Top Funded GenAI Startups in Southeast Asia: ASEAN’s AI Revolution

The Generative AI (GenAI) startup landscape in Southeast Asia, particularly in ASEAN countries, is experiencing a remarkable surge despite the global “startup winter.” This blog post explores the top funded GenAI startups in ASEAN, providing insights into the funding ecosystem and key strategies for startups seeking investment in this dynamic region.

The GenAI Funding Ecosystem in Southeast Asia

The GenAI funding ecosystem in Southeast Asia is still in its early stages but shows promising growth. Our recent survey of GenAI startups in ASEAN reveals:

• Two-thirds of young GenAI startups have secured early-stage funding
• 17% have received angel funding (typically $1k to $25k per angel)
• 18% have secured pre-seed funding (typically $100k to $300k)
• 23% have obtained seed funding (typically $250k to $1 million)
• 32% of GenAI startups are bootstrapped

While overall startup funding in ASEAN hit a five-year low in Q1 2024, with $1.4 billion raised across 177 funding rounds, several GenAI startups have managed to secure significant funding and gain traction.

Top 10 Funded GenAI Startups in Southeast Asia

Here’s a comprehensive look at the top funded GenAI startups in ASEAN, showcasing the diverse range of AI applications across various industries (please find the infographic below):

1. Social+ (Prev. Amity) (Thailand)
   • Total Funding: $90M
   • Funding Stage: Series C
   • Category: Productivity & Business Solutions
   • One-liner: Develops Generative AI applications to enhance customer engagement through chatbots and voicebots.
2. Wiz (Singapore)
   • Total Funding: $58M
   • Funding Stage: Series B
   • Category: Productivity & Business Solutions
   • One-liner: Provides enterprise-grade conversational AI solutions to enhance customer experience and increase operational efficiency.
3. Sprout Solutions (Philippines)
   • Total Funding: $18.3M
   • Funding Stage: Series B
   • Category: Human Resources
   • One-liner: Offers an HR and payroll platform to streamline human resource management for businesses in Southeast Asia.
4. Alethea AI (Singapore)
   • Total Funding: $16M
   • Funding Stage: Seed
   • Category: Media & Entertainment
   • One-liner: Creates synthetic media and digital assets, enabling users to generate and monetize interactive content.
5. Bluesheets (Singapore)
   • Total Funding: $12M
   • Funding Stage: Series A
   • Category: Financial Services
   • One-liner: Automates financial data extraction and reporting to streamline accounting processes.
6. Ai Palette (Singapore)
   • Total Funding: $11.2M
   • Funding Stage: Series A1
   • Category: Productivity & Business Solutions
   • One-liner: Uses AI to predict consumer trends and optimize product development in the food and beverage industry.
7. AI Hay (Vietnam)
   • Total Funding: Undisclosed
   • Funding Stage: Pre-series A
   • Category: Media & Entertainment
   • One-liner: Combines hyperlocal, culturally-nuanced knowledge discovery engines with social loops.
8. Locofy.ai (Singapore)
   • Total Funding: $7.3M
   • Funding Stage: Seed
   • Category: Software Development & IT Services
   • One-liner: Enables developers to convert design files into code, accelerating the app development process.
9. Mindverse (Singapore)
   • Total Funding: $5M
   • Funding Stage: Seed
   • Category: Productivity & Business Solutions
   • One-liner: Creates AI-native websites with personalized chat experiences and interfaces.
10. Reforged Labs (Vietnam)
    • Total Funding: $3.9M
    • Funding Stage: Seed
    • Category: Marketing & Content Creation
    • One-liner: Automate video ad generation, analytics, and campaign management for mobile game developers.

These startups exemplify the innovative spirit and potential of GenAI in Southeast Asia, attracting significant investments despite the challenging funding environment.

Key Insights for GenAI Startups on Fundraising in Southeast Asia

For GenAI startups in ASEAN looking to secure funding, here are three crucial insights based on our research and conversations with regional VCs:

1. Build a Strong Moat: VCs are particularly concerned about the risk of application layer startups being eclipsed by LLMs or Big Tech. To address this, startups need to demonstrate a clear defensibility strategy. This could involve:
   • Focusing on niche markets (79% of surveyed startups use this strategy)
   • Implementing rapid innovation cycles (68%)
   • Leveraging exclusive data sources (43%)
   • Developing proprietary algorithms (37%)
   • Building a strong brand presence (23%)

   As DS/X Ventures’ Rama Mamuaya puts it, “To get VC investment, AI companies need to show Product and GTM Superiority, meaning your customers love your product because it solves their problem in a way no other companies can.”

2. Demonstrate Traction and Sustainable Growth: Investors are looking for clear signs of adoption, user engagement, and a path to profitability, even at early stages. Our survey shows that 39% of GenAI startups already have recurring revenue, while 23% have paid pilots and POCs. Moreover, 16% of surveyed GenAI startups are already profitable, which is impressive for such a young sector. For B2B GenAI startups, showing paid users or successful POCs can be crucial. As Lightspeed Ventures emphasizes, what truly matters is “a feasible path to get to $100M of net profit.”
3. Address Specific Industry Challenges: Rather than building horizontal solutions that might compete directly with Big Tech, focus on delivering highly specialized and nuanced solutions tailored to specific verticals and industry functions. VCs like DO Ventures emphasize the importance of “addressing specific industry challenges and deeply understanding customer needs within a vertical/use case.” This approach not only helps in building a stronger moat but also aligns with the trend of expanding the Total Addressable Market (TAM) in the Global South, including ASEAN. Consider how your startup can reach larger audiences, particularly benefiting the underserved aspiring middle-class and small businesses.

The Future of GenAI Startup Funding in Southeast Asia

The GenAI startup landscape in ASEAN presents unique opportunities and challenges. While funding may be more conservative compared to other regions, there’s a growing recognition of the potential of GenAI technologies in solving local and regional problems. By focusing on these key insights, GenAI startups can position themselves more effectively for fundraising success in the Southeast Asian market.

Seize the Opportunity: Dive Deeper into ASEAN’s GenAI Landscape

The insights shared here are just the tip of the iceberg when it comes to understanding the vibrant and rapidly evolving GenAI startup ecosystem in Southeast Asia. Whether you’re a founder looking to raise funds, an investor seeking the next big opportunity, or a corporate leader aiming to stay ahead of the AI curve, there’s so much more to explore.

To get the full picture of the funding strategies, market trends, and growth opportunities in the ASEAN GenAI startup ecosystem, we invite you to download our comprehensive report: https://genaifund.ai/asean-genai-startup-report-launch-roadshow-2024/ 

This in-depth analysis will equip you with:

• Detailed profiles of successful GenAI startups in Southeast Asia
• Expert insights from leading VCs and corporate investors in the region
• Strategies for building defensible GenAI businesses
• Predictions for the future of GenAI in ASEAN
• And much more!

Don’t miss out on the chance to be at the forefront of the GenAI revolution in Southeast Asia. Download the full report now and position yourself for success in this exciting and transformative field: https://genaifund.ai/asean-genai-startup-report-launch-roadshow-2024/