Indonesia-based startups secured US$191 million in venture funding in the first half of 2024, a 64 per cent decline from US$526 million raised in the same period last year.
On a sequential basis, the drop is 79 per cent, as per the Geo Semi-Annual Report: Indonesia Tech H1 2024 released by data intelligence platform Tracxn.
The Southeast Asian country ranked 29th globally in funding as of H1 2024.
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Per this report, seed-stage investments in H1 2024 decreased by 27 per cent to US$26 million from US$32 million in H1 2023. Sequentially, the decrease is 42 per cent. Early-stage funding in H1 2024 marked a 42 per cent drop to US$113 million from US$148 million in the same period a year ago. Late-stage investments plunged to US$52.2 million from the US$681 million raised in H2 2023.
Fintech, insurtech and enterprise applications emerged as the top-performing sectors in H1 2024, indicating strategic growth areas within the industry. No new unicorns emerged in the period v/s one unicorn in H1 2023.
The report further found that fintech startups in Indonesia raised US$128 million in H1 2024, a 61 per cent plunge from US$329 million raised in H1 2023. The enterprise applications witnessed a 56 per cent decline in funding to US$45.1 million in H1 2024 from US$104 million in H1 2023.
On the other hand, insurtech saw a huge surge in funding, from US$7.5 million in H1 2023 to US$47 million in H1 2024.
H1 2024 saw a decline in acquisitions and IPO activity compared to the previous year. Three acquisitions recorded were DycodeX by eFishery, AyoPajak by PrivyID, and Lifepal by Roojai, down from six each in H1 2023 and H2 2023.
Topindoku was the only company to go public in H1 2024, showcasing a subdued IPO market during this period. This is lower than the four IPOs that took place in H1 2023.
Jakarta took the lead in terms of city-wise funding in H1 this year, followed by Yogyakarta and Bandung.
Also Read: Funding into SEA’s female-led startups falls 42% to US$480.8M in 2023: Tracxn
East Ventures, AC Ventures, and Alpha JWC Ventures maintained their status as the top investors, while East Ventures, Insignia Ventures Partners, and Beenext emerged as the top investors specifically for H1 2024.
In the early-stage investments, Peak XV Partners, Vertex Ventures, and Shunwei Capital led the funding activities, with MUFG Innovation Partners emerging as the top investor in late-stage startups.
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