Bridging the Funding Gap: The Rise of Southeast Asian Startups
May 22, 2025, 2:34 pm
Southeast Asia is a vibrant tapestry of innovation. Startups are sprouting like wildflowers, each one unique, each one promising. Yet, the landscape is not without its challenges. A significant gap looms in late-stage funding, threatening to stifle growth. This article explores the recent funding activities in the region, highlighting the dynamism of emerging companies and the urgent need for robust investment strategies.
In recent weeks, several startups have made headlines by securing substantial funding. CrediLinq, a fintech startup from Singapore, recently raised an undisclosed amount in a Series A funding round. This capital will help expand its embedded finance infrastructure for small and medium enterprises (SMEs). CrediLinq’s innovative underwriting engine uses real-time transaction data, a refreshing departure from traditional methods. It’s a game-changer for SMEs seeking financing.
Meanwhile, Quantified Energy, another Singaporean startup, closed a Series A round to enhance its drone-based solar diagnostics. This company, a spinout from the Solar Energy Research Institute of Singapore, is revolutionizing solar panel inspections with autonomous technology. Their approach is fast and non-invasive, making it a vital player in the renewable energy sector.
Ringkas, a mortgage tech startup, has also made waves by raising USD 5.1 million. With AI-powered tools, it simplifies mortgage access across Southeast Asia. Operating in 47 cities and collaborating with 29 banks, Ringkas is poised to transform the mortgage landscape in Indonesia, Vietnam, and the Philippines. The funds will bolster its engineering team and establish an R&D center in Vietnam.
The mobile data sector is not left behind. Firsty, a Singapore-based startup, has raised SGD 7.5 million to expand its freemium mobile data service. This innovative model allows users to access basic data for free, with the option to upgrade for a nominal fee. Firsty’s service spans over 160 countries, and its partnership with GlobalTix will further enhance its reach in the travel sector.
Whale, an enterprise AI company, has secured over USD 60 million in Series C1 and C2 funding rounds. With a suite of AI products tailored for various sectors, Whale is expanding its footprint across Southeast Asia, North America, and Europe. Its technology is already in use in over 300,000 stores worldwide, showcasing its scalability and impact.
On the environmental front, Remind, an Indonesian e-waste recycling startup, has raised USD 1.3 million. This funding will help it open a separation facility and increase processing volumes significantly. As e-waste becomes a pressing global issue, Remind’s mission to recover valuable metals from electronics is timely and crucial.
Phase Scientific, a biotech startup, has raised USD 34 million to advance urine-based diagnostics. Its innovative tools aim to provide non-invasive tests for various health conditions. This funding will accelerate the commercialization of its groundbreaking technology, potentially transforming healthcare diagnostics.
Brik, another Indonesian startup, has secured nearly USD 10 million to digitize construction material supply chains. By aggregating building materials and partnering with local producers, Brik is set to enhance efficiency in the construction sector. Its focus on labor efficiency technologies positions it well for future growth.
Citics, a Vietnamese real estate platform, has raised USD 2.1 million to enhance its digital mortgage offerings. With AI-powered valuation tools and a robust platform for trading foreclosed properties, Citics is carving out a niche in the competitive real estate market.
Despite these success stories, a shadow looms over the region. The late-stage funding gap is a pressing concern. Mohammad Alblooshi, CEO of the DIFC Innovation Hub, has highlighted the need for more growth-stage capital in Dubai. While seed and early-stage funding is abundant, the transition to Series B and C rounds is fraught with challenges. Many startups are struggling to secure the necessary capital to scale operations.
A report by the Dubai Future District Fund (DFDF) underscores this issue, revealing that startups moving from Series B to C are facing significant funding shortages. The report suggests that while regional VCs are attempting to bridge this gap, international funds have become increasingly scarce. This trend poses a risk to the growth potential of promising startups.
However, there is a silver lining. The emergence of new funds, such as the MENA-focused growth fund launched by 500 Global, signals a shift in the investment landscape. This fund aims to support high-growth technology startups in the region, addressing the critical funding gap.
Alblooshi emphasizes the importance of unlocking regional capital, particularly from family offices. There is a wealth of family resources in the region, and educating these entities about startup investments could diversify their portfolios. The DIFC Innovation Hub is actively working to attract global VCs, positioning itself as a regional leader in fintech and emerging technologies.
The startup ecosystem in Southeast Asia is at a crossroads. The influx of funding is encouraging, but the late-stage funding gap remains a formidable barrier. To sustain the momentum, a concerted effort is needed to attract more growth-stage capital. As the region continues to innovate, the right investments will be crucial in nurturing the next wave of transformative startups.
