Southeast Asia

Tech Investment
2022
ABOUT
CENTO VENTURES
Cento Ventures is a venture capital firm focused on technology startups
building products and services emerging from the digital transformation of
promising growth markets, particularly Southeast Asia.
We are based in Singapore and backed by a team well experienced in
internet business. We operate three funds that invest across industries
through a disciplined, well-researched approach to locate technology
investment opportunities originating from the Southeast Asian region.
Cento Ventures is convinced that the opportunity exists for Southeast Asian
founders to build transformational digital companies, and we look forward to
working with more startup teams to create new success stories.
Learn more about us at cento.vc
and our social media pages: LinkedIn, Facebook, or Twitter.
Our investment thesis is guided by these three principles
Sectors ready for digital transformation:
There is an excellent opportunity for technology to solve
some of the inefficiencies present in emerging markets.
Most of our investments apply innovative business
models to large industry sectors that are set in their ways,
using technology as an enabler.
Tech startups at an early stage, but with proof points:
Our investments are usually at Series A, where we lead the
round. We invest once a company can show that a
market exists for its product and that it is ready to use
extra capital to scale.
Founders with great ambition:
We look for founders who want to build large digital
companies that are leaders in their category. Our
preference is for business models that are light on
physical assets and where the founders have ambitious
plans to scale internationally.
© 2023 Cento Ventures 2
 2022 HIGHLIGHTS

• Region on the verge of a downturn

2022 saw US$ 10.4B going into the regional ecosystem, the third strongest year on record and
on par with the pre-pandemic investment levels. Southeast Asia did not see an abnormal
deficit of digital investment capital until the very end of 2022 despite the souring capital
markets’ mood.

The region’s tech scene appeared slower to react to global changes than Latin America and
India. Southeast Asia remained much closer to its 2017-2020 capital intake baseline than the
peer regions, likely softening the inevitable early 2023 correction.

• Similar investment volumes, different investment priorities

The region underwent a rapid change of active investor composition halfway through the
year, causing reallocation of capital between geographies and stages and significantly
changing the valuation landscape.

Global late-stage investors powering Series C+ and mega deals categories were in retreat,
redirecting their effort towards investment stages as early as Series B and then nearly leaving
the market altogether. Regional and North Asian investors remained present across late-stage
deals, bringing mega-deal activity down to 2016 levels and Series C+ to late 2019 levels.

Funds managed by SEA investors have accumulated enough dry powder to keep Series A-C
going at a usual volume (capital invested in the H2 2022 decreased by 48% vs. H1 2022, a drop
off typical for 4 out of 5 preceding years), with a slowdown visible only in the very last weeks of
2022.

The valuation landscape changed sharply through the year, with Series B valuations most
volatile - Indonesia’s Series B valuations surged during global players’ retreat into earlier
stages only to come back down to late 2021 levels towards the end of the year; Series B
valuations in Vietnam have come down steadily through the year from the exceptional
heights of 2021.
© 2023 Cento Ventures 3
 2022 HIGHLIGHTS

• Battle of narratives and search for the next growth story

In early 2022, as Series B valuations in Indonesia peaked and the search for the next regional
growth story began, the Philippines’ investment volume overtook that of Vietnam, as the
narratives of Vietnam’s “Next China” and the Philippines’ “Next Indonesia” were being tested
against each other. As the year went on, investment volumes came down in both markets, with
Vietnam ahead for H2 2022, albeit narrowly.

• Returns on invested capital arrive with vengeance

Private market liquidity (trade exits and secondaries) and initial proceeds from IPOs, despite
the subsequent weak performance of listed stock, delivered the best year for exits on record,
with 4 liquidity events generating more than $500M in proceeds each - GOTO and BELI IDX
IPOs; 2C2P and Coda Payments transactions. Additionally, 10 liquidity events delivered north of
$100M in proceeds each.

The top quartile median exit valuation has continued its steady rise from under US$ 100M in
2018 to nearly US$ 0.5B in H1 2022, setting a new benchmark for the value of a well-built
regional digital platform.

© 2023 Cento Ventures 4

 2022 HIGHLIGHTS

• The Work Must Continue: digital financial infrastructure upgrade

Digital financial services remained the key investment theme for the region, representing 46%
of overall 2022 liquidity, 43% of all 2022 equity funding, and responsible, additionally, for billions
in private credit facilities lined up to support an array of non-bank lenders across the region
(which our report doesn’t yet track but someone should! We’re looking at you, ASEAN Central
Banks).

As private credit grew more sophisticated and available, investment into digital financial
services shifted from powering lending facilities and user acquisition to upgrading the key
financial infrastructure of the region, with payments value chain and capital market systems
being primary beneficiaries.

