Reference

e-Conomy SEA is a multi-year research program launched by Google and Temasek in 2016.
Bain & Company joined the program as lead research partner in 2019. The research leverages
Google Trends, Temasek research, Bain analysis, industry sources and expert interviews to shed
light on the Internet economy in Southeast Asia. The information included in this report is sourced
as “Google & Temasek / Bain, e-Conomy SEA 2019” except from third parties specified otherwise.

Disclaimer
The information in this report is provided on an “as is” basis. This document was produced by and the opinions
expressed are those of Google, Temasek, Bain and other third parties involved as of the date of writing
and are subject to change. It has been prepared solely for information purposes over a limited time period
to provide a perspective on the market. Projected market and financial information, analysis and conclusions
contained herein should not be construed as definitive forecasts or guarantees of future performance or
results. Google, Temasek, Bain or any of their affiliates or any third party involved makes no representation
or warranty, either expressed or implied, as to the accuracy or completeness of the information in the report
and shall not be liable for any loss arising from the use hereof. Google does not provide market analysis or
financial projections. Google internal data was not used in the development of this report.
Introducing
e-Conomy SEA 2019
 4 edition of e-Conomy SEA by Google, Temasek, Bain
th

Southeast Asia’s Internet economy research program

2016 2017 2018 2019

e-Conomy SEA e-Conomy SEA e-Conomy SEA e-Conomy SEA

2015–2025 Spotlight 2018 2019

“Unlocking the $200B “Unprecedented growth for “Southeast Asia’s “Swipe up and to the right:
digital opportunity Southeast Asia’s $50B Internet economy hits Southeast Asia’s
in Southeast Asia” Internet economy” an inflection point” $100B Internet economy”
 e-Conomy SEA research methodology

Google Temasek Bain Industry Expert

Trends Research Analysis Sources Interviews

In partnership with
 e-Conomy SEA covers 6 countries in Southeast Asia

96M
Vietnam

570 million
people across the 6 countries
105M
69M covered by e-Conomy SEA
Philippines
Thailand
Indonesia, Malaysia,
Philippines, Singapore,
Thailand, Vietnam
32M
Malaysia

264M
6M Indonesia
Singapore

Source: World Bank

 5 sectors of the Internet economy covered
Financial Services included amidst increasing adoption

e-Commerce Media Ride Hailing Travel Financial Services

Marketplaces Advertising Transport Flights Payments

(SMB2C) Gaming Food Delivery Hotels Remittance
Malls (B2C) Video on Demand Vacation Rentals Lending
“Brand.Com” Music on Demand Investing
Insurance
Other sectors of the Internet economy not covered
due to lack of reliable data or still nascent adoption

Lack of reliable data Still nascent adoption

Social Commerce Healthcare Education

Mobile Internet
transforming Southeast Asia
Mobile Internet transforming lives of Southeast Asians:
unprecedented access to people, information, services
“A day in the life” of a Southeast Asian mobile Internet user

6am-8am 8am-9am 9am-12pm 12pm-1pm 1pm-3pm

A new day begins
• Wakes up with the help
of smart home alarm device
• Checks calendar for
appointments, gets
ready for work
Commute to work Work
• Uses Ride Hailing app • Replies emails
• Plugs in to Music • Checks and updates
Streaming app work collaboration platform
• Makes calls over
the Internet
Lunch Work meeting
• Scrolls through and shares • Gets on video-
photos on social media conference call
• Browses Online • Exchanges files
Shopping app via online chat

3pm-3.30pm
Break
• Checks in on
social media
• Watches short
videos on Video
Sharing platform
10pm-11pm 8pm-10pm 6pm-8pm 5pm-6pm 3.30pm-5pm
Lights out Chill out Dinner Commute home Work
• Scrolls through social media • Watches TV show • Orders dinner through • Uses Ride Hailing app • Listens to music
• Turns off the lights with / movie on Video Food Delivery app • Listens to audiobook on Music Streaming app
smart home device Streaming app • Updates social media
• Buys groceries online
There are 360 million Internet users in Southeast Asia,
the most engaged mobile Internet region in the world

Southeast Asia Internet users

100 million more Internet

users in the last 4 years
360M The most engaged mobile
260M Internet region in the world1

2015 2019

Source(1): Hootsuite “Digital in 2019”

 The most engaged mobile Internet region in the world

Time per day on mobile Internet (2019)

Hours
(#)

6 5:13
4:58
4:35
5 4 Southeast Asian countries
4:02
3:43 rank in the Top 10 globally
4 3:19 3:13 3:12 2:58 by mobile Internet usage
3 2:24 (Indonesia, Malaysia,
Philippines, Thailand)
2
Th

