Dear reader,
The latest State of the ASEAN Technology Ecosystem Report CY2024 underscores a paradox in the region’s startup landscape—while capital deployment is stabilising, early-stage founders continue to struggle with fundraising. This reflects a broader global trend where investors remain cautious, prioritising proven business models over speculative growth.
The sharp 23% decline in deal volume highlights a key challenge: the scarcity of dedicated seed funding. Without robust early-stage investment, ASEAN’s startup pipeline could face long-term constraints. While Series A and B funding appear to be stabilising, founders are often forced to accept lower-than-expected valuations, signalling a market still favouring investors over entrepreneurs.
Geographically, the shifting focus beyond Singapore and Indonesia suggests a maturing ecosystem, where emerging markets like Malaysia, Thailand, and the Philippines offer fresh opportunities. However, capital invested remains below pre-pandemic levels, reinforcing the uneven recovery.
Sector-wise, fintech’s dominance is unsurprising, given its established role in the region. What’s more striking is ASEAN’s relative lag in AI investment, especially compared to North America and Europe. This suggests a potential gap in deep tech funding that could hinder long-term innovation.
Ultimately, despite challenges, founder optimism remains strong. However, without renewed early-stage capital and stronger investor-founder alignment, ASEAN’s tech growth may remain constrained.
Sainul,
Editor.
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REGIONAL
Fundraising remains tough in ASEAN despite capital stabilisation
As per a January Capital report, fintech remained the most active sector in 2024 in ASEAN, followed by healthtech, F&B/agritech, and software/AI | The total number of deals completed witnessed a 23 per cent year-on-year decrease.
Chocolate Finance takes US$374M hit in 2-week withdrawal spree
It has slashed the firm’s assets under management (AUM) by some 40% | The genesis of Chocolate Finance’s troubles, arguably, lay in its decision to pull the plug on transactions via payment services provider AXS.
Philippine startups break records in 2024: What’s driving the boom?
The Philippine startup scene is booming with record investments and fintech growth—but can it sustain momentum amid lingering challenges?
SEA embraces crypto payments, but security and merchant adoption lag
For 51% of respondents in the region, the speed and efficiency of transactions are the paramount reasons for embracing crypto payments | However, security risks were cited by 43% of users as a major barrier.
Millennials, Gen Z will shape 79% of SEA’s fintech landscape by 2030: Report
By 2030, UnaFinancial anticipates the total number of fintech users in the region to reach 505.6 million from the current 400 million.
Blibli posts 14% revenue growth in 2024
The Indonesian omnichannel commerce firm’s direct sales business grew 66% to US$51.89M | Meanwhile, its marketplace sales, including travel and lifestyle products on tiket.com, rose 26% due to higher customer demand.
SeaX Ventures unveils US$6M climate fund to back startups focusing on carbon reduction
SeaX Zero plans to invest in 15 to 20 startups by the end of 2025, deploying initial cheques between US$100,000 and US$500,000.
Flagright clinches US$4.3M to bolster AI-native anti-money laundering solutions
The investors include Frontline Ventures, Y Combinator, and Pioneer Fund | Flagright’s no-code platform offers a centralised solution encompassing dynamic risk scoring, automated case management, real-time transaction monitoring, and AML screening.
Singapore Deep Tech Alliance charts new course for impact-driven innovation
The SDTA has marked the past year with significant milestones, including the launch of a non-profit division, which is designed to leverage philanthropic and catalytic capital for projects outside the traditional venture capital model.
Meet the 7 founders from SEA selected for EY’s Entrepreneurial Winning Women 2025
This bespoke executive initiative aims to identify and champion a select group of high-potential founders who have established profitable enterprises.
1337 Ventures invests in Philippines-based Betterteem
Betterteem is a business intelligence platform that leverages AI to predict and mitigate employee resignations while enhancing workplace satisfaction | It has secured clients in Thailand, Singapore, South Korea, and the Philippines.
FEATURES & INTERVIEWS
SEA’s US$48B agritech revolution: Startups cultivating a smarter future
Southeast Asia’s agritech market, projected at US$24-48B by 2030, grows with IoT, AI, and startups enhancing efficiency and sustainability.
For SMEs eyeing global growth, efficiency is everything: Insights from Payoneer’s Nagesh Devata
According to the Payoneer SVP of APAC, steady cash flow is critical for SMEs to survive economic instability.
