2023 was a much darker year for Southeast Asia's tech industry compared to last year. The global wave of layoffs hitting U.S. tech companies like Meta, Amazon and Twitter is also hitting Southeast Asia, amid a so-called “funding winter” for the region's tech startups.
In March, it was reported that e-commerce giant Shopee had laid off about 200 employees in Indonesia, mainly from its customer service team. In the same month, Indonesia's largest technology company PT Gojek Tokopedia announced further job cuts to streamline its organization and increase the company's profitability.
Singapore-based super app Grab Holdings cut 1,000 jobs in June. Co-founder and CEO Anthony Tan said fundamental and step changes to Grab's operating model and cost structure are needed to make Grab more competitive in the long term.
Malaysian-headquartered used car platform Carsam is said to have cut “hundreds of jobs” last month in a bid to achieve profitability.
On the other hand, according to trackingSoutheast Asia's technology sector has received a total of $4.3 billion in funding from 2023 to date (to December 5, 2023), down 65% from $12.4 billion raised in the same period last year.
The startup data platform said in its “Geo Annual Report: SEA Tech 2023” that Southeast Asia's high-tech startup ecosystem continues to face the effects of the funding winter, similar to other major economies.
According to the report, companies in the sector have raised $1.9 billion worth of late-stage funding from 2023 to date, a significant 65% decrease from the $5.4 billion raised in the same period in 2022. became.
Year-to-date in 2023, the company has raised $1.9 billion in early-stage funding, 67% less than the $6 billion it raised in the same period in 2022.
Seed-stage investments also decreased by 52% to $546 million from the $1.14 billion raised in the same period in 2022.
FinTech, enterprise applications, and retail were the top-performing segments of the technology startup ecosystem in 2023.
Still, the FinTech sector has received $2 billion in funding so far in 2023, a 65% decrease compared to the same period last year.
Southeast Asia raises $5.5 billion in IPOs in first 10.5 months, lowest in 8 years
In terms of initial public offerings (IPOs), Southeast Asia raised about $5.5 billion through IPOs in the first 10.5 months of 2023, an eight-year low, audit and consulting firm Deloitte said last month. did. This compares to $7.6 billion raised during the same period in 2022.
Indonesia, Thailand and Malaysia together raised approximately $5.4 billion, accounting for 98% of the total funds raised across Southeast Asia.
However, Deloitte noted that Southeast Asian companies are growing and have the ability to conduct cross-border IPOs. This is driven by expectations for favorable valuations, improved liquidity, industry comparability, and investor familiarity with specific sectors.
The audit and consulting firm believes that stock exchanges around the world are paying more attention to Southeast Asian companies and are establishing new initiatives to increase their attractiveness as gateways to attracting these high-growth companies. He said that he is updating existing initiatives.
Here are some of the top tech news from 2023, with hopes that 2024 will be a better year.
1. Temasek venture capital firm Arm Vertex raises $900 million in first round of new fund, expected to close in 'next months', CEO says
Temasek's venture capital arm Vertex raises $900 million in first round of new fund, CEO says, expected to close in “the next few months”
2. China's TikTok to invest $1.5 billion in Indonesia's GoTo
China's Tik Tok to invest $1.5 billion in Indonesia's GoTo
3. CEO says Singapore's Grab will cut 1,000 jobs to control costs and maintain competitiveness
Singapore's Grab will cut 1,000 jobs to control costs and maintain competitiveness, CEO says
4. Indonesia’s eFisery earns unicorn tag after raising Series D round – Report
Indonesia’s eFisery earns unicorn tag after raising Series D round – Report
5. J&T Express makes HKEX debut, raises $450 million from global offer
Indonesia's J&T Express makes HKEX debut, raises $450 million from global offering
6. YTL partners with NVIDIA to build AI infrastructure in Malaysia
YTL partners with NVIDIA to build AI infrastructure in Malaysia
7. Vietnamese EV maker VinFast debuts on NASDAQ after completing SPAC merger
VinFast and Black Spade complete business combination
8. China's Meituan considers doing business with Delivery Hero's Southeast Asian arm Foodpanda – Report
China's Meituan considers doing business with Delivery Hero's Southeast Asian arm Foodpanda – Report
9. Singapore's Vertex Technology Acquisition Corporation merges with streaming platform 17LIVE Inc
Singapore's Vertex Technology Acquisition Corporation to merge with streaming platform 17LIVE Inc
10. Thailand hopes to invest $5 billion in Tesla, Google, Microsoft – Report
Thailand expects $5 billion investment from Tesla, Google, Microsoft – Report
Featured photo credit: Tracxn