IN FOCUS
In today’s newsletter, we look at:
- Why Southeast Asia’s investors are increasingly betting on non-tech brands
- Qoo10’s major layoffs
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Hi there,
My wife is a fan of Indonesia’s Rosé All Day Cosmetics (RADC). She uses the company’s lip tint and blush all the time, and the other day, I saw a Powerpuff Girls-edition mascara in her cart on Shopee.
In addition to being a millennial with a soft spot for 90s cartoons, my wife insists that RADC’s products are both high-quality and affordable – even cheaper than the offerings of some other local brands.
Despite its low prices, the company can make big bucks, and it’s been profitable since its second year of operations. RADC has also secured US$5.9 million of funding to date, with more than 90% of it raised in December 2023.
The Indonesian cosmetics firm is just one of the growing number of consumer brands catching VCs’ attention despite the ongoing funding crunch in the region. While most of these brands don’t rely on cutting-edge technology, their clear path to profitability seems to be the main attraction for VCs seeking more calculated risks. I discuss more about this in this week’s Big Story.
Meanwhile, in this week’s Hot Take, I discuss why Singapore-based Qoo10’s recent layoffs at its headquarters may hint at the company’s potential demise. The staff cuts are particularly critical as the company has had financial troubles with its South Korean subsidiaries in recent months.
— Glenn
THE BIG STORY
SEA VCs stray from tech for new bets
Image credit: Timmy Loen
Amid the tech winter, some VCs are betting on consumer brands that provide a more “predictable” path to profitability.
THE HOT TAKE
The beginning of the end for Qoo10?
Get clarity on your funding prospects with VCs
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