Profitability on the horizon

After investing in growth for years, key players in the SEA digital economy have made progress towards profitability

GMV and revenue

GMV and revenue growth have been resilient in the face of inflation and competition

Both GMV and revenue have consistently grown by double digits

Profit growth

The tandem growth of GMV and profitability demonstrates that both can happen in parallel

Profit has also been growing in the double digits

Sectors progress

Core sectors make strides toward profitability

Efforts to increase monetisation and reduce costs have improved margins over time for most sectors

Digital finance stays on the ascent

The momentum carries on in digital financial services (DFS), as QR codes become widespread and digital lending gathers steam

DFS revenue

Strong digital appetite continues to fuel healthy growth across DFS sectors

DFS grows by 22%, as lending remains the biggest revenue driver

Payments

Digital payments ride the wave of QR code adoption

The adoption of QR codes across the region boosts e-wallet and account-to-account transactions

Clearing the path to investment exits

Investments in mature digital sectors have tapered off; reliable exits are needed to revitalise the funding landscape

Funding

Private funding in Southeast Asia remains subdued

Funding has normalised as SEA's pioneer cohort of unicorns reach maturity

Enablers

Most enablers for revitalising the funding landscape are in place, with one remaining gap

Dependable exit pathways are the missing piece for investors to return, but progress is under way

Surveying the terrain ahead

Ecosystem players must come together to build digital trust, and harness consumer and business receptiveness to AI to drive value

Consumer

SEA consumers are curious about AI, especially users in metro cities

SEA consumers exhibit strong interest in AI compared to global counterparts

Trust

As consumers engage more online, building digital trust has never been more important

Although savvy SEA users are being scammed less often, scammers are extracting more value each time9

AI

SEA businesses are early adopters of GenAI; most see returns on their investment within 12 months

For end-layer GenAI applications, businesses in the region are seeing accelerated time to value11

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