SEA can’t sleep as startups brew espresso

This week’s On the Rise looks at coffee startups in Southeast Asia and how AI is brewing new blends. [Read from your browser]( On the Rise 🚀 Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter spotlights emerging startups and the biggest trends in the tech ecosystem. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- IN FOCUS In today's newsletter, we look at: - [The startup-backed coffee brands brewing in Southeast Asia]( - How AI is being utilized by a number of players in the coffee industry Hello {NAME} When I visited Seoul in 2016, I was surprised how there was a coffee shop on almost every street corner. It varied from global brands to mom and pop shops. But isn’t South Korea a tea-drinking country? Soon, I found the same phenomenon happening in the streets of my hometown, Manila. It’s no longer surprising to find at least 10 different coffee shops and stalls in one mall these days. Eventually, even startups found their way into competing in this cutthroat space. Our Big Story this week shows the various tech-enabled coffee brands brewing in Southeast Asia.  --------------------------------------------------------------- [Tech-enabled coffee chains percolate across Southeast Asia]( In 2021, funding for coffee startups exceeded US$112 million. While capital infusion in this space fell 63% in 2022, it managed to pick up slightly in 2023. You may wonder, how do these startup-run coffee joints differ from big brands? While Starbucks specializes in being a “[third place]( for its customers, these brands are mostly focused on serving coffee quickly and inexpensively. They do so by running through carts and in smaller shops. Some also offer delivery services through their apps. AI bots added to the brew In other parts of the world, however, some coffee chains are already integrating more advanced technologies such as AI into their operations. Finland-based Kaffa Roastery, for instance, launched a coffee blend made through AI. Aptly called “AI-conic,” the blend mixes four types of Brazilian beans. The roastery’s managing director [told]( the Associated Press that he gave descriptions of different coffee beans and input them into ChatGPT with the help of an AI consulting firm. The AI tool then suggested three coffee blends. Usually, the roastery’s blends only mix two or three types of coffee beans. The AI suggested four types of beans, which surprised even the managing director. “This [AI suggestion] caused doubts in advance about the possible even thickness of the coffee, but the end result is really complex and multidimensional,” the roastery said in a [blog post]( on its website. The blend was so popular that the roastery is making them available again [this September]( after its first run in the second quarter of the year. Meanwhile in Taiwan, an audio-visual manufacturer [built an AI-powered coffee bean sorter]( which would help small roasters to sort “good” beans from the rest to ensure a well-rounded coffee blend. This process is usually done manually, but the machine, which uses facial recognition technology, could identify what is potentially a “bad” bean from the rest, making the sorting process faster. Will these innovations push the prices of our cup of joe eventually? That remains to be seen. Still, it’s quite fascinating how a drink first introduced in the [15th century]( remains to be a subject of innovation thousands of years later. – Elyssa  --------------------------------------------------------------- DEEP READS Also check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ [SEA-based VCs’ new bets may not always be tech-focused]( They first came for the coffee joints, then they targeted the usual mall stores. VC firms in the region are pouring more cash into retail-focused businesses, from travel gear shops to F&Bs, as the tech winter persists. Some investors say the rise of the middle-class segment makes retail alluring. But this report shows that the vertical has its own set of challenges. 2️⃣ [This startup offers a ‘cheaper’ AI solution for enterprises. Will it click?]( The CEO of Recursal.ai says most companies - including those in the medical, banking, finance, and legal industries - do not require high-end computation for an AI-powered solution to work for their needs. The startup proposes an alternative large language model that can provide an AI that runs easily on low-end devices. This means startups that have specific demands do not exactly need to shell out millions of dollars for AI-powered solutions like those in Silicon Valley do. ---------------------------------------------------------------  LEADERSHIP COLLECTIVE: BUILDING AT SCALE ON SEPTEMBER 26 Build better products, faster Deeper integration between design and engineering - opportunity or headache? Senior product developers and engineers are tackling this question head-on at our exclusive roundtable on September 26 at Coriander Leaf Chijmes. We'll explore proven strategies for effective communication, uncover the true potential and challenges of advanced design tools, and discover how to empower true collaboration that transforms your product development process - and yes, spark a little healthy debate along the way. Space is extremely limited - [apply for your invite today!]( ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. [Tech in Asia Conference Jakarta on October 23 - 24]( Nicholas Nash, managing partner and co-founder of Asia Partners, will be delivering the opening keynote at TIA Conference Jakarta and share his insights on Southeast Asia’s tech resilience, focusing on the markets and industries that have kept the region powering through. He’ll also explore the underlying factors that enable this continued growth and development. Final batch of third-release tickets are now up for grabs at 45% off, [get yours today before offers end on September 8.]( [Tech in Asia’s Founders Meetup: Thailand on September 11]( Don’t miss out on unfiltered, one-on-one advice from seasoned investors from Beacon Venture Capital, Plug and Play Tech Center, and Vertex Ventures. Ask them anything - from securing funding to navigating challenges to building a winning team - during our all-new VC office hour. Limited 1+1 bundle deals up for grabs. [Get your tickets now!]( [Gemini Day for Startups: Indonesia on September 26]( Turn AI hype into your startup’s unfair advantage. Learn concrete steps to turn insights into real value for your business. Expect practical advice, clear next steps, and zero jargon – just real-world AI that gets results. Limited seats available - [apply for your invite today.]( [SYNC 2024 on October 08]( Get ready to experience the future of AI at #SYNC2024, an exclusive, closed-door event convening 100 of Asia's most influential minds in the AI landscape. We're thrilled to announce that Min-Liang Tan, co-founder and CEO of Razer, will be joining our main stage speaker lineup. Besides the main stage content, expect tailored roundtables, demos from AI startups, and networking opportunities aimed at equipping you with the knowledge and resources to navigate the ever-evolving AI landscape. This exclusive event is by application only. [Find out more about SYNC 2024 today.]( [Startup Factory at Tech in Asia Conference Jakarta]( Are you a founder looking for inspiration, connections, and the latest tech insights? Look no further than the Startup Factory at #TIAConferenceJKT! This exclusive space, designed for founders like you, will showcase the region's most promising tech companies. Get up close and personal with the innovators shaping the future, discover the trends driving the tech industry, and connect with potential partners and investors. Competition is fierce and limited booth slots are available. [Apply now!](  ---------------------------------------------------------------  That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you next week! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. 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