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… cheap, lacked quality. This presented an opportunity for a mass market brand, leading to the creation of YOU Beauty.
The success of YOU Beauty inspired us to explore investment and incubation opportunities in other consumer categories. We identified significant potential in Indonesia’s maternity and infant market. The combined birthrate of Indonesia and the Philippines is comparable to China’s, so we decided to incubate a maternity brand. After systematic research and talent scouting, Makuku was born.
In essence, we prefer to co-create opportunities rather than merely discover them.
<h3>36Kr: Recently, ATM Capital seems to have made fewer public announcements about new projects. Why?</h3>
QT: We are relatively low-key and usually wait until a company reaches a certain scale before making public announcements. For early-stage projects, even with strong teams and promising directions, discussing achievements too soon can create unnecessary distractions for the team.
In reality, we are continuously investing in consumer brands, chain services, and cultural education, adding to our portfolio every year.
<h3>36Kr: Are you concerned about not finding the next J&amp;T Express in Southeast Asia?</h3>
QT: It depends on how you define “the next J&amp;T Express.” Our goal is to support companies that can achieve true globalization, ranking either first or in the top three in major categories across multiple countries.
The key lies in finding the right team—a team capable of evolving with the company, keeping pace with the market, and staying resilient. With sustainable growth, we believe there will be several Chinese-backed top brands emerging from Southeast Asia.
If we follow my definition, it won’t just be one “next J&amp;T Express.” I estimate that 5–10 Chinese-backed companies will grow into global enterprises starting from Southeast Asia. So, the real question is whether we can be early investors in these companies—that’s what matters most to me.
<h3>36Kr: Why do you believe Chinese-backed teams can nurture top enterprises in Southeast Asia?</h3>
QT: This belief is based on several factors.
First, in terms of talent, China has proven its global leadership in areas like product value and channel capability, although it still lacks full internationalization.
Second, emerging markets worldwide, such as those in Latin America, the Middle East, and Africa, face similar gaps in consumer goods supply.
Southeast Asia is just the beginning. If Chinese-backed companies succeed in internationalization, they could dominate these markets.
<h3>36Kr: Fintech companies in Southeast Asia often tell stories similar to those in consumer retail, yet ATM Capital seems to invest little in this sector. Why?</h3>
QT: The scale of the fintech market is closely tied to local consumption capacity. Southeast Asia’s relatively low income levels limit the growth of fintech companies. Many firms in this space have low credit limits for individual users, as most users lack the capacity to borrow or repay larger amounts. Perhaps, five years from now, when consumer spending power improves and users can handle more credit, this sector will become more attractive.
<h3>36Kr: As we approach the end of the year, which investment directions will you focus on next year?</h3>
QT: We will continue to develop along two main lines: consumer retail and chain services.
On one hand, we’ll look for outstanding teams and categories to incubate new companies. On the other, some of the companies we’ve invested in over the past two years are beginning to adapt to local environments and may enter a phase of rapid growth next year. Some companies that are performing well in Indonesia are also considering entering additional markets.
So, the priority is twofold: supporting the sustained growth of our portfolio companies , meanwhile continuing to seek excellent teams that can establish a presence in Southeast Asia to create new opportunities.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3065448058201222">article</a> was written by Chang Weiqian for 36Kr.

ATM Capital founder: Chinese entrepreneurs to reshape Southeast Asia’s consumer market

