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<h3>Djoin secures seed funding from 500 Global</h3>
Djoin, a financial platform for microfinance institutions (MFIs), has raised an undisclosed amount of seed funding from 500 Global. This investment will enable Djoin to accelerate its go-to-market strategy, scale its team, expand its platform capabilities, and reach new regions across Indonesia.
According to Djoin, over 50% of Indonesians are underbanked or unbanked, heavily relying on MFIs, especially credit unions, for financial services. Unlike conventional banks, credit unions reach rural and remote areas, serving at least half of the nation’s population.
Djoin’s platform aims to help MFIs meet the needs of the underbanked and unbanked, offering banking services, a credit decisioning engine, and a loan-channeling product.
<h3>Juleo raises USD 2.5 million in angel round</h3>
<a href="https://www.juleo.club/">Juleo</a>, an operator of a “singles club,” has raised USD 2.5 million in an angel funding round from over 180 investors, including Ramakant Sharma (Livspace), Kunal Shah (Cred), Ruchi Deepak (Acko), Leo Puri (formerly from JP Morgan), and Harsh Jain and Lalit Keshre (Groww).
Founded in 2023, Juleo said it offers a “responsible and healthy” approach to dating and matrimony by fostering genuine, real-life meetings. Users can join Julio via its mobile app, which utilizes India Stack to ensure every member is verified using official credentials.
<figure id="attachment_149394" aria-describedby="caption-attachment-149394" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-149394" src="https://console.kr-asia.com/wp-content/uploads/2024/08/Juleo-Team-1024x683.jpg" alt="Photo of Juleo’s team." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2024/08/Juleo-Team-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/08/Juleo-Team-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/08/Juleo-Team-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/08/Juleo-Team-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/08/Juleo-Team.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-149394" class="wp-caption-text">Photo of Juleo’s team. Photo courtesy of Juleo.</figcaption></figure>
<h3>Vertex Ventures backs Norma from South Korea</h3>
<a href="https://www.norma.co.kr/eng/">Norma</a>, a South Korean quantum security firm, has reportedly secured investment from Vertex Ventures, according to DealStreetAsia.
Shen Dongjie, director at Norma, told the media outlet that the company is now looking to raise a bridge funding round.
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<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">Airy Semi, a semiconductor overlay equipment provider, has secured an undisclosed amount in a pre-Series A round of financing. Z&amp;Y Capital and Jolmo Capital were the investors. —<a href="https://36kr.com/newsflashes/2894318393777029">36Kr</a></li>
<li aria-level="1"><a href="https://www.clearorthod.com/">Dr Clear Aligner</a>, a Shanghai-registered orthodontic brand, has raised at least RMB 100 million (USD 14 million) in a Series A funding round, invested exclusively by Qiming Venture Partners. The funds will be used for the product development and market expansion. —<a href="https://36kr.com/p/2894058936408712">36Kr</a></li>
<li aria-level="1">SCII, an electronics company established in 1999, has secured over RMB 300 million (USD 42 million) in an angel funding round led by Hengxu Capital, with participation from Geely Capital, Zhongqing Capital, GAC Capital, and Guangzhou Industrial Investment Holdings Group. The funds will be used for the R&amp;D and production of battery disconnect units (BDUs), high-voltage DC contactors, and filters. —<a href="https://36kr.com/newsflashes/2894024725994377">36Kr</a></li>
<li aria-level="1"><a href="https://www.dash-chip.com/">Dashchip</a>, a developer of audio digital signal processing (DSP) chips, has completed an angel round of financing. The round was co-led by Sharewin Investment and Oriza Rivertown. —<a href="https://36kr.com/newsflashes/2893013392563080">36Kr</a></li>
<li aria-level="1"><a href="http://en.novamab.com/">Novamab</a>, a biotechnology company, has raised close to RMB 200 million (USD 28 million) in a Series B2 funding round. The round was led by Qiming Venture Partners, with participation from new and existing investors. —<a href="https://36kr.com/newsflashes/2893013139118728">36Kr</a></li>
</ul>
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<h3>Secai Marche, Xpeng AeroHT, CATL, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://secai-marche.co.jp/">Secai Marche</a>, a Japan-headquartered business connecting farmers directly with restaurants and retailers in Southeast Asia, raised JPY 300 million (USD 2.1 million) to bring its Series A funding round to a total of USD 3.5 million. The investors include Beyond Next Ventures, Spiral Ventures Asia, Mitsubishi UFJ Capital, Future Food Fund, Tsuneishi Shoji, Fukuoka Sonoriku, and Foodison co-CEO Toru Yamamoto.</li>
<li aria-level="1"><a href="https://intl.aeroht.com/">Xpeng AeroHT</a>, an affiliate company of Xpeng Motors dedicated to the development of flying cars, raised USD 150 million in its Series B1 funding round and has initiated a Series B2 round.</li>
<li aria-level="1">Contemporary Amperex Technology (CATL), the world's largest battery maker, has invested hundreds of millions of USD in AutoFlight, an air taxi startup.</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: Djoin secures seed funding from 500 Global, Vertex Ventures invests in South Korea’s Norma, five China deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Indonesia

