Southeast Asia is booming. Where are the opportunities?

More: Gojek’s positive gross margins and Indonesia’s wooing of Tesla [Read from your browser]( Daily Newsletter Today’s premium story took three months, six journalists, the Tech in Asia creative team, plus our data team to churn out. So if you find today’s content to be helpful, please consider [supporting]( us! Hello {NAME} If I had known I would be working from home for 3/4 of this year, I would have started a gaming chair business, just so I can stop ogling at US$800 chairs every week, ship myself one at cost price, and make a ton of money reselling them. Unfortunately, that didn’t happen since I’m no Doctor Strange. But we here at Tech in Asia have another superpower of our own: We’ve identified the biggest opportunities for startups and investors in Southeast Asia in the next decade. Today we look at: - The [key verticals]( that would shake up Southeast Asia in the next 10 years - Gojek proclaiming that it’s generating positive gross margins - Other newsy highlights such as Indonesia’s courting of Tesla for an investment and Zuoyebang’s 50 million user growth in the past year  ---------------------------------------------------------------  PREMIUM SUMMARY  These verticals are poppin’ in Southeast Asia Southeast Asia is hot in the eyes of investors, because holy smokes: In 2019 alone, at least US$7.7 billion was invested into the region’s startups. But the big question is, what are the verticals that would come up on top in the next decade? - Logistics and transportation: And it’s not just because of Gojek and Grab. This sector still remains largely inefficient with its opaque pricing, door-to-door inquiries, and spreadsheet-reliant operations. One of the few trends we highlighted in the report: Upstream logistics solutions. - Ecommerce: This industry doesn’t need any introduction. I mean, just take a look at Shopee's reportedly 200 million monthly active users across the region. But aside from the typical B2C marketplaces, offline commerce, B2B commerce, and social commerce could also become huge. - Content: With 655 million people in Southeast Asia who are increasingly digital and mobile-first, this industry is going to be huge. The online video industry alone in the Asia Pacific is estimated to reach US$50 billion in revenue in 2024. In the next few years, we would likely see more homegrown content and acquisitions made. Dive deeper into the five other top verticals as well as the other challenges: [As Southeast Asia enters a golden age, here are the key opportunities](  ---------------------------------------------------------------  NEWS SPOTLIGHT Gojek close to profitability? Oh, that big sexy word: profitability. After a decade, Southeast Asian ride-hailing giant Gojek is finally [closing in on it](. - The good news: Gojek said that all its services are generating positive margins on a product basis. - Gimme the numbers: The Indonesia-based super app has around 38 million monthly active users across the region. Its annualized gross transaction value also rose by 10% to hit over US$12 billion compared to the previous year. - What the future holds: Gojek will focus on developing its food merchant ecosystem, which has seen an 80% increase, reaching 900,000 merchants from the previous year’s 500,000. The company will also continue to invest in technology and talent, unify its international platform, and expand to more countries.  --------------------------------------------------------------- IN PARTNERSHIP WITH Take five to supercharge your AI/ML knowledge Listen up, artificial intelligence and machine learning geeks: Tech in Asia is holding an [AI conference]( with Amazon Web Services (AWS)! This free two-day event is for anyone who’s interested in AI/ML. Whether you are in the early exploration phase or already a super user, whether you lead engineering teams or you’re an investor looking for an edge, you’re bound to learn something new to up your game! Take a look at the expert topics that will be discussed: - How AI is helping to solve the last mile problem in APAC - Rising to the occasion: How healthtech is using AI to help save lives - AI: From number-crunching to decision-making and predicting black swan events - How CTOs build winning AI products Excited? So are we and the more than 3,000 folks who have already signed up! Go and register for [APAC AI Conclave]( which will be taking place on 25-26th November, and learn how you can build, train, and deploy sophisticated models within any framework.  ---------------------------------------------------------------  QUICK BYTES  1️⃣ Indonesia is wooing Tesla Indonesia president Joko Widodo has [sent a team]( to meet with the top executives of US electric carmaker Tesla as part of the country’s efforts to become the world’s biggest producer of electric vehicle batteries.  2️⃣ US$200 million funneled into this edtech company Singapore sovereign wealth fund GIC led a [US$200 million series D2 round]( in Chinese edtech company Aixuexi Education Group. Founded in 2009, Aixuexi provides online courses covering many different subjects for primary to high school level students. The company is also backed by Tencent and Warburg Pincus.  3️⃣Another mammoth edtech company’s supergrowth China-based startup Zuoyebang grew by about [50 million users]( over the past year, boasting a current total of 170 million. The company’s growth is attributed mostly to its homework support app that allows students to upload a photo of an assignment problem that the app solves in just seconds.  4️⃣ TikTok’s US deal gets delayed - again The popular short-video app has been given a [15-day extension]( until November 27 to reach a deal to sell its US operations. First ordered in August by US President Donald Trump who cited security concerns as the reason, TikTok is now awaiting US government approval to sell a minority stake to Oracle and Walmart.  5️⃣ InFeedo gets funded by ex-Google exec India-based software-as-a-service-based people analytics startup inFeedo recently [raised US$3.2 million]( in a round led by Bling Capital founder Benjamin Ling, who also used to be a general partner at Khosla Ventures and an executive at Google, YouTube, and Facebook. Founded in 2013, the startup runs an employee experience bot that can chat with employees, analyze their statements to determine their sentiments, and find out who among them is unhappy. Its customers include the Tata Group, Oyo, and Byju’s.  6️⃣ Mo’ money for this Singapore fintech startup Durianpay recently [raised US$1.4 million]( in a seed funding round led by Sequoia Capital India. Established just this year, the startup aims to help businesses in Southeast Asia better manage their finances.  ---------------------------------------------------------------  FREE PREMIUM ARTICLE  Thunes is building a superhighway to unify the world’s payment systems In recent years, mobile wallets and banking apps have made local payments fast and convenient. But moving money across borders has been a less than satisfying experience. When you move funds from one bank to another that’s located abroad, you don’t get real-time updates about the status of the transfer. You typically wouldn’t know how much the recipient will get until after transaction fees and markups on currency exchange rates have been deducted. Thunes, a Singapore-based company founded in 2016, wants to solve this problem and has set its sights on emerging markets in Africa, Asia, and Latin America. We unlocked this [premium article]( for you to read in full this week.  --------------------------------------------------------------- EVENTS HAPPENING - APAC AI Conclave from November 25 to 26 It’s official, we’re holding a conference for the AI/ML leaders and practitioners around the region. So whether you’re in the early exploration phase or a super-user, [join us]( and upgrade your AI/ML game for free!  ---------------------------------------------------------------  WHO'S HIRING - [Product Manager]( at BlueCell Intelligence (Singapore, Singapore) - [Full-Stack Developer]( at LaporAja (Jakarta, Indonesia) - [B2B Corporate Sales / Business Development]( at myrobin.id (Jakarta, Indonesia)  ---------------------------------------------------------------  SHARE WITH YOUR FRIEND Share this with a friend and get cool rewards! From TIA stickers to our Southeast Asia's Golden Age premium report where we highlight the important trends for the next decade. Just click [here](  ---------------------------------------------------------------  Thanks for reading! Tech in Asia’s newsletters are handcrafted daily with love - and sometimes powered by good kopi (or tea). Drop us some [feedback]( or [sponsor]( this newsletter? [ADVERTISE]( | [PREMIUM]( | [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. Was this forwarded to you? You can read this everyday when you sign up [here](. Don't want to receive these emails anymore? [Unsubscribe](.  ---------------------------------------------------------------  Today’s edition is written by Betty Chum, with contributions from Stefanie Yeo and Doris Yu. It’s edited by September Grace Mahino. Copyright © 2020 Tech in Asia, All rights reserved. 51 Bras Basah Rd, #05-5061, Singapore 189554