SEA records least funded half-year since 2020: report

Funding in Southeast Asia’s tech startup ecosystem has reached a record low, according to Tracxn’s Geo Semi-Annual Report.

The region raised US$2.3 billion in the first half of 2023, a 71% drop compared to the same period the year before. It also marked the lowest funding level for a half-year period since 2020.

Tracxn attributed this downtrend to a significant decrease in late-stage funding. For H1 2023, the total late-stage funding secured by Southeast Asia’s tech startups amounted to US$997 million, a 54% drop from the US$2.2 billion raised in H2 2022.

Buy now, pay later firm Kredivo secured the most money in H1 2023 among Southeast Asian startups, raising US$270 million in its series D funding round.

The fintech industry as a whole raised US$926 million for the period, which accounted for almost 40% of the funds raised by the region’s tech startups.

The report also highlighted the insurtech sector’s growth and stability. It secured US$262 million in H1 2023, up from US$98.7 million in H2 2022.

For the first half of this year, only agritech firm eFishery achieved unicorn status among Southeast Asian startups. Meanwhile, the report named East Ventures, Seeds Capital, and Y Combinator as the top investors in the region for the period.

See also: Southeast Asia tech funding set for worst year since 2016