Southeast Asia Tech Investment – FY 2020

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.
Three main principles guide our investments:
- Sectors ready for digital transformation
d
- Founders with great ambition
We look for founders who want to build large digital companies that are
leaders in their category. In a fragmented region, such as Southeast Asia,
operating across multiple countries often essential. Our preference is for
business models that are light on physical assets and where the founders
have ambitious plans to scale internationally.
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.

There is an excellent opportunity for technology to solve some of the Learn more about us at cento.vc or our Facebook or Linkedin pages.
inefficiencies present in emerging markets. However, technology alone does
not digitalise industries. 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. This helps
us establish a solid relationship with the founder, and to influence company
strategy. We only invest once a company can show that a market exists for
its product and that it is ready to use extra capital to scale.

2
INTRODUCTION
How was Southeast Asia tech investment during COVID-19? Another ‘normal’ year?
Total investment in 2020 matches 2019
2020 marked our memories with its extraordinary challenges for individuals,
families, and organisations. Yet, it was also a year of fortitude and resilience.
From data in the first half of the year, we had expected to see a slowdown in
technology investment resulting from the COVID-19 related restrictions.
Overall, 2020 looks like a very ‘normal’ year for SE Asia tech investment. The
total number of deals fell by 8%, but the amount of capital invested was about
the same as in 2019, at just over $8B. We tracked 333 deals in the second
half of 2020, almost identical to the same period in 2019, and higher than in
2018. The region’s leading tech companies continued to raise large rounds,
with ‘mega-deals’ accounting for just over half of total investment, similar to
2019.
Stable round sizes
Median round sizes were stable with Pre-A rounds of $0.3M, Series A rounds
of $3M, and Series B of $10M. We saw a slight reduction in the share of
early stage investment (those sized at less than $3M), with 238 deals in 2020
compared to 281 in 2019.
d
Indonesia and Singapore regain dominance
2020 confirmed the reversion to the typical geographic distribution of deals.
70% of capital was invested in Indonesian startups, and Indonesia and
Singapore startups combined accounted for 64% of the total number of deals
done.
Sector diversification continues
Over half of tech investment flowed to the super-app companies (our ‘multi-
vertical’ category) and to online retailers – totalling just over $4B in 2020.
Other sectors that saw rising interest included Payments, Logistics and Local
Services.
Investment into payments & other financial services startups now forms the
largest sector after the multi-vertical one. Sometimes this intersects as the
super-apps build their own financial services arms. At present half of
investment in this sector goes into payments startups, with the rest spread
across the other types of fintech. We have added a breakdown of investment
within the fintech sector so we can track its evolution from payment
processing and lending, to include a wider range of financial products.
3
INTRODUCTION
d
New unicorns Looking ahead to 2021

2020 saw JustCo included in Southeast Asia’s companies valued over $1B.
We also saw expansion of the group of startups that have exceeded $100M
in valuation, adding more than 20 names that included Stashaway, Waresix,
Mekari, Shopmatic, Sunday.
Decline in exits
Tech investment may not have reached any new heights in 2020, but startups
in the region have risen to the various challenges and proven they can find
new opportunities to grow and attract new investment. We anticipate that if
the pandemic recedes throughout 2021, we will see resumed growth in VC
investment alongside some notable exits, by the time our next report is
published in H1 2021.

As noted in our report for the first half of the year, liquidity events are where Thank you
2020 differed most from previous years. While the number of exits ended up Mark Suckling, Laphat Tantiphipop
on par with 2018, the proceeds generated fell significantly to under $1B. We
think it’s fair to assume that some larger potential deals have been delayed,
as the sort of extensive due diligence required by international acquirers was
harder to accomplish during this period of travel restrictions.

4
$8.2B INVESTED IN 2020
•
•
SE Asia maintained a similar level of investment to 2019
# of deals dropped slightly at -8% in the same period
d
Southeast Asia technology investment
Capital invested, $B and deals done, #
$ 1
0 4 0

landscape remained resilient in 2020. COVID-

372
19 shown negligible impact on the overall
investment amount and deal activities,
$ 9

332 333 3 5
0

$ 8
312 dropping slightly from 2019 at -3% and -8%.
3 0

Familiar names continue to take up the

$ 7

226
2 5
0
majority of the capital invested. Grab, Go-Jek
224 222
and Go-Pay, Bukalapak, Traveloka alone
$ 6

205 209 208 210

$ 5 2 0
accounted for almost 50% of the year
investment volume.
156
$ 4

1 5
0

$ 3
110 110 Notes:
1 0 The numbers in page 5-10 include all events
$ 2
related to technology investment albeit
54
43 considered not relevant to venture space, e.g.,
ICOs, project financing, corporate subsidiary
5 0

$ 1

$0.3 $0.2 $0.5 $1.0 $0.9 $1.2 $1.6 $2.1 $1.4 $4.3 $8.8 $3.8 $6.4 $2.1 $5.9 $2.3 investment. Further analysis only includes
$ - -

events that are standard equity-based venture

2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 investments in digital companies within our
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
framework.
Capital Invested # of Deals

Source: Cento research

5
$4.7B INVESTED IN >$100M DEALS
>$100M deals accounted for 57% of 2020 investment with only a 0.5% YoY decrease
d
Mega-deals (those with the value of deals
Capital invested, $B and deals done, #
sized above $100M) remained a sizable
$ 1
0 .0 4 0

372
$ 9
. 0
$8.8 contributor to the region’s total investment
332 333 3 5
0

volume. This deal size accounted 57% of

$ 8
. 0
312 investment proceeds in 2020, compared to
3 0
56% in 2019, and 78% in 2018.
$ 7
. 0

$6.4
$5.9
$ 6
. 0 226 224 222
2 5
0

The mega-deals investment is similar to 2019

205 209 208 210 level, while smaller deals show a 6% decline
$ 5
. 0
$7.5 2 0
from their 2019 peak.
$4.3
156 $3.8 $4.4
$ 4
. 0
$3.8
1 5
0

$ 3
. 0
110 110
$3.2 $2.3 $2.3
$2.1 $2.1 1 0

$1.6 $0.4
$1.4 $0.9
$ 2
. 0

54 $1.2
43 $1.0 $0.9 $1.5
$0.9 $0.6
5 0

$0.5 $0.7 $2.0 $2.1

$1.7
$ 1
. 0

$0.3 $0.2 $0.6 $0.3 $1.3 $1.5 $1.4

$0.8 $1.2
$0.1 $0.2 $0.4 $0.6 $0.6 $0.7 $0.6
$ -
$0.3 $0.1 $0.3 -

2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
$100M or smaller deals $100M+ deals # of Deals

Source: Cento research

6
$3.5B INVESTED IN <$100M DEALS
•
•
>$50M-$100M deals see record investment and strongest growth at 26% YoY
>$10M-$50M see the sharpest decline, dropping 17% from 2019 peak.
d
Mega-deals often attract the majority of
Capital invested, $B and deals done, #, excluding $100M+ transactions
$ 2
. 5 4 0

367 investment proceeds as well as media

headlines. However, smaller deals that occur
330 328
3 5
0

regularly can be a better indicator for the

$ 2
. 0

304 ecosystem’s health compared to the sporadic

3 0 outsized deals that fluctuate the trend.
$0.6
$0.5

$0.4
2 5
0

In 2020, the >$50M-$100M deals received

$ 1
. 5

224 220
208 203 204
214 record investment volume at $1.1B, a 26%
202 $0.3
2 0
increased from 2019. >$10M-$50M see a less
$0.5 encouraging outcome with a 17% YoY
$0.9
$ 1
. 0
153
$0.6 $1.1 decrease to $1.5B. Investment into $10M
$0.4
deals and smaller remain stable at ~$1B per
1 5
0

$0.8
$0.8
109 107 year.
$0.3 $0.4
$0.1
1 0

$0.1
$ 0
. 5
$0.1 $0.4 $0.4
$0.4
53 $0.3 $0.3
43 $0.3 $0.3
$0.2 $0.6 5 0

$0.4 $0.5 $0.5 $0.5

$0.1 $0.1 $0.1 $0.3 $0.3 $0.3 $0.3
$0.1 $0.03 $0.2 $0.2 $0.2
$0.2 $0.1
$ -
$0.1 $0.1 -

2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
≤$10M >$10M- $50M >$50M - $100M # of deals

Source: Cento research

7
 $50M+ DEALS GROW, SMALLER DEALS DECLINE
d
$0.5M or smaller deals $0.5M+ to $3M deals $3M+ to $10M deals

