Southeast Asia’s digital economy is tipped to grow more than six-fold to reach more than $200 billion per year, according to a report co-authored by Google , with e-commerce accounting for the dominant share. The emergence of e-commerce platforms like Alibaba’s Lazada and U.S.-listed Shopee have enabled online entrepreneurship across the region, but still financial support for online sellers, who are basically SMEs, is lagging. That’s where Singapore-based Aspire Capital , a six-month-old organization focused on speedy SME lending, is hoping to make a difference. The company certainly has opportunity. With a cumulative population of over 600 million consumers and a rising middle class, Southeast Asia is increasingly an attractive market for businesses of all kind, and online companies in particular. Chinese giants Alibaba and Tencent have long devoted significant resources to the region where, like India, they see significant growth potential. E-commerce is the clear winner, in terms of size, with the e-Conomy SEA report — a joint research project between Google and Singapore sovereign fund Temasek — forecasting e-commerce revenue will hit $88 billion by 2025 from $10.9 billion in 2017. Data from the e-Conomy SEA report The crux of its problem is that online sellers who use Lazada, Shopee or other platforms that are forgoing profit in order to grow, are ironically less able to scale their business since there are few ‘e-commerce friendly’ financing options. That problem became apparent to Aspire founder and CEO Andrea Baronchelli during a four-year stint with Lazada Singapore where, as CMO, he identified a financing disconnect for Lazada merchants. “I saw the problem while trying to rally small businesses trying to grow in the digital economy,” Baronchelli told TechCrunch in an interview. “The problem is really about providing working capital to small business owners. We started with online sellers, but we have expanded a bit as we see demand. There are 65 million small businesses in Southeast Asia, that’s ten times more than the U.S. so we see so much potential,” he added. Aspire founder and CEO Andrea Baronchelli pictured while at Lazada Today, Aspire Capital covers Singapore where it has expanded beyond e-commerce merchants to cover other things of SMEs who seek loans, primarily for working capital as Baronchelli explains.
Jake Bright Contributor Jake Bright is a writer and author in New York City. He is co-author of The Next Africa . More posts by this contributor Liquid Telecom goes long on Africa’s startups as future clients African experiments with drone technologies could leapfrog decades of infrastructure neglect Polestar debuted its first production EV and previewed its electric car line in New York with the CEO squarely taking aim at Tesla. The Volvo subsidiary pulled the cover off its Polestar 1, which it positioned less as a hybrid and more as a fully electric (gas optional) car to attract fence sitters to EVs. The $155,000 auto—that will hit streets in 2019—has 3 electrical motors powered by twin 34kWh battery packs and a turbo and supercharged gas V4 up front (more details here ). All electric range is up to 100 miles—which the company claims gives the Polestar 1 the longest all electric range of any production hybrid. Polestar drivetrain The Polestar 1 brings 600 horsepower and 738 ft-lbs of torque. It is the first in a series, with an all electric Polestar 2 to debut in 2019 and a Polestar 3 SUV after that. “Polestar 2 will be a direct competitor to the Tesla Model 3…” CEO Thomas Ingenlath said on the launch stage. He told TechCrunch the company will focus more on creating converts to EVs than pulling away Tesla’s existing market share. Thomas Ingenlath, chief executive officer, Polestar One advantage Ingenlath described was using Polestar 1 as a gateway car for getting laggards to go all electric. “There are many people out there who still think a car has to have a combustion engine,” he said. “Polestar 1 is an extremely good vehicle to get people across that line and once they drive it…understand what an amazing experience an electric car is.” Polestar converts shouldn’t get too attached to that gasoline/voltage combo, however. Polestar 1 will be the company’s first and last electric and gas vehicle, according to Ingenlath.