SEA Marks the Spot:

The 2023
Tech in Asia
Conference
Report

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 1
SEA Marks the Spot l The 2023 Tech in Asia Conference Report 2
 Contents
04 Introduction

05 A closer look at Southeast Asia

07 The current state of the ecosystem
10 What Southeast Asia has going for it
12 Challenges ahead

15 Within Southeast Asia

17 Singapore
23 Indonesia
29 Vietnam
35 Malaysia
41 Thailand
47 Philippines

53 Southeast Asia and the Public Markets

59 Conclusion

61 Endnotes

63 Acknowledgements

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 3
 Introduction
The last year has been a pretty tumultuous time for the global tech sector.

Nasdaq saw four consecutive quarters of dropping But these still accounted for the bulk of deals7 done in
values. Forbes called 2022 “the worst year for tech”1 the region, making up 55% of total deal volume last year.
after the financial crisis in 2008 and the dotcom bubble
burst in 2000. The region also has strong fundamentals and it’s poised
to ride a demographic dividend and reap the benefits of
On the funding front, winter has certainly set in. Global a digital economy.
venture capital funding fell 53% year over year in the
first quarter of 20232 to US$76 billion, down from Moreover, Southeast Asia’s economy is on track to grow
US$160 billion3 in Q1 2022. Closer to home, Southeast in 20238 despite the overall negative outlook globally.
Asia has also seen funding slow down4 with only There’s also a lot of dry powder9 waiting to be deployed.
US$14.4 billion raised in 2022, less than half of the
US$30.7 billion that was invested the year before5. In this report, we’ll go deeper into what makes
Southeast Asia stand out against this larger
Layoffs, too, have swept the tech sector. Firms like Meta, macroeconomic backdrop. We’ll also examine six key
Disney, and Google have had to let staff go. Southeast markets in Southeast Asia - Singapore, Indonesia,
Asia hasn’t been spared6, with Grab, Sea Group, Vietnam, Malaysia, Thailand, and the Philippines - in
GoTo Group, and many others making cuts to their detail and look at how the region has fared on the public
headcounts. markets, now that we’ve seen several tech companies
make their stock market debuts.
Plus, macroeconomic woes around the world -
represented by slowing growth and anxieties around Through conversations with six venture capitalists (VCs)
recessions - as well as geopolitical conflicts such as the in the region, our comprehensive database and in-depth
ongoing Russia-Ukraine war have put the global tech coverage of the regional tech ecosystem, as well as
ecosystem in a tough spot. extensive desk research, we’ve laid out what Southeast
Asia has going for it and why we believe the road ahead
However, Southeast Asia’s will be an exciting one.

tech scene appears to Here’s how Southeast Asia is a bright spot in the tech
be weathering the storm. world.

Compared to 2021, there

were fewer large-ticket
investments and less activity
in 2022 for the internet and
tech sector.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 4
 A closer look at
Southeast Asia
Diving into this notion of Southeast Asia as a bright spot, we
explore the current state of the regional tech ecosystem, look at
its opportunities and potential that’s helping it stay its course, and
delve into the challenges that the region will need to overcome
on the road ahead.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 5
SEA Marks the Spot l The 2023 Tech in Asia Conference Report 6
 The current
state of the
ecosystem

Southeast Asia’s tech and startup ecosystem

has come far in the last decade. The region had
53 unicorns10 in its stables as of May 2023, with
a fair number of decacorns among them.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 7
Startup funding in the region While it took a hit in 2022, most of the VCs we spoke to
are confident that the region’s startups will be able to
has been steadily rising, continue drawing in investors, albeit at a smaller scale or
peaking at US$30.7 billion in a slower rate during the current economic slump.

2021.

Funding (US$)

Source: Tech in Asia data

There’s also a good mix of early- and late-stage companies within the region, illustrating the breadth in the ecosystem.
While those in the early stages dominate the startup pool, the presence of companies at later stages shows that Southeast
Asian firms have been able to raise funding at different points of their journeys, demonstrating a long-term potential that is
attractive to investors.
SEA Marks the Spot l The 2023 Tech in Asia Conference Report 8
 SEA’s startups by funding stage

Pre-series Series A Series B Series C Post-series C Non-VC Funding Others Public

Source: Tech in Asia data

In the last two years, Some of Southeast Asia’s publicly listed tech
companies are:
Southeast Asia has seen
more of its tech companies
make their public market
NYSE, 2017 IDX, 2021 NYSE, 2021
debuts. There were a total of
six publicly listed firms as of
June 2023, up from just one in
NASDAQ, 2021 IDX, 2022 NYSE, 2022
2020.

Plus, the region’s VC firms have been able to raise It’s safe to say that Southeast Asia’s startup ecosystem
capital for their funds11 even in the face of the larger has done well for itself, experiencing significant growth
macroeconomic situation. These include the likes of B and garnering interest from regional and global players
Capital’s Growth Fund III, which closed at around US$2.1 as a market ripe with opportunity.
billion, and Vertex Ventures’ Vertex Master Fund III,
which secured US$900 million for its initial fundraise.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 9
 What
Southeast Asia
has going for it

While the region may be encountering economic

headwinds now, its fundamentals - and the
opportunities these hold - remain unchanged.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 10
Firstly, Southeast Asia is experiencing a demographic Tech companies are therefore leveraging - and will
boom. Its population stood at over 687 million people12 continue to leverage - mobile networks, bypassing the
as of July 2023, nearly double that of the US. Investors need for infrastructure around broadband internet and
we spoke to pointed out that the scale of the regional bringing new solutions to consumers around the region.
market cushions it from the global situation to some
extent. As the domestic market remains strong, it also Thirdly, Southeast Asia has had consistent economic
presents a significant opportunity for tech companies. growth, as seen from the generally stable trend18 of its
GDP. Additionally, the economic outlook for Southeast
The region has a median Asia in 2023 remains positive19. According to estimates
by the Organisation for Economic Co-operation and
population age of 30.2 and Development (OECD), the region’s average GDP growth
the number of 15- to 35-year- will reach 4.6% this year and 4.8% in 2024 - “weaker
than in 2022, but still showing resilience” in the face of
olds is expected to peak in the macroeconomic situation.
2031. Generation Z - those
Aside from these key opportunities, there’s also value in
born between the mid-to-late looking at where Southeast Asia sits in contrast to other
1990s and the early 2000s, economies in Asia.

depending on the exact Taking reference from the Asia Partners 2023 Southeast
definition one uses - makes Asia Internet Report20, the region is entering its “golden
age of rising affluence”21 where GDP per capita and
up a significant proportion13 income levels are on the rise, leading to a growing
of the population. middle class.

In Indonesia, it’s now the Another rising segment is the “mass affluent,”22 referring
largest generation14. to people with the purchasing power and intent to
sharply increase their consumption of various premium
Members of this group - who are digital natives, tech- and luxury goods and services. This group also has an
savvy, and open to new digital solutions - are entering up to 40% share of household wealth in major Southeast
the workforce and going into their productive years. Asian markets.
They are often more educated than their parents
and have tremendous earning and market potential, Southeast Asia is also at a similar place to where China
especially as they advance in their careers. was from 2004 to 2015, a time when a lot of its major
tech companies emerged. We’re seeing this with the
Secondly, tech companies in Southeast Asia are building rise of firms like Sea Group, Grab, and GoTo Group -
up core services for the market. Much of the region largely consumer-facing businesses.
remains underserved by institutions providing financial
services, logistics, and transportation networks, among Plus, it can be argued that Southeast Asia is a politically
others. Tech firms therefore have the opportunity to “neutral” ground against the larger global geopolitical
lay the foundations in such key areas, becoming an tensions at play. This makes it a more stable market,
essential part of the regional economy. appealing to global tech companies and investors
and thereby driving more interest and capital into the
This ties into Southeast Asia’s position as a mobile-first ecosystem.
- if not mobile-only - region. Back in 2019, it outpaced15
China as the world’s mobile economy hotspot. In 2021,
mobile technologies and services generated 5% of
gross domestic product (GDP) across Asia Pacific16 - a
contribution that amounted to more than US$770 billion
of economic value. Southeast Asia had a significant
slice of that pie, given that 81% of the population used
smartphones in 202117 - and that’s expected to rise to
89% in 2025.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 11
 Challenges
ahead

While Southeast Asia is ripe with potential, there

are still several challenges that stand in its way.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 12
Firstly, it still needs more exits to prove that investors will see returns. Aside from stock
market listings - of which there are now only six - there also needs to be more high-profile
mergers and acquisitions (M&As) and secondary sales to prove that there’s liquidity in
the market.

While the number of M&As has increased year on year,

the values of these deals are often not disclosed. Of
those that are, check sizes have generally been quite
small.

M&A activity in SEA

As of Aug. 1, 2023
Source: Tech in Asia data

Most of the listings in the region have been consumer- Another challenge Southeast Asia has to grapple
facing firms, meaning that there’s a very limited pool with is talent, which was a recurring theme in our
that people can draw reference from as measures of conversations with multiple VCs. The region continues
success. to face a significant talent crunch23 despite layoffs in
the past year, with roles in areas like data science and
Additionally, these listed companies have had lackluster engineering in high demand.
performances on the public markets so far, impacting
investors’ views on the region. We go into this in more
detail in the fourth section of this report.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 13
This will be keenly felt in terms of deeptech talent,
especially as generative AI takes off. The AI talent gap
remains a significant challenge24 and is one that will
likely only be addressed through long-term efforts.

Aside from the shortage, Southeast Asia’s

entrepreneurial talent is still young. Several VCs we
spoke to pointed out that many founders in the region
are still learning what it takes to run companies. They
may not have the necessary experience or expertise to
take their startups through the different stages of their
development.

Also, Southeast Asia lacks serial entrepreneurs - folks

who have built companies, made exits, and then started
new ventures, hence creating a kind of virtuous cycle
around both capital and experience. This shortfall limits
the region’s growth.

