In a striking contrast to the global economic slowdown, a new report reveals that funding for direct-to-consumer (D2C) startups in Southeast Asia has surged by an impressive 208%. The sector attracted US$32.5 million in 2024, a significant jump from the US$10.6 million recorded in 2023.
This growth stands out against a backdrop of a 55% decline in overall tech funding within the region and a 25% drop in global D2C funding, which hit a five-year low. While Southeast Asia’s current D2C funding remains below its 2022 peak of US$128 million, this rebound signals the region’s increasing prominence as a D2C hub.
Seed-stage funding witnessed a notable increase, climbing to US$3 million from US$740,000 in the previous year. Late-stage funding also made a comeback, reaching US$19.5 million after a dry spell in 2023, while early-stage funding remained stable at US$10 million.
Beauty and fashion startups emerged as key drivers of this investment, particularly in Singapore and Indonesia, with beauty brands attracting over US$40 million in the past two years. This countercyclical growth suggests the resilience of the D2C model in Southeast Asia, offering investors clearer paths to profitability and direct consumer engagement amidst economic uncertainty.