The Impulso Podcast E96: (Only) after $72B invested, VCs hitting reset in Southeast Asia?!
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Oct 30, 2024 Venture capitalists are resetting their expectations after a staggering $72 billion investment in Southeast Asia. The discussion reveals the challenges of a fragmented market and the evolution of consumer behavior, moving towards sustainable growth. Despite significant funding, major new players are oddly absent, with familiar names like Grab and Gojek struggling post-IPO. The episode critiques the influence of conglomerates and calls for regulatory changes to spur innovation, emphasizing the need for a realistic outlook on the region's potential.
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Stagnant Top Tech Players
- Despite $72 billion invested in Southeast Asia tech since 2019, the top players have stayed the same for 10 years.
- New big tech companies haven't emerged at the scale seen in other markets like China or India.
Why Southeast Asia Differs From China
- Southeast Asia differs fundamentally from China due to fragmented markets and asynchronous infrastructure development.
- China's rapid growth was enabled by simultaneous urbanization, logistics, and payment infrastructure rollout nationwide.
Consumer Behavior and Incentives
- Southeast Asian consumers are heavily driven by discounts and promotions, but this is still the case sustainably.
- Platforms are now shifting towards more sustainable growth, emphasizing organic consumer behavior over incentives.