ASEAN fintech funding dropped 36 percent to around US$835 million in the first nine months of 2025, but Singapore continued to draw the lion’s share of capital and strengthened its role as the region’s hub.
Funding drops to nine-year low as investors turn cautious
The Fintech in ASEAN 2025: Navigating the New Realities report, released by UOB, PwC Singapore and the Singapore Fintech Association, shows that the region recorded its lowest funding level since 2016 and the fewest deals in a decade.
Investors remained cautious amid market volatility and shifted their focus toward companies that could demonstrate clearer progress on profitability and scale.
Deal activity fell sharply across the six largest ASEAN economies, with only 53 transactions in the first nine months of 2025.
Despite the slowdown, the average deal size increased 42 percent to US$21.4 million as capital concentrated around firms with stronger fundamentals.
Late-stage companies captured 67 percent of total funding, a 24 percentage point increase from last year, supported by three mega deals amounting to nearly US$450 million.
Average late-stage deal values rose to about US$112 million, reflecting continued investor confidence in firms with established revenue models.
Singapore widens its lead while regional markets face pressure
Singapore remained the region’s strongest performer. It attracted more than US$725 million, or 87 percent of ASEAN’s total funding, up from 57 percent last year.
The country also accounted for more than half of all deals, driven largely by activity in blockchain for financial services and investment technology.
Pre-series and early-stage rounds made up most of Singapore’s deal count, indicating ongoing opportunities for emerging players.
Eight of ASEAN’s ten most-funded fintechs this year are based in Singapore, including five late-stage firms.
Conditions were tougher elsewhere. Indonesia’s share of funding fell from 20 percent to four percent, and its deal count dropped from 23 to 10.
The Philippines matched Indonesia with five deals, including an early-stage round for lending platform Salmon, which secured ASEAN’s sixth most funded deal.
Malaysia, Thailand and Vietnam together accounted for less than 10 percent of regional funding and saw a noticeable decline in activity.
The report notes that ASEAN’s fintech sector is shifting toward more disciplined growth, with realistic valuations, tighter cost management and a stronger emphasis on long-term sustainability.
Despite the downturn, the region continues to test fintechs on their ability to sustain innovation in a volatile and uncertain environment.
Cross-border collaboration and regulatory alignment remain important to supporting long-term competitiveness.
Janet Young, Managing Director and Group Head, Channels & Digitalisation and Strategic Communications & Brand, UOB, said,
“As ASEAN’s fintech sector recalibrates, innovators continue to show remarkable resilience. The rise in average deal size and strong performance of late-stage companies underscore investor confidence in the region’s long-term potential as a thriving digital economy.
We believe that innovation is the key to driving sustainable growth and financial inclusion. Guided by our commitment to building the future of ASEAN, we will continue to foster collaboration, support the catalysing of new solutions and empower businesses to seize the opportunities in the digital future.”
Holly Fang, President, Singapore Fintech Association, said,
“Singapore’s position as the region’s leading fintech hub reflects the strength of its collaborative ecosystem, where regulators, financial institutions, and innovators work together to drive meaningful change and sustainable growth.
The sector’s focus on sustainable growth and profitability marks an important step in the maturation of the fintech ecosystem, where firms are being tested on their ability to sustain innovation amid an increasingly volatile and uncertain environment.”
The Fintech in ASEAN 2025: Navigating the New Realities report was launched at the Singapore Fintech Festival.