The sector’s vitality reflects rapid updates to regional payment infrastructure and regulations, a
variety of bank charters available to tech companies, and the shift of focus by existing digital
platforms as they leave the “super-app” thesis behind in favour of financial services origination
and distribution.

© 2023 Cento Ventures 5

Investment
Landscape Overview
The numbers on pages 7-12 incorporate all events customarily reported as technology
investments into Southeast Asia, including non-fiat investments, project financing, corporate
subsidiary investments, and such. The further analysis only includes financing and liquidity
events we consider venture investments into digital companies according to our methodology
laid out at the end of the report. The total value of investment events falling outside our
framework amounted to $ 1.76B in 2022

© 2023 Cento Ventures 6

SOUTHEAST ASIA ATTRACTED $ 10.4B IN 2022
THE THIRD STRONGEST YEAR DESPITE THE GLOBAL SLOWDOWN
• The region sees 929 deals in 2022
• Overall capital invested remains above the pre-pandemic period

SE Asia capital invested by year, $ B and deals done, #

$15 1,200
$14
$13 991
929 1,000
$12
$11
$10
764 744 800
$9
$8 480
600
$7 $14.5
436 444 $12.8
$6
397
$5 $10.4 400
$8.8 $8.7
$4
221
$3 $5.9
200
$2 98 $4.2
$1 $2.2
$0 0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

# of Deals Capital Invested

Source: Cento research © 2023 Cento Ventures 7

$ 3.6B INVESTED IN H2 2022
DECLINE IN H2 CONSISTENT WITH PRIOR YEARS
• Capital invested in the H2 2022 decreased by 48% vs H1 2022 in the same pattern as seen in 2018, 2019, and 2020; 2021 was a clear outlier, with H2 exceeding H1 for
the first time since 2017.
• The number of deals done rose slightly from H1 to H2 of 2022, despite 48% drop-off in overall funding volume, indicating a sharp shift of activity to earlier stages.

SE Asia capital invested by half-year period, $ B and deals done, #

+103%
$13 600
537
$12

$11 471 500

454 458
$10
-55%
$9 393 387
371 -48% 400
357
$8
-65%
$7 -55%
300
$6 249
230 235 231
221 223
$5 206
$9.7
$8.9 200
$4 162
$6.5 $6.8
$3 111 110 $6.0
$4.4 $4.8 100
$2 54 $4.0
44 $3.6
$2.3 $2.7
$1 $2.0 $2.1
$0.3 $0.2 $1.0 $1.2 $1.4
$0.9
$0 $0.5 0
2013 H1 2013 H2 2014 H1 2014 H2 2015 H1 2015 H2 2016 H1 2016 H2 2017 H1 2017 H2 2018 H1 2018 H2 2019 H1 2019 H2 2020 H1 2020 H2 2021 H1 2021 H2 2022 H1 2022 H2

# of Deals Capital Invested

Source: Cento research © 2023 Cento Ventures 8

GLOBAL REVERSAL OF EXTRAORDINARY 2021 GAINS
SOUTHEAST ASIA IS NEARLY BACK TO 2017-2020 BASELINE
• LATAM experienced the steepest drop among growth markets, while China fell the most among developed peers.
• Growth markets appear to respond to global tech slowdown with different degrees of alacrity, likely related to the degree of “ZIRP” investors’ influence in each region

Developed digital markets Growth digital markets

-32%
Capital invested
by region, 2022 vs. $289.9

2021, $ B
$196.2
2022
-18% -46%
2021
$104.0 $107.0 -33%
$85.0 -28% -53%
-7% +24%
$57.4
$38.5
$25.7
$14.5 $10.4 $15.9 $7.5 $5.2 $4.9 $3.2 $3.9

US EU China India SE Asia LATAM Africa MENA

Capital Invested 1.8X 2.7X 0.7X 3.2X 1.1X 2.5X 3.8X 4.5X
2022 vs Av. 2017-2020, X
[Av. 2017-2020 US$ B] [$110] [$32] [$80] [$8.1] [$9.1] [$3.0] [$1.3] [$0.9]

