Alibaba

Baidu

ByteDance

Meituan

Pinduoduo

Tencent

Most Followed

KrASIA Connection

China's Auto Sector

Earnings Reports

Inside China's Startups

Venture Roundup

Our Events

View All

Collections

News

Features

Insights

Ecosystem

DeepSeek

Kuaishou

Li Auto

Xiaohongshu

Xiaomi

Xpeng

On the Radar

Events

Latest

About

36Kr (EN)

Consumer

Robotics

Fintech

Southeast Asia's biggest technology stars are fighting to retain their sparkle in the eyes of fickle investors, as pressure mounts to demonstrate profitability now that trimming fat off their businesses appears insufficient.
The cautious mood, heightened by geopolitical tensions and a fragile macroeconomic environment, is also affecting startups looking for capital. Fundraising in the region fell by one-third year-on-year in the first half of 2024.
Shares in Singapore's Grab Holdings and Indonesia's GoTo are down 2% and almost 40% this year, respectively, despite posting smaller losses in their April-June results. Meanwhile, Grab's local peer Sea has seen its share price double this year but is still more than 75% lower than its November 2021 peak.
"Investors still deeply value companies that can grow their addressable market profitably," Ranjan Sharma, who oversees Southeast Asian tech equity research at JPMorgan, told Nikkei Asia. "Companies are facing more stringent scrutiny on their investments and claims of profitable growth and market opportunity."
Grab, Sea, and GoTo, regarded as tech champions in the ten-member ASEAN, have met "divergent market reactions" that highlight differing investor perceptions of their prospects, said David Materazzi, CEO of trading software provider Galileo FX.
"Sea … is viewed as having a more robust and scalable business model, which, despite challenges, appears closer to achieving sustainable profitability," Materazzi told Nikkei. "Grab and GoTo, however, are seen as being on more precarious ground, with their current strategies not yet convincing the market of their ability to generate consistent profits."
Grab reported that its operating loss shrank 68% in the second quarter, on an annualized basis, to USD 56 million. Offering services from food delivery to ride-hailing via its superapp, the Nasdaq-listed group has stuck with its 2024 guidance of between USD 250–270 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
But CFO Peter Oey declined to speculate when the company might become profitable.
"We haven't given guidance as to when we will do that," Oey told Nikkei after Grab's second-quarter results were reported. "In due time, we'll give some more guidance around the timing of our net profit—net income perspective—but our focus now is to improve the dollar-EBITDA."
Analysts from HSBC's Global Research unit, however, believe the company has a knack for "innovative products" like ride-sharing schemes and subscription plans for its business arms that can "fuel higher revenue growth in the future," although risks linger.
"[A key downside risk is an] increase in cost of capital as Grab is a high duration stock and its valuation is quite sensitive to changes in cost of capital," the analysts wrote in a research note.
Indonesia-listed GoTo, which, like Grab, offers a competing superapp platform with similar services, said losses in the second quarter shrank 42% year-on-year.
Analysts say GoTo has to do more than narrow losses, and that the company needs to become more competitive and improve its fundamentals to start making money.
"This set of results shows that the remaining on-demand business is still under strong competition," Jianggan Li, CEO of Singapore-based consultancy Momentum Works, told Nikkei. "GoTo still needs to send a strong signal to investors about its financial viability."
GoTo's challenge, according to Marcus Wolter, Director at corporate advisory law firm Caldwell, is to integrate business lines across e-commerce, ride-hailing, and financial services effectively as a precursor to sustainable profits.
"The market may be skeptical about GoTo's ability to achieve synergy between these operations, especially given the competitive pressures in Indonesia," Wolter told Nikkei.
In contrast, Singapore's Sea, which operates e-commerce and gaming businesses, has experienced a turnaround in its fortunes after regularly reporting a profit since the last quarter of 2022.
The New York Stock Exchange-listed company's net income for April-June was USD 79.9 million.
It expects online shopping platform Shopee—the group's biggest business—to generate greater sales value this year than previously stated, in March.
"Sea, in our view, is a distinct internet company in Southeast Asia, with competitive strengths in online games and online shopping," Jefferies' equity research unit noted in a report after the company released its second quarter results. "Its online shopping platform, Shopee, is well-known and is enjoying fast growth, with a ramp-up in monetization and operating efficiency."
The way Sea, Grab, and GoTo have been assessed on their prospects for profitability highlights skepticism over ASEAN startups that chase capital but fall short in cash-generating results.
Fundraising activity in Southeast Asia has waned as institutional backers remain picky about betting on unproven businesses. A DealStreetAsia report on the first six months of this year showed the total value of equity funding proceeds from Southeast Asian startup deals fell 36% year-on-year to USD 2.29 billion—the lowest in over five years.
Analytics company GlobalData highlighted that, in the Asia Pacific, venture capital deals with disclosed funding rounds declined 16.5% year-on-year in the first half, reflecting ASEAN's downturn.
"Macroeconomic challenges and geopolitical tensions seem to have had an impact on investor confidence," Aurojyoti Bose, lead analyst at GlobalData, said in a note this month, pointing out that "most of the funding rounds announced in the region registered a decline in volume."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/ASEAN-tech-stars-Grab-GoTo-and-Sea-fight-to-retain-market-sparkle" 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>.

