Ride-hailing to food delivery: Geolah founder on building new superapp for S’pore and beyond
Established in 2020 by Deniel Singh and George Lim Ting, Geolah is touted to be a “next-gen tech platform” that offers a wide array of transportation services including ride-hailing, private chauffeur, carpool and parcel delivery.
The two founders had first met back in 2018 when Deniel was a vice president in a tech company, assisting startups and large enterprises to envision, innovate and build web and mobile platforms.
With over 23 years of experience in both business and IT, he possesses a deep understanding of the industry and a strong passion for creating service platforms to digitise different domains.
Meanwhile, Lim Ting is a self-made entrepreneur who has traveled the world while managing multiple businesses. His goal is to use digital transformation to make transportation and food more accessible and affordable for everyone, particularly for small and medium-sized enterprises (SMEs).
Geolah was born during the ‘circuit breaker’ period, and the business idea came about as a result of Deniel’s personal experience as a private-hire vehicle (PHV) driver. He had identified several challenges and gaps within the traditional ride-hailing business model, so the duo set out to find solutions.
I realised there were ground challenges and gaps within the business model. We eventually found possible solutions, and Geolah was then founded by locals for locals.
– Deniel Singh, co-founder and COO of Geolah
With Geolah, their mission is to create a superapp that offers a wide range of affordable transportation services and introduce zero commission fee for partner-drivers.
Drivers don’t have to pay any commission fees
According to Deniel, some of the standout factors of Geolah is that it offers flexible work hours and a better work-life balance for its drivers, as well as affordable ride fares and a digital driver onboarding process.
They also introduced zero-commission fees for its driver-partners — this means that all ride fares goes directly to the drivers, empowering them to meet their daily basic expenses such as daily car rental, petrol, parking et cetera.
Due to the high cost of car rental and petrol, [it] leads to lower income [for drivers]. We want our pool of partner-drivers to achieve maximum income to meet their daily basic needs.
– Deniel Singh, co-founder and COO of Geolah
In contrast, major platform players charge drivers between 10 and 20 per cent commission fees, which are deducted from each trip. Drivers only enjoy rebates or incentives when they complete a certain number of trips within a stipulated period.
Deniel added that since Geolah enables maximum earnings for partner-drivers, they monetise through rebates from strategic partners instead. Geolah allows big brands to launch targeted advertising campaigns and promotions on its platform and over time, it hopes that this will become a significant source of revenue by becoming a channel for sponsored content for both passengers and drivers.
With an aim to provide affordable fares for passengers, Geolah’s ride fares are calculated based on driver availability, distance, and the type of service.
To date, the startup has recruited over 540 drivers, and it aims to recruit 2.5 per cent of the total TDVL and PDVL pool of local drivers within the next 24 months. Citing statistics from the Land Transport Authority, Deniel said that there are currently approximately 90,000 TDVL and 47,000 PDVL drivers in Singapore.
Business roadmap for the next two years
In the next two years, Geolah will be progressively introducing other services such as carpool, AirportXpress, CrossBorder, land tours, parcel, food and grocery delivery services.
Its ride-hailing service GeoRide will be launching its beta trial on 14 February 2023, allowing passengers to book a ride for private-hire cars, fixed meter taxis and private chauffeurs for one, four, or eight-hour durations.
In the third quarter of this year, Geolah will also be rolling out “community rides” with the goal of providing subsidised and free rides.
We will educate and encourage our pool of partner-drivers to give back and volunteer to offer rides, such as fetching and sending animals from the Society for the Prevention of Cruelty to Animals (SPCA) to vets. We are also engaging other non-profit associations to offer community ride service for the less fortunate, disabled and elderly who needs to move around.
– Deniel Singh, co-founder and COO of Geolah
Then in the early fourth quarter of this year, Geolah will roll out its on-demand parcel delivery service, GeoMove.
Subsequently, from 2025 onwards, its online grocery delivery service GeoMart, online food ordering service GeoBites, and transportation service GeoTrans will be rolled out.
In particular, GeoTrans is a feature that’s unique to Geolah, which offers heavy trucking services such as ambulance, buses and trucks, for both the B2C and B2B segments.
With these slew of services, along with its zero-commission fees and affordable fares, Geolah hopes to attract more users and drivers onboard. By the end of 2023, it hopes to reach “thousands of users”.
Ultimately, it aims to shape itself to become a ‘superapp’ as it works on building a large user base, high engagement model, and a strong ecosystem of strategic partners.
