Southeast Asia’s tech startup ecosystem witnessed a slight uptick in funding activity in March 2025, with total funding reaching US$99.5 million across 22 rounds.
This figure represents a notable 10.31 per cent increase compared to the previous month, February 2025.
However, the total funding for March 2025 was a steep 82.1 per cent lower than the funding secured in the same month last year.
Also Read: Singapore surpasses San Francisco as world’s top hyper-growth startup hub
According to data compiled by startup intelligence platform Tracxn for March 2025:
- The region reported 15 seed-stage, six early-stage, and 0ne late-stage rounds.
- Iterative emerged as the most active venture capital firm in the region, participating in seven rounds, including Seedflex and six others.
- Other active VCs during the month included 1982 Ventures, TheVentures, and Ignite House.
- Notable deals included Higala and Filum, each closing one round of funding.
Also Read: Fundraising remains tough in ASEAN despite capital stabilisation: January Capital report
According to a recent report by January Capital, overall funding for ASEAN technology companies began stabilising in the latter half of 2024.
However, the total number of deals completed witnessed a 23 per cent year-on-year decrease, with seed and early-stage funding experiencing the most significant contraction.
A closer examination of funding by stage indicates a growing scarcity of dedicated seed capital. While the seed-stage deal count saw the most significant decline in H2 2024, Series A and B financing stages show signs of stabilisation.
Notably, the amount of capital deployed stabilises, with Series A, B, and C deal values showing either half-on-half or year-on-year improvement in the latter half of 2024. Nevertheless, the seed stage remains the most constrained in terms of capital availability.
Having said that, fundraising remains a paramount challenge for founders in Southeast Asia, with 74 per cent of surveyed founders identifying it as one of their top three hurdles.
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