Can Aspire win Asian SMEs’ loyalty?

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Hello reader,

For as long as I’ve had a smartphone, I’ve had an Android.

I couldn’t tell you exactly why I eschewed an iPhone when I joined the 21st century and got a smartphone, but it was probably something to do with the price. Even though I’m in a (slightly) better financial situation now, I’ve always stuck with Android phones.

Maybe it’s loyalty (though it doesn’t make much sense to be loyal to companies the size of Samsung), or maybe Androids simply fulfill my needs in a phone. They tend to be pretty robust, are simple to use, and still have an audio jack.

Maybe if my needs for a phone were different, like if I suddenly got into photography or videography, I’d switch to Apple. My loyalty hasn’t truly been tested yet, I guess.

Today’s featured premium story dives into Aspire, a company that finds itself facing a loyalty test. The fintech startup needs to show that it’s more than a niche provider for small businesses that have more and more options for their financial management needs as they grow.

Today we look at:

• Aspire has SMEs’ trust. Can it win their loyalty?
• 17Live’s CEO steps down
• Other newsy highlights such as SoftBank Ventures Asia changing its name to SBVA and Chinese gaming regulators approving 115 new titles in a month.

Premium summary

What comes next for Aspire?

Image credit: Timmy Loen

Having secured some US$300 million in funding since its inception in 2018, Aspire finds itself at a crossroads.

The company serves around 15,000 businesses (full disclosure: including Tech in Asia) but faces the challenge of becoming a household name and moving beyond its Singapore base.

• SME-focused: Aspire largely targets SMEs for its customers, particularly fast-growing digital firms that are typically underserved by banks. It offers financial management tools for handling payments and expenses, with financing available as an add-on service. In June last year, Aspire announced it had achieved net profitability on a monthly basis. However, Singapore’s SME banking space has become increasingly competitive, with the ventures backed by the likes of Grab, Sea Group, and Ant Group all rivals.
• Scaling challenge: Co-founder and CEO Andrea Baronchelli believes Aspire’s model can be scaled across Asia, where many SMEs use antiquated methods to manage their finances. However, small companies “are also very price-sensitive,” says David Yin, a partner at global investment firm GSR Ventures. In addition, as SMEs grow, they tend to be offered better services by traditional banks, which can entice them away from Aspire.
• Staying the course: Baronchelli says Aspire isn’t pursuing bigger clients for now, which is what comparable American company Brex controversially did in 2022. While the CEO declined to comment on a potential IPO or Aspire’s valuation, sources hint that it may be halfway toward unicorn status.

17Live shake-up

Join Tech in Asia’s inaugural conference in Ho Chi Minh City on May 30

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