Southeast Asia’s digital economy is set to surpass $300b in Gross Merchandise Value (GMV) by 2025, according to the latest e-Conomy SEA report by Google, Temasek, and Bain & Company. The report, released today, highlights a decade of remarkable growth, with GMV increasing 7.4 times and revenues projected to reach $135b as profitability accelerates across the region.
The report underscores the resilience of Southeast Asia’s digital economy, which has thrived despite global challenges such as COVID-19 and inflation. Key sectors like e-commerce, food delivery, transport, online travel, and digital financial services (DFS) have driven this growth. Notably, video commerce has expanded fivefold in three years, now comprising 25% of e-commerce GMV.
Private funding in the region has seen a cautious uptick, with a 15% year-on-year increase to $8b, focusing on late-stage deals and DFS. This growth is supported by realistic valuations, proven monetisation models, and a healthy IPO pipeline.
Southeast Asia is also positioning itself as a leader in the global AI transformation. The region’s workforce is embracing AI, with 79% of workers learning to use it. Over $2.3 billion has been invested in AI start-ups, accounting for 30% of private funding in the first half of 2025.
Sapna Chadha, Vice President, commented, “Surpassing the $300b GMV milestone by 2025—1.5x our ambitious forecast from a decade ago—firmly validates that Southeast Asia’s potential is even greater than we imagined.” The report suggests that the region’s future will be defined by rapid adaptation and innovation, with AI playing a central role in its continued economic transformation.
