SE Asia Deal Review: Startups raise $162m in February, down 42% from previous month

Venture capital funding in Southeast Asia stood at $162 million in February, a 42% decline from January’s $278 million.

There were 53 venture capital deals in the month, a tad higher than January’s 51 deals, according to proprietary data compiled by DealStreetAsia. Seven of the 53 deals that we tracked in February did not disclose the funding amount.

Startups in Singapore continued to be the most active in February, accounting for 30 deals worth at least $83.1 million. In January, startups in the country had raised about $91.1 million from 26 deals.

Indonesian startups were next in line raising $42.3 million from 13 deals, followed by Vietnam and the Philippines with three deals each that raised $25.2 million and $5.1 million, respectively. Malaysia saw two venture deals while Myanmar and Thailand had one deal each, raising a combined $6.5 million.

Deal Volume by Country

The biggest venture deal in February was by Kim Dental, a Vietnamese dental clinics operator, which raised $24 million in its Series B funding round funding led by Asia-focused, Temasek-backed impact investment PE fund ABC World Asia. Existing backer Aura Private Equity, among others, also participated in this round.

Based in Ho Chi Minh City, Kim Dental currently owns and operates a network of 19 dental clinics across four cities in Vietnam. The company said the funds it raised will help it work on the delivery of affordable and reliable oral healthcare services across Vietnam.

Indonesia’s Mekari, which was formed after the merger of four SME-focused SaaS startups, raised the second-biggest funding in February at $12.4 million in a Series C1 round led by EV Growth — the Indonesia-focused growth fund that has recently been placed under the control and management of VC firm East Ventures.

Startups in the healthtech/biotech sector raised the most funding in February at about $38.9 million over five deals, while those in the financial and financial technology sectors gathered $34.8 million over 13 deals.

February Deal Value

Series A tops deal volume in February

In terms of deal volume, Series A deals topped the list in February with 16 deals valued at about $46 million. The amount, however, is lower than the $56.2 million raised in six Series B rounds, thanks to Kim Dental’s $24 million funding.

Seed funding accounted for 15 deals worth $27.4 million. Series C / C1 raised $12.4 million over two deals while Series E funding raised $10.6 million.

February Deal Stages

In Q3 of 2020, Southeast Asia-based startups raised at least $1.8 billion in announced funding, a drop of 34% quarter-on-quarter, and close to 40% year-on-year, according to DealStreetAsia’s report titled SE Asia Deal Review Q3 2020.

In terms of volume, the number of transactions during the said period stood at 151, compared to 184 in the previous quarter.

Meanwhile, Southeast Asia’s VC firms raised $1.96 billion in 2020, a 39% drop from $3.23 billion in 2019, as travel restrictions imposed in the wake of the pandemic and increased limited partner (LP) caution affected fundraising. The number of fund closes dropped to 11 last year, less than half the 28 reported in 2019.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.