Lastly, Southeast Asia

struggles with a gap in
funding25, especially at the
series B and C stages. At
these stages, startups may
be looking to raise more
money than local or regional
VC firms can provide.
However, these startups
are too small or early-stage
to attract international
institutional investors.
This issue is exacerbated by the current funding
winter - investors are being more critical about backing
new companies and deciding on valuations, making
it challenging for startups to raise at their previous
valuations. At the same time, no one wants to raise a
down round, presenting a dilemma for the ecosystem.

Another factor is that investors looking to back later-

stage companies may include private equity firms,
sovereign wealth funds, and corporate venture arms.
Their expectations around a startup’s performance and
operations are often very different from those of early-
stage investors. They may also be more focused on
strategic interests.

All of these factors inhibit startups’

growth and prevent them from raising
the capital they need.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 14
 Within
Southeast Asia
The region as a whole has much potential, and while there’s
some level of interconnectedness between economies, each
market also has its distinct strengths and weaknesses. We’ve
broken down the state of six countries’ tech sectors, highlighting
how each one is contributing to Southeast Asia’s status as a
bright spot.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 15
SEA Marks the Spot l The 2023 Tech in Asia Conference Report 16
 Singapore

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 17
 Funding (US$ millions)

Source: Tech in Asia data

Unicorns and notable startups

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 18
Market
opportunities

Much of what has made Singapore so appealing for international firms also applies
when looking at the tech industry.

For one, its status as an international financial center a highly favorable corporate
holds a lot of weight. It’s drawn many large multinational
corporations, with around 2,492 subsidiaries26 domiciled
tax rate, which currently
in the city-state. stands at a flat 17%28 - lower
Last year, the country overtook Hong Kong to rank third
than the global average of
in the Global Financial Centre Index27, coming in only 23% and Asia’s average of
behind New York and London.
20%29.
It's easy to see why the country provides a good tech
Funding programs like the Technology Incubation
breeding ground for both disruptors and consumers.
Scheme and the Early Stage Venture Fund, which were
co-funded by the government in the late 2000s, also
On top of being politically provided capital for young startups, which encouraged
entrepreneurs to set up shop.
stable, the city-state boasts

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 19
Key verticals of interest

Financial The shining star of Singapore is its

fintech industry - which is rather
(US$298 million) in grants32 to industry
professionals during that period.
services unsurprising, considering that the city-
state is Southeast Asia’s financial hub. In recent years, family offices have
begun setting up in Singapore to
As of June 2023, 190 firms30 have been capitalize on the rise in high-net-worth
granted a major payment institution and ultra-high-net-worth individuals
license by the Monetary Authority of as well as the city-state’s “neutral”
Singapore (MAS), enabling them to offer status. Within the first five months of
various financial services in the country. 2023 alone, there were 182 new family
offices33 in the country.
The MAS projected that the country’s
fintech sector would grow by roughly This adds on to the roughly 700 single-
4% or 5% per annum between 2021 and family offices that were recorded as
202531. To develop a workforce with the of 2021, which was around double the
relevant skills, it is providing S$400 million 2020 figure.

Climate Greentech has also stepped into the

spotlight, with several government efforts
only behind Indonesia.

tech driving the city-state’s energy transition. The most recent estimates put the
number of indoor vertical farms at 30 in
For instance, as part of the Green Plan 201938, up from six just three years prior.
203034, the Land Transport Authority
plans to install 60,000 charging points To facilitate the agritech transition, the
for electric vehicles (EVs)35 within the government also launched a S$60
decade. It’s also providing rebates and million (US$45 million)39 fund to help
discounts for EVs to attract local drivers, local farmers adopt new technologies.
up to the tune of S$45,000 (US$33,500).
However, the high cost of land - even
The MAS is also chipping in, having in the case of smaller or vertical farms -
allocated S$15 million (US$11.2 million)36 make them costly to operate. Red tape40
over the next five years to support projects in the licensing process also hampers
and activities that reduce carbon the sector’s growth.
emissions in sectors such as power
generation, buildings, and transportation. On the alt-protein front, Singapore
became the first country in the world
Despite its small land size, Singapore has to approve the commercial sale of
been punching above its weight in the cultivated or lab-grown meat in 2020,
alternative protein and agritech sector. paving the way for firms in the sector to
It hosts the second-largest number of push out products41 on a wider scale.
agritech firms37 in the region, coming

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 20
 Biotech Singapore’s biotech industry has much
potential, with the number of firms set
was originally based in Singapore but
moved to Boston in 2019. The company
to rise from 52 in 2022 to 84 in 203242. raised US$300 million in a series D
Overall, the sector is expected to grow round last year, which put it into the
8% per annum. unicorn territory45.

And while there’s an expectation that Additionally, Singapore is considered the

the sector will face a talent shortage, leader in Asia Pacific for personalized
the government has announced several healthcare, according to data from
initiatives to alleviate the issue, such as FutureProofing Healthcare46. Much of
on-the-job training programs. this is due to government initiatives
such as the National Precision Medicine
Some local firms have stood out recently. program and Three Beyonds strategy.
Mirxes, for instance, is seeking approval
for a US$600 million IPO43 on the Hong The country also has comprehensive
Kong stock exchange. This would make infrastructure to support medtech and
it the first company outside China and biotech development47, not to mention
Hong Kong to be granted a biotech IPO strong record-keeping systems. Its
for the exchange. This development national cancer registry, for example, has
follows its US$50 million series D gathered information on the condition for
fundraise44 in July. the last 50 years.

Another star would be Biofourmis, which

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 21
Looking
ahead

While Singapore maintains a strong position in the tech

sector, there are still some bumps in the road ahead.

The rising cost of living can’t be ignored as it’s causing

many expats to consider uprooting48. Subsequently,
multinational companies are also beginning to evaluate
whether having staff in Singapore is going to be worth
the cost if things like rental prices continue going up49.

Also, despite the increase in family offices, any positive

effects expected haven’t materialized yet. Hedge funds
and private equity have yet to see a corresponding
increase50 in capital inflows from these offices.

That said, Singapore’s

neutrality in an era of rising
US-China tensions could
make it an increasingly
attractive destination for
tech firms straddling both
markets. Already, firms like
Shein51 and TikTok have set
up shop in the city-state.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 22
 Indonesia

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 23
 Funding (US$ millions)

Source: Tech in Asia data

Unicorns and notable startups

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 24
Market opportunities

When it comes to size and On the economic front, Indonesia has bounced back
nicely from the Covid-19 pandemic, outperforming
diversity, no other Southeast neighboring countries54 with a 3.7% growth in GDP in
Asian market has Indonesia 2021 and a 5.3% jump in 202255.

beat. After all, the archipelago It should also be noted that while much of the
is home to roughly 275 country’s economic activity is still centered in Java, the
government has announced plans to move the capital
million people - that’s the to Kalimantan56. Apart from avoiding the coming effects
highest in ASEAN52 by far and of climate change, this plan is aimed at increasing
economic growth57 in the outer provinces.
comprises almost half of the
entire region. Add on the fact Internet access is also on the rise, signaling a strong
digital landscape in the coming years. Last year, the
that this population consists
country’s internet penetration rate stood at roughly
of more than 300 ethnic 77%58.
groups53, each of which
Much of Indonesia’s digital growth would come from
has specific, new needs to Tier 2 and Tier 3 cities59. Currently, around 45% of the
be solved, and it’s clear to population60 in these locations have digital habits that
are three to five years behind those in Tier 1 cities,
see that there’s a wealth of indicating huge areas for improvement.
opportunities to be had.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 25
Key verticals of interest

Ecommerce With a roughly 22% year-on-year growth

in gross merchandise value (GMV) in
In addition, the rise of TikTok Shop has
been attracting attention. The social
2022, a report from Google61 estimates commerce platform captured a 5%
that ecommerce will be the primary market share65 in the country last year,
driver behind Indonesia’s US$130 billion surpassing Blibli's 4%, according to a
digital economy come 2025. report by Momentum Works.

The GMV share for ecommerce is driven All told, the country remains the largest
mostly by Shopee and Tokopedia62, ecommerce market in Southeast Asia by
although fellow industry major Lazada far with roughly 52% - or US$51.9 billion -
has launched63 several initiatives64 to of the region’s total GMV66.
shore up its position.

Agritech Indonesia’s agritech sector has seen a

strong uptick in funding, with both deal
agriculture, forestry, and fishing are a
large component of the country’s GDP -
count and value roughly doubling from roughly 13%68, in fact.
2021 to 202267. The number of deals
surged from 13 to 25 during that period, Some of the biggest agritech deals
while the total amount raised jumped of 2022 include the US$120 million
from US$147.8 million to US$375.9 million. fundraise of e-grocery firm Sayurbox
and the US$90 million series C round
Correspondingly, the agritech market of aquaculture startup eFishery, with the
grew at a CAGR of roughly 40% from latter becoming the first unicorn in the
2016 to 2021. The good momentum isn’t agritech and aquaculture sector.
entirely surprising considering that

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 26
 Fintech Much has been said about the unbanked
segment of Indonesia, making up about
investors in the Indonesian capital
market reached 10.3 million investors
66% of the total population69. With in December 2022, marking a 37.5%
such a huge untapped market, it’s not increase from 7.5 million the previous
surprising that the local fintech sector year.
has soared, with a 6x increase70 in the
number of firms over the last decade. While lending and payments services
might have been the stars of the fintech
In the lending services sector, the sector’s earlier years, a new generation72
number of peer-to-peer borrower of startups is rising in the wealthtech,
accounts rose at a compound annual fintech-focused software as a service,
growth rate (CAGR) of 50%71 between and insurtech spaces.
2018 and 2022. Total loan disbursement
reached US$17 billion last year, growing And as bigger firms like ecommerce
at an annual rate of 140% from 2018 to giant Bukalapak and super app GoTo
2022. start establishing a foothold with their
fintech offerings, the industry is sure to
Looking at wealth services, total heat up in the coming years.

