Want to tackle climate change from home? Take a look in your cupboard. Where are you buying your products from and how are they produced?

It is hard to reimagine our supply chains today as the average consumer is spoilt for choice when it comes to their shopping habits. Taking a closer look at our consumption habits means being conscious about buying behaviour and understanding the socio-economic and environmental impact of the products we consume.

Let’s take tea as our example which is almost a staple in every household. In late Autumn many plants around us are beginning their descent for Winter but tea leaves are still shining bright. Tea leaves aka Cameillia Sinensis are renowned for their glossy beauty and resilience. The cultivation and distribution of the second most loved drink in the world offers an interesting use case for blockchain technology.

The journey of tea

Tea cultivation began in China around 350 CE. In 780 CE, Lu Yu published one of the first books about tea, detailing tea leaf shapes and ceremonies. By the early twelfth century, merchants had introduced tea to the Muslim world, where it was consumed in place of wine and other forbidden stimulants. It would take almost another 500 years for tea to become a global powerhouse. There is a message here about never giving up but this is not the focus of our article today.

The colonial impact and tea’s global spread

Although a lot of our colonised past is tainted with invasion, injustice and systemic racism, the awareness of many global plants and products must be attributed to this time also. In the nineteenth century, the British, addicted to tea, began cultivating native varieties in India, relying on indentured Central Indian labourers. By the late 1880s, British imports of tea from India and Ceylon surpassed those from China, embedding tea deeply into British culture and identity.

Using blockchain to track sustainable consumption

Eco-conscious consumers today are fed up with brands that over-promise in regard to their green objectives. Greenwashing, where companies falsely claim to be environmentally friendly, is still commonplace but as consumers have more places to vent online, brands need to act ethically to avoid new levels of backlash.

The demand for transparency when it comes to production and distribution is surging. Blockchain technology offers a new means to verify and validate the sustainability of tea production and consumption, providing transparency from farm to cup.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

By integrating Internet of Things (IoT) sensors in the supply chain, data on energy consumption, water usage, and carbon emissions can be recorded on the blockchain. This data is transparent and tamper-proof, allowing consumers to trust the sustainability claims of their favourite tea brands.

Ensuring ethical sourcing

Blockchain can track tea leaves from their origin in fields to the final product. This traceability ensures that tea is sourced ethically, fair wages are paid, and sustainable farming practices are adhered to. Consumers can scan a QR code on their tea packaging to see the entire journey of their tea, guaranteeing its authenticity and ethical production.

Supply chain transparency

Enhancing supply chain efficiency blockchain technology improves the efficiency of tea supply chains by reducing paperwork, lowering costs, and speeding up transactions. Smart contracts automate payments and agreements, ensuring that farmers receive timely payments and reducing the risk of fraud.

This increased efficiency can lower the cost of tea production, benefiting both producers and consumers. Morpheus Network leverages technology to optimise and automate supply chains. By providing end-to-end visibility and ensuring compliance with regulatory requirements, they can help businesses track their products transparently from origin to destination.

Supporting small farmers

Blockchain can also facilitate financial inclusion for small tea farmers. ReFi DAO focuses on regenerative finance, aiming to build financial systems that prioritise environmental sustainability and social equity. By integrating blockchain technology, ReFi DAO creates transparent and accountable financial ecosystems that support sustainable agricultural practices and fair trade, benefiting small tea farmers and the environment.

Furthermore, Decentralised finance (DeFi) platforms can offer microloans to farmers, using their blockchain transaction history as a form of credit scoring. This access to capital allows farmers to invest in better farming practices, increasing their yield and income.

EthicHub connects small farmers with global investors through a blockchain-based crowdlending platform. By providing micro-loans and ensuring fair interest rates, EthicHub empowers farmers to improve their agricultural practices and achieve financial stability. Their successful model in the coffee industry demonstrates the potential for similar applications in the tea sector.

Blockchain technology has the potential to revolutionise the tea industry by ensuring ethical sourcing, combating greenwashing, enhancing supply chain efficiency, and supporting small farmers. Embracing this technology can build trust with consumers, enhance environmental credibility, and contribute to a more sustainable future for the world’s second-most loved beverage.

