Funding falls, but these Indonesian fintech players still stand

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IN FOCUS

In today’s newsletter, we look at:

• Notable players in Indonesia’s fintech sector
• An expansion of cross-border QR codes within ASEAN countries

Hi there,

Fintech funding into Southeast Asia startups continues to be on a downtrend.

A recent report by data intelligence platform Tracxn found that total funding into Southeast Asia startups fell 13% year on year to US$530 million in the first quarter of 2024. This was largely led by a decline in late-stage funding, but decreasing seed-stage investments also contributed to the downtrend.

Indonesia hasn’t been spared by the funding crunch.

According to Tech in Asia’s data, funding into Indonesia’s fintech startups dropped sharply between 2022 and 2023. Deal count almost halved, while total deal value fell by 53% to US$850 million in 2023.

But, in line with the rest of the region, lending and insurtech sectors held up in 2023, my colleague Budi notes in this week’s Big Story. The landscape map is an update of a previous iteration we first published in 2021, and reflects more recent funding trends in the past three years.

Meanwhile, in our Hot Take this week, I discuss ASEAN’s plan to expand cross-border payment links within the economic bloc and how – despite the convenience that could come with it – it may not be able to eliminate cash entirely just yet.

— Melissa

THE BIG STORY

Mapping the Indonesian fintech players navigating a tech winter

Image credit: Timmy Loen

Between 2021 and 2023, the payments, lending, brokerage, and insurtech segments attracted the most money for the country’s fintech industry.

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI