Southeast Asia’s tech sector saw a stabilisation in funding at $5.2b in 2025, according to the Tracxn Geo Funding Trends Report. This marks a 7% increase from 2024 but remains 31% below 2023 levels. The report highlights a shift towards capital discipline, with late-stage investments dominating as investors prioritise scale and downside protection over early-stage risks.
Funding flows were heavily concentrated in late-stage rounds, which accounted for $3.9b, a significant rise from $1.3b in 2024. In contrast, seed-stage funding plummeted by 57% to $214m, and early-stage funding fell by 64% to $1.1b. This trend underscores a preference for mature companies with robust operating scales.
Enterprise Infrastructure, FinTech, and Enterprise Applications emerged as the top-performing sectors. Enterprise Infrastructure alone attracted $2.3b, a 70% increase from 2024. Meanwhile, FinTech and Enterprise Applications saw declines in funding compared to the previous year.
Singapore maintained its dominance, capturing 91% of the region’s total funding, highlighting its role as a hub for tech investments. The city-state’s governance stability and cross-border operability were key factors in attracting capital.
Despite a slowdown in unicorn creation, with only two new unicorns in 2025, the region saw an increase in IPOs, with 15 companies going public. Acquisition activity moderated, with 57 acquisitions recorded, led by NinjaOne’s $270m acquisition of Dropsuite.
The report indicates a strategic shift in investor behaviour, focusing on long-duration, enterprise-anchored assets, reflecting a post-2023 risk reset. As the SEA tech ecosystem evolves, the emphasis on scale and stability is expected to shape future funding dynamics.
