News

SINGAPORE: Funding into financial technology (fintech) startups in South-east Asia has continued its decline since peaking in the second half of 2021, according to a report by data platform Tracxn. Fintech funding fell 25% to US$899mil in the first half of 2024 from US$1.2bil in the first half of 2023. This makes the first half of 2024 the least-funded half-yearly period in the past three years. The bulk of funding, or US$556mil, was raised in the first quarter of the year, which comprises about 61.8 % of the funding for the first half of 2024. Rising interest rates, ongoing conflicts, rising concerns over fintech start-up valuations and a decline in demand have made fund raising challenging. The decline in fintech funding was led by both the seed-stage and late-stage segments of the ecosystem. Seed-stage funding includes seed and angel rounds, while late-stage funding includes Series C rounds onwards, private equity and pre-initial public offering (IPO) rounds. Seed-stage funding fell 53 % to US$42.5mil in the first half of 2024 from US$90mil in the first half of 2023. Late-stage funding fell 47 % to US$338mil in the first half of 2024 from US$632mil in the same period in 2023. The drop is even more pronounced compared with the previous half-year – down 61% from the US$858mil raised in the second half of 2023. Early-stage funding bucked the trend and rose 17% to US$519mil in the first half of 2024 from US$443mil in the same period in 2023. Early-stage funding includes Series A and B rounds. Geographically, Singapore garnered the most funding, amounting to US$518mil – more than half the total funding raised in the first half of 2024. Fintech companies based in Bangkok raised US$140mil, while those based in Indonesia raised US$128mil. East Ventures, Y Combinator, and 500 Global were the all-time top investors in the space. Antler, Hashed, and AppWorks were the top investors in seed-stage rounds in the first half, while MassMutual Ventures, Illuminate Financial, and Nyca Partners were the top early-stage investors. MUFG Innovation Partners and NewView Capital were the top investors in late-stage rounds during the period. Investment tech, alternative lending, and banking tech were the top-performing segments based on funding in the fintech sector for the first half of the year. Investment tech was the brightest spot in fintech funding, seeing a 666% increase to US$216mil in the first half of 2024 from US$28.2mil in the corresponding period in 2023. Payments funding fell the most, dropping 51% to US$40.1mil in the first half of 2024 from US$82.6mil in the first half of 2023. There were no recorded exits in terms of an IPO, while 16 acquisitions were made in the first six months of 2024. This was an increase from the 11 in the first half of 2023 and 13 in the second half of 2023. Among the deals in 2024 was the acquisition of Singlife by Sumitomo Life Insurance Company for US$1.2bil. The number of first-time institutional investors in South-east Asia fintech fell to 37 in the first half of 2024 from 64 in the corresponding period in 2023. But the number has increased from 34 in the second half of 2023. Tracxn said there still exists significant optimism for South-East Asia’s long-term growth. A young population, a large consumer base and government initiatives are expected to accelerate growth in the region. — The Straits Times/ANN

GEORGE TOWN: The Penang state government and Maxis are collaborating to support digital skills development and digital learning and to drive digital adoption among micro, small and medium enterprises (MSMEs) in the state. In a statement, the telecommunications provider said under the collaboration, Maxis would provide digital marketing skills training for entrepreneurs and youths in Penang, while also expanding its digital learning resources among students and teachers in schools. It said these initiatives would be delivered through Maxis’ flagship community programmes, eKelas Usahawan and eKelas. Maxis eKelas Usahawan, which has trained close to 7,000 entrepreneurs since 2021, provides free digital marketing workshops to train entrepreneurs and youths on digital marketing strategies, campaign planning, photography, graphic design, generative Al prompts and copywriting. To date, Maxis eKelas Usahawan has reached over 440 entrepreneurs in Penang. Meanwhile, Maxis eKelas, a free after-school digital learning programme for students from Year 4 to Form 5, makes engaging educational content aligned to the Malaysian syllabus accessible to students nationwide, including those from rural communities with Science, Technology, Engineering, and Mathematics (STEM) education as its focus areas. Maxis eKelas has reached over 120,000 registered users to date, of whom 3,700 are from Penang. Maxis Chief Executive Officer Goh Seow Eng expressed his hopes for the partnership to develop future-ready entrepreneurs and youths who would be able to thrive in the digital economy. Meanwhile, Deputy Chief Minister Il Jagdeep Singh Deo, who is also State Executive Council for Human Capital Development, Science and Technology, said digital skills and learning are important in advancing Penang’s inclusive growth agenda. “We want to tap into opportunities in the digital economy and develop a digitally engaged society. In line with this, we look forward to working closely with Maxis on their flagship community programmes on digital marketing and after-school learning,” he said. — BERNAMA

KUALA LUMPUR: The Securities Commission (SC) has cautioned the public on investment scams enticing investors with pre-initial public offering (IPO) shares of companies seeking listing on Bursa Malaysia. The SC said these scams, mostly involving private placement offerings, are usually timed with upcoming IPO listings published on Bursa Malaysia’s website. “Perpetrators of these scams, posing as ‘agents’, usually create a public group on WhatsApp to promote these pre-IPO investments. Following this, potential victims will be added to said group unsolicited. “These schemes may be accompanied by fake testimonials from other investors to appear credible. Payments for the ‘subscription’ will be required to be made to bank accounts of entities not related to the IPO and suspected mule bank accounts,” it said in a statement. The agency also noted that on the listing day, “agents” (will) claim that the shares have been listed and have made profits, prompting additional payments for the shares to be allotted. “This is fraudulent and is to convince the victims to give more money,” the agency added. To date, the SC has received various complaints and inquiries from investors reporting substantial losses, exceeding RM800,000. The SC views this matter seriously and will continue to monitor and take appropriate action against such investment scam activities. The public is advised to be vigilant in evaluating investment offers, ensuring that they do not transfer or deposit money into suspicious accounts, and to verify investment offers through the SC Investment Checker at www.sc.com.my/investment-checker. — Bernama