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<a href="/company/geely">Geely's</a> 2025 results suggest its new energy vehicle (NEV) push is starting to support a clearer earnings case, though not in the way the headline growth figures suggest. Revenue rose 25% year-on-year to RMB 345.2 billion (USD 50 billion), while profit attributable to owners of the parent reached RMB 16.85 billion (USD 2.4 billion), up just 0.2%.
Geely's preferred core profit measure rose much faster, climbing 36% to RMB 14.41 billion (USD 2.1 billion) after excluding foreign exchange gains and other non-recurring items.
That distinction matters because Geely is no longer just a volume story. Total sales rose 39% to 3.02 million vehicles in 2025, and NEV sales jumped 90% to 1.69 million, accounting for 56% of the group total. But statutory earnings were nearly flat, meaning investors still need to separate genuine operating improvement from accounting effects and one-off items.
The strongest part of the operating picture was product mix. Geely Galaxy, its mass market NEV brand, delivered 1.24 million units for the year, up 150%, while Lynk &amp; Co increased deliveries 23% to 350,495 and Zeekr delivered 224,133 units. That left Geely with a business scaling at the mainstream end while adding premium models that can do more of the margin work.
The clearest evidence appeared in profitability. Geely said full-year gross margin edged up to 16.6% from 16.5% in 2024 despite what it described as fierce price competition. On the earnings call, management said fourth-quarter gross margin reached 16.9%, helped by a richer Zeekr mix and stronger sales of higher-end models, including the Zeekr 9X. That points to a more durable earnings mechanism than simple unit growth. Galaxy is providing scale, while Zeekr is beginning to improve the mix.
The next test, however, is outside the domestic market. Geely has set a 2026 sales target of 3.45 million vehicles, implying roughly 14% growth, and it is reportedly targeting 640,000 overseas sales this year, 50% more than in 2025. That is ambitious because export volume in 2025 rose just 1% to 420,097 units, well behind the pace of its domestic expansion.
The same caution applies to Geely's internal reorganization. Management is leaning heavily on the “One Geely” strategy, including the integration of Lynk &amp; Co and Zeekr, to reduce procurement, manufacturing, channel, and administrative costs. But management also said on the call that the effects of the integration have yet to fully materialize and that more time is needed to show the results. That undercuts any claim that the synergies should already be visible in the numbers.
That leaves Geely with a stronger 2025 foundation than many rivals can claim: record revenue, much faster core earnings growth, and a product mix that is now large enough to matter. But with reported net income barely higher and 2026 relying more heavily on exports and post-integration efficiency, it still needs to show that scale, premiumization, and restructuring can lift reported profit at the same time.
Note: RMB figures are converted to USD at rates of RMB 6.90 = USD 1 based on estimates as of March 20, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Geely’s 2025 gains set up next test in exports and integration

