Saving the pocket and planet
- In an interview, Dr. Gayathri Natarajan, co-founder & CEO of 500-backed Krosslinker shared insights behind the startup’s innovation in its first product, aerogels.
- According to Dr. Gayathri, the startup focused on cold-chain biopharmaceutical packaging (CCBP) before the pandemic started. CCBP keeps sensitive biopharma products such as vaccines, blood, clinical trial samples, human organs, and drugs at specific cold temperatures to preserve their viability during transit.
- “Over US$300 billion worth of temperature-sensitive biopharma products are being shipped every year,” she explained, adding that over 90% of shipments are still using traditional insulation materials. “Ineffective insulation during the shipping journey results in a US$35 billion annual loss (product write offs, shipping loss, replacement cost) to the industry because of temperature breaches.”
- She shared apart from financial considerations, existing solutions such as single-use materials and those that emit fumes during manufacturing and application pose an environmental and health threat.
- The aerogel was invented in the 1930s, with manufacturers facing various difficulties in penetrating the market. Among others, production is energy-intensive, expensive, and slow, driving manufacturing costs up.
- Krosslinker’s technology addresses all major roadblocks with at least a 50% reduction in production cost, 3x faster production time, and lower energy consumption.
- Aerogels can also be reused, stored long-term, and are produced without any toxic chemicals or raw materials, thus reducing its carbon footprint.
- Krosslinker’s aerogels have been tested up to -196°C and pilot trials will commence from January 2021. Dr. Gayathri said pilot scale production will begin mid-2021, with a plan to move to manufacturing-scale production in 2022.
- What else is the startup up to? She shared they are targeting other applications of the aerogel in other industries such as construction and electric vehicle battery insulation.
- Krosslinker’s modus operandi is collaboration with industry players, allowing it to penetrate multiple markets for prototyping, testing, and commercialization.
- Read the full interview here.
Taking cash out
- 500-backed ‘merchant super app’ Fave started off as a voucher deals platform, but a trip to China to learn about its tech scene catalyzed the idea of launching a payments platform for the app.
- Managing director in Singapore Ng Aik-Phong said integrating payments into the app put it in a unique position to become a leading player in the rewards voucher scene, which at the time was a largely manual process.
- Within nine months of the launch of FavePay, the app had processed over a million transactions and was an accepted payment method at more than 5,000 locations across Singapore, Malaysia, and Indonesia.
- A report ranked Fave as the third top e-wallet in Singapore from Q4 2017 to Q3 2019.
- The startup then partnered with DBS’ PayLah in what Aik-Phong calls a ‘co-opposition model’ — PayLah users would be able to scan FavePay QR codes, allowing the two e-wallets to scale user acquisition at a much faster rate.
- “DBS is the biggest bank in Singapore, and we have a healthy respect for PayLah,” he said. Fave chose to partner with DBS rather than compete against each other because they had a common goal: to eliminate cash.
- In addition, both companies targeted the same consumer segment as PayLah users didn’t need a credit card to use the DBS e-wallet. According to Aik-Phong, 25% of new FavePay customers were attributed to PayLah.
- Through the partnership, Fave also leveraged DBS’ intelligent banking capabilities, which has allowed its merchant partners to better understand their customers and enhance engagement through data analytics and AI-powered insights.
- Aik-Phone attributes one of the reasons for FavePay’s success in Singapore to the strategic partnership, but also cites the company’s focus on increasing its value proposition to its users.
- “We’re always tuned towards listening and understanding the problems of our merchants, while at the same time also listening to consumer trends and wants,” he explained. “Our solutions will always revolve around providing good value add to our customers.”
Beefing up the package
- In a message from the founders of 500-backed parcel tracking platform Parcel Perform, the startup took a look back at milestones achieved in 2020.
- Parcel Perform is a Singapore-based parcel tracking platform for e-commerce retailers, providing merchants with all the information needed to manage their logistics effectively.
- Across the year, the startup deployed one major feature release every two months.
- In addition to introducing SMS as a channel for delivery notifications, it partnered with Amazon Web Services’s Machine Learning Solutions Lab to develop its Date of Arrival Predictions Engine (DAP).
- This feature provides meaningful updates to customers about their parcels, such as arrival dates and potential delays if there are delivery issues, which is done automatically.
- According to the startup, it also grew its team across offices in Singapore, Vietnam and Germany and enabled 24-hour, round-the-clock support on weekdays for customers around the globe via live chat.
- Its customer portfolio has also expanded internationally, with clients from Australia, Southeast Asia, Europe, the United States and South America.
- Parcel Perform also now serves multiple verticals — from sports, fashion, lifestyle, coffee and furniture.
- Read the full message here.
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500 Startups is a venture capital firm on a mission to discover and back the world’s most talented entrepreneurs, help them create successful companies at scale, and build thriving global ecosystems. In Southeast Asia, 500 Startups invests through the pioneering 500 Southeast Asia family of funds. The 500 Southeast Asia funds have backed over 240 companies across multiple sectors from internet to consumer to deep technology. It continues to connect founders with capital, expertise and powerful regional and global networks to help them succeed.
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