Just three to four years ago, startup success in Southeast Asia was synonymous with aggressive expansion, sky-high burn rates, and a singular obsession with scale. ‘Growth at any cost’ was the prevailing mantra—fuelled by abundant capital, wide-open markets, and investor appetite for hypergrowth over sustainability.

Driven by FOMO, both foreign and domestic investors poured funds into startups, pushing valuations to unsustainable heights and giving rise to a wave of regional unicorns.

Then came COVID-19, which brought the global economy—and the startup boom—crashing to a halt. Hospitality and tourism, two of the most affected sectors, saw widespread closures and pivots. Startups were forced to reckon with reality, and the once-celebrated blitzscaling playbook lost its edge.

By the time recovery was underway, investor sentiment had fundamentally shifted. The days of funding loss-making ventures purely on potential were over. In this new landscape, profitability—and a clear path to it—became the litmus test for investment. Reckless capital deployment gave way to strategic restraint.

At RedDoorz, we were not immune to the shockwaves. But through grit, focus, and a willingness to adapt, we weathered the storm—and emerged stronger. In 2024, after years of sustained effort, we achieved our first year of positive adjusted earnings. This wasn’t luck. It was the result of deliberate choices and a mindset shift from chasing scale to building staying power.

Profit vs purpose: Can Southeast Asia’s startups strike a balance?

Startups have always been powered by vision: disrupting the status quo, empowering users, and bridging gaps in access and convenience. That sense of purpose is still critical—but in today’s environment, it must be anchored by financial discipline.

As interest rates surged and investor caution rose, the ‘growth at all costs’ philosophy lost its shine. For many founders, this meant going back to basics—focusing on core markets, doubling down on what worked, and shedding what didn’t.

At RedDoorz, we made bold yet necessary decisions to sharpen our focus. We doubled down on the high-potential, underserved markets of Indonesia and the Philippines—together accounting for 95 per cent of our revenue in 2023. At the same time, we exited slower-growth markets like Singapore and Vietnam, and divested KoolKost, our long-stay accommodation arm, selling it to Malaysia-based LiveIn earlier this year.

Also Read: 5 common mistakes startups make when building their brand identity (and how to fix them)

These were not easy choices, but they were purposeful. And they allowed us to simplify, concentrate our resources, and cross the critical threshold into profitability.

Choosing depth over breadth

In hospitality, a crowded and competitive sector, our edge lies in how deeply embedded we are in our core markets. Since 2015 in Indonesia and 2018 in the Philippines, we’ve built meaningful relationships with local hotel partners, strengthened our brand presence, and delivered real value through technology and customer loyalty.

Even with a tighter geographical footprint, we grew revenue by 14 per cent in 2024—nearly 20 per cent in local currency in our core markets alone. For 2025, we’re aiming for 30–40 per cent growth, with a revenue target of US$36M million.

We’re also evolving with our customers. Many of those who first stayed with us early in their careers now seek more premium experiences. We’re growing with them through our lifestyle brand Sans and villa offering Lavana.

The automation advantage

Over the past few years, we’ve invested heavily in automating repetitive processes. Tasks like customer support and room allocation are already handled without human input. We’re now expanding automation to include check-ins, checkouts, and payments.

This isn’t about replacing people—it’s about future-proofing our operations. In a low-margin industry like hospitality, automation isn’t just a nice-to-have; it’s a strategic imperative. It enables us to scale efficiently, improve margins, and deliver consistent quality at every touchpoint.

Also Read: 3 stages of marketing for your startup that can drive effective results

IPO? We’re playing the long game

We’ve been exploring a potential IPO since 2019, and while it remains on the table, we’re not in a rush. Our priority is building a profitable, resilient business that can thrive in any market cycle.

That said, we remain open to M&A opportunities—whether to re-enter past markets or expand into new ones. We’re also closely monitoring other regional IPOs. With several larger players ahead in the queue, patience and timing will be key.

The new era of Southeast Asia’s startup ecosystem

Southeast Asia is at a turning point. The region’s startup ecosystem is maturing, and with that maturity comes a new set of expectations: discipline, clarity, and a genuine path to profitability.

At RedDoorz, our evolution from breakneck growth to sustainable scale mirrors the broader transformation underway. We’ve learned that success doesn’t lie in chasing every opportunity—it lies in making the right choices, executing with precision, and staying focused on long-term value.

