Positive momentum can be seen across Asia in the consumer and SME lending market, backed by P2P lending platform, venture capital, and other investors (1) (2) (3) (4) (5) (6). The maturing lending market increases reliability and offers scaling opportunities for investors (7) (8), however there remains the risk of overheating of the market due to the increased attention by larger investors looking to capitalize on the potential gains. In order to outperform the market it is vital to ensure careful attention is paid to due-diligence and loan selection processes (9) (10).
Machine translation technologies are facilitating the growth of online educational tools in China, leading to increasing valuations and improved investment opportunities (11) (12). International investments increase business opportunities in online education platforms, with a particularly focus on English-learning-for-kids (13).
References
Prospa's IPO is out, and two top VC firms have tipped in more money ahead of the $146 million float
P2P Lending Platforms in Philippines Rising - Fintech Singapore
Lendr Records Double Digit Growth in Philippines, Disbursed Over $500 Million in Loans
Online lender Capital Float gets debt investment of $7m from Triodos
Funding Societies gets $25M Series B led by Softbank Ventures Korea
India: Amazon provides $22m equity funding to digital lender Capital Float
Machine Translation and Online Education: Series A Values Youdao at USD 1.1 Billion | Slator
China’s VIPKID, which links English tutors with online learners, raises $500M at $3B+ valuation
Tencent and education startup Age of Learning bring popular English-learning app ABCmouse to China
The growing Asian Middle Class will lead to increasing discretionary spending by wealthier consumers, resulting in an expanding consumer market and strong GDP growth in those nations (1). The tremendous scope for growth in fintech and retail banking in Vietnam is primarily led by the up-and-come middle class consumers (2). A stronger middle class consumer base also contribute to an increase in the regional tourism market (3). Additionally, the continued increase in Market Efficiencies is useful for multiple expansion due to better governance (4).
Japan’s female labour force continues to rise, increasing household income and economic growth potential (5). Market analysis concludes that Japanese Small Caps are currently 18 undervalued and strong growth potential (6). Nevertheless there are some negative outlooks 19 on the Japanese economy which could carry a rather high correction risk (7).
References
Vietnamese fintech space to continue to attract investor interest: EY report
Travel activities platform KKday raises $10.5M led by Japanese travel firm H.I.S.
Indonesia set to issue stricter regulations for fintech sector
Land of the Rising Alpha: The Case for Japan Small Cap Equities
Non-traditional banking and financing services are on the rise with companies such as Grab moving into micro-financing (1), Australian SME’s looking for alternative lending options (2), and other Fintech companies moving into virtual banking services (3). China’s recent move to open their payments market to foreign investors could provide a boost for innovation and increase investment demand (4) (5).
Overall, the Fintech market is at risk of overhype (6) (7) but first signs of the end of the hype cycle are evident in Asia’s decline in Fintech investments (8) and China moves to tighten regulations (9).
Growing demand for digital marketing is increasing the importance of firm’s online presence, and the services offered by digital ad platforms (10). The E-commerce market continues growing (11) as Alibaba expands their business to South Asia (12) and, back in China, Pindodu grows to one of the largest e-commerce apps, capitalizing on their WeChat user base (13) (14). The E-signature market continues to grow as DocuSign pushes for more financial services to accept online signatures as they prepare to go live with their IPO (15).
References
Grab, Uber’s Southeast Asia rival, now offers micro-loans and other financial services
WeLab joins race to become Hong Kong’s first licensed virtual bank
China Allows Foreigners to Enter $27 Trillion Payments Market
No-fees mobile bank Chime raises $70M Series C, valuing its business at $500M
Asia sees massive drop in fintech investment as China loses momentum
China tries to bring order to sprawling online finance sector
Alibaba buys Rocket Internet’s Daraz to expand its e-commerce empire into South Asia
Alibaba's Worst Nightmare: Pinduoduo Becoming the No.1 E-commerce App in China
China’s Electric Vehicle market is rapidly growing, with car sales projected to overtake Europe and the US by 2025 (1), China plans to invest heavily in battery production (2) to facilitate the adoption of EVs to rival Tesla’s own Model X (3) and push self-driving technology forward (4).
Positive investment dynamic in transportation-sharing and food delivery industry (5) (6), including growth in ride-hailing sector as Alibaba prepares to invest in Grab (7). Transportation service companies such as Uber continue to expand their business scope (8).
References
Chart of the day: China is leading a surge in electric vehicle sales
NIO opens its first electric car service center right next to Tesla’s
Start-up NIO, car major SAIC cleared to test driverless cars in Shanghai
Uber launches Uber Health, a B2B ride-hailing platform for healthcare