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Deals in brief: Agrifood startup DiMuto secures Series A funding, Finture bags over USD 30 million, DocPro raises pre-seed investment, and more

Venture Capital

Private Equity

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… store count exceeding 50 times that of Chipotle. Additionally, Starbucks’ digital transformation is gradually eroding its identity as a <a href="https://perfectdailygrind.com/2021/06/the-third-place/">“third place,”</a> and cost-conscious consumers may no longer be willing to pay premium prices for takeout coffee.
<h3>The future of Starbucks in China</h3>
The Chinese market, once seen as a cornerstone of Starbucks’ future, is also under pressure. Schultz had high hopes that China, already the company’s second-largest market, could eventually surpass the US. However, the competitive landscape in China has intensified.In just the past year, Luckin Coffee opened as many stores as Starbucks has in all of China, and its sales have already surpassed those of Starbucks China. Price wars led by Luckin and Cotti Coffee have further dented Starbucks’ market position.
Competition isn’t just coming from coffee companies—countless tea brands, such as the rising star Chagee, have set a sales target for 2024 that exceeds Starbucks China's. These brands have had a more significant impact on Starbucks by diverting afternoon traffic. According to Starbucks management, the overall decline in sales is mainly due to a drop in afternoon and evening customers.
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Despite insisting it would not engage in price wars, Starbucks has been offering discounts for months, such as coupons for two drinks for RMB 45.9 (USD 6.4) or three drinks for RMB 55.9 (USD 7.8), mostly available after 4 p.m. on its app and mini-programs.
But how effective is this strategy?
In the third quarter of the 2024 fiscal year, Starbucks China’s total revenue fell 11% year-on-year to USD 730 million. Same-store sales dropped 14%, same-store transactions fell 7%, and the average ticket price declined by 7%.
A mid-level executive at a major restaurant chain in China told 36Kr that Starbucks’ simultaneous decline in same-store transactions and average ticket price indicates a failed promotional strategy. Discounts, generally intended to boost sales, seem ineffective when both key indicators are falling.
Niccol’s previous success at Chipotle did not involve the Chinese market, so his leadership will be tested in uncharted territory. Industry insiders believe this leadership change is more focused on revitalizing the US market. A former mid-level executive at Starbucks noted that the changes at the US headquarters are issues that Belinda Wong, CEO of Starbucks China, and senior executive Molly Liu will need to address as they work to improve performance.
According to a report by <a href="https://www.wsj.com/business/hospitality/starbucks-ceo-how-why-laxman-replaced-689634b2">The Wall Street Journal</a>, Narasimhan had considered strategic partnerships for Starbucks’ wholly-owned Chinese business, with some investors suggesting the company license its operations to local operators, as it does in other countries. Internal disagreements over this decision may have contributed to Narasimhan’s departure.
Niccol, however, has the backing of activist investor Elliott, which could give him the mandate to pursue significant changes, such as selling or franchising Starbucks’ operations in China. The question remains: will Niccol be the one to drive these changes?
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2906725948267392">article</a> was written by Li Xiaoxia for 36Kr.

