and real estate stocks. As a result, the MSCI Asean Index has underperformed similar gauges for Asia-Pacific and world equities since markets started to recover last year.
The dominance of traditional companies has suppressed returns for an even longer period. The benchmark Straits Times Index has returned an annualised 6 per cent over the past five years in US dollar terms, about half of the broader MSCI Asia Pacific Index's gains.
Hence, leading high-growth tech companies in the region like Singapore's Grab and PropertyGuru, and Indonesia's GoTo - the merged entity of Gojek and Tokopedia - are seeking more liquid and tech-savvy markets abroad.
For decades now, local investors have been given a steady diet of these old-economy stocks that ensure big payouts every quarter to keep their shareholders hooked.
So for most investors it will be a steep learning curve to get used to investing in high-growth tech companies that usually generate significant positive cash flows but pay little to no dividends, opting instead to put most or all of the profits back into their expanding businesses.
Mr Tham said there are growth companies already listed on the SGX but most of them trade at significant valuation discounts and have low liquidity as investors here are not familiar with their business.
"Whether investors' preference will switch to these high-growth companies will be very much dependent on the awareness created by the capital market ecosystem to enable investors here to have more depth and sophistication in their understanding of these companies," he said.

However, Mr Murli Ravi, co-founder of venture capital firm Tin Men, said there is no paucity of savvy Singaporean investors who may have been investing in growth opportunities elsewhere amid the lack of such firms here.
Mr Max Loh, EY Asean IPO leader, said that how local investors view new high-growth companies will depend on their varied risk profiles and appetite, factors that cannot be controlled or easily projected.
"What can be done is to uplift the entire equity listing ecosystem, bring back the buzz to SGX equities, whether it be existing or new companies, and offer investors more options by which they can make informed choices to invest or otherwise," he added.
Mr Robson Lee, partner at law firm Gibson Dunn, said Singapore will also have to confront the perception among most high-growth and successful tech companies that in the past have given the SGX a wide berth.
"This has been due to an ingrained perception that the Singapore market has poor liquidity and depressed valuations, which is anathema to high-growth companies seeking public listing as a spring-board to greater growth and scalability."

Moreover, Mr Lee said that while the joint collaboration by the Government, Temasek and the SGX is unprecedented and will reinvigorate the market, the new initiatives are by no means the panacea.
"There must be institutionalised follow-through with clarity and consistency in execution, monitoring and constant revamp to fine-tune and improve implementation to achieve the desired policy objectives," he noted.
"As they say, the devil lies in the details. There must be clarity of objectives and an institutionalised and systematic proper follow through."
Mr Lee also said that high qualifying standards and accountability for use of funds offered in the package by the Monetary Authority of Singapore, Temasek and EDBI, the investment arm of Economic Development Board, should separate the gold from the dross. But these standards should not be perceived as barriers that deter bona fide listing aspirants

Cryptocurrency fintech the way to go.... it's all about who can come up with better models of codings and cybesecurites in IT.

Start getting to all these IT bullshits...

1. Start learning what is financial analysis.... anal...y..sis... anal your itchy ass...

2. Branch into financial analyse the financial market... trade in securities... not invest in securities....

3. Learn algorithmic trading to trade in securities SP500, Forex, cryptocurrency and etc....

Looking into trading in taxes... go use your tax money to trade before you pay.... profit goes to offset your taxpayable amount... say you need pay $20,000 tax this year, put up as security to an agent to trade in SP500 for few months, for example.

Use the profits to offset you tax payable amount... something like that...

 

[LITTLEREDDOT]

Sea Q3 loss widens to $610.8m on higher expenses as revenue surges 122%​

The net loss widened 32 per cent from US$340.8 million a year ago.PHOTO: REUTERS
Claudia Chong

Nov 17, 2021

SINGAPORE (THE BUSINESS TIMES) - Singapore-based Sea, which owns e-commerce platform Shopee and game developer Garena, reported on Tuesday (Nov 16) a third-quarter net loss of US$450.1 million (S$610.8 million), after excluding share-based compensation.
The net loss widened 32 per cent from US$340.8 million a year ago.
Loss per share was US$0.84, compared with US$0.69 a year ago, missing an estimate of US$0.762 based on a Bloomberg poll of five analysts.
Sea, which is listed on the New York Stock Exchange, saw operating expenses rise 105.8 per cent to US$1.5 billion during the quarter, with sales and marketing comprising two-thirds of costs.
Revenue, however, surged 121.8 per cent to US$2.7 billion for the three months ended Sept 30. Gross profit increased 147.5 per cent to US$1 billion.
Under the e-commerce segment, revenue increased 134.4 per cent from the year before to reach US$1.5 billion.