Venture Capital

Investment

Southeast Asia

China

… decision-making must balance rational data analysis with a consideration for human needs, creating optimal solutions that reflect care for all consumers,” Zhu said.
<figure id="attachment_151277" aria-describedby="caption-attachment-151277" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-151277" src="https://console.kr-asia.com/wp-content/uploads/2024/12/FengE-Zushi-Vending-Cabinet-1024x683.jpg" alt="" width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2024/12/FengE-Zushi-Vending-Cabinet-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/12/FengE-Zushi-Vending-Cabinet-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/12/FengE-Zushi-Vending-Cabinet-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/12/FengE-Zushi-Vending-Cabinet-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/12/FengE-Zushi-Vending-Cabinet.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151277" class="wp-caption-text">Photo and header photo source: Feng’E Zushi.</figcaption></figure>
<h3>Lower costs, quicker expansion</h3>
The development of unmanned retail in China began in 2016. After Amazon Go’s groundbreaking entry with its grab-and-go shopping model, the market drew significant attention from investors and major retail giants.
However, rising operational costs, sluggish sales, and the challenges of supply chain complexity and regional management fueled widespread discussion about the cooling off of the unmanned retail market.
Following years of consolidation, the industry has now entered a relatively mature phase, with companies shifting their focus to AI-powered solutions.
Zhou Qi, an investor with long-term insights into retail, told 36Kr that the cost of a single vending machine typically exceeds RMB 20,000 (USD 2,800). “Every component—tracks, motors, delivery channels, and external order screens—adds to the cost. The equipment is also bulky, making relocation and repurposing difficult.”
In contrast, the smart cabinets used by Feng'E Zushi have significantly reduced costs. According to 36Kr, current market costs for smart vending cabinets have dropped to just a few thousand RMB, making them much more competitive than traditional vending machines.
“These cabinets have a similar seven-year lifespan as more expensive devices but leverage intelligent solutions to lower operational costs,” Zhu said. With self-service pickup, users can open the cabinet, take the desired item, and place orders faster. This simplified structure reduces mechanical complexity and costs while occupying less space.
The hardware integration employs standard refrigeration components such as compressors, sensors, and temperature controllers, similar to those used in traditional refrigerators. Utilizing supply chain resources from traditional manufacturing industries provides significant advantages in cost efficiency and large-scale production capabilities.
“Whether in terms of equipment, labor, or logistics, our approach allows deeper penetration into retail scenarios. This ultimately translates to staying closer to consumers than competitors,” Zhu said.
Over the past few years, the unmanned retail market has experienced intense competition, leading to consolidation among brands and companies. Many players have exited the market, but notable firms like Ubox, Nongfu Spring, and Genki Forest have aggressively expanded their presence to secure advantageous positions.
However, the competition for location dominance is not just about securing territory—it is fundamentally about fulfilling consumer demands. As user preferences grow increasingly diverse and personalized, the unmanned retail space expects to see more applications of AI-driven solutions, expanding its reach into new scenarios.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3064608039609477">article</a> was written by Huang Nan for 36Kr.

Smart vending cabinets bring a fresh face to retail in China

Retail

Consumer Services

… href="https://www.cas-ruiyi.com/">Care</a>, a Beijing-based medtech company, has raised an eight-figure RMB sum in a Series A+ funding round led by CRHC Fund. The proceeds will be allocated toward product R&amp;D, clinical trials, registration, and market expansion. Founded in December 2020, the company specializes in neuroscience-driven solutions for neurological disorders and has secured six medical device registrations. —<a href="https://36kr.com/p/3083968909080712">36Kr</a></li>
<li aria-level="1"><a href="http://www.xiaochong.com/en/">Pilton</a>, a Chinese pet tech startup, has secured  RMB 30 million (USD 4.2 million) in a Series A funding round led by Anji Government Industrial Fund, with participation from Bohuiyuan Venture Capital and SmartPet. The funds will be used to expand its smart pet cabin product line. —<a href="https://36kr.com/p/3080983870551944">36Kr</a></li>
<li aria-level="1">Avatr, a joint venture led by Chang’an Automobile and 12 other investors, has secured RMB 11.1 billion (USD 1.6 billion) in its Series C funding round. Chang’an contributed RMB 4.55 billion (USD 637 million), retaining a 40.99% stake. Avatr aims to leverage these funds to expedite its electric vehicle R&amp;D and international market expansion. —<a href="https://36kr.com/p/3083825162401925">36Kr</a></li>
<li aria-level="1"><a href="https://aishiai.com/">AIsphere</a>, a Beijing-based generative artificial intelligence startup, completed its Series A2 to A4 funding rounds, raising RMB 300 million (USD 42 million). Backed by Ant Group, Beijing AI Investment Fund, and CAS Investment Management, the funds will focus on enhancing its video generation technologies. —<a href="https://36kr.com/p/3083822232942983">36Kr</a></li>
<li aria-level="1"><a href="http://xrething.com/">Xirui</a>, an advanced material company, has secured an eight-figure RMB sum from a Series A funding round led by Hainan Zhonghao Enterprise Management. The company plans to expand its rare-earth antibacterial materials production and commercialization efforts. —<a href="https://36kr.com/p/3081191937407363">36Kr</a></li>
<li aria-level="1">Shijing Technology, a Nanjing-registered precision ceramics and metals manufacturer, has raised nearly RMB 10 million (USD 1.4 million) in an angel funding round. The funds will support production scaling, R&amp;D, and market expansion. —<a href="https://36kr.com/p/3082371000908160">36Kr</a></li>
</ul>
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<h3>Alibaba’s Intime, Tyme, Zhipu AI, and more made recent headlines:</h3>
<ul>
<li aria-level="1">Alibaba Group announced the sale of its department store unit, Intime Retail, to a consortium co-led by Youngor Fashion and Intime’s management team for RMB 7.4 billion (USD 1 billion). The deal is subject to regulatory approvals.</li>
<li aria-level="1">Tyme Group, a digital banking platform serving customers across Africa and Southeast Asia, raised USD 250 million in an oversubscribed Series D funding round, achieving a valuation of USD 1.5 billion. Nubank led the round with a USD 150 million investment, while M&amp;G Catalyst invested USD 50 million. Existing shareholders contributed the remaining USD 50 million.</li>
<li aria-level="1">Zhipu AI, one of China’s AI unicorns, completed a new funding round, raising RMB 3 billion (USD 420 million). The round included participation from several private and state-backed investors, with Legend Capital Management among the returning backers.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Swipey raises funding from 1337 Ventures, Funding Societies secures USD 25 million, CATL eyes secondary listing in Hong Kong, and more

