Fintech investment in Southeast Asia dropped 66 per cent to US$193 million in the first quarter of 2025 from US$584 million raised in Q1 2024.
The decline is 30 per cent quarter over quarter, according to the “SEA Fintech Quarterly Funding Report—Q1 2025” by data intelligence platform Tracxn.
January emerged as the highest-funded month within Q1 2025, accounting for US$108 million, or 57 per cent of the total funding.
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Despite the overall funding contraction, the regional fintech space witnessed the emergence of one new unicorn, Sygnum, which provides banking solutions for digital assets. Notably, Sygnum is reported to be the only fintech unicorn globally in 2025 thus far.
This achievement comes despite the absence of any US$100 million+ funding rounds in Q1 2025, contrasting with one such round in both Q1 2024 and Q4 2024. The region also recorded one unicorn in Q1 2024, while no new unicorns were observed in Q4 2024.
Singapore continues to be the epicentre of fintech funding in the region, attracting a substantial 74 per cent of the total investment in Q1 2025, followed by Thu Duc (Vietnam) and Petaling Jaya (Malaysia).
In terms of sector performance, cryptocurrencies led the way with US$97.5 million in funding, although this represents a 24 per cent decrease year-on-year and a 3 per cent dip from the previous quarter. Sygnum’s US$58 million Series C funding round contributed significantly to this segment.
Alternative lending secured US$34.6 million, marking a 47 per cent year-on-year decline and a 40 per cent quarter-on-quarter decrease. Techcoop, a platform providing lending solutions for the agriculture industry, raised US$28 million in a Series A round within this sector.
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Investment tech garnered US$34.3 million in funding, showing a 45 per cent decrease compared to Q1 2024 but a 37 per cent increase from Q4 2024. Endowus, an investment platform, secured US$17.5 million in a Series B funding round.
The report also noted a decrease in seed-stage funding, which totalled US$34.1 million in Q1 2025, a 52 per cent drop from Q1 2024 and a 22 per cent decrease from Q4 2024. Early-stage rounds, however, saw an increase of 47 per cent quarter-on-quarter, reaching US$101 million, although this was still a 68 per cent decline from Q1 2024.
Late-stage rounds experienced the most significant declines, with $58 million raised, representing drops of 70 per cent and 64 per cent compared to Q1 2024 and Q4 2024, respectively.
The Southeast Asia fintech space witnessed six acquisitions in Q1 2025, a 45 per cent reduction from the 11 acquisitions recorded in Q1 2024 but a 20 per cent increase from the five acquisitions in Q4 2024. Notably, Coinseeker, a blockchain intelligence platform, was acquired by Titanlab for US$30 million.
The region has not seen any IPOs in the sector for the last five quarters.
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Tracxn’s analysis suggests that the funding downturn in Q1 2025 is attributable to global funding challenges, increased investor caution, and potential market saturation. Despite this, the report underscores the region’s underlying potential, evidenced by continued digital adoption, government support, the focus on region-specific solutions by fintech companies, and the emergence of a new unicorn. The dominant funding share secured by Singapore and the relative strength of the cryptocurrencies and alternative lending sectors indicate an evolving fintech landscape in Southeast Asia.
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