ASEAN tech stars Grab, GoTo, and Sea fight to retain market sparkle

Gojek

Grab

Tokopedia

Sea Group

Shopee

GoTo

SEA Tech

Singapore

Malaysia

Thailand

Vietnam

Indonesia

Philippines

Southeast Asia

… predecessor.
For instance, uploading a screenshot of Zhipu AI’s homepage allows GLM-4V-Plus to instantly convert it into HTML code, helping users quickly recreate a website.
Unlike typical video comprehension models, GLM-4V-Plus not only understands complex videos but also has a sense of time. You can ask it about specific moments in a video, and it can identify the exact content. However, as of this writing, Zhipu AI’s open platform doesn’t yet support video uploads for this feature.
Despite its impressive visual capabilities, GLM-4V-Plus lags in multi-turn dialogues and text understanding, meaning it’s not yet on par with GPT-4o in this regard.
<table>
<caption>Video Understanding Capability Benchmarks</caption>
<thead>
<tr>
<th>Model</th>
<th>MVBench</th>
<th>LVBench</th>
<th>Temporal QA</th>
<th>Multi-turn Dialogue</th>
<th>Chinese-English Support</th>
</tr>
</thead>
<tbody>
<tr>
<td>LLaVA-NeXT-Video</td>
<td>50.6</td>
<td>32.2</td>
<td>❌</td>
<td>❌</td>
<td>❌</td>
</tr>
<tr>
<td>PLLaVA</td>
<td>58.1</td>
<td>26.1</td>
<td>❌</td>
<td>❌</td>
<td>❌</td>
</tr>
<tr>
<td>LLaVA-OneVision</td>
<td>59.4</td>
<td>27.0</td>
<td>❌</td>
<td>✅️</td>
<td>✅️</td>
</tr>
<tr>
<td>GPT-4o</td>
<td>47.8</td>
<td>34.7</td>
<td>❌</td>
<td>✅</td>
<td>✅️</td>
</tr>
<tr>
<td>Gemini 1.5 Pro</td>
<td>52.6</td>
<td>33.1</td>
<td>✅️</td>
<td>✅️</td>
<td>✅️</td>
</tr>
<tr>
<td>GLM-4V-Plus</td>
<td>71.2</td>
<td>38.3</td>
<td>✅️</td>
<td>✅️</td>
<td>✅️</td>
</tr>
<tr>
<td>GLM-4-Plus/GPT-4o</td>
<td>149%</td>
<td>110%</td>
<td>-</td>
<td>-</td>
<td>-</td>
</tr>
<tr>
<td>GLM-4-Plus/Gemini 1.5 Pro</td>
<td>135%</td>
<td>116%</td>
<td>-</td>
<td>-</td>
<td>-</td>
</tr>
</tbody>
</table>
At KDD, Zhipu AI also introduced CogView-3-Plus, the next generation of its text-to-image model. Compared to FLUX, the current frontrunner in the field, CogView-3-Plus holds its own in generating images within 20 seconds.
<table>
<caption>Text-to-image Generation Capability Benchmarks</caption>
<thead>
<tr>
<th>Model</th>
<th>Clip Score</th>
<th>AES Score</th>
<th>HPSV2</th>
<th>ImageReward</th>
<th>PickScore</th>
<th>MPS</th>
</tr>
</thead>
<tbody>
<tr>
<td>SD3-Medium</td>
<td>0.2655</td>
<td>5.52</td>
<td>0.2774</td>
<td>0.2144</td>
<td>21.31</td>
<td>10.57</td>
</tr>
<tr>
<td>Kolors</td>
<td>0.2726</td>
<td>6.14</td>
<td>0.2833</td>
<td>0.5482</td>
<td>22.14</td>
<td>11.86</td>
</tr>
<tr>
<td>DALLE-3</td>
<td>0.3237</td>
<td>5.95</td>
<td>0.2904</td>
<td>0.9734</td>
<td>22.51</td>
<td>11.95</td>
</tr>
<tr>
<td>MidJourney-V5.2</td>
<td>0.3144</td>
<td>6.12</td>
<td>0.2813</td>
<td>0.8169</td>
<td>22.74</td>
<td>12.40</td>
</tr>
<tr>
<td>MidJourney-V6</td>
<td>0.3276</td>
<td>5.95</td>
<td>0.2798</td>
<td>0.8351</td>
<td>22.78</td>
<td>12.34</td>
</tr>
<tr>
<td>Flux-dev</td>
<td>0.3155</td>
