Arsianews, Jakarta – A recent study stated that Indonesia would soon surpass Singapore in terms of startup funding. This prediction is based on the size of the market share and increased performance of market leaders.
According to a study entitled ‘8 Predictions for the Southeast Asian Tech Scene – A Checkpoint‘ conducted by Catcha Group, the large size of Indonesia’s market share indicates the opportunity for startups to grow, compared to Singapore startups.
“To date, Indonesia’s unicorns and Singapore’s unicorns have raised a similar amount of funding. With Indonesia expecting to have more unicorns by 2019, they will soon take the lead.” survey said.
Indonesia has internet users that are far greater than Singapore. There are 133 million Indonesian internet users or 26 times that of Singapore internet users, which are only 5 million.
At present, the total market capitalization of Indonesia’s large startups is still slightly below Singapore. Combined market capitalization of major Indonesian startups (GoJek, Tokopedia, Bukalapak, and Traveloka) is US$ 20 billion.
Meanwhile, the combined valuation of major Singaporean startups (Grab, Lazada, Razer and SEA) is US$ 22 billion. However, from the records of Catcha, Singapore has declined in number of Series C funding deals, while Indonesia is slowly increasing.
With 133 million internet users, Indonesia has become the country with the largest number of internet users in Southeast Asia. It is estimated that Indonesia’s internet economy will grow to reach US $ 100 billion by 2025.
In fact, in 2050 Indonesia will become the third largest country with a middle class population among other Southeast Asian countries. Such huge potential makes Indonesia an increasingly attractive investment destination.
Fundraising in Indonesia is more advanced compared to other Southeast Asian countries, and only slightly behind Singapore. Even the number of Indonesian companies that conduct first round fundraising has increased by more than 300% from 2012.
Catcha Group even predicts that in the next 24 months, Indonesia will have the largest share in Nexicorn, or startup with a value of more than US$ 100 million. They also estimate that at least, two new unicorns will come from the fintech and healtech sectors.
Catcha Group, who is behind of the study, is Southeast Asia’s leading internet group. The Group was established in 2004 and is headquartered in Kuala Lumpur, Malaysia. iFlix, iCarAsia, and iProperty Group are some of the Catcha’s portfolios.