Why AI isn’t crushing SaaS in SEA

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In focus

• ​​How Southeast Asia’s SaaS sector is surviving the AI era
• We put the spotlight on Bukalapak’s leadership reshuffle as it hits profit
• Ant International eyes US$1b war chest

Hello reader,

For years, software-as-a-service has been Southeast Asia’s safest startup bet. Then came generative AI, and the change was impossible to miss.

Across boardrooms and pitch decks, AI has rapidly replaced SaaS as the trendy investment.

Yet beneath the hype, the region’s software sector looks very different from that of Silicon Valley. The dominant narrative in the US has been that AI will kill traditional software companies. Some have called it the “SaaSocalypse.”

But in Southeast Asia, the reality is more complex.

Many enterprises are still early in their digital transformation journey. Software adoption remains fragmented across markets, and customer relationships are often built through local sales teams. This has given incumbent SaaS companies more protection than their Western counterparts, as local know-how remains a necessity.

Investors may be chasing AI, but the funding data tells a more nuanced story. SaaS deals are still getting done. Deal volume beyond series A is higher this year than in 2025, and it is likely to touch the peak of 12 rounds in 2020 before 2026 ends.

Today’s featured story explores how AI is reshaping the region’s SaaS sector, and why reports of its death may be exaggerated. Also, we take a look at the leadership reshuffle at profitable Indonesian ecommerce player Bukalapak.

Samreen Ahmad, journalist

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AI’s SaaS threat looks different in Southeast Asia

The era of easy-growth SaaS may be over, but the vertical is far from disappearing in Southeast Asia. Instead, it is being reshaped.

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