When talking of the fintech ecosystem, Singapore typically receives the limelight due partially to its success in establishing itself as a regional fintech hub.
The identical sample emerges when funding rounds. Once you analyse the highest funding rounds in South East Asia, as a rule you find yourself simply wanting on the prime funded fintech startups in Singapore casting a big shadow over a number of the well-deserving startups from different ASEAN international locations that additionally deserve an equal quantity of consideration.
Enterprise capital (VC) investments into Southeast Asia’s fintech sector hit a five-year low in 2023, reaching a mere US$2 billion raised by way of 142 offers, a brand new report by startup knowledge platform Tracxn reveals.
Regardless of the plunge, Southeast Asian nations managed however to document notable rounds, with Singapore dominating the panorama by way of offers reminiscent of Bolttech’s US$246 million Sequence B, Aspire’s US$100 million Sequence C and Advance Intelligence Group’s US$80 million Sequence E.
Fintech funding in Southeast Asia, Supply: Fintech – SEA Annual Funding Report, Tracxn, Quarter 4, 2023, Jan 2024
Different nations together with Indonesia, the Philippines and Thailand additionally witnessed some noteworthy fintech VC rounds in 2023, paving the best way for continued momentum in 2024 onwards. To get a way of Southeast Asia’s up-and-coming fintech startups, we glance right now on the largest VC rounds of funding secured by younger ventures within the area.
For this listing, we’ve targeted on personal, impartial fintech firms headquartered in ASEAN international locations aside from Singapore, focusing solely on personal fairness, and excluding subsidiaries of monetary incumbents and joint ventures.
Netbank – US$344 million (Sequence A, Philippines)
Filipino banking-as-a-service (BaaS) supplier Netbank secured the most important funding spherical in Southeast Asia (excluding Singapore) final yr, elevating in Could 2023 a US$344 million Sequence A funding spherical, knowledge from KPMG and Pitchbook present.
Based in 2019 and headquartered in Manila, Netbank is a totally regulated Filipino financial institution, working on a white-labeled foundation. The corporate claims to be the primary BaaS platform of its sort in Southeast Asia, providing companies a variety of companies that simplify opening accounts, managing funds, dealing with of small and medium-sized enterprise (SME) loans, card issuance and cellular banking. Utilizing Netbank, Filipino fintech firms, monetary establishments, but additionally non-banking gamers, can concentrate on their purchasers and their development, and supply handy and seamless digital monetary companies to their purchasers.
Netbank additionally operates department operations in its house area of Romblon.
Netbank says it turned worthwhile in March 2023, claiming that its deposits had grown by 14x, loans by 5.5x, and property by 16x over the prior 12 months. It says it at present has round 20 completely different monetary options within the pipeline, and plans to make use of the proceeds from its newest fundraising to broaden its lending merchandise to “extra segments of the Filipino new economic system”. In the long run, Netbank additionally needs to broaden outdoors the Philippines.
Investree – US$231 million (Sequence D, Indonesia)
Indonesian peer-to-peer (P2P) lending platform Investree raised US$231 million in a Sequence D funding spherical in October 2023, the second largest VC funding spherical of the yr within the area. The spherical was led by JTA Worldwide Holding in Qatar, with participation from Japanese monetary conglomerate SBI Holdings.
Based in 2015, Investree is a Jakarta-based various finance participant. The corporate says it has disbursed IDR 14 trillion (US$900 million) price of loans in Indonesia. Nearly all of these loans had been disbursed to companions of agritech startup unicorn EFishery and Gayatri Microfinance. Moreover Indonesia, Investree additionally operates in Thailand and the Philippines.
Investree beforehand shared that it will use the proceeds to broaden its product choices, strengthen partnerships with numerous collaborators and improve its suite of progressive digital options tailor-made to the precise wants of micro, small and medium-sized enterprises (MSMEs).
As a part of the deal, Investree and JTA additionally established a three way partnership in Doha to function a hub for Investree’s Center Jap operations and supply digital lending companies for SMEs within the area.
Nevertheless, the disbursement of those funds has been delayed, elevating considerations amongst traders in regards to the future inflow of this capital. The scenario is additional sophisticated by Investree’s battle to cowl operational prices and generate income.
This was additional compounded by the departure of Investree’s high-profile CEO, Adrian Gunadi, following allegations of misconduct.
Investree has confronted rising scrutiny over its dealing with of dangerous loans, with its TKB90 success charge falling considerably beneath the trade common, prompting lawsuits from lenders and investigations by OJK.
In an effort to climate these challenges, Investree had reportedly secured a crucial US$7 million rescue package deal from its current investor SBI Holdings in a bid to swiftly full a significant restructuring plan.
Roojai Group – US$42 million (Sequence B, Thailand)
Thai insurtech startup Roojai introduced in March 2023 a US$42 million Sequence B comprising a US$32 million direct injection and a US$10 million secondary share transaction. The spherical represents the third largest VC funding spherical within the area’s fintech sector secured final yr.
