CXA axes workers and shuts down in Vietnam

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Hello readers,

The new cool in the startup world: Being SaaS-y. And yes, by SaaS, I mean software-as-a-service. Take for example the popular video conferencing platform Zoom, which has recently begun licensing its technology to other companies.

And here’s another example: Singapore-based insurtech startup CXA Group sold its lucrative brokerage service to go full SaaS. But while the firm said that its new business model is leaner and more profitable, it recently laid off its whole Vietnam team. What’s going on?

Today we look at:

• Why CXA Group is shutting down its tech hub in Vietnam
• What’s happening in Myanmar’s tech community? (This was a difficult story for our journalist Simon Huang to research, do interviews for, and write, given the humanitarian crisis that the country is going through. Our hearts are with the people of Myanmar.)
• Other newsy highlights, such as Tencent’s woes over the merger of Huya and Douyu, and the ‘Netflix of Indonesia’ looking to go public via SPAC

PREMIUM SUMMARY

Shuttering its Vietnam’s operations

CXA, a predictive B2B data intelligence platform for health and wellness companies, will be shutting down its tech hub in Vietnam and laying off all 70 employees. Rosaline Chow Koo, founder and CEO of CXA Group, has denied that the closure is due to financial difficulties.

• ”Revenue grew”: CXA reported that its revenue grew 40% in 2020 ever since the firm switched to focus on its SaaS business. Koo added that the company has become extremely lean after the change in its business model.
• Journey to the west: The firm’s China office will be taking over the work of the Vietnam employees who were laid off. Koo acknowledged that CXA is doing so to consolidate all of their product, technology, and operation teams in one location.
• ”Layoff was a surprise”: According to a source, a previous town hall meeting had mentioned that the Vietnam team would be expanding to work on the firm’s SaaS product. But instead, what they received were termination contracts and severance packages with questionable terms.

Read more: CXA Group to shut down Vietnam tech hub, lay off dozens

PREMIUM SUMMARY

The startup crisis in Myanmar, among its other crises

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