Zeekr

Lynk &amp; Co

East Asia

China

Transportation

Electric Vehicles

Mobility

… restructuring SOEs, determining their dividend payouts and reinvesting those dividends. Roeslani in October reiterated Danantara's <a title="" href="https://asia.nikkei.com/editor-s-picks/interview/indonesia-s-danantara-targets-8bn-in-dividends-from-state-owned-companies" target="_blank" rel="noopener">target of IDR 140 trillion (USD 8.3 billion)</a> in payouts for fiscal year 2025, a 64% increase from IDR 85.5 trillion (USD 5 billion) in 2024.
Another key funding source for Danantara is <a title="" href="https://asia.nikkei.com/economy/indonesia-s-danantara-to-issue-3.1bn-in-patriot-bonds-targeting-tycoons" target="_blank" rel="noopener">"patriot bonds"</a> targeting ultrawealthy Indonesians, with the first tranche worth IDR 50 trillion (USD 3 billion) issued in October at a 2% yield. That is far below the 6.2% offered on Indonesian sovereign bonds with similar maturities. Danantara is reportedly preparing to issue a second tranche worth IDR 20 trillion (USD 1.2 billion).
This is taking place as Danantara looks to invest USD 14 billion this year, compared with USD 8 billion committed last year, chief investment officer Pandu Sjahrir said in January, according to Reuters.
Apart from investing directly in projects, Sjahrir said the fund actively invests in the capital market, including during the recent <a title="" href="https://asia.nikkei.com/business/markets/indonesia-s-financial-regulator-chief-and-bourse-ceo-quit-after-market-rout" target="_blank" rel="noopener">turbulence</a> following global index provider MSCI's warnings over Indonesian shares' inadequate free-float ratios and transparency. He said Danantara purchased stocks "with attractive valuations," and shares of "companies with strong cash flow and liquidity."
However, Lawrence Loh, a professor at the National University of Singapore (NUS) Business School, called the patriot bonds "modest-yield financing instruments that blur the line between market investments and political contributions."
"Danantara will have to consider how the extension of such bonds and future variants can be healthily sustained in the financial markets," Loh told Nikkei.
Airlangga University professor Rahma Gafmi is more straightforward: "Danantara's governance is highly ineffective because the assets under management are not sound, discouraging investors [and] forcing them to [buy] patriot bonds."
Nevertheless, Loh thinks Danantara has had a "formidable start," describing the fund's first year as "commendable, exceeding expectations.
"Launched with a clear national mandate, it was able to deploy capital quickly in domestic infrastructure, energy and digital projects, as well as consolidate oversight of major SOEs and key assets on a scale that has never been achieved before," Loh said.
Prabowo said he wants "efficient" capital reallocation through SOEs restructuring, including by cutting the number of SOEs and their subsidiaries from more than 1,000 to no more than 300. Many SOEs have long been afflicted by poor governance and financial losses.
Danantara COO Dony Oskaria said it completed "urgent" restructurings of 21 SOEs last year, including those of struggling steelmaker Krakatau Steel, which received shareholder loans of IDR 4.9 trillion (USD 289.2 million), and flag carrier Garuda Indonesia, which got IDR 6.65 trillion (USD 392.5 million).
The revised SOEs law also allows Danantara to recruit foreign executives, who were previously barred from running SOEs. In October, it appointed two foreign nationals to Garuda's board of directors, including a former Singapore Airlines executive.
Oskaria said Danantara aimed to raise SOEs' total revenue to IDR 350 trillion (USD 20.7 billion) this year, from an estimated IDR 332 trillion (USD 19.6 billion) in 2025. He said the fund will review their business fundamentals, finances, and human capital, and consolidate them.
Danantara is also involved in nearly all of Prabowo's other key programs, including providing financing for the free school lunch program and village cooperatives—with the loans coming from state-owned banks—construction of 15,000 temporary houses for victims of floods in Sumatra last year, and a plan to set up a new textile company with a USD 6 billion capital injection in response to mass layoffs in the domestic textile industry.
While Danantara appears to lack focus, Bhima Yudhistira Adhinegara, executive director of the Center of Economic and Law Studies, thinks the fund's top leadership is preoccupied with Prabowo's pet projects, such as the free meal program for schoolchildren. As a result, "Greenfield investments such as renewable energy development, power transmission, and the battery ecosystem have yet to be realized and appear to be a low priority," he said.
Moody's noted that Danantara is still in the early stages of development, and that the government has established legal and institutional frameworks for the fund to carry out its mission. "We assume that further institutional development will provide greater clarity around Danantara's governance and operations over time," Moody's said.
This article first appeared on <a href="https://asia.nikkei.com/spotlight/asean-money/indonesian-fund-danantara-chases-prabowo-s-dreams-but-spurs-major-doubts">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.
Note: IDR figures are converted to USD at rates of IDR 16942.35 = USD 1 based on estimates as of March 16, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Indonesian fund Danantara chases Prabowo's dreams, but spurs major doubts

