The tech layoff spree continues in Indonesia, with Ajaib cutting 8% of its workforce. Meanwhile, Seedstars, a Swiss venture capital firm, has launched an investment platform for emerging venture capital (VC) fund managers.
Ajaib sacks 67 employees
Indonesian investment platform Ajaib has laid off 67 employees, or about 8% of its headcount, as reported by Tech in Asia. The company said the step was taken due to uncertain macroeconomic conditions.
Employees affected will get compensation and severance pay, the report said, quoting a company statement. It will also provide counselling, job search support, as well as health insurance to the laid-off staff for the next six months.
The news adds to a long list of Southeast Asian tech companies laying off a significant number of their employees. Job cuts and hiring freezes are expected to continue into 2023 as the scarcity of funding has reduced startups’ runways and increased the pressure to grow sustainably and achieve profitability faster.
Earlier this month, IDX-listed GoTo said it laid off 1,300 employees, or 12% of its workforce, while e-commerce firm Shopee’s parent company Sea Group reportedly laid off over 7,000 employees across markets, which is about 10% of its total headcount. Other major startups that took similar steps this year include Ruangguru, Sirclo, KoinWorks, and Lummo, among others.
Seedstars launches investment platform
Seedstars has launched Seedstars Capital, an investment platform for emerging VC fund managers, with support from xMultiplied, a Swiss investment holding company.
The platform will partner with emerging managers having local expertise to launch new funds and develop their investment firms. At the same time, it will act as a catalyst for investments in early-stage firms. With the platform, Seedstars expects to drive over $500 million in new funding for emerging and diverse managers.
“By pooling fund managers’ assets and bringing them under our community, we can accelerate the growth of rising managers while offering limited partners the visibility and investment vehicles they need to increase their allocation to the asset class,” Benjamin Langer, partner at Seedstars Capital, said in a statement.
The first fund launched by the platform is Seedstars International Ventures, a venture capital dedicated to developing and frontier markets. The fund announced its first close of $20 million in July 2022.
The platform also works with Seedstars Africa Ventures that backs companies in the African continent. The fund has also partnered with French Private Equity and asset manager LBO France.