We must continue to innovate and evolve to provide a better user experience and a reliable infrastructure. [As part of] our strategy to [gain more] market share, we emphasise in educating our partner-drivers on adopting our zero-commission fees and be open to feedback. We strongly believe this helps to identify areas of improvement to grow the Geolah community.
– Deniel Singh, co-founder and COO of Geolah
As a self-funded startup, Deniel claims that the founders have sufficiently invested to sustain the business for five years. As part of their growth plans, they are currently expanding the team and looking out for great talents to join the company.
Additionally, they are exploring new markets across Southeast Asia and Asia Pacific to increase its user base and revenue streams. In particular, they are expecting to launch in Brunei, Malaysia, Thailand, the Philippines, Myanmar, Cambodia, Laos, Hong Kong, Taiwan, Japan, Australia and New Zealand.
They are also working on identifying new technologies and trends to introduce to the platform, and is open for collaborations and partnerships.
Featured Image Credit: Geolah
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Tuft Club: How TikTok prompted these 3 friends to start up S’pore’s first rug tufting studio
Dating back to 5 BCE, tufting is a technique used in the creation of textiles, which was later automated in 1930 with the invention of the tufting gun.
From rugs to pillows and wall art, tufting is achieved by weaving loops of yarn through a fabric backing to create textiles with intricate and one-of-a-kind designs.
This craft rose to popularity abroad circa 2018 thanks to TikTok, but it only reached Singapore’s shores late 2021 when three Singaporeans — Carl Teh, Izac Tan, and Zoey Soh — founded Tuft Club, the first tufting studio in Southeast Asia and Singapore.
Tufting is not an easy craft
Close friends turned colleagues, the trio initially pooled around S$15,000 to run a small 400 square-foot painting and punch needle studio. Called Hueplay Studio, it offered art jamming sessions and punch needle (a form of hand-tufting) workshops for its customers.
Shortly after the studio’s launch in 2020, Singapore was struck by the COVID-19 lockdowns, which forced them to pause their operations. It was also during this circuit breaker period that the trio came across tufting, which became all the rage on mainstream media.
The three friends started experimenting with a tufting gun, trying their hand at making a makeshift frame.
Using a tufting gun is a pretty unique feeling, shooting yarn and painting with fiber almost. It’s fun, therapeutic, versatile and receiving the end product is really fulfilling.
– Carl Teh, co-founder of Tuft Club
Although gratifying, the trio soon realised that tufting was not an easy craft to get into.
Operating and maintaining tufting guns, learning different tufting techniques, sourcing suitable materials, building custom tufting frames, putting together tufted works — these were some of the challenges they faced along the way, which helped them understand why the craft was not as popular as it should be.
This prompted the inception of Tuft Club in 2021, which aims to provide a space centred around making tufting welcoming, easy and accessible, even for beginners.
We felt tufting had a lot to offer, and there wasn’t a better time to build a space that made it easy and accessible.
– Carl Teh, co-founder of Tuft Club
Starting from scratch
In order to save up enough to open Tuft Club, the three friends drew S$600 monthly salaries from their painting and punch needle studio business for one whole year.
With tufting being such a new craft, having not much to ground themselves on was also quite a challenge for the trio. They had to start Tuft Club from scratch, due to the lack of resources and the absence of similar players in both the local and international market.
“We had to source for materials from all over and meet and learn from different veterans in the industry to improve our craft,” said Carl. This included learning how to hand-build frames, tear apart and fix tufting guns, handle different machinery, and set up proper and sustainable finishing practices.
Beyond these technical requirements, the founders wanted to ensure the longevity of Tuft Club, given that most people wouldn’t know what the craft was unless they stumbled upon it on TikTok. In order to solve this, the team had to figure out how to localise tufting and “cater to locals beyond a trend”.
Moving into a bigger studio in just two months
Tuft Club grew in popularity as more customers shared their experiences tufting on various social media platforms, most prominently on TikTok.
As its tufting sessions quickly filled up due to strong online traction, the trio often finish and dry their customers’ rugs late most nights, pulling 12-hour days six days a week, and sometimes end up sleeping overnight in the studio.
However, at this time, the small space of Tuft Club’s studio which could only host up to four people at a time, was pulling back the business. So just two months into its opening, Tuft Club relocated to Boat Quay, into a more spacious two-storey studio that can now host up to 16 people in one session.
Apart from expanding its studio space, the tufting studio has also scored partnerships with various brands over the past year.
Tuft Club was one of the local craftsmen featured by H&M for its 10th anniversary, and was featured in a digital event by JD Sport’s to commence its 40th anniversary.
Experimenting on how tufting can add value to Singaporeans
Carl acknowledged that this has been a great start for Tuft Club so far, but he is uncertain on what the future holds for it, as well as other tufting studios especially with the times ahead.
