SEA EARLY STAGE QUARTERLY INVESTMENT ANALYSIS Q1 CY23 June, 2023 Confidential and proprietary © Lattice Technologies Pvt. Ltd.
Southeast Asia has emerged as an successful exits from early-stage Foreword attractive destination for early-stage startups, such as Grab, Gojek, and investors due to a combination of Tokopedia. These exits have further factors: a population exceeding 650M amplified attention towards Southeast people, a growing middle class, a Asia, and as a result, early-stage favorable regulatory environment, and a investment activity in the region is rapidly advancing digital transformation. anticipated to continue flourishing in In the first quarter of the calendar year the foreseeable future. 2023, startups in Southeast Asia This report aims to uncover some of the secured US$ 1.6B across 157 deals, key trends in early-stage investments spanning from seed to growth stages. within Southeast Asia during the first Over the years, the region has also quarter of the calendar year 2023. At witnessed a remarkable growth in the 1Lattice, we hold an optimistic outlook, number of unicorns, escalating from believing that this report will provide merely 2 in 2017 to an impressive 35 valuable insights. We eagerly anticipate by 2022. the opportunity to engage in an open Projections indicate that by 2025, dialogue with our partners across Southeast Asia will position itself as the diverse industries, as we exchange third largest internet economy notes and delve deeper into these worldwide, boasting a substantial matters while closely monitoring the market size of US$ 300B. Notably, the evolving situation. region has witnessed several Vaibhav Tamrakar Executive Vice President, Financial Investors (South & Southeast Asia)
Executive summary SEA startups raised US$ 1.6B across 157 deals (seed to growth stages) in Q1 CY23, signaling a slowdown in $ value (66%) and # volume (49%) as compared to Q1 CY22 Singapore draws the maximum investment of US$ 0.62B, followed by Indonesia with US$ 0.52B and the Philippines with US$ 0.16B Avg deal size fell by ~30% from US$ 20.5M in Q1 CY22 to US$ 13.9M in Q1 CY23, while the deal volume split remained constant The Fintech sector was the top recipient of seed stage investment in Q1 CY23 receiving US$ 40M Consumer companies led the way in early-stage investment, with US$ 202M in funding Fintech emerged as the leader in growth-stage investment, securing US$ 405M in funding © 1Lattice | 03
Agenda Deal landscape in Q1 CY23 Key deals and investment themes Key investors
SEA startups raised US$ 1.6B across 157 deals (seed to growth stages) in Q1 CY23, signaling a slowdown in $ value (66%) and # volume (49%) as compared to Q1 CY22 Investment amount (US$ B) and # deals (Q1 CY22 –Q1 CY23) 307 23 9 23 9 176 157 5. 4 4. 8 3.1 1.8 1.6 Q1 CY 22 Q2 CY 22 Q3 CY22 Q4 CY22 Q1 CY23 Amount Deals Note(s): Chart includes only Seed, early (and Series A & B) and growth (Series C, D and E) stage investments © 1Lattice | 05 Source(s): 1Lattice analysis
Early and growth-stage investments have experienced a significant decline, with Q1 CY23 amounts totaling US$ 0.6M and US$ 0.15M respectively Investment amount (US$ B) and # deals (Q1 CY22 –Q1 CY23) 307 239 239 1.8 2.6 176 157 1.2 2.6 2.3 1 1.4 0.8 0.6 0.6 0.4 0.4 0.4 0.2 0.1 Q1 CY 22 Q2 CY 22 Q3 CY22 Q4 CY22 Q1 CY23 Seed Early Growth Deals Note(s): Stage of investment here is decided by the round of investment. Series A and B are classified as Early, Series C, D and E are classified as Growth © 1Lattice | 06 Source(s): 1Lattice analysis
Singapore draws the maximum investment of US$ 0.62B, followed by Indonesia with US$ 0.52B and the Philippines with US$ 0.16B Investment amount (US$ B) and # deals (Q1 CY22 –Q1 CY23) 76 35 0.62 0.52 9 9 8 14 0.16 0.13 0.06 0.05 Singapore Indonesia Philippines Vietnam Thailand Malaysia Amount Note(s): Stage of investment here is decided by the round of investment. Series A and B are classified as Early, Series C, D and E are classified as Growth © 1Lattice | 07 Source(s): 1Lattice analysis
Avg deal size fell by ~30% from US$ 20.5M in Q1 CY22 to US$ 13.9M in Q1 CY23, while the deal volume split remained constant Average deal size Split of deal volume (US$ M, Q1 CY22 –Q1 CY23) (#, Q1 CY22 –Q1 CY23) 307 239 239 176 157 29.4 7% 9% 9% 10% 10% 32% 37% 34% 33% 20.5 39% 17.2 15.2 13.9 59% 57% 57% 56% 51% Q1 CY22 Q2 CY22 Q3 CY22 Q4 CY22 Q1 CY23 Q1 CY22 Q2 CY22 Q3 CY22 Q4 CY22 Q1 CY23 Seed Early Growth Note(s): Stage of investment here is decided by the round of investment. Series A and B are classified as Early, Series C, D and E are classified as Growth © 1Lattice | 08 Source(s): 1Lattice analysis
