- Southeast Asia’s SaaS market expects $8.6 billion revenue growth.
- Singapore leads regional SaaS innovation, attracting significant funding.
- Ecommerce-focused SaaS companies dominate, raising $254.6 million since 2016.
Coding up a storm
The software-as-a-service (SaaS) market in Southeast Asia is poised for significant growth, with revenue expected to reach US$8.6 billion in the next five years.
However, the region has yet to produce unicorns on par with India’s Zoho or Freshworks. Despite this, notable exits like TradeGecko’s US$80 million acquisition by Intuit have stirred excitement in the industry.
Singapore leads the charge
Singapore has emerged as the epicenter of SaaS innovation in Southeast Asia, attracting the lion’s share of funding.
In 2021, Singapore-based SaaS startups raised a peak of US$674.5 million in series A rounds and beyond.
The city-state’s focus on advanced technologies and favorable policies has created a fertile ground for SaaS companies to thrive.
Funding for Southeast Asian SaaS startups has seen a rollercoaster ride, with a significant decline from the 2021 peak. Ecommerce-focused SaaS companies have raised US$254.6 million since 2016, reflecting the sector’s dominance in the region.
Marketing services and enterprise resource planning software have also attracted substantial investments.
However, the funding landscape remains concentrated, with a few players securing large portions of the available capital.
To read the original article: https://www.techinasia.com/visual-story/sea-saas-unicorn-dreams-vs-funding-drought-reality?ref=featured-subex-3