<td>6.04</td>
<td>0.2881</td>
<td>1.0333</td>
<td>22.96</td>
<td>10.12</td>
</tr>
<tr>
<td>CogView-3-Plus Full (20s)</td>
<td>0.3177</td>
<td>5.90</td>
<td>0.2963</td>
<td>0.9797</td>
<td>22.53</td>
<td>12.55</td>
</tr>
<tr>
<td>CogView-3-Plus Lite (5s)</td>
<td>0.3119</td>
<td>5.91</td>
<td>0.2843</td>
<td>0.9384</td>
<td>22.52</td>
<td>12.48</td>
</tr>
</tbody>
</table>
<figure id="attachment_149818" aria-describedby="caption-attachment-149818" style="width: 560px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-149818" src="https://console.kr-asia.com/wp-content/uploads/2024/09/CogView-AI-1024x724.jpeg" alt="" width="560" height="396" srcset="https://console.kr-asia.com/wp-content/uploads/2024/09/CogView-AI-1024x724.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/09/CogView-AI-300x212.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2024/09/CogView-AI-768x543.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2024/09/CogView-AI.jpeg 1080w" sizes="(max-width: 560px) 100vw, 560px" /><figcaption id="caption-attachment-149818" class="wp-caption-text">Image source: 36Kr.</figcaption></figure>
CogView-3-Plus also supports image editing, such as changing object colors or replacing items in an image.
<figure id="attachment_149819" aria-describedby="caption-attachment-149819" style="width: 760px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-149819" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Zhipu-AI-Sample-1024x507.jpeg" alt="" width="760" height="376" srcset="https://console.kr-asia.com/wp-content/uploads/2024/09/Zhipu-AI-Sample-1024x507.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/09/Zhipu-AI-Sample-300x149.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2024/09/Zhipu-AI-Sample-768x380.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2024/09/Zhipu-AI-Sample.jpeg 1080w" sizes="(max-width: 760px) 100vw, 760px" /><figcaption id="caption-attachment-149819" class="wp-caption-text">Image source: Zhipu AI.</figcaption></figure>
It took Zhipu AI over seven months to add the "Plus" suffix to models launched in January 2024—its longest development cycle since 2023.
What’s clear is that GPT-4o represents a pivotal moment for AI companies. As multimodal capabilities merge, the “black box” of language understanding is beginning to open—only to be quickly resealed by GPT-4o.
Most Chinese AI companies are adopting a divide-and-conquer strategy, first enhancing single-modal capabilities before tackling integration challenges. Zhipu AI is still in this phase, but the launch of its video call feature hints at the early stages of multimodal fusion.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2928356939143809">article</a> was written by Zhou Xinyu for 36Kr.
<style>table{width:100%;border-collapse:collapse;font-size:.8em;margin-bottom:2em}table caption{font-weight:700;font-size:1.15em}th{text-align:left;padding:.7em .3em 0 0}td{padding:.7em .3em 0 0}@media only screen and (max-width:767px){td,th{font-size:.7em}}</style>