As inflation has driven up costs, the general consensus among consumers and businesses is to be conservative, spurring Tuft Club to launch shorter and cheaper workshops.
“This is so that our tufters can still have the full experience at more comfortable price points,” reasoned Carl.
Tuft Club’s tufting workshops usually span four hours and costs S$190, but its shortened workshops span three hours at a lower cost of S$135.
Aside from the introduction of its shortened sessions, the business is also currently experimenting on how tufting can add value to Singaporeans, be it through collaborations, installations or new workshops with different brands and artists to find different uses for the craft.
Currently, it is exploring selling limited runs of rugs designed by different artists, as well as working on commissions of larger, made-to-order customised rugs for those who want a customised piece that are out of the limitations of a four-hour workshop.
Seeing that most of its customers join its workshops to commemorate important events, Tuft Club ultimately wants to continue being a space for Singaporeans to produce meaningful and lasting tufted goods — be it to celebrate new homes, anniversaries, or even just to spend quality time.
Featured Image Credit: Tuft Club
Also Read: This ex-banker built an AI-powered platform to streamline hiring, matching jobseekers to firms
M’sian gold investment app HelloGold shuts down after 6 yrs, here’s why & what’s next for it
HelloGold is now bidding goodbye to its customers.
Established in 2015, HelloGold is a Malaysian Shariah-compliant investment app that allows users to buy, save, sell, and redeem physical gold.
Its CEO, Robin Lee, was once the CFO of the World Gold Council and the principal accounting officer for the world’s largest private gold fund.
HelloGold’s service officially launched in 2017, and in the same year, the company went on to win its first award, the Critics’ Choice Most Innovative Islamic Retail Product Award.
The following year, it received Series A funding from 500 Global (then known as 500 Startups), having just entered the crypto space with GoldX, its gold-backed cryptocurrency.
In 2019, it crossed borders to set up shop in Thailand.
Then, the pandemic hit. This turned out to be good for the gold industry at large. Robin shared with Digital News Asia that he noticed people had a higher propensity to save, especially in gold.
“In the last four months, we have done better than the previous four years,” he said in the April 2021 article.
But in an email to depositors sent on January 26, 2023, HelloGold broke the news that it would be ceasing its operations in both Malaysia and Thailand come February 2, 2023.
“While we continue to believe in the value of gold as part of your financial portfolio, we have decided that our business in its current form is no longer commercially viable in the current market conditions,” the email writes.
Depositors can still buy and sell gold as well as withdraw their cash until 7AM, Malaysia time, on February 2.
Any gold remaining in users’ accounts will be sold off, and funds will be transferred to their bank accounts.
Rushing toward a different model
Just a mere week from this announcement, HelloGold’s 60,000 active users and RM25 million’s worth of investments will no longer exist on the platform.
While those numbers might sound substantial, it’s not enough for HelloGold, which had set out to target the mass market rather than the mass affluent.
However, HelloGold’s inability to be profitable doesn’t mark the end of the company itself.
Rather, it intends to pivot completely to a B2B model by white-labelling its product.
Dictionary time: A white-label product is a product or service produced by one company that other companies rebrand to make it appear as if they made it.
According to The Edge, Robin believes the shift will provide more opportunities for HelloGold. He also shared that the company already has interests outside Malaysia, specifically from the Middle East and Africa, to white label its product.
“We just have to focus on building the platform and hopefully secure these partnerships over time,” he told DigitalEdge. “We just couldn’t do the retail thing. We don’t have the balance sheet to fund it.”
Although Robin seems to have some leads, it seems like things are still up in the air for HelloGold as it has yet to announce that it’s secured any partnerships.
As much as this news is one of closure, and perhaps one of disappointment for HelloGold depositors, it also marks a new, perhaps more sustainable chapter for the investment platform.
HelloGold anticipates high traffic on its app due to this announcement, so depositors should be sure to access the platform before 7AM, February 2.
Also Read: For RM210/hr, international teachers can prep M’sian students for all major exams
Featured Image Credit: HelloGold
This ex-banker built an AI-powered platform to streamline hiring, matching jobseekers to firms
What do you usually think of when it comes to finding a job or switching careers?
For most people, LinkedIn would probably be the most common answer — it acts both as a social media platform, as well as a job search platform.
Yet, the process itself is not the easiest in the world. Employers have to screen through plenty of resumes before deciding on which applicants to interview, while job seekers have to scroll through endless lists of openings — not all of which are relevant to their field or align with their interests.