Private Equity

Merger &amp; Acquisition

Malaysia

Japan

India

… delivers on his vow to cancel subsidies, which currently total as much as USD 7,500 for all-electric sedans priced under USD 55,000. Experts say SHM would have a good chance of selling at a price of around USD 50,000, not far above the average new vehicle price in the US.
But a heftier price tag might be more realistic, analysts say, given the large number of sensors and costliness of chips and batteries. This, in turn, would mean the target market is affluent consumers looking to buy cars with or without subsidies.
More than price, the company intends to emphasize the advanced driving and entertainment features of the Afeela.
Ryosuke Katsura, a senior technology analyst at SMBC Nikko Securities, noted the company's partnership with US-based Epic Games, known for Fortnite video games, to develop driver assistance systems and games using augmented reality (AR).
"Cars are an interesting environment for trying out AR because passengers are looking at the real world via the glass windows, which can be used to project things. I imagine Kawanishi may be thinking such things," Katsura said.
Nakanishi, the Japanese analyst, said SHM will "be in its element" as autonomous driving is realized. "It has strength in entertainment and games, which Tesla doesn't have. As demand for mobility diversifies, there should be a place in the market for Afeela," he said.
The first test of Afeela's viability as a product is just around the corner, but Kawanishi seemed to be taking the upcoming release in stride.
"For me, launching the product isn't the goal, it's the starting line," he said. The emphasis on software and update features will mark "a clear difference from the conventional world, in which you sold a car and that was it."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/Tech-Asia/Sony-and-Honda-prepare-for-tough-U.S.-EV-debut-under-Trump" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Sony and Honda prepare for tough US EV debut under Trump

Northeast Asia

Honda

Electric Vehicles

Mobility

… is its relative lack of integrated smart driving software solutions. Over the past year, former Xpeng’s head of autonomous driving Wu Xinzhou has been leading Nvidia’s efforts to close this gap. According to sources cited by 36Kr, Nvidia’s first-generation software prioritizes nationwide functionality and operates without relying on high-definition maps.
“They are still in the 0–1 validation stage. Wu Xinzhou works extremely hard, often personally testing demos on vehicles, and these demos are updated daily,” said an insider familiar with Nvidia’s progress. However, this approach is said to lag behind the E2E approach that leading companies started adopting a year ago.
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Nvidia’s slower progress in this aspect has led its customers to explore other solutions. For instance, Mercedes-Benz has <a href="https://kr-asia.com/mercedes-benz-to-rev-up-intelligent-driving-with-new-all-electric-cla">adopted the E2E solution from Momenta</a> and will integrate it into its new CLA model. In addition, Momenta’s technology is being implemented in models by BYD’s Denza, SAIC Motor’s IM Motors, and GAC Toyota.
Of course, Nvidia’s Thor remains a benchmark for on-device computational power in the AI era. Automakers without in-house chip solutions, as well as those aiming to compete with Tesla, may still find Thor an attractive option.
However, if Nvidia can enhance its integrated software and hardware capabilities, it would not only drive growth in its automotive business but also strengthen its understanding of the Chinese smart driving market. With automotive revenue currently representing just 1% of Nvidia’s total earnings, the segment requires a more robust foundation to mitigate risks and ensure long-term stability.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3081224356624515">article</a> was written by Li Anqi for 36Kr.

