From Singapore’s deep-tech space, a US$1.2b unicorn rises

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Hello readers,

From clocking workouts on your smartwatch to texting while on the commute home, our everyday devices sure do a heap of heavy lifting to simplify our lives in subtle ways.

And here comes another startup that’s adding some magic to the mix: Nanofilm, a Singapore-based firm that has built a (unicorn) business out of adding coatings to gadgets. Never ever paused to wonder why the logo on your Microsoft Surface tablet doesn’t seem to suffer from scratches, have you?

Today we look at:

• How deep-tech unicorn Nanofilm found its profitable formula
• Gojek’s unsurprising management reshuffle
• Other newsy highlights such as Future Capital’s fresh flow of funds and Acronis’ acquisition of CyberLynx

PREMIUM SUMMARY

Singapore’s latest deep-tech unicorn has risen

The deep-tech space is enough of a mystery to the layman, but Singapore startup Nanofilm has risen from its depths with a valuation of US$1.2 billion and a record initial public offering (IPO) that raised some US$375 million, making it the country’s biggest in at least six years. Nanofilm’s domain of expertise? Coatings for devices, from smartwatch bands and printer components to the logos on smartphones and tablets.

• The uncoated truth: Nanofilm is the brainchild of Shi Xu who founded the firm in 1999 while completing his stint as an associate professor at Singapore’s Nanyang Technological University (NTU). His work soon attracted the attention of Japanese electronics conglomerate Hitachi, prompting NTU to spin off Nanofilm into a standalone company. According to a Frost and Sullivan report, the Nanofilm coating’s unique formulation is among the “hardest materials in the world known to mankind.”
• A true unicorn: The startup’s long-time clientele includes Japanese companies such as Fuji Xerox, Nikon, Canon, and Ricoh. However, its China subsidiary has supplanted them in recent years in terms of total revenue, contributing 66.6% of the total compared to just 12.5% from Japan.
• No straight roads: Nanofilm still has some hurdles to overcome, including concentration risk. One of its clients – an undisclosed company – accounts for up to 51% of Nanofilm’s revenue for the past three years. According to Lim Jui, CEO of SGInnovate, a Singapore government-owned firm that invests in deep-tech startups, such companies typically require a longer time to market, and more time and money for long-term growth.

Read more: A successful IPO gives hope to Singapore’s deep-tech ambitions

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As the digital payments sector heats up, Gojek restructures its management

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