Funding into e-commerce startups in Southeast Asia dropped to the lowest level in at least four years in the first quarter of 2024 despite a pickup in overall consumption.
E-commerce startups in the region could garner only $18 million in Q1, down by a steep 97.2% from the previous quarter despite a marginal increase in deal volume, per DealStreetAsia’s SE Asia Deal Review: Q1 2024 report. Deal value also plunged 90.5% from the same period last year, while deal volume more than halved during the period.
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Source: DealStreetAsia DATA VANTAGE
E-commerce fails to score late-stage deals in Q1
Late-stage deals, which have consistently lagged in e-commerce, failed to open an account in Q1 for the first time in at least 16 quarters. There was only one such deal recorded in the previous sequential quarter and three in Q1 2023.
Thai B2C commerce platform Konvy.com recorded the highest funding in the quarter with an $11-million Series A funding round followed by Motorist’s $3-million Series A round. The top two deals accounted for around 78% of the total funding into the sector during the period.
Source: DealStreetAsia DATA VANTAGE
E-commerce falls out of the top 10 most funded verticals
E-commerce failed to occupy a slot among the top 10 most funded verticals in the region although it secured the fourth place in terms of deal volume. Fintech and software & IT topped the charts in terms of both deal value and deal volume in Q1 2024. Fintech was the most favoured vertical as investors poured $324 million into the sector across 40 deals, while software & IT was a distant second raising $99 million through 24 deals.
Source: DealstreetAsia DATA VANTAGE
Source: DealstreetAsia DATA VANTAGE
Top e-commerce markets struggle to attract funds
Funding in Singapore-based e-commerce startups saw a dramatic fall to just $5 million in Q1 2024 from $699 million in the previous quarter and $77 million in Q1 2023. Deal volume in the quarter also halved from the corresponding period last year.
Indonesia, traditionally the favourite destination for e-commerce investments in the region, recorded just two deals in the quarter, while it was only one-fifth of the deal volume during the same period in the previous year. The e-commerce sector did not score a single deal in Q4 2023.
Source: DealStreetAsia DATA VANTAGE