Southeast Asia’s fintech sector recorded funding of USD 1.6 billion in 2024, which was a 23% decrease from USD 2.1 billion in 2023 and a significant 75% decrease from USD 6.3 billion in 2022.
This slowdown reflects the impact of macroeconomic pressures, rising interest rates and geopolitical uncertainty, with funding levels returning to pre-pandemic levels.
Despite these challenges, the fintech industry remains one of the strongest performers among the region’s technology startup ecosystems, driven by the ongoing digital transformation facilitated by the introduction of e-commerce and contactless payments. It has emerged as one of the fastest growing industries.
Funding fell at all stages, with late-stage investments hardest hit.
Seed funding totaled USD 190 million, down 6.4% from USD 203 million in 2023.
Early stage funding decreased by 16% to US$750 million, and late stage funding decreased by 31% to US$694 million.
It is noteworthy that some segments bucked the overall downward trend.
Payment companies raised US$366 million, an increase of 53% from 2023, and crypto companies secured US$325 million, an increase of 20%.
Funding for banking technology also increased significantly, reaching USD 265 million, up 63% year-on-year.
Ascend Money led this year’s funding deals with a US$195 million Series D round, followed by ANEXT Bank’s US$148 million Series D and Volttech’s US$100 million Series C.
The report names Polyhedra Network as the only fintech to achieve unicorn status in 2024 after raising a US$20 million Series B round, giving it a valuation of US$1 billion.
However, Tracxn does not include Tyme. Tyme also became a unicorn in mid-December 2024 after a USD 250 million funding round.
Acquisition activity remained steady, with 27 deals recorded, including NTT Data’s US$154 million acquisition of GHL.
However, not a single fintech company in the region went public in 2024, compared to one IPO the previous year.
Singapore maintained its position as a regional fintech hub, attracting US$955 million in funding.
Jakarta followed with US$242 million, followed by Bangkok, which secured US$198 million.
Key investors include East Ventures, Y Combinator, and 500 Global, with Antler, Mirana, and Alliance DAO prominent in seed-stage funding.
“Southeast Asia’s fintech ecosystem is at a tipping point.
While macroeconomic challenges have constrained fundraising activity, the region’s dynamic entrepreneurial spirit, young, tech-savvy population, and supportive government initiatives promise a bright future. ”
Abhishek Goyal, co-founder of Tracxn, said:
Featured image credit: Edited from freepic
