Tracxn, a leading global SaaS-based market intelligence platform, has released its Geo Quarterly Report: Indonesia Tech - Q3 2023. The report, based on Tracxn’s extensive database, provides insights into the Indonesia Tech space.
Indonesia is the highest funded region in the SEA startup ecosystem followed by Singapore and Vietnam in Q3 2023 and ranks second in terms of total funding in 2023 YTD in the SEA region. The Indonesian Tech startup ecosystem ranks second in terms of overall funding to date in the SEA region, next to Singapore. With favourable economic conditions and GDP growth of more than 5%, the region has gained investor interest attracting more investments.
While funding on a global scale across the stages has declined, Indonesian startups have shown an uptick this quarter. Total funds raised by Indonesia Tech startups in Q3 2023 stood at $448 million, a jump of 110% compared with $213 million raised in Q2 2023. However, this is a drop of 28% compared with the $628 million raised in Q3 2022.
Across all stages, funding into Indonesian startups has seen an uptick in terms of quarter-on-quarter (QoQ) comparison. Late-stage investments rose 89% to $300 million in Q3 2023 from $159 million in Q2 2023. This space attracted early-stage investments worth $104 million, an 181% increase from $37 million in Q2 2023. Seed-stage funding, too, grew 154% to $44.5 million from $17.5 million in Q2 2023.
Food and Agriculture Tech, HealthTech and Transportation and Logistics Tech were the top-performing segments in the Indonesia Tech space in Q3 2023. Startups in the Food and Agriculture Tech space secured funding worth $233 million in Q3 2023, a 166% jump from $108 million in Q2 2023.
No new Unicorns were created and no IPOs took place in the overall Indonesia Tech sector in the third quarter of 2023. However, five acquisitions were observed during the quarter, as against four in Q2 2023 and six in Q3 2022.
Among Indonesian cities, Bandung ranks first in terms of funding in the third quarter of the year. Startups based in Bandung raised $200 million in Q3 2023, followed by those headquartered in Jakarta ($140 million) and Tangerang ($73.5 million).
East Ventures, AC Ventures and Alpha JWC Ventures were the most active investors in the Indonesia Tech space. Northstar Group, East Ventures and B.I.G. Ventures were the top seed-stage investors, while TMI, Horizons Ventures and SWC were the most active early-stage investors. Astra Digital was the most active investor in terms of late-stage funding.
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