SEA quarterly investment analysis Q4 CY23 December 2023 Confidential and proprietary © 1Lattice
Foreword Southeast Asia (SEA) region is an interesting area due to its central position in the Asia - Pacific region and ever - growing economies that are a part of it. The region boasts of a better Real GDP growth rate and lower inflation rate (Y - o - Y) than the USA and the European Union. In the fourth quarter of 2023, startups in Southeast Asia secured US$ 1.7B across 137 deals (including early, growth and late - stage investments), reflecting a 54% (Q - o - Q) rise. While investment sentiments have improved in Q4, overall investments still remained ~30% lower in Q4 CY23 on Y - o - Y basis. This dip in investments can be attributed to rising costs of capital and shifting investor sentiment amid macro - economic uncertainties. Following this, SEA witnessed a drop in average deal sizes over last year as well. Despite encountering challenges, the outlook for investments in the SEA region remains promising, adorned with opportunities for growth and prosperity. Middle Eastern and Japanese business giants have set their eyes on the SEA startups, for instance JTA Holding (Qatar) and SBI Holdings (Japan) investing US$ 231M in Investree , an Indonesian P2P lending platform this quarter. SEA's digital economy thrives on a young population, extensive internet usage, and a burgeoning middle class, making it one of the world's fastest - growing internet market. This report aims to uncover some of the key trends in funding ecosystem within Southeast Asia during the fourth quarter of the calendar year 2023. At 1Lattice, we hold an optimistic outlook, believing that this report will provide valuable insights. We eagerly anticipate the opportunity to engage in an open dialogue with our partners across diverse industries, as we exchange notes and delve deeper into these matters while closely monitoring the evolving situation. Roma Dixit Director, Financial Investors © 1Lattice | 2
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Key takeaways ● SEA companies raised US$ 1.3B across 132 deals (early to growth stages) in Q4 CY23, showing some recovery with increase in $ value (18%) and # volume (16%) as compared to Q3 CY23 ‒ Considering late stage and PIPE deals, SEA companies raised US$ 1.7B across 137 deals ● Singapore attracted highest funding ( US$ 861M) , followed by Indonesia ( US$ 463M) and Vietnam ( US$ 256M) ● SaaS / AI was the most attractive sector for early - stage investments ( ~US$ 145M); Companies in SEA are increasingly adopting cloud - based solutions for enhanced scalability, flexibility & cost efficiency, thereby increasing attractiveness of SaaS / AI companies ‒ Qosmosys received the highest funding of ~US$ 100M among early - stage investments in Q4 CY23 ● BFSI dominated growth - stage investments (~US$ 328M) followed by consumer app & platforms (~US$ 186M) ‒ Investree received the highest funding in this space (~US$ 231M) which accounted for ~70% of total funding in the BFSI sector ● BFSI (~US$ 372M) & FMCG (~US$ 250M) based tech companies attracted highest tech investments during the quarter
Key highlights Funding # Deal v olume Average deal size US $ 1.7 B 135+ US$ 10.2M (includes early, growth and late - stage investments) SNAPSHOT Q4 2023 Top funded sector Most funded stage E arly & growth stage funding BFSI Early US$ 1.3B
Market by segments BFSI leads funding followed by SaaS / AI in Q4 CY2023 Funding market segment wise break - up (US$ M, Q4 CY23) Total funding size: US$ 1751 M 136 307 264 372 Manufacturing 122 SaaS / AI FMCG 264 213 Healthcare 22 Others* 45 14 BFSI Consumer apps & platforms Energy Ecommerce & listing platforms Engg . Note(s): * - These include agriculture, climate tech, cybersecurity, retail, transportation and logistics, etc. © 1Lattice | 6 Source(s): Statistical reports, industry reports, secondary research, 1Lattice analysis
