According to Odaily, a recent report by Tracxn highlights that 2024 has been a challenging year for Southeast Asia's tech ecosystem, marked by a significant decline in funding inflows and major shifts in market dynamics amid a global economic slowdown. Despite these challenges, the region continues to innovate and adapt.
In 2024, Southeast Asian tech startups raised $2.84 billion across 420 funding rounds, a 59% decrease from $7 billion in 2023 and an 80% drop from $14.2 billion in 2022. Singapore accounted for nearly 67% of the region's total funding, followed by Jakarta and Bangkok. Singaporean tech startups secured $1.9 billion in 2024, while those in Jakarta and Bangkok raised $276 million and $261 million, respectively.
Despite the overall decline in investment, certain sectors within Southeast Asia's tech ecosystem have shown resilience and continue to attract investor interest. Fintech led the funding charts, raising $1.4 billion in 2024, followed by high-tech with $966 million and enterprise applications with $764 million.
Emerging sectors such as clean technology and blockchain also demonstrate significant potential, supported by regulatory backing and sustained investor interest, indicating growth prospects in the coming years. The report emphasizes that despite the challenges, Southeast Asia's tech ecosystem remains adaptive through ongoing investment, innovation, and government support.
Looking ahead to 2025, the focus will be on high-growth areas like fintech, clean technology, and blockchain, leveraging policy frameworks and investor enthusiasm to navigate economic complexities.