Non-public funding has inched upward, rising 15% to $ 7.7 billion over the previous 12 months, a cautious restoration that also sits roughly 70% under the 2021 peak. Whereas momentum has returned, the rebound trails the worldwide tempo of PE/VC exercise, which grew by 25% over the identical timeframe.
Curiously, digital monetary companies have now grow to be the clear focus for buyers. They captured the lion’s share of funding, drawing 45% to 50% of complete deal worth prior to now 12 months, a pointy incline from about 30% within the earlier interval.
5. SEA Leads the World in Finance App Adoption
Southeast Asia is outpacing international friends in digital monetary adoption, pushed by a strong fintech ecosystem and rising client confidence in digital monetary service platforms. Singapore mirrors the behaviour of different mature markets, with numerous utilization and powerful traction.
Throughout the remainder of the area, the place banked penetration stays decrease, the panorama tends to be dominated by a small variety of massive gamers.
6. Over $2.3 billion invested in AI-related SEA startups
SEA is rapidly turning into a hotspot for international AI giants, with rising investments in cloud infrastructure and knowledge centres. But the area nonetheless captures solely round 2% of world cumulative capital flowing into AI startups, regardless of accounting for about 4% of world GDP.
Whereas there are 680+ AI startups in SEA, Singapore stays the area’s AI nerve centre, dwelling to nearly all of its startups. Notably, the AI firms attracting probably the most VC curiosity are these constructed with a worldwide outlook from day one. In a latest CNBC interview, Fock Wai Hoong, the Southeast Asia Head of Temasek, shared,
Fock Wai Hoong
“There are near 700 AI startups throughout Southeast Asia, and so they’ve truly garnered a really significant slice of funding capability that has been flowing into the markets.”
AI-driven startups now account for greater than 30% of all funding, with many positioning AI as a core function throughout their services and products.
7. Why SEA’s Distinctive Combine Will Form AI Adoption
SEA is dwelling to one of many world’s most digitally engaged populations, creating a big and receptive consumer base primed for fast AI adoption. Its main superapps, constructed as built-in ecosystems providing a widespread vary of digital companies, ship unmatched distribution channels for scaling AI-driven merchandise.
Sapna Chadha, Vice President of Southeast Asia and South Asia Frontier of Google Asia Pacific, defined in her opening remarks of the report,
Sapna Chadha
“Now, we stand on the daybreak of a brand new period, and that period is outlined by one factor: AI.”
However success on this area calls for true hyper-personalisation. ASEAN’s linguistic and cultural panorama is likely one of the most complicated globally, with greater than 1200 dwelling languages throughout the ten member international locations and round 350 distinct ethnic minorities, triple that of the EU.
This variety requires AI fashions to account for nuance, context and cultural specificity from the outset.
8. Singapore Leads With $1.31B in AI Funding, Digital Finance Positive factors Momentum
Singapore has strengthened its place as Southeast Asia’s AI funding hub, drawing $1.31 billion in personal AI funding between H2 2024 and H1 2025, 55% of all ASEAN-10 AI funding. Income from apps advertising AI options virtually doubled over the identical interval, reflecting sturdy industrial traction.
AI adoption is now deeply embedded in on a regular basis behaviour. 65% of customers work together with AI instruments every day, and 89% are prepared to grant knowledge entry to AI brokers. This excessive degree of belief makes Singapore a beautiful launch marketplace for agentic AI and AI-powered monetary merchandise.
Digital monetary companies are additionally progressing steadily, with clear momentum throughout funds, lending, wealth, and insurance coverage. The graphic under highlights this trajectory.
Inside the sector, Singapore’s digital banks are narrowing losses and carving out sustainable niches in SME banking and micro-consumer credit score via ecosystem partnerships and data-driven mortgage underwriting.
9. Digital Wealth Platforms Acquire Momentum Throughout SEA
Customers are more and more gravitating towards digital wealth platforms for his or her decrease charges, seamless onboarding, and clear, easy-to-understand product choices.
A typical playbook has emerged: buying clients with high-yield money administration merchandise, then steadily upselling them into higher-risk funding portfolios as balances develop.
To deepen engagement and differentiate worth, main platforms are providing fractional shares, curated thematic portfolios, automated macro-driven rebalancing, multi-market entry, and different specialised options.
A number of gamers at the moment are turning worthwhile, and a number of digital wealth startups have surpassed $1 billion in AUM, pushed largely by efficient upselling and steady product innovation.
10. SEA Wants Its Personal Path to Agentic Funds
Whereas international card networks are racing to allow agentic funds, Southeast Asia can’t merely inherit these fashions. The area truly runs on ewallets, interoperable QR codes, and nationwide fee rails, every constructed in another way throughout its markets.
This creates a novel opening for SEA gamers to form agentic funds on their very own phrases.
By leveraging digital ID programs and aligning regulatory frameworks, SEA nations are well-positioned to construct agentic-ready infrastructure that displays how its folks pay.
As a substitute of retrofitting card-based fashions, the area can design agentic layers instantly on prime of prompt funds, real-time authorisation, and pockets ecosystems.
If achieved proper, SEA may outline what agentic funds seem like in an ewallet-first world.