Can Chipotle’s Brian Niccol revive Starbucks? Stock soars as he steps in

Starbucks

Turkey expects that more Chinese electric vehicle makers will invest in the country, following BYD's decision to put USD 1 billion into a factory for EVs and plug-in hybrids, the head of the presidential investment office, Burak Daglioglu, told Nikkei Asia in a recent interview.
"Talks with several Chinese EV companies are going positively," said Daglioglu when asked about investments by Chinese EV manufacturers, including Chery Automobile and SAIC Motor. "I will not be surprised if we hear positive results in the coming quarters."
Previously Chery's local unit, Chery Turkey, and a local MG distributor that is owned by SAIC have announced they are in investment talks with Turkish authorities.
In July, the Turkish government announced part of a package of USD 30 billion in incentives, including grants and tax cuts, for sectors like EVs, batteries, chips, and renewable energy equipment.
Daglioglu expects half of the investments in such high-tech sectors to come directly from foreign investors and their joint ventures with local partners.
He said Ankara is also in talks with other foreign companies for investments in sectors like chemicals, machinery, energy equipment, and food and beverages." <a title="" href="https://asia.nikkei.com/Business/Automobiles/China-s-BYD-to-invest-1bn-in-Turkey-for-EV-plant" target="_blank" rel="noopener">A billion-dollar investment by BYD</a> will give comfort to other investments that everything is now back to normal in terms of macroeconomic indicators."
Turkey is grappling with the pain of high inflation, which peaked above 75% in May. It dropped to around 62% in July, giving hope that it could be subsiding. A tightening in monetary policy that has been underway since last year, with the central bank raising its main rate to 50% from 8.5%, seems to have taken effect.
President Recep Tayyip Erdogan pressured the bank to cut interest rates despite inflation from 2021 through 2023, leading to a vicious cycle of high inflation and a weak currency. The government has made a U-turn toward orthodox economic and monetary policies following presidential and parliamentary elections in May last year.
Daglioglu said "price stability is a priority" of the government's economic program adopted in June 2023, which is "cooling down the economy and decreasing inflation," bringing large portfolio investments and foreign direct investment (FDI) like BYD's. He added, "Many international foreign direct investors speak very positively and are saying we are on right track." Markets estimate Turkey's inflation will drop to around 43% at the end of this year.
He hailed Turkey's customs union with the European Union, the more than 20 free trade agreements that it has signed with such countries as South Korea, Malaysia, Singapore and Egypt, its strategic location providing access to Europe, Asia, and Africa, its large and young population and its low worker absenteeism rate as all instrumental in attracting FDI.
Ankara targets attracting 1.5% of global FDI inflows by 2028, up from the average of 0.9% in the last two decades. It also aims to boost its FDI share with the CEEMENA countries of Central and Eastern Europe, the Middle East, and North Africa to 12% from 9.8%, competing with regional rivals like Poland, Israel, the Czech Republic, and Egypt.
Turkey attracted USD 10.6 billion in FDI last year, of which USD 3.5 billion was real estate investments by foreigners, according to the central bank.
According to the presidential investment office, Turkey attracted USD 262 billion in FDI between 2003–2023. The share from Asia, excluding the Gulf Cooperation Council, was 9% between 2003–2012 and then rose to 21% between 2013–2023. In the last decade, 63% of FDI came from Europe and 10% from the US.
Turkey started negotiations on an economic partnership agreement with Japan in 2014 but the talks lost momentum, with the last round in 2019. The two countries marked a century of diplomatic relations on August 6, and there is renewed hope that the talks will resume this year.
According to Daglioglu, total investments by Japanese companies are close to USD 4 billion and more than 250 companies, including Toyota Motor, Daikin Industries and Mitsubishi Electric, are active in Turkey. Investments from China are a "little less than USD 3 billion," he said.
Daglioglu pointed out that annual acquisition deals by Japanese companies in Turkey reached around 10 before the Covid-19 pandemic and said that if an economic partnership agreement is signed, that number could be "easily doubled" and the deal could facilitate the entry of small and medium Japanese enterprises. He hopes to lure high-tech semiconductor, energy, robotics, and automation-related investments from Japan.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Editor-s-Picks/Interview/Turkey-expects-more-investments-from-Chinese-EV-makers" 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>.

