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Southeast Asia’s (SEA) technology startups and scaleups raised $7.4 billion in the first half of 2026, more than double the $3.2 billion recorded a year earlier, as investors poured money into data centers, artificial intelligence (AI) infrastructure, and enterprise software.
According to Tracxn Technologies Limited’s Southeast Asia Tech H1 2026 Report, the region’s funding increased 130% despite a drop in the number of investment rounds. Companies completed 127 funding rounds, down from 153 in the first half of 2025, showing that investors favored fewer but much larger deals.
The biggest driver was Singapore-based DayOne, which raised $4.5 billion in two Series C funding rounds to expand its data center business. Other major fundraisers included Supabase ($500 million), Airwallex ($320 million), and PixVerse ($300 million).
Enterprise Infrastructure attracted the most investment, reaching $5.2 billion, a 260% increase from the previous six months. Enterprise Applications followed with $2 billion, while FinTech funding remained relatively steady at $685 million.
The report suggests that investors are prioritizing the digital infrastructure needed to support AI, cloud services, and enterprise computing rather than consumer-focused startups.
Late-stage companies attracted the bulk of investments, raising $6 billion, while early-stage funding held at $1 billion. Seed funding also increased 68% to $328 million, indicating that investors continue to back promising young startups despite a more selective funding environment.
The same trend appeared in mergers and acquisitions. The region recorded only 19 acquisitions during the first half, down from 34 a year earlier, but the deals were significantly larger.
The biggest transaction was the $5.2-billion acquisition of ST Telemedia Global Data Centres by KKR and Singtel, followed by Interplex’s $900-million sale to BizLink. Six companies also went public during the period, with MiniMax posting the largest IPO at a $6.5-billion market capitalization.
Singapore remained the region’s dominant technology hub, attracting $6.9 billion, or 94% of all tech funding in Southeast Asia. Bangkok ranked second with $116 million, while Kuala Lumpur followed with $104 million.
The findings show investment trends that could also benefit the Philippines, where demand for AI services, cloud computing, and hyperscale data centers continues to grow. As global investors focus on digital infrastructure, regional markets with expanding data center capacity and enterprise technology adoption may see increased opportunities.