Ph

In

In

Vi

Si

US
hi

ng
do

di

et
al

or
ai

ilip

na
ay

na
ld
la

ap
ne
pi
nd

sia

or
sia
n

id
es

e
e

Source: Hootsuite “Digital in 2019”

Video apps gaining share of mobile Internet engagement

Share of time spent (Apps by category, %)

12% 13% Others

Social & Comms remain
11% Productivity
10% the most engaged apps despite
10% Tools share-of-time decline
20%
Gaming
Engagement on Video apps
Video has doubled in 3 years with
65% Social & Comms live streaming and short form
52%

H1 2016 H1 2019

Source: App Annie analysis for e-Conomy SEA

 Favorable demographics behind Internet growth

Population by age group (2019)

7%
SEA 67%
(6 countries)
26%

11%
Southeast Asia has one of the
China 72% youngest populations among
18% major world regions
15%
10 million Southeast Asians
US 66%
enter the “mobile age”
19%
every year
28%

Japan 60%

12%

65+ years 15-64 years 0-14 years

Source: World Bank
 Steady economic growth uplifting living standards

Annual GDP growth (%)

8%

6%
Southeast Asia has had
4% higher GDP growth
compared with the global
economy by ~2 percentage
2% points since 2010

0%
20

20

20

20

20

20

20

20

20
10

11

12

13

14

15

16

17

18
SEA (6 countries) World
GDP: Gross Domestic Product
Source: World Bank
The Internet economy
hits $100 billion
 Southeast Asia Internet economy hits $100B in 2019,
exceeding all expectations on track to $300B by 2025
Southeast Asia Internet economy (GMV, $B)

$100B
$32B $300B

2015 2019 2025

GMV: Gross Merchandise Value

Southeast Asia is closing the gap with developed markets

Internet economy GMV as % of GDP

8.5%
6.5%

3.7%
1.3%

SEA (2015) SEA (2019) SEA (2025) US (2016)

GMV: Gross Merchandise Value; GDP: Gross Domestic Value

Source: World Bank (GDP); US Bureau of Economic Analysis (US)
1 in 2 Internet users engage in the Internet economy

180M 180M
360 million Internet users Internet users
Internet users not yet using using services of the
services of the Internet economy
Internet economy
Fast and faster
two-speed Southeast Asia
 Among fast-growing Southeast Asian countries,
Indonesia and Vietnam pull away from the pack
Internet economy growth vs GDP penetration
60%
Growth (GMV CAGR 2015-2019)

Indonesia

40% Vietnam

Philippines
Thailand

Malaysia
20%
Singapore China
US

0%
2.5% 5% 7.5%
GDP penetration (GMV as % of GDP 2019)
GMV: Gross Merchandise Value; GDP: Gross Domestic Product
US and China are included for illustrative purposes and not drawn to scale as definitions of Internet economy sectors and metrics vary
 Indonesia is the largest and fastest growing
Internet economy in the region at $40B @ 49% CAGR
32% SEA Internet economy (GMV, $B)

133B

24% 29%
49% 18% 27% 15% 50B
43B
40B
17% 38%
21% 27B 29%
26B 32% 25B

16B
11B 12B 12B
8B 5B 7B 7B 6B
2B 3B

Indonesia Malaysia Philippines Singapore Thailand Vietnam

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

Indonesia is firing on all cylinders, fueled by competition
between local and regional players
Indonesia Internet economy (GMV, $B)
48%
82B

31% 34% e-Commerce (12x in 4 years)

57% and Ride Hailing (6x in 4 years)
56%
17% fueled by competition between
Indonesian and regional players
88%
19% 25B
All sectors benefit from growing
21B 18B
adoption of Digital Payments
10B 9B
5B 4B 6B
1.7B 0.9B
0.6B

e-Commerce Online Travel Online Media Ride Hailing

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate.

 Funding in Indonesia is on track to match 2018 record

Funding in Indonesia Internet economy ($B)

Large funding rounds completed

by Indonesian unicorns Bukalapak,
3.8B Gojek, Tokopedia and Traveloka
3B
1.8B 1.8B Grab announced multi-billion dollar
1.2B commitment to invest in Indonesia

Fewer but larger deals in 2019

2016 2017 2018 H1 2018 H1 2019

Deals (#) 166 181 349 157 124
Malaysia’s Internet economy continues to grow steadily

Malaysia Internet economy (GMV, $B)

27%
11B 11%
9B e-Commerce and Online Media
18% keep growing @ over 30% CAGR
24% led by regional and global players
12%
35% 5B
Most mature $5B Online Travel
30% 31% grows @ 12% CAGR driven
3B 3B 3B
3B by budget airlines and hotels
2B
1B 1B
0.6B
0.3B

e-Commerce Online Travel Online Media Ride Hailing

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Investments in Malaysia slow down from 2018 record