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This article was first published on June 25, 2024

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Innovation in the financial sector has always pushed boundaries, with major leaps of advancements in the integration of technology and services. Some of such notable innovations that have vastly improved financial efficiencies include internet banking displaced paper statements and servicing at bank branches, and in most recent years, tokenised payments through mobile phones that displaced the need for physical cards.

One of the most significant shifts in the past decade has been the rise of ‘Open Banking’, where banks and financial firms share consumer data with third parties through APIs. This proliferation of Open Banking across major financial cities began with the European Union (EU) introducing the world’s first Open Banking regulations in 2015, followed closely by a ruling for the nine biggest UK banks to allow licensed start-ups direct access to their data in 2016.

Since then, other major financial hubs including Hong Kong, Japan, Australia and Singapore successively introduced similar regulations, resulting in a global boom of fintech activities that dramatically disrupted traditional financial systems, benefiting consumers and businesses alike.

Today, fintechs are set to continue displacing traditional banks. In 2021, 41 per cent of retail consumers surveyed by McKinsey said they planned to increase their fintech product exposure. In 2022, 35 per cent of the small and medium-sized enterprises (SMEs) in the United States considered using fintechs for lending, better pricing, and integration with their existing platforms while in Asia, 20 per cent of SMEs leveraged fintechs for payments and lending.

According to McKinsey’s analysis, fintechs accounted for five per cent (or US$150 billion to US$205 billion) of the global banking sector’s net revenue in 2022.  They estimate this share could increase to more than US$400 billion by 2028, representing a 15 per cent annual growth rate of fintech revenue between 2022 and 2028, three times the overall banking industry’s growth rate of roughly six per cent.

To capitalise on this demand, fintechs will need to rapidly launch relevant products and services to stay ahead of competition. However, ensuring that such products remain compliant and efficient operationally requires acute expertise and significant resources.

The details: The future of fintech with ‘as-a-service’ models

This marks the start of an accelerated adoption of ‘as-a-service’ models – an approach that allows businesses to integrate solutions without the complexity of building from the ground up. By tapping into established financial infrastructures, fintechs can create and launch customer-first products and services faster and at a fraction of the time and cost, democratising access to regulatory controls, technology and applications.

Also Read: The future of payments in SEA: Regional cooperation remains critical in pushing for progress

The initiation of ‘as-a-service’ models in the financial industry started with BaaS (or Banking-as-a-Service). Following the growth of Open Banking, fintechs were able to tap into APIs to access foundational banking products such as virtual bank accounts and local networks for collections and payments. Soon, other new constructs started getting into the market including Cards-as-a-Service, Payments-as-a-Service etc to facilitate quicker access to myriad payment platforms.

DCS Innov is set to revolutionise this space with InstaWally, one of the world’s first ‘Wallet-as-a-Service’ (WaaS) solutions that offers access to an instant mobile wallet app with embedded financial services.  As a start-up spun out from a 50-year-old financial institution that issued the first charge cards in Singapore, it leverages a set of strong core advantages that optimises fintech enablement.

InstaWally provides a mobile-first customer engagement platform, intersecting brand loyalty with payments. Besides saving on development time and resources, it further removes the burden on regulatory licences, end user onboarding and operations and maintenance of payment systems. It delivers a mobile app designed with a user interface that is constantly optimised against industry benchmarks in terms of payments experience and services.

As such, fintechs and businesses can channel limited resources towards scaling their core services and improving customer engagement while generating new revenue streams from payment solutions and increased loyalty.

Without the prerequisite of payments expertise and yet be able to incorporate related products and services into their customer platforms, businesses across industries, from retail and travel to tech and web3, will be able to easily adopt such ‘as-a-service’ models making the future of payments more inclusive, flexible, and accessible across the globe.

Also Read: How local payments are unlocking digital commerce’s potential in Latin America, Africa, and India

A future-ready, global payment ecosystem

As digital payments become the norm, businesses must be equipped to meet changing consumer preferences and expectations. More importantly, payments must also be connected globally as businesses scale and expand beyond their own shores.

Payments-as-a-service is the key to empowering fintechs and non-financial companies to access such services to complement or complete their overall customer journeys. By leveraging this model, companies can innovate faster, offer more customised payment services, and unlock the full potential of the digital economy.