South Korea

Southeast Asia

China

India

China's e-commerce sector is undergoing a major strategic shift as platforms switch gears from prioritizing ultra low prices to more sustainable sales growth.
Douyin, the short video platform owned by ByteDance, is focusing on growth in gross merchandise volume (GMV), a measure of total online sales, for the rest of the year after growth slowed to between 30–40% in the first half, compared to over 50% last year, people close to the company told Nikkei Asia.
Chinese online media LatePost first reported that Douyin was making the shift due to the slower than expected GMV growth, adding Douyin had concluded that its popular live commerce sales approach was unable to deliver the lowest prices for shoppers.
"Douyin is fundamentally an entertainment platform. I think Douyin executives have recognized that there is a potential conflict between aggressively promoting low prices and maintaining a positive user experience," said Jacob Cooke, co-founder and CEO of WPIC Marketing and Technologies, a Beijing-based e-commerce consultancy.
The other problem with the industry wide low-price push is that it squeezes merchants, who might then allocate their inventory or advertising spending to other platforms where they can find the best margins, Cooke added.
The shift comes as a temporary anti-unfair competition regulation for the internet industry is set to take force on September 1. The new rules prevent platforms from "imposing unreasonable restrictions on the prices of goods."
Low prices have long been the focus of <a title="" href="https://asia.nikkei.com/Business/Business-trends/Chinese-online-shopping-festival-kicks-off-with-steep-Apple-discounts" target="_blank" rel="noopener">China's annual online shopping festivals</a>, and most leading players made it their primary selling point this year. However, total GMV for the 618 shopping event this year dropped for the first time in eight years, falling 7% from last year to RMB 742.8 billion (USD 103.8 billion), according to Chinese data company Syntun.
China's GDP <a title="" href="https://asia.nikkei.com/Economy/China-GDP-growth-slows-to-4.7-in-Q2-missing-forecasts" target="_blank" rel="noopener">grew 4.7% year-on-year</a> in the second quarter, missing expectations due to weak consumption and a prolonged property market slump. Last month, the total retail sales of consumer goods grew only 2%, the slowest since the beginning of last year.
"I think there's been this misconception that consumers are primarily motivated by low prices in the current environment, when in fact different demographics of consumers have different priorities, and that those priorities shift depending on the product category," Cooke said.
Last year, except for PDD Holdings, share prices slumped in other e-commerce platforms including Alibaba Group, JD.com and Kuaishou Technology. Amid pressure from Pinduoduo and Douyin, Alibaba's flagship retail platform Taobao and JD have ramped up their <a title="" href="https://asia.nikkei.com/Business/Retail/Alibaba-s-Taobao-takes-on-Temu-Shein-with-free-overseas-shipping" target="_blank" rel="noopener">efforts to retain users</a>, with Alibaba emphasizing its "user first" strategy, which encompasses product quality, pricing and service, while JD mainly focused on low price.
Meanwhile, in the first half of the year, Taobao has played down its "five-star pricing system," a pricing evaluation framework introduced by former Taobao chief Trudy Dai last year that rates products from one to five stars based on their pricing relative to similar items both on Taobao and other platforms. Under this system, products priced lower tend to attract higher traffic. Now, the company has launched a "Store Experience Score" rating system that gives traffic to merchants with good ratings for service.
"Striving for the absolute lowest prices is not a viable strategy when compared to Pinduoduo, which has spent years building a reputation among users for offering the best deals," a senior manager from Taobao said, adding that low prices are also not a sustainable approach because users will leave once the deals are gone. "Ultra low prices will also place pressure on sellers and push them to other platforms," he said.
The senior manager said that Alibaba had been aware of the consequences of sellers moving to alternative platforms a few years ago. Alibaba's long-running anti-counterfeiting campaign peaked in 2019, and after 2020, some senior executives began to believe that this campaign had prompted sellers to migrate to rival platforms and pose a threat to Alibaba's business. In response, one of the senior leaders suggested halting the campaign, the senior manager said.
Gu Pei, who runs two electronic tool shops on Taobao and Pinduoduo, respectively, told Nikkei that Pinduoduo would consistently ask her to lower her prices, otherwise she would receive little store traffic. Gu set her profit margin to around 20–30% and said if she followed Pinduoduo's request, it would be below 10%. Gu said she cannot afford that as she is not a manufacturer, who might be able to cut costs through different means.
However, even after paying for increased traffic on Pinduoduo, the number of orders did not increase, Gu said. "When the economy was not so bad, orders would increase after I paid for traffic, but now buyers are just looking and not buying, and I have to pay for every click," she said, adding that she has stopped paying for traffic as it is not cost effective.
And from late June, Gu said, she noticed something unusual: She was getting more buyers on Taobao than on Pinduoduo for the same products, even though the prices she sets on Taobao are higher—and she didn't pay for traffic on Taobao. "People always come to Pinduoduo for its lower prices, so they would assume the quality there is lower, too, even though I use the same photos on both platforms," Gu said.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Retail/For-China-s-e-commerce-platforms-low-prices-are-no-longer-enough" 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>.