Funding in Malaysia Internet economy ($B)

$140M raised in H1 2019 down from

2018 record and back to 2017 levels
0.4B
More late-stage funding needed
0.29B to give rise to Malaysian Unicorns
0.2B (Series C-D deals $25M-$100M)

0.13B 0.14B

2016 2017 2018 H1 2018 H1 2019

Deals (#) 85 65 164 83 59
Online Media keeps rising in English-speaking Philippines

Philippines Internet economy (GMV, $B)

36%

12B 16% Social, Music, Video streaming

27% 30% and English-speaking Filipino
youth drive 42% CAGR in $2B
Online Media
16%
47% 42% 35%
5B
4B Ride Hailing faces headwinds
4B
amidst regulatory constraints,
3B 2B
2B driver supply challenges and
1.1B
0.5B 0.4B 0.3B
1B
limited competition

e-Commerce Online Travel Online Media Ride Hailing

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Funding surge in the Philippines driven by landmark deals

Funding in Philippines Internet economy ($B)

Landmark deals in digital

financial services
0.31B (Voyager Innovations Coins.
ph-Gojek, First Circle) aided
by supportive regulations

0.13B Healthy funding continues

0.06B
0.05B 0.04B in H1 2019 with $130M raised
in over 30 deals

2016 2017 2018 H1 2018 H1 2019

Deals (#) 30 44 57 31 32
Singapore’s Internet economy boosted by Ride Hailing
competition and growing appetite for Food Delivery
Singapore Internet economy (GMV, $B)
10%
11B
22% 23% Food Delivery doubles year-on-year
11%
7B 13% 7B
amidst heated competition between
Deliveroo, Foodpanda, GrabFood
6B 37%
17%
18% e-Commerce growing moderately @
4.1B
18% CAGR, not yet unlocked despite
3B
3B world-class payment and logistics
2B

1B 1B
0.8B 0.8B

e-Commerce Online Travel Online Media Ride Hailing

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Singapore remains the gateway for regional funding

Funding in Singapore Internet economy ($B)

9.1B

Funding in H1 2019 on track

to match record deals and
5.7B investments in 2018
5.3B
4.8B
Multi-billion dollar series
3.1B raised by Grab and Sea Group

Sizable investments in
Carousell, GoBear, ONE
Championship, PropertyGuru,
2016 2017 2018 H1 2018 H1 2019 ShopBack, Zilingo
Deals (#) 383 362 581 289 297
 Large Online Travel and fast-growing Online Media
are bright spots in Thailand’s Internet economy
Thailand Internet economy (GMV, $B)

18%

35% 20B $7B Online Travel driven

24% 30% by developed Thai
18B
tourism industry

54% 17% Online Media @ 39% CAGR

7B boosted by Thais’ engagement
39% 7B
36%
5B
5B on Social, Video
3.9B
3B

0.9B 0.8B 0.4B

1B Ride Hailing held back
by restrictive regulations
and limited driver base
e-Commerce Online Travel Online Media Ride Hailing

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Thai startups face challenges scaling and getting funded

Funding in Thailand Internet economy ($B)

$50M raised in H1 2019 lower than

2018 and far from 2017 peak

0.2B Thai startups face challenges

scaling amidst lack of
0.13B late-stage funding
0.1B
(Series C-D $25M-$100M)
0.05B 0.05B

2016 2017 2018 H1 2018 H1 2019

Deals (#) 55 102 118 65 39
 Vietnam’s e-Commerce boom drives growth

Vietnam Internet economy (GMV, $B)

49%
23B
38% e-Commerce (12x in 4 years)
15% 28% unlocks opportunities for
Vietnamese SMBs

81% 9B 57% Heated competition between

16%
49% Vietnamese and regional players
7B

5B
4B 4B Ride Hailing (57% CAGR) has
3B
0.4B
2.3B
0.6B 1B ample headroom to grow
0.2B
beyond metro
e-Commerce Online Travel Online Media Ride Hailing

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Vietnam is the 3 most funded country in the region
rd

Funding in Vietnam Internet economy ($B)

3rd most funded country in

the region, $600M raised in
0.35B 2018 and H1 2019
0.26B
Investments in Momo, Sendo,
0.18B Topica led by international
0.16B
0.14B players crown Vietnam as
investment destination

Fewer but larger deals in 2019

2016 2017 2018 H1 2018 H1 2019
Deals (#) 85 83 137 73 54
Growth opportunities
beyond Metros
 7 Metros account for over 50% of the Internet economy

SEA Internet economy (2019)

Hanoi

Greater Metro Manila

Bangkok 48%

85%
HCMC

Jabodetabek 52%
KL-Klang Valley
15%

Population (%) Internet economy (GMV %)

