NEXEA’s new initiative to help Malaysian SMEs make a digital transition
Malaysian venture capital firm-cum-accelerator NEXEA has launched an initiative, called DigitalSME, which aims to enable small and medium enterprises (SME) to transition into the digital age with the help and support of tech startups.
Through the programme, SMEs will be able able to operate digitally beyond their physical stores, breaking limitations and barriers to the market and adhering to the required protocols in light of the current pandemic.
For this initiative, NEXEA has united with its portfolio companies and other partners, including Hauz (cloud-based workforce management company), RedDino (e-commerce solutions provider), Lapasar (B2B procurement marketplace firm), and co-working space provider Common Ground, among others.
According to Ben Lim, Managing Partner of NEXEA, while changing business models and transition to e-commerce are the flavour of the day, most SMEs are at a loss on how to transition their current business to the web smoothly.
“When it comes to changing business models, from our experience at NEXEA, a lot of complex validation and transitions need to take place. This is where we find that SMEs will benefit the most invalidating and transitioning their business models — by leveraging the services provided by these tech startups,” he said.
“While the Malaysian government sees a possible 2.4 million job losses and RM2.4 billion in daily economic losses during the movement control order (MCO), we also note that Vistage (a leading CEO group) did a survey with top 750 CEOs in the country to show that over 50 per cent of their businesses intend to change their business model,” he further added.
In order to become a part of this initiative and utilise the resources, Malaysian SMEs can sign up via NEXEA’s website.
Since inception, NEXEA has invested in over 35 startups. It also continues to invest in startups via its Corporate Accelerator programme 2020.