Electric Indonesia’s EV industry might be young

but it holds a lot of potential.
the next five years if public and private
stakeholders can work together.
vehicles
Of note is an AC Ventures report73 In this regard, the sector is getting
indicating that the sector has a total support from the government, which is
addressable market of more than US$20 providing subsidies for buyers of battery-
billion. The industry’s high level of based EVs through a 10% reduction in
efficiency and low operating costs also value-added taxes74 starting from April
mean that the market could grow at a this year. This should give plenty of
CAGR of 58.5% until 2030. consumers an added incentive to get
an EV of their own, especially with auto
As it stands, two-wheeler EVs make up giants like Hyundai, Honda, Toyota,
0.2% of the country’s motorcycle market, Mitsubishi, and Wuling looking to make
with the potential to exceed 10% over an entrance.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 27
Looking ahead

The Indonesian government That said, while outbound growth looks strong, inbound
investment still faces several challenges.
has set its sights on
strengthening cybersecurity, For one, the country’s diversity acts as a double-edged
sword. Cultural, linguistic, and geographical differences
with a recent win in the can pose a challenge for new startups looking to grow
form of the personal data their customer bases.

protection law75, which was Couple that with high logistics costs77 - especially in
passed last year. lower-tier cities - and it’s clear that tech firms will still
need to be cognizant of growing pains in Indonesia.
In the same field, the government has already made
efforts in areas like data sovereignty, which enacts In that regard, new technologies - such as the current
certain requirements76 on the data collected and stored golden children that AI and data analytics are - should
in the country. prove useful in helping companies enhance business
operations, improve customer experiences, and make
Many local tech firms are also expanding their data-driven decisions.
operations and seizing overseas opportunities.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 28
 Vietnam

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 29
 Funding (US$ millions)

Source: Tech in Asia data

Unicorns and notable startups

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 30
Market opportunities

Vietnam has a relatively young population, with a Years ago, the country’s
median age of around 32.578. This puts it far ahead of
other Asian economic powerhouses79 like Japan (48.4),
young and tech-savvy
South Korea (43.4), and China (37.9). population leapfrogged81 the
And while it may not be as low as some other countries
desktop and went straight
in Southeast Asia - like the Philippines (25.7) and to mobile. Today, they’re at
Malaysia (30.3) - Vietnam is still younger than the likes of
Singapore (42.2) and Thailand (40.1).
the forefront of embracing
the latest developments,
Add on the fact that the country is home to almost 100
million people80 and it’s no wonder that such a huge
whether it’s crypto or AI or
potential consumer base would be attractive for firms the trendiest dance moves on
and investors alike.
TikTok.

The country’s smartphone penetration rate stands at US$23 billion in 2022.

98.1%82, indicating the need for all tech firms to optimize
their mobile-based solutions. In terms of raw numbers, And while the country hasn’t managed to escape the
that figure is the second highest83 in the region, behind funding winter, there are some silver linings. In the
only Indonesia’s. second half of 2022, despite the overall drop in funding
amounts, there was an uptick in deal count87 compared
Vietnam is also well known for harboring affordable to the first half, which means that investment activity is
and talented engineers. The base monthly salary for a still healthy even as investors tighten their purse strings.
junior software developer, for instance, starts at around
US$60084, although it may go up to US$2,500. On the Part of this could be attributed to how local startups’
consumer end, it’s got the fastest-growing middle class valuations might fall in the coming year. While not the
in Southeast Asia85, which provides a nice base for firms most ideal for firms, lower valuations would attract more
to explore. investors looking to make advantageous deals.

Additionally, its economy has rebounded strongly For now, according to Tech in Asia data, the country
after the pandemic. In fact, its digital economy had ranks third in Southeast Asia by deal count, coming in
the highest growth in Southeast Asia last year, with its behind Indonesia and Singapore.
market value up 28%86 from US$18 billion in 2021 to

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 31
Key verticals of interest

Fintech With about 70% of the population having

no or limited access to banking services,
2025, the lending segment in Vietnam
could grow by an estimated CAGR of
it’s not a surprise that fintech is one 56%.
of Vietnam’s most burgeoning tech
segments. Within digital lending, the buy now, pay
later (BNPL) market has witnessed some
E-wallet services used to be the interesting developments. Atome and
battleground in the sector as companies Kredivo used to be the biggest foreign
aimed to get consumers away from cash. BNPL names operating in Vietnam. But
In 2020, about 34 companies88 were in July 2023, Atome confirmed91 its exit
competing just in the e-wallet segment. from the country, citing limited traction.
For now, MoMo and ZaloPay appear Local player Ree-Pay also said it’s up for
to be pulling ahead as leaders in the sale92 to a potential traditional bank.
space..
Despite being drawn to Vietnam’s low
In 2022, total funding in the sector credit card penetration and young
reached US$205 million89 spread across consumers’ desire for quick access
14 deals. Meanwhile, total funding for the to “short-term” pleasures, BNPL
first half of this year hit US$162 million companies operating in the country
coming from four deals. have to overcome challenges such as
lack of consumer data, regulations, and
The unbanked or underbanked awareness on how the service works.
population also have a strong demand
for short-term loans, explaining why the Still, that doesn’t mean the BNPL
digital lending space is getting heated segment isn’t growing. Its GMV in
in the country. A report by Google, Vietnam could exceed US$10.5 billion93
Temasek, and Bain and Company90 by 2028.
emphasizes this further: From 2022 to

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 32
 Electric The global attention on VinFast has
certainly made investors pay more
enables users to charge their EVs
in under two minutes for up to 150
vehicles attention to Vietnam’s EV sector. While kilometers of travel. Selex Motors has
the firm has been stretching resources partnered95 with Grab, Lazada, and
to make its name in the US, the domestic Baemin in last-mile delivery, suggesting
market remains wide open for tech much potential to increase the usage of
startups. EVs in logistics.

One of the most notable names is Currently, the government doesn’t have
Dat Bike, which aims to design and clear policies or incentives to support
manufacture “truly made-in-Vietnam the EV industry, despite targeting96 net-
electric bikes” that can compete with zero emissions by 2050 and aiming to
gasoline motorbikes on durability, range, convert 100% of gasoline-fueled vehicles
and cost. The country has about 50 to electric by the same year.
million motorbikes and foreign brands
haven’t been prioritizing the two-wheeler On the four-wheeler front, the
EV segment. market has been luring a number of
Chinese players, who see it as a great
In July, US Treasury Secretary Janet opportunity. For instance, earlier this
Yellen paid a visit94 to Selex Motors, a year, Wuling launched a four-seater EV97
Vietnamese startup that manufactures starting at around US$10,000. Fellow
both two-wheeler vehicles and battery- Chinese automaker Great Wall Motor98
swapping systems. According to the said it plans to enter Vietnam with its
company, its battery-swapping solution own hybrid EV model this year as well.

Blockchain The rise of Sky Mavis, the blockchain

gaming firm behind Axie Infinity, has
the use of central bank digital currencies
(CBDCs).
elevated Vietnam’s tech sector to new
heights. Last year, the Ministry of Home And despite a generally weaker market
Affairs launched the Vietnam Blockchain compared to 2021, local consumers
Union99, a legal entity meant to further still remain bullish on crypto. Last year,
develop the local ecosystem. around 6 million people102 - or 6% of
the population - owned some form of
This could lead to huge returns in the crypto asset. Many see it as a path to
coming years. Estimates show that by financial freedom and there is a strong
2030, the blockchain sector could create culture around it - word of mouth about
40 million jobs100, with about 10% to 20% which crypto tokens to purchase spreads
of the country’s economic infrastructure quickly.
running on blockchain tech.
According to a survey by Decision Lab103,
Additionally, the government has already 53% of respondents expect to invest
started exploring the creation of a digital more in crypto this year. This makes it
currency. This year, the State Bank of the second most popular investment
Vietnam - along with other government vehicle, coming only behind traditional
agencies - held a training course101 on savings.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 33
Looking ahead

Several challenges exist for the Vietnamese tech sector.

While the government has announced regulations China’s108 - and its close proximity to the country.
that could spur further development, many of these
initiatives haven’t taken shape and only exist on paper. Another reason for firms turning to Vietnam is the
A decree on the fintech sandbox, for instance, just had geopolitical tensions between China and the US,
its second draft104 proposed last year. which could pose potential issues to supply chains.
The relationship between other regions and China has
For local firms, it’s also tough to see the road toward also gotten worse109, leading to companies from those
an IPO given that they have to contend with many regions considering Vietnam instead. For example, the
complications and tough regulations105. Even some of European Union imposed sanctions on China110 over
the most successful companies have looked overseas reported human rights abuses in Xinjiang.
instead - VinFast, for example, listed in the US this
year106. Apple already has plans to expand manufacturing
capabilities111 in Vietnam, while Samsung recently
That said, there is still much to look forward to. opened Southeast Asia’s largest research and
development center112 in the country.

One of the major Additionally, Singapore sovereign wealth fund GIC is

developments for Vietnam looking to invest more in Vietnam113 for similar reasons
to those mentioned above.
in the coming years is the
strengthening of its position With these developments in mind, the government has
as a global manufacturing already announced several plans114 to support further
growth in the country’s manufacturing ecosystem.
hub for both older sectors as
well as the tech industry. These include encouraging local governments to invest
resources, implement policies, and create program
China will play a huge role in this through what is known initiatives to “promote the expansion and upgrade
as the China plus one strategy107. This refers to the idea prioritized supporting sectors.” The central government
of large foreign companies diversifying manufacturing is also looking at providing financial incentives for the
capabilities beyond China, with Vietnam being a prime sector through favorable interest rates and more short-
alternative due to low labor costs - even cheaper than term loan availability.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 34
 Malaysia

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 35
 Funding (US$ millions)

Source: Tech in Asia data

Unicorns and notable startups

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 36
Market opportunities

Cost-effectiveness has to be top of mind for anyone Malaysia also offers the DE
looking at the Malaysian market. This is even more
prominent when comparing it to its neighbor, Singapore.
Rantau118, which is meant to
With a lower cost of living115, Malaysia is an attractive help establish the country
place to set up shop and recruit talent.
as the preferred destination
Many citizens are multilingual, with several for Southeast Asia’s digital
reasons116 - such as cultural preservation and global
competitiveness - espoused by the population to
nomads. The visa allows
support the use of English, Malay, and Mandarin. holders to work from
Additionally, its population of 33 million is spread among
highly diverse geographical terrain, which makes the
Malaysia for a year, with the
country a great place to test new ideas and products. option to renew it for another
year. The effort should
The government has also made great efforts to promote
the country as a tech hub. This includes initiatives on the help the local tech startup
talent side, with Malaysian Economy Minister Rafizi Ramli
ecosystem develop even
announcing that the expat visa application process will
be shortened from three months to five days117. further.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 37
Key verticals of interest

Fintech The biggest development for Malaysia’s

fintech space has been the approval119
It moved swiftly, announcing in October
2022120 that it plans to launch its digital
- given in April last year - of five banking platform by the second half of
consortia to launch digital banks in the this year.
country. Three consortia are licensed as
conventional banks, while the other two There are other developments on the
are Islamic banks. Islamic fintech front as well. Recently,
the Securities Commission Malaysia
One of the digital banks licensed under launched an accelerator program121 for
the conventional Financial Services Act companies in the sector, with the first
is led by a consortium formed between cohort beginning in August.
Boost Holdings and RHB Bank.