$ 6
0
281 3 0 $ 4
0 0 2 5
0 $ 8
0 0 1 4
0

214 207 116

238 $ 3
5 0 $ 7
0 0

220 104
1 2
0

$ 5
0 2 5
0

2 0

$ 3
0 0 $ 6
0 0

1 0

145 145 138

163 162 135
$ 4
0 2 0

$ 2
5 0 $ 5
0 0
75
146
1 5
0

62
8 0

114
$ 3
0 1 5
0 $ 2
0 0 $ 4
0 0

1 0
48 6 0

63
$ 1
5 0 $ 3
0 0

$ 2
0 1 0

33
26 4 0

40
$ 1
0 0

37 $ 2
0 0

12
5 0

$ 1
0 5 0

2 0

$ 5
0 $ 1
0 0

$9 $26 $48 $36 $30 $28 $49 $42 $50 $82 $217 $196 $217 $220 $337 $315 $65 $167 $197 $321 $347 $461 $702 $599
$ - 0 $ - 0 $ - 0

2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020

$10M+ to $50M deals $50M+ to $100M deals $100M+ deals

74
14 14
$ 2
, 0 0 8 0 $ 1
, 2
0 0 1 6 $ 1
2 ,0 0 1 6

69
$ 1
, 8
0 0
13
12 12
7 0 1 4 1 4

$ 1
, 0 0 $ 1
0 ,0 0

$ 1
, 6
0 0

6 0 1 2 1 2

47
$ 1
, 4
0 0

$ 8
0 0 $ 8
, 0 0

8
5 0 1 0 1 0

$ 1
, 2
0 0

34 7 7
6
$ 1
, 0 0 4 0 $ 6
0 0 8 $ 6
, 0 0 8

$ 8
0 0 26 26 5
4
3 0 6 6

$ 4
0 0 $ 4
, 0 0

$ 6
0 0

11 2 2
2 0 4 4

6
$ 4
0 0

1 0
$ 2
0 0

1 1 2
$ 2
, 0 0

1 2

$ 2
0 0

$126 $223 $607 $673 $727 $1,186 $1,790 $1,487 $100 $165 $152 $100 $667 $891 $870 $1,092 $112 $815 $928 $2,359 $3,743 $9,756 $4,759 $4,734
$ - 0 $ - 0 $ - 0

2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020
Source: Cento research
Capital invested, $M
Deal #
8
SE ASIA SHOWS MOST RESILIENCE AMONG EMERGING MARKETS
d
% of VC capital invested and deals done by region, 2020 vs. 2019
The economic impact of COVID-19 on
different startup ecosystems varied
significantly. Startups investment in developed
markets experienced robust growth. The US
and EU both received a record investment
24%
amount in 2020.
13% 15%
0.4% 3% 6% -3% -0.3%
Among emerging markets, Southeast Asia
Africa India China SE Asia US EU experienced the least fluctuating impact. The
region sees a minor overall decrease,
-20% -8%
compared to other markets that see a sharp
-31% decline in either the investment volume or
-38% number of deals done.

Notes:
The denominators to both the capital invested
and the number of deals in each region are
based on its respective 2019 numbers.

Change in Capital Invested Change in # of Deals

Source: Cento research

Pitchbook - European Venture Report 2020
NVCA – Venture Monitor 2020
KPMG - Venture Pulse APAC Q4 2020
Baobab - Africa Venture Capital and Start-up Funding 2020
9
DEALS SIZE AND VALUATION AT EACH STAGE ARE STABLE
d
Deals done by series, # Median deal size by series, $M

$10 $10
$10
51 $8
$8
$7
45
46
$4
43 $3 $3.0 $2.8
165 $2.0 $2.3
$1.7 $1.8 $1.5
$1.0
$0.5 $0.2 $0.2 $0.3 $0.3 $0.3 $0.3 $0.3
153
14
25 20 2013 2014 2015 2016 2017 2018 2019 2020
33
24 32
41 Median valuation by series, $M
110 23
$43

102 145
126 $34

393 $28 $28 $27

9
11
339
55 $21 $20
260
201 $12 $12
3
6 187 180 $10 $10
$7 $8
22 122 $6 $6
$5 $3.0
$1.8 $1.7 $2.0 $2.6 $2.3 $2.7
58 $1.0

2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020

Pre A A B C+ Pre-A A B

Source: Cento research

10
 2X INVESTMENT IN PAYMENTS, LOGISTICS & LOCAL SERVICES
•
•
Payment rose to the 3rd most funded sector.
Travel investment dropped unsurprisingly. More surprising is the decline in healthcare and education.
d
Capital invested by sector, $M