Turkey expects more investments from Chinese EV makers

Electric Vehicles

Mobility

In a recent internal announcement, Douyin Waimai, previously part of Douyin E-commerce’s quick commerce division, has been reassigned to the local lifestyle services division. This marks the second restructuring of Douyin’s food delivery service within just half a year.
The initial shakeup came in April, when Douyin Waimai was shifted from the local lifestyle services division to quick commerce. This move led to a cascade of changes, most notably on the consumer-facing side. By mid-June, Douyin’s group buying delivery service had stopped onboarding new merchants, and by late June, Douyin Waimai’s to-home platform officially launched. Shortly thereafter, reports surfaced that a food delivery option had been integrated into the hourly delivery section of Douyin Mall, expanding its reach to most major cities.
However, the integration was short-lived. Four months later, the team found itself reassigned back to local lifestyle services, barely six weeks after the new platform’s official rollout. According to 36Kr, the food delivery option has since disappeared from the hourly delivery section in Douyin Mall.
A provider for Douyin’s group buying service noted that policies surrounding Douyin Waimai have been highly erratic this year, leading to an unclear business direction. The repeated policy shifts have resulted in financial losses for many service providers involved.
Douyin’s foray into food delivery began amidst fierce competition with Meituan in the lifestyle services arena. The journey started in 2022 when Douyin partnered with Ele.me to pilot food delivery services in Nanjing. Early in 2023, Douyin Waimai was launched, with third-party logistics support from SF Intra-city, FlashEx, and Dada Nexus. Initial pilots were conducted in major cities like Beijing and Shanghai. By July, Douyin Waimai began recruiting regional agents, rapidly expanding its reach nationwide through service providers.
Sources close to Douyin Waimai revealed that Meituan initially regarded Douyin’s entry into food delivery as a significant threat, prompting it to deploy billions in subsidies to counter the challenge. However, Douyin Waimai struggled to gain a foothold, with unpredictable order volumes and inconsistent fulfillment capabilities undermining its success.
By the end of 2023, Meituan no longer considered Douyin Waimai a serious competitor. Douyin, in turn, scaled back its ambitions, abandoning its goal of reaching RMB 1 trillion (USD 140 billion) in GMV and seeking other ways to streamline operations.
At first, the integration of food delivery with Douyin’s quick commerce service appeared promising, suggesting a strategic shift towards a leaner, more agile approach. This move was seen as a sign that Douyin was dialing down its food delivery ambitions, pivoting from a resource-intensive model to a more flexible one that could better leverage its vast user base. If Douyin had stuck with traditional delivery methods, it would have faced steep fulfillment and operational costs, particularly in regions where competitors like Meituan dominate. However, merging food delivery with quick commerce could have allowed Douyin to capitalize on its extensive user network more effectively.
Yet, the abrupt restructuring has once again thrown the future of Douyin Waimai into question.
Conceptually, food delivery—which focuses on to-home services—aligns more naturally with the local lifestyle group buying logic. Earlier this year, Meituan merged its to-store and to-home segments to maximize synergies. With Douyin’s in-store group buying entering a critical phase of competition against Meituan, the return of the food delivery team could potentially inject new energy into Douyin’s local lifestyle services division as it gears up for its next set of challenges.
As of this writing, ByteDance has not responded to requests for comment regarding the specifics of this report.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2905626469538691">article</a> was written by Zhang Rao for 36Kr.

