• About Us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI English
TFI हिन्दी
Friday, June 9, 2023
TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
TFIGlobal
No Result
View All Result

ASEAN is making a killing out of China’s economy

Vikrant Thardak by Vikrant Thardak
February 2, 2022
in East Asia
Reading Time: 3 mins read
0
ASEAN
9.2k
VIEWS
Share on FacebookShare on Twitter

Southeast Asia has been the topmost benefactor of the ongoing economic crisis in China. Vietnam, for instance, experienced an unprecedented influx of companies over the last two years. Last month, reports emerged that Malaysia’s semiconductor industry could also register stupendous growth at the expense of Chinese markets. Similarly, Singapore’s economy has also remained a front-runner in making the best out of China’s financial woes over the last year.

Startups in ASEAN grow at a mad pace

Now, a Nikkei Asia report recently revealed that startups in the ASEAN region bagged a record $25.7 billion funding in 2021. Data compiled by Singaporean startup information platform DealStreetAsia revealed that the region’s startups raised $25.7 billion in 2021, 2.7 times the $9.4 billion in 2020. That also topped the previous peak of about $14 billion in 2018.

Also Read

How was BRICS formed and why is it yet to achieve its true potential

France and Italy defy Biden’s diktat of banning Russia completely

“While the surge of funding is emblematic of a young and growing market, it is also a testament to the enduring confidence of global investors in the potential of Southeast Asia as both an emerging market for business and a global hub for technological innovation,” DealStreetAsia wrote in its analysis.

The region’s start-up ecosystem lost the first-mover advantage to China in the early 2000s. It was only in the 2010s that the ecosystem began to develop in the Southeast Asian region. And then the regional startup ecosystem experienced a record-breaking surge during the pandemic, which forced the world to adopt the abnormal and go online.

Top fundraisers

Singapore’s ride-hailing-business-turned-super app Grab and its Indonesian rival Gojek remained the topmost fundraiser. The Nikkei Asia report mentioned, “Indonesia’s GoTo, a tech group created through the merger of Gojek and Tokopedia, raised $1.6 billion, including money raised by Gojek before the deal, making it the second-largest fundraiser. Grab also raised $675 million before its U.S. public listing in December, the fourth biggest.”

(Source: Nikkei Asia)

As the pandemic forced people to go cashless, the Fintech startup ecosystem also got a big boost. What demonetization did to Indian Fintech in 2016 is exactly what the pandemic did to Southeast Asia’s Fintech ecosystem last year. Resultantly, the region’s Fintech companies raised $5.83 billion last year alone, 4 times higher than the previous year.

Mynt of the Philippines raised $475 million last year. Also, Vietnam’s MoMo received $300 million in funding. According to the DealStreetAsia report, 25 startups from six Southeast Asian countries became unicorns in 2021, with their combined valuation at $55.4 billion.

(Source: Nikkei Asia)

Below the $1 billion threshold, the region’s young startups also experienced a flurry of new and young investors. “We continue to see new investors taking a very strong interest. We have a lot of reverse inquiries from investors who are asking if they can consider an investment into the company,” Lim Wai Mun, CEO of Singaporean telehealth company Doctor Anywhere, said in an interview with Nikkei Asia.

2022 to witness even stronger growth

Industry experts say that the trend is expected to go up even steeper this year. “I believe the fundraising trend will continue to be strong,” Martin Tang, co-founder and partner of Genesis Alternative Ventures in Singapore, told Nikkei Asia. “PE and [venture capital] funds are still sitting on a lot of dry powder, and this needs to be deployed,” he said, referring to cash held by funds. “There are also PE and VC funds that slowed deployment in 2020 and missed out on the robust recovery of the economy overall. They are aggressively playing catch-up now.”

Read More: Singapore is killing China’s consumer banking business in ASEAN

The China factor

Japan’s Softbank group has been the biggest investor in the region’s startup ecosystem. Last year, the group poured billions of dollars into Grab and Indonesian e-commerce platform Tokopedia. The Japanese government has been vigorously pushing the region to stand up on its feet to counter China’s economic coercion. Softbank’s leap of faith towards the Southeast Asian region and nations like India is also a result of shrieking business in Chinese markets.

On 8th November last year, the conglomerate found itself stuck in a “big winter snowstorm.” SoftBank posted a loss of 397 billion yen ($3.5 billion) for the July-to-September quarter. Masayoshi Son, founder and CEO of SoftBank, said that the company’s net asset value fell by 6 trillion yen ($54.3 billion) to $187 billion. In this background, SoftBank Group is planning to make up for these losses and wants to further propel SoftBank into the profitable territory by investing in India’s first wave of startup IPOs and Southeast Asia’s startups.

Read More: SoftBank is taking from China and investing in India. Wise call

India and the Southeast Asian region are the fastest-growing low-income developing economies that sit lure short-term as well as long-term investors from across the world. Especially, when corporate and manufacturers are fleeing China in a way never seen before. Today, every nation in the Southeast region is growing at the expense of China.

 

Tags: ASEANChinaExhaustive ReadIndonesiaSingaporeSoft Bank
ShareTweetSend
Previous Post

 A weepy Bob Hawke signed a paper in 1989 that handed CCP the remote control of Australia

Next Post

NATO’s terse statement against Biden’s warmongering in Ukraine

Also Read

Vietnam Money Laundering Case

Vietnam: Money Laundering Case Leads to Incarceration of 21 Individuals

April 28, 2023
Sakhalin projects

India turns Japan into a borderline Russian ally

April 4, 2023
North Korea and China rekindle their lost lust for power

North Korea and China rekindle their lost lust for power

April 1, 2023
Indonesia phase out Visa and Mastercard

Indonesia’s Shocking Decision on Visa and Mastercard!

March 28, 2023
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
11th July: The date set by Victoria Nuland for WWIII

11th July: The date set by Victoria Nuland for WWIII

May 31, 2023
Its Official: Biden is waving white flag against Iran

Its Official: Biden is waving white flag against Iran

June 2, 2023
A military emergency could soon be imposed in Europe

A military emergency could soon be imposed in Europe

June 2, 2023
Putin’s Odessa Ambitions are About to Come True

Putin’s Odessa Ambitions are About to Come True

June 1, 2023
UAE’s Record Gold Purchase from Russia could have De-dollarization written all over it

UAE’s Record Gold Purchase from Russia could have De-dollarization written all over it

May 29, 2023
Trudeau showers $1.3 bn to his employees for under performing

Trudeau showers $1.3 bn to his employees for under performing

June 9, 2023
Rotten or no food, at double the price for Ukrainian troops- a massive scam

Rotten or no food, at double the price for Ukrainian troops- a massive scam

June 9, 2023
Now there are clear proofs that it is not Ukraine’s war but US’s

Now there are clear proofs that it is not Ukraine’s war but US’s

June 9, 2023
How was BRICS formed and why is it yet to achieve its true potential

How was BRICS formed and why is it yet to achieve its true potential

June 8, 2023
An Ursula vs Meloni war has broken out and Meloni seems to be winning this one

An Ursula vs Meloni war has broken out and Meloni seems to be winning this one

June 8, 2023
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2023 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

©2023 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.