There’s no one-size-fits-all formula for building a great company in Southeast Asia. But one principle is clear: smart growth is sustainable growth. As the dust settles and a new era begins, the startups that can harmonise purpose with profit—and balance short-term agility with long-term vision—will not only endure but define the region’s next chapter of innovation.

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A new report from Velocity Ventures, titled Innovation & Deal Flow Report 1Q2025 [Travel Services], paints a vibrant picture of the global travel services industry, particularly emphasising the opportunities and trends relevant to Southeast Asia.

According to the report, the current travel services market displays “extremely optimistic growth potential”. Notably, data protection, space travel, and social commerce are key growth areas.

This optimism is further underscored by the top three highest compound annual growth rate (CAGR) areas: data security & privacy (35.5 per cent), space tourism (31.6 per cent), and social commerce (31.7 per cent).

Also Read: Future-proofing hotels to stay ahead of the curve

Interestingly, the report highlights a growing emphasis on safety technologies for travellers, coupled with a consumer preference for data protection. This confluence suggests that travellers are increasingly mindful of their well-being and personal information when venturing abroad, presenting a potential avenue for innovative solutions in the Southeast Asian tech landscape. The report notes, “travellers are becoming increasingly cautious of their own safety when travelling, and this can be an opportunity to capitalise on”.

Furthermore, the sustained popularity of solo travelling is triggering a new wave of travel services tailored to this demographic, including specialised accommodations, connection platforms, and forums. This trend could have significant implications for startups in Southeast Asia, a region known for its diverse solo travel destinations.

However, not all areas are experiencing the same upward trajectory. The report pinpoints the top three decreases in CAGR as artificial intelligence (-18.1 per cent), influencer marketing (-13.6 per cent), and voice-based digital assistance (-2.5 per cent). While AI is still prevalent in travel tech, this decrease in CAGR might suggest a shift in its application or a recalibration of its immediate growth expectations.

The Velocity Ventures report observes a “growing emergence of personalisation and engagement in the travel industry, with consumers seeking tailored experiences.” The report also emphasises that “automation is becoming essential for driving efficiency, scalability and cost reduction”, themes that resonate strongly within the tech startup ecosystem of Southeast Asia.

The report also highlights several companies, including TravelPerk, a Spanish business travel management platform that raised US$200 million in a Series E round in January 2025 with notable investors like Atomico and EQT. Another highlighted company is Paytrack, a Brazilian software developer automating travel and expense management, which secured US$42 million in a Series B funding round in the same month with Riverwood Capital participating. While these companies are not based in Southeast Asia, their significant funding rounds indicate the continued investor appetite in the broader travel tech space.

Also Read: Navigating the relationship between ChatGPT and the travel industry

In terms of recent global VC activity, the report mentions K2 Space, a US-based developer of satellite buses, which raised US$110 million in February 2025. Another US company, Doifoo, developing an AI-powered travel ID, raised a pre-seed round in March 2025.

Interestingly, the report also details activity closer to home for Southeast Asian observers. A Malaysian startup developing VR sales videos for hotels secured US$1 million in a pre-seed round in February 2025, valuing the company at US$22 million pre-money.

Additionally, a Singaporean company offering real-time, self-updating digital twins for mapping systems raised US$2.5 million in a seed round in March 2025, with a pre-money valuation of US$30 million.

These deals underscore the burgeoning innovation within the region’s travel tech sector.

Velocity Ventures also highlights two proprietary deals in their pipeline: Project S25 and Project S26.

Project S25 focuses on AI-powered personalised audio tours, offering a scalable alternative to traditional guided tours. The company claims to have achieved significant cost and efficiency gains by eliminating supplier royalties and is currently fundraising US$1.5 million at a US$12.5 million pre-money valuation. The strategic rationale includes its unique AI-powered personalisation, strategic distribution partnerships, and ongoing innovation through user feedback.

Project S26 centres around spatial twin technology, providing real-time, self-updating digital mapping solutions. This platform aims to enhance operational efficiency by allowing organisations to manage their own maps and unlock new revenue streams through spatial advertising. It has diverse applications, including aviation and the MICE industries, and has even “Executed proof of concept and secured tender with Changi Airport”. The company is fundraising US$2.5 million with a US$30 million cap.

