E-commerce and fintech companies in the countries of Southeast Asia raised their capital in hefty amounts since the global investors all bet on the post covid business opportunity Southeast Asia, especially on technology plays.
Investors and bankers said this trend also stokes the concerns about the frothy valuations. The public equity capital raised by the firms in Southeast Asia’s countries has surged up to USD 8.4 billion. Some companies like e-commerce firms in many countries attract the strongest interest in the IPO.
Consumers Start Adopting Digital Platforms
According to asian market research, since the beginning of the pandemic consumers in many countries have started adopting digital platforms to support their activities.
The investors were scouting for companies that are based on the internet and are able to grow the business faster in a special region that is loaded with 650 million people.
Global funds that are cash rich also sharpen the focus on the opportunities. The public market investors have strong interest to get the exposure to the region’s growth profile. Startups that want to list in the early year include the travel firm named Traveloka and online marketplace called Carousell.
The logistics group called Ninja Van as well as a Thai e-commerce developer named aCommerce said that IPO was the possibility but this possibility doesn’t provide any timeline. Pomelo Fashion, another startup company from Thailand was also considering an IPO in the next year.
Real Post Covid Business Opportunity Southeast Asia
The internet economy of Southeast Asia is forecasted to triple to USD 300 billion from the end of 2020 to 2025. The transactions of venture capital’s total value has hit the record USD 10 billion only in the first half of 2021. This surpassed the level of USD 8.2 billion in 2020.
Some countries like Thailand, Vietnam, and Indonesia have domestic populations that are large enough which means the opportunities of digitization can be much bigger than the other countries in Southeast Asia. But there is difficulty that can be found in those large countries.
The difficulty lies in the few business models which can really do the pan regional since that is where you can find the real opportunity. Some concerns emerge over some situations. Those concerns especially emerge over whether the abundant liquidity can inflate the company valuations.
Huge Opportunities in Digital Financial Sector
Some of the largest opportunities that emerge in Southeast Asia countries exist in the digital financial sector which includes the remittance, payments, insurance, lending, and investing subsectors. SMEs and consumers have adopted the services of digital finance like never before.
The behavioral changes drive the penetration and adoption. The leading financial institutions started enhancing the apps and saw the engagement increase. The users of mobile banking app grew about 83% only in Vietnam, during the first 3 months of 2020.
–Learn more about the post covid business opportunity Southeast Asia and figure out which market offers the most promising opportunity for your company. Conduct a deeper research in order to find the most potential opportunity among the emerging opportunities in Southeast Asia’s countries.