Singapore
Metros Beyond Metros

GMV: Gross Merchandise Value

 Users in Metros spend 6 times more than Beyond Metros
$364
$79
$549
$152 SEA Internet economy (GMV per capita, 2019)
$273
$39

$598
Hanoi
Greater HCMC
Bangkok Metro Manila

$681
$227
$555
$103 $98
KL- Klang Valley Jabodetabek

$2218

Singapore Metros Beyond Metros

GMV: Gross Merchandise Value

Beyond Metros poised to grow twice as fast as Metros

Beyond Metros

4x
Metros
GMV growth

2x
2019-2025

Growth driver User engagement User acquisition

Convenience Access to products

Benefits for users
and value and services

Benefits for society Productivity Inclusion

GMV: Gross Merchandise Value

Fundamental changes
in consumer behavior
 All sectors experiencing active user growth

130M
49M
e-Commerce
(Active Users) 150M Online Gaming
(Active Users)
180M

2015 2019 2015 2019

34%
8M Online Travel
Ride Hailing
(Active Users) 40M (Bookings) 43%

2015 2019 2015 2019

e-Commerce is the largest and fastest growing sector,
Ride Hailing growth propelled by rising Food Delivery
39% SEA Internet economy (GMV $B)
153B

15%
30% 24%

78B
45%
15%
62% 39%

38B 40B
34B 32B

19B
13B 14B
5B 3B 4B

e-Commerce Online Travel Ride Hailing Online Media

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

Growth of e-Commerce and Ride Hailing powered
by fundamental changes in consumer behavior

Usage

e-Commerce Fundamental changes

in consumer behaviour

Ride
Hailing Fast growing
consumer adoption
Online
Payments
Travel
Remittance Online
Lending Media
Education Investment
Healthcare Insurance
Inflection
point

Time
 e-Commerce growth turbocharged by shopping festivals,
reaches $38B in 2019 and may exceed $150B by 2025
SEA e-Commerce (GMV, $B)
39%
153B Growth drivers

62% Online shopping festivals

In-app entertainment
e-Commerce Seller development
CAGR Next-day delivery
38.2B Monetization

5.5B

2015 2019 2025

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate
e-Commerce GMV estimates include sales from businesses to consumers (B2C) and marketplaces where first-hand goods are sold by SMBs to consumers (SMB-2-C). They do not include sales of digital goods,
wholesale orders (B2B), sales of second-hand goods by consumers to consumers (C2C) nor sales completed on social media and messaging platforms (Social Commerce),for which estimates vary widely due
to lack of reliable data sources
 e-Commerce: search interest in coupons and vouchers
growing across Southeast Asia in 2019
Indonesia 2x
Malaysia 2x
Philippines 3x
100 100 100

75 75 75

50 50 50

25 25 25

0 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Singapore 7x
Thailand 2x
Vietnam 2x
100 100 100

75 75 75

50 50 50

25 25 25

0 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Google Trends for selected promotional terms (e.g. coupons, vouchers), 1/2015 - 4/2019 “Xx” indicates average search queries (2019) vs. average search queries (2015)
Ride Hailing opportunity to expand to $40B by 2025,
heated up by booming $5B Food Delivery services
SEA Ride Hailing (GMV, $B)
48%
23% Growth drivers
40B

91% Food delivery

32% 20B Financial services
Online Food Delivery
Loyalty & rewards
Online Transport
Driver development
12.7B CAGR
2.9B Profitability
5.2B 20B
0.4B
2.5B 7.5B

2015 2019 2025

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Search interest for Food Delivery surges across
Southeast Asia in 2019
Indonesia 13x
Malaysia 6x
Philippines 9x
100 100 100

75 75 75

50 50 50

25 25 25

0 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Singapore 7x
Thailand 8x
Vietnam 2x
100 100 100

75 75 75

50 50 50

25 25 25

0 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Google Trends for selected Online Food Delivery brands, 1/2015 - 4/2019. “Xx” indicates average search queries (2019) vs. average search queries (2015)
Online Media hits $14B, powered by Ads and Gaming

SEA Online Media (GMV, $B)

36%
20%
26%
Growth drivers

32B
52% Internet user growth
28% 3B Subscription Music & Video
45% Online Gaming
Mobile engagement
9B Live & short-form videos
Online Advertising
14.2B
Local content creators
0.6B CAGR
3.8B
Lifetime value (LTV)
0.1B 4.2B 20B
1.6B
2.1B 9.4B

2015 2019 2025

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Subscription Video Streaming brands reached new peaks
in search interest across Southeast Asia in 2019
Indonesia 26x
Malaysia 5x
Philippines 7x
100 100 100