Source: US (NVCA, Pitchbook), EU (Dealroom), China (Global Data), India (IVCA, Bain), SE Asia (Cento Research), LATAM (LVCA). Africa (Partech), MENA (Wamda, Magnitt, Digital Digest) © 2023 Cento Ventures 9
MEGA DEAL CATEGORY CONTINUED ITS DECLINE FROM H2 2021 PEAK ($ 5.3B)
2022 MEGA DEALS TOTAL AT $3B, BACK TO 2016 LEVELS
• Mega deals in H2 2022 declined by 50% vs H1 2022, and 81% vs H2 2021, resulting in the the lowest annual investment volume ($3B) for the category since 2016 ($2.8B).
• Contributors1 of H2 2022 mega deals include LINE Man, Investree, Shopback and Kredivo, following H1 2022’s Xendit, Carsome, Dana, Paymaya, Voyager Innovations,
Funding Societies, Tonik and Pintu.
• $ 100m+ deals in H2 2022 reverted to being driven by North Asian strategics and Southeast Asian strategic and sovereign investors; global growth investors completed
their withdrawal observed in H1 2022.
SE Asia capital invested, $ 100M+ deal analysis, $B, and $ 100M+ deals done, #
20
$13 20
19
$12
18
$11 17
16
$10
15
$9 14
13
$8 12
$7 $5.3 10 11
9 9 9 10
$6 9
$2.0
$5 $7.5 $1.8 8
6 7
$4.4
$4 5 5 5 $4.0 5 5 6
$2.2
$1.0 5
$3 $3.2
3 3 3 $2.4 4
$0.9 $4.4 $4.8
$2 2 $0.4
2 3
$0.6
1 1 $1.3 $1.5 1 $2.6 $2.6 2
$1 $0.7 $0.6 $2.2 $1.9 $2.0 $1.8
0 $1.4 $1.6 1
$0.6 $0.7 $0.7 $0.9$0.9 $1.3
$0 0
2013 H1 2013 H2 2014 H1 2014 H2 2015 H1 2015 H2 2016 H1 2016 H2 2017 H1 2017 H2 2018 H1 2018 H2 2019 H1 2019 H2 2020 H1 2020 H2 2021 H1 2021 H2 2022 H1 2022 H2

# of deals $ 100M+ $ 100M+ ≤ $ 100M

Source: Cento research © 2023 Cento Ventures 10

Note 1: Key drivers of mega deals of 2020-2021 (Grab, GoTo) went public end of 2021, and this report no longer tracks their capital intake.
SHARP REVERSAL IN SERIES C+, DECLINES 83% IN H2 VS H1
CORE VENTURE FUNDING STACK ACROSS SERIES A-C REMAINS STABLE INTO Q4
• Series C+ ($ 50M to $ 100M per deal) category is back to late 2019 levels; gets boosted temporarily by global late-stage investors retreating to earlier stages in H1’22 before
leaving the market altogether in H2’22
• The rest of the funding stack (Series A-C) runs in line with 2021 through most of 2022, with signs of slowdown emerging in late Q4’2022
• Availability of pre-A and Series A capital ($ 0.5M - $ 10M) steady but limited as erstwhile Series A investors pursue higher AUM strategies

SE Asia capital invested, ≤$ 100M deal analysis, $ B and ≤$ 100M total deals done, #
$13 517 550

$12 500
466
$11 445 448
450
$10 388 382 400
369
$9 348
350
$8

$7 300
240
$6 228 230 225 250
220 218
203
$5
200
159
$4
$1.4 $2.0
150
$3 110 107
$0.6 $0.3 100
$2 53 $0.5 $0.4 $1.9 $1.8
44 $0.4 $1.3
$0.3 $0.8 $1.1
$1 $0.7 $1.0 $1.0 $1.1 50
$0.8 $0.5
$0.4 $0.4 $0.7 $0.8 $1.0 $1.0 $0.9
$0.3 $0.5 $0.5 $0.6 $0.5
$0 0

2013 H1 2013 H2 2014 H1 2014 H2 2015 H1 2015 H2 2016 H1 2016 H2 2017 H1 2017 H2 2018 H1 2018 H2 2019 H1 2019 H2 2020 H1 2020 H2 2021 H1 2021 H2 2022 H1 2022 H2

# of deals ≤$ 100M >$ 100M >$ 50M to $ 100M >$ 10M to $ 50M ≤$ 10M

Source: Cento research © 2023 Cento Ventures 11

BUSINESS (ALMOST) AS USUAL WITHIN CORE VENTURE STACK
SERIES C AND LATE SERIES B MIRROR SERIES C+ DECLINE
• Series B+ & C ($10M to $ 50M per deal) slow down, remain comfortably above pre-pandemic levels
• Deals below $ 10M (Seed to Series A) remain generally unscathed both in terms of capital invested and the number of deals

191 130
$2.5 176 200 $2.5 140
116 114
150 155 120
$2.0 137 $2.0 92
150 100
116 114
$ 0.5M+ to $1.5 $ 3M+ to $ $1.5 -8% 80
62 57
100 54
$ 3M deals1 $1.0 -2% 10M deals $1.0 60
$0.72 $0.71 $0.65
$0.52 40
50 $0.37
$0.5 $0.28 $0.30 $0.24 $0.5 $0.33 $0.30
$0.19 $0.16 $0.21 $0.24 20