2019-2020 The full-year COVID impact on each sector

2013 2014 2015 2016 2017 2018 2019 2020
US$M) Change shows both expected and surprising results.
al Multi-vertical - 52 346 770 2,550 4,535 3,429 3,114 -9% Travel is heavily hit, dropping almost 50% YoY
and would be as much as 95% if not for
Retail 71 182 210 837 955 1,915 773 939 21%
Traveloka $250M round. Healthcare and
Payments 19 26 86 115 117 473 413 801 94% education did not enjoy a continual growth
Logistics 1 15 34 64 136 129 221 542 145% from their 2019 record despite much
Services Financial Services 37 7 139 138 189 418 534 465 -13% anticipation.
Hospitality Travel & Hospitality 34 13 78 176 392 52 528 275 -48%
ices Local services 9 376 442 826 50 92 115 244 112% Many of the fundamental internet economy
e & Infrastructure
Real estate & Infrastructure 4 2 9 17 41 517 167 160 -4% sectors received a positive boost. Payment,
logistics, and local services doubled their 2019
Automation
Business Automation 6 13 29 29 44 140 168 145 -14%
financing. Retail grew slightly at 21%. Multi-
e Healthcare 0 12 26 37 62 12 224 114 -49% vertical companies, which operate across
g & Marketing
Advertising & Marketing 8 22 122 21 82 37 144 112 -22% many of these sectors, see minimal changes.
nt Employment 3 4 8 11 22 24 40 54 37%
ment / Non-Gaming
Entertainment / Non-Gaming 1 4 52 84 349 17 130 43 -67% Notes:
Education 0 7 12 9 16 61 162 29 -82% For a detailed definition of each sector, please
ment / Gaming
Entertainment / Gaming 4 8 11 11 5 14 19 22 18% see our methodology slide.
Others - - 1 3 5 - 38 8 -78%
Communities
Comms & Communities 4 23 16 48 1 10 3 3 1%

Source: Cento research

11
 FINTECH ACCOUNTS FOR 20% OF DEALS
•
•
Proportion of Southeast Asia fintech investment is on par with developed markets.
Core payment, lending, and company with multiple financial offerings dominate, but others are picking up the pace.
d
Capital invested by fintech sector, $M Fintech as % of total capital invested and deals done, SE Asia Fintech as % of total capital invested by region, 2020
2018-
2018-
2018 2019 2020 2020
2018 2019 2020 2020
Total
Capital Invested (US$M)
Total 2 4
%

22% 21%
Core Payments* 273 413 678 1,364 2 2
%

Payments

Lending - Business 141 104 171 416 2 0

%

Lending - Business
17% 18%
Multi-Vertical
1 8
%

252 20 136 409

Multi-Vertical
1 6
%

Lending - Consumer 77 176 27 280

Lending - Consumer
13%
1 4
%

Wealth Management
41 67 103 211
& Capital Markets
Wealth Management & Capital Markets 1 2
%

Data Analytics 55 111 21 187 11%

Data Analytic 1 0
%

Insurance 35 38 81 154
30% 18% 13% 5%
Insurance
8 %

2018 2019 2020

EU SE Asia US China
BaaS 17 18 48 83 % of Capital Invested % of Deals
BaaS

* Some companies in the main Payment sector visible in the previous Source: Cento research
NVCA – Venture Monitor 2020
page expanded to multiple verticals or added banking capability; thus, Crunchbase – Venture Report EU 2020
are broken out as such in the fintech subcategory. IT Juzi - 中国新经济创业与投资分析报告

12
 SE ASIA’S TECH LEADERS
• 2020 continues to generate new set of companies valued above $100M, $250M, and $1B d
Regional Indonesia Singapore Vietnam Thailand Malaysia
>$10B

Southeast Asia is home to 9 independent

companies and 5 subsidiaries valued
above $1B (with Sea Group market-cap
>$1B

having reached $50B). However, we

believe a more comprehensive view of the
region’s capability to generate shareholder
value in the digital space is provided by
also accounting for the growing cohort of
Valuation

$100M, $250M, and $500M companies.

>$250M
>$100M

Source: Cento research Publicly-listed company 2020 New Entry

• List of companies are not exhaustive
• Data is based on the latest substantial financings,
liquidity events or known business developments
13
 OTHER $100M+ COMPANIES PRESENT IN THE REGION

Selected $1B+ and $100M+ enterprise value businesses, executed via prior acquisition / non-third party funded subsidiary
d
An overview of the value being
Regional Indonesia Singapore Malaysia Thailand Vietnam Philippines created in the digital space in
Southeast Asian would be incomplete
>$1B

without noting:
Bigo

• A significant and growing set of

digital businesses previously
acquired by or created within larger
companies that are continuing to
grow around their respective
>$100M*

opportunities within Southeast Asia

• A number of overseas players -
Search usually from adjacent markets in
North Asia - focusing on Southeast
Asia as a primary source of growth.
• A number of Southeast Asia-
Select $100M+ enterprise value businesses by global players targeting Southeast Asian market or by Southeast Asia based players originating companies that built their
targeting a global opportunity. domestic advantage into a
significant international footprint
Razer beyond Southeast Asia

