Rising attraction: Indonesian startups lured by IPOs

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](.  ---------------------------------------------------------------  Written by Samreen Ahmad  Journalist  Hello {NAME} India and Indonesia are alike in a lot of ways, so much so that they could be considered siblings. As two of the world's largest democracies, they share economic and social similarities. Both nations boast a large youthful population and a growing middle class. Additionally, India and Indonesia are incredibly diverse in terms of culture, religion, and ethnicity. There are other similarities. India experienced a [63% decline]( in VC investment between 2022 and 2023 despite a booming IPO market, a trend evident in Indonesia as well. In 2023, the Indonesia Stock Exchange witnessed the highest number of tech IPOs in the past seven years amid a decline in the number of VC funding deals. In this week's Big Story, my colleague Jofie examines why some Indonesian startups are opting for IPOs to raise funds. This trend is gaining momentum, with the success of notable companies like GoTo Group (GOTO, IDX), Blibli (BELI, IDX), and Bukalapak (BUKA.JK, IDX). However, startups must also be mindful of the risks associated with going public. -- Samreen  ---------------------------------------------------------------  THE BIG STORY [Indonesian startups thirsty for capital flock to IPOs as VC funding dries up]( In 2023, the Indonesia Stock Exchange recorded the highest tech IPO count in the past seven years, but the average amount raised plummeted. ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ More OpenAI alliances in Asia?: In a [first-of-its-kind partnership]( in Southeast Asia, OpenAI has tied up with Grab (GRAB, NDAQ) to build and deploy AI solutions for the the super app’s ecosystem. OpenAI will develop tools for Grab users as well as pilot ChatGPT Enterprise for the company's employees. This paves the way for the AI company to establish more partnerships across Asia, which could lead to the development of numerous AI-first consumer tech solutions in the region. The ChatGPT developer has already set up its [first Asia office]( in Tokyo and named Tadao Nagasaki, the former president of Amazon Web Services Japan, as country leader. 2️⃣ AI tutors to write the next chapter in edtech: AI-powered tutors could usher in a new era for the edtech sector, where there has been slow demand and a funding crunch. Alibaba (BABA, NYSE), for one, has [invested]( US$27.6 million in Zhejiang Jingzhunxue, an education startup developing an AI-powered educational device called Bong. Bong is a personalized and interactive teaching tool for students, offering AI-generated video lessons that are taught by digital teachers. AI tutoring apps are also [taking over]( the learning space in the US. For instance, according to Sensor Tower data, China-based Question AI has been downloaded 6 million times in the US after its launch in 2023. Meanwhile Gauth, which was introduced by ByteDance in 2019, has garnered 12 million installs since its launch. The success of these platforms lies in their cost structure, as one month of traditional tutoring services could cost the same as a year's worth of AI-assisted teaching. 3️⃣ Ride-hailing profits take a U-turn: China's largest ride-hailing company, Didi Global, fell to a [first-quarter net loss]( for the March quarter after two consecutive quarters of profit. Similarly, its US counterpart Uber (UBER, NYSE), which [turned profitable]( after 15 years of operations in 2023, also [slipped into losses]( during the first quarter of 2024. While Didi attributed the loss to a decline in investment income from its stake in Chinese electric vehicle maker Xpeng, Uber’s losses were driven by “legal charges and provisions and those related to fair valuation of certain company investments.”  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [US$2 billion]( The investment Google (GOOGL, NDAQ) has announced in Malaysia’s tech sector, including the construction of a new Google data center and the development of a cloud region. - [US$6 billion]( The amount of funding Tesla (TSLA, NDAQ) CEO Elon Musk’s AI startup xAI has secured. Founded in July 2023, xAI developed Grok, a ChatGPT rival powered partly by data from X (previously Twitter). THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Google sets sight on Indian ecommerce: Google is making its presence felt in Asia’s ecommerce sector again. It is [set to join]( Indian ecommerce firm Flipkart's ongoing fundraising efforts, reportedly setting aside US$350 million to purchase a minority share in the ecommerce company. Such an investment could help Flipkart expand its presence beyond India as it plans a mega IPO at a US$60 billion valuation. The investment will also allow Google and Flipkart to team up against Amazon (AMZN, NDAQ), which some call the “[most sought after ecommerce player]( in India, even though Flipkart has the largest market share of 48%. Google’s AI capabilities would also mean an [enhanced customer experience]( for Flipkart users. This is not the first time Google has made such a large bet on Asia’s ecommerce market. In 2018, it invested [US$550 million]( in China’s JD.com (JD, NDAQ). This partnership was then seen as a challenge to Alibaba's dominance in the country, although PDD Holdings ended up taking on that role (PDD, NDAQ). ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](.  [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on July 24-25]( Join us for Investor Hour, a bespoke 1-1 networking mixers for founders to explore opportunities, get advice, and connect in-person with the right audience. This program offers a unique platform for founders to: - Open doors to the right investors - Receive personalized feedback and advice - Increase your visibility and credibility [Apply for Investor Hour today]( while slots last! [Product Development Conference (Jakarta, 25-26 June 2024)]( Southeast Asia's tech scene is booming. But can one playbook unlock success across this diverse region?  Join us to dissect Grab's strategy at PDC 2024! ✨ Last chance to get 25% off your PDC ticket; this offer ends on June 6th. [Snap up your ticket]( now or risk FOMO [Tech in Asia x Airwallex Startup Night on June 19]( Forget the elevator pitches and forced smiles of typical networking events. Held on June 19, Tech in Asia x Airwallex Startup Night is about one thing: forging genuine connections that fuel real growth. This isn't for everyone, though. We're handpicking a select group of ambitious founders and startup leaders who are ready to move beyond the hype and achieve real impact. [Register for an invite today!]( That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894