Nvidia’s Thor chip setbacks test automaker confidence, opening doors for rivals

Nvidia

Artificial Intelligence

Deep Tech

Semiconductors

AI Infrastructure

… would warrant a detailed, multipage report,” an industry insider claimed.
To its credit, Northvolt did write reports documenting these issues, identifying causes, and proposing solutions. However, the reports were often shelved and forgotten.
“Eventually, they stopped even going to the factory floor. They stayed in the office writing beautifully crafted PowerPoint presentations. These presentations outlined every issue, potential solution, and future preventive measures in meticulous detail. Anyone reading them would have been impressed,” the source said.
But PowerPoint presentations do not fix manufacturing problems. The core issue persisted: Northvolt’s battery process parameters were flawed from the very beginning. And when the first step is wrong, no number of subsequent steps can correct it.
An individual who worked with Northvolt highlighted the company’s misplaced priorities:
<blockquote>“The company seemed obsessed with the appearance and dimensions of its battery casings, aiming to make them more aesthetically pleasing than anyone else’s. Chinese battery manufacturers—or any battery manufacturer—focus on the chemistry and performance of their batteries.”</blockquote>
“We can raise a factory’s battery yield to 96% in just four months. Northvolt took four years and only achieved 70%,” said a Chinese executive after a recent interaction with Northvolt.
By 2022, despite holding USD 30 billion in orders, Northvolt still hadn’t achieved large-scale battery production. The situation remained unchanged in 2023.
In June 2024, BMW finally ran out of patience and canceled its USD 2 billion battery contract. Five months later, Northvolt declared bankruptcy.
As of December 2023, Northvolt’s battery production capacity was a mere 0.5% of its original target. The once-perfect market timing was squandered by endless delays, and Europe’s supportive policies gave way to eroded patience. Under the leadership of a Tesla veteran, Northvolt’s lofty ambitions ultimately led to its downfall.
Robin Zeng, chairman of CATL, once publicly questioned why Europe still struggles to produce high-quality batteries. Northvolt’s failure suggests that poor designs, processes, and production methods are key contributors. One could argue that intentions, positions, and attitudes must also be factored in.
Europe is not inherently incapable of producing batteries. In fact, the VDA standard battery cell, widely adopted today, was originally developed to European specifications, positioning Europe as an early benchmark setter.
Europe’s top three automakers—Volkswagen, BMW, and Mercedes-Benz—have all played pivotal roles in developing China’s power battery industry. Volkswagen invested in Gotion High-tech, BMW indirectly supported CATL, and Mercedes-Benz, as a major shareholder, helped Farasis Energy establish its product quality system.
However, while European companies excel in R&amp;D, they often struggle with implementation and are slow to embrace change. Their mature manufacturing systems, once a symbol of precision and reliability, now appear rigid and resistant to reinvention.
Chinese battery companies, by contrast, relied initially on rapid replication and learning capabilities to quickly establish a robust battery supply chain. As the EV market boomed, they leveraged large-scale market applications to innovate and iterate, transitioning from learners to leaders.
This dynamic extends to automakers as well. In China, a new car model that sustains peak popularity for over a year can already be considered a blockbuster. The development cycle for new cars has been shortened to around 12 months, compared to the 3–4 years typically required in Europe.
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European manufacturing has long been synonymous with precision and superior quality. Historically, its deliberate pace ensured reliability, but in today’s fast-moving automotive industry, speed has become the ultimate competitive advantage. The rate of product iteration and sales volume now determines who emerges as the next industry powerhouse.
An individual with experience engaging European automaker CEOs said, “There’s a general sense of anxiety among these leaders. They want to accelerate innovation and break free from rigid traditions. But the power of one person is rarely enough to transform an entire organization from top to bottom.”
This reality extends beyond automakers to companies like Northvolt. Europe’s EV industry remains anchored in the manufacturing strengths it has cultivated since the Industrial Revolution, but its pace of change has fallen far behind the demands of the times. Falling behind in today’s environment can mean being left behind entirely without timely intervention.
To compete, Europe’s tradition of excellence is no longer sufficient. It must adapt to a world that moves faster than ever.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3078598057736064">article</a> was written by Han Yongchang for 36Kr.

Northvolt’s fall: How hubris and blunders shattered Europe’s battery ambitions

Batteries

Europe

… metrics or the impact on unit economics. With commercial success likely still years away, the focus for now is clear: test, learn, and adapt.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3082370666543489">article</a> was written by Ren Cairu for 36Kr.