Established in 2016, Roojai is a licensed insurance coverage dealer specializing in on-line insurance coverage. Roojai’s enterprise protection consists of Roojai Thailand, a licensed insurance coverage dealer offering varied insurances spanning automotive insurance coverage, crucial sickness, most cancers, coronary heart illness, private accident and hospital money plans; MrKumka, an internet insurance coverage comparability portal in Thailand; and Roojai Indonesia, which was launched in 2022 to supply automotive insurance coverage, private accident insurance coverage and important sickness insurance coverage in collaboration with native insurance coverage firm Sompo Indonesia.
Roojai is at present specializing in increasing its success in motor insurance coverage throughout non-motor merchandise. The corporate can be engaged on cementing its foothold in Indonesia and increasing throughout Southeast Asia, with an instantaneous concentrate on the Philippines. It’s additionally pursuing natural development alternatives by way of mergers and acquisitions (M&A). In January, the startup introduced the acquisition of Lifespan, an internet insurance coverage dealer in Indonesia boasting 2 million month-to-month customers.
Roojai claims robust development throughout its fiscal yr 2023, beginning April 2022 to March 2023, gathering over THB 1.3 billion (US$36 million) in premiums. Along with rising premiums by 20%, buyer numbers additionally grew by 15% on the finish of fiscal yr 2023, the startup says.
Delicate Area – US$31.5 million (Sequence B1, Malaysia)
Malaysian cost companies supplier Delicate Area secured in August 2023 a US$31.5 million Sequence B1 spherical, the fourth largest VC funding spherical raised by non-Singaporean Southeast Asian fintech startups in 2023. The spherical, which was led by Southern Capital Group (SCG), shall be used to gas the corporate’s continued development and enlargement, Delicate Area mentioned in an announcement.
Based in 2012, Delicate Area is a number one softPOS participant headquartered in Kuala Lumpur. The corporate affords a white-label e-wallet resolution for companions to launch their very own niched e-wallet to market segments. Delicate Area goals to simplify the complexity of monetary infrastructure and allow frictionless funds for purchasers in a easy and cost-effective method.
Delicate Area says that it has recorded robust development in recent times with income nearly doubling within the final two years. Now, Delicate Area’s full-stack cost companies are being utilized by greater than 70 monetary establishments and companions in Japan, Europe, Oceania and Americas.
BitKub – US$17.8 million (Development Fairness VC, Thailand)
Thai cryptocurrency change platform BitKub agreed in June 2023 to promote a 9.22% stake within the firm to native recreation writer Asphere Improvements for US$17.8 million, Tech in Asia reported, citing regulatory filings. The sale of shares will present BitKub with further capital to revamp its expertise infrastructure and broaden its digital asset companies in Thailand, a rustic the place over 6.2 million individuals owned crypto in 2022.
Based in 2018, BitKub is a Thailand-based digital asset and crypto change platform that permits customers to purchase, promote, and retailer cryptocurrency property. The corporate focuses on offering superior companies to most of the people to have the ability to commerce and retailer digital property. BitKub is claimed to be Thailand’s largest crypto change, boasting a market share of 75.4% with 2 million customers. It claims it carries out greater than 90% of Thailand’s crypto transactions and handles a each day commerce worth of US$25 million.
BitKub achieved unicorn standing in November 2021 after it was introduced that Thai financial institution SCBX would purchase the startup, a deal which was supported to worth the 51% stake within the firm at over US$500 million. The acquisition was finally scrapped in 2022 as a result of regulatory points after a due diligence train discovered quite a few points.
BitKub reported income of THB 2.85 billion (US$79.6 million) in 2022, down 48% from the earlier yr amid a crypto winter. The corporate’s revenue declined by 86% throughout the identical interval to THB 341 million (US$9.5 million).
Advance Tech Lending – US$16 million (Pre-Sequence A, Philippines)
Filipino wage on-demand supplier Advance Tech Lending secured in March 2023 US$16 million in a pre-Sequence A funding spherical, representing the sixth largest VC funding spherical of the yr from a non-Singaporean fintech startup in Southeast Asia. Led by Do Ventures from Vietnam and Lendable, a technology-enabled funding and debt supplier to fintech firms in rising markets, the funding spherical shall be used to introduce extra progressive monetary merchandise and supply its companies to extra companions throughout the area, Advance Tech Lending mentioned in an announcement.
Together with the recent funding, Advance Tech Lending introduced that it has expanded into Vietnam with the acquisition of BravoHr, a Vietnam-based platform that gives digital options for worker engagement, advantages, and rewards. BravoHr’s key purchasers embody a number of the largest international manufacturers like McDonalds, L’Oreal, and AstraZeneca.
Based in 2018 and headquartered in Manila, Advance Tech Lending claims it’s the first wage on-demand supplier within the Philippines, offering short-term, multipurpose wage advances to eligible staff. The corporate points prompt wage advances with minimal curiosity, providing eligible debtors the pliability to advance as much as 50% of their month-to-month fundamental wage, at any time. The rate of interest begins at 3.5% and is payable 30 days from the date of disbursement.
Advance Tech Lending handles all the executive issues, from pre-approvals to onboarding and repayments, and turns a portion of an worker’s wage right into a credit score line. The applying course of is all on-line and takes seconds, and disbursement is prompt upon approval.
Advance Tech Lending has partnered with over 200 firms to supply on-demand monetary companies to their staff, together with main trade gamers like Sitel Philippines, Inspiro, Cebuana Lhuillier, and ePerformax.