Indonesia

Southeast Asia

After navigating a series of hurdles from registration and payment to setting up a "gateway," Wang, a 35-year-old content director at one of China's biggest tech companies finally managed to get OpenClaw up and running on his desktop.
The challenges, which nearly all Chinese users face when trying to install the viral <a href="/industry/ai">artificial intelligence</a> agent, felt worth it.
On the evening of March 11, while commuting from work, Wang asked <a title="https://asia.nikkei.com/business/technology/artificial-intelligence/china-firms-launch-openclaw-rivals-as-beijing-warns-against-viral-ai-agent" href="https://asia.nikkei.com/business/technology/artificial-intelligence/china-firms-launch-openclaw-rivals-as-beijing-warns-against-viral-ai-agent" target="_blank" rel="noopener">OpenClaw</a> to find a way to make money through writing articles on WeChat using the tool. When he got home, a series of active research tabs and a meticulously drafted ten-page manual were waiting on his monitor. The sheer efficiency of the task, completed entirely in his absence, left him stunned.
"This agent is incredible. It can operate your computer and get work done even when you're not around, and the quality is extremely good," Wang told Nikkei Asia, asking to be identified only by his surname. "A lot of people will lose their jobs because of this AI."
It is this frictionless utility that is driving the viral adoption of OpenClaw in China, with even local governments now scrambling to popularize it despite repeated warnings from central government agencies about the security risks of the Western-developed AI tool.
The government of Shenzhen's Longgang district hosted an "OpenClaw conference" on March 14 in partnership with Moonshot AI, one of China's leading AI startups that introduced its own version of OpenClaw, Kimi Claw, last month. Engineers from the company provided free OpenClaw installations for attendees and distributed trial access to Kimi Claw.
The district is also offering free services to help users deploy OpenClaw and is encouraging companies to either purchase or build their own OpenClaw-based agent solutions, with annual subsidies of up to RMB 2 million (USD 289,436) per company. The district plans to select top-performing OpenClaw applications each year, offering awards of up to RMB 1 million (USD 144,718).
Other local governments have introduced similar incentives in the past week. For example, Hefei's high-tech zone in Anhui introduced 15 measures aimed at supporting the development of open-source AI projects such as OpenClaw, with funding of up to RMB 10 million (USD 1.4 million). The initiative also seeks to promote a new "AI plus super individual," also known as the one-person company (OPC) business model, as unemployment remains a worry across the country amid an economic slowdown.
Changshu in Jiangsu has unveiled 13 similar measures, including free end-to-end deployment and training services for OpenClaw users and awards for good OpenClaw applications.
The frenzy mirrors the state-led rush to integrate DeepSeek <a title="" href="https://asia.nikkei.com/business/technology/tech-asia/china-races-to-govern-the-country-with-deepseek-but-at-what-risk" target="_blank" rel="noopener">just one year ago</a>, when local governments raced to use the model for everything from drafting documents and analyzing data to answering public queries and drawing up policies.
"I think a lot of these moves are simply following the trend, because everything now has to be tied to artificial intelligence," an official in an eastern province in China, who asked not to be named, told Nikkei Asia. She added that her city has also set up a special AI task force, with nine working groups staffed by officials seconded from different departments, and will soon roll out policies related to OpenClaw as well.
"AI does make some things more convenient, for example, writing official documents is easier than before, but in terms of industrial development, even our whole province doesn't really have much of a foundation. The only direction we can realistically pursue is adding a few more AI application scenarios," she said.
"But you have to talk about AI all the time, otherwise you may appear to lag behind," she added.
Though facing obstacles in obtaining advanced chips from <a href="/company/nvidia">Nvidia</a> due to US export controls, AI is at the top of Beijing's agenda. Policymakers are actively deploying state support to accelerate the country's AI development, and they have set "embodied AI" as a target industry in the country's latest five-year plan (2026–2030) for economic development.
The official added that though her government frantically pushed the adoption of <a href="/company/deepseek">DeepSeek</a> one year ago, now they are mostly using <a href="/company/bytedance">ByteDance's</a> Doubao, which they think is more suitable for their daily work. "Talk of DeepSeek has quietly died down," she said.
DeepSeek has not yet released its long-delayed V4 model, though the Financial Times previously reported that the Hangzhou-based company would release it before the National People's Congress that kicked off on March 5.
While OpenClaw continues to cause a stir in China, Chinese companies, from established giants such as <a href="/company/tencent">Tencent</a> and <a href="/company/huawei">Huawei</a> to startups like Moonshot and Z.ai (Zhipu AI), have all launched their own versions of the viral tool in the past week, packaging their offerings as "one-click installers."
The key difference between their products and OpenClaw is that the Chinese versions replace the system's "brain" with Chinese large language models so that the data processing takes place either on domestic servers or locally, which should address many of Beijing's data security concerns.
This article first appeared on <a href="https://asia.nikkei.com/business/technology/artificial-intelligence/openclaw-becomes-latest-ai-craze-for-china-s-local-governments">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 16, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

