SE Asia may see down-rounds in late-stage funding over valuation mismatch

Southeast Asia’s tech sector is expected to see valuation resets over the next 6-12 months, which could eventually lead to down-rounds in later stage funding, after many new-economy companies raised money at eye-popping valuations.

Take Indonesia’s delivery firm J&T. In November last year, it was said to have raised $2.5 billion in a funding round at a valuation of $20 billion, compared with a reported $6-billion valuation seven months earlier. Vietnam-based e-wallet MoMo also confirmed in December 2021 that its Mizuho-led Series E round brought the company’s valuation to over $2 billion while it was understood that the pre-money valuation was below the unicorn level.

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