The Direct-to-Consumer (D2C) sector in Southeast Asia (SEA) has experienced a remarkable surge in funding, reaching $32.5m in 2024—a threefold increase from the previous year. This growth comes amidst a global decline in D2C funding, which fell by 25% to $3.9b in 2024. The SEA region’s resilience is highlighted by its ability to attract investment despite a broader 55% drop in the overall tech ecosystem funding.
Singapore emerged as the seventh highest-funded country globally in the D2C sector, raising $19.5m in 2024. The US topped the list with $2.53b, followed by India and Finland. AC Ventures, Jungle Ventures, and Accel were identified as the top investors in the region, with a focus on small-ticket rounds.
The report, released by Tracxn Technologies, reveals that seed-stage funding in SEA skyrocketed by 300% to $3m, whilst late-stage funding reached $19.5m, marking a significant recovery from 2023, which saw no late-stage investments. Beauty and fashion startups have been particularly attractive to investors, with Singapore and Indonesia leading the charge.
The Ayurveda Experience, an online platform for Ayurvedic beauty products, secured the largest single investment in the region with a $15m Series C round. Despite the funding growth, the sector did not see any new unicorns or acquisitions in 2024, and the IPO landscape remained inactive.
Southeast Asia’s D2C sector continues to benefit from rising manufacturing investments and favourable policies, positioning the region as a promising hub for digitally native brands.
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