In conclusion, Velocity Ventures’ Innovation & Deal Flow Report 1Q2025 [Travel Services] offers a compelling snapshot of a dynamic, fast-evolving global travel services sector—with Southeast Asia emerging as a region ripe for disruption. With strong investor appetite, rising demand for data security, personalised experiences, and the advent of frontier technologies like spatial twins and AI-powered tours, the region’s startups are well-positioned to ride this wave of innovation.

While certain technologies, such as AI and influencer marketing, are seeing a recalibration in growth expectations, the overall outlook remains decidedly upbeat. For investors, entrepreneurs, and stakeholders in the Southeast Asian travel tech space, the message is clear: the next frontier of travel innovation is already taking shape—and the region is poised to play a leading role.

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There’s been a flurry of news lately pointing to potentially better days ahead for hotels in Singapore. Allowing non-fully vaccinated travellers entering the city-state to skip quarantine, reopening Changi Airport’s Terminal 4 after two years of hibernation, and starting work on a fifth air terminal that will not only be one of the largest of its kind in the world but also one that’s pandemic-proof, are among the things that ought to keep hotels busy for some time to come.

Hotels are already back on their feet, with visitor arrivals to Singapore rising as borders reopen. Occupancies and room rates are at pre-COVID-19 levels, and the momentum is likely to be sustained as the country expects to receive four to 6 million visitors in 2022, compared to about 2.2 million so far this year.

Still, the heart-wrenching experience of the last two years and longer-term issues such as climate change should serve to remind hotels that they need to better align themselves with the times and even change how certain things are done to raise their game.

Doing even more with less, given the perennial shortage of workers, navigating disruptions to global supply chains, and staying up to speed with sustainability developments and practices, are a few themes hotels have to get a handle on even as business is recovering.

Doing more with less

Avoiding unnecessary physical contact has been ingrained in most people’s minds during the pandemic. Contactless payment systems, pre-arrival online surveys and virtual concierges are a few tools already in place in many hotels even before the onset of COVID-19. But there’s still room for contact-free applications for other routine tasks.

Also Read: How a hospitality career helped me jump into tech

Self-check-in, for instance, is still not common practice in Singapore. One reason for this has to do with security, as hotels want to make sure they don’t end up housing unwanted guests. But with technologies enabling secure and seamless self-check-in already available, guests should be able to do without face-to-face interactions and queues at the front desk.

Checking in can be done even before arrival as a guest can simply punch in the relevant information using a smartphone with an app or portal linked to the hotel. Hotels can take this further by issuing digital keys for rooms instead of physical ones. This would enable guests to simply head straight to their rooms upon arrival.

Besides convenience for guests, self-check-ins can help hotels save on manpower costs. Human resources will also be optimised with workers being freed up to take on more productive and interesting roles, which hopefully will help with staff retention. These are outcomes that any accommodation provider will welcome in today’s tight and increasingly expensive labour market.

Using robots for run-of-the-mill tasks such as baggage handling and food delivery can be another option. The economics must, of course, make sense as the initial outlay for these machines can be substantial, depending on the hotel’s requirements.

Supply chains and sustainability

More than two years into the pandemic, and with the Russia-Ukraine conflict still raging, disruptions to supply chains and the resultant surge in food costs continue to be felt worldwide. Food security, among other things, has become a foremost concern for many countries.

To reduce reliance on imports, Singapore seeks to have 30 per cent of its nutritional requirements met by 2030 through locally and sustainably produced foods. Many companies are rising to the challenge by developing new food solutions, including alternative proteins.

These mainly plant-based alternatives are becoming popular among consumers who are mindful of the environmental challenges linked to traditional meat farming and production. On their part, hotels can consider featuring more alternative proteins on their menus to support food sustainability.

Also Read: The data revolution: Innovation and evolution in APAC’s hospitality industry

With climate change becoming an increasing threat, mitigating emissions and reducing wastage should also be priorities for hotels. Equipping rooms with smart thermostats that automatically adjust the temperature to a pre-set, environmentally-friendly level when no one is around is one such hack.

It’s also time for hotels to ditch or reduce the use of bottled water. Making water dispensers readily available and giving every guest a glass bottle for refills will go some way in reducing plastic usage.

Even blockchain has been touted to be of help to hotels. Blockchain advocates argue that the technology enables, for example, the monitoring of wines from the time of production in a winery to the time distributors get hold of the final product and deliver the bottles to the hotel.

