The blue-collar tech gold rush is here

On the Rise dives into the promising growth of specialized HR firms, Hangry's earnings, and Wavemaker’s Paul Santos' thoughts on the recession. [Read from your browser]( On the Rise 🚀 Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you’re not a subscriber, get access by [registering here](. Written by Nikita Puri Journalist Hello {NAME} Last week, I learned that the recovery from this pandemic-related recession has been different from previous slumps. Every downturn has led to the loss of factory jobs that never returned, but this time around, factories in the US have employed [67,000 more people]( than they did at the start of the pandemic. This boom in factory jobs, triggered by inflation and supply chain bottlenecks, is reportedly unlike any we’ve seen in 50 years. A surge in similar jobs is reflected in Southeast Asia, too, if the brisk business coming in for blue-collar HR tech companies is anything to go by. For instance, Indonesia-based MyRobin grew 11x in 2021, turning profitable this June after pivoting to focus on blue-collar workers. The company has already logged a 7x growth in revenue within the first eight months of 2022. Similarly, Staffinc, which also works with blue-collar workers, has grown 20x in revenue since 2019. But, as my colleague Shadine details in this week’s Big Story, things aren’t necessarily as rosy as they appear. While these firms might be the flavor of this season, when some companies are outsourcing blue-collar hiring and management to keep a lean workforce, this may not be the case long term. Besides, these firms are also up against a formidable challenge: building trust in blue-collar communities where exposure to digital platforms for work-related opportunities is likely low. Talking about formidable challenges, what is a culinary startup to do when the price of fresh produce and meal ingredients is forecasted to go up? Indonesia-based Hangry has been efficient in its operations to date, notes my colleague Aditya in our other Big Story this week. But the company needs to maintain the same burn rate as last year, lest things don’t go as expected. Meanwhile, in this week’s edition of Making Waves, Wavemaker Partners’ Paul Santos talks about taking a leap of faith and trusting founders who seem to have a method to the madness, however brow-raising. More on this soon. -- Nikita  --------------------------------------------------------------- THE BIG STORIES 1️⃣ [Blue-collar HR firms rake in revenue, could weather recession]( Promising revenue and funding indicate a bright future for these specialized firms. But they have to address crucial issues first, like building trust. 2️⃣ [Hangry’s revenue triples in 2021, operating margin improves]( The Indonesia-based culinary startup’s revenue rose to US$12.2 million in its second full year of operations.  ---------------------------------------------------------------  MAKING WAVES [Recession Run: Wavemaker’s Santos sees a crisis as a flight to quality]( Recession Run is a series of interviews that gives a peek into what investors are betting their money on amid fears of a global slowdown. In this edition, Paul Santos, managing partner at Wavemaker Partners, talks about how fundraising is not just about the valuation and how founders shouldn’t be overcome with noise.  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ India-based Byju’s has allegedly [forced 170 employees to resign]( after the edtech firm decided to stop operations at its Technopark Trivandrum office without any prior notice. The affected staff were reportedly expected to leave without due compensation. 2️⃣ Biotech startup Kyan Therapeutics [has raised US$5 million]( in an oversubscribed pre-series A round led by Altara Ventures. The fresh funds will be used to help the company establish a commercial lab, fund additional clinical trials, and expand its team. 3️⃣ VC firm Square Peg Capital [has raised US$550 million]( for its fifth fund focused on tech startups in Southeast Asia, Australia, and Israel. The firm says it continues to see growing potential in the Southeast Asia region, specifically in the sectors of consumer internet, fintech, edtech, future of work, healthtech, and SaaS. 4️⃣ Indonesia-based Xurya [has raised US$33 million]( in additional series A money. The renewable energy startup helps its clients deploy solar panels on rooftops of commercial and industrial buildings. 5️⃣ Greentech Accelerator, a program organized by UOB innovation arm FinLab, has announced the names of the 12 startups participating [in its maiden batch](. The accelerator aims to inject around US$105,000 into startups that create solutions to help the environment, such as energy efficiency products and zero-waste supply chains.  ---------------------------------------------------------------  FYI [Investors hunt for biotech bargains as market shows signs of a thaw]( Biotech firms saw spectacular fundraising success during the pandemic followed by a spectacular crash. But now, investors are beginning to selectively look at parts of the sector, reports the Financial Times.  --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you next week! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. 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