Drone Malaysia has its fair share of stars in

the drone tech industry, with firms like
Accelerator for Technology and
Innovation. The Universiti Kebangsaan
tech Aerodyne Group and Meraque ranking Malaysia has also launched an
first and 18th122 in the world, respectively, incubator124 exploring the use of drones
according to Drone Industry Insights. The in sports.
country currently ranks 21st on the Drone
Readiness Index and the local industry With this solid foundation in place, large
is expected to reach a market value companies like DHL125 have begun
of US$2.7 billion123 - 4.3% of the global exploring how to incorporate drone
market share - this year. tech into their operations such as in last-
mile delivery services. Telecom player
Several initiatives have contributed to Axiata126 has begun using drones to
its stellar showing in this sector. For one, repair communications towers as well -
there are four sandboxes for drone firms this is a great opportunity, considering
to test their solutions, with one of them that Malaysia has roughly 40,000 telco
being run by the Malaysia Research towers127.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 38
 Electric Earlier this year, Malaysia’s minister for
natural resources, environment, and
can enjoy sales tax and excise duty
exemptions.
vehicles climate change said that the country is

and targeting to reach a total of 1.5 million

EVs by 2040128.
All told, these measures bode well for
the country, with EV sales forecasted to
climate increase by 45.6% this year to reach an

tech To achieve that goal, the government has

introduced several initiatives, such as
annual sales volume of 4,449133. Total EV
sales as a percentage of total vehicle
reducing the road tax129 for EVs. Electric sales is also predicted to exceed 1% next
vehicles will also get a special number year.
plate to further promote adoption of the
technology in the country. On the greentech front, Bank Negara
Malaysia will provide a US$440 million
In addition, the government has financing facility134 to support startups in
introduced a US$550 subsidy130 the sector and help SMEs transition to
for consumer purchases related to more sustainable operations.
EV charging infrastructure. It has
also removed the import duties for Additionally, Khazanah Nasional, the
completely built-up EVs131 until the end of country’s sovereign wealth fund, will
this year. provide US$33 million to support
environmentally friendly projects. The
Lastly, owners of completely knocked- Green Technology Financing Scheme135
down EVs132 will not need to pay import will also have its guarantee value
duties until the end of 2025 and increased to US$660 million until 2025.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 39
Looking ahead

The next few years may see year, Khazanah Nasional announced the launch of the
Future Malaysia Programme139, an initiative that commits
Malaysia deepening its ties US$1.3 billion over five years to support the local startup
with China, which could pave ecosystem.

the way for further Chinese There’s also much in the way of establishing further 5G
investment in the country. connectivity in the peninsula, with a task force formed to
ensure that coverage reaches 80%140 in populated areas
At present, the East Asian by early 2024.
country is Malaysia’s top
While the country is doing much to encourage
trading partner136, with trade development, there are still some things it has to iron
worth over US$200 billion last out. For one, its stock exchange hasn’t always been
the first choice for local tech firms to list, as much of
year.
the capital is illiquid and it’s somewhat restrictive in its
regulations - for example, not allowing the issuance of
Malaysian Prime Minister Anwar Ibrahim has already
dual-class shares.
made his first official visit to China137 earlier this year.
Chinese tech majors are also eyeing a piece of the
It’s also got to contend with questions surrounding
Malaysian pie - in 2018, Alibaba opened its first
its political stability141 as well as corruption142 and
Southeast Asian office138 in the country.
cronyism143.

That said, Malaysia has generally been careful about

Last but not least, local tech talent has been getting
remaining neutral. It will need to find a balance between
harder to find as many Malaysians look overseas for
courting China and maintaining a good relationship with
better education and career opportunities - specifically
the US and other western economies.
Singapore, which has been on the receiving end of
Malaysia’s brain drain.
Zooming in, there are concrete plans to pump more
resources into the country’s tech ecosystem. Earlier this

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 40
 Thailand

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 41
 Funding (US$ millions)

Source: Tech in Asia data

Unicorns and notable startups

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 42
Market opportunities

Thailand has made significant inroads toward reducing income inequality over the past
few decades.

Its Gini coefficient - the measure used to gauge income

inequality, with 0 being the most equal and 100 being
the most unequal - has been steadily dropping144. The
figure stood at 35.1 in 2021, an improvement from 36.4
in 2018.

Thailand now ranks fourth145

among ASEAN countries in
terms of income inequality,
indicating a growing middle
class that’s also bolstering
the local consumer market.
On top of that, its internet penetration rate, has
increased from 71% in 2020 to 77% this year146, while the
smartphone penetration rate has gone up from 54.3% to
68.5% over the same period147.

This momentum carries over into its startup scene as

well, with four unicorns emerging in just the last two
years: Ascend Money, Flash Express, Bitkub, and Line
Man Wongnai. It’s a distinctly positive reflection of the
state of startup investments in Thailand, which has been
on the up as well. Last year, total startup funding in the
country hit US$514 million148, an all-time high.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 43
Key verticals of interest

Healthtech Healthtech is a key area of opportunity

for startups in Thailand, given the
Additionally, the country’s population
is aging151. Coupled with a shortage of
country’s status as a world-class doctors152 outside major cities, there
destination149 for medical treatment as are ample opportunities for healthtech
well as being the top choice for medical startups to develop solutions that can
tourists150. plug this gap.

It follows that the country has readily All told, the local healthtech industry
developed infrastructure and expertise is expected to grow 15% this year153,
surrounding the healthcare industry. according to the president of the Thai
It’s also a good testing ground for new Health Tech Association.
technologies in the sector.

Ecommerce Online retail in Thailand continues to

grow at a steady pace. The country’s
and social commerce. Purchases
made through social media channels
ecommerce sector is expected to accounted for roughly US$5.9 billion156
jump by 13% this year154 to reach a total of total ecommerce sales last year.
valuation of US$17.5 billion, or roughly
16% of Thailand’s total retail market. Of particular note is that sales made
through livestreaming amounts to
Other projections also bode well for the around US$1.5 billion each year,
sector, with the number of ecommerce according to Paul Srivorakul, co-founder
users projected to hit 43.5 million155 by 2025. and group CEO of ecommerce enabler
aCommerce.
Much of the focus is on livestreaming

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 44
 Agritech Thailand has long been a key figure in
the global agriculture landscape, which
on new agritech solutions and innovative
ideas.
opens a lot of doors when it comes to
agritech innovation. The government has also lent its
weight in this area, having introduced
The agriculture sector contributes about several incentives159 to invest in various
a tenth of the country’s overall GDP157 agritech verticals. Companies involved
and employs a third of its total labor in smart farming, for instance, can enjoy
force. While this is less than ideal for its exemption of import duties on machinery
current position, it also means that there and raw materials, among other benefits.
are a lot of opportunities for agritech Other innovations that the government
solutions to come in and fill the gaps. is promoting include plant-based
meats, protein powders processed from
On top of that, there’s a growing number insects, and data analytics platforms for
of younger entrepreneurs entering the agriculture operations.
industry and willing to take a chance158

Fintech The fintech sector is another bright spot

for Thailand, given that many consumers
Digital currencies are also making
headway in the country, with support
have taken a liking to digital solutions from the Bank of Thailand. The central
- 68.1% of internet users160 used mobile bank has announced plans to pilot a
banking apps monthly in 2020. retail CBDC162, with other major financial
institutions like Siam Commercial Bank
And while cash is still king, digital supporting the endeavor.
payment solutions have performed well.
A survey conducted by UOB161 found that Startup growth has been great as well,
70% of consumers use mobile banking with the number of fintech startups
apps to make purchases. This puts the increasing from 181 in 2017 to 268 in
payment method ahead of even debit 2021163. Transaction values have also
and credit cards, which were used by surged from US$710 million in 2017 to
only 43% of respondents. US$12.4 billion in 2022164.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 45
Looking ahead

While Thailand’s tech ecosystem might be in a good place, external factors could trip it
up if stakeholders aren’t careful.

For one, the country may be seen as less politically It should also be noted
stable165 compared to its ASEAN neighbors like
Singapore and Vietnam. While the government has
that CVC funding, while
rolled out initiatives166 to promote startup development, still valuable in its own
regulatory hurdles167 may disincentivize potential
founders from establishing their businesses in the
right, could potentially
country. stifle innovation within
Additionally, while overall funding may seem decent,
the tech sector, given
there’s a lack of early-stage investments. A large that large corporations
proportion of total startup funding in Thailand comes
from corporate venture capital (CVC) firms168 that focus
generally leave less room
on later-stage rounds, which means that younger for experimentation and
businesses may have difficulty to get the support they
focus more on strategic
need to expand.
investments.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 46
 Philippines

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 47
 Funding (US$ millions)

Source: Tech in Asia data

Unicorns and notable startups

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 48
Market opportunities

Many of the advantages

present in the Philippines
echo those of Indonesia.
It’s got an extremely large
population - as of 2021, there
were roughly 110 million
inhabitants169, making it the
second-biggest market in
Southeast Asia.
Further, the population is largely English-speaking, with
it being one of the national languages. This, in turn,
provides a much lower barrier to entry for tech firms
compared to neighboring markets as talent is more
likely to be on common ground.

