A digital revolution is sweeping across Southeast Asia, fuelled by more than just rising internet penetration and mobile adoption. This vibrant, innovation-driven region is witnessing a new wave of game-changing startup trends poised to redefine its economic and technological landscape. From AI-powered disruptors to sustainability-focused unicorns, a profound shift is underway, capturing the attention of investors, businesses, and policymakers alike.

While Southeast Asia has long been recognised as a hotspot for rapid digital adoption, the next phase of transformation is far more ambitious. The deep integration of artificial intelligence, blockchain, fintech, and green technology is reshaping entire industries, unlocking unprecedented opportunities and addressing pressing socio-economic challenges.

Southeast Asia healthtech funding is facing its worst year in 7 years according to the SEA HealthTech and Life Sciences Annual Funding Report 2024

This article explores the key emerging trends, insightful data, and expert predictions that are set to revolutionise Southeast Asia’s startup ecosystem.

The rise of AI-driven startups

Artificial intelligence isn’t just for Silicon Valley — it’s becoming a game-changer for Southeast Asia. In 2023 alone, investment in AI startups across the region soared by more than 40%, despite global economic uncertainty.

Take ADVANCE.AI, a Singapore-based startup that’s revolutionising fraud detection and credit scoring. Their AI-powered identity verification is helping banks, fintech firms, and e-commerce platforms fight fraud and bring financial services to people who have never had access before. Meanwhile, in Vietnam, VinBrain is tackling one of the most critical areas — healthcare. Their flagship product, DrAid™, uses AI to analyse X-rays, CT scans, and MRIs, helping doctors diagnose diseases faster and with greater accuracy. For countries where doctors are in short supply, this is a game-changer. VinBrain’s technology is already being used in hospitals across Vietnam, and it’s only just getting started.

AI is no longer some distant, futuristic concept. It has already woven into daily life, and its influence is only growing.

Digital faith engagement

Furthermore, the adoption of AI extends beyond conventional industries into FaithTech, a sector that combines artificial intelligence with religious and cultural applications. FaithTech — a convergence of technology and religious engagement—is emerging as a notable trend in Southeast Asia, home to over 650 million people of diverse faiths. Religious organizations and startups alike are leveraging technology to create digital platforms that cater to the spiritual needs of communities.

Apps like Muslim Pro, which offers AI-driven personalized prayer recommendations, illustrate how technology is being used to enhance daily spiritual experiences, and MyCatholicSG (the official mobile app for Catholics in Singapore, developed by the Roman Catholic Archdiocese of Singapore) are at the forefront of this transformation. As AI continues to evolve, its integration into Southeast Asia’s digital economy is becoming more nuanced and impactful, laying the foundation for a future shaped by intelligent automation and machine learning. These platforms are not just offering convenience; they are fundamentally reshaping how faith communities connect and practice their beliefs in the digital age.

Additionally, blockchain-powered solutions are beginning to play a role in religious giving. ZakatChain, for instance, utilizes blockchain technology to ensure transparent and efficient Islamic charitable giving. By improving trust and accountability in religious donations, such innovations encourage greater participation in digital philanthropy.

As digital faith engagement grows, the intersection of tradition and technology in Southeast Asia is becoming an area of significant interest for investors, developers and community leaders alike.

The Green tech revolution

As the effects of climate change become more pronounced, Southeast Asia’s startup ecosystem is witnessing a surge in green technology solutions. The share of climate tech deals in the region has risen from 3.2% in 2019 to 9.5% in 2023, reflecting an increasing investor focus on sustainable innovation.

One standout example is SunGreenH2, a Singapore-based startup that recently secured $50 million in Series B funding for AI-powered solar energy optimization projects. This company is leveraging artificial intelligence to enhance solar panel efficiency, making renewable energy more accessible and cost-effective across the region.

Beyond solar energy, startups are also tackling waste management and carbon capture. Jejakin is an Indonesian climate tech company founded in 2018 that provides a comprehensive carbon management platform to help businesses and individuals take climate action. Similarly, WasteX is a climate tech startup with operations in Indonesia and the Philippines. The company focuses on converting agricultural waste into biochar, offering innovative solutions for waste management and soil enhancement in Southeast Asia.

With governments across Southeast Asia implementing stricter environmental policies and offering incentives for green technology adoption, the region is poised to become a leader in climate tech innovation.