Source: Cento research Publicly-listed company 2020 New Entry

* List of companies are not exhaustive

14
 PAYMENT PRODUCES MOST $100M+ COMPANIES WITHIN FINTECH
SE Asia Financial Services and Payment Leaders:
Breakdown of Top Primary Segments with Leaders of valuations above $100M, $250M, $1B
d
Wealth Management &
Multi-Vertical Core Payments Capital Markets Lending Insurance Data Analytics
>$1B
>$250M
>$100M

Source: Cento research Publicly-listed company Non-Fintech platforms

* List of companies are not exhaustive with strong financial components

15
ALL INVESTMENT: INDONESIA IS MAIN FOCUS AGAIN
•
•
Indonesia attracts over 2/3 of capital invested in 2020
Malaysia, Thailand, and Philippines also see an increased allocation of capital.
d
Share of capital invested by country

Indonesia startups regained their share of

2020 70% 14% 5% 5% 4% 2% capital invested in 2020. This is primarily
driven by Gojek investment, with support from
2019 52% 19% 3% 4% 22% 1% an array of mega-deals into companies such
as Bukalapak, Waresix, Kopi Kenangan, and
2018 70% 19% 3% 2% 6% 1% Linkaja.

2017 65% 19% 3% 8% 2%2%

Malaysia, Thailand, and the Philippines also
see an increase in allocation, while Vietnam
2016 65% 16% 7% 6% 4% 2% sees a significant drop in 2020 after its later-
stage companies already closed large rounds
Share of deals done by country
back in 2019.

2020 27% 37% 12% 6% 14% 5%

Notes:
2019 23% 33% 11% 9% 19% 4% The data in this slide excludes companies with
a truly regional footprint (e.g. Grab, Sea
2018 31% 32% 10% 8% 15% 4% Group, and Lazada) and would bias the data if
allocated to a particular country.
2017 30% 34% 12% 10% 8% 6%

2016 28% 31% 12% 11% 8% 9%

Source: Cento research

Indonesia Singapore Ma laysia Thailand Vietnam Philippines Country of origin is defined as where the company was founded
and where it is believed to generate its core revenues

16
FINTECH INVESTMENT: ID MOST CAPITAL. SG MOST DEALS.
•
•
Capital invested: Indonesia still dominate, but other countries are gaining ground.
# of deals: Indonesia see decreasing share, with Singapore becoming more dominant.
d
Share of capital invested by country, financial services sector

Zooming into the financial services and

payment sectors, we observe a different
2020 51% 20% 10% 13% 2% 4%
dynamic compared to the country distribution
of all capital invested. Although Indonesia and
Singapore still hold the first and second place,
2019 33% 19% 4% 43% 1% Thailand and Malaysia fintech companies are
also prevalent with 10% and 13% capital
allocation.

2018 56% 17% 5% 6% 13% 3%

In terms of the number of deals, Singapore
took the lead at 43%, while Indonesia’s share
Share of deals done by country, financial services sector
of deals continues to decrease from previous
years. Other countries are more equally
distributed.
2020 22% 43% 8% 9% 9% 9%

Notes:
2019 32% 30% 7% 7% 13% 12% The data in this slide excludes companies with
a truly regional footprint (e.g. Grab, Sea
Group, and Lazada) and would bias the data if
2018 40% 38% 5% 8% 6% 3%
allocated to a particular country.

Source: Cento research

Indonesia Singapore Ma laysia Thailand Vietnam Philippines Country of origin is defined as where the company was founded
and where it is believed to generate its core revenues

17
 LOWER EXIT PROCEEDS GENERATED IN 2020
•
•
Secondary transactions continue to play a significant role in liquidity generations.
Liquidity from IPO remains limited.
d
Proceeds realised at exit, $M Liquidity events, #

15
$931
$557
1

12
$208 5 2
5
$168
6 14
14 12
5 11
5
$1,883
$378 $9 $35
2
$7
$239
$733 $823 $455

$79
$171 $708 $370 $281 $430 $2,001* $2,423* $456 27 36 56 43 38 43 68 45

2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020
Trade Exit Known Secondary IPO Trade Exit Known Secondary IPO

