Total tech funding raised in the first half of the year reached $191 million.
Indonesia’s insurance technology (insurtech) sector hit a record high with $47 million raised in the first half of this year (H1 2024), compared with $7.5 million raised in the same period last year, Tracxn research showed.
Outside of insurtech, fintech and enterprise applications emerged as the strongest performing sectors in the first half of 2024. Despite the success of these sectors, no new unicorns were born in the first half of 2024, in contrast to one unicorn being born in the same period last year.
Indonesian fintech startups raised $128 million in the first half of 2024, a 61% decrease from $329 million in the first half of 2023. In enterprise applications, funding fell 56% to $45.1 million from $104 million in the first half of 2023.
Globally, Indonesia ranks 29th in fundraising, demonstrating resilience amid global economic challenges. Indonesia’s tech startup ecosystem raised $191 million in total funding, down 79% from $918.3 million in the second half of 2023 and down 64% from $526 million in the first half of 2023, highlighting the changing investment landscape.
Funding patterns across different stages showed a clear trend: Seed-stage funding reached $26 million, down 42% from $45 million in 2H23 and down 27% from $32 million in 1H23.
Early-stage funding totaled $113 million, down 42% from $148 million in the first half of 2023. Late-stage investments totaled $52.2 million, down a significant 92% from $681 million in the second half of 2023, reflecting investor caution toward later-stage ventures.
Jakarta topped the list of fundraising by city in the first half of 2024, followed by Yogyakarta and Bandung. Jakarta-based tech startups raised $185 million, far outpacing startups based in Yogyakarta ($3.5 million) and Bandung ($2.5 million).
Despite challenges, Indonesia’s tech startup ecosystem remains vibrant and adaptable, supported by strategic investments and sector diversification.
Tracxn, the world’s leading SaaS-based market intelligence platform, has released its Geo Semi-Annual Report: Indonesia Tech H1 2024. Based on Tracxn’s extensive database, the report provides insights into Indonesia’s tech startup ecosystem, which has experienced notable changes in funding and market activity in the first half of 2024.