Growing against macroeconomic headwinds

The region has withstood the recent macroeconomic storm and demonstrates significant headroom for future growth

Consumer confidence

Consumers take heart as inflation and interest rates stabilise

Consumer confidence has rebounded

Growth headroom

SEA has significant headroom for future growth

Factors supporting SEA's long-term potential

Investors reset expectations on deals and exits

Private funding is at a 6-year low, driven by high cost of capital and issues across the funding lifecycle

Funding at a low

DFS remains the top investment sector due to high monetisation potential

DFS is the leading sector in deal value

Revalued expectations

Digital businesses in SEA need to demonstrate their value to investors

Investment criteria for SEA businesses

Rise of monetisationtowards financial sustainability

In recent years, digital businesses in the region have shifted their focus towards monetisation

Increased monetisation

Digital sectors are growing revenue by increasing take rates and expanding to adjacent revenue streams

Food delivery leads revenue growth

Revenue growth

Digital businesses have made significant strides towards financial sustainability

Revenue growth is outpacing GMV growth by 70%2

Digital financial services

Digital financial services (DFS) brings in an additional $30B of revenue for the digital economy

Healthy growth spurred by rapid DFS adoption in SEA

Engaging high-value users

In order to achieve profitability, high value users (HVU) have been prioritised; but long-term growth will come from a broader consumer base

Future digital spenders

HVUs demonstrate higher online purchase frequency and spends, and are also likely to grow their online spending faster

HVUs - the top 30% of online spenders account for 70% of SEA digital economy spend today

The potential of non-high-value users

The potential growth in online spend for non-HVUs is 1.9X that of HVUs, should their key barriers to online spending be addressed

Reasons that will draw non-HVUs to start spending online4

Bridgingthe digital economic divide

SEA consumers continue to enjoy the benefits of digitalisation - more so in metro cities than beyond

Digital economy growth

The digital economy is a major growth driver for the region

Digital economy growth will continue to outpace GDP growth across SEA

Driving digital participation

Infrastructure, digital literacy, and reach of services need to be improved for stable long-term digital growth beyond metro cities

Differences between metro and non-metro

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