SEA quarterly investment analysis Q1 CY24 April, 2024 Confidential and proprietary © 1Lattice
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Foreword Foreword Southeast Asia (SEA) region is an interesting remains promising, adorned with opportunities area due to its central position in the Asia - for growth and prosperity. As the middle class Pacific region and ever - growing economies in the region grows and disposable incomes that are a part of it. The region boasts of a increase, there will be a corresponding better Real GDP growth rate (Y - o - Y) than the increase in demand for consumer tech USA and the European Union. products, mirroring trends seen in other developed markets. In the first quarter of 2024, startups in Southeast Asia secured US$ 1.9B across 111 This report aims to uncover some key trends in deals (including early, growth, and late - stage Southeast Asia's funding ecosystem during the investments), reflecting a 12% (Q - o - Q) rise. The first quarter of the calendar year 2024. At average deal size has seen growth rate of ~10% 1Lattice, we hold an optimistic outlook, over the last two quarters. Additionally, the believing that this report will provide valuable focus on clear and viable paths to profitability insights. We eagerly anticipate the opportunity by tech firms in Southeast Asia played a to engage in an open dialogue with our crucial role in attracting investors; tech partners across diverse industries, as we investments in SEA accounted for 46% of the exchange notes and delve deeper into these early and growth - stage investments. matters while closely monitoring the evolving situation. The outlook for investments in the SEA region Roma Dixit Praneet Singhal Director, Senior Director, Technology & Internet Financial Investors © 1Lattice | 4
Key takeaways ● SEA startups raised US$ 1.9B across 111 deals (early to late stages) in Q1 CY24, signaling an increase in $ value (12%) , in spite of a slowdown in # volume ( - 17%) as compared to Q4 CY23. ‒ Late - stage deals increased by 75% over last quarter ‒ Avg deal size increased by ~10% to US$ 11.1M ● Singapore attracted highest funding (US$ 752M) , followed by Indonesia (US$ 230M) and Philippines (US$ 163M). ● Consumer app & platforms was the most attractive sector for early - stage investments (~US$ 181M) followed by SaaS/AI (~US$ 173M). ● SingAuto , a manufacturer of cold - chain logistics vehicles, received the highest funding of ~US$ 45M among early - stage investments. ● Manufacturing dominated growth - stage investments (~US$ 200M) followed by BFSI (~US$ 153M). ‒ Silicon Box, the only investment in manufacturing sector, received the highest funding in this space (~US$ 200M) ● Fintech (~US$ 272M) & Enterprise tech (~US$ 60M) attracted highest tech investments in Q1 CY24. ● Hashkey Capital, Insignia Venture Partners and OKX Ventures were the most active early - stage investors in Q1 CY24 while Mizuho Capital and Mass Mutual Ventures were the most active growth - stage investors during the quarter.
