Here’s why you should pay attention to the startup scene in India, Southeast Asia

This article was co-written by Matthew Williams, Head of Marketing @BrainGain.

With startups increasingly grabbing headlines around the world, from the fame and fortune of Silicon Valley to European hot spots such as Berlin and London, we’re often asked why we’re so excited about working with startups and social enterprises in Southern Asia.

We personally feel this is the most exciting area of the world, for a variety of reasons. Aside from the fact that it’s home to the world’s best beaches and travel opportunities, South and Southeast Asia are ripe to explode with economic growth as people come online for the first time and have disposable income as the middle class grows. It’s no wonder VCs are lining up to invest, and won’t be the only ones saying “I told you so!” 5 years from now.

The Asian startup ecosystem is poised to explode right now, so we thought we’d give a fair warning that now is a good time to jump on a plane and get the hell out there.

Photo credit: Wikimedia Commons

Why South-Southeast Asia?

VCs fuelling current exponential growth

In general, this is an exciting time to be involved in the startup world! Compass’ comprehensive report published in mid-2015 showed that, globally since 2014, there’s been a 91% increase in VC investment and a 78% increase in exit value.

Unlike previous years, this growth hasn’t been centered around developed countries. Startups in emerging economies are getting a foothold in both domestic and international markets. For example, Indian startups raised over $8 billion (40% increase from 2014) last year, closing nearly 1,000 deals with VCs (68% increase).

With the Indian government introducing startup friendly initiatives and India being host to 8 of the world’s unicorn companies (behind only the USA and China), India is one of the leading international players.

However, it’s not just India that’s taking part in the startup party. Though still far from having a mature startup ecosystem, Malaysia’s growth is also incredibly exciting. Funding in tech startups increased 96% (yes, NINETY SIX PERCENT) between 2011 and 2014 to $1.5 billion. It’s not just funding that’s flying Malaysia’s way; American lead incubators and accelerators are joining with the Malaysian government’s MaGIC program to provide a more stable diving board for growth, innovation, and foraging into new markets.

The Philippines and Indonesia are following suit, albeit on a slightly smaller scale (for now). Until 2011, the Philippines didn’t have much of a startup ecosystem. With few accelerators and little support from the government, it’s no wonder that they hadn’t managed to follow the growth of their Asian neighbours. However, 2011 was a turning point for the country when Startup Weekend stopped by. This has kickstarted startup growth in the country, and they have not looked back since.

In 2015, Philippine startups raised $40 million that was spread across 100 startups. Last year, Global Telecom announced its $50 million fund for the country and with US VC firms such as 500 Startups starting to take an interest (TwitMusic), the future’s looking rosy for the Philippine startup scene.

That’s not to say that Indonesia have been lagging behind. With less business regulations than the Philippines, the startup ecosystem is blossoming. Lazada, with a valuation of over $1.2 billion, is Indonesia’s unicorn in its stable. Other startups are raising some serious cash as well; Tokopedia just raised $100million, and Bhinneka ($22mil), BerryBenka ($5mil), and Qraved ($1.5mil) have all had great rounds of funding. With 500 Startups, Fenox Venture Capital, and a host of other international VC firms, accelerators, and incubators setting up shop in Jakarta, it’s a very exciting time to be involved in Indonesia.

Huge, untapped potential for future growth

Why is this exciting for you?