Southeast Asia’s internet economy bounces back with record investments in e-commerce, digital financial services
- Deal-making rose by 65 per cent to reach US$11.5 billion in the first six months of 2021, creating 11 new consumer tech unicorns
- About 75 per cent of Southeast Asians are now internet users, and the internet economy is set to double to US$363 billion by 2025, driven by spending on travel, e-commerce, media, transport and food
The number of deals between January and June in 2021 rose by 65 per cent compared to the same period last year, suggesting a rebound from the pandemic-induced slowdown in 2020, when US$11.6 billion flowed into the internet economy.
The figure was US$12 billion in 2019, according to the report by Google, Singapore’s state investor Temasek and management consultancy Bain & Company.
Rohit Sipahimalani, Temasek’s chief investment strategist, said there is an “increasing realisation” of the potential of Southeast Asia’s internet economy, following the public listing of several of the region’s start-ups.
This year’s growth was also powered by big-ticket deals, including the US$2 billion raised by Indonesian logistics firm J&T Express in April. The courier company counts Chinese private equity firms Boyu Capital, Hillhouse Capital and Sequoia Capital China as its investors, and is reportedly looking to list in Hong Kong next year.