INTERNATIONAL
OpenAI nears US$40B funding round led by SoftBank
Additional investors include Magnetar Capital, Coatue Management, and Founders Fund. According to PitchBook data, this round could value OpenAI at US$300B, nearly doubling its US$157B valuation from October 2023.
Trump may cut China tariffs to secure TikTok deal
ByteDance must sell TikTok to a non-Chinese buyer by Apr. 5 or face a US ban due to national security concerns | Trump indicated he may extend the deadline and offer tariff reductions to encourage a resolution.
ByteDance pressures US team as TikTok Shop falls short
TikTok’s shopping division failed to hit its goals in the US last year, and leadership is cracking down, company insiders told Business Insider | During a call, Bob Kang, the company’s China-based e-commerce head, singled out the US team as underperforming.
US-based 2am VC targets India’s Gen Z with new US$25M fund
Set to close by July, the new fund plans to invest in up to 30 Indian startups at the pre-seed to seed stages | Its average ticket size ranges from US$500,000 to US$1 million.
BYD targets 800K overseas EV sales by 2025
To address potential tariff challenges, BYD plans to assemble vehicles locally while sourcing key components from China | It’s building factories in Brazil, Thailand, Hungary, and Turkey but has no plans to enter the US or Canada due to tariffs.
SEMICONDUCTOR
From lab to fab: Inside Applied Ventures’s stage-agnostic deep tech investments
Applied Ventures’s Global Head Anand Kamannavar speaks about the key focus areas, investment criteria, trends, and expansion.
Malaysian chip designer SkyeChip secures investment from Gobi Partners
The funding will bolster SkyeChip’s talent acquisition, business expansion initiatives, and working capital | SkyeChip designs and develops semiconductors for cutting-edge applications in areas such as AI and high-performance computing.
AI boom drives increased demand for semiconductors: Industry leaders
According to industry leaders at the Nano Electronics Roadshow and Conference, they observed a sharp uptick in semiconductor consumption, with expectations for substantial growth moving forward.
ARTIFICIAL INTELLIGENCE
Is AI the end of originality or a new dawn for creativity?
The future of creativity extends beyond adapting to AI; it’s about riding the wave to unlock new imaginative dimensions.
AI infrastructure: The unsung hero of technological innovation
While AI’s applications and ethics dominate discussions, the crucial infrastructure powering its development remains a silent force shaping our future.
Responsible technology and AI: Shaping Asia’s digital future
Hong Kong leads responsible AI development in Asia, balancing innovation with ethics through governance, transparency, and inclusivity.
THOUGHT LEADERSHIP
US consumer confidence dips: How it’s hitting Asian stocks, crypto and beyond
Asian markets tread cautiously as Trump’s tariff plans loom, impacting stocks, currencies, and crypto amid shifting economic trends.
US tariffs vs crypto wins: An economic shift
Trump’s 25% auto tariff shakes markets, impacts industries, fuels crypto shifts, and raises big questions on trade, inflation, and policy.
The shifting geopolitics of sustainability, energy, and climate
Policy shifts in Europe, the UK, and Canada reveal a new balance between sustainability, energy security, and geopolitical strategy.
The impact of eSIM on international roaming and travel
eSIMs simplify travel—no roaming fees, SIM swaps, or WiFi hunts. Stay connected seamlessly and affordably worldwide.
Embracing sustainability: A circular design perspective on e-waste
Explore sustainable design’s impact on tackling e-waste, focusing on responsible product lifecycles and recycling for a greener future.
Profitable e-commerce: Making real money in the new year
In the world of e-commerce, the most common tailwinds are the events and occasions when people are ready and willing to shop more.
How fintech in Asia is enabling and making education affordable for everyone
Financing has always been the key barrier for enrolment and retention, and is a top-of-mind issue for schools.
Navigating the diverse crypto regulatory landscape in Southeast Asia
Cryptocurrency regulation and adoption in Southeast Asia vary widely, reflecting each country’s unique circumstances.
How to tackle employee mental health to build a resilient workforce
World Mental Health Day is the perfect opportunity to reflect on how organisations have supported their workforce.
A better way to work: independent doers lead the way
No matter how you’re employed, embracing change is the best way to stay relevant; and independent doers are leading the way, let’s keep up.
The post Ecosystem Roundup: ASEAN fundraising struggles | Chocolate Finance sees US$374M withdrawn in 2 weeks | OpenAI nears US$40B round appeared first on e27.