Investors are watching closely, and the startups that thrive in these markets will be the ones that can balance innovation with sound financial strategies
In Western markets like the US and Europe, startups often prioritise fast scaling because customers are ready to pay for innovative products. But in Southeast Asia, things work differently. Founders can’t simply assume that their market will pay, even when there’s interest in the product. We’ve seen many startups in these countries present enormous market sizes, only to realise later that a large portion of the market isn’t ready to convert into paying customers.
For example, in Indonesia, startups need to carefully assess how much their target customers are actually willing to spend. It’s a diverse market with both high-income urban populations and lower-income rural areas, meaning the ability to pay varies greatly. In Vietnam, the story is similar, where consumer behaviours and preferences can differ widely between regions, making it critical for startups to understand local nuances before scaling too quickly.