Another thing of note is that the country has a significant

unbanked population. According to the central bank’s
2021 Financial Inclusion Survey170, 44% of the adult
population is considered unbanked, which it defines
as not owning a formal financial account. This should
provide a lot of opportunities for growth and innovation,
especially within the fintech sector.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 49
Key verticals of interest

Ecommerce Unsurprisingly, having a large population

means that ecommerce spending is
fashion, and food.

strong, leading to significant growth in Social commerce and “shoppertainment”

the sector. are also on the rise. Kumu is a major
name in the sector, having secured
From 2021 to 2022, the ecommerce US$73.7 million173 in a series C round
sector’s market value in the country rose early last year. Joining it is fellow
31.3%171 from US$7.5 billion to US$9.8 ecommerce player GrowSari, which
billion. Most ecommerce purchases raised a total of US$77.5 million174 in
fall under the electronics category172, series C money as of March 2022.
followed by beauty and personal care,

Fintech The Philippines has a long history with

digital and mobile payments, even going
volume in the country.

back to the early 2000s. In 2001, local The majority of Filipinos are also open
telco Smart Communications launched to the idea of digital banks, with 60%
a mobile money solution called Smart saying they would consider banking
Money175. A few years later, competitor with one178. Most cited reasons such as
Globe Telecom launched a similar better rates and promotions, wanting to
solution called GCash. try something new, and benefits for other
online services.
Being early movers in the space has paid
dividends for the two telcos. Globe is With these factors, funding in the
the owner of mobile payment and credit fintech sector has been bountiful. Total
service Mynt, one of two fintech unicorns investments in the first half of 2021
in the country and also the firm that runs reached US$342.1 million179, more than
GCash, which is now a mobile wallet. twice the amount from the same period
Meanwhile, PLDT - which owns Smart in 2020. The biggest deals that year
Communications - is an investor in fellow went to Mynt and Voyager, which raised
fintech unicorn Voyager, which runs the US$175 million and US$167 million,
e-wallet PayMaya. respectively.

With many years of development already The top three fintech firms in the country
established, it’s no surprise that fintech in terms of funds raised have done
solutions have seen strong growth and extremely well for themselves. According
adoption from consumers. In 2021, 36% to Tech in Asia data, total historical
of Filipino adults176 owned an e-money funding stands at US$712 million for
account, up from just 8% in 2019. Voyager, US$475 million for Mynt, and
Subsequently, the Bangko Sentral ng US$312 million for Coins.ph, which
Pilipinas estimates that by the end of includes a US$200 million M&A deal
this year, online purchases will make up with Gojek.
around 50%177 of total retail transaction

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 50
 Crypto The crypto and Web3 sector has also
been a bright spot in the country, with a
the digital investment platform of choice
for Filipino consumers. It’s followed by
and Web3 strong interest from the consumer side traditional online brokerage platforms
as well as a thriving startup ecosystem. (25%) and online-only trading platforms
(16%).
Interestingly, many consumers
have begun using cryptocurrency These factors have put the country
platforms for wealth management. In in second place in Chainalysis’ 2022
a survey conducted by UOB, 33% of Global Crypto Adoption Index181, coming
respondents180 used a crypto exchange in behind Vietnam.
for investments, the second-highest rate
in Southeast Asia after Thailand. Further, Other areas of the Web3 sector have
48% said they trusted crypto, which benefited from this activity as well. For
is significantly more than the ASEAN example, the Philippines has the highest
average of 39%. interest in Web3 gaming182 for the last
three years running.
This has led to crypto exchanges being

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 51
Looking ahead

The Philippines might have laid out some nice plans but Lastly, business conditions
there are still many things to take note of. For one, it’s
still quite a nascent market - the stellar growth it’s had
are still challenging for new
in certain areas may not be fully indicative of its current firms. For instance, the
situation.
Philippines is ranked as one
For instance, the two fintech unicorns - Mynt and of the costliest markets185 to
Voyager - are corporate-backed, meaning that there
hasn’t been a startup from the industry that’s organically
launch a startup. In addition,
hit the billion-dollar valuation mark. And like in many while overall salaries may
cases even outside the Philippines, corporate backing
can lead to innovation being stifled in the process of
be more affordable for firms,
maximizing strategic decisions. a low quality of life score
means that there could be
Additionally, 46% of local VCs183 were only established
in the last three years, which means that they may lack other troubles that employers
the necessary experience to take the local startup
will have to deal with, such
ecosystem further.
as employee unhappiness,
Another issue is that while the country’s digital which could result in high
penetration rates are growing, poor infrastructure184 still
hinders progress. There is still much ground to cover turnover.
before startups can fully take advantage of consumer
interest and deploy their solutions en masse.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 52
 Southeast Asia
and the Public
Markets

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 53
SEA Marks the Spot l The 2023 Tech in Asia Conference Report 54
In the last few years, some of Southeast Asia’s largest tech companies have made the leap and debuted in the public market.
Here’s an overview of these firms, their first trading days, and their opening share prices (numbers taken from Yahoo
Finance):

October 20, 2017 US$16.25

August 6, 2021 IDR 1,055 (US$0.059)

October 1, 2021 US$20.95

December 1, 2021 US$11.89

March 18, 2022 US$8.61

April 11, 2022 IDR 400 (US$0.024)

Currency converted from Indonesian rupiah to US dollar: US$1 = 15,153 rupiah.

Let’s take a look at how they’ve performed as a whole.

A change in focus

Playing on the public stage has shifted these firms’

priorities. Profitability is king, which means cuts to
incentives and marketing expenses as well as lower
revenue growth.

For example, Sea Group’s revenue jumped 5% from Q1

2022 to Q1 2023 - a world of difference from the 64%
growth it achieved between Q1 2021 and Q1 2022. It
was the same story for GoTo Group, whose Q1 2023
revenue was up 14% year on year, a slowdown from the
53% surge it experienced in the same period the year
before186.

On the earnings front, Sea Group achieved a positive

EBITDA in Q4 2022, while Grab and GoTo Group are
both aiming for EBITDA breakeven by Q4 2023. Sea
Group also became net income positive in Q4 2022,
while in GoTo Group’s and Grab’s cases, that milestone
is still a way off, with no current guidance or visibility on
when they’ll reach it187.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 55
Timing and circumstance

Returns since IPO

Days since IPO

All these changing numbers and the uncertainty that comes with them have been
reflected in the mediocre performances of the tech firms’ shares since their public
debuts.

Again, this comes with the new territory - the public Other factors have contributed to the lukewarm results
market looks for and rewards predictability in a so far. Apart from Sea Group, which listed in 2017, these
company’s performance as it lowers the total risk of a Southeast Asian firms went public just as the tech
business188. bubble was bursting. This means that their performance
has followed the general market downtrend.
Predictability, as you are no doubt aware, isn’t an
inherent feature of tech firms, especially those coming
from the relatively nascent Southeast Asian market. It
could take a while for them to achieve the desired level
of stability in their operations.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 56
Additionally, year-to-date, these firms have lagged Additionally, the profiles of these companies are fairly
behind the Nasdaq, although the latter’s performance similar - they are all B2C-focused players of comparable
may be attributed to the handful of the biggest US tech sizes. Having firms from other industries and of
companies that have benefitted from the optimism different sizes join their ranks would provide a more
around AI. While Grab and Sea have talked about the comprehensive picture of Southeast Asia’s potential on
potential of generative AI in their respective businesses, the public market.
they have not “caught the AI wave,” as it were.
On another tack, the financial implications of the layoffs
There have also been talks of dual listings - Sea Group conducted by Grab191 and GoTo Group192 are yet to be
and Grab, for example, have reportedly been courted fully seen. Sea Group, which was the first of the region’s
by SGX officials189. However, their respective share listed tech firms to have significant layoffs, appears to
price dips dampen any enthusiasm to raise money at have come through the period of downsizing looking
current valuations. The adverse market conditions have pretty, with existing employees eligible for 5% raises193
also caused other potential listings, such as that of starting in July.
personal finance comparison website MoneySmart, to
fall through190. One silver lining for the overall picture? The stock price
of Sea Group, the one that’s been public the longest, is
up by 266% (as of August 5, 2023) from when it listed
That said, experts emphasize despite the upheaval and uncertainty of the current
that it’s still very early days. wintry macroeconomic climate.

There are only a handful

of Southeast Asian public
tech companies and there
is arguably not enough
information to form any solid
conclusions, with most of
these firms only being public
for less than two years.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 57
More growing pains

Maintaining the balance efforts have yet to make a material impact on growth or
profitability, all while requiring large investments to build
between profitability and and maintain. Whether the listed tech firms find a way
growth is a tough, fine line to to make these efforts work or not will greatly influence
their market performance.
walk. Previously, investors
demanded profitability - to Another piece of the pie that becomes magnified on
the public stage is that of succession. PropertyGuru,
achieve this, companies had Bukalapak, and GoTo Group have already transitioned
to take steps like cutting back beyond being helmed by their founders, while Grab, Sea
Group, and TDCX remain founder-led.
on incentives that inevitably
hurt revenue growth. Now, There are certain benefits to being founder-led - for
example, it may be easier and quicker to make tough
investors are fretting over
decisions such as pivoting the company’s direction.
slowing growth. It’s a difficult However, these firms will have to assure investors that
balancing act. the risk for this “key person” is accounted for - is it
clear who will take over if anything happens to Anthony
Tan or Forrest Li? And do these individuals have the
These firms have also been trying to make inroads into
confidence of investors?
the financial services sector, which presents greater
opportunities and fatter margins. However, these

What this at “only” US$14 billion (as

of August 5, 2023), then how
means for much is the average Joe
startup really worth?
the rest of Additionally, these firms’ tighter grasp and focus on their

Southeast
financials could also affect their ability to provide capital
to the rest of the regional ecosystem. For example, Sea
Group wound down its investment arm194 in June. On a

Asia similar note, M&As are also less likely.

