ASEAN’s fintech industry recorded its weakest investment performance since 2016, with total funding dropping 36% year-on-year to $835 million in the first nine months of 2025, according to the FinTech in ASEAN 2025 report by UOB, PwC Singapore, and the Singapore FinTech Association.
Deal activity also plunged, with the number of transactions falling 60% to 53 as investors tightened capital deployment amid market uncertainty.
Despite the slowdown, the average deal size rose 42% to $21.4 million, signalling investor preference for scale, proven models, and profitability, UOB said.
Late-stage companies absorbed 67% of all capital raised—24 percentage points higher than the previous year—largely due to three major deals worth a combined $450 million.
Singapore dominated the region’s funding landscape, capturing 87% of total investment, or $725 million. It also accounted for more than half of all deals, led by strong activity in blockchain and investment tech segments.
Indonesia and the Philippines each secured 4% of funding, while Malaysia, Thailand, and Vietnam collectively made up under 10%.
The report highlighted a clear shift in investor focus from early-stage growth to businesses with established revenues and scalable models, reflecting a more disciplined funding environment as ASEAN’s fintech sector matures.
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