Singapore-based Capital C Corporation, which provides financial services to the underserved across Southeast Asia, has secured an undisclosed amount in a pre-series A funding round from Phillip Private Equity, Azure Capital, and high-net-worth individuals.

The strategic raise will help Capital C expand into new Southeast Asian markets and develop a super app.

Also Read: How digital banking is driving financial inclusion in SEA

Capital C provides personal payday loans, business loans, partnerships, and acquisitions advisory through digital micro-financing and strategic planning. Its streamlined loan application process connects customers to rapid, hassle-free disbursement and personalised credit options.

It is now developing new debit and credit card solutions for those new to credit or seeking alternatives to traditional options.

The fintech firm is also working on a super app to expand access to credit facilities for individuals and small businesses, including the unbanked, underbanked, and those with limited credit histories. It will also host digital microfinancing services, including personal and business loans, ‘buy now, pay later’ solutions, and hire products.

By doing so, users will have access to a full suite of financial services tailored to meet personal and business needs, reinforcing Capital C’s commitment to expanding beyond just a loan provider.

Also Read: Bridging the financial inclusion gap in Asia: The role of fintech

The World Bank estimates that 80 per cent of people in Indonesia, the Philippines, and Vietnam, and 30 per cent in Malaysia and Thailand, remain unbanked despite high internet penetration rates. In Singapore, though only 2 per cent of the population is unbanked, 38 per cent are considered underserved, underscoring the ongoing need for inclusive financial solutions even in more developed economies.

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Today, Google, Temasek, and Bain & Company’s collaborative effort unveiled the ninth edition of the e-Conomy SEA report, which focuses on the digital economy’s profitability.

This report showcases the impressive strides made by key players in the Southeast Asian (SEA) region towards profitability. This has been achieved through tighter commissions, targeted incentives, and the development of new revenue streams, leading to a remarkable 2.5 times increase in profits over the past two years.

The digital economy’s profitability has skyrocketed from US$4 billion in 2022 to an impressive US$11 billion in 2024. The report predicts the digital economy will reach a Gross Merchandise Value (GMV) of US$263 billion in 2024, marking a 15 per cent increase over the previous year. Revenues are also projected to reach US$89 billion in 2024, indicating a 14 per cent growth.

This data suggests that the digital economy in SEA can simultaneously achieve profitability and growth. The report further explores six digital sectors, offers insights into the current state and future prospects of technology funding in the region, and delves into the crucial factors necessary for fostering inclusive growth.

Despite a generally reserved approach from investors, there is a noticeable lean towards emerging industries, with approximately half of the investments going towards them.

Also Read: Bukalapak responds to TEMU acquisition report following recent share price increase

Although the exit environment still poses difficulties, early-stage companies in SEA have demonstrated impressive strides towards achieving profitability. There’s also a rising emphasis on fostering cross-border collaboration in exchange platforms and improving Initial Public Offering (IPO) regulations to enhance overall market conditions.

Last year’s report identified four key factors to revitalise the funding landscape: realistic entry valuations, established monetisation models, a clear route to profitability, and reliable exit strategies. The first three have been accomplished; however, developing dependable exit strategies remains a work in progress as market conditions present challenges.

Popular sectors such as e-commerce, poised to reach US$159 billion GMV by 2024, are now driven primarily by existing customers, who account for up to 70 per cent of expansion. This is a departure from past years when first-time shoppers drove growth.

The transport sector has surpassed pre-COVID-19 levels, with revenue projected to grow by 36 per cent YoY to US$1.5 billion, driven by rebounding demand and pricing. In comparison, GMV is expected to increase by 18 per cent to US$9 billion.

With the increasing popularity of AI

The SEA region is rapidly becoming a global leader in Artificial Intelligence (AI) innovation and adoption. The region’s strategic investments in AI infrastructure have fostered a vibrant ecosystem of startups, developers, and tech giants, positioning SEA to harness AI’s transformative potential across numerous sectors.

Also Read: Report: 46% of Indonesian businesses unprepared for AI-generated fraud despite risk knowledge

This growth is evident in the substantial US$30 billion worth of AI infrastructure investments the region attracted in the first half of 2024. Additionally, there is an increasing consumer interest in exploring and adopting AI solutions with searches for AI growing by 11 times in just four years.