75 75 75

50 50 50

25 25 25

0 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Singapore 7x
Thailand 28x
Vietnam 8x
100 100 100

75 75 75

50 50 50

25 25 25

0 0 0
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019

Google Trends for selected Subscription Streaming Video brands, 1/2015 - 4/2019. “Xx” indicates average search queries (2019) vs. average search queries (2015)
 Vacation Rentals and Budget Hotels most
dynamic in $34B Online Travel sector
SEA Online Travel (GMV, $B)
19%
19%
12% 78B Growth drivers
2B
22%
18% Online Vacation Rentals
Vacation rental brands
13% 36B Online Hotels
Budget hotel chains
34.4B Experiences
Online Flights
19.4B
0.7B Partnerships
CAGR
0.3B 12.9B
40B
6.6B
20.8B
12.5B

2015 2019 2025

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Budget Hotels and Vacation Rentals grew steadily
in search interest across Southeast Asia in 2019

Budget Hotel brands Vacation Rental brands

9x 3x
100 100

75 75

50 50

25 25

0 0
2016 2017 2018 2019 2016 2017 2018 2019

Google Trends for selected Online Budget Hotel brands (ID, MY, PH, SG, VN) and selected Online Vacation Rental brands (ID, MY, PH, TH, VN), 1/2015 - 4/2019
“Xx” indicates average search queries (2019) vs. average search queries (2015)
Time is money:
competing for
engagement
 Consumers benefit from increased competition
as players launch new services to drive engagement
“Heat map” (2015) “Heat map” (2019)
Fo

Fo
e- an y

e- an y
C sp

C sp
Ad Ne

Ad Ne
o

o
St erc

St erc
d

d
om ort

om ort
Tr er

Tr er
Fi

Fi
ve ws

ve ws
re e

re e
De

De
G

G
na el

na el
m

m
rt

rt
am

am

am

am
Tr

Tr
liv

liv
isi

isi
nc

nc
av

av
in

in

in

in
ng

ng
ia

ia
g

g
l

l
Food Delivery Food Delivery

Ride Hailing Ride Hailing

e-Commerce e-Commerce

Online Media Online Media

Online Travel Online Travel

Financial Financial

Core Service Adjacent Service Nascent Presence

 Increased user engagement strongly correlates
with monetization through orders and bookings
e-Commerce - Monetization vs Time Spent Ride Hailing - Monetization vs Time Spent

Southeast Asia, Q1 2016-Q2 2019 Southeast Asia, Q1 2016-Q2 2019

4 4
Monetization (GMV, $B)

Monetization (GMV, $B)

3 3

2 2

1 1

0 0
500M 1000M 1500M 100M 200M 300M

Time spent on apps (hours) Time spent on apps (hours)

GMV ($B) R2 = 0.904 GMV ($B) R2 = 0.806

Source: App Annie analysis for e-Conomy SEA

Digital Financial Services
reach the inflection point
 Today, 3 in 4 people in Southeast Asia
have insufficient access to financial services

SEA adult population

Thailand Vietnam Philippines

20M 15M 15M

25M 7M 8M Bank accounts
15M 49M 44M 104M Credit
Banked Investment
Insurance

Bank accounts
98M Credit
Underbanked Investment
Malaysia Singapore Indonesia Insurance

10M 3M 42M Bank account

9M 2M 47M 198M Credit
3M – 92M Unbanked Savings
Insurance

Source: “Fulfilling its Promise - The Future of Southeast Asia’s Digital Financial Services”
 Digital Financial Services can meet needs
with products enabled by technology and data

Digital Payments Digital Remittance Digital Lending Digital Investment Digital Insurance

All form of payments Remittance through Lending through Investments through Insurance through
(account to account digital channels, no digital channels, no digital channels, no digital channels, no
cards, e-Wallets) in-person interactions in-person interactions in-person interactions in-person interactions
excluding cash

Payments: Consumer to business (C2B) payments in cash, debit / prepaid / credit cards, e-Wallets, account-to-account; Remittance: Consumer to consumer (C2C) transfers across borders;
Lending: Consumer loans (excluding housing) and SMB loans (Small & Medium Business); Investment: Personal investments in mutual funds; Insurance: Life insurance, Health insurance, General insurance
Digital Payments on track to exceed $1 trillion by 2025

SEA Consumer Payments (GTV, $B)

2,300B
Consumer Payments

1,400B Digital Payments

1,100B
e-Wallets
600B

114B
22B

2019 2025

GTV: Gross Transaction Value

Source: “Fulfilling its Promise - The Future of Southeast Asia’s Digital Financial Services”
 Other Financial Services nascent but gaining adoption