$0.0 0 $0.0 0
2019 H2 2020 H2 2021 H2 2023 H2 2019 H2 2020 H2 2021 H2 2022 H2

-28% -83%

90 28 30
$2.5 80 $2.5
77
75 25
$2.0 61 $2.0 20
$ 10M+ to $ 51 60
$ 50M+ to $ 20
49
$1.5 $1.5
50M deals 41 100M deals
45 15
10 10 $2.1
$1.0 24 $1.9 $1.0 $2.0
$1.8 30 10
6 6 $1.4 5
$1.1 $1.1 $1.3
$0.5 $1.0 $1.1 15 $0.5 5
$0.8 $0.6
$0.5 $0.4 $0.4 $0.3
$0.0 0 $0.0 0
2019 H2 2020 H2 2021 H2 2022 H2 2019 H2 2020 H2 2021 H2 2022 H2

Source: Cento research # of deals Capital Invested, $ B © 2023 Cento Ventures 12

Note 1: Cento data for deals under $ 1M is not exhaustive
COMPETITION FOR “NEW GROWTH STORY”
CONTINUES BETWEEN VIETNAM & THE PHILIPPINES
• The Philippines market overtakes Vietnam as the #3 VC investment destination once again as the two markets compete to be the next VC growth story
• 2022 notable transactions in the Philippines include Maya, Voyager Innovations, Tonik Financial, and GrowSari; Vietnam highlights include Trusting Social and Tiki
• VC investment distribution across the region remains disconnected from the size of underlying economies.

New VC capital invested by country, % GDP (PPP) by country, %

3% 3% 100% 100%
5% 8% 3% 7% 6%
3% 4%
5% 6% 4% 15%
3% 6%
3% 6% 10%
21% 8% • Vietnam
19% 7% 11%
22% 15% 9% • Philippines
32% 13%
20% 30%
25%
12%

7%

69% 67%
63%
52% 52%
45% 46%
41%

2016 2017 2018 2019 2020 2021 2022

Thailand Malaysia Vietnam Philippines Singapore Indonesia GDP (PPP) 2022e

Source: Cento research, 2022 GDP (PPP) is based on IMF estimation. © 2023 Cento Ventures 13
HALF A DECADE OF INVESTMENT INTO FINANCIAL INFRA UPGRADE
DIGITAL FINANCIAL SERVICES CAPTURE 43% OF REGIONAL TECH FUNDING

• The surge of investment into digital financial services tracks rapid upgrades to regional payment infrastructure and regulations, various bank charters available to tech
companies, and existing digital platforms looking to embed financial services.

Financial Services as % of VC capital invested and # of deals Capital invested by sectors, top five, 2022, $ M and %

% of Deals % Capital invested

50% Financial Services

45% 43% $3,696 (43%)
40% 3%
35% Retail
35 % 6%
$2,074 (24%)
30% 3% 43%
25% 24%
25 %22% 22% 4%
Business Automation
18%
20%
$499 (6%) 6%
15% 20%
15%
11%
10% Logistics
5% $379 (4%) 24%
0%
Healthcare
2018 2019 2020 2021 2022
$298 (3%)

Source: Cento research © 2023 Cento Ventures 14

DIGITAL FINANCIAL SERVICES INVESTMENTS GROW MORE SOPHISTICATED
PAYMENTS VALUE CHAIN REMAINS THE KEY BATTLEGROUND
• Core payments and wealth management value chains continue to contribute half of Southeast Asia's digital financial service investments; focus shifts from subsidy-
driven wallets and first-generation trading platforms to underlying infrastructure upgrades of national payment systems, cross-border settlement facilities, and capital
market platforms
• Private credit markets increasing scale and sophistication reduce the need to use expensive equity for lending activities leading to consumer and business lending
platforms raising less equity capital and forming larger balance sheets (not tracked by this report) instead

Capital Invested by Financial Services Sub-sector, %

3% 3% 4% 100%
7% 4%
6% 3% 6%
10%
5% 6%
5% 9% 9%
27%
27% 3%
18% 11%
11%
5%
7% 8% 7% 13%
13%
10%
15% 22% 21%
2%
54%
44%
32% 31% 30%

2018 2019 2020 2021 2022

Insurance Data Analytics Banking as a Service Diversified Financial Services Lending - Consumer Lending - Business Wealth Management & Capital Markets Core Payments

Source: Cento research © 2023 Cento Ventures 15

SUPER-APPS, ECOMMERCE LOGISTICS, CRYPTO WAVES SUBSIDE
POST COVID RECOVERY IN TRAVEL; SPIKE IN CLIMATE TECH

• Ecommerce platform and local service aggregators search for profitability; ad tech capable of delivering cost-effective campaigns back in demand; subsidies to e-
commerce logistics and fulfilment partners drop off.
• The initial wave of climate tech (1) investment goes to carbon credit exchanges, waste management, and alternative battery solutions.
• Gaming and entertainment investments driven by crypto thesis subside following the decline of GameFi investment wave (2).

