Indonesian insurtechs funding lead despite 79% industry nosedive

Total tech funding raised in the first half of the year amounted to $191m.

Indonesia’s insurance technology (insurtech) sector saw the largest funding in the first half of the year (H1 2024) with $47m. To compare, the same period last year saw $7.5m in funding, Tracxn findings revealed.

Other than insurtechs, fintech and enterprise applications emerged as the top-performing sectors in H1 2024. Despite these sector successes, no new unicorns were created in H1 2024, in contrast to one unicorn in the same period last year.

Fintech startups in Indonesia raised $128m in H1 2024, a 61% plunge from $329m in H1 2023. Enterprise applications witnessed a 56% decline in funding, to $45.1m from $104m in H1 2023. 

Globally, Indonesia ranked 29th in funding, demonstrating resilience amidst global economic challenges.  The total funding raised by the Indonesia tech startup ecosystem amounted to $191m, reflecting a 79% decline from $918.3m in H2 2023 and a 64% decrease from $526m in H1 2023, highlighting the evolving investment climate.

Funding patterns at various stages showed distinct trends. Seed-stage funding reached $26m, a 42% decline from $45m in H2 2023 and a 27% decrease from $32m in H1 2023. 

Early-stage funding totaled $113m, a 42% drop from $148m in H1 2023. Late-stage investments stood at $52.2m, a significant 92% decrease from $681m in H2 2023, reflecting cautious investor sentiment in later-stage ventures.

Jakarta led in city-wise funding in the first half of 2024, followed by Yogyakarta and Bandung. Tech startups based in Jakarta raised $185m, far ahead of those based in Yogyakarta ($3.5m) and Bandung ($2.5m).

Despite challenges, Indonesia's tech startup ecosystem remains vibrant and adaptive, supported by strategic investments and sectoral diversification.

Tracxn, a leading global 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 experienced notable shifts in funding and market activities during the first half of 2024.