Startup fever in Southeast Asia and its implication for India to improve indispensable public services(4)

Recent startup boom across Southeast Asia

To name a few, startups aiming for improving the productivity of aquaculture industries or producing eco-friendly shopping bags to offer publicly-customized solutions for Southeast Asia where primary industries still considerably counts are loomed large. 

In addition, indigenous family conglomerates have joined the startup wave by setting up venture capitals and navigating business chances. Why startup markets in Southeast Asia are much spotlighted? 

Startup fever in Southeast Asia and its implication for India to improve indispensable public services(3)

Recent startup boom across Southeast Asia

It is mainly young Southeast Asians equipped with experiences of studying in Western countries who initiated startup craze in the region. As more and more young generations across the region rush to kick off their own companies, business models of startups are getting shaped up in a various way. 

For example, attempts to introduce mobile technology to region-specific circumstances have been drawing enormous attention.

Startup fever in Southeast Asia and its implication for India to improve indispensable public services(2)

Recent startup boom across Southeast Asia

This figure is more than tripled than the total startup investment of $2.5 billion in 2016. This is far startling because investment in Southeast Asian startups failed to reach even $1 billion in 2013. 

Consequently, unicorn startups, privately held startup companies valued at over $1 billion, has been emerging one by one. Lazada, an e-commerce platform in Singapore and Gojek, an Indonesian app-based ride-hailing service provider are well-known cases.

Startup fever in Southeast Asia and its implication for India to improve indispensable public services(1)

Recent startup boom across Southeast Asia

Startup boom deserves to be named as one of the hot issues in Southeast Asia these days. Startup markets across Southeast Asia have been rapidly gaining momentums. As a matter of fact, locally born leaders of the digital economy such as Grab in Malaysia which acquired the Southeast Asian business unit of Uber in early 2018 have been acclaimed for changing the conventional industrial map in the region. 

According to Tech in Asia, a Singapore-based online technology media, startups in Southeast Asia enjoyed as much as $7.9 billion in investment in 2017.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(8)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

This also holds true to Korean startups and venture capitals gearing up to carve out the Southeast Asian market. Local startup founders have made unanimous voices that success stories of mainland Chinese startups have inspired them a lot. 

It is a shame that Korean startups are rarely mentioned for role models of Southeast Asian young entrepreneurs. Beginning with promising industries including fintech, education and mobile games, now is the right time for Korean startups to hit the digital road hard in Southeast Asia.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(7)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

There are yet pending issues to tackle in startup fever in Southeast Asia. Poor IT infrastructures in non-urban areas, shortage of high-skilled work forces and widespread financial illiteracy have chronically taken roots in most parts of Southeast Asia. 

With the exception of Singapore, capital markets and legal and institutional systems for startups in the region aren't well devised and developed as well. However, venture capitals, symbols of adventurous money would remain indifferent unless they feel confident of more gains than losses by stepping into the digital frenzy in Southeast Asia.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(6)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

According to an article from the Wall Street Journal, whopping 120,000 online users are newly reported in the region on a daily basis. There is further prediction that 480 million people almost nearing the entire population of the EU (European Union) will be accessed to internet in Southeast Asia by 2020. 

This could explain why global investment experts have been paying close attention to this area where youngsters covering around half of the overall population are jumping on the brand new era of digital economy.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(5)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

As centered on Indonesia and Vietnam, two countries in the region respectively representing the maritime and the continental Southeast Asia, news of Korean venture capitals eagerly exploring lucrative investment opportunities are heard now and then. Why startup markets in Southeast Asia are much spotlighted? 

High growth potential in the region would be singled out above all things. The number of internet users in key countries of Southeast Asia like Vietnam and the Philippines has been increasing the fastest in the world. 

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(4)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

For example, attempts to introduce mobile technology to region-specific circumstances have been drawing huge attention. To name a few, startups aiming for improving the productivity of aquaculture industries or producing eco-friendly shopping bags to provide customized solutions for Southeast Asia where primary industries still considerably counts are loomed large. 

In addition, indigenous family conglomerates have joined the startup wave by setting up venture capitals and navigating business chances. This is no exception to Korean investment firms.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(3)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

Lazada, an e-commerce platform in Singapore and Gojek, an Indonesian app-based ride-hailing service provider are presentable cases. It is mainly young Southeast Asians equipped with experiences of studying in Western countries who initiated startup craze in the region. 

As more and more young generations across the region rush to kick off their own companies, business models of startups are getting shaped up in a various way.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(2)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

According to Tech in Asia, a Singapore-based online technology media, startups in Southeast Asia received as much as $7.9 billion in investment in 2017. This figure is more than tripled than the total startup investment of $2.5 billion in 2016. 

This is far alarming because investment in Southeast Asian startups failed to reach even $1 billion in 2013. Consequently, unicorn startups, privately held startup companies valued at over $1 billion has been emerging one by one.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(1)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

Startup boom can be named as one of the hot issues in Southeast Asia this year. This may not sound familiar to most Koreans except for those involved in the IT industry or venture capital sectors. However, startup markets across Southeast Asia have been rapidly gaining momentums. 

In fact, locally born leaders of digital economy such as Grab in Malaysia which recently acquired the Southeast Asian business unit of Uber have been acclaimed for changing the conventional industrial map in the region.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(13)

Spread of mobility service and Indonesian cashless society

For instance, it is commonly observed that IT-savvy youngsters enjoy full benefits of a cashless society with Go-Jek or Grab on a daily basis. Of course, cashless society is still at its infant stage. A life without cash may not ring a meaningful bell to those staying in less-developed parts of Indonesia. 

However, hopes are higher than ever that a cashless society primarily enabled by unprecedentedly fast expansion of mobility services will surely advance the national dream of digital Indonesia into reality.