Zhipu AI brings GPT-4o-like model to China with “video call” integration

China Tech

Deep Tech

China

Artificial Inteligence

… agencies develop the capabilities they need to take ownership of their digital transformation.
<h3>KR: If you had to rank GovTech’s projects based on their impact, which one would top your list, and why?</h3>
SS: It is challenging to single out one project as each GovTech product is developed to address a specific problem for a distinct audience. Hence, the impact of each product varies based on the issue it addresses and the needs of the target users.
<h3>KR: GovTech runs its flagship event, the STACK Developer Conference, biennially. What is the vision behind this initiative, and how does it differ from the STACKx events?</h3>
SS: The STACK Developer Conference is the largest government-led developer conference, serving as a platform for the government, industry, and tech communities to gather and collaborate on opportunities that further Singapore’s “Smart Nation” vision. It fosters a culture of continuous learning within the developer community and serves as a hub for the free exchange of knowledge, ideas, and solutions.
The conference also offers a two-way platform where developers can learn about government projects, offer feedback for improvement, and connect with the teams behind these initiatives.
The smaller STACKx events offer a platform for deeper discussions and learning opportunities centered around technology. These events promote the adoption of centrally developed digital solutions and facilitate knowledge exchange between the government and industry. STACKx also allows for deep dives into specific areas of technology, such as data and artificial intelligence.
<h3>KR: What can we expect from this year’s STACK Developer Conference compared to previous iterations?</h3>
SS: Over the years, STACK has remained true to its roots as a technical event, consistently focusing on topics directly relevant to ICT professionals. The inaugural conference in 2018 centered around the launch of the SGTS and the promotion of cloud adoption, drawing 1,000 attendees to the physical event.
In 2020, the conference transitioned to a virtual format in response to Covid-19 restrictions, with a continued emphasis on cloud adoption and technologies that became essential during the pandemic. Since then, STACK has adopted a hybrid format to meet the increasing demand for virtual participation while reaching a broader audience.
This year's STACK, themed “Supercharge Your Digital Engineering Productivity,” introduces a new product showcase segment. Attendees can visit booths to explore specific products, participate in onsite demonstrations, and engage directly with spokespersons.
The showcase will feature over ten GovTech products, including applications designed to create secure digital spaces, underscoring our commitment to fostering trust in the digital realm. Additionally, attendees will learn how AI can be leveraged to enhance developer productivity.
<h3>KR: Who stands to benefit most from attending the latest edition of the conference in Singapore this November?</h3>
SS: The latest edition of the conference will benefit a wide range of tech professionals, including software developers, system architects, cybersecurity specialists, UI and UX designers, and data engineers from both the public and private sectors.
Attendees will gain insights into the latest tools, frameworks, and best practices, focusing on enhancing productivity. Private sector professionals can explore GovTech’s open-source tools like Purple A11y and learn from case studies on AI and cloud technologies. Those interested in collaboration with GovTech or other government agencies will find valuable opportunities for co-creation.
Public officers will also benefit by discovering GovTech’s suite of products, which can be leveraged to improve agency productivity. The conference serves as a platform for the tech community to unite, with sessions covering cloud technology, data and AI, digital culture, cybersecurity, and open-source collaboration, offering something valuable for every attendee.
<a href="https://go.gov.sg/stack2024-kra" target="_blank" rel="noopener"><img loading="lazy" decoding="async" class="alignnone wp-image-149806 size-full" src="https://console.kr-asia.com/wp-content/uploads/2024/09/GovTech-STACK-Developer-Conference.jpg" alt="" width="1280" height="427" srcset="https://console.kr-asia.com/wp-content/uploads/2024/09/GovTech-STACK-Developer-Conference.jpg 1280w, https://console.kr-asia.com/wp-content/uploads/2024/09/GovTech-STACK-Developer-Conference-300x100.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/09/GovTech-STACK-Developer-Conference-1024x342.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/09/GovTech-STACK-Developer-Conference-768x256.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></a>
Set for November 6–7, 2024, the STACK Developer Conference has opened early bird registrations, available until September 20. <a href="https://go.gov.sg/stack2024-kra" target="_blank" rel="noopener">For more details or to register, visit this page.</a>
This article was published in partnership with GovTech.