With every transaction recorded and available for viewing on the blockchain, they claim that counterfeiting of expensive wines can be avoided. At the same time, any delays in production or shipment can be grounds for the hotel to source alternative supplies. Promising as it sounds, blockchain adoption is still in its infancy in the hospitality industry.

Hotels in Singapore should leave no stone unturned in seeking to up their game in today’s increasingly challenging operating environment. Some ideas may seem radical or conceptual, but it’s never too late to start future-proofing against present and future threats.

Even if the initial outlay in some cases may not be small, that may be a price hotels must pay to give guests what they want and get them to keep coming back.

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AI is no longer just a buzzword for global tech giants. It is already part of the daily work of small and medium enterprises (SMEs) across Southeast Asia. Rising costs, lean teams and demanding customers are pushing businesses to rethink how they operate, and AI is quickly becoming part of the solution. The real question is how SMEs can use it in ways that create long-term benefits.

AI brings plenty of opportunity, but it also exposes gaps in skills, governance and trust. The best way to see this mix of progress and challenges is through the day-to-day stories of SMEs in the region.

The everyday frontlines: Orders, customers, and cash flow

Take a bubble tea shop in Singapore for example. The staff used to spend hours each week chasing suppliers over WhatsApp and checking invoices by hand. It was stressful, and mistakes slipped through. After bringing in an AI agent, purchase orders and invoices were matched automatically. Errors dropped, and the team had more time to serve customers during peak hours.

Another jewellery store is also using AI to ease the load. With just one person handling marketing, keeping up with Instagram and TikTok quickly became too much. An AI assistant now drafts captions, analyses engagement and suggests posting times. The founder jokes that it feels like having “a junior marketer who never sleeps,” though they still step in to keep the brand authentic.

These are not far-off case studies. They are real examples of how AI is already changing day-to-day work for SMEs in the region.

Why Southeast Asia’s context is different

SMEs make up 97 per cent of all businesses and employ about 67 per cent of the workforce in Southeast Asia. But adoption still lags behind larger companies. According to the Infocomm Media Development Authority’s Singapore Digital Economy Report 2024, only 4.2 per cent of SMEs had adopted AI in 2023, compared with 44 per cent of large companies.

Many SMEs work with tight budgets, lean teams and patchy infrastructure. That is why they often turn to low-code tools, external platforms and trusted partners instead of building everything in-house. Surveys show that more than three-quarters of SMEs in APAC are already using AI-enabled digital tools, although overall adoption remains modest in markets like Singapore.

Support schemes such as Singapore’s SkillsFuture Mentorship Support Grant and Malaysia’s SME digitalisation initiatives are important, but the real challenge is making sure they lead to lasting change rather than short-term pilots.

Also Read: AI for everyone: 25 tools to automate, create, and innovate

The next frontier: Agentic AI for SMEs

Most SMEs begin with simple, task-based AI such as automating invoices, drafting marketing copy or keeping an eye on dashboards. The next step is agentic AI, systems that can break down tasks, adapt as new information comes in and keep processes moving without constant supervision.

Think about a point-of-sale (POS) system that flags when stock is running low. Instead of stopping there, the AI places an order with the supplier, arranges delivery, updates loyalty offers to help move inventory and sends a report to the manager. Each action is connected, with the system adjusting in real time. That is the shift from AI as a helper to AI as a true partner in the business.

A case study in collaboration

One way AI adoption in Southeast Asia is taking shape is through partnerships. In Singapore, companies such as Morpheus Labs have worked with partners like Craveva, each contributing different capabilities. The chart illustrates how these pieces connect. Point-of-sale systems, CRM and loyalty platforms, supplier ordering tools and workflow technology are integrated so they operate together rather than in silos.

Here’s what that looks like in practice. A low-stock alert at the POS can trigger a supplier order, update loyalty points and generate a report for the manager without extra back-and-forth. What used to be separate tasks now flow as a single process, with AI keeping everything in sync.

For SMEs, that means less manual checking and fewer mistakes, along with more time for small teams to spend with their customers. At the ecosystem level, it highlights how local firms are experimenting with connections across different technologies to bring AI into everyday operations.

Also Read: Transparency, accuracy and validation key to building Singapore consumers’ trust in AI agents: Report

Guardrails still matter

When AI gets more autonomy, the responsibility goes up too. Agentic AI needs access to sensitive sales and customer data, which makes privacy, fairness and accountability even more important. For SMEs without compliance teams, these risks are not abstract, they are real. That is why adoption has to come with safeguards, training and clear lines of responsibility. Efficiency gains should never come at the expense of trust.

