This reflects a maturing market, as founders and investors gauge risks, says CEO of data platform Tracxn
[SINGAPORE] Startups in South-east Asia have increasingly turned to debt funding, as macroeconomic conditions create a tough exit and equity-funding environment.
According to figures from Tracxn, a data platform, debt funding in the region has grown from US$487.8 million in 2023 to US$3.1 billion in 2024. This number almost doubled in 2025 to US$6.1 billion.
In contrast, equity funding fell from US$8.4 billion in 2023 to US$7.9 billion in 2024. In 2025, the number fell further to US$6.2 billion, slightly edging out debt funding for startups here in South-east Asia.