South East Asia (SEA) tech startups raised $909 million in the first quarter of 2025, 30 percent higher than the fourth quarter of 2024, Tracxn said Thursday.

The data intelligence platform said in its latest quarterly report that SEA tech ecosystem is seeing some recovery in funding, but continues to face the impact of global macroeconomic headwinds.

On year on year comparison, the region’s funding was a 9.10 percent decline as compared with $1 billion in the first quarter of 2024.

According to the report, the region’s late-stage funding in the first quarter saw a significant surge, reaching $700 million, marking a 110.21 percent increase from the fourth quarter of 2024 ($333 million) and a 140.55 percent rise from the first quarter of 2024 ($291 million).

Meanwhile, its seed stage funding for the quarter dropped to $44.8 million, a 43.07 percent decline from the fourth quarter of 2024 ($78.7 million) and a 76.67 percent decline from the first quarter of 2024 ($192 million).

Its early-stage funding stood at $164 million in the first quarter, down 42.05 percent from the fourth quarter of 2024 ($283 million) and 70.82 percent lower than the first quarter of 2024 ($562 million).

The first quarter of this year witnessed only one $100 million+ funding round, compared to two in the fourth quarter of 2024 and one in the first quarter of 2024.

Digital edge led the funding charts in the first quarter, securing $640 million in a Series D round.

Enterprise infrastructure, fintech, and high tech were the top-funded segments in the first quarter of this year.

Enterprise infrastructure saw the maximum growth during the quarter, attracting $640 million in funding, a 3182.05 percent surged from the fourth quarter of 2024 ($19.5 million) and a 5665.77 percent jump from the first quarter of 2024 ($11.1 million).

Fintech companies raised $171.6 million, down 37.40 percent from the fourth quarter of 2024 ($274.1 million) and 71.69 percent from the first quarter of 2024 ($606.1 million).

Funding into the high tech space dropped to $111.1 million in the first quarter of 2025, a 44.36 percent decrease from $199.6 million in the corresponding quarter last year, and a 77.53 percent plunge from the first quarter of 2024 ($494.2 million).

The first quarter of this year saw 13 acquisitions in SEA tech, marking a slight 8.33 percent increase from 12 acquisitions in the fourth quarter of 2024, but a 50 percent drop from 26 acquisitions in the first quarter of 2024.

Dropsuite was acquired by NinjaOne for $252 million, making it the highest-valued acquisition of the first quarter of 2025.

None of the companies from the tech landscape went public in the first quarter of 2025, as against one in the fourth quarter of 2024 and two in the first quarter of 2024.

Only one unicorn was created in the first quarter of 2025, the same as in the first quarter of 2024.

Singapore-based tech firms dominated the funding landscape, accounting for 95 percent of total investments in SEA Tech.

Singapore-based tech startups raised $865 million in the first quarter of 2025, followed by Thu Duc ($28 million) and Jakarta ($6.2 million).

East Ventures, 500 Global, and Wavemaker Partners were the all-time overall top investors.

In the first quarter of 2025, AppWorks, Selini Capital, and Orbit Startups were the most active seed-stage Investors. JAFCO Asia, Prosus, and Citi Ventures were the top early-stage investors.

This momentum indicates the Southeast Asia tech ecosystem’s adaptability and long-term growth potential.

“As the landscape continues to evolve and drive innovation, the region remains well-positioned to attract sustained investor interest,

“With a rebound in late-stage funding and shifting sectoral dynamics, funding levels are expected to improve in the coming quarters, reinforcing Southeast Asia’s role as a thriving hub for technological advancement,” said Tracxn.

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