The future of payments is not just about providing access—it’s about empowerment. With the right infrastructure, businesses can meet the demands of the digital-first consumer while fuelling their own growth. The message is clear: any brand is now empowered to build the next super app with financial services. Be ready to ‘bank’ with your favourite brand, very soon.

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South Korea’s semiconductor startup industry is experiencing significant growth, bolstered by substantial government investments and a robust industrial foundation.

The country holds a dominant position in the global semiconductor market, accounting for 60.5 per cent of the memory semiconductor segment, with a 70.5 per cent share in DRAM and 52.6 per cent in NAND as of 2022. 

In May 2024, President Yoon Suk-yeol announced a comprehensive support programme worth 26 trillion Korean won (approximately US$19.1 billion), encompassing financial aid, infrastructure development, research and development, and support for small and medium-sized enterprises (SMEs) within the semiconductor sector. 

This initiative includes the creation of a “semiconductor ecosystem fund” valued at 1 trillion Korean won (US$734 million) to support semiconductor companies and SMEs linked to the industry.

Additionally, the government is establishing a “mega chip cluster” near Seoul, which aims to be the world’s largest semiconductor manufacturing complex and is projected to generate millions of jobs. 

To further enhance its semiconductor capabilities, the South Korean government plans to invest US$1.66 billion over the next five years to strengthen the competitiveness of advanced industries, including semiconductors, rechargeable batteries, and biotechnology. 

These strategic investments and initiatives underscore South Korea’s commitment to fostering innovation and maintaining its leadership in the global semiconductor industry.

Also Read: Singapore’s semiconductor stars: A look at key players and startups

Here is the list of trailblazers in South Korea’s semiconductor sector.

SemiFive

SemiFive designs and develops SoC with a RISC-V. The product offerings include RISC-V Core IP and custom SoC.

Founding year: 2019
Total investments raised since inception: US$147 million
Institutional investors: Korea Investment Holdings, BonAngels Venture Partners, LB Investment, Mirae Asset, Pavilion Capital Partners, Gamechanger, UTC Investment, Intops Investment, and SBVA.

Auto-L

Auto-L manufactures lidar systems for self-driving cars and robots. Its product portfolio includes self-driving car lidar sensors and autonomous mobile robot lidar sensors.

Founding year: 2021
Total investments raised since inception: US$81.5 million
Institutional investors: ZER01NE, Hyundai Wia, HANA Micron, Autonomous.ai, Schmidt Futures, L&S Venture Capital, IK Partners, Seoul Investment Partners, POSCO Capital, and Schmidt.

Panmnesia

Panmnesia develops cache coherent interconnect (CCI) technologies using Compute Express Link (CXL). It has developed a rack-scale resource disaggregation solution called PanCluster for high-performance data centres and HPC.

Founding year: 2022
Total investments raised since inception: US$72.5 million
Institutional investors: InterVest, Korea Investment Holdings, KB Investment, WOORI Venture Partners, BSK Investment, Murex Partners, Daesung Startup Investment, Daekyo Investment, GNTech Venture Capital, SL Investment, Timeworks Investment, Quantum Ventures Korea, Yuanta Investment, T S Investment, Nvester, Smile Gate Investment, and Mirae Science and Technology Holdings.

MangoBoost

MangoBoost provides an AI-based DPU to accelerate data centre workloads. Its DPU enables data centres, supporting application performance and processing time.

Founding year: 2022
Total investments raised since inception: US$65.5 million
Institutional investors: IMM Investment, Shinhan Venture Investment, Premier Partners,
KB Investment, IM Capital Partners, Korea Development Bank Europe, Stonebridge Capital, DSC Investment, Must Asset Management, and IM Capital.

SAPEON

SAPEON provides AI processors for data processing. Its product portfolio includes AI chips, AI servers, AI cards, and an integrated hardware and software solution for cloud AI as a service in the data centre. The firm offers solutions for object detection, 5G edge cloud operating, indoor navigation, and image quality enhancement.