Digital Digital Digital Digital

Remittance Lending Investments Insurance
(Flows, $B) (Loan Book, $B) (AUM, $B) (GWP, $B)

110B

75B

28B 23B

11B 10B 8B
2B

Penetration rate (%) 13% 28% 3% 8% 3% 11% 4% 9%

2019 2025
AUM: Assets Under Management; GWP: Gross Written Premiums
Source: “Fulfilling its Promise - The Future of Southeast Asia’s Digital Financial Services”
 Clear leaders are yet to emerge in Southeast Asia’s
uniquely diverse and fragmented competitive landscape
New Entrants

MoolahSense StashAway TransferWise GoBear

CredoLab Xero
Bareksa WorldRemit Jurnal YouTube
Koinworks Investree Lenddo Cermati Facebook
InstaRem

Credit engine
Fundnel Rabbit LINE Pay
Funding Societies CekAja
Gameit
re

Rem
Instagram
OpenBravo AwanTunai
Ro wa Tencent Google
bo ft

or
so

ittan
InspirePos Signify Crowdo Tik Tok
-a

at
g Zalo
dv tin

eg
Taralite n a Sendo.vn
iso u d i

ce
e

Consumer Services
SoftPay Moka

gr
Len co a l m
ry i
Financial Services

Ac
Tokopedia

Ag
d ing s o c Amazon Zilingo
nt/
GoPay Pawoon
t e
Con
Moca PayMaya Zalora Bukalapak Blibli JD.ID
LinkAja MoMo POS
MolPay Dana 2C2P Payments and e-W Consumer m e rc e Carousell
e-Com
Ovo Shopee Lazada Tiki.vn Alibaba
allets
and
merchants Ride Haili
OCBC SCB Krungthai CIMB Mandiri Banks Oth
ng & Trav
el Traveloka
e nt Te er t Grab
m lco ech
Digibank
BCA BNI UOB
age Gojek

ce
by DBS a n
hm
Tiket.com

Ret
Remittance
alt

ra
Maybank True Telecom Google Pay
e

su

ail
W

In
Bangkok
Bank Telkomsel Samsung Pay
Charles Schwab AXA Alfamart
Globe Telecom Apple Pay
Morgan Stanley UBS Prudential Robinsons
MoneyGram Axiata
Aviva
BNP Paribas Western Union Indomaret
Singtel
Manulife Allianz Indosat
CYS Global Remit 7-Eleven Ooredoo

Established Players
 Established players and new entrants are
competing and partnering
New Entrants

MoolahSense StashAway TransferWise GoBear

CredoLab Xero
Bareksa WorldRemit Jurnal YouTube
Koinworks Investree Lenddo Cermati Facebook
InstaRem

Credit engine
Fundnel Rabbit LINE Pay
Funding Societies CekAja
Gameit
re

Rem
Instagram
OpenBravo AwanTunai
Ro wa Tencent Google
Pure-play bo Consumer
ft Tech

or
so

ittan
InspirePos Signify Crowdo Tik Tok
-a

at
ng Zalo
Fintechs dv nt
i Platforms

eg
Taralite a Sendo.vn
iso u d i

ce
e

Consumer Services
SoftPay Moka

gr
Len co a l m
ry i
Financial Services

Ac
Tokopedia

Ag
d ing s o c Amazon Zilingo
nt/
GoPay Pawoon
t e
Con
Moca LinkAja PayMaya Zalora Bukalapak Blibli JD.ID
MoMo POS
MolPay Dana 2C2P Payments and e-W Consumer m e rc e Carousell
e-Com
Ovo Shopee Lazada Tiki.vn Alibaba
allets
and
merchants Ride Haili
OCBC SCB Krungthai CIMB Mandiri Banks Oth
ng + Traveloka
e nt Te er t
ech
Grab
m lco Gojek
Digibank
BCA BNI UOB
age

ce
by DBS a n Tiket.com
hm

Ret
Remittance
lt

ra
Maybank
Established Financial
e a EstablishedGoogle
True Telecom Consumer
Pay

su

ail
W

In
Bangkok
Bank
Services Players
Charles Schwab AXA Alfamart
Telkomsel
Players Samsung Pay

Apple Pay
Globe Telecom
Morgan Stanley UBS Prudential Robinsons
MoneyGram Axiata
Aviva Western Union Indosat
BNP Paribas Indomaret
Singtel Ooredoo
Manulife Allianz CYS Global Remit 7-Eleven

Established Players
Different solutions to meet the needs
of different consumer segments
SEA adult population

Stronghold of Established Financial Services Players that have

104M customer relationships, expertise, balance sheet and trust
Banked Established Players digitizing faster will have competitive advantage

