Consumer tech funding hit by market saturation

The value of e-commerce deals dropped to US$2.03b ($2.74b) in 2023.

Verticals in the consumer tech sector, e-commerce and fintech in particular, recorded funding declines last year, according to the Singapore Venture Funding Landscape 2023.

The report attributed the funding and deal drop in the consumer tech sector to competition within an increasingly saturated market and its business model involving high cash burn, which has made investors wary.

Based on the report, deal volume in the e-commerce vertical dwindled to 21 in 2023 from 61 in 2022, whilst its total funds raised dropped to US$2.03b ($2.74b).

The same trend happened to fintech, which recorded a total deal value of  US$1.142b ($1.54b), a drop from US$3.5b ($4.7b). Its 2023 deal volume was 96, lower than the 160 recorded in 2022.

(US$1 = S$1.35)

ALSO READ: HSBC unveils $1b ASEAN Growth Fund for digital platform players