Founding year: 2022
Total investments raised since inception: US$45 million
Institutional investors: Ascent Equity Partners, DBCS, Hana Financial Group, Mirae Asset Venture, We Ventures, and E1.

bitsensing

bitsensing provides radar solutions for various industries. The platform offers features like vehicle monitoring, speed detection, traffic flow information, and sleep monitoring systems. It caters to automotive, smart cities traffic management, and healthcare applications.

Founding year: 2018
Total investments raised since inception: US$42 million
Institutional investors: HL Mando, Korean Development Bank, Industrial Bank of Korea,
Woori Financial Group, LIFE Asset Management, Samchully Group, ARGES, Mando Corporation, LB Investment, SJ Investment Partners, FuturePlay, Hansae, SB Partners, SparkLabs, Korea Science and Technology Holdings, Orange Fab, RISE, and Plug and Play APAC.

FADU

FADU designs and develops memory and storage architectures. Its offerings include FADU Annapurna (SSD controller and FPGA-based AIC), FADU Bravo (low-power enterprise SSD), and FADU Alpha (high-performance consumer SSD). The company also aims to develop FADU Charlie (high-performance enterprise SSD) and FADU Delta (hyper-performance enterprise SSD) with PCIe 0.0×4 and 8 interfacing. The products have applications in the semiconductors and electronics industry.

Also Read: From keypads to chips: How Polymatech advances semiconductors with sustainability at the core

Founding year: 2015
Total investments raised since inception: US$32 million
Institutional investors: Forest Partners, IBK Capital, Capstone Partners, Company K Partners, Ncore Ventures, and Positive Investment.

IVWorks

Intellectual Value Works (IVWorks) develops wide bandgap epitaxial wafer products for semiconductor fabrication. Its products include GaN FET Epiwafer and AlN Epiwafer which can be used to produce high-performance wireless and photonic integrated circuits. It has applications in power conversion ICs, 5G wireless networks, server power supply, and wireless power transfer.

Founding year: 2011
Total investments raised since inception: US$24.5 million
Institutional investors: Wonik, Wooshin Venture Investment, Hyundai Venture Investment,
DT&Investment, Korea Development Bank Europe, KB Investment, Samsung Venture Investment, Songhyun Investment, Magellan Technology Investment, Hi Investment, Enlight Ventures, and SOORIM venture capital.

Smart Radar System

Smart Radar System offers AI-enabled radar solutions for automotive. It develops various products like Retina for 4D image radar for automotive & industrial applications, IRISv offers real-time monitoring & detection solutions for traffic analysis, etc.

Founding year: 2017
Total investments raised since inception: US$24 million
Institutional investors: Korea Investment Holdings, Hemi Ventures, SPARX Group,
NEXTY Electronics, GU Equity Partners, BSK Investment, Kakao Ventures, Hyundai-invest.com, Murex Partners, and Hyundai Investment Partners.

CK EM Solution

CK EM Solution’s platform offers electrical and electronic materials based on TIM and EMI/EMC

Founding year: 2021
Total investments raised since inception: US$10 million
Institutional investors: Pebbles Investment and IBK Capital.

Power Cube Semi

Power Cube Semi designs and manufactures EV charging systems, MOSFET, and other semiconductor products.

Founding year: 2013
Total investments raised since inception: US$5.8 million
Institutional investors: Hana Ventures, Albatross Investment, Nautic Investment, Bilanx, and ANDA Asia Ventures.

SOFTPV

SOFTPV provides solutions for solar and electrode cells. Its product generates power from sunlight and general light. The firm’s other products include a soft form to boost the performance of the solar cell, soft goods, multi-functional modules, and others.

Founding year: 2017
Total investments raised since inception: US$3 million
Institutional investor: SBVA

BOS Semiconductors

BOS provides semiconductor testing, fabrication, and packaging services.

Also Read: Driving semiconductor innovation: AMD’s vision for AI and sustainability in Singapore

Founding year: 2022
Total investments raised since inception: US$1.5 million
Institutional investors: ZER01NE and Hyundai Motor Company.

DeeDiim Sensors

DeeDiim is a developer of a machine vision-based sensor for surface inspection. The product offered is Surf.Finder, an illumination system that provides a solution to detect surface defects. It can be used to improve product quality and lower manufacturing costs.

