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Southeast Asia fintech opportunity

Source : Bidness etc

Alibaba Group Holding Ltd.’s financial affiliate is planning to purchase a 20 percent stake in Thailand’s Ascend Money in a bid to seize Southeast Asia fintech opportunity. Investment in fintech startups in Asia reached US$797 million in 2014.

An investment into Ascend Money, parent of True Money and Ascend Nano, would help Ant Financial expand its online payments and small loans business in Southeast Asia.

Ant Financial, which is said to be valued at about $60 billion, is following billionaire Ma’s aspirations for global expansion. The Ascend Nano unit is a microfinance and personal loans provider with staff throughout Southeast Asia. True Money provides cash cards and electronic wallets, and holds financial-services licenses in key Southeast Asian markets. The division’s goal is to spread ecommerce and electronic payments services to places where many users lack bank accounts such as Myanmar and Indonesia. This could pave the way for Alipay to dominate Southeast Asia’s payment problem.

A version of this appeared in Bloomberg on June 18. Read the full article here.

Southeast Asia’s internet economy is expected to grow to $200B by 2025, according to a new report by Google and Singaporean sovereign wealth fund Temasek. The report focuses on the $200 billion digital opportunity in Southeast Asia. Cultivating from 4 independent data sources, the two companies identified expected values  of different start-ups and sectors, and made calculated predictions about challenges in the ecosystem. Read on for key takeaways:

e-conomy prediction for 2025

e-conomy prediction for 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Takeaways

  • Southeast Asia to be the fastest growing internet market in the world. With 480m users by 2020
  • Indonesia is the fastest growing nation in the world
  • Southeast Asia’s internet economy is ready to take off: 124k users coming online every day for the next 5 years
  • Southeast Asia currently houses 700m Mobile connections. This makes up 130% of the population
  • The ecommerce market is split into two key segments: First- hand goods and Second-hand goods (See figure 2)
figure two: ecommerce segments

Figure 2: Ecommerce segments

  • Investment flow is growing, but activity is concentrated to Singapore and Indonesia, with the majority of funding going to a few prominent startups.
  • A total of $40-$50B of investments must be injected over the next 10 years to make Southeast Asia a $200B internet economy in 2025.
  • Investment levels in India are higher than Southeast Asia. SEA had a GDP of $2.4T while India had $2.1T in 2014, it received less than a fifth of the funding.
  • Southeast Asia will face four key challenges (See figure 3).
ecommerce challenges for the region

Figure 3: Ecommerce challenges for the region

To access the whole report, click here