From experiments to everyday use

The next step for SMEs is not adopting AI for novelty but embedding it into workflows that scale. 

In APAC, three shifts are already visible:

• AI for efficiency and margins

Companies in APAC are beginning to use AI to strengthen demand forecasting and capacity planning. Kearney notes that AI-driven forecasting can reduce waste, optimise inventory, and support healthier margins. For SMEs in retail and F&B, these gains are especially relevant, since tighter operations directly improve profitability.

• AI for language inclusivity

Language diversity is a constant challenge across APAC. New initiatives such as AI Singapore’s SEA-LION models, trained in languages like Bahasa Indonesia, Thai and Vietnamese, are making AI tools more relevant and accessible to the region’s businesses.

• AI as a growth multiplier

For SMEs in APAC, AI is not just about cutting costs. A Deloitte–Meta study found that more than 75 per cent of SMEs in six APAC markets are already using AI-enabled digital tools. Among them, 80 per cent reported lower costs, and 73 per cent said AI helps them compete with larger firms, opening up new opportunities for growth.

Also Read: Navigating fundraising: Recognising objections vs rejections

A call to the ecosystem

It is easy to see the lesson from Southeast Asia. SMEs cannot make this journey alone. They need support from governments, investors and technology providers, whether that is mentorship, safeguards or simply a community to learn from.

The future of AI in the region will not come only from billion-dollar companies. It will also come from the bubble tea shop that automates supplier orders, the retailer that finds new ways to talk to customers and the family business that goes online to reach more buyers. What they do today will set the example for responsible adoption tomorrow.

The road forward

AI is already part of how many SMEs in Southeast Asia work day to day. The real challenge now is helping them move from small, scattered experiments to adoption that is more strategic and long term.

If that happens, the story of AI in our region will not just be about technology. It will also be about resilience, inclusion and growth for the millions of people who rely on SMEs every day.

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AI assistants like ChatGPT have quickly become part of a developer’s daily toolkit. Need to clean up a function? Ask AI. Want to check why that query isn’t running? Ask AI. It feels fast, easy, and harmless.

But what if the code they paste belongs to your company?

That simple act of copying and pasting could raise big questions about privacy, security, and intellectual property. Let’s break it down in a straightforward way.

Where does the code go?

When a developer pastes code into ChatGPT, the data is sent to the AI provider’s servers to generate a response. By default, this means the code leaves the safe walls of your company’s systems and enters a third-party environment.

While many AI tools have strict privacy policies, you can’t always be sure how data will be stored, processed, or used for model training. That’s why organisations need to think carefully about what information is shared.

The risks of pasting code

Pasting code may feel like asking a colleague for help, but in reality, it carries risks:

• Intellectual property exposure: Proprietary algorithms, workflows, or trade secrets could unintentionally leave your company’s control.
• Compliance issues: If your business operates under strict regulations (such as GDPR), pasting code with sensitive data could cause breaches.
• Security leaks: Code often contains hidden keys, tokens, or configurations. Sharing them publicly, even by mistake, creates a risk of misuse.

Why developers do it anyway

From the developer’s perspective, it feels practical. AI can:

• Suggest cleaner, faster code.
• Explain bugs in plain language.
• Speed up learning of new frameworks.

In a fast-moving project, AI feels like an instant productivity boost. The challenge is balancing speed with security.

Also Read: Preparing your cybersecurity strategy for 2025: Adapting to the rise of AI

Safer ways to use AI with code

The good news is that you don’t have to ban AI completely. With the right approach, developers can enjoy AI assistance without putting company assets at risk:

• Use enterprise AI plans: Many providers offer business-grade versions with stricter data handling and no training on your inputs.
• Mask sensitive details: Remove tokens, credentials, or unique business logic before pasting.
• Adopt internal AI tools: Some companies deploy self-hosted or private AI assistants so code never leaves the organisation.
• Create clear policies: Make sure your developers know what’s acceptable to share and what isn’t.

Final thoughts

AI is here to stay in software development, but like any tool, it comes with responsibility.

If a developer pastes company code into ChatGPT, it might speed up debugging, but it could also expose valuable data. The safest path forward isn’t to stop using AI, but to guide how it’s used. Clear policies, the right tools, and awareness across teams will ensure your business gets the best of AI without the hidden risks.

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