Agenda Deal landscape in Q1 CY23 Key deals and investment themes Key investors
Top seed stage investment sectors and deals in Q1 CY23; Fintech sector received the highest funding of US$ 40M Investment US$ M, by sector Top 10 seed stage investments in Q1 CY23 (US$ M, Q1 CY23) Amount Company Sector Country Key Investors (US$ M) Fintech Philippines Do Ventures, Lenda b le 16 Fintech 40 15.1 Philippines Mo nde Nissin Food Consumer 34 Shanda, Hashke y , Beituo Blockchain 29.4 Fintech / 10.5 Singapore Capital, Hash Glo b al, Xin Blockchain Enterprise, ABCDE Enterprise App. 22.9 Redpoint China Ventures, China So f tware 10 Singapore Growth Capital, Sinovation Healthtech 12.1 services Ventures, MiraclePlus Retail 8.5 Top Harvest Capital, Kejora Healthtech 8.15 Indonesia Capital, Marcy Venture Partners Life Sciences 8.2 LongHash, Animoca Brands, GSR Blockchain 7 Singapore Ventures, Hashkey, ABCDE /Ga m ing Media & Ent. 5.6 Finance & Wavemaker Partners, Octava 5.2 Singapore Accounting Edtech 4.3 QBN Capital FS 4.5 Singapore Gaming 4 Sheares Healthcare, Vulpes, The Healthtech 4 M ala y sia Food & Agritech 3.3 Hive Southeast Asia, Grab, Zalora Hashed, Coin98 Ventures, GuildFi, Blockchain 4 Singapore Instari Ventures, Republic Note(s): Stage of investment here is decided by the round of investment. Series A and B are classified as Early, Series C, D and E are classified as Growth © 1Lattice | 10 Source(s): 1Lattice analysis
Top funded seed stage startups with their competitors & global equivalents Company Description SEA Global Provider of salary advance solution for employees Chain of coffee café Blockchain based trading platform for DeFi assets and exchange Provider of decentralized backend services for game developers DNA data company with comprehensive bioinformatics SaaS based digital mental health solutions for employees, individuals and insurers Deadpooled Acquired © 1Lattice | 11 Source(s): 1Lattice analysis
Top early-stage investment sectors and deals in Q1 CY23; Consumer sector companies received the highest funding of US$ 202M Investment US$ M, by sector Top early-stage investments in Q1 CY23 (US$ M, Q1 CY23) Amount Company Sector Country Key Investors (US$ M) Consumer Veradigm, Heritas Capital 202 Management, Health Catalyst, Healthtech Singapore 45 dRx Capital, Northwell Retail 170 Insurance 42 Thailand HDI Glo b al, IFC Tech Enterprise App. 165 U O B, S m ile Gate Foundation, HealthTech 33.5 Vietna m Cocoon Capital Fintech 108 Retail / 3 0 Singapore NorthstarGroup Consu m er Retail / Autotech 100 3 0 Indonesia East Ventures Eco mm erce Re f ur b ished Catha y Innovation, Antler, Moo re Healthtech 98 electronics 2 9 * Singapore Strategic Ventures, GandelInvest m arketplace Life Sciences 58.2 Blockchain 25* M ala y sia DWF Lans Rec y cling / 2 0 .5 Singapore TRIREC, Equinor, S O SV Climatetech 58 Solid waste m anage m ent Logisticstech EV 18.7 Singapore TVS Mo tors 51.4 Tencent, Pappas Capital, Se m ico n- 18.1 Singapore Expeditions Fund, Sequoia Blockchain 50 ductor Capital, SG Innovate Translink Capital, Tech / Insurtech 49.5 17 Singapore Ro b ot s Superstrea m , FirozeIrani Sequoia Capital, Pa y pal, Alu m ni Fintech 16. 9 Singapore f und, Escape Velocit y Note(s): Early stage investments include Series A and Series B funding rounds *Ongoing round © 1Lattice | 12 Source(s): 1Lattice analysis
Top funded early stage startups with their competitors & global equivalents Company Description SEA Global Provider of an AI based digital health solutions and data analytics for providers Online distribution platform for insurance Provider of marketplace for pharmacies Platform acquiring e-commerce brands Provider of software suite solutions for e-commerce businesses Provider of battery recycling service Deadpooled Acquired © 1Lattice | 13 Source(s): 1Lattice analysis
Top growth-stage investment sectors and deals in Q1 CY23; Fintech received the highest funding of US$ 405M Investment US$ M, by sector Top 10 growth-stage deals in Q1 CY23 (US$ M, Q1 CY23) Amount Company Sector Country Key Investors (US$ M) M izuho Financial Group, Jungle, Square Peg, Naver, GMO , Fintech Indonesia 27 0 O penspace, Naver Financial FS 1 0 5 Indonesia Sherpa Fintech / FS 405 Lightspeed, Sequoia Capital, Fintech 1 00 Singapore Pa y Pal, LGT Capital Partners, Tencent Food & Agri 9 7. 4 Philippines M etro Paci fi c Invest m ents 285 Consumer Vietna m-Om an Invest m ents, FS 5 0 Vietna m M ekong Capital Ener gy 5 0 Singapore BanpuNext Enterprise App. 135 M arTech 38 Vietna m Vina Capital Fintech 3 0 Singapore M arshall Wace Real Estate 11* Singapore GAW Capital Partners Tech Fintech 5.3* In donesia M UFG Note(s): Growth stage investments include Series C, Series D and Series E stage funding rounds; *On-going © 1Lattice | 14 Source(s): 1Lattice analysis