Founding year: 2017
Total investments raised since inception: US$1.2 million
Institutional investors: Laguna Investment and Lighthouse Combined Investment.

HICS Company

HICS Company offers real-time nano accuracy measurement and inspection for Hologram integration. It has developed a technology that uses light nanoscale NDM (Depth Measurement Nano), where light can be used as a ruler to measure the surface shape of the object and the internal light physical characteristics accurately to the nanometer. This technology has applications in process checks that require accurate nanometer measurements, such as semiconductors, OLED boards, smartphone microlens, etc., in the precision electronic components market.

Founding year: 2014
Total investments raised since inception: US$892,500
Institutional investors: TwoTowers Capital, Daekyo Investment, Seoul Investment Partners, MassChallenge, ActnerLab, SJ Investment Partners, and Enlight Ventures.

Blue Dot

It provides AI-based semiconductor IPs. It features 4K/8K resolution and high-definition video encoder solutions that support 5G networks for live social video, cloud gaming, immersive video VR/AR, and OTT/VOD.

Founding year: 2019
Total investments raised since inception: Undisclosed
Institutional investors: NAVER D2 Startup Factory, KB Investment, Smile Gate Investment, and BluePoint Partners.

Lake Led

Lake Led provides LED material-based technology for the petrochemical and electronics industries. It offers LED materials like metal-organic sources, precursors (trimethyl gallium, indium, and aluminium), triethyl gallium and bis-cyclopentadienyl magnesium for manufacturing epi-wafers of the LED chip manufacturing process, and MOCVD precursors.

Founding year: 2010
Total investments raised since inception: Undisclosed
Institutional investors: DSC Investment, Stonebridge Capital, NHN Investment, Hyundai Venture Investment, Premier Partners, Korea Investment Holdings, and We Ventures.

AiM Future

AiM Future provides edge AI and vision solutions. It accelerates the transition from centralized cloud-native AI to distributed intelligent edge solutions. The platform offers software, AI system integration services, and provides solutions for AI.

Founding year: 2020
Total investments raised since inception: Undisclosed
Institutional investors: L&S Venture Capital, Hi Investment, Daedeok Venture Partners, KB Investment, and WE Ventures.

HiDeep

HiDeep is a developer of 3D touch technology, which helps the touch screen to detect the amount of force exerted by the user on the screen and react accordingly. The company is also the 3D technology provider for Huawei’s Mate S phone.

Founding year: 2010
Total investments raised since inception: Undisclosed
Institutional investors: SkyLake Investment, Walden International, Big Basin Capital, BNK Venture Capital, and Celesta Capital.

RNSLab

RNSLab has developed low-power, chip-based carbon dioxide sensors. Its chips have built-in wireless connectivity, making retrofitting existing appliances easy. The sensors use MEMS technology to enable on-chip carbon dioxide detection and add multiple gas detection on the same platform.

Also Read: SEA’s role in the global semiconductor supply chain is poised to strengthen: GlobalFoundries’s Siah Soh Yun

Founding year: 2014
Total investments raised since inception: Undisclosed
Institutional investors: Digital Entertainment Ventures and Daedeok Venture Partners

Ateco

It provides a memory test handler, automation equipment, dispenser, and manipulators

Founding year: 2012
Total investments raised since inception: Undisclosed
Institutional investor: AEM.

EXSEN

EXSEN is a manufacturer of carbon dioxide gas sensors.

Founding year: 2012
Total investments raised since inception: Undisclosed
Institutional investors: ActnerLab and Tech Incubator Program for Startup.

PiQuant

PiQuant develops customised sensor modules or devices that can measure the components that users want to detect based on spectroscopy. Its offerings include customised sensor modules for smart home, smart farm, and smart factory applications; sensor solutions to improve SNR i.e. distinguish and remove the noise waves from the continuous wave and amplify it; PiScanner/LiquiScan- a mobile IoT liquid scanner which detects and measures the dose of lead, mercury, and artificial dyes from all kinds of liquid products, especially melamine from milk for babies; and MonAir- a mobile air quality measuring device.

Founding year: 2015
Total investments raised since inception: Undisclosed
Institutional investors: SparkLabs, Orange Fab Asia, and KIC Europe.

