Dear Pro member,
Funding into Southeast Asia’s tech startup space fell 71% from US$8 billion in the first half of 2022 to US$2.3 billion in H1 2023, as per a Tracxn report. The decline was driven mainly by a 72% plunge in late-stage investments.
H1 2023 is the least funded half-year since 2020. The region’s tech startup ecosystem witnessed its highest funding in 2021, after which there was a steady decline. Investments into this region fell by 39% in 2022 from 2021. Some of the primary reasons for this downward trend could be the rising interest rates and the current macroeconomic environment.
Fintech, enterprise applications, and retail were the top-performing segments in H1 2023. However, these industries witnessed a drop in funding. Two segments that observed upticks are auto-tech and insurtech.
The overall trend doesn’t inspire confidence in the region’s startup ecosystem. However, things could be reversed as the world emerges from the shackles of the current macroeconomic environment.
This is the top story of this week’s Ecosystem Roundup. Get a glimpse of the latest major happenings in the region’s startup ecosystem.
Sainul
Editor.
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Singapore tops SEA for tech funding in H1: report
The city-state attracted US$685M for Q2 2023, bringing its total H1 gains to US$1.2B; Total funding into SEA startups fell 71% to US$2.3B in H1 2023 from US$8B in H1 2022.
Thunes pockets US$72M at a US$900M+ valuation
The investors are Visa, EDBI, and Endeavor Catalyst; Thunes’s platform allows businesses and their customers to send and accept payments globally; It powers payments for clients such as Grab, PayPal, and Uber.
China’s XVC leads US$20M round of Indonesian BNPL firm Finture
Other backers are SWC Global, MindWorks Ventures, Antao Capital, and Tortola Capital; Finture connects customers to licensed financial institutions that provide instalment payments.
Ola advances IPO plan as electric Scooters take off in India
The Bengaluru-based firm has 38% share of India’s e-scooter market; Ola Cabs got as far as selecting banks for a US$1B IPO in August 2021, but that never materialised; It is backed by SoftBank and Tiger Global.
Hydroleap nets US$4.4M to enter Australia, Japan, Indonesia
The investors are Real Tech Holdings and the Government of Victoria; Hydroleap is an industrial wastewater treatment company offering an automated modular system without any chemicals.
Truck transport network in Thailand APX gets funding
ORZON Ventures is the lead investor; APX provides door-to-door cargo transportation services through its network with modern platforms for LTL (less-than-truckload) and palletised cargo services.
Tesla enters Malaysia with Model Y SUV
The move allows the US firm to capitalize on the red-hot ASEAN EV market, which is expected to rise from US$859 million this year to a staggering US$3.5 billion in 2028.
Low-code platform ToolJet raises funds from Microsoft, GitHub
ToolJet helps companies build internal tools quickly and with less engineering effort; The company said that its platform is used by companies, including GoTo Group, Byju’s, and Sequoia
Threads now has one-fifth of the weekly active user base of Twitter
The app has now achieved over 150M downloads, by its current estimates — which is 5.5X faster than Niantic’s Pokémon Go, which had held the record for largest app launch title since its July 2016 debut.
How Flexxon solve AI’s cybersecurity problem through hardware-focused approach
When it comes to its role in the cybersecurity industry, AI is often touted as an effective solution when infused with anti-virus software and firewall protection, says Flexxon CEO Camellia Chan.
Top news stories e27 published last week
From Radical Fund’s US$40M first close to the unveiling of the 55 finalists of SMU’s LKYGBPC competition, SEA witnessed quite a few activities in the last week.
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Many business owners lack a compelling value proposition that engages, intrigues, and converts conversations into potential leads.
Optimising finance made easy: Embracing AI-driven investment
AI-driven investment has emerged as a powerful tool for optimising finance, revolutionising the way we approach investment strategies.
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