East Ventures 2025 Market Outlook: Trends and Predictions
As new leaders step into key roles around the world, the economic and market outlook is becoming clearer, with promising opportunities on the horizon. Projections suggest that global growth is expected to stabilize around 3.1% over the next five years, signaling a resilient recovery from the impact of the pandemic.
Technological advancements are set to drive innovation and create new industries, boosting this positive trajectory. However, there’s also a rise in protectionism across major economies, influenced by various economic and geopolitical factors.
In Southeast Asia (SEA), strong consumption, anticipated improvements in investments, and ongoing tourism recovery are all expected to support growth in 2025. Additionally, the Fed’s rate cut in September is likely to benefit consumers and businesses in the region.
According to the e-Conomy SEA 2024 report, both the region’s Gross Merchandise Value (GMV) and revenue have shown consistent double-digit growth in the past year. This growth trend aligns with more companies in our ecosystem focusing on profitability.
In fact, our revenue from growth-stage portfolio companies has increased by 40% year-on-year, surpassing the region’s growth rate by almost three times. This success underscores our commitment to resilient investments and positions us ahead of other companies and venture capital firms in the region.
In line with our belief in the importance of profitability, 70% of our growth-stage portfolio companies are profitable, with over 80% showing improved EBITDA margins in the past year. Notable companies in our portfolio include Sociolla, ShopBack, Traveloka, and many others, showcasing financial stability and strong fundamentals.
To support our portfolio companies in achieving their long-term goals, we aim to cultivate synergy within our ecosystem by organizing workshops like East Ventures Hand in Hand and Founders Gathering. These platforms foster knowledge-sharing and skill enhancement among our founders to navigate challenging times.
At East Ventures, we continue to back quality founders who are addressing real problems with innovative solutions. We recently invested in Runchise, Bythen, Copra, and others, with an eye towards discovering new talent in the coming year.
Celebrating our 15th year in the industry, we have built a robust ecosystem with over 300 portfolio companies and 500 exceptional founders. Our annual East Ventures Summit in Jakarta has become a cornerstone event for connecting stakeholders, sharing knowledge, and building partnerships within the tech and investment industry.
In Indonesia, the economy is forecasted to outperform its pre-pandemic levels, with positive economic growth expected in both 2024 and 2025. The launch of the fifth edition of East Ventures – Digital Competitiveness Index (EV-DCI) underscores Indonesia’s commitment to digital transformation and enhancing its digital economy growth.
Our collaboration with Praja Mangkunegaran, a royal monarchy on the island of Java, further solidifies our support for Indonesia’s digital sovereignty. Together, we aim to empower MSMEs and drive social and economic change through the “Culture Future” initiative.
Under President Joko Widodo’s leadership over the past decade, Indonesia’s tech startup landscape has flourished, positioning the country as a key player in the digital economy. This strategic positioning continues to drive Indonesia’s economic growth and innovation in the tech sector.
