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If you’ve read our rising startups listicles written by TIA Bot, Tech in Asia’s cutest writer, you’ll notice that they often start with something like this: “Which startups will pioneer a new economy? One way to judge – although imperfect – would be the amount of money they have raised.”
Funding numbers don’t tell the full story, but they’re an interesting trail of breadcrumbs to follow to get a sense of where things are going. In today’s premium story, my colleague Peter traces where VCs are putting their money in Indonesia to spot the country’s next big sector and some opportunities that are flying under the radar.
Today we look at:
- The VC money trail in Indonesia
- How ByteDance’s ChatGPT equivalent is edging out Baidu’s Ernie
- Other newsy highlights such as what Elon Musk’s been up to in Indonesia and Pine Labs’ plans to relocate to India
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Follow the money, honey
Image credit: Timmy Loen
Indonesia has matured as a startup market, and VCs are finding it more challenging to reap substantial returns from industries such as ecommerce and fintech. In the face of this hurdle, which sectors are investors banking on?
- Clean is king: Cleantech has emerged as the next hot category for tech investors in Indonesia. The country’s cleantech startups banked a total of US$65 million in disclosed funding in 2023, and they’ve raised US$77.5 million so far in 2024, according to Tech in Asia data. The urgency of addressing climate change, combined with government support for the sector, makes cleantech an attractive investment proposition.
- Keep an eye out: Investors are also interested in agritech and waste management. Funding for both sectors has remained relatively scarce, but investors are bullish on their untapped potential and the problems that they can address.
- Down, down, in an earlier round: Fintech funding in Indonesia has significantly decreased. In 2023, the country’s fintech sector secured only US$850 million, roughly half of the US$1.7 billion raised in the previous year. VCs have attributed this decline to various factors, such as market corrections after previous investment spikes as well as tighter regulations and higher capital market requirements.
Read more: Indonesia’s next hope: Cleantech with a dash of agriculture, waste management
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Doubao on top
Image credit: Timmy Loen
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