Serving the Underbanked is the largest business opportunity

98M
Technology can reduce cost to serve and solve for lack of data
Underbanked
Consumer Tech Platforms well positioned to serve the Underbanked

Fundamentally challenging to serve - high CAC, low LTV

198M
Established Consumer Players have distribution access
Unbanked
Technology alone is not enough, affirmative policies required

CAC: Customer Acquisition Cost, LTV: Lifetime Value

Source: “Fulfilling its Promise - The Future of Southeast Asia’s Digital Financial Services”
Key ingredients to unlock Digital Financial Services

Supportive regulations Consumer trust Funding

Consistent New Entrants partnering Acquiring new customers,

and predictable with Established Players promoting trial and usage

Common standards World class cybersecurity Investments to digitize

standards for all players legacy IT systems
Regulatory sandboxes
Treatment of Personally Balance sheet capacity
Identifiable Information for banking and lending
Funding remains healthy
despite global headwinds
 Funding remains healthy despite global headwinds

Funding in SEA Internet economy ($B)

14.1B

9.4B
7.1B
7.6B
$37 billion
raised by Internet economy
4.7B companies in Southeast Asia
between 2015 and H1 2019
1.1B

2015 2016 2017 2018 H1 2018 H1 2019

Funding includes Internet companies operating in sectors covered by the e-Conomy SEA research and other nascent Internet economy sectors
 e-Commerce and Ride Hailing raised 2 in 3 dollars

Funding in SEA Internet economy ($B)

5.2B

4.3B
3.9B
3.5B

2.5B 2.6B 2.5B 2.5B

1.7B 1.5B 1.6B
1.2B 2B

0.9B 0.9B 1B
0.5B 0.5B 0.5B 0.6B 0.6B 0.7B 0.5B
0.2B 0.3B 0.2B 0.3B
0.1B 0.1B
0B

Ride Hailing e-Commerce Fintech Online Travel Online Media Others

2016 2017 2018 H1 2018 H1 2019

Funding includes Internet companies operating in sectors covered by the e-Conomy SEA research and other nascent Internet economy sectors
 $24B invested in Southeast Asia’s 11 Unicorns

Funding for SEA Unicorns ($B) Unicorns

8.7B
7.1B
4.5B 5.1B
2.8B

2016 2017 2018 H1 2018 H1 2019

Unicorns refer to companies valued > $1B. Definitions are based on information made publicly available by the companies and do not constitute a confirmation of the company valuations
Some of the Unicorns have since become public companies or have been acquired. We continue to refer to them as Unicorns for editorial purposes
 $5B invested in more than 70 “Aspiring Unicorns”

Funding for SEA “Aspiring Unicorns” ($B) “Aspiring Unicorns” (not exhaustive)

2.2B

1.1B
1B
0.9B
0.7B

2016 2017 2018 H1 2018 H1 2019

“Aspiring Unicorns” refer to companies valued $100M-$1B. Definitions are based on information made publicly available by the companies and do not constitute a confirmation of the company valuations
 $7B invested in nearly 3,000 startups

Funding for SEA startups ($B)

Average deal size doubled

over the last 3 years in
3.3B Seed, Series A, Series B
0.7B 1.7B
1.4B 1.4B Most startups active in
1.2B 0.4B B2B, Edutech, Healthtech,
0.3B 0.3B
0.4B e-Commerce services, Fintech
2.6B
1.4B
0.8B 1B 1.1B

2016 2017 2018 H1 2018 H1 2019

< $10M valuation $10M – $100M valuation

Startups refer to companies valued <$100M, Definitions are based on information made publicly available by the companies and do not constitute a confirmation of the company valuations
Average deal size has doubled over the last 3 years

Seed Series A Series B

(Average deal size) (Average deal size) (Average deal size)

8M
4M
2M
0.8M 16M
0.5M

2016 2019 2016 2019 2016 2019

Average deal size is based on publicly available information on deals where both stage and round size were disclosed
 Early stage funding on track to top 2018 record

Early stage funding ($B) 2016-H1 2019

1.8B

Funding in Seed-Series A
and Series B tops 2018 record
1B
0.8B 0.8B
0.9B 0.9B
Fewer yet larger Seed-Series A
0.7B
deals as ecosystem matures
0.5B
0.4B 0.4B

“Series B” funding gap solved

Deals (#) 659 685 1,107 580 474 50 49 85 48 45

Seed-Series A Series B

2016 2017 2018 H1 2018 H1 2019

 Late stage “funding gap” has shifted to Series C-D

Late stage funding ($B) 2016-H1 2019

8.3B

More and larger Series C-D

investments needed for
“Aspiring Unicorns” to scale
5B
4.5B

2.9B
Series E+ boosted by
Ride Hailing and e-Commerce
1.5B
0.9B
0.5B 0.7B 0.6B
0.9B mega-rounds ($1B+)

