"I think in the past, we've looked more at inclusion and access, but actually we've made so much inroads over the past years. Now again, we're talking about participation because what we're seeing is that 30% of the highest spending customers who we call high-value users (HVUs) - they make up over 70% of the digital economies' transaction value. So 30% Are leading to 70% of the digital economy. We want to make sure that we don't leave users behind and we continue to drive growth and drive their participation. So we need to make sure that we are not ignoring this very important group that presents a 1.9x growth opportunity of that of high-value users. And for this reason, it's really important for us to talk about digital participation." - Sapna Chadha
Fresh out of the studio, Sapna Chadha, vice president of Google Southeast Asia, and Florian Hoppe, partner at Bain and Company shared the key takeaways from the Google e-Conomy SEA 2023 report. Sapna and Florian discussed how start-ups are navigating the current declines in venture capital funding and introduced how high-value users presented a new way of visualizing what goes behind the digital economy in Southeast Asia. Last but not least, they discuss what great looks like for businesses in Southeast Asia.
Episode Highlights:
[0:00] Quote of the Day #QOTD from Sapna Chadna
[2:00] Welcome Message from the host
[2:48] Introduction of Sapna Chadha, Vice President, Google Southeast Asia
[5:02] Key Takeaways of Google e-Conomy Southeast Asia Report 2023
[8:40] Southeast Asia's economic performance against global macroeconomic headwinds
[10:30] The one most interesting data point that Sapna and Florian found interesting about the report
[12:50] Does the global shift in venture capital align with Southeast Asia? [
14:00] Will high-quality start-ups still be able to raise capital in Southeast Asia?
[15:01] Are funding declines differentiated by funding stages or by countries?
[16:00] Can Southeast Asian VCs return capital to their LPs?
[17:10] Advice to Southeast Asia startups in surviving the current funding winter
[18:20] Do we see more startups focusing on monetization accelerating across the digital economy?
[21:43] What are the potential avenues of growth for fintech companies?
[24:15] Definition and Context behind High-Value Users (HVUs) in Southeast Asia
[26:56] Comparison between HVUs and non-HVUs across different Southeast Asia economies
[29:50] Are smartphones and digital infrastructure in tier 3 and 4 cities bringing non-HVUs online?
[33:23] Can Southeast Asia reach 1 trillion GMV in 2030?
[35:35] What would success look like for businesses in Southeast Asia for the next few years?
[39:37] Closing
Podcast Information: Bernard Leong (@bernardleong, Linkedin) hosts and produces the show. Proper credits for the intro and end music: "Energetic Sports Drive" and the episode is mixed & edited in both video and audio format by G.Thomas Craig (@gthomascraig, LinkedIn).
