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Hello readers,
A friend recently asked if I’d consider leaving the comforts of home to rent a space with her. Having lived abroad for two years and gotten a taste of the freedom that comes with it, it seemed an easy yes – except practicality quickly took over. Scrolling through listings for co-living spaces reminded me that this was a life I can’t afford; and even if I could, why would I? This price consciousness is a reflection of my personal beliefs and that of many Singaporeans.
Singapore-headquartered co-living startup Hmlet understands this and has had to pivot its model to target locals, as the pandemic sent its primary customer base of expats returning to their home countries.
Today we look at,
- Why Hmlet isn’t letting hurdles get in its way
- The Singapore startup that’s getting a boost from its Slingshot 2020 win
- Other newsy highlights such as fresh funding for Tencent-backed e-grocery startup Missfresh, and Amazon’s plans to back India’s Apollo Pharmacy
PREMIUM SUMMARY
Hmlet’s troubles won’t get in the way of its growth
Hmlet, the Singapore-headquartered co-living startup that rents out residential properties to young professionals, has seen better days. But its shortened financial runway amid the pandemic hardly spells the end for the company.
- Inflate and deflate: After raising US$40 million in July 2019, Hmlet expanded its team to 198 staff, only to cut around 10% of its headcount a year later. The number of staff cuts swelled as the pandemic wore on, whittling the startup down to about 100 people.
- Bad romance: Hmlet’s holy grail is the management contract model, in which a landlord pays a portion of a property’s revenue to an operator for managing it. While this is a common practice among big hotel operators, securing such arrangements proved difficult for Hmlet in its early days..
- New directions: It isn’t all bleak news. The company hopes to close a fundraising round in the next few weeks from existing and new investors. And according to its CEO Yoan Kamalski, there’s been no pressure from investors to cut costs in exchange for new funding. With travel restrictions unlikely to be lifted anytime soon, however, the startup is looking to target locals instead of expats.
Read more: Hmlet sizes down again amid difficult pivot, but it’s making progress
STARTUP SPOTLIGHT
Singapore’s Nextbillion comes out on top in Slingshot 2020
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