Deals (#) 11 13 31 16 19 2 3 11 4 6

Series C-D Series E+

2016 2017 2018 H1 2018 H1 2019

Series E+ funding includes intermediate closing of open series as publicly disclosed by the companies
 Venture Capitalists are raising larger growth funds,
Private Equity funds are investing in earlier series
Deal Size

Private Equity
Investors

Venture
Capitalists

Seed Early stage Late stage Pre-IPO

Historical focus Latest development

Ecosystem challenges
are being resolved
Ecosystem challenges are being resolved

Consumer
Funding Talent
Trust

Internet
Access Logistics Payments

Significant Limited
progress progress
Consumer Trust significantly improved across sectors

Improved consumer trust

for e-Commerce, Ride Hailing,
Media, Travel; still nascent
for Education, Healthcare

Consumer Internet economy companies

have become “household brands”
Trust

Significant Limited
progress progress
 Efforts by tech and telco companies have made
fast Internet Access more reliable and affordable

Launch of Mobile Virtual

Network Operators (MVNOs)
increased competition

Music, Video, Social apps

Internet bundled in zero-rated plans
Access Optimized apps for low data
usage and patchy connectivity

Significant Limited
progress progress
Leading Logistics providers able to deliver nationwide,
race is moving to next-day and same-day deliveries

e-Commerce players have

started offering next-day
and same-day deliveries

Logistics startups signed

partnerships with leading
Logistics e-Commerce and
Ride Hailing players

Significant Limited
progress progress
Digital Payments gain both user and merchant adoption

Growing merchant acceptance

online and offline

Consumer adoption focused on

top e-Wallets in each country

Payments Loyalty and rewards programs

emerge as key drivers of usage

Significant Limited
progress progress
Talent remains a challenge despite efforts to “fill the gap”

Digital upskilling programs

Offshore engineering centers

Hiring experienced managers

from other industries
Talent “Reverse diaspora” of
Southeast Asian talent

Significant Limited
progress progress
Key takeaways
e-Conomy SEA 2019
e-Conomy SEA 2019 key takeaways

Southeast Asia’s Internet economy hits $100 billion

Indonesia and Vietnam pull away from the pack

Sizable growth opportunities Beyond Metros

Digital Financial Services reach the inflection point

Funding remains healthy despite global headwinds

Appendix
Sectors by country
 e-Commerce reaches $38B, growing at 62% CAGR

SEA e-Commerce (GMV, $B)

48%

82B

36% 49%
Growth drivers:
27%

Online shopping festivals

35% In-app entertainment
22% Seller development
81%
88% Next-day delivery
54%
35% 23B
Monetization
20.9B 47%
18% 18B
12B
11B
7B
3.3B 5B 4.6B
1.7B 1B 2.5B 1B 1.9B
0.5B 0.9B 0.4B

Indonesia Malaysia Philippines Singapore Thailand Vietnam

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Online Media crosses $14B, rising at 39% CAGR

SEA Online Media (GMV, $B)

Growth drivers:

31% 27% 13%

Internet user growth
18% 28%
9B 24% Live & short-form videos
Local content creators
7B 7B
Lifetime value (LTV)
56% 30% 42% 17% 39% 49%
4B
3.5B
3B 3B 3B 2.8B
1.8B 1.7B 1.5B
0.6B 0.6B 0.8B 0.8B 0.6B
0.4B

Indonesia Malaysia Philippines Singapore Thailand Vietnam

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Online Travel exceeds $34B, increasing at 15% CAGR

SEA Online Travel (GMV, $B)

Growth drivers:
17%
11% 16% 10%
Vacation rental brands
25B 18% Budget hotel chains
15%
Experiences
19% 11% 20B Partnerships
17% 16%
12% 16%
10.2B 11B
9B 9B
7.2B
6.1B
5B 4.8B 5B 4.1B 4.1B
3B 3.9B
2.1B 2.3B
1.1B

Indonesia Malaysia Philippines Singapore Thailand Vietnam

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate

 Ride Hailing approaches $13B, advancing at 45% CAGR

SEA Ride Hailing (GMV, $B)

34% Growth drivers:

24% 30%
23% 30% 38% Food delivery
Financial services
18B
57% Loyalty & rewards
37% 36% Driver development
31% 35% 57%
5.7B 7B Profitability
4B 5B 4B
3B 2.9B
0.9B 0.3B 0.9B 0.3B 0.8B 0.8B 0.4B 1.3B 0.2B 1.1B

Indonesia Malaysia Philippines Singapore Thailand Vietnam

2015 2019 2025 CAGR

GMV: Gross Merchandise Value; CAGR: Compounded Annual Growth Rate