Shaping a digital nation: GovTech’s Chang Sau Sheong on leading Singapore’s tech evolution

Q&amp;A

… Hisense-branded TVs accounted for 58.5% of the global market for 100-inch and larger TVs, maintaining the top position. Hisense-branded TVs also led the retail market share in the 100-inch and larger segments in Germany, Italy, and the US.
However, despite significant market share gains in various regions, Hisense's performance highlights an issue of increased revenue without increased profits. The report shows that the company’s revenue in the first half of the year reached RMB 25.461 billion (USD 3.6 billion), up 2.36% YoY. However, net profit attributable to shareholders fell to RMB 834 million (USD 117.2 million), down 19.56% YoY.
The decline in domestic sales and continued erosion of gross profit margins have impacted Hisense’s profits.
In its financial report, Hisense attributed these issues to temporary increases in raw material costs, significant short-term fluctuations in global shipping prices, and a notable drop in domestic sales of its main brand, all of which have temporarily affected profitability.
A research report by Guolian Securities echoed these concerns, pointing to the rise in panel prices, short-term volatility in freight rates, and a significant decline in domestic sales as the main reasons for the lower gross profit margins. However, as panel price increases are expected to narrow in Q3 2024, the company’s cost pressures may ease.
For Hisense, the commitment to a global strategy is more crucial than ever.
After several rounds of high growth, the Chinese TV industry appears to be struggling to sustain itself, with TV usage rates dropping to less than 30% as of 2022. In the overseas market, Hisense’s challenge is to secure a place in the high-end segment under the guidance of strategies focused on premium products and large screens.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2927293475789702">article</a> was written by Leslie Zhang for 36Kr.

Hisense's global push: How China’s TV giant is conquering overseas markets

… aria-level="1"><a href="https://cloud.infini-ai.com/platform/ai">Infinigence</a>, a Beijing-based artificial intelligence infrastructure developer, raised nearly RMB 500 million (USD 70.2 million) in a Series A funding round. The round was jointly led by Qiming Venture Partners, Hongtai Aplus, and a Legend Capital-managed fund, along with participation from investors such as Lenovo Capital and Incubator Group, Xiaomi, and Shunwei Capital.</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>.
<style>.addcaption{font-size:14px!important;line-height:20px!important;color:inherit;padding-top:8px;border-top:1px solid #e8e8e8}.entry-content blockquote p{font-size:22px;line-height:33px}@media only screen and (max-width:767px){.entry-content blockquote p{font-size:20px;line-height:32px}.entry-content h3{font-size:24px;line-height:32px}}</style>

Deals in brief: Nvidia invests in Sakana AI and You.com, Zhipu AI secures new funding at RMB 20 billion valuation, six other China deals, and more

