Fintech continues to be one of the leading growth sectors worldwide as people seek convenient digital finance and banking solutions in the palm of their hands. The fintech trends Southeast Asia is experiencing show a sector ripe for investment. The top fintech startups in the region are working on solutions that will ensure the Digital Payments segment’s transaction value reaches USD $195.80 billion this year, and that there are 466.97 million users by 2026.
The Neobanking segment should grow in revenue by 35.6% in 2023, and the average transaction value in the Alternative Lending segment per user will likely be $24.40K USD at the end of this year. Other sectors such as Blockchain also present an opportunity for investors to tap into the fintech market.
How the Singapore fintech startups are booming in 2022
Last year, we looked at some promising fintech startups in Southeast Asia. Now, let’s explore the five hottest fintech startups Southeast Asia has to offer:
Global fintech platform Yufin provides assisted digital financial services to small merchants and women. It provides access to working capital and lines of credit, digitises supply, brings internet banking solutions closer, and simplifies customer transactions. Furthermore, it streamlines accounting and online onboarding to free up merchants’ time to focus on their main line of business.
In June, the company raised USD $1 million in a pre-Seed round from Mastercard Chief Marketing & Communications Officer (CMO) Raja Rajamannar, Kathy Burdon, 77 Capital, Krishan Grover, Arivuvel Ramu, Zennon Kapron, and Boleh Ventures. Yufin will use the money to enhance financial inclusion, boost its platform, and add more merchants.
Indonesia-based fintech firm Mapan has digitised Arisan—a social gathering where members circulate money among themselves. The funds raised during those events can be given to a member as a kind of monthly lottery, saved, used to pay for emergencies, or it can buy expensive goods. Moreover, Mapan offers discounted rates on bills and other necessities so that its 3 million members may meet their daily needs without breaking the bank.
In late June, Mapan raised USD $15 million in a Series A round from Patamar Capital, PT Astra Digital Internasional, SMDV, Bri Ventures, 500 Startups, Blibli, Flourish Ventures, and Prasetia Dwidharma. The company will use the funds to improve its product range, expand its customer base, and provide the unbanked with access to digital financial solutions.
Vietnamese firm Finhay is a smart application for stock and capital investment, interest accumulation, digital banking, online shopping, and other solutions. The app is available on mobile stores and provides cashback, gold transactions, easy stock investment, and tracking portfolio growth. Finhay aims to shift investors’ perspectives on finance and help people manage their personal finances and manage their money to work for a better future.
Finhay raised USD $25 million in June in a Series B round to bring its total funding to $26.1 million USD. Its investors include TBN AURA, Insignia Ventures Partners, Headline, Thien Viet Securities, Openspace, Vietnam Investments Groups, and others. The company will use the funds for product development, acquiring new talent, and expanding its business to cement its market position.
Singaporean startup Helicap connects global investors to private investment opportunities in Southeast Asia. It aims to fill a $500 billion USD financing gap in the market and to use analytics to provide capital for the 300 million underbanked people in the region. Thus far, it has disbursed $130 million USD in private investment volume without any funding originators defaulting.
Helicap raised USD $5 million recently to bring its total funding to $21.5 million USD. Its investors include Tikehau Capital, PhillipCapital, Saison Capital, East Ventures, Lamivoie, Access Ventures, Soilbuild Group Holdings, and others. The company plans to dominate the region, expand its product suite, and democratise access to private investment markets.
Another Singapore-based firm is Smile API, which provides access to employment and income data through a single Application Programming Interface (API). Users can access their personal data and share it with others. The platform enables people to get proof of income for rental confirmation, verify employment status, check someone’s credit history to prevent loan defaults, and optimise the loan origination process.
Smile API raised an undisclosed amount in a Pre-Series A funding round in June from Afore Capital. CreditEase and Plug and Play Tech Center served as the initial investors for the first funding round. The company will use the funds to enhance financial inclusion by giving public and financial institutions access to employment and source of income data.
The emerging fintech trends in Southeast Asia indicate that there has not been a slowdown in investments in the sector despite the global economic slowdown. The top fintech startups continue to innovate and provide convenient digital solutions to their customers while also looking to expand into other markets.