Capital invested growth 2022 vs. 2021, top gainers, % Capital invested growth 2022 vs. 2021, top losers, %

669%

179%

81%
$227m
Logistics Entertainment / Multi-vertical
Gaming

Climate Advertising & Travel &

Technology Marketing Hospitality

-62% -62%
-87%

Source: Cento research © 2023 Cento Ventures 16

Note 1: Please see our definition of Climate Technology under our methodology page Note 2: Please refer to further industry research here.
SERIES A VALUATIONS SLIDE BACK TO 2021 LEVELS
SERIES B VALUATIONS SURGE IN H1, DECLINE IN H2
• Southeast Asia valuations continued to grow for most of the year, with Series B valuations reversing in H2 and Series A valuations starting to drop off in certain markets in
late Q4
• Most above-median valuation deals in the Series B category in H1 prominently featured Tiger Global

Median pre-money valuation, $ M, and % change between 2022 H2 vs 2022 H1 2022 H2 Median Valuation vs 2022 H1

Median valuation -38%

$90.0
Pre-A ~0.9X
$75.0

-12% $55.0
Series A ~0.9X
-7%
$22.0 $27.0 $23.0

$6.8 $5.9 $5.5 Series B ~0.6X

Pre-A A B

2021 H2 2022 H1 2022 H2

Source: Cento research © 2023 Cento Ventures 17

SERIES A DEAL SIZE DECLINES SLIGHTLY
SERIES B DEAL SIZE AT HALF OF 2021 HIGHS
• Series B lead investors continued being active through the year while driving valuations down.
• Demand from “follower” investors at the Series B stage weakened, leading to lower average deal sizes – helped by the growing venture debt ecosystem (1).

Median deal size, $ M, and % change between 2022 H2 vs 2022 H1 2022 H2 Median Deal Size vs 2022 H1

Median deal size

-41%

$18.0 Pre-A ~0.6X

$15.0

-9%
$9.0
Series A ~0.9X
-37%
$4.9 $5.0
$4.6

$1.0 $1.0 Series B ~0.6X

$0.6

Pre-A A B

2021 H2 2022 H1 2022 H2

Source: Cento research © 2023 Cento Ventures 18

Note 1: Please refer to Genesis Alternative Ventures / INSEAD GPEI 2022 research for an overview of developments in regional venture debt space
SERIES A REMAINS AVAILABLE ACROSS THE REGION
THE PHILIPPINES SERIES A IN OVERDRIVE

• “Next Indonesia” narrative takes hold in the Philippines

Series A median pre-money valuation by country, 2021 H2 – 2022 H2 $ M

$75

-34%
+29%
$50 $47
$40
+7%
-7% -19% $31 $31
$29
$25 $26
$23 +51% $23 $23
$25 $21
$20 $19 $18 $17
$12
$10
$8

$0
Malaysia Thailand Vietnam Singapore Philippines Indonesia

2021 H2 2022 H1 2022 H2

Source: Cento research © 2023 Cento Ventures 19
SERIES B REMAINS AVAILABLE ACROSS THE REGION
INDONESIA & VIETNAM DRIVE RAPID DECLINES IN SERIES B VALUATIONS

• Series B investment volumes slide gently from the highs of 2021, yet the composition of participating investors changes abruptly halfway through 2022
• Global growth investors “pre-empting” future growth rounds as early as Series B are replaced by regional Series B investors, leading to a re-assessment of valuation
drivers across the board

Series B median pre-money valuation by country, 2021 H2 – 2022 H2 $ M

-64%
$200
$185

$150

$121 -14%
-34%
-68%
$100
+173% $83
$75 $75
$70 $70 $66
$65
-13% $60 $60
$53 $55
$50
$32 $28
$25 $22 $24

$0
Malaysia Thailand Vietnam Singapore Philippines Indonesia

2021 H2 2022 H1 2022 H2

Source: Cento research © 2023 Cento Ventures 20
MEDIAN EXIT VALUATIONS ON PAR WITH MEDIAN SERIES B VALUATIONS
TOP QUARTILE EXIT VALUATIONS ON TRACK TO $ 0.5B MARK

• Median exit valuation reached $88M in H1 2022 but corrected downwards as the full year results came in (similar to 2020).
• The number of distressed exits, discounted secondary transactions and acquihires surged towards Q4 2022, bringing median and bottom quartile exit valuations down.