Fintech innovations: Microfinancing and blockchain

Fintech remains a dominant force in Southeast Asia’s digital economy, but its focus is shifting toward microfinancing and blockchain-powered financial solutions. With approximately 70% of Southeast Asia’s population either unbanked or underbanked, startups are stepping in to bridge financial gaps through decentralized finance (DeFi) and digital banking services.

Platforms like StraitsX and Bluejay Finance are leading the charge in offering blockchain-based financial services tailored for small businesses and individuals with limited banking access. These innovations are making digital payments, loans, and investment opportunities more inclusive, particularly for those in rural areas.

Additionally, central bank digital currencies (CBDCs) are gaining traction, with countries like Singapore and Thailand experimenting with digital currencies for cross-border transactions. As digital financial infrastructure continues to evolve, the potential for a more interconnected and financially inclusive Southeast Asia is within reach.

HealthTech & telemedicine on the rise

Southeast Asia’s healthtech sector is experiencing rapid growth, with projections indicating it will reach $150 billion by 2030. The COVID-19 pandemic accelerated the adoption of telemedicine, AI-driven diagnostics, and mental health applications, leading to a surge in health-focused startups.

Companies like Halodoc (Indonesia) and DoctorAnywhere (Singapore) are making healthcare more accessible through telemedicine platforms that connect patients with doctors in real time. Meanwhile, AI-powered diagnostic tools are improving early disease detection, reducing the burden on healthcare systems.

Mental health is another area gaining traction. MindFi, a mindfulness app based in Singapore, is leveraging AI to provide personalized mental wellness programs, addressing a critical yet often overlooked aspect of healthcare.

As healthtech continues to advance, its impact on public health, affordability and accessibility will be transformative, particularly in remote and underserved areas.

Southeast Asia’s startup ecosystem at a turning point

Southeast Asia stands on the brink of a digital revolution, with AI, green tech, blockchain and telemedicine reshaping its startup ecosystem. However, this transformation is more than just about enhancing technological connectivity. If anything, it represents a fundamental shift in how industries operate and interact within the digital space.

Startups that harness these innovations to address localized challenges — whether in financial inclusion, sustainability, or healthcare — are the ones best positioned to drive the region’s economic transformation. The key question remains: which of these startups will emerge as the leader in this new digital era? 

Opportunities and overcoming challenges

Despite the exciting digital surge, significant challenges remain. Digital literacy, uneven internet access and regulatory complexities continue to hinder the widespread adoption of these transformative technologies. Rural areas, in particular, face a stark digital divide that limits participation in the emerging digital economy.

To address these barriers, governments, technology firms, and community leaders must collaborate to build a more inclusive digital ecosystem. Initiatives such as public-private partnerships for infrastructure development, digital education programs, and regulatory sandboxes for fintech and AI startups are crucial to ensuring sustainable and equitable growth. By fostering an environment that encourages responsible innovation and investment, Southeast Asia can position itself as a global leader in the next wave of the digital economy.

The article titled “The next wave: Emerging startup trends reshaping southeast asia’s digital economy” was authored by Nafees Khundker, CEO & Group Managing Director of Bitsmedia Pte Ltd

About the author

Nafees Khundker currently serves as the Group Managing Director and CEO at Bitsmedia, the innovative developer and publisher of the Muslim Pro app and Qalbox – a leading Muslim lifestyle app with more than 150 million downloads worldwide.

Since joining the Bitsmedia Board of Directors in June 2023, Nafees has been entrusted with the strategic leadership of Bitsmedia, focusing on expanding the company’s market presence and diversifying its industry leadership.

Nafees brings over two decades of extensive experience in Corporate and Investment Banking and spent most of his career at leading institutions such as Deutsche Bank and Standard Chartered covering the Asia Pacific and the Middle East regions.

Apart from his responsibilities as Managing Director at Bitsmedia, Nafees also plays a significant role as a Venture Capital Partner, where he strategically invests in and offers invaluable board representation for a diverse portfolio of companies spanning from retail, distribution, finance, media, and Information Technology. His visionary approach has orchestrated successful turnarounds within those industries.

Beyond the boardroom, Nafees is deeply committed to sustainability initiatives and volunteers his time with small non-profit organizations, driven by his personal dedication to create a positive global impact. Outside of his professional pursuits, he is a sports enthusiast with particular interests in tennis, golf, and cricket, embodying the same level of determination and strategic thinking that define his approach to business.