The start-up market in the Asia-Pacific (APAC) region has seen remarkable growth in recent years, thanks to a supportive business environment, an increasingly tech-savvy population, and rising investor interest. However, with all the hype surrounding this booming industry, it can sometimes be challenging to determine which sectors are poised to take off soon and which are likely to fizzle out. Fortunately, the recent research conducted by KPMG and HSBC offers a glimpse into the emerging sectors that could significantly impact the APAC start-up landscape. In this post, we will discuss five sectors highlighted in this study and what makes them so promising.
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Fintech
No surprise here – fintech has been and continues to be one of the most attractive sectors for start-ups in APAC. With a large population of underbanked and unbanked individuals across many countries in the region, fintech start-ups have the opportunity to solve a significant problem while also benefiting from the growing demand for digital payment solutions. As a result, the study found that investments in fintech continue to rise across the region, with Singapore, Hong Kong, and Australia leading the pack.
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E-commerce
As more and more people become comfortable with online shopping, the e-commerce sector in APAC has grown exponentially, and the trend is set to continue. In addition, the study found that e-commerce is a popular sector in countries such as China, India, Indonesia, and the Philippines. With a large population and an increasing demand for online shopping, e-commerce start-ups in these countries have the potential to scale quickly.
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Healthtech
The COVID-19 pandemic has highlighted the importance of health tech in the APAC region. The study found that investors are increasingly drawn to start-ups that can address healthcare challenges, including telemedicine, remote care, and online pharmacy services. Countries like India and China have seen significant growth in telemedicine, and investors are keen to support innovations in this sector.
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Agritech
Agritech is a growing sector in the APAC region, with start-ups looking to address food security, sustainable agriculture, and supply chain issues. The study found that investors are keen to support agritech start-ups in Indonesia, Vietnam, and Thailand. With government support and a growing demand for sustainable agriculture solutions, agritech start-ups in these countries could see significant growth in the coming years.
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Edtech
With the pandemic shutting down schools and universities across the region, edtech start-ups have become increasingly important. The study found that investors are drawn to innovative start-ups that can provide online learning solutions and bridge the education gap in countries where access to quality education is challenging. As a result, countries like India, China, and Indonesia are seeing significant growth in edtech start-ups.
Summary:
The APAC region is home to some of the most promising start-up sectors in the world, and investors are taking notice. While fintech continues to lead the pack, e-commerce, healthtech, agritech, and edtech are also gaining significant traction. The APAC start-up market is poised for continued growth with a supportive business environment, a large population of tech-savvy consumers and investors, and a growing demand for innovative solutions. As we move into a post-COVID world, the future of these emerging sectors looks even brighter.