Source: Cento research

*$1.65B of 2018 exit proceeds accounted for Grab acquisition of Uber SEA entities
$1.7B of 2019 exit proceeds accounted for YY acquisition of Bigo

18
EXIT VALUATIONS ALSO DECLINE
•
•
Top decile exits declined to under $100M
Top quartile valuation fell while median valuation remains at previous year level.
d
Exit valuations, $M

The size of Investment proceeds and valuations

$387
attract attention from the investment and startup
community alike. Nevertheless, we believe a
balanced view of the ecosystem requires us to
also understand the size of return the region
produces.
$311

$266 In 2020, top decile valuation continued to oscillate

between ~$300M and slightly under $100M. Top
quartile valuation fell from the $45M-$55M range,
Top Decile while the median valuation remains at $6M.
Top Quartile
$183
Median Notes:
$135 The data is based on acquisition, secondary, and
IPO exits with known valuation.
$90 $94
$77
$62 $56 $57
$44 $45
$30 $30
$17 $21
$7 $6 $12 $8 $6 $6
$2

2013 2014 2015 2016 2017 2018 2019 2020

Source: Cento research

19
$1M - $50M EXITS GROW
•
•
$1M+ to $5M exits expanded the most, almost doubling it 2019 amount.
Exits above $50M see sharp decline.
d
Liquidity events and proceeds, <$1M Liquidity events and proceeds, $1M+ to $5M Liquidity events and proceeds, $5M+ to $20M

37 37 15 14
20 13
12
28
25
23 13 13 9
20 12 12 8 8
10
14 15 8
4
4

$7 $9 $16 $9 $9 $19 $12 $8 $11 $22 $38 $29 $43 $37 $40 $72 $95 $63 $103 $143 $80 $149 $151 $151

2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020

Liquidity events and proceeds, $20M+ to $50M Liquidity events and proceeds, $50M+ to $100M Liquidity events and proceeds, >$100M

9
6 6
8
5
6 4
5 5 5 5
3 3 3 3 3

2 2 2 2
2
1 1

$70 $150 $189 $176 $195 $148 $277 $291 $67 $239 $220 $163 $175 $271 $404 $221 $843 $543 $620 $2,743 $1,753 $2,097 $176

2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020

Source: Cento research

Amount, $M
Events, #
20
SG STARTUPS GENERATE MOST LIQUIDITY
•
•
Singapore is the major source of liquidity, contributing almost half of the exit proceeds.
Thailand achieved a new record for the share of liquidity generated, 25% in 2020 vs <6% in past years.
d
Share of liquidity proceeds by country

Each country’s dominance in the liquidity

2020 16% 45% 11% 25% 4% proceeds allocation is more dynamic, compared to
the investment proceeds where each country
2019
holds a similar position year over year.
46% 19% 18% 7% 10%

2018 38% 23% 4% 2% 32% 1% The leading country position continues to swing
between Singapore and Indonesia, with Singapore
2017 69% 12% 11% 1% 7%
accounting for 45% this year. Thailand, Malaysia,
Vietnam contest for second place. Thailand took
2020 with 25%. Vietnam took 2018, and Malaysia
2016 22% 56% 11% 6% 5% 1% almost took 2017 and 2019.
Share of liquidity events by country
The distribution of liquidity events is more evenly
2020 32% 30% 16% 14% 7% distributed, with the exception of the Philippines
that did not generate an exit in 2020.
2019 32% 29% 4% 5% 20% 9%
Notes:
2018 33% 15% 9% 11% 25% 7% The data in this slide excludes companies with a
truly regional footprint (e.g., secondary
2017 43% 27% 10% 8% 6% 6% transactions in Grab and Lazada) and would bias
the data if allocated to a particular country.

2016 21% 29% 22% 16% 9% 3%

Source: Cento research

Country of origin is defined as where the company was founded
Indonesia Singapore Ma laysia Thailand Vietnam Philippines and where it is believed to generate its core revenues

21
 RETAIL SECTOR GENERATES MOST LIQUIDITY
•
•
Top 5 sectors accounted for 86% of total liquidity generated.
Namely retail, local services, entertainment, payments, and multi-vertical companies.
d
Share of liquidity proceeds by sector, 2016 - 2020

A quarter of the liquidity generated during the 5

years period of 2016 to 2020 is driven by the retail
sector, with sizable deals such as Alibaba-Lazada
acquisition and multiple secondaries in the region
major eCommerce platforms. Adding local
services, and non-gaming entertainment, the there
sectors accounted for over 60% of the total exit
volume.

