Indonesia tech funding down 38% in 2025 as investors turn selective: report

[JAKARTA] Indonesia’s technology ecosystem suffered a sharp pullback in funding in 2025, underscoring a deeper structural retreat of capital as investors grew increasingly selective about new deployments.

A report released on Wednesday (Jan 14) by market intelligence firm Tracxn noted that total funding raised by Indonesian tech companies fell to just US$213 million last year, making for a sharp contraction in capital inflows. The figure is 38 per cent lower than the US$345 million raised in 2024, and 85 per cent less than the US$1.4 billion peak in 2023.

The contraction was broad-based, hitting seed, early and late-stage funding, and signalling a shift from a cyclical correction to a more prolonged capital retrenchment.

The funding slowdown unfolded amid a series of controversial scandals that sent shockwaves through Indonesia’s tech industry in 2025.

Agritech startup eFishery, once held up as a poster child of Indonesia’s digital economy, became embroiled in governance and financial-reporting issues that prompted investor scrutiny across the sector.

Before that, supply-chain startup TaniHub collapsed amid allegations of mismanagement and questionable lending practices, leaving lenders and vendors exposed.

Investment activity also consolidated around significantly fewer deals, reflecting what Tracxn described as “extreme selectivity”, with investors reserving capital for startups that promised proven unit economics and defensible business models.

Late-stage funding experienced the steepest drop, tumbling 45 per cent year on year to US$79.8 million, as institutional investors increasingly favoured mid-market stability over late-stage growth expansion.

Seed-stage funding reached US$26.4 million in 2025, down 18 per cent from the previous year and 68 per cent from 2023 levels.

SEE ALSO

Indonesian employment platform Pintarnya secures US$14 million credit facility

Grab-GoTo merger could be ‘colossal’ for Indonesia’s fintech hopefuls, say analysts

Early-stage funding declined 37 per cent year on year to US$107 million, underscoring the pullback even among companies that would have traditionally been considered growth-ready.

Despite the overall downturn, capital that did flow into Indonesia’s tech ecosystem gravitated toward more tangible, infrastructure-linked sectors.

Food and agriculture technology emerged as the top-funded segment, raising US$70.6 million in 2025, up 72 per cent from 2024, though still far below the US$280 million raised in 2023.

Retail tech attracted US$49 million, a more-than-threefold increase from 2024; energy tech secured US$44.8 million, marking a return of investor interest after no funding activity in the sector the year before.

Exit activity remained subdued and largely strategic in 2025. Indonesia recorded just two tech IPOs during the year – Grab-backed Superbank, which listed in December, and online travel agent NusaTrip went public on Nasdaq. The count matched 2024’s tally, but was a sharp drop from the five listings in 2023.

Acquisition activity also softened, with nine deals completed during the year, compared with 14 two years before. Notably, there were no US$100 million-plus funding rounds, and no new unicorns emerged in 2025.

Geographically, Jakarta continued to dominate, capturing nearly all tech funding nationwide.

Tracxn said the concentration highlights a hub-centric investment model, under which capital remains anchored to the capital city’s infrastructure, talent pool and operational proximity.