Key highlights Funding # Deal v olume Average deal size US $ 1.9 B 111+ (includes early, growth US$ 11.1M and late - stage investments) SNAPSHOT Q1 CY 2024 Top funded sector Most funded stage E arly & growth stage funding Energy Late US$ 1.2B
Market by segments Energy leads funding, followed by Consumer app & platforms in Q1 CY 2024 Funding market segment wise break - up (US$ M, Q1 CY24 ) Total funding size: US$ 1,942 M* 241 276 304 687 Consumer apps & platforms Manufacturing BFSI Energy 276 18 50 49 E - commerce & listing 45 platforms Others** 8 IT SaaS / AI Retail Healthcare Services Note(s): * An approximate amount has been assumed for undisclosed deals basis previous deals of investors & the funding stage ; * * These include agriculture, climate tech, renting, charity, recycling, etc © 1Lattice | 7 Source(s): Statistical reports, industry reports, secondary research, 1Lattice analysis
Agenda Deal Landscape in Q1 CY24 Key deals and investment themes Key investors
Region definiton SEA Region definition Vietnam Philippines Thailand Malaysia Singapore Indonesia © 1Lattice | 9
Stage - wise investments Late - stage deals experienced an increase of 75% over last quarter, pushing total investments to US$ 1.9B Investment amount and # deals (US$ B, Q1 CY23 – Q1 CY24 ) 3.4 137 2.9 140 Q1 witnessed a 75% increase in late - 114 114 114 111 stage deals pushing total investments to US$ 1.9B 2.2 1.5 1.9 1.7 Q3 witnessed no l ate - stage deals 0.7 0.4 1.1 1 0.8 0.6 0.7 0.8 0.6 0.5 0.4 0.4 0.3 Q1 CY23 Q2 CY23 Q3 CY23 Q4 CY23 Q1 CY24* Early Growth Late Deals Note(s): * An approximate amount has been assumed for undisclosed deals basis previous deals of investors & the funding stage Source(s): 1Lattice Deals Database © 1Lattice | 10
Country - wise investments Singapore drew the highest investment (~US$ 752M), followed by Indonesia (~US$ 215M ) Investment amount and # deals (US$ M, Q1 CY24 ) Avg. deal size 10 . 9 14.3 20.3 6.1 2.5 2.7 (US$ M) = 69 752.5 15 8 215.2 6 6 4 162.6 36.7 14.9 10.6 Philippines Thailand Malaysia Singapore Vietnam Indonesia Deals Note(s): Chart includes only early (Pre - seed, seed, pre - series and Series A), & growth (Series B, C, D and E) stage investments; An approximate amount has been assumed for undisclosed deals basis previous deals of investors & the funding stage Source(s): 1Lattice Deals Database © 1Lattice | 11
Early & growth average deal size Average deal size grew by ~10% over the last quarter while overall deal volume decreased by ~17% Split of deal volume Average deal size (#, Q1 CY23 – Q1 CY24 ) (US$ M, Q1 CY23 – Q1 CY24 ) 13.9 157 169 132 109 114 14% 18% 21% 22% 26% 11.1 10.2 10.0 9.6 86% 82% 79% 78% 74% Q1 CY23 Q2 CY23 Q3 CY23 Q4 CY23 Q1 CY24* Q1 CY23 Q2 CY23 Q3 CY23 Q4 CY23 Q1 CY24* 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; * An approximate amount has been assumed for undisclosed deals basis previous deals of investors & the funding stage Source(s): 1Lattice Deals Database © 1Lattice | 12
Agenda Deal Landscape in Q1 CY24 Key deals and investment themes Key investors
Top 10 investments Top 10 investments in Q1 CY24 Top 10 investments in Q1 CY24 Amount Funding Company Sector Country Key Investors (US$ M) stage Blackrock Energy 673 Late BRV Capital, Praesidium Capital, Maverick Capital, Manufacturing 200 Growth Tata Electronics, UMC, TDK, and Lam Research Jumel Holdings, First Pacific Company, PLDT, SIG 80 Growth SaaS/AI Venture Capital, and Tencent Creador BFSI 71 Late Paypal Ventures, MUFG Innovation Partners, Flourish 47 Growth BFSI Ventures, and Eurazeo Manufacturing 45 Early Undisclosed 40 Azimut Holding BFSI Growth Gateway Partners, Creador Private Equity, and Consumer app & 32 Growth Nextinfinity Management platforms 28 Norfund (Norwegian government’s investment fund) BFSI Growth Consumer app & 25 Tether, CMCC Global Titan Fund, and 468 Capital Early platforms Note(s): Only deals with disclosed amounts were considered © 1Lattice | 14 Source(s): 1Lattice Deals Database
