Southeast Asian tech startups raised $909 million in the first quarter of 2025, marking a 30.79% increase from the previous quarter, according to the Tracxn Geo Quarterly Report. Despite this growth, the figure represents a 9.10% decline compared to the same period last year. The report highlights a significant surge in late-stage funding, which reached $700 million, up 110.21% from Q4 2024.
Singapore dominated the funding landscape, accounting for 95% of the total investments in the region. The city-state’s tech firms raised $865 million, with Thu Duc and Jakarta following at $28 million and $6.2 million, respectively. The quarter saw 13 acquisitions, including the $252 million purchase of Dropsuite by NinjaOne, the highest-valued acquisition of the period.
The Enterprise Infrastructure sector led the funding surge, attracting $640 million, a dramatic increase from the $19.5 million recorded in the previous quarter. Digital Edge was a standout performer, securing $640 million in a Series D round. However, seed-stage funding fell sharply to $44.8 million, a 43.07% decrease from Q4 2024.
The report also noted a decline in the number of companies going public, with none in Q1 2025 compared to one in the previous quarter. Despite these challenges, the SEA tech ecosystem shows adaptability and potential for long-term growth, with expectations of improved funding levels in the coming quarters.
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