Global Bridge

Global Bridge provides wireless IoT chips and devices offering transmitting and communication solutions. Its products include Guardian RF SoC, having PAN, LAN & and based connectivity solutions; Sky Bridge (wireless CDMA transmitter & receiver solution for video & data transmission); Sky Link (wireless CDMA transmitter & receiver solution using ISM band frequency range); and System Configurations with binary CDMA technology. Has use cases in security, defense, healthcare, entertainment, fitness and other sectors.

Founding year: 2016
Total investments raised since inception: Undisclosed
Institutional investor: SparkLabs.

Sensor Topia

Sensortopia provides a sensor for sensing rain on the windshield of vehicles. The startup leverages the optical interference blocking structure of the light source for detecting and maximizing the rain-sensing efficiency. Its sensor is installed on the upper part of the windshield and controls the automatic wiper operation. It also offers a PCB pattern coil.

Founding year: 2017
Total investments raised since inception: Undisclosed
Institutional investor: ActnerLab.

SDOptics

SDOptics provides a 3D microscope, medical camera and display vision sensor.

Founding year: 2010
Total investments raised since inception: Undisclosed
Institutional investor: BNK Venture Capital.

BlueTech Korea

BlueTech offers component development, repair and maintenance services for the semiconductor industry.

Founding year: 2016
Total investments raised since inception: Undisclosed
Institutional investor: The Gain.

RC Tech

HobbyPlus RC Tech Co., Ltd specialises in remote control surface vehicles. It offers a complete product line from 1:24 to 1:8 scale.

Founding year: 2019
Total investments raised since inception: Undisclosed
Institutional investor: ReVentures.

Neo Nanotech

Neo Nanotech is a manufacturer of microelectromechanical system-based biochips. It uses microfluidics, micro-injection moulding, and MEM technologies to develop biochips based on microstructured plastic. Neo Nanotech’s product portfolio includes chips for disease diagnosis, preprocessing biosamples, and synthesis of liposomes.

Founding year: 2016
Total investments raised since inception: Undisclosed
Institutional investor: Daedeok Venture Partners.

Medicentec

Medicentec provides microelectronic device manufacturing and sensor technology services.

Founding year: 2019
Total investments raised since inception: Undisclosed
Institutional investor: Mirae Science and Technology Holdings.

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Data credit: Tracxn.

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Asia isn’t just a continent; it’s a world of contrasts. With more than 4.6 billion people spread across diverse economies, cultures, and regulatory environments, it’s a region bursting with opportunity—and complexity. For startup founders, Asia’s ecosystem is both a blessing and a challenge: the potential to tap into huge markets comes with the responsibility of understanding them.

In this guide, we’ll explore the unique strengths and challenges of Asia’s top startup hubs, offer advice on choosing the right location for your venture, and provide strategies for scaling across the region.

Understanding Asia’s startup landscape

Asia’s startup ecosystem can’t be painted with a single brushstroke. Each country offers distinct advantages that cater to specific industries and growth stages.

Singapore: A Launchpad for the region

Singapore has earned its reputation as Asia’s startup hub for good reason:

• Pro-business policies: With its low corporate taxes, ease of company registration, and robust intellectual property laws, Singapore makes it easy to start and scale.
• Access to funding: The government actively supports startups through grants and co-investment programs, while regional VCs flock to Singapore as a gateway to Southeast Asia.
• International connectivity: Singapore’s geographical position and global mindset make it an ideal base for startups aiming to scale across Asia.

However, the high cost of living and doing business can be prohibitive for early-stage startups without substantial funding.

India: The talent powerhouse

India’s strength lies in its vast pool of tech talent and growing digital economy:

• Affordable talent: India produces millions of engineers annually, providing startups with access to skilled professionals at competitive rates.
• Massive market: With over 1.4 billion people, India offers immense opportunities for B2C startups, particularly in sectors like fintech, e-commerce, and edutech.
• Startup ecosystem growth: Cities like Bangalore, Hyderabad, and Gurgaon are buzzing with innovation, incubators, and accelerator programs.

But founders should be prepared for challenges such as regulatory red tape and infrastructure gaps in some regions.