Investments aside, the drive for profitability also affects

regular business partners. As part of its cost-cutting
efforts, Sea Group made huge cuts to its sales and
There are trickle-down effects marketing expenses. While it didn’t specify what these
cuts entailed, this may have reduced the freebies
from these companies’ and discounts on its ecommerce platform Shopee,
market performance. For one, potentially affecting - for example - the third-party
logistics companies it is working with.
the decline in public market
values also impacts the That said, there is another silver lining - the layoffs at
these big companies may benefit smaller tech startups,
valuations of private startups. which now have a larger pool of talent to hire from.
If a giant like Grab is valued

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 58
Conclusion
In many ways, it’s still early days for Southeast Asia.

The region’s tech and startup scene as we know it has While the current economic
only been around for just over a decade. The current
economic uncertainty is the first time that Southeast
situation may seem bleak, it
Asian tech companies are truly encountering a crisis of also provides an opportunity
this order. There’s a lot of uncertainty on how startups
will fare across different economic cycles and events.
to reset and reevaluate. The
companies that weather
Regardless of the broader global circumstances,
Southeast Asia’s fundamentals are as strong as ever.
this storm will come out of
Its youthful population, large market size, openness it much stronger and more
to digital solutions, and the tremendous opportunities
for tech to make a difference remain unchanged. Plus,
resilient for the future.
Southeast Asia’s diversity means that companies that
We’re confident that Southeast Asia will continue to be a
successfully scale across the region know how to build
bright spot in the tech world as it develops and grows in
for different markets, laying the foundations for them to
the future - and we’re looking forward to what the road
build for the world.
ahead holds.

Areas such as fintech, agritech, and greentech -

especially with regards to electric vehicles - are
expected to see significant growth in the next few years.
While Singapore and Indonesia will likely continue to
dominate conversations around regional startup growth,
other markets are also coming up, such as Vietnam.

Challenges certainly abound - how Southeast Asia

chooses to navigate and address them will inform how
the region’s tech and startup landscape unfolds over the
next 10 years and beyond.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 59
SEA Marks the Spot l The 2023 Tech in Asia Conference Report 60
Endnotes
1 Q.ai. “Why Were Tech Stocks down in 2022—and How Long Will the Slump 36 “MAS Launches Finance for Net Zero Action Plan.” Monetary Authority of
Last?” Forbes, January 20, 2023. Singapore, April 20, 2023.

2 Kilpatrick, Christine. “The Party’s Still Over: The VC Downturn in 6 Charts.” 37 Taufik, Shadine. “The Key Players in SEA’s Agritech Space.” Tech in Asia, March
Crunchbase News, April 18, 2023 6, 2023.

3 Teare, Gené. “Global Venture Funding Fell Last Quarter for the First Time in a 38 Tay, Tian Wen. “Singapore’s Agritech Vision Hits Speed Bumps.” Tech in Asia,
Year. How Significant Is That?.” Crunchbase News, April 5, 2022. August 23, 2022.

4 Chiang, Sheila. “Southeast Asian Venture Capital Firms Expect to be Pickier in 39 Tan, Audrey. “Budget 2021: New $60m Agri-Food Cluster Transformation Fund
2023 than in 2022” CNBC, December 20, 2022. to Boost Local Production through Technology.” The Straits Times, February 16,
2021.
5 Tech in Asia data.
40 Tay, Tian Wen. “Singapore’s Agritech Vision Hits Speed Bumps.” Tech in Asia,
6 Taufik, Shadine. “Asia Layoff Tracker: Grab Lays off 1,000 to Manage Costs.” August 23, 2022.
Tech in Asia, June 21, 2023.
41 Quek, Eunice. “Plant-Based Impossible Pork to Launch across More than 120
7 Akhtar, Usman, and Suvir Varma. “Sea Private Equity Deal Activity Slowed in Restaurant Outlets across S’pore.” The Straits Times, November 17, 2021.
2022 but Macro Fundamentals Remain Robust.” Bain & Company, April 20,
2023. 42 Chong, Clara. “Steps Being Taken to Meet Biotech Manpower Needs, with
Sector Expected to Grow by 8% per Annum: Low Yen Ling.” The Straits Times,
8 Fox, James. “Asean Economic Outlook 2023.” ASEAN Briefing, January 3, 2023. February 3, 2023.

9 Furtado, Collin. “VC Funds Tracker: Vertex Bags $900m in First Close of New 43 Teo, Grace. “Singapore-Based Mirxes Eyes Hong Kong IPO at $600m
Fund.” Tech in Asia, July 11, 2023. Valuation.” Tech in Asia, July 26, 2023.

10 Sri, Deepti. “A List of SEA’s Unicorns and Their Early Investors (Updated).” Tech 44 Abudheen, Sainul. “Mirxes Lands US$50M to Take Its Cancer Early Detection
in Asia, May 25, 2023. Solutions to New Markets.” e27, July 26, 2023.

11 Furtado, Collin. “VC Funds Tracker: Vertex Bags $900m in First Close of New 45 Tariq, Qishin. “Biofourmis Turns Unicorn after $300m Series D.” Tech in Asia,
Fund.” Tech in Asia, July 11, 2023. April 27, 2022.

12 “South-Eastern Asia Population (Live).” Worldometer. Accessed July 28, 2023. 46 “Asia Pacific Personalised Health Index.” FutureProofing Healthcare. Accessed
August 4, 2023.
13 Kim, Aimee, Paul McInerney, Thomas Rudiger Smith, and Naomi Yamakawa.
“What Makes Asia−Pacific’s Generation Z Different?” McKinsey & Company, 47 Frizberg, Rachel. “Singapore Leads the Region in Personalised Health
June 29, 2020. Innovation.” EDB Singapore, April 11, 2022.

14 Sutrisno, Gabriel Budi. “Gen Z: The New Force in the Indonesian Market.” Tech 48 Lim, Louisa, and Venessa Lee. “Coping with High Rents: Expats Vote with Their
in Asia, April 26, 2023. Feet or Buy Their Own Place.” The Straits Times, June 3, 2023.

15 Iwamoto, Kentaro. “Southeast Asia Eclipses China as World’s Mobile Economy 49 Zalizan, Taufiq. “Amid Soaring Rentals, 7 in 10 Firms Ready to Move Expat Staff
Hot Spot.” Nikkei Asia, February 12, 2019. Overseas: Survey.” Today, March 27, 2023.

16 Okeleke, Kenechi, Stefano Suardi, Emanuel Kolta, and James Joiner. The Mobile 50 Ramli, David. “Rich Chinese Splashing Out on Luxury Have Yet to Invest Big in
Economy Asia Pacific 2022. GSMA Intelligence, July 2022. Singapore.” Bloomberg, April 10, 2023.

17 Ibid. 51 Lin, Chen. “Exclusive: Chinese Fashion Firm Shein on Singapore Hiring Spree as
It Shifts Key Assets There.” Reuters, February 16, 2022.
18 von Kameke, Leander. “GDP Growth Rate SEA 2017-2024, by Country.” Statista.
Accessed July 28, 2023. 52 O’Neill, Aaron. “Total Population of the ASEAN Countries from 2018 to 2028.”
Statista, April 2023. Accessed August 8, 2023.
19 OECD Development Centre. Economic Outlook for Southeast Asia, China and
India 2023: Reviving Tourism Post-Pandemic. OECD, March 2023. 53 “Indonesia Summary.” Encyclopaedia Britannica. Accessed August 4, 2023.

20 Asia Partners. Asia Partners 2023 Southeast Asia Internet Report. Asia Partners, 54 Supriyadi, Aileen, and Jason Tjiptadi. “Inflation and Election Uncertainty
January 2023. Will Weigh on Indonesian Consumers in 2023.” Euromonitor International,
December 27, 2022.
21 Ibid.
55 “Indonesia’s Economy Grows by 5.31% in 2022.” Cabinet Secretariat of the
22 Bharadwaj, Aparna, Justine Tasiaux, and Vaishali Rastogi. “Beyond the ‘Crazy Republic of Indonesia, February 7, 2023.
Rich.’” BCG Global, November 2, 2018.
56 Siregar, Kiki. “As Indonesia Prepares to Move Its Capital to Kalimantan, Some
23 Suruga, Tsubasa. “Asean Startups Face Talent Crunch despite Tech Layoffs: Civil Servants Are Reluctant to Relocate.” CNA, March 13, 2022.
Study.” Nikkei Asia, April 4, 2023.
57 Medina, Ayman Falak. “Indonesia Passes Bill to Build New Capital City: Deadline
24 Manantan, Mark. “Mind the Gap: How Southeast Asia Can Make the AI Leap.” 2024.” ASEAN Briefing, January 25, 2022.
The Diplomat, October 23, 2020.
58 Pahlevi, Reza. “APJII: Penetrasi Internet Indonesia Capai 77,02% Pada 2022.”
25 Lim, Kuo-Yi. “5 Questions LPs Often Ask Me about Venture Capital in Southeast Databoks, June 10, 2022.
Asia.” Monk’s Hill Ventures, July 31, 2019.
59 “Why Tier 2 and 3 Cities Hold The Key to Digital Growth in Indonesia.” Alpha
26 Filipovski, Brendan. “Singapore - the Leading Financial Centre in the Asia- JWC Ventures, April 13, 2021.
Pacific Region.” Capital Finance International, January 4, 2023.
60 “Transaksi Digital Meningkat Selama Ramadhan dan Jelang Lebaran.”
27 Ibid. Kumparan Bisnis, April 20, 2023.

28 “Singapore - Taxes on Corporate Income.” PWC. Accessed August 2, 2023. 61 Google, Temasek, and Bain & Company. E-Conomy SEA 2022. Google, 2022.

29 Enache, Cristina. “Corporate Tax Rates around the World, 2022.” Tax 62 Behera, Roshan. “Indonesia Ecommerce: The Metamorphosis Continues…”
Foundation, December 13, 2022. Redseer, June 25, 2023.

30 Ang, Prisca. “Singapore Payments Scene Grows, with around 150 Firms Getting 63 Wisnuwardani, Rani. “Lazada Indonesia Launches Initiative to Strengthen Digital
Licences from MAS.” The Straits Times, June 19, 2023. Economy in West Java.” LazBeat, February 14, 2022.

