One freshly Baked round of layoffs, financial woes coming up

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Hey there!

In 2021, my elder brother invested around US$100 in Dogecoin. It was more like a high-stakes gamble than an investment, but boy did he hit the jackpot. In just a week, he had grown his US$100 to US$1,000, and that’s when he decided to sell his tokens.

The motorbike I ride today is partially funded by that gamble. You see, 2021 was the year of crypto craziness, and Dogecoin wasn’t the only one with an extraordinary valuation.

For instance, take Cake DeFi – now renamed to Bake – as an example. The firm saw the value of its decentralized finance chain token skyrocket to US$1.2 billion in May. However, the drop has been equally dramatic, with the value since falling by 5x to US$240 million.

But – and here’s where it gets interesting – the company has laid off 34 employees in the past year, while sources put that number closer to 60. The company also has a monthly burn rate of around US$733,000. My colleague Scott goes deeper to understand what troubles are ailing the company in this week’s Big Story.

Coming back to my Dogecoin-funded motorbike, one thing that has always frustrated me is that there isn’t proper infrastructure for local automotive repair shops. These motorbike servicing shops feel like they’re stuck in the 70’s or 80’s and run by grease-stained mechanics who barely know how to use a computer.

As a result, these stores never seem to have the right parts or the specific brand of engine oil I prefer, which makes getting my motorbike fixed feel like a never-ending story.

In our second Big Story, my colleague Shadine unveils how Bengkel Mania is stepping up to digitalize the operations of these MSME workshops.

Also, in this week’s AI Odyssey, I discuss Google’s recent investment in AI21 Labs and its implications.

— Lokesh

THE BIG STORIES

1️⃣ Cake Group lays off staff amid revenue decline, denies cost-cutting

Image credit: Timmy Leon

Former employees say the company is bleeding money and cutting staff. It made US$266 million in 2022 compared to US$631 million the year before.

AI ODYSSEY

NEWS YOU SHOULD KNOW

FYI