China: Scale and speed

China’s startup ecosystem is unparalleled in its speed of growth and access to funding:

• Unicorn factory: China produces more unicorns annually than any other country except the U.S.
• Tech ecosystem: With giants like Alibaba, Tencent, and Baidu leading the charge, China’s ecosystem thrives on innovation and rapid execution.
• Massive consumer market: Chinese consumers are tech-savvy and eager adopters of new products, making it a fertile ground for startups.

However, breaking into China’s market as a foreign founder can be daunting due to regulatory barriers and cultural differences.

Vietnam: The emerging contender

Vietnam is quickly becoming Southeast Asia’s rising star:

• Young, dynamic workforce: With 70 per cent of its population under 35, Vietnam offers a vibrant, tech-savvy talent pool.
• Affordable Costs: The low cost of living makes it an attractive base for startups looking to bootstrap.
• Government Support: Vietnam is investing heavily in its digital economy, with policies to encourage foreign startups.

While promising, Vietnam’s ecosystem is still maturing, and founders may face challenges in scaling beyond its borders.

Also Read: Why Southeast Asia’s locally owned adtech and martech industry will survive the recession

Choosing the right location for your startup

The decision of where to base your startup depends on three key factors: your industry, growth stage, and long-term goals.

Industry match

Each country in Asia has strengths in specific sectors. For example:

• Fintech: India, Singapore, and Hong Kong lead the way with strong regulatory frameworks and funding opportunities.
• E-commerce: Indonesia and China are prime markets due to their massive online consumer bases.
• Medtech: Japan and Singapore are strong hubs for medical technology due to their advanced healthcare infrastructure.

Growth stage

• Early-stage startups might benefit from lower-cost ecosystems like Vietnam or the Philippines, where they can stretch their budgets while testing ideas.
• Growth-stage startups looking to scale internationally might prefer Singapore or Hong Kong for their connectivity and investor networks.

Long-term goals

If you aim to build a globally recognised company, choose a hub with strong international ties. Singapore and China excel in this regard, while markets like Thailand might be better suited for regional dominance.

Strategies for scaling across Asia

Scaling across Asia is a complex but rewarding endeavour. Here’s how to do it effectively:

Start local, think regional

Even if your ultimate goal is to scale across Asia, begin by dominating one market. Establishing a strong foothold in a single country gives you the resources and credibility to expand.

Understand cultural nuances

Asia’s diversity means what works in one market might fail spectacularly in another. For example:

• In China, user experience often prioritises speed over aesthetics.
• In Japan, consumers value trust and reliability over price.

Tailor your approach to each market.

Leverage regional networks

Organisations like ASEAN and APAC-focused accelerators can provide introductions, funding, and mentorship. Partnering with local companies can also ease entry into new markets.

Also Read: Is Asia ready for programmatic job advertising?

Common challenges and how to overcome them

Regulatory complexities

Each country in Asia has its own set of regulations and navigating them can be overwhelming. Work with local advisors or consultants to ensure compliance.

Hiring talent

While Asia has a large talent pool, competition for top-tier professionals can be fierce. Offering remote work options or attractive perks can help you secure the best talent.

Funding gaps

While some countries have thriving VC ecosystems, others may require bootstrapping or exploring alternative funding options like government grants.

Success stories: Inspiration from Asian startups

Grab (Singapore)

What started as a taxi-booking app in Malaysia is now a Southeast Asian super app. Grab’s success lies in its ability to localise services for each market while maintaining a regional vision.

Byju’s (India)

India’s leading edutech platform leveraged the country’s digital transformation and hunger for affordable education. Its innovative content delivery methods now serve millions globally.

Tiki (Vietnam)

This e-commerce platform grew by focusing on local needs, such as cash-on-delivery payments, before scaling to compete with giants like Shopee and Lazada.

Building a startup that fits the ecosystem

Asia’s startup ecosystem is vast, vibrant, and full of opportunity, but success requires strategy. Founders must consider where their business fits best, how to leverage regional strengths, and how to scale in a culturally diverse market.

The journey is challenging but rewarding. For those who navigate it with insight and intention, Asia offers a launchpad not just for regional success, but for global impact.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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