Douyin Waimai’s future in doubt after another strategic shift by ByteDance

Douyin

On-demand Services

E-commerce

Food Delivery

Consumer Economy

<h3>PropertyGuru takes a new path with EQT acquisition in USD 1.1 billion deal</h3>
Southeast Asia’s real estate giant PropertyGuru is being acquired by EQT Private Capital Asia in an <a href="https://kr-asia.com/propertyguru-to-delist-from-nyse-following-usd-1-1-billion-acquisition-by-eqt">all-cash deal valued at around USD 1.1 billion</a>. This acquisition marks a pivotal moment for PropertyGuru, which, despite its stronghold in the region, has decided to shift gears from going public to going private.
Founded in 2007, PropertyGuru has long been a fixture in the real estate scene across Singapore, Malaysia, Thailand, Vietnam, and Indonesia, connecting millions with their dream homes. Its journey toward an IPO was a winding one, including a canceled Australia listing in 2019 and a subsequent SPAC merger that saw it debut on the NYSE in 2022 at a USD 1.8 billion valuation. Yet, the uncertainties of the public markets, coupled with the bruising impact of the Covid-19 pandemic, led PropertyGuru to reconsider its future.
With EQT stepping in, PropertyGuru’s shareholders are set to receive USD 6.70 per share, a solid 52% premium over its recent trading price. The deal, supported by major shareholders like TPG and KKR, is expected to close by early 2025, after which PropertyGuru will delist and continue its mission, free from the short-term pressures of the public markets.
<figure id="attachment_132074" aria-describedby="caption-attachment-132074" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-132074" src="https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-1024x576.jpeg" alt="Photo of Hari Krishnan, CEO and managing director of PropertyGuru." width="1024" height="576" srcset="https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-1024x576.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-300x169.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-768x432.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-480x270.jpeg 480w, https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new.jpeg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-132074" class="wp-caption-text">Photo of Hari Krishnan, CEO and managing director of PropertyGuru. Photo and header photo from KrASIA’s archive.</figcaption></figure>
<h3>South Korea’s Rebellions and Sapeon unite to challenge the AI chip giants</h3>
In the latest chapter of South Korea’s AI ambitions, local chip makers <a href="https://rebellions.ai/">Rebellions</a> and <a href="https://www.sapeon.com/">Sapeon</a> are joining forces to challenge industry titans like Nvidia, according to a report by Reuters. After months of negotiations, the two privately held companies have finalized a deal that aims to combine their strengths and scale in a market dominated by global giants.
Rebellions, fresh off a USD 15 million injection from Saudi Aramco’s venture arm Wa’ed Ventures, is now positioned for its next growth phase, with over USD 225 million in combined funding. On the other hand, Sapeon brings heavyweight backing from SK Telecom and SK Hynix, signaling a formidable alliance in the rapidly evolving AI chip industry.
<h3>Finture bags USD 30 million in Series B round</h3>
Finture, an Indonesian digital bank and credit payment upstart, has reportedly bagged nearly USD 30 million in a Series B funding round, according to DealStreetAsia.
The company is looking to broaden its horizons into new markets, with Hong Kong squarely in its sights.
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<h3>Qianxun SI secures strategic funding, valuation exceeds RMB 16 billion</h3>
<a href="https://en.qxwz.com/">Qianxun Spatial Intelligence</a>, a prominent spatiotemporal infrastructure player, has completed a new round of strategic financing, bringing its valuation to over RMB 16 billion (USD 2.2 billion). The round was led by the Beijing Information Industry Development Investment Fund, with significant participation from major Beijing-based institutions. This coordinated investment effort highlights the strategic importance of Qianxun SI's technology at both municipal and district levels in the capital city.
Qianxun SI has been at the forefront of integrating cloud computing and big data into the satellite navigation industry since its inception in 2015. The company operates the BeiDou ground-based augmentation system (GBAS), providing high-precision positioning services to billions of users. With advancements in AI and the introduction of its “atmosphere inference large model,” Qianxun SI continues to innovate, particularly in fields like autonomous driving and precision agriculture.
The company plans to utilize the new capital to further develop its technological infrastructure and expand its services across various industries, including autonomous driving, where it is said to already support over 1.6 million smart vehicles. —<a href="https://36kr.com/p/2911838095809415">36Kr</a>
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<h3>Nebu, SMI Vantage, EQT, and more led last Friday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.thenebu.com/">Nebu</a>, an artificial intelligence startup, has received a USD 110,000 investment from venture capital firm Antler as part of the investors’ Malaysia residency program.</li>
<li aria-level="1">SMI Vantage, a Singapore-based investment firm, has acquired a controlling stake in <a href="https://www.whiskycaskclub.com/">Whisky Cask Club (WCC)</a>, a brokerage specializing in the investment and trading of rare and ultra-premium whisky casks.</li>
<li aria-level="1">EQT, a global investment firm, has announced its acquisition of KJ Environment and its affiliated companies from Genesis Private Equity to establish a comprehensive waste treatment platform in South Korea.</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: PropertyGuru pivots with USD 1.1 billion buyout, South Korea’s AI chip makers Rebellions and Sapeon merge, Qianxun SI hits multibillion valuation, and more

