Southeast Asia Tech Startups See 59% Funding Drop in Jan-Sept 2024, Report Finds

Southeast Asia’s technology startup sector experienced a significant downturn in funding during the first nine months of 2024, plunging 59% compared to the same period last year, a report released by Tracxn revealed.

The report highlighted that Southeast Asian (SEA) tech startups secured a total of $2.3 billion in funding in the first three quarters of 2024, a stark decline from the $5.7 billion raised during the corresponding period in 2023. This downturn marks an 80% drop from the $11.6 billion raised in the first nine months of 2022.

Tracxn attributed the decline to a combination of a global funding winter, geopolitical tensions, and broader economic challenges impacting investor confidence.

Early-stage investments fell by 30% to $1.2 billion, while late-stage funding plummeted 79% to $721 million. Seed-stage funding also saw a 39% decrease, totaling $341 million compared to $561 million a year earlier.

Only two funding rounds exceeding $100 million were recorded in the first nine months of 2024, a sharp decrease from nine such rounds in the same period last year. Notable deals included Ascend Money raising $195 million in a Series D round from Krungsri Finnovate and ANEXT Bank securing $148 million from Ant Group.

Despite the funding challenges, the Fintech, Enterprise Applications, and Retail sectors remained the top performers. Fintech startups garnered $1.34 billion, down 11% from 2023, while Enterprise Applications raised $606 million, a 30% decline. Retail funding plunged 91% to $247 million.

Singapore maintained its lead in city-wise funding, attracting $1.4 billion for its tech startups, followed by Jakarta and Bangkok with $313 million and $265 million respectively. Major investors included East Ventures, 500 Global, and Wavemaker Partners.

The ecosystem also saw a stable number of acquisitions, with 58 deals in 2024, including Singlife’s acquisition by Sumitomo Life at a valuation of $3.5bn and PropertyGuru’s $1.1 billion purchase by EQT. Additionally, four initial public offerings (IPOs) were launched in 2024, compared to ten in 2023.

Despite the downturn, Tracxn noted that SEA’s tech startup landscape has raised over $85 billion to date and is home to 44 active unicorns, indicating potential for future growth.



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