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Since the start of the newsletter, we always talked about incorporating longer-form content into the weekly editions. For the first few issues, it came in the form of a deep dive. However, to maintain consistency and quality, we opt out of continuing it in hopes of giving you something rather quick to munch on. You’ll see the usual programming (quick bits, done deals, interesting articles) but iterated in a different format. We’ll gradually try to include other content. Don’t hesitate to reach out to me - jeffrey.dong@insead.edu - if you have any feedback, criticism or ideas you want to shoot (the more creative, the better) for the newsletter. See you below!
$300 billion. Unfortunately, that’s how much Tesla nearly lost in market cap since January. Fortunately, it’s also the value at which Southeast Asia’s internet sector is expected to be worth by 2025, largely driven by e-commerce. Among the fastest-growing economies in the region lies a country known for its cheap coffee, delicious bánh mì and pho, and large dependency for motorbikes.
Vietnam is one of the fastest-growing e-commerce markets in Southeast Asia. With a large portion of its population going online, there’s an increasing appetite for startups to fill in the void and support their e-needs on the day-to-day. The void only increases, though, when most of the support from large e-commerce players is concentrated in large cities, leaving the others guys (second-tier cities, rural areas) out to dry.
Enter Mio. The less-than-a-year-old startup is focused on building a reseller network and logistics infrastructure that cater towards the other guys, with shorter wait times for deliveries and greater access to supply networks. Its value add marks a larger phenomenon that we’re seeing in the region. Consumers living in second-tier cities have demonstrated buying power, much of which have been unexplored by major e-commerce players. Interestingly enough, much of Mio's growth and future success mirrors Pinduoduo’s in large part to the tightly-knitted social network that exist between communities of friends and family members (here’s a deep analysis into the rise and success of social commerce).
Mio garnered $1m in seed funding this week, co-led by Venturra Discovery and Golden Gate Ventures.
Quick Bits 🌎
Recap in the West
Google proudly launches next-gen AI chips and a new ML platform. Apple takes on Spotify by adding lossless audio for free. SpaceX sends out 52 more Starlink satellites. R.I.P. Internet Explorer. Microsoft Teams for personal use exits preview. Google’s productivity apps are getting love with Smart Canvas. Twitter revamps user profiles and re-opens account verification. The U.S. tightens crypto rules. StepStone acquires conversational AI Mya. Snap makes moves in AR with WaveOptics and announces new generation for its AR glasses. Ro buys reproductive health company Modern Fertility. Squarespace's direct listing flops. Monday.com goes public. Bright Machines gets SPAC’d.
Done Deals ✍🏼
📈 Berlin’s brokerage app Trade Republic nabs $900m (Series C) led by Sequoia, valued at $5.3bn
💰 Miami-based Pipe, a global trading platform for recurring revenue streams, picks up $250m at a $2bn valuation led by Greenspring Associates after insane growth
🛡️ San Francisco-based Extend picks up $260m (Series C) at a $1.6bn valuation led by SoftBank to become the Apple Care for everything that's not an actual Apple product
🔋 Munich-based battery analytics company TWAICE powers up with $26m (Series B) led by Energize Ventures
📱 France-based Back Market, a marketplace for refurbished consumer electronics, raises $338m (Series D) at a $3.2bn valuation to build a circular economy giant
Recap in the East
Gojek and Tokopedia go together to form GoTo. India warns WhatsApp about new policy update. ByteDance founder and CEO Zhang Yiming says farewell. Sea Group doubles its quarterly revenues, thanks to gaming, e-comm & digital media. Grab finds a recurring foe in Vietnam. In-the-red JD Logistics raises $3.4bn for an IPO. So where does Ant Group go from here? Zero-commission brokerage apps are contending for Gen Z’s crave to trade in Singapore. Hong Kong takes a stand against retail crypto trading. China’s BYD builds its EV dreams in Europe. Japan doesn’t wait to get into chipmaking as Taiwan promises to keep the supply of chips flowing. ShopeeFood’s on a mission to dine customers in its attempt to challenge Grab and Gojek. Indonesian e-travel startup Tiket.com and fintech firm Kredivo weigh SPACs.
Done Deals ✍🏼
💳 Pine Labs, a merchant commerce platform, closes $285m to expand its offerings and build and scale an online payments gateway
🌱 Indonesian agritech firm TaniHub harvests $65.5m (Series B) to further build out its supply chain, expand coverage and improve its supply-demand forecast models for crop cultivation and timing
👓 Bengaluru-based omnichannel eyewear brand Lenskart raises $95m from KKR to grow its presence in India, scale its operations overseas and enhance its digital offerings to augment customers’ virtual and omni-store experience
💳 Singapore’s payments startup Thunes raises $60m (Series B) led by Insight Partners to expand its global network in Africa, Asia and Latin America and grow its team
🏪 BukuKas, a startup aimed to digitize Indonesia’s SMEs, bags $50m (Series B) from angel investors like DoorDash executive Gokul Rajaram and TransferWise co-founder Taavet Hinrikus to bring in 20m business customers by next year
There’s more than enough deals to go around and we want to make this newsletter as easy and digestible to read for you. We created a Notion page as an extension to show you other deals we’re following. Click here!
What Else We're Following 👀
Focusing on the creator, catering to targeted followers, creating new ways to engage: here's why social media and the creator economy can coexist (Clash App)
"I work at Google from 9am to 5pm and I work for Bessemer early in the morning, late at night and a bit during the weekend.” How Casey Caruso juggles being an engineer by day and a venture capitalist by night (Medium)
"In front of 16,300,000 people, the stakes are high. Mistakes will not be tolerated. Cellulite will not be tolerated. In the game, you must be perfect" - the not-so-easy life of modern content creators (Letters from Home & Away)
Creators and Fans vs Online Aggregators - with the help of Web3 (Drinking from the Firehose)
A new bubble? Taking a closer look at the soaring valuations of open banking companies (Sifted)
Thomvest Ventures' Donald Buttler on predicting venture outcomes in light of the COVID pandemic (Medium)
Who’s Hiring 👩🏽💼
For this week’s job postings (internships & full-time), please check out our Notion page here.
Feedback time!! 🙏
Please answer our 2-min survey here. Your feedback is invaluable! For any additional comments, feel free to email us at jeffrey.dong@insead.edu. We look forward to seeing you in the next issue!
Another week is in the books! We’ll be back in your inbox next Sunday with more quick bits on what’s happening. Stay tuned!
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