Thailand

South Korea

In a move that underscores a significant shift in strategy, PropertyGuru, one of Southeast Asia’s leading prop tech companies, has announced its acquisition by EQT Private Capital Asia in an all-cash transaction valued at approximately USD 1.1 billion. This development comes after years of preparation for an IPO and signals a new chapter in the company’s journey.
Founded in 2007, PropertyGuru emerged over time as a dominant force in Southeast Asia’s real estate market, bridging the gap between property seekers, agents, and developers across Singapore, Malaysia, Thailand, Vietnam, and Indonesia. The company has consistently pushed the envelope with solutions like StoryTeller, a virtual reality platform that reimagines property tours, and PropertyGuru Finance, an online mortgage marketplace. Today, PropertyGuru is said to host over 2.8 million real estate listings and serve more than 34 million property seekers each month.
The road to a public listing has been a winding one for PropertyGuru. After <a href="https://kr-asia.com/propertyguru-shelves-ipo-citing-market-uncertainty">shelving plans</a> for an <a href="https://kr-asia.com/singapores-propertyguru-targets-usd-257-million-ipo-in-australia">IPO in Australia</a> in 2019 due to market uncertainties, the company revisited its ambitions in 2021, through a merger with Bridgetown 2 Holdings, a <a href="https://kr-asia.com/are-spac-mergers-still-a-healthy-option-for-tech-companies-aiming-to-go-public">special purpose acquisition company (SPAC)</a>. This move culminated in PropertyGuru’s debut on the New York Stock Exchange (NYSE) on March 18, 2022, at a valuation of USD 1.8 billion. Yet, despite these efforts, the company’s path took a turn.
The decision to pivot from pursuing an IPO to accepting an acquisition offer from EQT reflects the challenges PropertyGuru has faced, particularly amid the turbulence brought on by the Covid-19 pandemic. The real estate sector was hit hard, prompting the company to innovate rapidly and adjust to evolving market conditions. However, the uncertainties of the public market, combined with the pressures of maintaining investor expectations, led PropertyGuru to reconsider its strategic direction.
In February 2024, this strategic reevaluation became evident when PropertyGuru laid off 79 employees—a decision described by CEO and managing director Hari Krishnan as the result of a <a href="https://www.channelnewsasia.com/business/propertyguru-layoffs-jobs-cut-amid-organisational-changes-hari-v-krishnan-4154961">"comprehensive review"</a> of operations. This move was indicative of the broader recalibration underway at the company.
<figure id="attachment_132074" aria-describedby="caption-attachment-132074" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-132074" src="https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-1024x576.jpeg" alt="Photo of Hari Krishnan, CEO and managing director of PropertyGuru." width="1024" height="576" srcset="https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-1024x576.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-300x169.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-768x432.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new-480x270.jpeg 480w, https://console.kr-asia.com/wp-content/uploads/2021/09/Hari-leader-desktop-01-new.jpeg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-132074" class="wp-caption-text">Photo of Hari Krishnan, CEO and managing director of PropertyGuru. Photo from KrASIA’s archive.</figcaption></figure>
Under the terms of the merger with EQT, PropertyGuru’s shareholders will receive USD 6.70 per share in cash, representing a 52% premium over the company’s closing share price on May 21, 2024. This offer also reflects substantial premiums of 75% and 86% over the 30-day and 90-day volume-weighted average share prices, respectively, leading up to that date.
The merger has garnered support from major shareholders, including <a href="https://kr-asia.com/propertyguru-raises-usd-220-million-from-tpg-and-kkr">TPG and KKR</a>, who collectively hold 56% of PropertyGuru’s ordinary shares. The transaction is expected to close between Q4 2024 and Q1 2025, following which PropertyGuru will delist from the NYSE and operate as a private company.
The partnership with EQT is expected to offer PropertyGuru access to a wealth of resources and deep expertise in the technology and online marketplace sectors. This alignment positions PropertyGuru to continue its mission of leading Southeast Asia’s property data sector, free from the short-term pressures of the public markets.
With its headquarters remaining in Singapore, PropertyGuru will continue to serve its growing user base across Southeast Asia, leveraging EQT’s backing to enhance its platform and deepen engagement with both consumers and stakeholders.