Nvidia

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Japan

Bubble tea brand The Alley has made a notable return to mainland China, opening new stores in Hangzhou and Dongguan. The Hangzhou location is situated in Jinsha Paradise Walk, while the Dongguan store has taken its place in Times City Plaza. The Alley’s next moves include opening additional outlets in Guangdong and Shanghai, with an ambitious plan to expand across Jiangsu, Zhejiang, Shanghai, and the Guangdong and Guangxi regions throughout the year.
Pearl milk tea has been enjoying a resurgence in recent years, particularly in South China, which has become a hotspot for new local brands. Chen Mandi, for instance, once sold over a thousand cups daily per store, while Baojinzhu has expanded to nearly a thousand outlets. Similarly, brands like Baozhugong and Baozhumei, both known for their brown sugar pearl milk tea, have scaled to hundreds of locations.
Zhao Yuechao, head of The Alley in China, told 36Kr that the decision to reenter the mainland market was driven by the fresh potential in the growing pearl milk tea trend.
Looking back, The Alley was one of the first internet-famous brands in the tea beverage scene, though its path was anything but smooth. Founded in Taiwan in 2013, The Alley quickly expanded to Japan, Canada, Hong Kong, and beyond. By 2017, its first store in mainland China triggered a frenzy, with eager customers lining up for hours.
What followed is a familiar story. The Alley’s team misjudged the trademark registration process, allowing just a month when it actually required at least six. This oversight opened the door for counterfeit stores to flood the market. Founder Qiu Maoting lamented the irony: thousands of Alley stores had popped up, yet none were his. The imitators not only used the brand’s name and logo but also managed to register the trademark first, forcing the real company into retreat.
After more than two years of legal battles and anti-counterfeit efforts, The Alley finally secured its rightful 43-class trademark registration at the end of 2019. In 2022, CCTV Finance reported on The Alley’s long and costly battle against counterfeiters. However, the prolonged trademark war nearly pushed the brand into irreversible decline, with many mainland stores closing in 2021 and 2022.
Overseas, however, The Alley saw a different picture. The brand’s international presence provided a lifeline for its growth, and by the end of 2022, The Alley had opened more than 500 directly operated stores across 17 countries. Today, it operates in over 100 cities worldwide.
Reflecting on The Alley's global success, Zhao commented that while many tea beverage brands are racing to expand internationally, The Alley is one of the few making a comeback to its home market. On its return strategy, Zhao emphasized two key factors: handmade production and competitive pricing. The brand will continue to highlight its signature black sugar and fresh milk drinks, made by hand with real ingredients, priced around RMB 15 (USD 2.1) per cup. For locations, The Alley will focus on midrange shopping malls, with stores spanning 20–30 square meters, and a design aesthetic that pairs black with bright orange.
In a 2019 interview with 36Kr, Zhao noted that the Chinese market leads the overseas market by three to four years, with fierce competition. That competition has only intensified today, with brands like <a href="https://kr-asia.com/deals-in-brief-mixue-bingcheng-and-goodme-apply-for-hong-kong-ipo-unifahs-and-silicon-box-secure-funding-11-china-deals-and-more">GoodMe, Mixue Bingcheng</a>, <a href="https://kr-asia.com/auntea-jenny-becomes-next-chinese-tea-brand-to-pursue-hong-kong-ipo">Auntea Jenny</a>, and <a href="https://kr-asia.com/chapanda-joins-a-long-queue-of-chinese-tea-brands-seeking-an-ipo">ChaPanda</a> all submitting IPO filings within the past 12 months.
The Alley plans to invest RMB 30 million (USD 4.2 million) in brand marketing and promotion throughout 2024. Yet, the challenge remains: consumer memory is short-term, and The Alley could be facing another uphill battle as it reestablishes its presence in a crowded market.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2925601509710721">article</a> was written by Ren Cairu for 36Kr.

The Alley reenters mainland China: Will the bubble tea brand find its footing again?

