Indian startups are increasingly training their sights on Southeast Asia as the next big frontier, with fintechs leading the charge into markets such as Indonesia, Vietnam, Malaysia, Cambodia, and the Philippines.
From payments and lending to consumer Internet and SaaS, a growing number of domestic firms find that their homegrown expertise can be put to work easily in these fast-growing economies.
The opportunities are immense. By one estimate, the combined Internet economy of the six largest Southeast Asian markets will reach $600 billion in gross merchandise value by 2030, and could even touch $1 trillion if policy environments improve, up from $240 billion in 2024.
For Indian founders used to large, price-sensitive markets, the combination of rapid digital growth, less competition, and lower customer acquisition costs makes Southeast Asia a compelling bet.
Indeed, India’s early lead in digital payments and fintech innovation has provided a strong launchpad for its startups to expand overseas. “India’s journey from cash to instant mobile payments has created one of the most advanced digital payment ecosystems in the world.
Many Southeast Asian markets share similar payment characteristics, with growing digital adoption and demand for faster, more inclusive payment solutions,” Shashank Kumar, co-founder of Razorpay, told FE. The company, which already operates in Singapore and Malaysia, plans to deepen its presence in Southeast Asia with expansion into Thailand, Vietnam, and the Philippines.
Others are following suit. Earlier this year, Pine Labs, one of India’s leading merchant commerce platforms, teamed up with Visa to introduce Visa Instalment Solutions on its multi-issuer payment platform across key Southeast Asian markets. Consumer Internet brands such as Lenskart, Oyo, and HealthifyMe are also cashing in on rising disposable incomes and aspirational spending across the region. Lenskart, for instance, operates 656 stores outside India, including in Japan, Singapore, the UAE, and several Southeast Asian nations, accounting for nearly 40% of its total revenue.
Beyond consumer brands, Indian SaaS and vertical software players such as Freshworks, MoEngage, and CleverTap are helping small and medium businesses in retail, logistics, and financial services go digital, replicating the playbooks that drove their success in India and the US. As Swati Murarka, principal, Bertelsmann India Investments, observed that India and SEA are now at comparable stages in digital adoption. “What worked in India, from payments infrastructure to consumer internet, can often be adapted with minimal friction,” Murarka told FE.
Proximity is another advantage. For startups like StampMyVisa, an AI-driven visa processing firm, Southeast Asian countries such as Vietnam, Indonesia, and Cambodia represent markets that mirror India’s earlier challenges — fragmented systems and reliance on manual processes. “That’s exactly where our AI-first model can add value,” a company executive said.
Legal experts say outbound expansion has been made easier by India’s relaxed regulations in the services sector, while cultural similarities have helped founders adapt their products to local preferences. Yet, the region has its challenges. “Each country has its own playbook when it comes to licensing, data privacy, and foreign ownership. Founders can’t apply a one-size-fits-all model,” Murarka warned. Talent availability can also be a constraint, with startups often relying on Indian diaspora professionals during early stages.