Early - stage investments Consumer app & platforms received highest funding (~US$ 181M ) among early - stage investments followed closely by SaaS/AI (~US$ 173M ) Early - stage investments, by sector* Top 10 early - stage investments in Q1 CY24** (US$ M, Q1 CY24 ) Amount Company Sector Key Investors (US$ M) Consumer app 181 Manufacturing 45 Undisclosed & platforms Tether, CMCC Global Titan Fund, and 468 Consumer app & 25 SaaS/AI 173 Capital platforms Venturi Partners Retail 25 Manufacturing 76 Consumer app & 23 Capria Ventures platforms Healthcare 31 & Life Sciences Qiming Venture Partners, Ondine Capital, and 22 Manufacturing GGV Capital Retail 30 Celadon Partners, WI Harper Group, SEEDS Healthcare & Life 21 Capital, and NSG Ventures Sciences BFSI 18 DragonFly Capital, Pantera Capital, Foresight Ventures, The Spartan Group, MEXC Ventures, Consumer app & Ecommerce & 19 Symbolic Capital, Public Works, MH Ventures, platforms 16 listing platforms and Everyrealm Peak XV Partners, Samsung Next, Hashkey, Others Consumer app & 15 18 Mirana, Signum, Tribe Capital, and Morningstar platforms Ventures Energy 14 East Ventures, MassMutual Ventures Southeast SaaS/AI 17 Asia, and Cercano Management Generative Ventures, Spartan Group, HV Capital, IT services 8 CMCC Global, Animoca Brands, Moonrock Capital, Fundamental Labs, TRGC, DWF Labs, Crit 15 SaaS/AI FMCG 3 Ventures, Cogitent Ventures, NGC Ventures, Agnostic Fund, and Altana Wealth Note(s): Early - stage investments include Pre - seed, Seed, Pre - series and Series A; Sequoia Capital is now Peak XV Partners; © 1Lattice | 15 0 100 200 * An approximate amount has been assumed for undisclosed deals basis previous deals of investors & the funding stage; ** Only deals with disclosed amounts were considered Source(s): 1Lattice Deals Database
Top early - stage investments in Q1 CY24 Top funded early - stage startups with their competitors Company Description Competitors Manufacturer of cold storage electric vehicles and parts based in Singapore Trading platform for cryptocurrencies Online platform for payday loans Manufacturer of automotive battery products Consumer - centric blockchain platform Note(s): Early - stage investments include Pre - seed, Seed, Pre - series and Series A; Only deals with disclosed amounts were considered Source(s): 1Lattice Deals Database © 1Lattice | 16
Growth - stage investments in Q1 CY24 Manufacturing dominated growth - stage investments (~US$ 200M ) Top 10 growth - stage investments in Q1 CY24** Growth - stage investment, by sector* Amount (US$ M, Q1 CY24 ) Company Sector Key Investors (US$ M) BRV Capital, Praesidium Capital, Manufacturing 200 Maverick Capital, Tata Electronics, Manufacturing 200 UMC, TDK, and Lam Research Jumel Holdings, First Pacific Company, 80 SaaS/AI BFSI 153 PLDT, SIG Venture Capital, and Tencent Paypal ventures, MUFG Innovation 47 BFSI Consumer app & Partners, Flourish Ventures, and Eurazeo 107 platforms BFSI 40 Azimut Holding SaaS/AI 103 38 BFSI Khazanah Nasional Berhad, Temasek Others 31 Gateway Partners, Creador Private Equity, Consumer app & 32 and Nextinfinity Management platforms Healthcare & Life 18 Norfund (Norwegian government’s 27.5 Sciences BFSI investment fund) Consumer app & Retail 15 25 Federated Hermes Private Equity platforms Mizuho Financial Group, Standard Ecommerce & listing Consumer app & 2.1 22 Chartered Bank, DBS Bank, and the platforms platforms Singapore Exchange (SGX) Huitung Investments, Honesty Ventures, SaaS/AI 21 and Cherubic Venture Note(s): Growth - stage investments include Series B, C, D and E © 1Lattice | 17 * An approximate amount has been assumed for undisclosed deals basis previous deals of investors & the funding stage; ** Only deals with disclosed amounts were considered Source(s): 1Lattice Deals Database