GoTo Group is pulling the plug on its Vietnam operations. The Indonesian tech giant announced that it will wind down its Gojek-branded services in the country by September 16, in a move that won’t significantly impact its financials. The company said Vietnam accounted for less than 1% of its gross transactions in the second quarter, signaling that the exit is more about focusing its resources on Indonesia and Singapore—markets where it sees a clearer path to profitability.
It’s a familiar story for GoTo. After shedding other non-core assets and slashing costs, the company has been on a mission to tighten its belt and steer itself toward positive earnings. This includes thousands of job cuts and a sharp reduction in marketing spend, though it has yet to reach net income profitability. GoTo reaffirmed its goal to achieve positive adjusted EBITDA by the end of the year, a critical milestone for a company whose stock has plummeted over 80% since its IPO in 2022.
In Vietnam, competition was intense. Singapore-based Grab dominated, while local player Be Group secured USD 30 million in new funding earlier this year to fuel its own growth. Gojek’s <a href="https://kr-asia.com/go-jek-goes-live-with-motorcycle-taxis-and-couriers-in-vietnam-today">entry</a> into the market in 2018 under the GoViet brand was ambitious, but the reality on the ground was tough. Fragmented competition, leadership turnover, and the failure to fully roll out financial services via its acquisition of WePay in 2020 painted a picture of a company that couldn’t gain its footing. By the time GoViet <a href="https://en.vietnamplus.vn/goviet-to-be-rebranded-as-gojek-vietnam-post177999.vnp">rebranded</a> to Gojek Vietnam in 2020, the <a href="https://kr-asia.com/can-gojek-overcome-its-struggles-in-vietnam">cracks</a> were already showing.
GoTo’s decision follows a pattern. It exited Thailand in 2021, <a href="https://kr-asia.com/tiktok-invests-usd-1-5-billion-in-gotos-tokopedia-to-restart-e-commerce-business-in-indonesia">sold</a> its loss-making Tokopedia e-commerce unit to ByteDance’s TikTok for USD 1.5 billion, and has now decided to close its Vietnam operations. In fact, the company has been reconsidering its entire approach to Southeast Asia. According to <a href="https://www.bloomberg.com/news/articles/2024-02-09/grab-goto-are-said-to-revive-talks-for-ride-hailing-mega-merger">Bloomberg</a>, talks of a merger with Grab surfaced again this year, potentially marking the next chapter in GoTo’s efforts to cut costs and strengthen its competitive edge. But for now, the focus remains on Indonesia and Singapore, the two markets where the company still believes it can deliver on its profitability promise.
GoTo’s Vietnam exit also marks the end of an era that began with high hopes. The company had entered the market with a war chest of USD 500 million, <a href="https://kr-asia.com/indonesian-go-jek-stages-500m-expansion-battle-with-grab-across-sea">backed by investors</a> like KKR, Google, and Temasek. But after leadership changes and the challenges of <a href="https://kr-asia.com/goto-sets-up-three-way-battle-for-southeast-asian-tech-dominance">battling for market share</a> in a country with entrenched rivals, GoTo’s decision to withdraw feels inevitable.
For the tech giant, the road to profitability continues, and it’s getting narrower.

GoTo pulls out of Vietnam as it doubles down on core markets

Transportation

On-Demand Services

Ride-hailing

Mobility

PatSnap, a Singaporean startup that helps businesses search for and analyze patent information, is starting to offer more services tailored to specific industries by increasingly tapping generative artificial intelligence.
Co-founder Guan Dian told Nikkei Asia in a recent interview that the company—whose more than 12,000 corporate clients include Tesla, Siemens, and NASA—aims to win more customers across fields such as pharmaceuticals and material sciences through the new services.
Patsnap's generative AI uses chatbots to answer questions from researchers and IP lawyers, helping them understand complex patent documentation in different regions—something that could otherwise be a huge undertaking when companies are looking to launch products or enter new markets. The services also help clients track any recent technological advances by their competitors.
The startup's large language model (LLM) has been trained using Meta's open-source AI model after accumulating data from 200 million patents, a million scientific and technical books, and billions of new articles and other sources.
"It doesn't make sense for a smaller company like us to build another foundation level [of AI] because it's very costly," Guan said, referring to dominant generative AI technology developed by US companies like OpenAI, Google, and Meta.
She described PatSnap's AI model as a "specialist" that can help experts in different fields seek more technical information, whereas she said existing services like ChatGPT are more for wider general knowledge.
"It's time for companies with expertise in particular verticals—whether it's in patents, medicine, or marketing—to start building on top of these language models," she said.
Since embarking on its own generative AI development a year ago, the company this year launched services for general IPs and another targeted at patents in the pharmaceutical industry, Guan said, adding that a similar offering for the material sciences sector is in the pipeline.
Patsnap was founded by CEO Jeffrey Tiong in 2007 after graduating from the National University of Singapore. Tiong, a biomedical engineer, got the product idea after discovering the difficulty of analyzing patents while interning at a medical startup in the US. Guan, who studied computer science and joined shortly afterward as a co-founder, now leads its Asian businesses.
Early investors include a fund under <a title="" href="https://asia.nikkei.com/Business/Startups/Temasek-s-venture-capital-arm-to-launch-first-Japan-focused-fund" target="_blank" rel="noopener">Vertex Holdings</a>, the venture capital arm of Singapore's state investor Temasek Holdings. In 2021, the company became a unicorn—an unlisted company valued at USD 1 billion or more—after a USD 300 million fundraising led by SoftBank Group's Vision Fund and China's Tencent Holdings. Prominent venture capital firm Sequoia Capital of the US has also invested in the company.
Guan said the company has reached an annual recurring revenue—a key metric for subscription-based software companies—of USD 100 million and turned profitable earlier this year.
Its next focus, Guan said, includes getting ready for an initial public offering. "We still have, in our mind, at least two to three years before the actual IPO. But again, everything is about market timing, and things might change."
According to Guan, US and Chinese clients currently account for around 70% of the company's revenue. She added that PatSnap is expanding its team in Japan, hoping to boost the country's contribution to its revenues to a share of about 10% from just a fraction at the moment.
Guan said the company is benefiting from "decoupling" in the global supply chain, especially the competition between American and Chinese firms, as it is "forcing each side to invest more" in R&amp;D. "That means more R&amp;D expenditure and higher demand for our kinds of products."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/Artificial-intelligence/Singapore-unicorn-Patsnap-to-expand-AI-powered-patent-search" 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>.

