Fresh report identifying potential Asia-Pacific unicorns

According to the report, over 6,470 technology-focused startups with valuations of up to $500 million were studied across 12 markets, with ten leading emerging giant companies identified in each market. The report also names 100 leading emerging giants within the Asia-Pacific region.

With the International Monetary Fund predicting that the region’s emerging markets and developing economies will grow 20 per cent faster than the global average, this year, emerging giants – fast-growing, influential, and innovative startups with unicorn ambitions – are a leading indicator of Asia-Pacific’s growth trajectory.

According to the report, the emergence of new sector verticals is attracting record-breaking investments, leading to a proliferation of larger, more valuable startups in the region.

The report also identified around 120 technology-related industry subsectors among these businesses, with blockchain, smart city, and sustainability verticals being the most prominent.

Additionally, six out of the 12 markets studied had average valuations of $300 million or more among their leading emerging giants.

Honson To, chairman at KPMG Asia-Pacific and KPMG China, noted that fast-growing technology startups are the new wave of firms contributing to economic growth.

“The global push towards carbon-neutrality will be a major driver of innovation as traditional sectors go green, and emerging giants will likely play a key role in developing the technologies that can reduce carbon emissions and promote more responsible stewardship of the environment. Asia will be a crucial battleground in the fight for a more sustainable future,” said To.

Surendra Rosha, co-chief executive of HSBC Asia-Pacific said, “Emerging giants in Asia-Pacific excite us because we see the startup ecosystem as complementary to the established end of the financial services industry: they’re a source of innovation, and invigorate both local and regional economies with their dynamism.”

Some key findings of the report

According to the fresh report, while a repeat of the record-breaking private investment levels in 2021 is unlikely, Q1 figures suggest that 2022 is on target to exceed both 2020 and 2019 funding levels in Asia-Pacific, with Australia, Malaysia, and South Korea already seeing values pass or nearly pass 2020 totals.

As the world’s biggest fintech adopter, the Asia-Pacific region has experienced a boom in financial services transformation within the last two years as fintech applications progress in tandem with user uptake.

Considerable interest in cryptocurrencies has also led to a surge in financial crypto services and blockchain players.

Another finding is that increased lies on meeting climate targets, which could likely drive an explosive demand for green technologies and services across every industry, creating significant opportunities for emerging giants.

The report also indicates top challenges faced by emerging giants, including navigating regulatory complexity and securing technology talent, as well as leveraging government incentives and management processes for distributed workforces.

The report also features interviews with startup founders and executives across the 12 Asia-Pacific markets, which offer insights into the challenges and opportunities that startups in the region face.