According to the report, with its young and growing population, coupled with high rates of digital literacy and smartphone penetration, SEA provides a large and receptive market for AI-powered products and services, from travel planners to fraud detection.

As a driving value for the region’s digital economy through sector-specific and broader business use cases, pro-innovation policies that support AI growth and governance will help create more opportunities in the digital economy, it concluded.

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Image Credit: © rawpixel, 123RF Free Images

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Climate tech venture builder Wavemaker Impact has launched Numat, a new venture focused on transforming bamboo processing with sustainable practices.

The VC firm has also infused US$525,000 into the Philippines-based firm.

Bamboo has an enormous potential for reducing carbon emissions—it absorbs around 4.6 tons of CO2 for every ton harvested, making it a powerful tool against climate change.

Also Read: Cutting carbon at the socket: measurable.energy’s smart solution to plug power waste

Founded by CEO Mark Sebastian, Numat (short for ‘New Material’) aims to transform raw bamboo into sustainable products. It runs mobile bamboo processing units that convert bamboo poles at the harvest site into various pre-processed formats for processors worldwide.

Since its inception two months ago, Numat has delivered its first three orders of bamboo poles, totaling 1,260 Tinik and Asper varieties. By the close of 2024, it will also complete its first deliveries of 12,500 rough slats to a local off-taker and the first batch of fully treated and finished slates to an international off-taker.

The startup has the capacity to enable the replanting of 5,000 new bamboo seedlings weekly to advance to sustainable growth and development of bamboo plantations across the region.

The climate tech venture also runs a BambooPreneur Program, a partnership model for landowners that allows them to join Numat through a franchise-style system. This program provides landowners with everything they need to run their own bamboo processing operations using Numat’s BambPro System.

Also Read: Embracing sustainability: A circular design perspective on e-waste

Wavemaker Impact partners with experienced entrepreneurs to launch sustainability startups. The goal is to reduce 10 per cent of the global carbon budget by 2035. Each startup that it builds is a ‘100×100’ company, with the potential to decrease 100 million metric tons of CO2e and generate US$100 million in revenue per year.

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Southeast Asian startups raised US$197 million in funding across 29 rounds in October 2024, which is 61.5 per cent higher than last month but a steep 74 per cent decline from the same month the previous year, according to Tracxn.

In October this year, the region reported 13 seed-stage and early-stage funding rounds each, followed by three late-stage rounds.

Also Read: Filipino consumer fintech startup Salmon nets US$20M debt financing

Genesia Ventures and AC Ventures were the most active VCs.

Filipino consumer fintech startup Salmon topped the funding chart with US$30 million funding, followed by Broom (US$25 million), Chickin (US$20 million), and Sunbird Bio (US$14 million).

Check the infographic below for more insights:

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The Z Label, a tech-centric venture-building group based in Hong Kong, has raised US$11.4 million in funding led by Beyond Ventures.

The funds will be allocated to both in-house product development and co-incubating with established groups and entrepreneurs across various domains.

Inspired by successful US-based venture-building groups like Atomic Labs and CoLab, The Z Label integrates front-line technologies—including artificial intelligence (AI), big data, life and health sciences, spatial computing, and blockchain—into its products.

The group collaborates with corporate partners, supply chains, universities, and distribution channels across Hong Kong to accelerate early product-market fit and achieve commercial growth.

Also Read: HKSTP’s Derek Chim on the four skills required for startups to thrive in Hong Kong

“We believe that prioritising cutting-edge technology in our ventures unlocks new growth possibilities,” said Ruby Cheng, co-founder of The Z Label. “Our model enables brands to capitalise on emerging opportunities through an agile ecosystem enriched with capital, resources, talent, and a global network.”

“Gen Z has an inherent technological savvy and gravitates toward value-driven choices like sustainability and community engagement. They need a platform like The Z Label to thrive—we are simply igniting their potential,” said Rebecca Leung, co-founder of The Z Label.

The Z Label invites serial founders, creators, engineers, technologists, partners, and investors to join its vibrant ecosystem and co-create innovative products for the next generation.

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Image Credit: 123RF.

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