PropertyGuru to delist from NYSE following USD 1.1 billion acquisition by EQT

SEA Tech

Prop Tech

Myanmar

Amazon is making a push to acquire more sellers in China, aiming to expand its offerings of affordable products in the US and elsewhere to take on Temu and other Chinese competitors.
At the end of July, Amazon held an event for online sellers in Shenzhen, Guangdong Province, telling them it would support their efforts to enter the global market.
As examples of past successes in China, Amazon cited Anker, which makes chargers for smartphones and other devices, and robot vacuum cleaner manufacturer Roborock, both of which expanded around the world.
Amazon has been scaling back its consumer-oriented businesses in China. The company ended its domestic e-commerce service in China in 2019, and recently shut down its Kindle e-book service. It continues to provide cross-border e-commerce for overseas products to Chinese consumers, but its presence is weak.
Recently, however, Amazon has been reevaluating China as a source of goods for selling outside the country and is cultivating sellers there.
This year, it opened new offices in the inland cities of Wuhan, Hubei Province, and Zhengzhou, Henan Province. They support sellers in nearby cities and surrounding areas, seeking to do new business with small- and medium-sized sellers such as factories in rural areas.
For companies lacking the know-how to export overseas or develop their brand, the offices can help them by using Amazon's logistics network and other resources to sell their products worldwide.
Amazon's official account on the social networking app WeChat is also working to recruit sellers, holding live seminars almost every day for people considering listing products. "In 2024, we will hold dozens of events for thousands of sellers," Amazon China's vice president told Chinese media in May.
The company will also begin building a framework to deliver Chinese products to the US at lower prices. It has been signing new contracts with Chinese retailers from this summer that allow inexpensive daily necessities and clothing to be shipped directly to US consumers, according to The Information and other US media. Previously, deliveries were made via Amazon's logistics facilities, but shipping directly is expected to reduce costs.
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Amazon is rushing to develop sellers in China over concerns that its presence in the US and elsewhere could decline in the face of rising low-cost online shopping services from China like Temu and Shein.
According to a survey of 1,000 US consumers conducted by Jungle Scout, an analytics service for sellers, 52% of people said they first searched for products on Amazon when shopping online in April to June, down nine percentage points from two years ago.
Sales from Amazon's direct online shopping business grew 5% year-on-year in the April-June period, slowing from a 7% rise in January to March.
In 2023, US consumers spent 11 minutes a day using the Amazon app, according to US research firm Global Wireless Solutions. Temu consumers, on the other hand, spent 22 minutes a day using its app, which draws interest by frequently issuing coupons.
At an earnings briefing on August 8, Amazon CEO Andy Jassy acknowledged that consumers continue to seek low-priced goods.
China is becoming increasingly important as a supplier of of low-cost goods—a trend that benefits Chinese sellers, who can lift sales through exports amid sluggish domestic demand.
Cross-border e-commerce exports in 2023 amounted to USD 261.7 billion, up 180% from 2018, according to China's General Administration of Customs. The US was the most common destination, accounting for 37%.
Chinese internet companies like Temu, Alibaba Group's AliExpress and ByteDance subsidiary TikTok are expanding their cross-border e-commerce businesses by utilizing the networks of business partners they have cultivated domestically, boosting export values.
Amazon is not the only foreign company aiming to expand its listings from China. Shopee, from Singapore-based Sea, is also streaming seminars on WeChat in an effort to attract Chinese sellers interested in expanding into Southeast Asian markets, where it has an advantage.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Retail/Amazon-develops-China-seller-network-to-take-on-Temu-Shein" 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>.

Amazon develops China seller network to take on Temu, Shein

Amazon

Shein

Temu

… Siana Capital and Chiratae Ventures, with participation from Alteria Capital, 3to1 Capital, and Manish Choksi’s family office. —Entrackr</li>
<li aria-level="1">Blitzscale Tech, the parent company of WMall and ShopDeck, has raised INR 652 million (USD 7.7 million) in a Series B1 funding round led by Bessemer Venture Partners, with participation from Chiratae Ventures and Elevation Capital. The company will use the funds for growth, expansion, marketing, and general corporate purposes. —Entrackr</li>
<li aria-level="1">Aukera, a lab-grown jewelry brand, has raised INR 267 million (USD 3.2 million) in its Series A funding round led by Fireside Ventures. The company will use the funds for expansion and general corporate purposes. —Entrackr</li>
<li aria-level="1">Visit Health, a telehealth and wellness platform, has raised INR 2.5 billion (USD 29.8 million) through a combination of primary and secondary stake sales. The company plans to use the funds for business expansion and a strategic partnership with health platform TatvaCare. —Entrackr</li>
<li aria-level="1">Country Delight, a milk and grocery brand, has secured INR 700 million (USD 8.3 million) in debt funding from Alteria Capital. The company plans to use the funds to scale its operations in major Indian cities, offering subscription-based deliveries. —Entrackr</li>
</ul>
whereRelatedArticle
<h3>DeCarice, Komerce, Amilo, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.decarice.com.au/">DeCarice</a>, an Australian startup rewriting the rules for heavy-duty engines, raised an undisclosed amount of capital from Investible’s Climate Tech Fund.</li>
<li aria-level="1"><a href="https://komerce.id/">Komerce</a>, an Indonesian e-commerce enabler, merged with RajaOngkir, a real-time shipping cost calculator, in a share swap deal.</li>
<li aria-level="1"><a href="https://amilo.co/">Amilo</a>, a Singapore-based logistics player with a focus on Southeast Asia, acquired Sivadon Logistics, a logistics operator in Thailand.</li>
</ul>
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India