Top funded growth stage startups with their competitors & global equivalents Company Description SEA Global App based platform for purchase financing (Buy now, pay later) Provider of online loan without collateral Manufacturing of Lithium-Ion battery systems & solutions Cross-border remittance solutions for MTOs Online listing platform for residential and commercial properties Deadpooled Acquired © 1Lattice | 15 Source(s): 1Lattice analysis
Agenda Deal landscape in Q1 CY23 Key deals and investment themes Key investors
Most active investors in SEA in Q1 CY23 Seed stage investors Early stage investors Growth stage investors (# deals) (# deals) (# deals) 7 5 1 7 5 1 5 1 5 1 5 2 4 2 1 3 2 1 2 1 2 2 2 1 2 2 1 © 1Lattice | 17 Source(s): 1Lattice analysis
Most active seed-stage investors and their investment segments in Q1 CY23 IT, HR, NFT, Spacetech, Waste Manag. Consumer & Real estate / Enterprise Gaming, Investors Fintech Agritech Others retail Construction App. / SaaS Media & Enter © 1Lattice | 18 Source(s): 1Lattice analysis
Most active early-stage investors and their investment segments in Q1 CY23 Energy, Agritech & Communication Consumer & Healthcare & Enterprise Investors Fintech EV Logistics Others retail Lifesciences App. / SaaS Source(s): 1Lattice analysis © 1Lattice | 19
Most active growth-stage investors and their investment segments in Q1 CY23 Consumer & Enterprise Gaming, Real Estate / Investors FS / Fintech MarTech Others retail App. / SaaS Media & Enter Proptech © 1Lattice | 20 Source(s): 1Lattice analysis
We are here for you Let us know how we can meet your business requirement? Vaibhav Tamrakar Connect now Executive Vice President-Financial Investors Vaishnav Kumar Rai (South & Southeast Asia) Manager – Corporate Communications 1Lattice E: communications@1lattice.com M: +91 782 794 4925 Gurugram Bengaluru New Delhi Mumbai www.1lattice.com Disclaimer: This material has been prepared by 1Lattice, which is the trade name of Lattice Technologies Private Limited (“1Lattice”, “we” or “our”) with the intent to showcase our capability and disseminate learnings to potential partners/clients. This material can be referred to by the readers on the internet but should be referenced to 1Lattice, if reused or adapted in any form, or medium and on any forum. The frameworks, approaches, tools, analysis and opinions are solely 1Lattice’s intellectual property and are a combination of the collection of the best data we could find publicly, and the 1Lattice team’s own experiences and observations. Any information provided herein is only for informational purposes and you are advised to perform an independent analysis of the same before making any decision based on such information. The information does not constitute any business advice or guidance and is to be construed as a general summary based upon the publicly available information and our interpretation of the same using our resources. For this material, we may have relied upon different sources of information which may be primary sources, publicly available information, and relevant information available with us. We make no representation or warranty, expressed or implied, that such information is accurate or complete, and nothing contained here can be construed as definitive predictions or forecasts. Before reading further, the Recipient expressly agrees that this might not address any and all risks and challenges facing the Recipient, its business, and the markets within which it operates, nor all possible market conditions. Any use of the information provided herein by the viewer shall be at the sole risk of the viewer and 1Lattice or its business partners, affiliates, agents, officers or employees shall not be liable for any unintended or adverse effect or outcome from the use of such information by the reader. 1Lattice does not have any duty to update or supplement any information in this document. 1Lattice shall not be responsible for any business or commercial loss sustained by any person who relies on any information provided herein. Any and all logos of companies used in the information provided herein have been published for information purposes only and 1Lattice does not hold any liability in connection therewith.
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