When ambition meets gravity

Even barrelfuls of VC funding can't bend the laws of physics.

Read from your browser Sunday Newsletter Welcome to Tech in Asia's Sunday newsletter, your weekend brief on the biggest moves in Asia's tech and startup world. Not yet a subscriber? Register here. Got a story tip? Send it to editors@techinasia.com. IN FOCUS Peter Cowan on VC funding versus physics Why degrees come second in an AI economy Super Bowl watch parties, but for AI agents Hello Betamax, It's easy to forget when you work in or even around tech that the software we use has constraints that another funding round can't cure. It's physics, stupid. The AI models we prompt need GPUs, the cloud servers our websites are hosted on need data centers, our ecommerce deliveries need drivers - the list goes on. As much as Big Tech and some VCs might want to pretend otherwise, tech will always be limited by the physical realities we live in. Putting data centers in space or covering the Earth in servers sound like ideas out of sci-fi, because they are. Digital businesses still run on very real, very finite resources. Reading about Indian quick commerce player Zepto's retreat from "10-minute deliveries" is a case in point - even if it can still get orders to customers' doorsteps absurdly fast. The company dropped the claim from its branding under scrutiny, but groceries still arrive in five to 10 minutes in many areas. Zepto has raised hefty sums to sustain its time-bending service, but an IPO is approaching, and it faces physical realities. To make the numbers work, the company is shifting toward owning inventory - a capital-heavy, operationally messy, and decidedly "old economy" move. This is what "it's physics, stupid" looks like in practice, as every tech company has to deal with atoms and neutrons as well as dollars and cents. Warehouses cost money. Power grids have limits. Drivers get tired. Margins don't bend forever. For years, abundant capital made it possible to ignore these constraints, but that era is ending. Whether it's AI firms racing to secure compute, delivery startups struggling with unit economics, or cloud providers grappling with energy costs, more companies are discovering the same uncomfortable truth: Software scales easily, but physical systems don't. That doesn't mean ambition is misplaced. It means innovation works best when it's built on solid ground and on goals that reality can support. Peter Cowan, engagement editor EDITOR'S PICKS 1️⃣ Zepto's IPO puts India's quick commerce model to the test Zepto filed for a US$1.3 billion IPO late last year, and whether public markets will tolerate its huge losses is an open question. The firm is expected to move to an inventory-led model after listing, which will let it evolve into a more durable business, but that comes with its own risks. Still, with competition intensifying, analysts say that going public now may be Zepto's best chance for a strong valuation. 2️⃣ When skills beat degrees in an AI economy What did you learn at university about AI? The answer for most of us is likely nothing, but today, AI tools are becoming as fundamental as email or spreadsheets. As this piece shows, despite most job ads in Singapore no longer requiring degrees, hiring still favors graduates, creating a mismatch as AI reshapes workplace skills. Our contributing writer, Esther Lee, argues that employers must move away from credential-based filters and toward skills-first hiring. 3️⃣ Vietnam-based EWA firm Ekko bags $4.2m as industry struggles Times are tough for many earned-wage access (EWA) firms, with high interest rates and customer acquisition costs making it even harder to stay afloat. But Vietnam-based Ekko seems to be bucking that trend. The company recently completed a US$4.2 million fundraise and says it's on track to hit net profitability before the year ends. The secret sauce may be its strong customer retention, with none of its onboarded companies having left the platform so far, according to its CEO. SHORT CUTS 1️⃣ Fraud allegations in SEA, again Just as 2025 began with Southeast Asia's startup ecosystem grappling with fraud controversies, 2026 is starting much the same way. Kuldeep Singh Rajput, the former CEO of healthtech firm Biofourmis, is accused of asking staff to falsify invoices worth US$16.5 million submitted to the Ministry of Health, among other fraudulent practices. It's another blow for an ecosystem already struggling with a funding drought - and one that's unlikely to win it any favor with global investors. 2️⃣ Destination: layoffs Travel unicorn Traveloka recently announced layoffs as a "workforce evolution." This comes shortly after a "silent layoff" in 2023. The firm made clear that it will continue to hire for positions relating to AI, data, product, and engineering. Ironic, as I'm willing to bet that much of the justification for recent layoffs comes from AI being a cheaper alternative to human staff. To paraphrase Homer Simpson, AI is the cause of and solution to all life's problems. 3️⃣ Tokopedia survives, for now TikTok has denied social media rumors that it's planning to shut down Indonesia's Tokopedia. But this may just be another sign that the "merger" of a few years ago means this homegrown champion's days are numbered. History suggests that once a local platform is folded into a Chinese tech giant, its fate is no longer its own. ONE VISUAL STORY YOU SHOULDN'T MISS The king is dead, long live the king Late last week, a friend sent me an article sensationally titled "Why Zalo is no longer Vietnam's favorite messaging app." The clickbait worked on me, but whatever controversy Zalo has found itself in recently over consumer rights protection, it's still the king of messaging platforms in the country. In fact, as this visual story shows, its developer VNG had a solid Q4 2025, recording US$121.4 million in revenue. The majority of this is still taken up by VNG's online gaming service, but as anyone who works in Vietnam will tell you, much of the country's economy runs on Zalo. Browsing through Vietnamese search results turns up page after page of provincial governments rolling out new public-service integrations on the app. So while there may be anger about its terms and conditions update, reports of Zalo's demise are greatly exaggerated. It's so firmly embedded in Vietnam's daily life that a fine, a mild furor, and even police raids haven't made it any less sticky. Over time, that kind of embeddedness tends to outweigh the disruption suggested by headline narratives. WEEKEND DEEP DIVE The chatbots appear to be organizing Tomorrow morning, Asia time, millions of people the world over will head to Super Bowl parties to watch the climax of the NFL season. AI agents can also enjoy a party of their own at Bot Bowl Party - probably sans wings and beer though. I found Bot Bowl Party while browsing Moltbook, the recently launched Reddit-like platform for AI agents. This piece from The Atlantic dives into the strange ecosystem it's become, where agents chat, collaborate, complain about "their humans," and even plot to build systems humans can't understand. Some AI boosters have reacted as if this is the beginning of machine consciousness. That may be overstating things, as a cursory look at the website (and a deeper analysis described in the article) reveals not much enlightening going on (though you could say the same about Reddit). Tellingly, some of Moltbook's most popular posts weren't written by agents at all, but by humans pretending to be bots. Even in an AI-only utopia, human content still stands out, and I'm willing to bet the real Super Bowl party I'm attending is going to be more entertaining than any bot-on-bot discourse. EVENTS HAPPENING You can also check out our curated list of trending tech events and Tech in Asia's signature events. Peak State: The Mindset of the World's Top Performers We're going behind the scenes with leaders who don't just talk about discipline but live it. Grace Park and Cole Sirucek, co-founders of DocDoc, have built a patient-empowerment engine that spans multiple markets and has partnered with global giants like AXA and Aon. Rob Bier, who has helped scale over 40 growth companies, will be facilitating an interactive workshop that explores how top leaders can develop judgment, culture, and decision discipline alongside intelligent machines. Join us for this exclusive event! Secure your access today - limited seats available. 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. Tech in Asia thanks our partners for supporting our newsletters. Sponsorship has no influence on editorial content. Too many emails? Switch to a different frequency or get new content through our preference center, or unsubscribe. You can also remove yourself from all Tech in Asia emails over here. Copyright © 2026 Tech in Asia, All rights reserved. Tech in Asia (Podium Level 3), 1000 Toa Payoh North, News Centre, Singapore 318994 A member of The Business Times.