Agenda Deal landscape in Q4 CY23 Key deals and investment themes Key investors
SEA Region definition Vietnam Philippines Thailand Malaysia Singapore Indonesia © 1Lattice | 8
Early & growth stage investments Early & growth investments in Q4 CY23 show some signs of recovery over previous quarter, however, is lower by 30% on Y - o - Y basis Investment amount (US$ B) and # deals (Q3 CY22 – Q3 CY23) 1.8 1.7 1.5 176 169 157 1.3 1 .0 1.1 132 0.8 1.3 114 0.8 0.7 0.8 0.7 0.5 0.4 0.4 Q4 CY22 Q1 CY23 Q2 CY23 Q3 CY23 Q4 CY23 Early Growth Deals Q4 witnessed 5 l ate and PIPE deals amounting to ~US$ 0.4B pushing total investments for the quarter to ~US$ 1.7B Note(s): Stage of investment here is decided by the round of investment. Pre - seed, seed, pre - series, and Series A are classified as Early , Series B, C, D and E are classified as Growth Source(s): 1Lattice Deals Database © 1Lattice | 9
Early & Growth average deal size Average deal size remained stagnant around US$ ~10M over last three quarters Average deal size Split of deal volume 15.2 (US$ M, Q4 CY22 – Q4 CY23) (#, Q4 CY22 – Q4 CY23) 176 157 169 114 132 13.9 14% 21% 22% 26% 27% 10.2 10.0 9.6 86% 79% 78% 74% 73% Q4 CY22 Q1 CY23 Q2 CY23 Q3 CY23 Q4CY23 Q4 CY22 Q1 CY23 Q2 CY23 Q3 CY23 Q4 CY23 Early Growth Note(s): Chart includes only early (Pre - seed, seed, pre - series and Series A), & growth (Series B, C, D and E) stage investments Source(s): 1Lattice Deals Database © 1Lattice | 10
Country - wise investments Singapore drew total highest investments amounting to ~US$ 860M; Indonesia has the highest average deal size (~16.5M) Investment amount (US$ M) and # deals (Q4 CY23) Avg. deal size 11.2 16.5 13.3 6.2 0.5 5.7 (US$ M) = ~65% Q - o - Q 77 increase in funding due to robust expansions in the manufacturing and construction sectors The investment amounts for ~45% deals for these 861 countries are undisclosed 28 463 9 7 256 4 12 93 74 2 Indonesia Singapore Malaysia Vietnam Thailand Philippines Note(s): Chart includes Early (Pre - seed, seed, pre - series, and Series A), & growth (Series B, C, D, and E) stage investments , Late, PIPE, and Other deals Source(s): 1Lattice Deals Database © 1Lattice | 11
Agenda Deal landscape in Q4 CY23 Key deals and investment themes Key investors
Top 10 investments in CY23 Kredivo received the highest funding of ~US$ 270M in SEA region in CY23 Top 10 investments in CY23 Amount Funding Company Sector Country Key Investors (US$ M) stage Mizuho Financial Group, Square Peg Capital, Jungle Ventures, Naver, GMO 270 Growth Indonesia Fintech Venture Partners, Openspace Ventures, Naver Fiancial JTA Holding, SBI Group BFSI 231 Growth Indonesia 42XFund, responsibility, 500 Global, Northstar Ventures, Temasek, 200 Food & Agri Tech Growth Indonesia Softbank, Kumpulan Wang Persaraan 65 Equity Partners, SeaTown Holdings International, Qatar Investment Auto tech 200 Growth Indonesia Authority, Gobi Partners, Asia Partners Bain Capital FMCG 200 PIPE Vietnam Toko Marine Insurance Group, MetLife, Khazanah Nasional Berhad, Pacific 196 Fintech Growth Singapore Century Group, Mundl Ventures, Activant Capital, EDBI Consumer app & 180 Growth Singapore Sumitomo Life Insurance Company platforms Consumer app & 150 IFC Late Indonesia platforms 105 Sherpa Financial Services Growth Indonesia Transportation & 100* OCP Asia Growth Malaysia Logistics Note(s): Other companies with US$ 100M investment are HaloDoc , Aspire & Qosmosys © 1Lattice | 13 Source(s): 1Lattice Deals Database
Top 10 investments in Q4 CY23 Top 10 investments in Q4 CY23 add up to ~US$ 1.1B i.e. ~65% of the total investments in the quarter Top 10 investments in Q4 CY23 Amount Funding Company Sector Country Key Investors (US$ M) stage JTA Holding, SBI Group BFSI 231 Growth Indonesia Bain Capital FMCG 200 PIPE Vietnam 180 Sumitomo Life Insurance Company Growth Singapore Consumer app & platforms 150 Late Indonesia IFC Consumer app & platforms Undisclosed Manufacturing 100 Early Singapore Mitsui & Co . Saas / AI 58 Growth Malaysia Bain Capital FMCG 50 PIPE Vietnam 50 Lightspeed Venture Partners Saas / AI Growth Singapore 40.8 Novo Holdings, Square Peg Ventures Healthcare & Life Sciences Growth Singapore Eurazeo , BNP Paribas Cardif , Openspace 36 Consumer app & platforms Growth Singapore Ventures, La Maison Partners © 1Lattice | 14 Source(s): 1Lattice Deals Database