OpenClaw becomes latest AI craze for China's local governments

Artificial Intelligence

Deep Tech

… aria-level="1"><a href="https://www.szsitan.com/">Sitan Technology</a>, a Chinese developer of micro LED technology, has completed a Series B3 round, raising an undisclosed amount from Xiamen Advanced Manufacturing Industry Fund No. 1, Xiamen Science City Fund of Funds, Industrial Securities Capital, and Longhua Capital. It will use the capital to accelerate the commercialization of in-car projection and augmented reality display products, while expanding into industrial visual inspection. —<a href="https://36kr.com/p/3718080484275585">36Kr</a></li>
<li aria-level="1"><a href="https://accupulse.com/">AccuPulse</a>, a Chinese medtech company focused on cardiac electrophysiology, has raised over RMB 100 million (USD 14.5 million) in a pre-Series B round led by a fund managed by CICC Capital, with participation from Vision Plus Capital and an undisclosed industry investor. It will use the funds to accelerate the R&amp;D and commercialization of its pulsed field ablation system, 3D mapping system, and electrophysiology consumables. —<a href="https://36kr.com/p/3719908411078275">36Kr</a></li>
<li aria-level="1"><a href="https://www.comospace.com/">Comospace</a>, a provider of space-based computing and application systems, has secured RMB 100 million in an angel plus round from Shanghai Engine Fund, China Fortune-Tech Capital, SCGC, Shuimu Tsinghua Alumni Seed Fund, Gewu Zhizhi Private Fund, SEE Fund, Hongtai Aplus, Innoangel Fund, Chuanxiang Investment, and Plum Ventures. —<a href="https://36kr.com/p/3719746809492865">36Kr</a></li>
<li aria-level="1">UniAero, a satellite communications terminal developer, has raised over RMB 10 million (USD 1.4 million) in an angel round from TusStar VC, Shuimu Tsinghua Alumni Seed Fund, and SEE Fund, among others. It will use the capital for product R&amp;D and to build batch production capacity for satellite internet applications. —<a href="https://36kr.com/p/3719734856299908">36Kr</a></li>
<li aria-level="1">Nous Bot, a components supplier for embodied intelligence systems, has raised over RMB 100 million in a Series A round co-led by the Shanghai Semiconductor Equipment Material Industry Investment Fund and Spinnotec, with participation from Lenovo Capital and Ambrum Capital. Listed automotive suppliers Pengling and Kelai joined as strategic investors, while existing backer SAIC Motor Venture Capital also participated again. Nous Bot will use the funds for capacity expansion, product development, and working capital. —<a href="https://36kr.com/p/3719335512585609">36Kr</a></li>
<li aria-level="1">Gestala, a Chinese developer of ultrasound brain-computer interface technology, has raised RMB 150 million (USD 21.7 million) in an angel round co-led by Guosheng Capital and Dalton Venture, with participation from Tsing Song Capital, Gobi China, Fourier Intelligence, Liepin, and Seas Capital. Founded in January, it will use the funding to develop its first product and begin early clinical trials. —<a href="https://36kr.com/p/3718214514128514">36Kr</a></li>
<li aria-level="1">Taiyi, a quantum computing startup, has raised over RMB 100 million in an angel round led by Shanghai Engine Fund, with participation from Xunfei Ventures, JinkoSolar, Galbot, ABA Chemicals, and Houxue Investment. Founded in January, it will use the capital for product R&amp;D, team expansion, and the development of its first quantum computer. —<a href="https://36kr.com/p/3717849446659464">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Cortical Labs, TVS, Sapiens AI, and others made recent headlines:</h3>
<ul>
<li aria-level="1">Cortical Labs, a Melbourne-based deep tech company developing biological computing systems, secured an undisclosed investment in a round co-led by Horizon Ventures and 3C, with participation from Gobi Partners and Tom Oxley, founder of brain-computer interface company Synchron.</li>
<li aria-level="1">Thien Viet Securities (TVS), an investment bank, invested USD 4 million in Vietnamese electric motorbike manufacturer Dat Bike as part of the company’s Series B funding round.</li>
<li aria-level="1">Sapiens AI, a Singapore-based company, raised USD 20 million in its first funding round, at a reported valuation of about USD 100 million. The round was led by an undisclosed Singapore-based family office.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@0722vps.aieehr01.top">hello@0722vps.aieehr01.top</a>.
Note: RMB figures are converted to USD at rates of RMB 6.90 = USD 1 based on estimates as of March 17, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Deals in brief: Wavemaker Impact backs Virdalis, MetaComp and dtcpay raise funding, PixVerse reaches unicorn status, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Cambodia