Exit valuation, bottom quartile, median, top quartile, $ M

$500
$422
$450
+48%
$400 $377

$350

$300
$251
$250

$200

$150
+18%
$100 $89 $87
$75 $46
+20% $53
$50 $30
$24
$5 $5 $6 $11 $10
$0
Bottom-quartile Median Top-quartile

2018 2019 2020 2021 2022

Source: Cento research © 2023 Cento Ventures 21

 2022 SAW THE STRONGEST 12 MONTHS OF LIQUIDITY ON RECORD
RECORD NUMBER OF $500M+ EXIT EVENTS
• 4 liquidity events generating more than $500M in proceeds each: GOTO and BELI IDX IPOs; 2C2P and Coda Payments transactions (previous record held by 2017, with 3
such events being Sea Group IPO, Alibaba - Lazada and Alibaba - Tokopedia transactions).
• 10 liquidity events with known proceeds north of $100M each (previous record held by 2017, with 6 such events).
• ~$ 1B in secondary proceeds from Coda Payments and Dana transactions aside, 2022 saw a rise in smaller secondaries - driving up the number of liquidity events and the
drop in median exit proceeds for secondary deals.

Exit proceeds by year, $ B and deals done, # Median Exit Proceeds by Type
$6.0 110
Thousands

100
100
Trade Exits
$5.0 90
83 $4.6 $ 7.5
80 $5.0
$4.0
$4.0 69 $2.0
55 64 70
62 61 53 $1.9
$1.1$3.2
60
$3.0 $2.9
$3.0
45 $0.9 50
$0.6
$2.4
$0.2 40
Known Secondary
$0.2 $1.8 $1.1
$2.0 30
$1.5 30 $21.0 $20.0
$1.9
$0.4 $1.1 $1.1 $2.4 $1.0 20 $11.0
$1.0 $0.2 $2.0 $0.2
$0.7 $0.8 $0.5 $1.5
$0.9 10 $ 1.0
$0.3 $0.8
$0.4 $0.4 $0.5
$0.2 $0.3
$0.0 0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

# of Deals IPO Known Secondary Trade Exit 2019 2020 2021 2022

Source: Cento research © 2023 Cento Ventures 22

IPOS DELIVERED HALF OF 2021-2022 EXIT PROCEEDS
SUBSEQUENT SHARE VALUE LOSSES CLOSE IPO WINDOW IN 2023
• Most of Southeast Asia's largest digital companies listed since 2021 halved their share prices within the first ~6 months.
• Holders of regional tech stocks face significant exit hurdles due to limited market liquidity compared to global tech leaders.
• IPO as the primary rationale for mega deals is no longer in place.
• SE Asia companies valued above $1B privately and reported as preparing for IPO include Nium, Traveloka, Carsome, Finaccel, Carousell, Momo, Akulaku
and VNG (limited scope listing done in Jan 2023).
Public Indexes
Recently listed SE Asia technology leaders’ share price performance, end of Q1 2023, % Dec 30th 2021 vs Dec 30th 2022

+ 10%
S&P 500 -19%
IPO +2%
SHARE PRICE

- 10% STOXX Europe 600 -13%

- 20%

MSCI China Index -22%

at the end of the first trading day

- 30%
% share price as vs. the price

- 40%
-45% NIFTY 50 +4%
- 50%

- 60%
-64%
FTSE ASEAN All Share -9%
- 70%
-71%
-79% MSCI Emerging
- 80% -1%
Markets Latin America
- 90%
MSCI EFM Africa Top
-6%
- 100% 50
Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23

Dow Jones MENA -7%

Source: Cento research, Google Finance, Yahoo Finance. © 2023 Cento Ventures 23
SECTORS DRIVING EXIT PROCEEDS
FINANCIAL SERVICES, MULTI-VERTICAL, RETAIL

• Digital financial services contributed 46% of the exit proceeds, primarily from the digital payment value chain
• The multi-vertical is driven by GOTO’s 2022 IPO

Exit proceeds by sector, top three, 2022, $ M and %

Core Payments

Retail (96.8%)

$998 (22%)
Lending - Consumer
22% (1.7%)
Multi-vertical 46%
$1,100 (24%)
96.8% Insurance
(1.3%)
Financial Services 24%

$2,087 (46%)
Wealth Management
(0.5%)

Source: Cento research © 2023 Cento Ventures 24

SOURCES OF LIQUIDITY VARY ACROSS MARKETS
NARRATIVES EMERGE AROUND “IPO” VS “TRADE SALE” MARKETS

• Singapore and Malaysia see more variety in paths to liquidity.

• Public market liquidity is present in markets with well-understood global narratives (Indonesia, Vietnam), developed capital markets, or both (Singapore).
• Thailand, despite advanced domestic capital market infrastructure, missed the IPO window of 2018-2022.
• Local digital strategics remain a constant (the Philippines market skewed towards global acquirers by one outlier transaction).