For China's e-commerce platforms, low prices are no longer enough

E-commerce

Retail

Consumer Economy

… href="https://36kr.com/p/2891592640289673">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>APX Solutions, Mynt, Canva, and more led last Friday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://apx.group/">APX Solutions</a>, a logistics technology company based in Thailand, secured an undisclosed amount in fresh investment from Japan’s SBI Ven Capital. The investment came through SBI’s joint fund with NTU Singapore’s NTUitive and South Korea’s Kyobo Securities.</li>
<li aria-level="1">Globe Fintech Innovations (GFI), a leading Philippine mobile payments operator better known as Mynt, is set to receive USD 393 million from the banking arm of Mitsubishi UFJ Financial Group (MUFG).</li>
<li aria-level="1">Canva, Australia’s largest private technology company, made its latest acquisition, purchasing <a href="https://leonardo.ai/">Leonardo AI</a> for over USD 320 million.</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>.

Deals in brief: Secai Marche raises USD 2.1 million, EDBI and Seeds Capital form SG Growth Capital, seven China deals, and more

Singapore

Japan

Oceania

Thailand's national railway opened a new passenger service to Laos this month, the latest addition to an expanding Southeast Asian rail network aimed at increasing cross-border traffic of people and goods with China.
The State Railway of Thailand (SRT) opened the new Bangkok-Vientiane line on July 19. The roughly 650-kilometer trip connecting the two capitals takes 12 hours, including cross-border customs checks.
The Bangkok-Vientiane railway offers one trip a day, with a choice of three classes of seating. A one-way ticket costs between THB 281–874 (USD 8–24).
All the roughly 270 seats on the train departing from Bangkok's Krung Thep Aphiwat Central Station on July 19 were fully booked. Three friends who planned a two-day sightseeing trip to Vientiane were among the passengers.
"I hope to enjoy my first-ever trip to Laos," said one of the trio, a 64-year old homemaker from Bangkok.
SRT anticipates a rise in tourism demand from China as well. Khamsavath Station, the last stop of the railway in Laos, is about 10 kilometers from Vientiane Station, which in recent years opened a <a href="https://asia.nikkei.com/Politics/International-relations/China-Laos-railway-begins-with-limited-service2">high-speed connection</a> extending to the southern Chinese city of Kunming. Officials believe the new line will make it easier for Chinese tourists to travel to the Thai capital through Laos.
The Thai government seeks to draw Chinese tourists by promoting domestic products. During the first two days of July, Bangkok hosted an event attended by about 200 people—mainly from the Chinese tourism industry.
The event featured the Thai cosmetic brand Mistine, among other products. Thai tourism authorities have also collaborated with a Chinese supermarket chain to host a promotional event in Shanghai to market Thai-grown fruit, according to Chinese media.
Thailand is also developing a freight rail network linking to China. Last December, cargo service from Rayong, Thailand to the Chinese city of Chengdu opened for business, as did a line between Bangkok and China's Chongqing.
Each of the two freight lines makes use of the Laos-China railway, which is becoming a key artery for traffic between China and Southeast Asia.
The value of Thai goods reaching China after going through neighboring countries is expected to rise 17% this year to THB 250 billion (USD 6.88 billion), according to a March estimate by the private Kasikorn Research Center.
"Logistics via the China-Laos high-speed railway will play a greater role in cross-border and transit trade," reads a report from Kasikorn. The freight will mainly carry durian fruit and other agricultural products for the time being, though expectations are high for increased exports of manufactured products as well.
In Malaysia, the ASEAN Express freight train service went into operation late last month. The cross-national line starts from Selangor state near the Malaysian capital of Kuala Lumpur, and traverses through Thailand and Laos before ending in Chongqing.
The whole trip on the ASEAN Express takes about nine days, according to Malaysia's national rail operator Keretapi Tanah Melayu Berhad (KTMB), much shorter than the 2–3 weeks by sea.
The first train that departed Malaysia on June 27 carried farm products and other goods. Earlier that same month, the Chinese government agreed to allow fresh durian to be exported from Malaysia. Durian farmers anticipate exports to China will expand.
The ASEAN Express started off running twice a week, but it plans to transition to daily service. KTMB said in a press release that it is confident the railway "will facilitate the movement of goods, drive economic growth and strengthen trade relations" among countries in the Association of Southeast Asian Nations.
Ichiro Kakizaki, a professor at Yokohama City University in Japan and an expert in Southeast Asian studies, sees a "need to determine how much demand there is for the foreseeable future" regarding the ASEAN Express. But if the railway proves to be a worthy alternative to sea routes, it could "potentially prompt a reorganization of the supply chain," said Kakizaki.
The Laos-China railway, which opened in December 2021, was built as a key project under Beijing's Belt and Road Initiative (BRI). The plan is to build various extensions from the line to create a pan-Asian rail network.
But China-led efforts to develop a wide-reaching rail system has raised alarms.
"If China seizes control of rail operations, foreign companies will not be able to profit," said an executive at a Japanese logistics firm based in Vientiane.
Laos' external public debt is equivalent to 80% of its gross domestic product, and half is <a href="https://asia.nikkei.com/Economy/Laos-other-debt-laden-Asia-Pacific-nations-under-pressure-from-strong-dollar">believed to be owed to China</a>. If Laos fails to repay loans, it could fall into a "debt trap" in which China would take over its infrastructure, including the rail system.
As for the Thai and Malaysian rail lines connecting to Laos, the rail companies in the two countries are responsible for their operation. But the anticipated windfall from the linkages to the Laos-China railway also come with the risk of greater influence by Beijing.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Transportation/Thailand-s-new-rail-links-carry-hope-for-expanded-Chinese-trade" 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>.

