Tech companies claw their way out of the pandemic hellhole

Dear readers,

2020 has been rough. We felt it in the newsroom: From March onwards, we began covering more layoffs and company shutdowns.

But even as offices were hollowing out, some companies kept receiving investor money.

It’s the survival of the fittest: Unproven startups have struggled to fundraise, while stronger companies have retained investor confidence.

Notably, Grab, Gojek, Traveloka, and Tokopedia have raised money during the pandemic, and Sea’s stock price is at an all-time high.

Leaner and meaner

While many tech firms had to shed staff, they’ve also emerged healthier without the bloat that comes with an overdose of capital.

Notably, Traveloka said during the Tech in Asia Conference last week that it is nearly profitable after riding on a surge in local tourism.

Traveloka employees giving out masks to passengers at Jakarta airport earlier this year / Photo credit: Traveloka

Grab too announced to its staff that its revenue is almost back to pre-pandemic levels (though it didn’t say how its bottom line has been doing).

There’s more good news: Indonesian ecommerce platform Bukalapak says that its gross profit has improved by 200%. Startups like Snapask and Waresix have been profitable too.

Of course, the road doesn’t end here. Covid-19 has proven to be tough to stamp out. As a result, it might take years for the travel and tourism industries to fully recover.

Life goes on

That said, the recent rebound could point to consumers clamoring for a sense of normalcy amid the pandemic. Or perhaps it’s a sign that they’ve accepted that the virus won’t be going away so soon. It may also have to do with how companies are focusing more on services that are doing well despite the mobility restrictions.

Even in Indonesia, where infections are rife, users have been gradually returning to the Grab, Gojek, and Traveloka apps since April, according to a third-party estimate I’ve seen.

I guess “life must go on” is the attitude many are adopting. That’s also the attitude within the tech ecosystem and at Tech in Asia.