What if the platform itself could offer more? What if potential candidates could be ranked for employers to choose from? What if the platform itself could collect and analyse data to provide more relevant opportunities for job seekers?
And what if, like how ChatGPT writes entire reports, a platform could write your resume or cover letter for you?
These were the questions that surfaced for Jansen Gwee — who was then a headhunter and recruiter — which led him to build his own talent management platform, OppTy.
A man of many hats
For years, Jansen was employed in the corporate banking sector as a relationship manager. For most people, this would have been more than enough. Bankers earn big bucks after all, yet, he yearned to do more — to do something meaningful.
As he worked, he discovered something about himself, that he had a passion for connecting people, and matching them to job opportunities that were a good fit. Even as a banker, he was constantly referring friends to various jobs in the same sector.
So when he finally left the banking industry in 2008, he decided that his next career would be in recruitment.
When I left the banking industry, I wanted to take a break from banking, but I also didn’t want to jump into a totally unrelated field.
Personally, I have always derived satisfaction from being able to place the right candidates in the right roles. I have always been a people person, so I guess recruitment was something that I have always been interested in.
– Jansen Gwee, founder of OppTy
Even then, the headhunting industry was not a kind one.
However, Jansen found that recruitment itself was a challenge and he had to constantly spend time in expanding his candidate pool and reach. For him, attracting attention from top talents with unique skills was not easy, and at the same time, there were candidates who were unsure of their goals and thus prone to job-hopping.
Much of his time, he realised, was also spent on mundane and repetitive administrative tasks in finding and contacting potential candidates.
Jansen felt that these were not merely problems that he had — there were opportunities that he could capitalise on, not only to improve his own recruitment skills, but to improve the recruitment industry as a whole.
The solution? Automation and artificial intelligence (AI).
Turning difficulty into opportunity
In 2021, Jansen founded OppTy with a small team comprising mostly developers for the platform.
The initial vision was for the platform to serve as a helpful resource for jobseekers. As such, the platform would answer questions that job seekers had, on anything from finding their career path to what they should do during a mid-career switch.
As a recruiter, I always encountered students asking for advice when they were just starting out on their careers, and professionals who have been in the field for some time also ask about what happens when they switch careers.
There was a lack of resources for these people, and that’s where the initial idea for OppTy came about. The idea then gradually came to encompass various features that would make the platform more comprehensive.
– Jansen Gwee, founder of OppTy
In fact, OppTy was partly inspired by Jansen’s own experience when he was first trying to join the banking industry. Due to a lack of information, Jansen held the misconception that he had to actually start by working as a bank teller before he could join as a banker.
Reflecting on these experiences, Jansen realised that fresh graduates, or even those looking for a mid-career switch, would require advice and guidance along the way.
As such, Jansen opted to include features that would help these jobseekers not only by streamlining the application process, but providing career guidance and advice as well.
Jobseekers on OppTy receive extensive guidance — everything from resume creation, portfolio maintenance, and salary benchmark information.
As for employers, features such as digital headhunting services, recommendation of jobs for candidates, as well as candidate profile scoring were also created. All they have to do is provide a job description, and the platform will handle the entire process of searching for potential candidates, screening, and scheduling of interviews.
All of this is accomplished through the use of AI. Templates of job descriptions are created with the use of data gathered from similar job titles, and candidates can be screened through the use of keywords in their resumes.
A whole new ball game
As a founder, Jansen realised that entrepreneurship was quite a different experience from being a recruiter — he was now making a direct impact on the industry, and solving problems for a much larger pool of clients.
In banking or even as a recruiter, the main concern for me was always quite direct. I served the handful of clients that I had, and that was it. Not so for being a founder. In fact, I felt it was quite the opposite.
I was creating something that would affect the whole industry, that could solve problems for people who were not my clients. Nothing can quite compare to the satisfaction of knowing that our platform is actually improving the hiring and job-seeking process.
– Jansen Gwee, founder of OppTy
To date, OppTy has more than 5,000 users and 1,800 companies on the platform, and these numbers are growing every month.
This steady success has spurred Jansen to expand OppTy beyond Singapore. Currently, the company is looking at entering markets such as Malaysia, Indonesia, the Philippines, Vietnam, as well as India.
Jansen’s journey has certainly not been a conventional one — from a high-flying banker to a headhunter, and now, a startup founder.
Yet, the narrative that has been consistent throughout is his passion for what he does. He realised that he had passion for helping people and matching employers with employees, and distilled his experience to create something that could revolutionise the industry.
Just as everyone went crazy over ChatGPT and how it could write long expositions based on a simple feed, Jansen has created something similar for jobseekers and employers — and the lives of jobseekers and employers will probably be better off from it.