Thailand's new rail links carry hope for expanded Chinese trade

Malaysia

Thailand

<h3>Thailand’s APX Solutions snags funding from SBI Ven Capital for Vietnam expansion</h3>
<a href="https://apx.group/">APX Solutions</a>, a logistics technology company based in Thailand, has secured an undisclosed amount in fresh investment from Japan’s SBI Ven Capital. The investment came through SBI’s joint fund with NTU Singapore’s NTUitive and South Korea’s Kyobo Securities.
Founded in 2019, APX provides door-to-door cargo transportation services, emphasizing sustainability through its artificial intelligence-based freight management system, Palli.
Following its expansion into Malaysia, Singapore, and Europe in 2024, APX is preparing to broaden its footprint further. With this funding, it plans to expand its digital less-than-truckload (LTL) network into Vietnam by 2025, with the eventual goal of connecting trade flows between Europe, China, and Southeast Asia.
<h3>MUFG invests USD 393 million in Mynt</h3>
Globe Fintech Innovations (GFI), a leading Philippine mobile payments operator better known as Mynt, is set to receive USD 393 million from the banking arm of Mitsubishi UFJ Financial Group (MUFG), according to a report by Nikkei Asia.
MUFG Bank will acquire nearly 10% of GFI through third-party allotment and purchases from existing shareholders, gaining a seat on GFI’s board to foster deeper cooperation in digital finance.
GFI, which operates the mobile wallet GCash through Mynt, specializes in QR code-based payments and is said to serve a user base of over 60 million. This investment aligns with MUFG’s strategy to expand its digital finance footprint in Asia, leveraging synergies with the Ayala Group, GFI's largest shareholder.
<h3>Canva acquires Leonardo AI for over USD 320 million</h3>
Australia’s largest private technology company, Canva, renowned for its platform’s graphic design features, has made its latest acquisition, purchasing <a href="https://leonardo.ai/">Leonardo AI</a> for over USD 320 million, according to Australian Financial Review.
Based in Sydney, Leonardo AI is an AI image generation company founded in 2022, during a time when AI-driven tools were less user-friendly than they are now. However, the subsequent surge in AI interest led to stiffer competition for the Sydney-based outfit, particularly from tech giants like Microsoft and Google.
Canva has been investing in AI for a number of years, starting with its launch of background removal tools in 2019, and subsequently acquiring visual AI company Kaleido in 2021 to bolster the feature. The company later doubled down on AI features in 2023, introducing “Magic Studio,” a full suite of AI-powered products.
According to Canva’s statement, it will integrate Leonardo AI’s technology and its Phoenix foundational model into Magic Studio, enhancing user capabilities in image and video generation. Canva will also continue investing to support Leonardo’s B2B adoption. Leonardo AI’s team of researchers, engineers, and designers are expected to continue developing its platform, now with Canva’s financial backing.
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<h3>Latest funding deals in India:</h3>
<ul>
<li aria-level="1"><a href="https://www.galaxeye.space/">GalaxEye Space</a>, a Bengaluru-based space tech startup,  has announced the first close of its ongoing funding round, securing USD 6.5 million. This round was co-led by Mela Ventures and Speciale Invest, with participation from IdeaForge, Rainmatter, Navam Capital, Faad Capital, and Anicut Capital. The funds will be utilized to launch GalaxEye's first satellite, the “Drishti Mission,” in 2025, and to further develop its multisensor payload technology. —Moneycontrol</li>
<li aria-level="1"><a href="https://www.scimplify.com/">Scimplify</a>, a company specializing in sourcing and manufacturing specialty chemicals, has raised INR 590 million (USD 7 million) in its Series A funding round. The round was led by Omnivore, with participation from 3One4 Capital, Beenext Asia,, and Bertelsmann. The funds will be used to enhance its B2B fulfillment platform and expand its operations. —Entrackr</li>
<li aria-level="1"><a href="https://kineticgreen.com/">Kinetic Green</a>, the electric vehicle manufacturing arm of India’s Kinetic Group, has raised INR 1.68 billion (USD 20 million) from Greater Pacific Capital. The Pune-based company issued 10,100 non-convertible debentures to raise INR 1.01 billion (USD 12 million) and allocated 704,612 preference shares to raise the remaining capital. The proceeds will be utilized for debt repayment, capital expenditure, and sales and marketing efforts. —Entrackr</li>
</ul>
whereRelatedArticle
<h3>Slice, Aleta Planet, Otsuka Pharmaceutical, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1">Slice, a fintech startup specializing in travel payments, raised USD 17.5 million in a combined equity and debt funding round. The equity investment of USD 7.5 million was spearheaded by Peak XV Partners, while the debt facility of USD 10 million was provided by Roadnight Capital.</li>
<li aria-level="1">Aleta Planet, a Singapore-based entity specializing in cross-border payment services for businesses in the Middle East, received an undisclosed investment from National Pulse, a Dubai-based tech-focused firm.</li>
<li aria-level="1">Otsuka Pharmaceutical, a Japanese pharma company, announced its impending acquisition of Boston-based Jnana Therapeutics. The deal includes an upfront payment of USD 800 million and up to USD 325 million in development and regulatory milestones.</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: Thailand’s APX Solutions snags fresh funding, MUFG invests in USD 393 million in Mynt, Canva acquires Leonardo AI, and more

