???SPAC Grand Prix, Drowning in Debt #005

Hey guys, Jake here

Welcome to the?6?newly Bare Markets subscribers?that have joined us since Monday! Join?197?smart, curious folks by subscribing to our bi-weekly newsletter

?? Happy Valentine's day! A reminder in case you've forgotten. For people that dislike the lovely February 14th, here are some weird Valentine's days facts that will make your day.

• It's based on a Pagan Ritual.... Every February, the ancient Romans celebrated the feast of Lupercalia, a festival designed to purify the city and?promote wellness and fertility. Like any proper spiritual purging in the ancient world, the festival called for the sacrifice of a goat and a dog, two animals celebrated for their strong sexual instinct.?
• It was never about love.... Based on its origin story, February 14 was a time for celebrating fertility and fruitfulness, not?romance. Valentine’s Day only became associated with romantic love during the High Middle Ages and Renaissance, when writers like Shakespeare and Chaucer romanticized the holiday in literature.?
• It ruins relationships… Data from Facebook?shows that updates with the phrases “break up” and “broken up” spike immediately after Valentine’s Day. Curious about where you stand with your significant other? Book your Valentine's Day reservation at Mcdonald's and see how they react. True love will reveal itself.

???? Singapore

Carousell Rumoured to Acquire 99 Group

Online Secondhand Marketplace ?? Carousell is in talks to acquire Singapore-based property marketplace operator 99 Group ahead of a potential public listing in the US this year.

• Carousell: Carousell works like other online classified platforms and?lets users buy and sell unwanted items online by uploading a photo. It primarily focuses on everyday secondhand items such as clothes, electronics, shoes, and toys. In that way, it is similar to sites like eBay and Craigslist.
• 99 Group:?99 Group s a?leading real estate ?? technology company that operates real estate portals across Southeast Asia, specializing in digital property advertising.

Why acquire 99 Group? Carousell wants to get into the high-value transactions as it potentially shapes up for its US IPO this year.

?? Show me the money:?According to two people familiar with the matter, Carousell’s acquisition of 99 Group could take the form of a US$150 million cash-and-stock deal. Should it happen, the deal could take 99 Group’s valuation far above its current standing of US$83.6 million, according to VentureCap Insights. Carousell, on the other hand, last saw its valuation pegged at a little over?US$1 billion.

?? Beefing up:?According to one of the sources, Carousell’s desire to strengthen its portfolio ahead of a potential US listing spurred the company to engage in acquisition talks, which could happen as early as this quarter. This is just the latest in Carousell’s string of expansion efforts after merging with 701 Search in 2019. 701 Search has 2 online marketplaces -?Mudah?in Malaysia,?Cho Tot?in Vietnam, and?OneKyat?in Myanmar

Carousell’s Current Acquisitions (Earliest to Latest):

1. (2016) Caarly: Used car mobile app
2. (2019) Oneshift: Used Car Media Platform & Car Media Outlet
3. (2019) OLX Philippines: Online Marketplace
4. (2021) Ox Street: Streetwear Marketplace

Read more on Carousell at [1], [2]

???? Cambodia

???? Cambodians drowning in Debt

Even before the pandemic, Cambodia had established itself as one of the most?loan-saturated?markets in the world. It is largely thanks to the increase of microfinance institutions and weak oversight of the sector that lending is getting out of hand.

The covid-19 economic downturn and the rise of digital lending are also adding salt to the wound. Sure, the ease of getting uncollatorised finances is much needed but when is the moment where one should draw the line?

?? Problems:?“Cambodia has one of the most over-indebted microloan sectors in the world, with average loan sizes several times larger than annual incomes,” said the director of a Rights Group Licadho. Because of this, many Cambodians are trapped in a debt cycle, taking out new loans to pay off older ones, rather than using the money to invest in assets or sustainable business models

?? The Real Numbers:?A report found that Cambodia had 2.8 million loans for 3.6 million households, totaling $11.8 billion, with an average “microloan” size of $4,280, higher than the annual income of 95% of Cambodian families.

Full Article Here:?[Link]

???? Philippines

Crypto Exchange PDAX Secures US$50 Million in Series B Led by Tiger Global

Tiger Global has led a US$50 million Series B round in the Philippine Digital Asset Exchange (PDAX).

?? Why Fund Them?:?The licensed exchange said that the funds would build a safe and accessible infrastructure for the digital asset economy.

?? Backstory: In 2020, PDAX teamed up with the Bureau of the Treasury and local financial giant UnionBank to launch Bonds. This blockchain-enabled app allows investors to invest in retail treasury bonds.

• "Today, PDAX?facilitates the exchange of crypto and fiat currencies?and enables payments in and out of metaverse applications. We are in the middle of developments that will continue to make access to digital assets safer, easier, and more efficient for everyone," said Nichel Gaba, founder, and CEO of PDAX.

Link to Full Article [Link]

Other Philippines Tech News

Peddlr Scores USD 4.1 million Seed Funding - Link

???? Singapore

Singapore looks to replace ???? Hong Kong as the SPAC listing hub

More Demand = More Supply..... Here's an overall on the Singaporean tech scene

• Multitudes of tech startups seeking funding
• Regulatory Overhaul
• Support by State Firms
• Most importantly, a tech boom

Due to overarching demand, the SGX (Singapore Exchange) is looking to establish itself as the hub for blank-cheque firms (SPAC).

• Special purpose acquisition companies (SPACs)—which are listed investment vehicles for taking private companies public via mergers
• ?? ELI5: A SPAC is kind of what it sounds like: a company that was formed for the special purpose of acquiring something. They IPO without having any actual business operations.
• Typically, this is a well-known investor with a solid track record who can attract investors based on their reputation. They are essentially getting a blank check to go out and buy a company. It is usually to take the company public without going the traditional IPO route, making a lot of money in the process.

However, a key test for SGX will come when SPACs have to seal merger targets within two years, a "de-SPACing" process already weighing on U.S. deals as hundreds of SPACS chase targets.

• de-SPACing is when the SPAC merges with its target business after its shareholders' approval. ??

Singapore could list up to a dozen special-purpose acquisition companies (SPACs) within the next 12-18 months.

Low levels of listings.?Last year, fundraising on SGX halved to $565 million, a six-year low, with just eight listings.

Recent Fundings

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