Top growth - stage investments in Q1 CY24 Top funded growth - stage startups with their competitors Company Description Competitors Provider of chiplet inter - connection company specializing in cutting - edge semiconductor integration services Financial services and digital payments company App - based insurance platform for life and non - life insurances Provide banking solutions for digital assets P2P marketplace for business loans Note(s): Growth - stage investments include Series B, C, D and E; Only deals with disclosed amounts were considered Source(s): 1Lattice Deals Database © 1Lattice | 18
Tech investments in Q1 CY24 Fintech & Enterprise Tech attracted highest tech investments in Q1 CY24 Early - stage investments by sector* Top 10 tech investments in Q1 CY24** (US$ M, Q1 CY24) Amount Company Sector Key Investors (US$ M) FinTech 272 Jumel Holdings, First Pacific Company, SaaS/AI 80 PLDT, SIG Venture Capital, and Tencent Gateway Partners, Creador Private Equity Consumer app & 32 and Nextinfinity Management Enterprise Tech 60 platforms Tether,CMCC Global Titan Fund, and 468 Consumer app & 25 Capital platforms HealthTech 23 Consumer app & 23 Capria Ventures platforms Celadon Partners, WI Harper Group, SaaS/AI 21 Pharma & BioTech 22 SEEDS Capital, and NSG Ventures Huitung Investments, Honesty Ventures, SaaS/AI 21 and Cherubic Venture LogisticsTech 6 DragonFly Capital, Pantera Capital, Consumer app & Foresight Ventures, The Spartan Group, 19 platforms MEXC Ventures, Symbolic Capital, Public Works, MH Ventures, and Everyrealm Edtech 5.5 Healthcare & Life 18 Zig Ventures Sciences Peak XV Partners***, Samsung Next, FoodTech 2 Consumer app & Hashkey , Mirana , Signum, Tribe Capital, 18 platforms and Morningstar Ventures East Ventures, MassMutual Ventures Southeast Asia, and Cercano SaaS/AI 17 Management Note(s): * An approximate amount has been assumed for undisclosed deals basis previous deals of investors & the funding stage; © 1Lattice | 19 ** Only deals with disclosed amounts were considered *** Sequoia Capital is now Peak XV Partners Source(s): 1Lattice Deals Database
Top 10 M&As Top 10 M&As in Q1 CY24 Top 10 M&As in Q1 CY24 Amount Acquired Company Sector Date Country Acquirer (US$ M) Energy 903 Jan 31, 2024 Manufacturing 300 Jan 30, 2024 108.9 Feb 19, 2024 BFSI E - commerce & 38.5 Feb 08, 2024 Others listing platforms BFSI 31 Feb 21, 2024 Consumer app 30.3 Mar 21, 2024 & platforms 15.2 Jan 10, 2024 BFSI Hesechan Industries Manufacturing 5.2 Jan 02, 2024 Others 3 Mar 21, 2024 2.9 Jan 23, 2024 BFSI Note(s): Only deals with disclosed amounts were considered Source(s): 1Lattice Deals Database © 1Lattice | 20
Agenda Deal Landscape in Q1 CY24 Key deals and investment themes Key investors
Active investors Most active investors of Q1 CY24 Growth - stage investors Early - stage investors (# deals) (# deals) 4 2 4 2 4 1 3 3 1 3 1 3 1 3 1 3 Note(s): Top investors (by value) are considered Source(s): 1Lattice Deals Database © 1Lattice | 22
Active early - stage investors Most active early - stage investors and their investment segments in Q1 CY24 Includes farming solutions & healthcare E - commerce Consumer & listing Manufacturing app & Investors Energy BFSI SaaS/AI Others platforms platforms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Note(s): Sequoia Capital is now Peak XV Partners © 1Lattice | 23 Source(s): 1Lattice Deals Database
Active growth - stage investors Most active growth - stage investors and their investment segments in Q1 CY24 Consumer app Investors Manufacturing BFSI Retail SaaS/AI Others & platforms - - - - - * - - - - - - - - - - - - - - - - - - - - - - - - - - - - - © 1Lattice | 24 Source(s): 1Lattice Deals Database
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