The funding secured by startups in the Southeast Asian region has increased significantly during the second quarter of 2020 despite the challenges posed by the Covid-19 pandemic, the media reported.
The fintech and ecommerce sectors garnered most of the funding during the period.
According to DealStreetAsia, the value of fundraising deals in the region increased by 91 percent on the year to $2.7 billion. Also, the number of transactions climbed 59 percent to 184 for the three months through June, up from 116 in the same period a year earlier.
The biggest deal signed during the period was by Indonesian ecommerce platform Tokopedia, which secured $500 million from Singapore state investment firm Temasek Holdings.
Similarly, Philippines-based mobile payment app Paymaya also secured $120 million funding in April from existing shareholders, including US private equity fund KKR and Chinese tech giant Tencent Holdings.
Bangkok-based fintech startup Synqa Holdings raised $80 million from Thai and Japanese investors.
With regard to the funding, Synqa founder and chief executive officer Jun Hasegawa told the media, “Despite these challenging times, I see a lot of opportunities in accelerating digital payments and digital transformation for enterprises.”
Over the years, the funding scenario for startups in Southeast Asia has boomed. This is attributed to the establishment of startups such as ride-hailing Grab and Gojek which has changed the very landscape in the region. Over the years, both Grab and Gojek has diversified their business and secured million in separate funding rounds.
However, startups in the logistics, transport, and travel sector have been hit hard by the Covid-19 pandemic.