Featured Image Credit: OppTy
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500 Global-backed M’sian metaverse startup bags funding to help businesses enter Web 3
Virtualtech Frontier (VTF), a Malaysian virtual solutions startup, has closed its Seed III bridging round, according to a January 18 press release.
Dictionary time: Bridge rounds refer to interim financing rounds where a company raises extra funds between priced rounds.
The fresh funds are coming from Blockchain Founder Fund (BFF), a Singapore-based early-stage Web3 venture capital fund.
According to VTF’s CEO and co-founder Jason Low, BFF typically kickstarts rounds with new companies in its portfolio with US$200,000. However, he did not disclose the exact figure VTF received.
Other than the funding, Jason shared that BFF is known to also offer additional support within their ecosystem, including access to BFF’s extensive curated expert network, an opportunity that the entrepreneur aims to capitalise on.
Specialising in Metaverse, Web 3, and virtual events, VTF is also backed by venture capital firm 500 Global.
VTF will use the fresh funds to grow its team, support its marketing activities, and further develop its Mitoworld.io (Mitoworld) platform.
A world of possibilities
Mitoworld is a no-code metaverse platform that enables the creation of metaverses for other businesses.
Early on, the VTF team realised that the metaverse industry has a huge barrier to entry due to limiting factors such as the complexity of building and owning a metaverse, as well as the expensive nature of creating such projects.
“The only way to encourage greater adoptability among business owners would come in the form of allowing people to access and create metaverses more easily, and also at a highly affordable price point,” Jason said. “This could only be done in a templated format like how wix.com does it.”
A wix.com-like platform is exactly what Mitoworld seeks to be. Mitoworld’s platform is currently in the Alpha testing phase and is up and running for partners.
Primarily a B2B2C company, VTF has secured 30 partners ranging from local companies to ones from countries such as Vietnam, Singapore, and Hong Kong.
“All these partners have existing networks and clientele who have traditional websites as their digital channels,” Jason mentioned. “Hopefully with Mitoworld, these partners will then be able to utilise the metaverse for their clientele too by enhancing their website to have a metaverse layer.”
According to Jason, there will be a public launch in early March, which would be a great time for them to focus on user acquisition.
Hence, more efforts will be put towards awareness, particularly in terms of marketing, advertising, and sales.
Tapping into the power of networking
To Jason, the bridge round with BFF wasn’t brought on due to any specific reason.
“I was made to understand that for new tech startup companies, fundraising is a permanent process,” he explained.
“As they say it is always good to fundraise when you have good traction and are strong in your position rather than starting to only fundraise when you are dying out of operational bleeding.”
This mindset aligns with one of Jason’s advice to startup operators, which is to always dedicate a portion of their time to focus on fundraising, even if the company is in a good position.
In order to raise funds, Jason emphasised the importance of networking.
“Sounds super cliché but investors would only invest in you, if you are known to them,” he said.
Jason also recommends entrepreneurs to have an awareness strategy. This may mean keeping themselves “updated and strong” across various social media platforms, at events, and in the media. This further helps startups gain investors’ attention.
Backed by 500 Global and now the Blockchain Founders Fund, Jason certainly knows a thing or two about financing a startup.
Having penned a book on the Metaverse, the co-founder is arguably well-versed in all things Web 3. However, whether the Mitoworld format takes off will rely on whether or not other businesses are willing and open to familiarising themselves with the concept and spending time to adopt the technology.
If Mitoworld is indeed like wix.com, it will still take a chunk of time and effort for businesses to create and design their metaverses. Being able to learn the ins and outs of how Mitoworld functions is a barrier in itself.
With that said, Jason seems optimistic about the project, guided by the fact that BFF wants in on his startup too.
“Getting invested during the bear [market] is the greatest signal that we are on the right track,” he shared in the press release.
“We are all about long-term value creation and this funding will help us continue to push the boundaries of what is possible with Mitoworld and provide the best possible experience to everyone.”
Also Read: For RM210/hr, international teachers can prep M’sian students for all major exams
Image Credit: Virtualtech Frontier
S’pore’s economy to grow more than 2x faster than the US, 4.6x faster than the EU in 2023
While the post-pandemic economic rebound is expected to slow down significantly, Singapore is still on track to outperform other developed economies, except for Hong Kong, which is likely to see a bounce-back after its GDP contracted again in 2022.
At forecast of 2.3 per cent local GDP growth (in real terms), Singapore would outperform USA’s one per cent and EU’s measly 0.5 per cent by 2.3 and 4.6 times respectively, continuing its historical trends of first closing the gap and now overtaking Western nations.
