In recent years, SaaS startups in Southeast Asia have emerged as pivotal players, catalysing a remarkable shift in the region’s business landscape. These innovative enterprises are riding a wave of growth fueled by critical trends reshaping the SaaS industry in Southeast Asia.
Businesses across the region are increasingly adopting cloud-based solutions for enhanced scalability, flexibility, and cost-efficiency. The rising demand for remote work solutions, accelerated by recent global events, has further boosted the SaaS market. According to Statista, revenue from SaaS companies is likely to reach USD 2.46billion in 2023.
Here’s why Singapore startups need to lead the way to restart the region’s startup growth
Anchanto, a Singapore-based startup specialising in eCommerce, operates as both an eCommerce distributor and a B2B logistics firm. It develops cutting-edge technology that streamlines backend operations, leading to unparalleled productivity gains through automated sales management. The company offers a range of in-house solutions, including its flagship product, SelluSeller, and Wareo, a warehouse and eCommerce management system designed to facilitate both B2B and B2C operations.
The company achieved a significant milestone in August 2020 when it announced the total capital raised for its ongoing series C funding round was an impressive USD 12 million. Among the investors in this round are MDI Ventures and Asendia. The newly injected capital will help fund a strengthened research and development portfolio and recruit additional team members to expedite the launch of its new offerings.
Dropee, a B2B wholesale startup based in Malaysia, operates as a marketplace that bridges local independent retailers and Southeast Asian brands through a user-friendly ordering app. The platform offers a distinctive value proposition, simplifying procurement and supply chain management for businesses of all sizes. Facilitating bulk buying and providing enterprise solutions to enhance operational efficiency, Dropee enables seamless connections for buying and selling.
In January 2022, Dropee announced the successful completion of its Series A funding, totalling USD 7 million. Vynn Capital, HCL Capital, Resolution Ventures, and LKF Capital, the corporate venture capital arm of Lan Kwai Fong Group, led the round. These fresh funds are earmarked to expand financial offerings tailored to wholesalers and retailers, with plans to roll out these enhancements over the coming year.
PayrollPanda is the leading HR solution in Malaysia. It is a cloud-based platform targeted at SMEs, allowing them to save resources needed for their HR management. According to the startup, over 1,000 SMEs from all industries use its solutions, including hospitality, government, startups, factories, and more. PayrollPanda is part of LaunchPad, a tech venture builder that identifies and maximises tech-related opportunities across Southeast Asia.
In June 2018, it secured USD 700k in fresh seed funding from an undisclosed group of investors, including two family offices in the UK and Saudi Arabia. The Kuala Lumpur-headquartered company will use the capital to launch in other markets regionally, with its main focus remaining in Malaysia.
PEAK is a leading online accounting solution in Thailand, catering to SMEs and accounting professionals. Remarkably, it efficiently manages approximately 100,000 transactions monthly, delivering a comprehensive suite of accounting services to businesses. Beyond offering online accounting software, PEAK is actively constructing the foundational infrastructure for a future data-driven economy.
Recently, the company has accomplished a significant milestone, successfully raising a total of USD 500 thousand through a Series A funding round in November 2021. This financing round featured participation from Krungsri Finnovate and Pawoot Pom Pongvitayapanu, cementing PEAK’s position as an innovative force in online accounting solutions.
Founded in 2015, HealthMetrics, a Malaysian-based corporate healthcare benefits and wellness management platform, operates as a cloud-based enterprise HR solution. This platform efficiently oversees an organisation’s comprehensive health benefits through a network of over 3,000 healthcare partners across Malaysia. HealthMetrics caters to a diverse clientele, including publicly listed corporations and small to medium-sized enterprises. Its client roster boasts prominent names such as PwC, Family Mart, Star Media Group, and Pullman Hotels.
In October 2020, the startup announced a successful closure of its Series A funding, securing a total of USD $5 million. Leading the funding round was ACA Investments, an investment firm headquartered in Singapore with a strong presence in Japan. This influx of capital helps put HealthMetrics in a healthy position to expand its regional presence across Southeast Asia while diversifying its offerings into areas such as telemedicine, digital wellness and preventive programs.
To a bright future in 2024 and beyond
The burgeoning landscape of SaaS startups in Southeast Asia paints a picture of innovation, growth, and immense potential. As digital transformation continues to reshape industries across the region, these companies stand at the forefront, providing versatile and scalable solutions that empower businesses to thrive in an increasingly interconnected world.
As such, SaaS companies remain catalysts of technological evolution and enablers of economic progress, setting the stage for a promising future in the realm of software-as-a-service.