Philippines

… energy storage companies. The main goal is brand exposure to cultivate basic recognition among customers, followed by further business progress. This June's Intersolar Europe exhibition in Munich was the first stop for many Chinese energy storage companies aspiring to go global. According to the exhibition organizers, about 900 of the 3,008 exhibitors this year were from China.
Applications for next year's exhibition started a month ago, and the number of Chinese companies registered for 2025 has doubled compared to the same period in 2024. The doubling of registration numbers also reflects the high enthusiasm of Chinese energy storage manufacturers for accelerating their overseas expansion.
Among the companies actively promoting overseas large-scale energy storage business, there are both old players with overseas business foundations like Envision Energy and Canadian Solar, and new players like Hyper Strong, which mainly focuses on the Chinese market, as well as "crossovers" like AlphaESS, extending from residential energy storage to large-scale energy storage. At a meeting in April, Hyper Strong chairman Zhang Jianhui said, "The next 10 years will be the beginning of Hyper Strong's international development."
<h3>New players must overcome three barriers</h3>
However, the entry threshold for the overseas large-scale energy storage market is higher than that for commercial, industrial, and residential energy storage. To tap into actual opportunities, new players must overcome three barriers.
The first barrier is time. Entering the overseas large-scale energy storage market requires national certifications, which can take six months to over a year. Companies must also develop international websites, participate in exhibitions, and enhance market recognition. Entering competitive markets like Europe and the US also necessitates demonstration projects in regions with easier business advancement, such as Southeast Asia and South America. Overseas customers prioritize the experience and track record of energy storage suppliers, as well as their brand IP, publicity, company values, and environmental, social, and governance (ESG) performance.
<div class="embed-container"><iframe src="https://flo.uri.sh/visualisation/18915440/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>
The second barrier tests the overall strength and financial capacity of companies. Overseas large-scale energy storage projects often involve amounts exceeding RMB 10 billion (USD 1.3 billion), with rigid contracts, high delivery risks, and stringent maintenance and warranty requirements. Suppliers may face hefty fines and compensation if the system's operational efficiency fails to meet standards or if non-human factors affect power dispatch. Downstream customers scrutinize a company's market value and revenue to ensure the supplier can handle potential risks and won't go bankrupt during the project's lifespan.
"Customers will look at a company's market value and revenue to ensure that the supplier can handle potential risks and pay possible compensation, and that it won't go bankrupt in 5–10 years, affecting the project's operational status during its lifespan," Li said.
36Kr learned that, in 2021, Sungrow's overseas large-scale energy storage business was affected by the pandemic, resulting in considerable fines. According to chairman Cao Renxian's explanation at the 2021 annual performance briefing, the fines and compensation related to the Vietnam and Myanmar projects led to a profit loss of approximately RMB 1 billion (USD 138.2 million) for Sungrow in 2021. Such fines and compensation amounts are unbearable for most startups in the industry.
The third barrier tests the technical strength of companies. Overseas large-scale energy storage systems are frequently utilized in demand response and power system dispatch and regulation, operating for several years. This tests the efficiency, safety, and quality of each supplier's products, supported by their technical capabilities. 36Kr noted that many companies offering low prices overseas failed to secure large-scale energy storage orders because foreign customers are likely to prioritize overall lifecycle returns and quality assurance, concerned about the lack of subsequent guarantees for low-priced products.
According to Li’s observation, about 60% of energy storage companies in the large-scale energy storage market are making product iterations through minor modifications rather than technical advancements. In his view, there is a clear technical stratification between leading manufacturers and second- and third-tier manufacturers. The market is also increasingly concentrating orders on experienced leading companies.
whereRelatedArticle
The reality is that leading players like Sungrow, BYD, and Tesla have been working in this market for over a decade, accumulating advantages in technology, brand, and project experience, making it difficult for new players to catch up and surpass in a short time. Even if all other conditions are met, time is an unavoidable cost. "Don't just look at the high gross margins of many companies overseas—also consider how much they have lost or how many years they have laid the groundwork before,” Zhang said.
Therefore, despite the continuous growth of the overseas large-scale energy storage market, the current prosperity largely belongs to a few leading companies. New players can only start with demonstration projects in Asia, Africa, and Latin America, using sufficient long-term practice to accumulate technology and experience before having the opportunity to compete with leading players in the broader international market.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2875533635768704">article</a> was written by Wang Fangyu for 36Kr.