Exit Proceeds by exit channel and market, 2018 – 2022, %

100%
10% 4% 3%
20%
27% 26%
26%

43%
57%
48%

37%
60% 7%
5%
68% 5% 70%
13%
30%
45% 7%
34%
20% 18%
12%

Regional Thailand Malaysia Philippines Vietnam Singapore Indonesia

Digital Companies - Global Digital Companies - Southeast Asia Non-digital Companies Financial Investors Public Markets

Source: Cento research © 2023 Cento Ventures 25

A DECADE IN REVIEW
MALAYSIA’S EXIT-TO-INVESTMENT RATIO STANDS OUT
• Most Southeast Asian markets have generated proceeds of 0.2X to 0.35X of the cumulative capital invested into “their” tech companies between 2013 and 2022.
• Erstwhile Singaporean and Malaysian companies have contributed the most to the regional company category (1), with Indonesia and Thailand adding one strong
contributor each.
• Malaysia boasts the strongest exit-proceeds-to-investment-taken ratio.

Exit proceeds vs
SE Asia capital invested vs exit proceeds, 2013-2022, by year, $ B
capital investment ratio

SE Asia Total $20.8

$56 0.37X

$1.7 1.21X
Malaysia
$2.1
$16.8 0.43X
Regional*
$7.3
$20.8 0.34X
Indonesia
$7.0
$9.7 0.30X
Singapore
$2.9
$1.8 0.26X
Philippines
$0.5
$1.9 0.23X
Thailand
$0.4
$3.3 0.19X
Vietnam
$0.6

$0 $5 $10 $15 $20 $60

Capital Invested Exit Proceeds

Source: Cento research © 2023 Cento Ventures 26

Note 1: “Regional” companies are defined as companies deriving most of their revenue from Southeast Asia and less than half of their revenue from any given regional market.
METHODOLOGY

