⚙️🏭 This Singaporean AI Company is Going After Boring Sectors

Gm and Happy Monday folks.

Welcome back to micro digest, the daily newsletter that brings the best of Southeast Asian tech news to you every morning.

We’re like the weekend. You can finish it just like that 🫰

Here’s what we got for you:

• 🌊 The SEA - Groupup.ai - The AI that is revolutionizing the Industrial World

• ⛵ SEAppets - Snoop Dogg is selling Indonesian coffee in the US

• 💰 SEA Deals

• 🖼️ AI Image of the day

• 🐣 Tweet of the day

Markets 📈

The SEA 🌊

AI, AI, AI. That’s all we’ve been hearing since the launch of ChatGPT.

There are so many AI tools in the market right now that could really make a big difference in our everyday life.

While most AI companies are focusing on the B2C market, this Singaporean AI company is targeting the B2B market.

Today I’m talking about Groundup.ai 

🤷‍♂️ Who is Groupup.ai?

• Founded in 2019 by Leon Lim, a serial entrepreneur with two exits and co-founded by operations and chemical engineering veteran Alex Wong

• Groundup.ai started off as an AI company that utilizes behavioural analysis to create a more personalized event experience

• After a few more pivots, the startup finally found the right niche which is helping industrial companies prevent unplanned downtime of industrial assets and improve workplace safety

⚙️ How it works?

• Their proprietary AI device, GINA, identifies unusual noises which are telltale signs of possible device malfunctions so that any breakdowns can be avoided before they occur, helping clients to save millions of dollars in the process

• It also uses Computer Vision to improve workplace safety and save lives

🏭 Industries

The startup is currently servicing a handful of industrial industries:

• Heavy machinery

• Construction

• Manufacturing

• Maritime

• Oil and gas

• Mining

• Logistics

💰 Funding

• The startup has just raised USD $1.8 million in a seed funding round led by Wavemaker Partners

• The funds will be used to grow the company’s AI and software team and expand into international markets

• Andy Hwang, General Partner at Wavemaker Partners says that they are excited to lead the round and believe Groundup.ai's solutions will help improve the lives and work conditions of those in the industrial sector

If I could invest in Groundup.ai, I would.

Why?

Because B2B > B2C. The industrial sector is always deemed as “unsexy” and because of that, there will be less competition. Although adoption might start off slow, once the industry realizes how much money they could save, customers will start flocking in. And when they do, they won’t be paying a $20 per month subscription fee.

SEAppets ⛵

1. Snoop Dogg has partnered with Indonesian entrepreneur Michael Riady to launch INDOxyz, a line of cold brew and whole-bean coffee. The coffee is sourced from Sumatra, Java, Bali and Sulawesi, roasted in Los Angeles and sold in California, Nevada and across the US. Snoop Dogg said the partnership was inspired by his long nights in the studio fuelled by coffee. Michael Riady is the grandson of Lippo Group founder Mochtar Riady. 

2. GoTo, an Indonesian tech company listed on the IDX announced Friday that it will lay off 600 employees as part of a business streamlining that involves consolidating its divisions. GoTo is also scaling down non-core businesses and projects, as well as using new technology to improve services and reduce costs. Last year, GoTo had said it would become profitable earlier than expected and its adjusted EBITDA is now set to be positive in Q4 2023. In November last year, GoTo announced it would let go of 1,300 people.

3. E-commerce giant Shopee has laid off around 200 employees in Indonesia, primarily from their customer service team, with severance pay in accordance with the country’s regulations. The decision was made to improve operational efficiency, following Shopee's first profitable quarter in Q4 2022. The news follows a larger round of layoffs in 2022 by parent company Sea Group.

4. Pintek, an Indonesia-based fintech firm founded in 2018 has shifted its focus from student loan services to business financing. The company's website no longer lists student loans and instead offers supply-chain financing and business financing based on purchase order documents or invoices. To date, Pintek has raised at least USD $28 million, including a USD $7 million series A round in 2021. They also received an operating license from Indonesia's Financial Services Authority.

SEA Deals 💰

1. Malaysia-based EasyStore, a unified commerce solutions provider in Southeast Asia has acquired Singapore-based chat commerce platform NovoChat. This acquisition will allow EasyStore merchants to manage and automate customer communication through multiple channels (e.g. WhatsApp, Messenger, LINE, and Telegram) from a single centralised inbox. The move will benefit over 50,000 SMEs across Malaysia, Singapore, Indonesia and Taiwan. EasyStore also offers a cloud-based point-of-sale interface to allow retailers to create and process orders at offline events.

2. Chinese company Sunny Optical Technology Group is investing up to USD $2.5 billion to build an optical production complex in Yen Binh Industrial Park, Thai Nguyen Province in Vietnam. It will take five years to build and will provide products to the electronics and automobile industries. The province is currently home to Samsung Electronics' largest Vietnam-based smartphone factory.

3. Exabytes, a Malaysian digital enabler has acquired APC Hosting, a Singapore-based web hosting, VPS and domain provider. The acquisition will allow customers to access an even wider range of products and services. Exabytes specializes in business applications, cloud, digital marketing and e-commerce services and serves over 160,000 customers in 121 countries. APC Hosting has won awards and has a strong focus on customer support and corporate social responsibility. The partnership brings together the strengths of both companies and allows them to better serve their customers.

4. The GrowHub, a Singapore-based trust and traceability technology provider has closed a USD$3 million Pre-Series B round. The funds will be used to further expand across the Asia Pacific and to continue building its technology offerings. The GrowHub provides farm-to-table solutions, Web-3, NFC and QR code solutions and a SaaS platform to track and trace carbon credits. It has also opened a faculty hub for research and development and aims to make emerging technologies available regardless of size.

AI Image of The Day 🖼️

“I asked Midjourney to recreate my dog using only his DNA profile”

Tweet of The Day 🐣

If you saw the words “SVB”, “bank run” and “bailouts” on Twitter over the weekend and you don’t what the f**k is going on, here’s a great thread to catch up.

That’s a wrap for today. See you all tomorrow! 👋

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