The Japanese investments fueling Southeast Asia’s fintech scene

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Hello reader,

I’ve recently been thinking about taking a trip to Japan. I’ve been there twice before, and each time was an incredible experience with great food and amazing sights. One of the trips coincided with the start of the cherry blossom season so my friends and I had a great time just picnicking in the park under the trees, admiring how they looked in full bloom.

I’m hoping to make my third trip to Japan a reality some time in the next year, so wish me luck with making it a reality. And now, in this incredible segue, today’s premium story is also about Japan – specifically, Japanese firms investing in Southeast Asia’s fintech scene. Let’s go deeper.

(Are you guys tired of my oh-so-seamless segues yet? No? That’s great, because neither am I. 👼)

Today we look at:

• The rebound in Japanese investments in Southeast Asia’s fintech space
• A healthtech startup’s partnership with Singapore’s oldest primary care provider
• Other newsy highlights such as Temasek’s results for its most recent financial year and a massively multiplayer online role-playing game for kids

Premium summary

From Japan to Southeast Asia

Image credit: Timmy Loen

In 2022, Japanese funding into Southeast Asian fintech firms reached US$1.4 billion, an 80% increase from the year before. It resumed an upward trend that was interrupted by the pandemic in 2020. Let’s take a closer look.

• The appeal: Due to their home country’s demographics, major Japanese companies often turn to international markets for more growth opportunities. Many are focusing on Southeast Asia due to its “high-growth economy, historical business and cultural ties with Japan, and geographical proximity,” according to MUFG Innovation Partners’ Ryu Hirota.
• A big player: One of the Japanese companies writing big checks to Southeast Asian fintech firms is Mitsubishi UFJ Financial Group. It’s backed companies such as Investree and Akulaku as well as made strategic investments in firms such as Grab over the years.
• Key markets of interest: Over 46% of the investments made by Japanese firms into Southeast Asian fintech startups since last year have gone to Singapore, which took the largest share in the region. Coming in second is Indonesia, which received 35% of investments.

Read more: Return of the Rising Sun: MUFG fuels rebound in Japanese investments in SEA fintech

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