© 2023 Cento Ventures 27

• Key premises
Numbers and conclusions in this study rely upon a company’s reported last round valuation. At best
this is a partial reflection of a company’s true value. To all in our audience who appreciate the
importance of financing terms over headline valuations, and who recognise that a more complete
understanding of any underlying business is helpful, we apologise. To atone for this
oversimplification, we’d like to take this opportunity to give a commendation to the great work
being done by a few in academia who probe deeply into the contradictory nature of how tech
valuations are reported, and produce splendid research that will one day help us as an industry
upgrade our reporting systems and, perhaps, change how tech company narratives are formed. In
this report, our recognition goes to Will Gornall and Ilya A. Strebulaev (professors at the Sauder
School of Business at the University of British Columbia and the Stanford Graduate School of
Business, respectively) for their comprehensive work on “Squaring Venture Capital Valuations with
Reality”, available here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2955455 and with
media coverage http://nymag.com/intelligencer/2018/11/fake-unicorns-are-running-over-the-
venture-capital-industry.html
• Geographies covered
This iteration of our report does not make an attempt at covering some of the newer digital
ecosystems within ASEAN beyond the customary six countries, or the developments in countries
starting to gravitate towards SE Asia venture scene such as Pakistan, Bangladesh, Sri Lanka, Hong
Kong, and Taiwan.
• Data sources and completeness
Our data is compiled from a number of sources, although we primarily rely on public press
announcements and community disclosures from the companies and their investors. Our team
researches the validity of claims to an extent possible and supplements incomplete information
with insights from our own industry sources and, on occasion, somewhat educated guesswork.
In this report, we analysed and verified over 6,000 financing and liquidity events. Inevitably, a few
large deals would avoid detection on occasion of exceptionally secretive nature of the transaction
or due to the methodology we apply. It is also our impression that our pre-Series A deals data in the
region is far from exhaustive due to a sheer volume of deals in $ 10 - 250K range happening in the
market – while total dollar value of inflow and outflows is unlikely to be impacted heavily, do take
our “number of deal” assessments for pre-Series A with a large handful of salt. Finally, as new facts
come to light and as erstwhile announcements are verified, we adjust our databases retroactively,
leading to mild inconsistencies between various versions at the same period.
• Category definitions and company profiles include
This report aims to describe the state of financing and liquidity generated by companies focused on
digital technology-driven opportunities in Southeast Asia. The exact definition of what a digital
technology-driven opportunity constitutes is a subject of much debate.
While leaving biotech, new materials and space tech out is relatively straightforward (but including
software and digital services enabling these industries), telling an offline company with digital
elements apart from a business where value creation is primarily tied to either its technology core
or its digital distribution is anything but simple. We have generally taken a view that if something
is valued as a technology company, we can trust its investors that it probably is.
At the same time, we also endeavour to exclude categories that, while adjacent to digital economy,
tend to attract non-VC capital to a degree where their financing / liquidation events interfere with
the signal from the rest of the ecosystem (notably, excluding the companies with valuations
determined by token economics).
Furthermore, we currently do not include traditional TV stations, content producers, sports and
entertainment brand, non tech-enabled consumer brands, telcos, IT infrastructures and system
integration companies as well as holding level entities that buy or develop technologies in addition
to their core business into our reporting.
© 2023 Cento Ventures 28
• Company classification
Country of origin:
Determined by the country in which the company was founded, and has its primary
base of operation (defined in terms of revenue, if known). At the (subjective) point
where the company has both operations in multiple countries in Southeast Asia and
substantial revenues generated in multiple countries, then it may be classified as
Southeast Asia / regional in the country of origin.
Sector classification:
Cento’s definition of the industry segment in which the company’s primary business
focus sits. A full taxonomy of sector allocation is listed below. In cases where a
company focus on multiple sectors with different units generating thought to
generate substantial revenue, then multi-vertical category is used. We also note that
a company’s sector may change as the company progresses; the company’s sector is
evaluated according to the primary business focus during the event of financing.
Ø Advertising & Marketing Technology: companies that facilitate the acquisition of
customers including coupons and rebates, price comparisons and affiliate
marketing
Ø Business Automation: tools that automates non industry-specific business
activities such as CRM, ERP, workplace communication tools, etc.
Ø Climate Technology: includes recycling, carbon credit settlements, and carbon
capture. Companies from other sectors contributing to climate improvements,
such as real estate energy management or agriculture value chain, are
categorised under their respective sectors.
Ø Comms & Communities: social networks and dating
Ø Education: provision of goods and services revolving teaching and learning,
including adult training and education
Ø Employment: companies that manage and facilitate the management of
employees including onboarding, benefit, payroll, etc.
Ø Entertainment/ Gaming: gaming development, distribution and publishing
Ø Entertainment/ Non-gaming: content production and news aggregation
Ø Financial Services: companies that apply technology into traditional banking
services i.e. payment, lending, wealth management, etc.
Ø Healthcare: provision of goods and services revolving around medical and
wellness services including, but not limited to, e-pharmacy, medical tourism and
telehealth
Ø Local Services: platforms that connect local merchants/ service providers to
consumers in an urban setting including, but limited to, ride-hailing services, local
search and directory and food delivery
Ø Logistics: companies that facilitate the movement of goods including, but not
limited to, acquiring, storing and transporting of goods
Ø Multi-vertical: our name for diverse digital businesses such as Grab & Goto, often
called ‘super-apps’
Ø Real Estate and infrastructure: construction, buying & selling and management of
real estate assets, including the tools facilitating those activities
Ø Retail: companies that sell or rent goods using internet technology, including
tools that facilitate those activities e.g. Store-front management software, POS
systems, etc.
Ø Travel: tourism and hospitality
© 2023 Cento Ventures 29
 Sector classification – financial services:
Ø Banking as a Service: companies that digitise basic banking functions. This
includes digital banks that is licensed to provide financial services directly to
clients, software layers that help banks communicate to external software, and
companies that supplement banks’ process such as debt collection.
Ø Core Payments: companies that enable a transfer of cash/cash equivalent
between two or more parties, including wallets and remittances.
Ø Data Analytics & Scoring: the utilisation of data to predict the credibility of
consumers or businesses.
Ø Insurance: companies operate or assist in the distribution, product design, and
underwriting of insurance products.
Ø Wealth Management & Capital Markets: companies engage in asset allocation to
generate higher returns, including platform that enable clients to manage their
assets and those that do so on the clients’ behalf.
Ø Lending – Consumer / Business: Companies that facilitate individuals’ or
businesses’ exchange of cash/cash equivalent for a secured and unsecured
repayment contract.
Ø Diversified Financial Services: companies that generate businesses from multiple
financial products. This includes wallets that provide other financial services and
multi-product financial comparison platforms.
• Currency
$ refers to United States Dollar ($) unless otherwise stated.
• Deal definitions
Deal stage:
Each series definition is determined as follows:
Ø Pre-Series A: Purpose of investment tends to be building the idea/team; in some
cases, the company generates revenue.
Ø Series A: The product has been built and proven via initial but repeatable revenue.
Investment purpose tends to be establishing domestic position, and sometimes
scaling regionally.
Ø Series B: Investment purpose tends to be building scale, either domestically or
regionally.
Ø Series C+: any amount invested later than Series B. Series C, Series D, later series
investments, pre-IPO, mezzanine.
We have also estimated a particular company’s valuation through a recent
substantial financing or liquidity event and known business developments
Deal type:
We focus mainly on venture capital deals – investments made by fund entities into
early stage startups, whether they are from independent funds of corporate venture
capital entities. This is a subset of the total number of early stage tech deals in the
region.
We separate the following from most of our data, apart from the ‘total capital
invested and total deals done’ chart:
Ø Corporate transfers: events where a corporate entity funds an entity in the region
in which it owns a majority or significant minority stake (e.g. Rocket Internet,
Lippo Group)
Ø Project financing: A deal which was a partnership for an identified purpose – e.g.
Grab-Honda.
Ø Non-Southeast Asia deals: e.g. India and China focused companies that happen to
use Singapore for their corporate domicile.
© 2023 Cento Ventures 30
Contact

www.cento.vc