Singapore, June 7: Despite economic challenges and declining private funding, the startup ecosystem in Southeast Asia and India is showing signs of maturity and resilience, according to a new study by HubSpot.
Conducted by Milieu Insight, the study explores trends and innovations shaping the startup landscape in these regions.
HubSpot’s report reveals that 53 per cent of startups found it easier to grow their businesses in the past year compared to previous years.
A significant shift towards balancing growth and profitability is evident, with 98 per cent of startups recognising the increased importance of having a clear path to profitability.
Laurence Butler, Global Senior Director at HubSpot for Startups, commented, “These signs of growing resilience are a testament to the region’s entrepreneurial spirit and adaptability. While digital transformation has been a focus among the region’s SMBs in recent years, the digital-first nature of modern startups empowers them to swiftly adapt to volatile market conditions by leveraging data analytics and foundational technologies such as CRM platforms. Most startups now recognize the critical importance of having a clear path to profitability, marking a shift towards focusing on core markets and building robust customer relationships, which are crucial for long-term sustainability.”
The study also highlights the role of technology in driving growth, with 99 per cent of startups using at least one CRM tool and 81 per cent expressing satisfaction with their tech stack.
This robust technological foundation allows startups to collect, structure, and analyze customer data effectively, driving business growth and innovation.
However, challenges remain, particularly in talent acquisition.
Startups are finding it difficult to fill key positions, with marketing, customer success, and sales roles being the hardest to hire for.
For non-go-to-market positions, AI and machine learning engineers top the list of hardest-to-hire roles, followed by experts in data analytics, product management, and industry-specific specialists.
In Singapore, the lack of diversity in the talent pool and shortage of specialised technical skills are significant challenges.
In India, issues include limited experience in startup environments, misalignment regarding remote/hybrid work expectations, and high turnover rates.
Butler emphasised the importance of AI in future strategies, stating, “Today, AI is viewed as the single largest economic opportunity since the start of the internet, and data is the currency of AI.
Residing in some of the world’s fastest-growing digital economies, digital-native startups in the region are well-positioned to tap on their established tech infrastructure and quality data that form the basis for effective AI solutions.
By leveraging AI, startups can quickly identify gaps in their business models, better anticipate customer needs, and improve their overall ability to deliver highly personalised customer experiences.”
These findings are based on responses from 600 startup founders and decision-makers across Singapore, Indonesia, the Philippines, and India, collected from February to March 2024.
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