Sea again raised its guidance for e-commerce for the full year of 2021. It expects revenue for e-commerce to be between US$5 billion and US$5.2 billion, up from US$4.7 billion to US$4.9 billion. This represents a 135.3 per cent growth from last year at the midpoint of the revised guidance.
Gross orders rose 123.2 per cent to 1.7 billion while gross merchandise value increased 80.6 per cent to US$16.8 billion.
But adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) loss for the segment widened to US$683.8 million from US$301.6 million in the third quarter of last year. Sea said this translated to an Ebitda loss per order of US$0.41, in line with the year before. Ebitda was adjusted for share-based compensation, and depreciation and amortisation expenses.
Ms Kristine Lau, an analyst at research house Third Bridge, said Shopee's increased commission rate across Asean and Taiwan signals increasing pricing power due to market share gains.

"Shopee's swift merchandising strategy and aggressive campaigns have reinforced its leading positioning. Its expansion into other seller services such as advertising and Shopee Express also contribute towards steady growth in both first-party and third-party seller take rate expansion," she said.
Ms Lau added that the regional e-commerce industry remains highly competitive, with Tokopedia and Lazada in aggressive expansion mode. "However, our experts point out that Shopee's strong user traffic and particular edge in advertising offerings also help onboard and retain branded retailers, leading to a network effect of wider stock keeping unit selection and order volume growth."
Under Sea's digital entertainment segment, which is the group's gaming arm, revenue rose 93.2 per cent to US$1.1 billion. Bookings, which represent generally accepted accounting principles revenue plus change in deferred revenue, totalled US$1.2 billion, up 29.2 per cent.
Adjusted Ebitda was up 22.3 per cent to US$715.1 million. Ebitda was adjusted for share-based compensation, depreciation and amortisation expenses, and the net effect of changes in deferred revenue and its related cost for the segment.

Adjusted Ebitda, however, represented 58.6 per cent of bookings, lower than the 61.9 per cent recorded in the third quarter of last year.
Quarterly active users rose 27.4 per cent to reach 729 million; quarterly paying users grew 42.7 per cent to 93.2 million. Sea said average bookings per user was US$1.70, in line with that for the third quarter of last year.
The group added that it continues to see strong growth in the adoption of SeaMoney's offerings. The total payment volume for its mobile wallet was US$4.6 billion in the third quarter, an increase of 111 per cent.
Quarterly paying users for the mobile wallet services increased to 39.3 million, from 32.7 million in the second quarter of this year.
The group had US$12.5 billion of cash on its balance sheet as at end-September, up from US$7 billion as at end-December last year. Sea raised US$6.3 billion in the largest equity offering of the year in September this year.

On the back of its earnings report on Tuesday, the group announced the appointment of Mr Chris Feng as group president effective Jan 1. Mr Feng, who drove Shopee's meteoric rise as an e-commerce player in South-east Asia, will continue in his roles as chief executive of Shopee and SeaMoney.
Shares of Sea closed 3.8 per cent lower at US$329.91 on Tuesday, after its results were announced.

 

[syed putra]

Cryptocurrency fintech the way to go.... it's all about who can come up with better models of codings and cybesecurites in IT.

Xi jinping does not agree with you.

 

[tanwahtiu]

Xi jinping does not agree with you.

Techie money.... for developers...

 

[nirvarq]

Big Corporations' lost are real but who cash out first ? Didn't the Jinx cash out first b4 our water flux collapse ? lol....

 

[syed putra]

Big Corporations' lost are real but who cash out first ? Didn't the Jinx cash out first b4 our water flux collapse ? lol....

Are you suggesting possible insider trading?