Booming demand for large-scale energy storage reshapes the global market

Deep Tech

Energy

<h3>Slice snags USD 17.5 million in equity and debt round</h3>
Slice, a fintech startup specializing in travel payments, has raised USD 17.5 million in a combined equity and debt funding round. The equity investment of USD 7.5 million was spearheaded by Peak XV Partners, while the debt facility of USD 10 million was provided by Melbourne-based Roadnight Capital.
Founded in 2018, Slice allows users to lock in flight prices months ahead and pay in manageable installments. "Our vision was to help customers access travel while also helping them to budget sensibly and avoid financial hardship,” said Farouk Ismail, CEO of Slice.
The funds will be used for product enhancements and to scale the startup’s B2B offering, Slice Pay, for travel agents.
<h3>Aleta Planet secures undisclosed investment from National Pulse</h3>
Aleta Planet, a Singapore-based entity specializing in cross-border payment services for businesses in the Middle East, has received an undisclosed investment from National Pulse, a Dubai-based tech-focused firm. This funding will enable Aleta Planet to expand its presence in the Middle East and Africa. The company will establish its global headquarters in Dubai, while continuing to coordinate its expansion in Southeast Asia from its Singapore office.
Additionally, Aleta Planet plans to form a joint venture with National Pulse to focus on B2B cross-border transactions, initially targeting the Middle East’s agricultural trade and logistics sectors. —e27
<h3>Otsuka Pharmaceutical to acquire Jnana Therapeutics</h3>
Otsuka Pharmaceutical, a Japanese pharma company, has announced it will acquire Boston-based Jnana Therapeutics for more than USD 1 billion. The deal includes an upfront payment of USD 800 million and up to USD 325 million in development and regulatory milestones.
Jnana, a clinical-stage biotechnology company, focuses on drug candidates for rare diseases and immune disorders. The acquisition is expected to close in the third quarter of this year.
This acquisition is aimed at expanding Otsuka's drug pipeline and research capabilities, particularly in the Boston area, aligning with its focus on psychiatric drugs and cancer treatments.
<h3>Pichi Finance raises USD 2.5 million in seed round</h3>
Pichi Finance, a “trustless points trading protocol,” has raised USD 2.5 million in a seed funding round co-led by UOB Venture Management, Signum Capital, and Mantle Network.
The round also saw participation from DWF Ventures, Wise3 Ventures, and Genesis Block Ventures.
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<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1"><a href="https://www.synsense.ai/">SynSense</a>, a company developing neuromorphic computing solutions, has raised several hundred million RMB in a strategic financing round led by Ningbo Tongshang Fund, with participation from other investors like Samsung. SynSense, founded in 2017 and incubated by the Zurich Institute of Neuroinformatics, operates advanced R&amp;D centers and joint laboratories in Zurich, Ningbo, Shanghai, and Chengdu. The company plans to use the funds to further develop its technologies. —<a href="https://36kr.com/p/2887220254399110">36Kr</a></li>
<li aria-level="1"><a href="https://astribot.com/index-en.html">Astribot</a>, an artificial intelligence and robotics company, has announced the completion of pre-Series A round of financing, raising an eight-figure USD sum. Matrix Partners led this round, with participation from Dalton Venture, Dalton Qinghui Investment Management, and existing investor Yunqi Partners. China Renaissance acted as the exclusive financial advisor. The funds will be used for talent acquisition, R&amp;D, and commercialization. —<a href="https://36kr.com/newsflashes/2887120658176642">36Kr</a></li>
<li aria-level="1">SineuGene, a biotechnology firm, has secured nearly RMB 100 million (USD 13.8 million) in pre-Series A funding. Zhongguancun Development Group led the round, with additional investment from ZBJL Capital, Transfar, and Sanmei Investment. —<a href="https://36kr.com/newsflashes/2887002527980165">36Kr</a></li>
<li aria-level="1">Micron Biotechnology, a Chengdu-based company developing functional microspheres using microfluidic technology, has completed a pre-Series A funding round, securing an eight-figure RMB sum from Chengdu Capital Group and Sichuan Development Holding. —<a href="https://36kr.com/p/2885969294908040">36Kr</a></li>
<li aria-level="1"><a href="https://etopus.com/">eTopus</a>, a semiconductor solutions company, has completed its Series B++ funding round. Shang Qi Capital was the investor. The exact investment amount was not disclosed. eTopus was founded in Silicon Valley in 2014 and registered in Shanghai. —<a href="https://36kr.com/newsflashes/2886942748383874">36Kr</a></li>
</ul>
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<h3>Beep, M-DAQ Global, Intellecs.ai, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.beepbeep.tech/">Beep</a>, a Singapore-based internet-of-things company, raised USD 3.3 million in a pre-Series A funding round co-led by Granite Asia, Farquhar VC, SUTD Venture Holdings, and Wing Vasiksiri, with participation from M7 Ace Neo.</li>
<li aria-level="1">M-DAQ Global, a Singapore-headquartered fintech firm, acquired Malaysian B2B payments service provider Easy Pay Transfers.</li>
<li aria-level="1"><a href="http://intellecs.ai">Intellecs.ai</a>, a Singapore-based AI-powered research and writing platform, secured USD 125,000 in pre-seed funding from Antler.</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: Slice snags USD 17.5 million, Dubai-based National Pulse invests in Aleta Planet, Japan’s Otsuka Pharma to acquire Jnana Therapeutics, and more