In conclusion, Southeast Asia is a land of opportunity. Startups are rising, fueled by innovation and ambition. Yet, the journey is fraught with challenges. Bridging the funding gap is essential for these companies to thrive. With the right strategies and investments, the region can unlock its full potential, paving the way for a brighter future.
In recent weeks, several startups have made headlines by securing substantial funding. CrediLinq, a fintech startup from Singapore, recently raised an undisclosed amount in a Series A funding round. This capital will help expand its embedded finance infrastructure for small and medium enterprises (SMEs). CrediLinq’s innovative underwriting engine uses real-time transaction data, a refreshing departure from traditional methods. It’s a game-changer for SMEs seeking financing.
Meanwhile, Quantified Energy, another Singaporean startup, closed a Series A round to enhance its drone-based solar diagnostics. This company, a spinout from the Solar Energy Research Institute of Singapore, is revolutionizing solar panel inspections with autonomous technology. Their approach is fast and non-invasive, making it a vital player in the renewable energy sector.
Ringkas, a mortgage tech startup, has also made waves by raising USD 5.1 million. With AI-powered tools, it simplifies mortgage access across Southeast Asia. Operating in 47 cities and collaborating with 29 banks, Ringkas is poised to transform the mortgage landscape in Indonesia, Vietnam, and the Philippines. The funds will bolster its engineering team and establish an R&D center in Vietnam.
The mobile data sector is not left behind. Firsty, a Singapore-based startup, has raised SGD 7.5 million to expand its freemium mobile data service. This innovative model allows users to access basic data for free, with the option to upgrade for a nominal fee. Firsty’s service spans over 160 countries, and its partnership with GlobalTix will further enhance its reach in the travel sector.
Whale, an enterprise AI company, has secured over USD 60 million in Series C1 and C2 funding rounds. With a suite of AI products tailored for various sectors, Whale is expanding its footprint across Southeast Asia, North America, and Europe. Its technology is already in use in over 300,000 stores worldwide, showcasing its scalability and impact.
On the environmental front, Remind, an Indonesian e-waste recycling startup, has raised USD 1.3 million. This funding will help it open a separation facility and increase processing volumes significantly. As e-waste becomes a pressing global issue, Remind’s mission to recover valuable metals from electronics is timely and crucial.
Phase Scientific, a biotech startup, has raised USD 34 million to advance urine-based diagnostics. Its innovative tools aim to provide non-invasive tests for various health conditions. This funding will accelerate the commercialization of its groundbreaking technology, potentially transforming healthcare diagnostics.
Brik, another Indonesian startup, has secured nearly USD 10 million to digitize construction material supply chains. By aggregating building materials and partnering with local producers, Brik is set to enhance efficiency in the construction sector. Its focus on labor efficiency technologies positions it well for future growth.
Citics, a Vietnamese real estate platform, has raised USD 2.1 million to enhance its digital mortgage offerings. With AI-powered valuation tools and a robust platform for trading foreclosed properties, Citics is carving out a niche in the competitive real estate market.
Despite these success stories, a shadow looms over the region. The late-stage funding gap is a pressing concern. Mohammad Alblooshi, CEO of the DIFC Innovation Hub, has highlighted the need for more growth-stage capital in Dubai. While seed and early-stage funding is abundant, the transition to Series B and C rounds is fraught with challenges. Many startups are struggling to secure the necessary capital to scale operations.
A report by the Dubai Future District Fund (DFDF) underscores this issue, revealing that startups moving from Series B to C are facing significant funding shortages. The report suggests that while regional VCs are attempting to bridge this gap, international funds have become increasingly scarce. This trend poses a risk to the growth potential of promising startups.
However, there is a silver lining. The emergence of new funds, such as the MENA-focused growth fund launched by 500 Global, signals a shift in the investment landscape. This fund aims to support high-growth technology startups in the region, addressing the critical funding gap.
Alblooshi emphasizes the importance of unlocking regional capital, particularly from family offices. There is a wealth of family resources in the region, and educating these entities about startup investments could diversify their portfolios. The DIFC Innovation Hub is actively working to attract global VCs, positioning itself as a regional leader in fintech and emerging technologies.
The startup ecosystem in Southeast Asia is at a crossroads. The influx of funding is encouraging, but the late-stage funding gap remains a formidable barrier. To sustain the momentum, a concerted effort is needed to attract more growth-stage capital. As the region continues to innovate, the right investments will be crucial in nurturing the next wave of transformative startups.
In conclusion, Southeast Asia is a land of opportunity. Startups are rising, fueled by innovation and ambition. Yet, the journey is fraught with challenges. Bridging the funding gap is essential for these companies to thrive. With the right strategies and investments, the region can unlock its full potential, paving the way for a brighter future.