31 Monetary Authority of Singapore. “MAS Launches Financial Services Industry 64 “#MarketingEventsAwards 2021 Highlight: Lazada Indonesia Launches Game
Transformation Map 2025.” Monetary Authority of Singapore, September 15, Plan to Reach an Untapped Audience.” Marketing-Interactive, November 16, 2021.
2022.
65 Yordan, Jofie. “Can TikTok Shop Catch up with Shopee, Tokopedia in
32 Ibid. Indonesia?” Tech in Asia, June 15, 2023.

33 Chor, Khieng Yuit. “More Family Offices Setting up Base in Singapore, above 66 Momentum Works. Ecommerce in Southeast Asia 2023. Momentum Works,
Pre-Pandemic Numbers: Acra Data.” The Straits Times, May 23, 2023. June 2023.

34 “Our Targets.” Singapore Green Plan 2030. Accessed August 3, 2023. 67 Pratama, Aditya Hadi. “Mapping Indonesia’s Key Agritech Players.” Tech in Asia,
December 20, 2022.
35 “Our EV Vision.” Land Transport Authority. Accessed August 3, 2023.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 61
Endnotes
68 Baharudin, Hariz. “Agri-Tech Start-Ups Reinventing Farms to Boost Indonesia’s 102 Thu, Huong Le. “Explaining Vietnam’s Crypto Boom.” Tech in Asia, January 19,
Agriculture Sector.” The Straits Times, April 2, 2023. 2022.

69 Wiradji, Sudibyo. “Grassroot Strategy to Realize Financial Inclusion in 103 “Winning Financial Consumers during Uncertain Times.” Decision Lab, June 2023.
Indonesia.” The Jakarta Post, April 15, 2021.
104 “Regulatory Fintech Sandbox for Banking Activities Proposed.” Vietnam Law
70 “What Does Indonesia’s Fintech Scene Look Like in 2023?” Fintech News and Legal Forum Magazine, April 29, 2022.
Singapore, May 2, 2023.
105 Thu, Huong Le. “Why Vietnam Is Missing out on SEA’s IPO Party.” Tech in Asia,
71 Ibid. December 17, 2021.

72 Ibid. 106 Cordon, Miguel. “VinFast to Close SPAC Deal in August at $23b Valuation.”
Tech in Asia, July 31, 2023.
73 Cosseboom, Leighton. “AC Ventures and AEML Release Top Report on
Indonesia’s Electric Vehicle Outlook.” AC Ventures, July 3, 2023. 107 Samuel, Pritesh. “Vietnam’s Diversification of Trade and the China Plus One
Strategy.” Vietnam Briefing, June 3, 2022.
74 “Indonesia Lowers VAT on Electric Vehicles to 1%.” Reuters, April 3, 2023.
108 Nguyen, Cece. “Why Manufacturing Is Driving Vietnam’s Growth.” Vietnam
75 Medina, Ayman Falak. “Indonesia Enacts First Personal Data Protection Law: Briefing, January 4, 2022.
Key Compliance Requirements.” ASEAN Briefing, October 12, 2022.
109 Hutt, David. “Why More European Firms Are Choosing Vietnam over China.”
76 Innis, Mark, and Adhika Wiyoso. “General Data Localization Requirements in DW, August 6, 2022.
Indonesia.” Baker Mckenzie, July 2018.
110 Emmott, Robin. “EU, China Impose Tit-for-Tat Sanctions over Xinjiang Abuses.”
77 “Indonesia to Reduce Logistics Costs to 17% from 24% by 2024.” Transport Reuters, March 22, 2021.
Intelligence, June 29, 2023.
111 Lovejoy, Ben. “Apple Manufacturing in Vietnam Expanding, Likely Including the
78 Von Kameke, Leander. “Median Age of the Population in Southeast Asia in 2023 Mac Pro.” 9to5Mac, February 16, 2023.
2020, by Country.” Statista, October 2020. Accessed August 8, 2023.
112 Nguyen, Dat. “Vietnam Emerges as High-Tech Manufacturing Hub.” VnExpress,
79 Von Kameke, Leander. “Median Age of the Population in East Asia in 2021, by December 31, 2022.
Country or Territory.” Statista, July 2022. Accessed August 8, 2023.
113 Suruga, Tsubasa. “Singapore’s GIC Eyes India, Indonesia, Vietnam amid China
80 Nguyen, Minh-Ngoc. “Total Population in Vietnam from 2012 to 2022.” Statista, Pivot.” Nikkei Asia, June 26, 2023.
June 2023. Accessed August 8, 2023.
114 Nguyen, Trinh. “Vietnam Approves Resolution 115 on Promoting Supporting
81 “Vietnam.” Think With Google. Accessed August 8, 2023. Industries.” Vietnam Briefing, August 26, 2020.

82 Nguyen, Minh-Ngoc. “Ownership of Devices among Internet Users in Vietnam 115 Toh, Ee Ming. “Bye Singapore, Hello Malaysia: Expats Chase Cheaper Living
as of 3rd Quarter 2022, by Device.” Statista, 2022. Accessed August 8, 2023. Costs.” Al Jazeera, June 5, 2023.

83 “Smartphone Users in Southeast Asia, by Country, 2021-2026.” Insider 116 Pillai, Stefanie, Surinderpal Kaur, and Meng Huat Chau. “The Ideological Stance
Intelligence, March 1, 2022. of Multilingualism in Education in Malaysia in the Press 2000-2020.” Advances
in Southeast Asian Studies 14, no. 2 (December 31, 2021).
84 Glints and Monk’s Hill Ventures. The Southeast Asia Tech Talent Compensation
Report. Glints, 2021. 117 Tham, Lynelle. “Govt to Fast Track Expat Visa Applications.” Free Malaysia
Today, April 10, 2023.
85 “Rising Middle Class in Vietnam Driving New Trends of Consumption.“ Source
of Asia, October 27, 2022. 118 “DE Rantau.” MDEC. Accessed August 8, 2023.

86 Google, Temasek, and Bain & Company. “E-Conomy SEA 2022.” Google, 119 “Five Successful Applicants for the Digital Bank Licences.” Bank Negara
20223. Malaysia, April 29, 2022.

87 “Vietnam Innovation & Tech Investment Report 2023.” Do Ventures, 2023. 120 Chew, Elffie. “Malaysia’s RHB Aims to Launch Digital Bank in 2023, CEO Says.”
Bloomberg, October 31, 2022.
88 Thu, Huong Le. “Vietnam’s e-Wallet War Has Just Begun, and It Will Be Brutal.”
Tech in Asia, September 4, 2020. 121 “SC’s FIKRA ACE to Spur Islamic Fintech Innovation, Growth for ICM.” Digital
News Asia, June 27, 2023.
89 Thu, Huong Le. “Mapping Vietnam’s Latest Fintech Battlefield: Digital Lending.”
Tech in Asia, June 7, 2023. 122 Samarathisa, Emmanuel. “The Regulatory Hurdles Holding Back Malaysia’s
Drone Industry.” Tech in Asia, May 19, 2023.
90 Google, Temasek, and Bain & Company. E-Conomy SEA 2022. Google, 2022.
123 Bernama. “‘Malaysia’s Drone Industry Can Hit RM12.13 Billion in Market Value
91 Cordon, Miguel. “BNPL Major Atome Confirms Exiting Vietnam.” Tech in Asia, This Year.’” New Straits Times, February 13, 2023.
July 6, 2023.
124 Ibid.
92 Thu, Huong Le. “Ree-Pay Founder Says Vietnamese BNPL Startup is Up for
Sale.” Tech in Asia, July 12, 2023. 125 Yusof, Ayisy. “DHL Malaysia, Pen Aviation to Deliver Cargo via Drones.” New
Straits Times, October 20, 2021.
93 “Vietnam Buy Now Pay Later (BNPL) Market and Investment Report 2022-2028
Featuring Atome, Finazar, Fundiin, Wowmelo, Traveloka, Agoda, LITNOW, & 126 “Thayaparan S Sangarapillai.” Axiata Memories. Accessed August 8, 2023.
Sacombank.” GlobeNewswire, April 28, 2022.
127 Rep. “Malaysia Telecoms Industry Report 2022: Telecom Tower Infrastructure
94 “U.S. Treasury Secretary Janet Yellen Endorses Sustainable Mobility Solutions.” Getting a Boost from the Jendela Initiative.” Research and Markets, October 3,
Selex. Accessed August 8, 2023. 2022.

95 Hoang, Lien. “Vietnam EV Startup Powers Grab, Lazada Delivery via Battery 128 “Govt Targets 1.5 Million EVs in the Country by 2040, Says Nik Nazmi.” The Star,
‘ATMs.’” Nikkei Asia, May 26, 2023. March 29, 2023.

96 Agarwal, Vishal, Jonathan Deffarges, Bruce Delteil, Matthieu Francois, and 129 Zainuddin, Hafiz. “Electric Vehicles In Malaysia Will Get Special Number Plates
Kunal Tara. “Charting a Path for Vietnam to Achieve Its Net-Zero Goals.” And Cheaper Road Tax.” Says, July 4, 2023.
McKinsey Sustainability, October 14, 2022.
130 NST Business. “EV Sales in Malaysia to Expand Rapidly Due to Incentives to
97 Nguyen, Dat. “Chinese Company Launches Cheapest EV in Vietnam.” Boost Adoption: Fitch Solutions.” New Straits Times, December 1, 2022.
VnExpress International, June 29, 2023.
131 iMoney Editorial. “Do You Know the Difference between CBU and CKD Car
98 Cong, Yu, and Ding Yi. “China’s Great Wall Motor to Enter Vietnam amid Peers’ Models?” iMoney Malaysia, June 13, 2022.
ASEAN Push.” Nikkei Asia, July 4, 2023.
132 Ibid.
99 “Vietnam Blockchain Union Officially Launched.” Vietnam+, May 17, 2022.
133 NST Business. “EV Sales in Malaysia to Expand Rapidly Due to Incentives to
100 “Vietnam to Become Leader in Global Blockchain Industry.” Vietnam+, July 25, Boost Adoption: Fitch Solutions.” New Straits Times, December 1, 2022.
2022.
134 “Budget 2023 Speech.” Ministry of Finance Malaysia. Accessed August 8, 2023.
101 “Vietnam Conducts Training on Central Bank Digital Currency.” Asia Banking &
Finance, April 2023. 135 “Green Technology Financing Scheme - Home.” Green Technology Financing
Scheme. Accessed August 8, 2023.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 62
Endnotes
136 Chang, Bryan, and James Crabtree. “Anwar’s Trip to China and the Direction of 169 “Total Population of the ASEAN Countries from 2018 to 2028.” Statista, April
Malaysia’s Foreign Policy.” International Institute for Strategic Studies, May 15, 2023. 2023. Accessed August 21.

