“Singapore and Indonesia confirm their status as regional fintech leaders. This is also the case regarding the number of unicorn companies. Focused primarily on domestic markets, Singaporean and Indonesian investors act with lower risks and have a chance to assess the potential of fintech companies more accurately. This provides opportunities for the rapid development of national fintech,” – Robocash Group said in a statement.
(Singapore August 8, 2023) Singapore has drawn half of the total fintech investment since 2000 in Southeast Asia, according to the India-based data-driven platform Tracxn.
Since 2000, fintech companies in the 10 countries in SEA attracted has $62.7 bn which originated from 80 countries of the world.
The first place by investment attractiveness in SEA is taken by Singapore. The country’s fintech attracted $31.3 bn. One of the reasons for such an interest of investors is that Singapore provides an opportunity for businesses to expand to other markets.
The second place is taken by Indonesia ($20.8 bn), which is explained by high demand for fintech in the country and maturity of the industry’s infrastructure. The rest of the countries show much smaller funding volumes.
Vietnam, which continues the list, attracted only $3.8 bn. As for the ranking in terms of the number of funded rounds in the region: the leader is Singapore (5416 rounds), followed by Indonesia (3248) and Malaysia (906).
Speaking about the origin of investors who invested in the region’s fintech, the USA showed the highest activity. The volume of funding coming from the country amounted to $6.7 bn – 10.6% of the total.
Investors from Singapore provided $6.4 bn (10.2%). As for the number of rounds globally, Singaporean investors remain the leaders having funded 1889 rounds compared to 1449 for the USA. The third place is taken by Indonesia (986 rounds), where the majority of funded rounds are domestic (56%), similar to Singapore (54%).
Some analysts believe thins ranking also reflects the case regarding the number of unicorn companies.