Middle East

… overseas</h3>
CATL's market share is very stable in China. In the first half of this year, CATL's domestic power battery installations reached 93.31 gigawatt hours, with the overall market share rising by 2.97 percentage points to 46.38%.
In the LFP battery segment, BYD surpassed CATL in the first half of 2023 with a market share of 43.68%. This year, CATL regained the top spot in the segment with a market share of 37.19%, exceeding BYD's 35.79%.
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Market share is also reflected in existing production capacity. The financial report shows that CATL's current capacity is 323 GWh, up from 254 GWh in the same period last year, an increase of 69 GWh. The under-construction capacity is 153 GWh, up from 53 GWh last year.
In the first half of the year, CATL's capacity utilization rate was 65.33%, a significant recovery from last year's 60.5%. CATL pointed out in the earnings call that, due to strong market demand this year, the company sped up on capacity building and would maintain a certain level of investment for some time.
However, the financial report shows that CATL's fixed assets were RMB 113.143 billion (USD 15.62 billion), a year-on-year decrease of 1.9%, and construction in progress was RMB 27.257 billion (USD 3.76 billion), a year-on-year increase of 9%. These values showed little fluctuation.
Capital expenditures saw a significant reduction. In the first half of the year, CATL's cash payments for the purchase and construction of fixed assets were RMB 13.83 billion (USD 1.91 billion), a year-on-year decrease of 25%.
This means that, although CATL has many under-construction capacities, the pace of production has slowed. Although domestic market demand remains, the growth rate is clearly not as fast as before, and CATL no longer needs to expand production massively to meet business growth rates.
CATL also mentioned in the financial report that its “super-intelligent manufacturing line” has been promoted to various production bases, significantly improving production efficiency. This technology is designed for large-scale production, apt for the production of Qilin and Shenxing batteries. CATL said that its <a href="https://www.catl.com/en/news/6030.html">eighth-generation prismatic super line (PSL)</a> can reduce personnel requirements by 70% and increase production speed by 300%.
In addition to stabilizing the domestic market, CATL is also expanding into overseas markets, which is the next competitive focus for battery companies.
The financial report shows that CATL's main product sold overseas in the first half of the year was battery systems, with no significant change compared to the same period last year. However, the company's overseas revenue reached RMB 50.529 billion (USD 6.98 billion), accounting for 30.30% of total revenue. The gross profit margin of overseas revenue was 29.65%.
CATL's overseas business currently mainly involves exports, and expanding local production capacity overseas is urgent. CATL has disclosed six overseas factories to date, in Thuringia (Germany), Hungary, Indonesia, Thailand, as well as Michigan and Nevada in the US, in cooperation with Ford and Tesla, respectively.
Besides Indonesia and Thailand, where Chinese car companies are collectively going abroad, the other four factories face significant challenges.
In Europe, the Thuringia factory has been built but continues to lose money. CATL explained that the factory is still ramping up capacity, with the goal of breaking even for the year. The Hungary factory has completed some plant top-sealing and equipment commissioning, with construction work progressing orderly.
Building European factories requires significant resources. CATL's German factory has invested RMB 13.34 billion (USD 1.84 billion), with a planned capacity of only 14 GWh.
In contrast, the Hungary factory has a planned capacity of 100 GWh and has only invested RMB 2.97 billion (USD 410.1 million). Even if the cost in Hungary is halved, an additional RMB 44.53 billion (USD 6.15 billion) will be needed to fully operationalize. These capacities require substantial funds and stable orders.
In the US market, the license royalty service (LRS) model forms the basis for factory construction. This model, explained during the earnings call, is said to be a win-win sharing model with partners, where CATL does not need to invest capital expenditures for production base construction, thus posing relatively low risk.
However, according to 36Kr, although no capital expenditure is required, CATL must support almost all plant, equipment, and supply chain construction work, with the partners only needing to "move in." This model's profit-sharing is complex and still under negotiation, with significant challenges in supply chain construction.
Overall, CATL has entered a stable period. Even amid intense price wars, it can still ensure its profitability.
Developing the overseas market will be CATL's next growth point, but the future holds many uncertainties.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2881910358200964">article</a> was written by Han Yongchang for 36Kr.