137 Goh, Norman. “Anwar’s Beijing Trip Highlights Economic Ties, South China Sea.” 170 Bangko Sentral ng Pilipinas. 2021 Financial Inclusion Survey. Bangko Sentral ng
Nikkei Asia, April 5, 2023. Pilipinas, 2021.

138 “Alibaba Group Opens First Southeast Asian Office in Malaysia.” Digital News 171 “The State of Philippine eCommerce.” ZhenHub, April 28, 2023.
Asia, June 24, 2018.
172 “Ecommerce - Philippines.” Statista, July 2023. Accessed August 8, 2023.
139 “Khazanah Launches Future Malaysia Programme under Dana Impak to Spur
the Local Start-up Ecosystem.” Khazanah Nasional, March 16, 2023. Khazanah 173 Pratama, Aditya Hadi. “General Atlantic Leads $74m Round of Livestreaming
Nasional. App Kumu.” Tech in Asia, January 25, 2022.

140 Bernama. “Task Force to Ensure Implementation of 5G, Smooth Transition to 174 Pratama, Aditya Hadi. “KKR Leads $32.5m Additional Raise into Philippine B2B
Dual Network.” New Straits Times, May 9, 2023. Ecommerce Firm (Updated).” Tech in Asia, March 29, 2022.

141 Chin, James. “Political Instability Reigns Supreme in Malaysia.” The Diplomat, 175 Hasnain, Sophia, Abigail Komu, and Christopher Blackburn. “Mobile Money
December 1, 2022. in the Philippines: Market Conditions Drive Innovation with Smart Money and
GCash.” GSMA, June 23, 2016.
142 “Anwar on Govt: Hard to Find Someone ‘Clean’, Many Involved in Graft.”
Malaysiakini, July 4, 2023. 176 Royandoyan, Ramon. “BSP: Half of Filipino Adults in 2021 Owned Financial
Accounts for Transactions.” The Philippine Star, August 22, 2022.
143 “The 2023 Crony-Capitalism Index.” The Economist, May 2, 2023.
177 Quintero, Dennis A., Divina Pastora V. Ilas-Panganiban, and Kristina R. Navarro.
144 “Gini Index - Thailand.” World Bank Open Data. Accessed August 4, 2023. “Fintech in the Philippines 2022.” Baker McKenzie, March 30, 2022.

145 United Nations Thailand. “Thailand Economic Focus: Building a More Equal 178 “For Cash-Reliant Filipinos, Trust in Fintech Is Growing.” UOB Tech Ecosystem,
and Sustainable Thailand after COVID-19: A UN Perspective.” United Nations February 2022. Accessed August 7, 2023.
Thailand, September 10, 2020.
179 “Fintech in Philippines 1H2021: Payments to Drive Financial Inclusion.” UOB
146 Statista Research Department. “Thailand: Internet Penetration Rate 2019-2028.” Tech Ecosystem, September 2021.
Statista, July 31, 2023. Accessed August 8, 2023. https://www.statista.com/
statistics/975067/internet-penetration-rate-in-thailand/. 180 “For Cash-Reliant Filipinos, Trust in Fintech Is Growing.” UOB Tech Ecosystem,
February 2022. Accessed August 7, 2023.
147 Statista Research Department. “Thailand: Smartphone Penetration Rate 2019-
2028.” Statista, July 31, 2023. Accessed August 8, 2023. 181 “The 2022 Global Crypto Adoption Index: Emerging Markets Lead in Grassroots
Adoption, China Remains Active Despite Ban, and Crypto Fundamentals Appear
148 Tech in Asia data. Healthy.” Chainalysis, September 14, 2022.

149 Tanakasempipat, Patpicha. “Medical Tourism to Thailand Gets a Boost With New 182 Lim, Yu Qian. “Countries Most Interested in Web3 Gaming (2021-2023).”
One-Year Visas.” Bloomberg, November 15, 2022. CoinGecko, May 15, 2023.

150 Finch, Steve. “Thailand Top Destination for Medical Tourists.” Canadian Medical 183 Oundjian, Anthony, Franco Varona, and Jelmer Ikink. Rep. Philippine Venture
Association Journal 186, no. 1 (January 7, 2014). Capital Report 2023. BCG, March 22, 2023.

151 AseanBusiness staff. “Thailand Healthtech Field Set to Grow: Report.” The 184 Lacsamana, Brontë H. “Infrastructure Consideration Key to Fintech Startup
Business Times, May 21, 2020. Growth — Experts.” BusinessWorld, June 28, 2023.

152 Tungsuwan, Peerapan. “The Healthtech Environment in Thailand.” Bangkok 185 John, Adaline Lefe Mary. “The Global Startup Index.” Business Name Generator,
Post, August 29, 2017. June 15, 2023.

153 “Thailand’s Health Tech Industry Valuable for the Region, Says Agency.” The 186 Based on each company’s financial reports.
Nation, May 28, 2023.
187 Ibid.
154 Leesa-Nguansuk, Suchit. “E-Commerce Sector Enters the Next Phase.” Bangkok
Post, March 10, 2023. 188 Werres, Marc. “What Makes a Business Great: Predictable Performance.” Hinde
Group, May 4, 2022.
155 Ibid.
189 Telling, Oliver. “Singapore Courts Local Tech Giants over ‘National Duty’ to
156 Ibid. Relist.” Financial Times, July 24, 2022.

157 Yarrow, Richard. “Thailand’s Economy Stuck in the Middle.” East Asia Forum, 190 “Asia-Pacific Strategic’s $221.5 Million RTO of MoneySmart Falls Through.”
October 23, 2022. Yahoo!, June 30, 2023.

158 Rohaidi, Nurfilzah. “Exclusive: Inside Thailand’s ‘startup Nation’ Vision.” 191 Huang, Simon. “Making Sense of Grab’s Surprising U-Turn from ‘No Layoffs’
GovInsider, October 17, 2018. Stance.” Tech in Asia, June 21, 2023.

159 Tanboonteck, Sithee. “AgriTech and FoodTech Industry: Opportunities in 192 Sutrisno, Gabriel Budi. “GoTo to Shed 600 Jobs to Focus on Core Operations.”
Thailand.” The Board of Investment of Thailand. Accessed August 4, 2023. Tech in Asia, March 10, 2023.

160 “Thais Keen on Digital Currencies and Green Investments.” UOB Tech 193 Teo, Grace Priscilla. “Forrest Li on Pivotal Moments That Helped Turn Sea Group
Ecosystem, May 2022. Around.” Tech in Asia, May 15, 2023.

161 Ibid. 194 Wu, Kane, and Fanny Potkin. “Exclusive: Southeast Asian Tech Giant Sea
Disbands Investment Arm.” Reuters, June 1, 2023.
162 “Progress of Retail Central Bank Digital Currency (Retail CBDC) Development.”
Bank of Thailand, August 5, 2022. 195 Cher, Benjamin. “Sea posts Q2 profit of US$331 million.” The Straits Times,
August 16, 2023.
163 Statista Research Department. “Total Number of New Financial Technology
(FinTech) Companies in Thailand from 2017 to 2021.” Statista, March 1, 2023.
Accessed August 8, 2023.

164 Statista Research Department. “Transaction Value of the FinTech Sector in

Thailand from 2017 to 2027.” Statista, June 28, 2023. Accessed August 8, 2023.

165 “Thailand Faces Lingering Political and Fiscal Uncertainty After Elections.” Fitch
Ratings, May 19, 2023.

166 “Startup Thailand - Home.” Startup Thailand. Accessed August 7, 2023.

167 Jongsaliswang, Metinee, and Kenneth Tay. Rep. Thailand Startup and Venture
Capital Ecosystem Study. Deloitte, February 2023.

168 Leesa-Nguansuk, Suchit. “Focus on Later Stages Creates Local Startup Funding
Gap.” Bangkok Post, February 20, 2023.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 63
Acknowledgements

This report was written by Jonathan Chew, Stefanie Yeo,

and Winston Zhang, with contributions from Eileen C.
Ang, Emmanuel Samarathisa, Gabriel Budi Sutrisno,
Jofie Yordan, Lorenzo Kyle Subido, Melissa Goh,
Miguel Angel Cordon, Simon Huang, and Thu Huong Le.

It was edited by Winston Zhang, Maria Li, Lorenzo Kyle

Subido, and Dhania Putri Sarahtika, with layout and
design by Susi Susanti.

We would like to express our gratitude to the various

VCs who took the time to speak with us and share their
insights for this report: Amarit Charoenphan of Aim
Ventures, Gary Khoeng of Vertex Ventures Southeast
Asia & India, Justin Hall of Golden Gate Ventures, Kabir
Narang and Karan Mohla of B Capital Group, and Susli Lie
of Monk’s Hill Ventures.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 64
© Tech in Asia, 2023. All rights reserved.

The information in this report is provided on an “as is” basis. This document was produced by and the opinions expressed are those of Tech in Asia
and other third parties involved as of the date of writing and are subject to change. It has been prepared solely for information purposes over a
limited time period to provide a perspective on the market. Projected market and financial information, analyses, and conclusions contained herein
should not be construed as definitive forecasts or guarantees of future performance or results. Tech in Asia or any of its affiliates or any third party
involved makes no representation or warranty, either expressed or implied, as to the accuracy or completeness of the information in the report and
shall not be liable for any loss arising from the use hereof. Tech in Asia does not provide market analyses or financial projections.

SEA Marks the Spot l The 2023 Tech in Asia Conference Report 65