Early - stage investments SaaS / AI received highest funding (~US$ 145M) among early - stage investments Top 10 early - stage investments in Q4 CY23 Early - stage investments, by Amount sector Company Sector Country Key Investors (US$ M) (US$ M, Q4 CY23) Manufacturing 1 00 Singapore Undisclosed AC Ventures, Innoven Capital, Kickstart Ecommerce & SaaS / AI 143 35 Philippines Ventures, GS Group, Gentree Fund listing platform Polaris Partners, ClavystBio, Invus, EDBI, Healthcare & Life Manufacturing 121 27 Singapore Coronet Ventures and SEEDS Capital Sciences 22 Singapore Eight Roads Ventures, FutureX Consumer app & SaaS / AI 77 platforms Gobi Partners, CMIA Capital Partners, Bintang Consumer app & 20 Singapore Capital Partners platforms Ecommerce & listing Xora Innovation, Two Sigma Ventures, 57 platforms 19.7 Singapore Western Technology Investments, Innovation SaaS / AI Endeavors Healthcare & Life 52 Orient BFSI 18 Indonesia Sciences Pavilion Capital Partners, SKS Capital, ICCP SBI BFSI Venture Partners, JG Digital Equity Ventures, 43 17.8 Philippines SaaS / AI Kaya Founders, Magsaysay Family, Chan family and Foxmont Capital Others include FMCG, Energy 10 Retail, Telecom and Intudo Ventures, Mirova , SMDV, The Meloy Engg & Cons. Others 16.13 Indonesia Fund Others ANRI, Hashed, Global Brain, Globis Capital 33 Partners, Sfermion , HashKey Capital, SaaS / AI 12.7 Singapore Everyrealm , Ethereal Ventures, Emoote © 1Lattice | 15 Note(s): Early - stage investments include Pre - seed, Seed, Pre - series and Series A Source(s): 1Lattice Deals Database
Top early - stage investments Top funded early - stage startups with their competitors Company Description Competitors Provider of spacecraft for space programmes Platform offering mom and baby products Developer of platform technology for combinatorial genetics discovery Provider of Generative AI solutions for consumers, businesses, and enterprises Provider of mobile application development company Note(s): Early - stage investments include Pre - seed, Seed, Pre - series and Series A Source(s): 1Lattice Deals Database © 1Lattice | 16
Growth - stage investments BFSI dominated growth - stage investments (~US$ 328M) Top 10 growth - stage investments in Q4 CY23 Growth - stage investment, by sector (US$ M, Q4 CY23) Amount Company Sector Country Key Investors (US$ M) JTA Holding, SBI Group BFSI BFSI 231 Indonesia 328 Consumer app & 180 Singapore Sumitomo Life Insurance Company One mega - deal in BFSI Consumer app platform 186 sector amounted to US$ & platforms ~230M, accounting for 58 Malaysia Mitsui & Co. SaaS / AI ~70% of total investments in the sector SaaS/AI 164 SaaS / AI 50 Singapore Lightspeed Venture Partners Healthcare & Life Healthcare & 40.8 Singapore Novo Holdings, Square Peg Ventures 71 Sciences life sciences Eurazeo, BNP Paribas Cardif, Consumer app & 36 Singapore Openspace Ventures, La Maison platforms Partners Energy 35 35 Singapore IFU Energy Manufacturing 15 SaaS / AI 34 Philippines Navegar, East Ventures Healthcare & Life 30 Singapore Veradigm Sciences Engg and Cons 14 24 Singapore D Squared Capital, Moneta BFSI © 1Lattice | 17 Note(s): Growth - stage investments include Series B, C, D and E Source(s): 1Lattice Deals Database
Top growth - stage investments Top funded growth - stage startups with their competitors Company Description Competitors Online P2P lending platform for business loans Provider of an app - based life and health insurance platform Digital marketing agency for planning and media integration NFC - enabled travel cards and wallets provider for travelers Provider of online telemedicine services Note(s): Growth - stage investments include Series B, C, D and E Source(s): 1Lattice Deals Database © 1Lattice | 18