Battery giant CATL turns conservative to sustain profits amid price war

CATL

China Tech

Battery

Mobility

… cockpit.
<h3>36Kr: Has the internal development approach changed after the full-vehicle OS was introduced?</h3>
WQ: We’ve indeed entered a stage of rapid growth with multiple brands and models. If we stuck to our old rhythm, we couldn't have advanced so many models simultaneously. With a standardized platform, we provide standard interfaces, enabling different hardware configurations to develop concurrently, boasting a module sharing rate of over 90%.
Moreover, people often overlook the toolchain. OS development demands effective toolchains. In the AUTOSAR era, the DaVinci toolchain was the standard, but it had limitations. Today, car manufacturing requires collaboration, rapid iteration, and continuous testing. We've invested significantly in building a comprehensive toolchain that spans design, development, integration, testing, simulation, and debugging. This is the key to SkyOS's faster iteration efficiency and greater reusability.
<h3>36Kr: Previously, AUTOSAR was a software protocol for component suppliers. Will Nio’s relationship with suppliers change due to SkyOS? Will the value of supplier components decrease?</h3>
WQ: The shift in supplier roles is inevitable with the evolution of automotive architecture technology. We used to rely on many small black boxes in the car, unaware of how their functions were implemented. But with SkyOS, we can integrate these functions into the domain controller, saving significant costs and boosting efficiency while cutting iteration expenses.
What can suppliers do during this transition? They can focus on honing their functions, accumulating know-how, and exploring new cooperation models with OEMs, such as developing functions on our platform. This shift in supplier roles isn’t solely driven by the full-vehicle OS but by the broader transformation in automotive technology architecture, which reshapes the scope of collaboration.
We've also developed tools to convert AUTOSAR code to be compatible with our OS. However, AUTOSAR is a two-decade-old architecture with inherent design flaws. While it can be converted and adapted to our interface, it’s not the most optimal solution.
<h3>36Kr: Will Nio deploy cockpit-driving integration? How does SkyOS support this integration?</h3>
WQ: Vehicle hardware resources can be classified based on high safety, low latency, and high reliability by categorizing the operating environment required by the application. However, the division of computing resources may not align with the system-on-chip (SoC) hardware—instead, it is achieved through virtualization technology.
Virtualization has been an industry standard in cloud systems for 20 years. If each application had its server, most server resources would be utilized only 10% of the time, with 90% wasted. Sharing resources among multiple users significantly increases utilization.
In vehicles, both smart driving and cockpit computing power demands are substantial. We're talking CPUs, GPUs, NPUs, and ISPs. By categorizing and combining these resources through isolation and virtualization, ensuring that resource modules do not affect each other, higher computing power applications can be achieved, resulting in lower bill of materials (BOM) costs.
For example, sharing camera data used to require Ethernet transmission, which occupied significant bandwidth and CPU resources on both ends. But if placed on one hardware and shared through shared memory, resource consumption is minimal. This is the benefit of cross-domain integration.
Cockpit-driving integration is also in our plans, and our chips will support it.
<h3>36Kr: Can we expect to see a scenario where Shenji supports multiple domains? When might this happen?</h3>
WQ: It will happen in NT3.0. Shenji is a vast resource pool that we must fully utilize, not just for cockpit sharing but also for other smart applications.
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<h3>36Kr: What are the medium- to long-term goals for SkyOS in the next 3–5 years?</h3>
WQ: The main target is to further support AI-native application experiences. I believe future cars will become AI entities with comprehensive capabilities. The hottest topic in the robotics field now is embodied intelligence, but cars are more widely used and also a form of robot themselves. Under this product form, there will be new demands in terms of hardware architecture and OS.
<h3>36Kr: What challenges do large language models or visual language models pose for full-vehicle operating systems?</h3>
WQ: Large models come with massive parameter quantities, demanding high computing power and memory. We must efficiently support their deployment, leveraging heterogeneous computing power.
We have centralized resource pools like Shenji and Qualcomm's cockpit chips, which we need to integrate and utilize effectively. Vehicle and cloud integration demands careful optimization.
We're likely the first carmaker to harness edge cloud technology, achieving ultra-low latency between the car and the cloud, delivering low-latency services to users. In this era of high computing power and large models, utilizing the low-latency capability of 5G edge cloud for real-time interaction between the terminal and the cloud is a key strategy.
Localized deployment of AI models is a clear trend, but we don't want local resources solely running models and draining the vehicle's computing power. Therefore, optimizing resources and ensuring precise use will be a long-term priority.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2883274311996296">article</a> was written by Li Anqi for 36Kr.

Nio unveils SkyOS, envisions AI-driven future for vehicles

Electric Vehicles