The number of start-ups in ASEAN that have raised more than $1mn in funding almost tripled between 2015 and 2021, from 652 to 1,920, registering a faster growth than India, the US and Europe, said the ASEAN Investment Report 2022, released recently. According to the report, ASEAN is increasingly a hotspot for start-ups. The region is witnessing rapid growth in the number of start-ups across an expanding range of business activities, from e-commerce and fintech to travel and hospitality. In the region, Singapore, Indonesia and Malaysia, in that order account for 83% of start-ups that have raised more than $1mn in funding. Other ASEAN Member States are also witnessing fast growth--especially Vietnam, the Philippines and Thailand in that order. Their proprietary advantage, ability to raise funds and drive to grow have led many to regionalise through a number of modalities, such as direct investment in neighboring countries, cross-border mergers and acquisitions, acquisition of strategic stakes in other start-ups, establishment of corporate venture capital funds and partnerships with other start-ups and multinational enterprises to expand horizontally and vertically in the region. Of the 100 most-funded start-ups in ASEAN in 2022, 42 have a physical presence in at least one other Member State. Of the 100 most-funded start-ups with regional investment activities, 31 are in fintech, 24 in e-commerce, 17 in enterprise or other business-to-business services, and the remaining in other businesses. An overwhelming majority expanded to other ASEAN Member States primarily because of market-seeking considerations. Other reasons include opportunities to access funding, technology development, access to strategic assets, and overseas partnership opportunities. (Source: Khmer Times)

 

Economy & Industry

20th September 2022

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