The healthtech, edutech, and blockchain verticals dominated Southeast Asia’s startup funding landscape in the past five years, according to Tracxn research.
The healthtech sector garnered US$1.5 billion in investments, contributing more than 87 per cent of the total funds raised to date in this space. Halodoc (which secured US$245 million), Doctor Anywhere (US$172.3 million), and HealthifyMe (US$105 million) led the pack.
After the COVID-19 pandemic, healthtech financing rose sharply, reaching a peak of US$515 million in 2023, primarily driven by an increase in early-stage investments, which attracted US$308 million.
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Insurtech also gained significant momentum in the last five years, driven by ongoing digital transformation initiatives. The sector has amassed US$1.8 billion to date, 80 per cent of which (US$1.47 billion) came in the past five years. Key insurtech players driving this growth included Bolttech, Singlife, and Qoala.
The edutech sector also maintained a high overall contribution, accounting for 94.5 per cent of the total funding. However, there has been a sharp decline since 2021 as the demand for remote learning solutions waned.
The edutech vertical experienced its peak investments in 2021, with a total of US$0.98 billion raised. This aligns with global trends, as the pandemic accelerated the adoption of edutech solutions.
However, 66 per cent of the edutech funding raised in 2021 was thanks to a significant US$650 million funding round by Emeritus. Additionally, 88 per cent of the funding in 2021 was raised by just three companies: Emeritus, Ruangguru, and Lingoace. Notably, none of these companies have managed to raise equity funding post-2021.
Also Read: Startup funding in SEA falls 65% to US$4.3B in 2023: Tracxn
Blockchain technology in the region also witnessed its peak investments in 2022, with US$2.3 billion raised. Although funding declined sharply in 2023, this year so far has seen a notable recovery with US$463 million raised, already exceeding the total funding of 2023.
Amber Group led the blockchain sector, with US$628 million in funding, followed by Sky Mavis (US$311 million).
Other notable sectors that performed well in the past five years include energy tech and gaming.
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