Grab’s profitability path has a GMV roadblock

More: AI’s potentially disruptive power as elections near and Love Bonito's latest financials. [Read from your browser]( Daily Newsletter --------------------------------------------------------------- Welcome to Tech in Asia's free Daily Newsletter! Get full access to our subscribers-only Daily Newsletter and other insightful analysis on the big and messy topics of Asia’s tech and startup community by [registering here](. --------------------------------------------------------------- IN FOCUS In today's newsletter, we spotlight: - [Grab's GMV-sized problem]( - Shopee combating the trade of illegal drugs and food on its platform in Indonesia - AI’s potentially disruptive power as elections near - Other newsy highlights such as [crypto’s funding collapse]( and Love Bonito's latest financials --------------------------------------------------------------- Hello {NAME} “Today, Grab only sells to 1 in 20 people [in Southeast Asia] every month. So this means there’s still plenty of room for us to grow,” Anthony Tan said in the firm’s first-quarter earnings call last month. If there ever was a rallying cry from the CEO of the US$13.4 billion company, this was it. Despite more than doubling revenue in Q1 and narrowing adjusted EBITDA losses for the fifth consecutive quarter, the ride-hailing and food delivery giant has no intention of hitting the brakes. But Grab’s stagnating gross merchandise value (GMV) has thrown a spanner in the works. It will have to keep growing GMV in its mobility segment and reverse recent declines in its deliveries unit to achieve its target of breaking even by Q4 this year. This is not an easy task, especially as the firm has reduced spending on incentives. Today’s featured piece makes sense of Grab’s current predicament. My colleague Simon dissects how and why the super app needs to pull off the delicate balancing act of revitalizing its GMV to feed its bottom line while also minimizing expenses to maintain its profit margins. -- Shravanth P.S.: If you’re an entrepreneur looking for funding, [fill out this form]( to get your company featured on our list of fundraising startups.  ---------------------------------------------------------------  THE BIG STORY [Grab’s GMV is stagnant. It needs to reverse that to break even]( While EBITDA losses narrowed for a fifth consecutive quarter, the market was still skeptical of the company’s results. --------------------------------------------------------------- TRENDING NEWS [Love Bonito sees 34% revenue growth in 2021]( The Singapore-based company also had a net loss of US$11 million in 2021, growing from US$5.3 million in losses in the previous year. [Shopee cracks down on illegal drug sellers in Indonesia: report]( One of the sellers on the platform had sold various illegal drugs worth US$686,000, according to Indonesia’s Food and Drug Monitoring Agency. [Accel targets AI adopters and builders in India, SEA]( Atoms 3.0, the VC firm’s accelerator program, will focus on early-stage companies in the AI and Industry 5.0 sectors. [Generative AI may cast its vote in the 2024 elections]( The tech could impact not only democratic elections but also our online reality. ---------------------------------------------------------------  VISUAL STORY OF THE DAY [VC funding for crypto firms plummets]( Last year, VCs worldwide poured over US$21 billion into crypto firms. But in the wake of a tough 2022, investors have lost their appetite for risk. ---------------------------------------------------------------  TECH IN ASIA'S FOUNDERS MEETUP: VIETNAM  Join us and share the hardest challenges you’ve faced as a founder If you’re an entrepreneur based in Vietnam, you’re invited to Tech in Asia’s Regional Founders Meetup, which will be held on June 28 at The Sentry in Ho Chi Minh City (2/F Sonatus Building, 15 Le Thanh Ton, District 1) from 5:30 p.m. to 7:30 p.m. Join us and share the hardest challenges you’ve faced as a founder. To help you find solutions, we’ll introduce you to fellow founders who have been there and done that. Starting up doesn’t have to be a lonely journey. [Register]( for this exclusive event here today. Tickets are priced at US$12.50 per person, inclusive of light bites and one drink. Slots are limited and are available on a first come, first served basis. Thanks to our official event partners - AWS, CleverTap, Cooley, D.Camp, Sinarmas Land, Singapore Global Network (SGN), and Quest Ventures - and our community partners - WeWork and Gobi Partners - for making this meetup possible. ---------------------------------------------------------------  PRESS PEEKS The following press releases were published as they were received, without any editing from the Tech in Asia team. You too can publish your own press release on Tech in Asia by simply filling in [this form](. Our team will get back to you by the next business day. - Centic - [Centic – a scoring platform for the entire Web3 Space snaps up seed funding from IDG Capital Vietnam Blockchain]( Centic, a data analytic platform for Web3 successfully secured a significant investment from IDG Capital Vietnam Blockchain. - GoSkyi AI - [Riding the ChatGPT Wave: GoSky AI Secures Multi-Million Dollar Pre-Series A Investment from 500 Global, Acorn Pacific Ventures and Paragon Venture Capital]( Eyeing the Trillion-Dollar Opportunity Behind AI-Powered CRM Set to Revolutionize Business Marketing and Sales. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here](. - [Tech in Asia’s Founders Meetup: Vietnam on June 28]( Our networking event, Founders Meetup: Vietnam, is happening in Ho Chi Minh City on June 28 at The Sentry, 2/F Sonatus Building. Join us and share the hardest challenges you’ve faced as a founder. To help you find solutions, we’ll introduce you to fellow founders who have been there and done that. Register today! ---------------------------------------------------------------  WHO'S HIRING You can post a job [here]( or search for jobs [here](. - [Remote Senior DevOps Engineer]( at Scopic Jakarta, Indonesia - [Senior Software Engineer]( at PasarPolis Jakarta, Indonesia - [Business Analyst - IT Solution (A-93806)]( at PT Qerja Manfaat Bangsa Jakarta, Indonesia - [Software Development Engineer 2 or 3 (React Native)]( at MyRobin Jakarta, Indonesia - [Tax Staff]( at KoinWorks Indonesia Bulk Terminal, Indonesia - [QA Tester]( at Avarik Saga Jakarta, Indonesia [ADVERTISE]( | [SUBSCRIBE]( 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. 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