Startups begin to acquire peers as valuations fall

WELL-FUNDED startups in South-east Asia have been quietly seeking out chances to acquire other startups, seizing a window of opportunity as red-hot valuations are tempered by macroeconomic headwinds.

Growing cautiousness by investors over the past six months has battered the market for fundraising. Startups rushed to cut headcount as capital got more scarce, while scaling back on expansion in a bid to extend cash runways.

But for companies with a stronger balance sheet, the softening market has presented a chance to snap up industry peers at a good price. It has led some to seriously consider inorganic growth for the first time.