Tech investments BFSI attracted the highest tech investments in Q4 CY23 followed by FMCG & Fintech Tech investments*, by sector Top 10 tech investments in Q4 CY23 (US$ M, Q4 CY23) Amount BFSI 372 Company Sector Country Key Investors (US$ M) FMCG 250 BFSI 231 Indonesia JTA Holding, SBI Group Fintech 209 FMCG 200 Vietnam Bain Capital Travel & Hospitality 158 Sumitomo Life Insurance Fintech 180 Singapore Manufacturing 109 Company Travel & 150 Indonesia IFC Healthtech 90 hospitality Energy 45 Manufacturing 100 Singapore Undisclosed Media & entertainment 28 FMCG 50 Vietnam Bain Capital Pharma & Biotech 27 Novo Holdings, Square Peg Healthtech 40.8 Singapore Ventures Agritech 17 Eurazeo, BNP Paribas Cardif, BFSI 36 Singapore Openspace Ventures, La Others include consumer Gaming Maison Partners 16 healthcare, engineering & construction, B2B Energy 35 Singapore IFU Others 33 ecommerce Healthtech 30 Singapore Veradigm Notes: *Investments in businesses that primarily focus on the development, manufacturing, support, research, and development of technology - intensive products and services © 1Lattice | 19 Source(s): 1Lattice Deals Database
Top 10 M&As Top 10 M&As in Q4 CY23 Top 10 M&As in Q4 CY23 Amount Acquired Company Sector Date Country Acquirer (US$ M) E - commerce & listing December 11, 1500 Indonesia platforms 2023 219 October 4, 2023 Indonesia BFSI December 19, 129 Thailand Retail 2023 SaaS / AI 103 October 30,2023 Thailand 101 November 7,2023 Indonesia Engineering & construction December 12, 67.5 Singapore IT services 2023 E - commerce & listing 25 November 1, 2023 Thailand platforms Transportation & logistics 19.8 December 1, 2023 Indonesia November 27, 15.1 Indonesia Healthcare & Life Sciences 2023 December 14, 14.4 Singapore Manufacturing 2023 Note(s): Includes top M&A deals whose amounts were disclosed Source(s): 1Lattice Deals Database © 1Lattice | 20
CY23: Top 10 M&As Top 10 M&As in CY23 Top 10 M&As in CY23 Amount Acquired Company Sector Date Country Acquirer (US$ M) E - commerce & listing December 11, 1500 Indonesia platforms 2023 576 March 21, 2023 Indonesia Manufacturing 465 June 26, 2023 Indonesia BFSI Manufacturing 460 July 26, 2023 Singapore 381 June 20, 2023 Vietnam Healthcare & Life sciences Retail 282 January 17, 2023 Philippines BFSI 219 October 4, 2023 Indonesia December 19, 129 Thailand Retail 2023 124 March 16, 2023 Philippines Telecom 103 October 30,2023 Thailand SaaS / AI Note(s): Includes top M&A deals whose amounts were disclosed Source(s): 1Lattice Deals Database © 1Lattice | 21
Agenda Deal landscape in Q4 CY23 Key deals and investment themes Key investors
Active investors Most active investors of Q4 CY23 Growth - stage investors Early - stage investors (# deals) (# deals) 2 10 2 7 * 1 6 * 1 5 * 1 4 * 1 * 4 1 Note(s): * - Top investors (by value) are considered © 1Lattice | 23 Source(s): 1Lattice Deals Database
Active early - stage investors Most active early - stage investors and their investment segments in Q4 CY23 Others include BFSI, Engg . & cons., transportation, etc . Healthcare & Life E - commerce and Consumer app & Investors Manufacturing SaaS/AI Others Sciences listing platforms platforms - - - - - - - - - - - - - - - - - - - © 1Lattice | 24 Source(s): 1Lattice Deals Database
Active growth - stage investors Most active growth - stage investors and their investment segments in Q4 CY23 Ecommerce Healthcare Consumer Investors & listing & Life Manufacturing FMCG SaaS/AI app & BFSI Engg & Cons platforms Sciences platforms - - - - - - - - - - - - - * - - - - - - - * - - - - - - - * - - - - - - - * - - - - - - - * - - - - - - - Note(s): * - Top investors (by value) are considered © 1Lattice | 25 Source(s): 1Lattice Deals Database
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