In fact, the entire Asia is predicted to do much better than the West this year. This includes the typically sluggish Japan, though 4.5 per cent growth in countries like China or Malaysia is still below what could have been expected before the pandemic, suggesting they’re not out of the woods yet.
Inflation easing, but still above normal
Inflation in Singapore has just hit its lowest level in seven months, driven down by decreasing transportation costs, while latest GDP figures beat the expectations, setting a positive tone for 2023.
Price growth is expected to hover around 4.5 to 5 per cent this year, a bit higher than the forecast of 3.2 per cent for the US (since spike in prices started several months earlier in the US and is about to wind down a bit earlier too) but still below the, yet again lagging, EU which is expecting to see 6.3 per cent for the whole of 2023, facing a double-whammy of higher prices and lower economic output.
China to the rescue
While economic threats remain global, they are bound to be eased somewhat in Southeast Asia thanks to China’s post-pandemic reopening which is about to unleash a wave of millions of visitors from the Middle Kingdom after three years of strict lockdowns.
Singapore, Malaysia and Thailand are among the most likely beneficiaries, particularly as pre-pandemic tourism in ASEAN was dominated by the mainland Chinese.
It couldn’t come at a better time, given the fears of global recession and still unclear outcome of the war raging in Ukraine.
Talent shortage supports high employment
Despite a bit rockier year ahead, employment situation in Singapore is bound to remain good given the painful shortage of talent that most local companies continue to report.
Unemployment is already down to pre-pandemic levels while the number of vacancies was still above 110,000 in the third quarter of 2022 — most of which (60,600) in PMET professions, according to Singapore Department of Statistics.
In addition, as tourism and hospitality rebound even more, jobs will return to the market catering to Chinese tourists, as well as Koreans and Japanese, who are also gradually returning to global travel.
So while the economic prospects aren’t quite as rosy as they were last year (even if they were somewhat dampened by high inflation), they should remain much more positive than in most other countries throughout 2023.
It’s still a very good time to look for a career upgrade, a new job or a salary raise, as predicting what 2024 may bring is exceedingly difficult right now.
With Russia digging in for the long-haul in Ukraine, global perspectives may remain grim as high energy prices are bound to stay for at least a few years before reasonable remedies are deployed, particularly in gas-starved Europe.
However, should the conflict wind-down suddenly, find a diplomatic resolution or see Russian withdrawal, global economy could receive a huge boost of optimism.
Alas, since neither scenario can be ascertained with a high degree of confidence, the best approach is to make the most of the current (relative) prosperity while it lasts.
Featured Image Credit: Depositphotos
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‘Zilingone’: How the S’pore fashion unicorn sank after missing the boat that saved Sea, Grab
Disclaimer: Opinions expressed below belong solely to the author.
It’s said that success has many fathers but failure is an orphan, and we can see this observation play out in real time as Zilingo, one of Singapore’s unicorn startups, entered liquidation, going from over a billion dollars in valuation to zero in just a year.
As it often happens, everybody involved tries to place responsibility for the downfall on someone else — in this case, most fingers pointing at the company’s co-founder and former CEO, Ankiti Bose.
Bad apple or an entire orchard?
The news reports are awash with accusations of how bossy and controlling she was — that she “ruled with fear” — what surely must have contributed to the collapse of the business, which had for long been, apparently, burning more money than anybody was aware of.
Interviews with more than 60 people, including current and former staff, merchants, investors, entrepreneurs and friends of the key players, suggest that Zilingo struggled for years under Bose’s leadership. Bose’s management style alienated employees and undermined the business, according to staff who worked under her.
The problem with this theory is that you could just as well apply the same description to some of the most successful people in tech.
In fact, just read Steve Jobs’ biography — a mad, dictatorial lunatic, piggy-backing on somebody else’s ideas, crushing people around him and then failing to launch commercially viable devices that led to the ousting from his very own company in 1985.
Besides that, who isn’t an assh*le in tech? Bill Gates was, Jeff Bezos and Larry Ellison still are, Razer’s Min-Liang Tan is accused of being one too. Are they bad at running companies?
We’ve now learned that Zilingo failed to file annual financial statements in 2020 and 2021, and as much as the CEO should be taken to task for it, one must ask — what have other C-level executives and board members been doing all this time?
You want to tell me investors poured in over US$300 million into the business that was an opaque black box which the CEO refused to provide access to and, somehow, when she did, it was already too late?
Right.
I think it’s more an example of a culture of permissiveness for such infractions among startups, as long as the company’s valuation is on the up and up. And once things go south, the CEO is thrown under the bus.