Meituan’s drone delivery debuts in Dubai, eyeing a future in last-mile logistics

Keeta

On-Demand Services

Logistics

Food Delivery

Grocery Delivery

MENA

… the campaign's importance in the platform’s e-commerce ambitions. In November, TikTok Shop accelerated merchant recruitment by updating its onboarding policies for the US market. Sellers with local inventory and valid business licenses could now apply without needing operational proof from third-party platforms, lowering the barrier to entry.
At the same time, TikTok began testing a feature that allows creators to add third-party shopping links—such as links to Amazon, Walmart, and CJ—to their content. This feature enables creators to pin shopping links at the top of comment sections on TikTok posts, enhancing visibility. Currently, the feature remains in the testing phase.
TikTok has also deepened its integration with Lemon8, making it possible for users to access Lemon8 directly from TikTok. This marks a shift in traffic dynamics as Lemon8, which has previously relied on TikTok for user acquisition, is now driving traffic back to TikTok. However, some merchants are cautious about Lemon8’s monetization potential and are adopting a wait-and-see approach.
Looking at TikTok Shop’s various efforts, it’s clear that this Black Friday campaign holds great significance for its e-commerce strategy.
On the one hand, TikTok Shop is under pressure to meet its ambitious gross merchandise value (GMV) targets in the US market. According to a report by <a href="https://36kr.com/p/2567221156472455">36Kr</a>, TikTok Shop aims to achieve USD 50 billion in GMV by 2024. Since ramping up its focus on the US last year, the US has become a key growth driver and is expected to account for more than half of TikTok Shop’s GMV.
At the start of this year, <a href="https://www.bloomberg.com/news/articles/2024-01-03/tiktok-eyes-17-5-billion-shopping-business-on-amazon-s-turf">Bloomberg</a> reported that TikTok Shop’s annual GMV target for the US market was USD 17.5 billion. By October, however, the platform’s GMV in the US peaked at USD 793 million, adding pressure for a strong year-end performance.
On the other hand, TikTok continues to face the looming risk of a US ban. Although Donald Trump was recently reelected and assured the media that he would not impose a ban on TikTok, uncertainty persists. TikTok’s appeal against a potential ban is still unresolved, and the platform’s deadline to comply with <a href="https://kr-asia.com/tiktok-on-the-clock-bytedance-faces-us-divestiture-deadline">divestiture requirements</a> coincides with Trump’s inauguration day. The reliability of Trump’s assurances also remains in question, leaving TikTok in a precarious position.
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Amid these broader challenges, merchants are focusing on immediate opportunities. Most local sellers are diversifying their operations across Amazon and independent platforms rather than fully committing to TikTok Shop. Meanwhile, cross-border merchants are capitalizing on TikTok’s traffic windfall while it lasts, securing gains before the potential regulatory storm arrives.
For many, the risks associated with account suspensions are simply part of the equation. As one cross-border service provider put it bluntly: “If you’re worried about these risks, then the US market isn’t for you.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3066759952905088">article</a> was written by Lan Jie for 36Kr.

TikTok Shop dominates Black Friday, but will regulatory hurdles stall its advance?

TikTok

East Asia

TikTok Shop

E-commerce

Consumer Economy

… to fostering brand perception. “We’re no longer chasing high returns on low costs but instead leveraging content to spark discussions and emotional resonance,” Su said, adding that this approach helped Starbucks retain its competitive edge against low-cost rivals offering RMB 9.9 (USD 1.4) coffee deals.
This shift reflects the evolving priorities of brands investing in short dramas. Many are now aiming to merge branding with performance—seeking not just conversions but also content that reinforces or reshapes their brand image.
Starbucks’ campaign underscores the importance of quality content. The drama featured cinematography comparable to traditional TV productions and professional actors with notable experience. As viral traffic becomes harder to achieve, premium content has emerged as the key to staying relevant.
The format of short dramas is also evolving. Previously, a single drama might include multiple product placements, but many are now crafted exclusively for one brand, allowing for seamless integration of narrative and branding. This “soft placement” approach has become the norm for brand-led short dramas.
As Starbucks’ experience shows, short dramas remain effective, especially for local lifestyle brands that face less competition than crowded sectors like beauty and skincare. However, competition is intensifying as brands like McDonald’s, KFC, and Tai Er enter the space, driving up costs.
New conversion strategies are also taking shape. During Singles’ Day, some influencers tied their live streaming personas to short drama characters, leveraging these roles to boost product sales. MCN agencies have even licensed such content for brands to use in secondary video marketing.
Despite rising costs, Starbucks’ success and other recent campaigns suggest there’s still value in short drama marketing. However, the exponential growth seen during the Kans-led boom is unlikely to be replicated.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3061620897965189">article</a> was written by Lan Jie for 36Kr.

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