A Shift in Fintech Funding in Southeast Asia
The fintech landscape in Southeast Asia (SEA) has recently undergone a noticeable transformation. According to the SEA Fintech – Semi Annual Report 2024 released by data intelligence platform Tracxn on July 5, 2024, fintech startups in Southeast Asia secured a total of US$899 million in funding during the first half of 2024. This marks a significant 25% year-on-year (YoY) decrease from the US$1.2 billion raised in the same period in 2023.
This decline in funding can be attributed to ongoing macroeconomic conditions and geopolitical tensions, making H1 2024 the least funded half-year in the past three years. Despite these challenges, investor confidence in the region remains relatively optimistic. A look at the most active fintech investors in Southeast Asia over the past two years reveals a nuanced landscape, highlighting their focus areas and notable startups in their portfolios.
Top Fintech Investors in Southeast Asia
1. Antler
Antler, headquartered in Singapore, stands out as the most active early-stage investor in the fintech sector within Southeast Asia, completing a remarkable 26 deals in the past 24 months. Their “Day Zero” investing approach allows them to partner with founders from the inception of their startups, providing critical support long before they launch. Antler aims to dismantle common barriers for early-stage tech entrepreneurs by offering co-founder matching, business model validation, and initial funding.
Their portfolio currently boasts 31 fintech startups from the region, with notable recent investments including PEXX, Flaex, BorderDollar, Hazana, and Qashier.
2. XA Network
Also based in Singapore, XA Network is not just an investment group but a bridge for technology entrepreneurs in Southeast Asia. With 11 deals completed over the past two years, they hold the position of the second most active fintech investor in the region. Established as part of the Google alumni network, XA Network aims to empower founders tackling critical problems.
Their portfolio includes 18 fintech startups, with recent investments in Heymax.ai, GORO, Peddlr, and CareNow.
3. 500 Global
500 Global, based in the US, has made a solid impression on Southeast Asia’s fintech scene, completing nine deals over the past 24 months. As a multi-stage venture capital firm, 500 Global’s goal is to leverage innovation and technology across various markets. Their impressive track record includes investments in over 35 companies valued at over US$1 billion.
Within their Southeast Asian portfolio, they currently back nine fintech startups, with recent investments like Ringkas, Halogen Capital, Seedflex, and BayaPay.
4. East Ventures
Indonesia-based East Ventures is a notable player, having completed seven fintech deals in the last 24 months. Established in 2009, it has helped propel many significant companies, including Indonesia’s unicorns like Tokopedia and Traveloka. Their portfolio features 22 fintech startups, with recent investments in ALAMI Sharia, Ringkas, Komunal Indonesia, and FLIK.
5. Iterative
Singapore’s Iterative is an accelerator dedicated to the Southeast Asian market. They have participated in seven deals recently, focusing on building a supportive community for early-stage founders. Their model includes a standardized investment deal of US$150,000 to US$500,000 for approximately 10% equity in startups.
Their portfolio includes 16 fintech startups, comprising new investments like 1Long, Boost Capital, GORO, and Mother Finance.
6. Saison Capital
As a venture arm of Japan’s Credit Saison, Saison Capital manages to make significant strides in the fintech investment scene, completing seven deals in the past 24 months. They primarily target pre-seed and seed-stage founders focusing on fintech, Web3, and commerce. Their global portfolio constitutes 39 fintech companies, with recent investments in iPiD, Wind.App, Helix, and Skorlife.
7. Gobi Partners
With six investments recently completed, Gobi Partners is a prominent Asia-focused VC firm. Founded in 2002, they aim to empower underserved entrepreneurs and promote gender equality in business. They maintain a considerable presence across key markets and support around 11 fintech startups, including Komunal Indonesia and Finnomena.
8. Wavemaker Partners
Wavemaker Partners, operating from Singapore and Los Angeles, has finalized six fintech deals in the region. They focus on enterprise technology and sustainability startups. Boasting over 210 backed companies, their current fintech portfolio features 16 startups, such as Beppo and MFast.
9. AC Ventures
Based in Indonesia, AC Ventures has made five notable deals in the fintech sector. The firm, formed through the merger of two leading venture capital firms, identifies and supports digital disruptors. Their portfolio includes 20 fintech startups, with investments in ALAMI Sharia and Skorlife.
10. Peak XV Partners
Formerly part of Sequoia Capital, Peak XV Partners is a major player in the Southeast Asian fintech landscape with five investments made recently. They are known for a hands-on approach, providing tailored support to founders through various programs during their growth journey.
Their current portfolio features 19 fintech startups and includes recent investments in Triple-A and Aspire.
11. Openspace
Finally, Openspace has also made five deals in the fintech space over the past 24 months. With its commitment to transformative tech-driven solutions, Openspace backs companies like GoTo and Kredivo, supporting a portfolio of 11 fintech startups.
In this evolving fintech landscape, it’s evident that while budget constraints may challenge startup growth, the dedication of investors and the innovation of founders promise a dynamic future for Southeast Asia’s fintech ecosystem.