The key to success is timing
Timing is everything in every single domain of human activity.
In music, obviously; in most sports, where scoring a goal or point ultimately depends on being able to perform at the right pace in the right time; in dining (hitting the right spot on your dish), in medicine (diagnosing problems at the right time), in research (before someone else does) and in business, where it’s often not the first or even the biggest company at any given time to ultimately dominate the market.
Google wasn’t the first search engine, Windows wasn’t the first operating system, and Facebook wasn’t the first social media platform. They all appeared at the right time, in the right circumstances.
This extends to specific business activities with the crucial one being financing.
No idea is ever truly unique. Someone, somewhere most likely has come up with whatever you have too. What separates achievers from failures among modern startups is the ability to fuel their operations with new money until they are able to sustain themselves.
Besides its CEO’s character, Zilingo’s failure was also attributed to how the company’s profligate spending drained the US$226 million it raised in 2019 in less than two years.
Reportedly, after refocusing on B2B services (connecting small fashion manufacturers to retailers), the company was effectively subsidising transactions between them to incentivise usage of the platform, losing money on every deal made.
That may sound like a terrible business idea until you ask yourself — aren’t other businesses doing just that in one form or another?
Aren’t e-commerce platforms giving out excessive discounts, coupons, vouchers to attract customers? Haven’t ride-hailing apps been sponsoring drivers with hefty handouts just to get them to drive around, so that users could learn to rely on their service?
Spending US$226 million in under two years may sound like a lot until you realise that a company like Sea Ltd has until recently been burning through US$1 billion per quarter — which would exhaust the money it raised during the latest funding round of US$6 billion (done through the stock market in 2021) in about a year and a half.
Similarly, Grab, after raising US$4.5 billion in its IPO, has so far been losing an average of half a billion per quarter, and that is only after it had desperately started cutting losses.
In other words, while seemingly excessive, Zilingo’s spending wasn’t exactly out of line in the tech world and neither were its practices of sponsoring activity on its platform. So, why is it that Sea and Grab are very much afloat while Zilingo is going down?
Again: timing.
Both Sea and Grab took advantage of the wave of money that flooded the capital markets in the wake of pandemic response around the world.
Grab held its IPO just when the window of opportunity started closing in December 2021, as inflation began rearing its ugly head in America.
Meanwhile, Sea, which listed in 2017, held two large fundraising efforts in December 2020 and September 2021, right around the time its market cap hit a historic high of close to US$200 billion. As I argued in October last year, these well-timed decisions have likely averted a very real risk of bankruptcy which Sea could be facing today if it didn’t have the funds.
Just like Zilingo is, after missing its chance.
Bose previously expressed IPO ambitions in a Bloomberg TV interview in 2021, but nothing concrete came out of it. By early 2022, she was out fundraising again, looking for US$200 million that would place her company’s valuation at about US$1.2 billion, but there were no takers.
It was already too late.
Inflation started spreading globally, interest rates rose sharply, and money retreated from capital markets, pushing company valuations down.
In late February, when rumours of Zilingo’s funding efforts were reported, companies like Sea or Grab were already down by 70 per cent. Not even giants like Amazon, Alphabet or Facebook were spared in 2022.
Who in their right mind would throw a couple of hundred million into a fashion platform that had already been undermined by the pandemic, when even big companies were tanking?
Given the circumstances, more scrutiny from investors followed, which led to the suspension of Bose just two months later over irregularities in the company’s accounts, and her ultimate firing in May, setting off a domino ending in Zilingo’s liquidation.
Fake it till you make it
It’s really difficult to blame it on some gross malpractice when many of these behaviours — that average onlookers would call questionable — are very common in the startup scene.
After all, these companies are not considered valuable on the basis of what they do today, but the mere promise of what they may become a few years down the road.
Which is precisely why cutting corners is often ignored as long as growth is still reported. Get customers on board first, and figure out how to make money later.
You just need to make sure you have enough fuel in the tank to keep going. Failing to fill up at the right time is not only on the CEO, but everybody else invested in the business too. There was the right time to top up on cheap cash, but none of them took or advised it.
And when the storm hit, the company didn’t have enough left to reach the shore.
Featured Image Credit: Michael Petraeus via Vulcan Post
Also Read: Shopee swaps quantity for quality as it exits another country, dominates live selling in SEA
8 Ways to Gamble Responsibly
Gambling is, at its essence, a kind of amusement; it has the thrill of gambling money, the enjoyment of the game, the hope of winning, and, ultimately, the joy of success. These are the crucial factors that keep us returning to the casino table games or staying glued to our screens to play online casino games and try our luck at online slots.
