At some point in the past few years, many Southeast Asian startups stopped knowing exactly how many tools they were paying for.

There was the CRM that everyone logged into. The one marketing preferred. The analytics dashboard was the only one that really understood. The AI tool trialled during a product sprint that never quite got cancelled. Each sector comes with a long list of tools, many of them layered on over years of growth. No one would think twice about making these decisions at the time. In fact, most felt sensible, even necessary. 

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However, the new change in 2026 is seen in how founders respond. Instead of continuing to add tools, many are doing something less visible but more consequential. They are cutting them. Across Singapore, Indonesia, Vietnam and the Philippines, founders are taking stock of their tech stacks and quietly cutting them back. 

This is not about rejecting software or slowing down innovation. It is about realising that more tools have not always translated into better execution.

How tech stacks became so complex

The current state of tech stack sprawl is largely a product of the funding boom that defined the early 2020s. The problem did not appear overnight. When a new problem surfaced, whether it was sales tracking, hiring, reporting, or internal communication, the fastest solution was usually a SaaS product. Often, there were several to choose from.

Teams adopted software quickly, sometimes without checking what was already in use elsewhere in the company. Departments worked borderline independently. Sales teams added CRMs. Marketing teams adopted automation tools. Product teams layered analytics platforms on top of existing dashboards. HR brought in performance and engagement tools, some of which overlapped with broader people systems. What rarely happened was a proper clean-up. 

At the time, these moves felt insignificant. Funding rounds were frequent. Software costs looked small relative to headcount or marketing spend. Few people felt the need to rationalise their decisions.

As the funding landscape shifted, this mindset began to change.

Funding pressure makes software visible 

By 2025, venture funding in Southeast Asia had slowed. Founders stopped assuming that the next round would arrive quickly. Instead, runway planning became more conservative, often stretching two years or more. This change brought hidden recurring costs to the forefront, for everyone to notice. Founders started backtracking, hitting the books and realising how many old subscriptions they are still active on. Some are active. Some were lightly used. Some may have had a purpose at some point in time, but no more. Cost optimisation quickly became a priority as founders looked to trim recurring expenses

All-in-all, the problem was never the tools. It was the sheer volume of what had accumulated. 

The hidden costs of tech stack sprawl

Money is only part of the issue. As tech stacks expanded, everyday work became more fragmented. Data lived in different places. Reports disagreed. Teams spent time exporting spreadsheets and cross-checking numbers instead of making decisions. Integration becomes a problem and a rather common one.

Onboarding slowed down, creating friction in startup operations as new hires navigated the tangled web of tools. Oftentimes, the one doing the teaching guessed their way, resulting in a confusing system that could only make sense to them and them alone. In fast-moving startups, where roles change often, this created confusion and friction.

There is also a quieter cost. Switching between platforms all day fragments attention. Tasks that should be simple take longer than they should. 

Why consolidation is becoming more attractive

As pressure builds to operate more carefully, many founders are realising that fewer tools often lead to clearer execution. 

Instead of assembling stacks of specialised products, startups are leaning towards SaaS consolidation, using platforms that do enough across multiple functions. These tools may not be perfect, but they reduce handovers, simplify workflows and make accountability clearer. This gradual focus on SaaS consolidation also supports cost optimisation, reducing waste across teams. 

For early- and mid-stage startups in particular, this is essential. Without dedicated operations or IT teams, managing a complex stack becomes a distraction. Fewer systems are easier to maintain and much easier to explain to new hires. Moreover, when priorities change, they can be adjusted easily.

AI tools in Southeast Asia have reinforced this shift. Rather than adopting standalone AI products, many startups are relying on AI features embedded into tools they already use. That is how AI toolsin Southeast Asia thrive best, especially with how it is already integrated in our everyday lives, such as through search engines. 

A reflection of ecosystem maturity

This move towards leaner tech stacks mirrors a broader change across Southeast Asia’s startup ecosystem. 

The language founders use has shifted. Growth is still important, but so are margins, retention and operational discipline. Investors now ask deeper questions about startup operations, including workflows and technology usage, rather than focusing solely on growth metrics. 

Tech stack decisions are becoming part of that conversation. Not as a headline issue, but as a practical one. A startup that understands why it uses certain tools and is comfortable saying no to others signals focus. It suggests the team knows how work actually gets done inside the company.

Unbundling as da eliberate choice

However, unbundling is easier than it sounds. Some platforms are deeply embedded in daily routines. Removing them requires explanation, compromise and sometimes retraining. 

Maybe, there might even be resistance, as its use in the company initially was drastic and majorly helpful. These choices are not always popular internally. People get attached to tools they helped select or customise.

Still, many founders find that once the dust settles, work feels lighter. Fewer dashboards compete for attention. Ownership becomes clearer. Decisions move faster.

Looking ahead in the region

Simpler tech stacks will matter more in 2026 than many founders expect. If anything, it serves as a competitive advantage. As Southeast Asia’s startup ecosystem continues to mature, operational discipline is becoming harder to ignore. Leaner tech stacks are just part of that discipline.

As Southeast Asia’s startup ecosystem continues to mature, success will not come from adopting every new tool that appears. It will come from knowing which ones to keep, which ones to ignore and which ones to quietly let go.

Sometimes, the most effective operational decision is not what you add but what you remove.