Consumer is king

MORE than a decade ago, the first wave of startups in South-east Asia built businesses that sold or facilitated the sale of consumer products. Companies such as Zalora and Traveloka thrived on the region’s large population that was getting smitten with spending online.

Things are different now. Startup businesses have diversified across the fields of artificial intelligence, agriculture, software-as-a-service, and more. With many sharing the spotlight, startups building consumer brands have weakened in their attractiveness to investors.

Venture funding for these startups in Asia-Pacific has fallen in the last two years. While the margins in South-east Asia tend to be reasonably good, a Bain & Co partner likens the competition to a “tug of war for market share” between new players and incumbents.