Kunlun Tech, a name more associated with gaming and social media, has launched two artificial intelligence-powered platforms—Melodio and Mureka—aimed at shaking up the music industry. These platforms leverage Kunlun’s proprietary AI model, SkyMusic 2.0, and claim to offer something different from what’s currently available in the market. But how much of this is real innovation, and how much is just hype?
<h3>Melodio: An attempt at personalized music streaming</h3>
Melodio is billed as the world’s first AI-driven music streaming platform that generates music in real-time based on user input. The idea is simple: you tell Melodio what you want—whether it’s energizing tunes for a workout or calming music for studying—and it generates a customized stream just for you.
The concept isn't entirely new. Spotify, for example, has been refining its recommendation algorithms for years, using vast amounts of user data to <a href="https://www.theverge.com/2024/4/8/24124070/spotify-ai-playlist-music-beta-launch-premium-uk-australia">build and suggest playlists</a> that align with your tastes and habits. However, Melodio takes this a step further by generating music from scratch, rather than curating from an existing library.
While this sounds impressive, the practical difference for the average user might be marginal. Real-time generation could offer more precise customization, but it’s unclear whether this will significantly outperform the curated playlists that users have grown accustomed to​.
<h3>Mureka: Democratizing music creation?</h3>
Mureka aims to democratize music creation by allowing anyone—whether they are professional musicians or complete novices—to create and sell AI-generated music. The platform provides tools for generating songs, customizing them, and even selling them in an integrated marketplace.
This is an intriguing proposition, especially for independent artists who might lack access to professional production tools. Yet, Mureka is not the first to offer AI-driven music creation. Platforms like <a href="https://soundful.com/">Soundful</a> and <a href="https://www.aiva.ai/">Aiva</a> already provide similar services, generating music for various use cases such as video production and advertising.
Mureka’s key differentiator might be its integrated marketplace, but the broader implications are worth considering. As AI-generated music becomes more prevalent, it raises questions about the value and originality of music, potentially flooding the market with content that, while technically proficient, may lack the emotional depth of human-created music​.
SkyMusic 2.0, the AI model powering both Melodio and Mureka, is positioned as a technological breakthrough capable of producing high-quality, longform music. Kunlun claims it is capable of generating 6-minute stereo tracks with a sampling rate of 44100 Hz, handling over 500 words of lyrics seamlessly.
While these specifications are impressive, they are also within the expected range for high-end audio production tools today. The real test of SkyMusic 2.0’s value lies in how effectively it can create music that resonates with listeners and creators alike. It’s one thing to generate technically sound music—it’s another to create something that genuinely connects with an audience. Whether SkyMusic 2.0 achieves this remains to be seen.
Kunlun’s entry into the music industry could have ripple effects, particularly if Melodio and Mureka gain traction. Domestically, established players like Tencent Music Entertainment and NetEase Cloud Music are already leveraging AI to enhance user experiences, positioning them as formidable competitors in the Chinese market. Tencent’s QQ Music and WeSing platforms, along with NetEase’s AI Music Lab, are deeply integrated into the local ecosystem and are well-prepared to respond to Kunlun’s innovations.
Internationally, platforms like Spotify and SoundCloud continue to evolve. SoundCloud, in particular, is <a href="https://press.soundcloud.com/234082-soundcloud-partners-with-fadr-soundful-and-voice-swap-to-introduce-artist-first-ai-integrations#:~:text=Every%20artist%20on%20its%20roster,their%20AI%20voices%20are%20used.">partnering</a> with AI-driven music technology companies like <a href="https://fadr.com/">Fadr</a>, Soundful, and <a href="https://www.voice-swap.ai/">Voice-Swap</a> to allow artists to create and upload songs using assistive AI tools directly to the platform.
Melodio and Mureka’s success will depend on how well they can differentiate themselves and meet unmet needs in the market. For Melodio, the challenge will be convincing users that AI-generated streams offer a superior experience to curated playlists. For Mureka, the key will be in providing tools that genuinely empower creators without reducing music creation to a commoditized process​.
Kunlun’s Melodio and Mureka platforms are intriguing, but it’s too early to declare them as game changers. They offer interesting takes on music streaming and creation, but whether they represent a significant leap forward is still up for debate. The real value of these platforms will become clearer as users start to engage with them and as competitors respond. For now, they are a promising but unproven foray into an industry that is already well-acquainted with AI-driven innovation.

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