Other significant sectors include payment and

multi-vertical companies which together
contributed another quarter of liquidity.
Local services, 19%

Payments, 12% Multi-vertical, 12%

Financial Travel
Services, 3% &
Hospita Other
Real estate lity, 2% s, 2%
&
Infrastructu Business Advertising &
Retail, 27% Entertainment / Non-Gaming, 16% re, 4% Automation, 2% Marketing, 1%

Source: Cento research

*Non-Gaming Entertainment sector includes YY acquisition of Bigo

22
 INVESTMENT COMPANIES ARE A MAJOR SOURCE OF EXITS
•
•
VC, PE, and investment holding companies contributed 40% of liquidity proceeds
Acquisition activities from digital companies outside of SE Asia slowed.
d
Distribution of liquidity proceeds by acquirer type* Distribution of deals done by acquirer type*

1% 1%
4% 5% 3% 4% 5% 4%
9% 3% 8% 8%
12% 12%
17% 20% 21%
23% 7%
21%
27% 27% 22%
31% 40%
30% 20%
15%
58% 28%
37%
64% 29% 21% 16%
27% 29% 19%
19%
22%
70%
86% 64%

58%
16%
20%
53% 49% 52%
46% 46% 43% 44%
42% 40%
30%
22%
18%
12% 12%
2% 5%
2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020

Digital Co - SE Asia Digital Co - Others Tra ditional Co Investment Co Digital Co - SE Asia Digital Co - Others Tra ditional Co Investment Co

*Digital Co – Companies with core business driven by digital technology. Source: Cento research.
Traditional Co – Companies that primarily rely on traditional business models. *The data is exclusive of IPO events.
Investment Co - VC, PE, and investment holding companies.

23
ASIA-BASED ACQUIRERS PREDOMINATE
•
•
Majority of acquisition capital are from outside of Southeast Asia
While local acquirers are the key source for the number of deals done.
d
Top 10 acquirers’ countries of origin, by proceeds, 2013-2020, $M Top 10 acquirers’ countries of origin, by deals done, 2013-2020, #

110

$3,900

$3,258

67

45

$1,158 $1,130 30 29
$1,069 28 28
$822 20 18 17

$258 $192 $182 $170

a
d
sia

A
sia
re

am

lia
s
a

d
sia

ay
A

sia

UK
re

lia

ne

in
an
pa

US
in

an
pa

po
US

ra
po

ay
ne
ra

rw

Ch
n
ay
ne
Ch

pi
Ja

ail

st
Ja

ail

et
a
st
a

al
do

il ip
No
al

ng

Au
do

Th

Vi
ng

Au

Th

M
M

In

Ph
Si
In
Si

Source: Cento research

Other Asia SE Asia Others Based on trade exit and secondary events with known acquirers

24
 MALAYSIA MAINTAINS HIGH RATIO OF EXITS TO INVESTMENTS
•
•
Indonesia absorbed the highest investment amount, but the ability to produce liquidity is to be confirmed.
Thailand and Philippines see an uptick in the liquidity / investment ration, albeit still small in volume.
d
Indonesia Singapore Malaysia

1.1x
$ 6
,0 0 0 0 .3
x $ 1
,6 0 0 1 .2
x $ 6
0 0 3 .0
x

0.2x $ 1
,4 0 0 2.4x
$ 5
,0 0 0 0 .3
x 1 .0
x $ 5
0 0 2 .5
x

$ 1
,2 0 0

$ 4
,0 0 0 0 .2
x 0 .8
x $ 4
0 0 2 .0
x

$ 1
,0 0 0

0.1x
$ 3
,0 0 0

0.1x 0 .2
x $ 8
0 0 0 .6
x $ 3
0 0 1 .5
x

0.4x 0.9x
0.8x
$ 6
0 0

0.2x
$ 2
,0 0 0 0 .1
x 0 .4
x $ 2
0 0 1 .0
x

$ 4
0 0

$ 1
,0 0 0 0 .1
x 0 .2
x $ 1
0 0 0 .5
x

$ 2
0 0

$1,512 $182 $4,833$1,199 $5,630 $746 $605 $647 $1,333 $322 $1,466 $576 $218 $520 $230 $173 $362 $326
$ 0 0 .0
x $ 0 0 .0
x $ 0 0 .0
x