However, like with any enjoyable sport, there comes a moment when the relentless chase of the high transforms from harmless enjoyment to a crippling and sometimes fatal condition. Gambling Disorder, as it is known, exists and may have disastrous consequences for your psychological, social, and financial well-being.
You may develop Gambling Disorder if you feel you need to risk large sums of money to maintain the thrill that playing fills your thoughts or if you frequently lie to cover how much time you spend gambling. However, this necessitates action, and you should get help.
However, if you have yet to reach that stage but are concerned that you may, here are ten ideas to help you gamble wisely; you can also find more information at WeGamble if needed.
Ways To Gamble Responsibly
Know Your Limit
Knowing your limitations is one of the essential pieces of advice to remember while gaming. Regarding gambling, it’s critical to recognize your inclinations. Have you ever had trouble stopping before? Do you find yourself chasing losses or spending more money than you have? If this is the case, you must create limits to be safe.
Remember that playing video games should be considered entertainment rather than a tool to make money or get out of debt. By setting limitations on the amount of money and time you’re ready to spend gambling within your disposable income budget, you may find it beneficial to keep track of your spending and ensure you don’t exceed your spending restrictions.
Gamble With Spare Funds
Regarding responsible gambling, this is the most critical piece of advice. Before gambling at a casino you must set a budget and stick to it. If you are having difficulty stopping, you should seek professional assistance. Gambling should be viewed like any other type of amusement and should not be done with money that you would otherwise use for other purposes. Make sure you only gamble with money you can afford to lose. It’s time to stop if you start spending more than intended or if you feel driven to keep gambling while knowing you shouldn’t.
Have A Budget
Setting a budget is critical when it comes to gaming. Setting a limit and sticking to it is essential before gambling. Only wager or gamble what you can afford to lose, and stick to your established limits. Over your budget might lead to financial issues, so avoid overbets and over-gambling. To be successful at betting or gambling, you must stick to your budget.
Stick To the Budget
It’s critical to keep to your budget when it comes to gambling wisely. Setting and adhering to a budget is one of the most excellent methods to guarantee you’re gambling correctly and avoiding any potential financial consequences. You must never forget that you should only stake money you can afford to lose. Setting and sticking to a budget will help you remain within your financial restrictions and preserve your cash.
It is critical to have realistic expectations while creating a budget. Congratulations if you win! If you don’t, it’s vital not to pursue your losses since this may quickly lead to further spending and loss. When creating a budget, remember to account for taxes and fees. If you play at an online casino, there may be processing or withdrawal costs that must be included while setting your budget.
Maintaining your expenditures is also critical to ensure you pay the appropriate amount. Before placing a wager, examine the game’s minimum and maximum bet limits and the total house advantage or return-to-player rate. These will assist you in determining whether or not a game is within your price range.
Finally, when it comes to gambling responsibly, making and keeping to a budget is critical. Knowing when to quit and how to regulate your expenditure is vital for maintaining your gambling activity enjoyable and safe.
Seek Assistance
The first step in ensuring your privacy when gambling at online casinos is to hold yourself accountable. However, your gambling tendencies may occasionally spiral out of control. So, in such cases, don’t be hesitant to seek help.
If you don’t understand anything, seek help from individuals around you. You can also enlist a technological group, friends, or a loved one. Please feel free to ask for help when you need it.
Do Not Try to Recover Your Losses
It may also be tempting to continue playing to recoup after a significant defeat, but this is perilous. Continue to play to recuperate your losses. It’s preferable to take a break and return later.
Always Gamble with Logic
When it comes to online sports betting, the risks are high. You have one favorite you want to keep betting on, regardless of whether your evidence supports it. However, that may be one of the stupidest gaming decisions you’ve ever made.
Having a favorite team is acceptable but using your emotions to make gambling decisions is a significant no-no. Said, each wager must begin with fair probability and statistics-based suggestions. When it comes to gambling safely, always use your mind rather than your heart.
Do Not Gamble While Intoxicated
Gambling should be seen as a recreational activity and relieving daily stress. It’s OK to have a few beers while playing. However, it is not suggested that you gamble after consuming a large amount of alcohol. In that circumstance, you cannot make sound judgments and must frequently play with a larger bankroll or for more extended periods than usual.
Conclusion
When it comes to prudent internet gambling, it’s a double-edged sword. On the one hand, internet casinos and organizations should provide a safe gaming environment with fair gameplay. Gamers on either side, on the other hand, must educate themselves on the hazards of online sports gambling and how to wager appropriately. Online casino players must examine several ethical online gambling practices when developing secure online gaming settings.