Singapore unicorn PatSnap to expand AI-powered patent search

… labor costs, according to 36Kr.
This quarter, commission and advertising revenue grew by 20.1% and 19.7%, respectively. While these figures may fall short of the more than 20% expected growth in in-store business revenue, it's important to note that in-store and to-home performance are now reported together. Since to-home order growth was only 14.2% while in-store growth exceeded 60%, in-store revenue growth actually surpassed expectations.
<div class="embed-container"><iframe src="https://flo.uri.sh/visualisation/19282652/embed" frameborder="0" allowfullscreen> frameborder="0" scrolling="no" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe></div>
<style>@media (min-width:768px){.embed-container{height:600px!important}}@media (max-width:767px){.embed-container{height:480px!important}}</style>
Douyin had previously announced increased subsidies for its lifestyle services in July, raising investor concerns about Meituan’s in-store profit recovery. But profitability remains a priority. On July 1, Douyin raised commission rates for accommodation services from 3–4.5% to 8%, and for beauty services from 3–10% to 4–10%. If any new competitive shifts are in store, they may come from Douyin’s next strategy adjustments in lifestyle services.
whereRelatedArticle
During the earnings call, CFO Chen Shaohui discussed competition, noting that as the industry matures, major players will shift from growth driven by subsidies to growth focused on returns. Chen also emphasized that, while Meituan is closely monitoring its rivals, its strategy centers on its own development and strengthening its long-term advantages.
In community group buying and in-store businesses, Meituan’s battles with competitors may be winding down, but competition won’t stop. New challenges are on the horizon—where will they arise next?
At present, instant retail is gaining momentum—Meituan’s quick commerce business, Shangou, saw its order volume growth outpace food delivery by threefold. Daily order volume is expected to reach nearly 10 million this year. Xiaoxiang Supermarket’s sales grew over 30% in the first half of the year, and Taobao, JD.com, and Douyin Mall have all opened primary traffic channels for instant retail.
In Finite and Infinite Games, philosopher James P Carse distinguishes between finite games, which are played to win, and infinite games, which are played to continue. This perspective has profoundly influenced Wang, who views entrepreneurship as an infinite game—there is no endpoint.
In this light, Wang sees business not as a series of battles to win, but as a continuous journey of growth and adaptation. For Meituan, competition is like a sequence of challenges in an infinite game, where the goal isn’t just to conquer each one but to ensure the company's long-term sustainability and evolution.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2926898335554440">article</a> was written by Ren Cairu for 36Kr.

Meituan’s focus on efficiency pays off with record profits, reducing new business losses