2015-16 2017-18 2019-20 2015-16 2017-18 2019-20 2015-16 2017-18 2019-20

Thailand Vietnam Philippines

0.4x 1.1x
$ 4
5 0 0 .5
x $ 1
6 0 1 .2
x
$ 1
,2 0 0 1 .2
x

$ 4
0 0 0 .4
x

$ 1
,0 0 0
0.9x 1 .0
x
$ 1
4 0

1 .0
x

$ 3
5 0 0 .4
x

0.8x $ 1
2 0

$ 3
0 0 0 .3
x 0 .8
x
$ 8
0 0 0 .8
x

$ 1
0 0

0.6x
$ 2
5 0 0 .3
x

0.2x
$ 8
0 0 .6
x
$ 6
0 0 0 .6
x

$ 2
0 0 0 .2
x

0.1x
$ 6
0

$ 1
5 0 0 .2
x 0 .4
x
$ 4
0 0 0 .4
x

$ 4
0

0.1x
$ 1
0 0 0 .1
x

0.0x
0 .2
x
$ 2
0 0 0 .2
x

$ 2
0

$234 $38 $270 $31 $421 $176 $103 $84 $330 $310 $996 $121 $67 $41 $93 $4 $123 $137
$ 5
0 0 .1
x

$ 0 0 .0
x $ 0 0 .0
x
$ 0 0 .0
x

2015-16 2017-18 2019-20 2015-16 2017-18 2019-20 2015-16 2017-18 2019-20

Source: Cento research

Capital invested, $M
Exit Proceeds Generated, $M
Liquidity / Investment Ratio 25
 d

Methodology
 METHODOLOGY
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.
d
In this report, we analysed and verified close to 3,800 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.
27
METHODOLOGY
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.
d
• Financial Services: companies that apply technology into traditional banking services i.e. lending,
wealth management, etc.
• Healthcare: provision of goods and services revolving around medical and wellness services
including, but not limited to, e-pharmacy, medical tourism and telehealth
• 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

Sector classification: • Logistics: companies that facilitate the movement of goods including, but not limited to, acquiring,
storing and transporting of goods
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 • Multi-vertical: our name for diverse digital businesses such as Grab & Gojek, often called ‘super-
different units generating thought to generate substantial revenue, then multi-vertical category is used. apps’
We also note that a company’s sector may change as the company progresses; the company’s sector • Payments: companies that facilitate movement of capital
is evaluated according to the primary business focus during the event of financing.
• Real Estate and infrastructure: construction, buying & selling and management of real estate assets,
• Advertising & Marketing Technology: companies that facilitate the acquisition of customers including the tools facilitating those activities
including coupons and rebates, price comparisons and affiliate marketing
• Retail: companies that sell or rent goods using internet technology, including tools that facilitate those
• Business automation: tools that automates non industry-specific business activities such as CRM, activities e.g. Store-front management software, POS systems, etc.
ERP, workplace communication tools, etc.
• Travel: tourism and hospitality
• Comms & communities: social networks and dating
• Education: provision of goods and services revolving teaching and learning, including adult training
and education
• Employment: companies that manage and facilitate the management of employees including
onboarding, benefit, payroll, etc.
• Entertainment/ Gaming: gaming development, distribution and publishing
• Entertainment/ Non-gaming: content production and news aggregation

28
METHODOLOGY
Sector classification – financial services:
• 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.
• Core Payments: companies that enable a transfer of cash/cash equivalent between two or more
parties, including wallets and remittances.
• Data Analytics & Scoring: the utilisation of data to predict the credibility of consumers or businesses.
• Insurance: companies operate or assist in the distribution, product design, and underwriting of
insurance products.
• 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.
• Lending – Consumer / Business: Companies that facilitate individuals’ or businesses’ exchange of
cash/cash equivalent for a secured and unsecured repayment contract.
• Multi-vertical: 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 (US$) unless otherwise stated.
d
Deal definitions:
Deal stage:
Each series definition is determined as follows:
- Pre-Series A: Purpose of investment tends to be building the idea/team; in some cases, the company
generates revenue.
- 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.
- Series B: Investment purpose tends to be building scale, either domestically or regionally.
- 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:
- 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)
- Project financing: A deal which was a partnership for an identified purpose – e.g. Grab-Honda.
- Non-Southeast Asia deals: e.g. India and China focused companies that happen to use Singapore for
their corporate domicile.
29
 d

Contact
www.cento.vc

team@cento.vc

+65 6816 2810

Office address: Level 20, Capital Tower, 168

Robinson Road, Singapore 068912

Mailing address: Cento Ventures, 3 Church Street,

Level 8, Singapore 049483

30