Europe

<a href="https://www.aridge.com/">Aridge</a>, the flying car subsidiary of Chinese technology firm <a href="/company/xpeng">Xpeng</a>, has raised nearly USD 200 million in a new round of equity financing.
Disclosed on March 13, the round drew participation from investors including Hillhouse Capital, HongShan, Gaorong Ventures, and Fortune Capital. Hillhouse Capital and HongShan also participated in Aridge’s earlier Series A round.
In a statement shared with KrASIA, Aridge said its cumulative equity funding has reached nearly USD 1 billion to date, making it the most funded company in Asia’s manned <a href="/industry/evtol">eVTOL</a> (electric vertical takeoff and landing) industry.
The new capital will be used to support the commercialization of Aridge’s first product, the “Land Aircraft Carrier.” The modular eVTOL vehicle features an air module that can detach from and reconnect to a six-wheeled ground module for storage, charging, and road travel.
Orders for the Land Aircraft Carrier have reportedly been building since the Civil Aviation Administration of China accepted the type certificate application for its flight body in March 2024, followed by acceptance of its production certification application for the airframe in May.
Production will be centered at a manufacturing facility in Guangzhou, with a reported annual capacity of up to 10,000 air modules. As of October 2025, the global backlog for the Land Aircraft Carrier was said to exceed 7,000 orders.
<figure id="attachment_160618" aria-describedby="caption-attachment-160618" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-160618" src="https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Aridge-Factory.jpg" alt="Photo shows Aridge’s manufacturing facility." width="1920" height="1080" srcset="https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Aridge-Factory.jpg 1920w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Aridge-Factory-720x405.jpg 720w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Aridge-Factory-1024x576.jpg 1024w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Aridge-Factory-768x432.jpg 768w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Aridge-Factory-1536x864.jpg 1536w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Aridge-Factory-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-160618" class="wp-caption-text">Aridge’s manufacturing facility. Photo courtesy of the company.</figcaption></figure>
Aridge was previously known as Xpeng AeroHT and <a href="https://0722vps.aieehr01.top/xpeng-aeroht-rebrands-as-aridge-completes-first-manned-evtol-flight-in-dubai">rebranded in October 2025</a>, coinciding with a public manned test flight in Dubai, UAE. The company said the rebrand aligns with its broader globalization strategy, while founder Zhao Deli said the new name reflects its goal of “connecting sky and earth” and developing a low-altitude mobility ecosystem.
The company is considered one of China’s leading eVTOL players, alongside Nasdaq-listed EHang, known for developing one of the first autonomous passenger-carrying aerial vehicles, and Geely-backed Aerofugia, which is focused on building a <a href="https://0722vps.aieehr01.top/aerofugia-plays-the-long-game-by-focusing-on-passenger-evtol-aircraft">tiltrotor passenger eVTOL aircraft with smart cabin features</a>.
In addition to its Dubai test flight, Aridge has conducted public demonstrations in recent years to raise awareness of its technology, including a <a href="https://0722vps.aieehr01.top/xpengs-flying-car-lifts-off-in-shanghai-bringing-urban-air-mobility-closer-to-reality">high-profile test run</a> of the Land Aircraft Carrier in Shanghai’s Lujiazui district in December 2024.

Xpeng-backed Aridge raises funding to advance modular flying car production

Xpeng Motors

eVTOL Aircraft

… OpenClaw deployment experience. In the future, we may explore ways for local and cloud versions to interact or merge.
<h3>36Kr: Pony Ma has said Tencent strongly supports internal incubation of AI applications. What kind of resource support do these teams receive?</h3>
ZY: For the lightweight cloud business, the biggest support comes from computing resources.
Teams behind Tencent Docs, Tencent Maps, and the Emma knowledge base also provide a growing ecosystem of skills that expand potential use cases.
We also launched SkillHub, a skill marketplace designed to be safer and more accessible for Chinese users. It addresses issues such as overseas access failures and compliance filtering.
Different teams operate differently, but overall everyone is moving quickly within their respective domains.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3721355722684804">article</a> was written by Wang Yuchan for 36Kr.

Tencent gets bolder with agentic AI as OpenClaw sparks hype and competition

Fundraising by Southeast Asian startups remained subdued last year, with more businesses forced to shut down operations or reduced to "zombie" companies surviving without fresh capital.
According to research by DealStreetAsia, the region's startups raised USD 1.16 billion in October-December 2025, slightly down from the same quarter a year earlier. For the full year, funding increased 18% to USD 5.4 billion, but that was still about a fourth of the level seen in <a title="" href="https://asia.nikkei.com/spotlight/market-spotlight/gold-rush-asean-startup-fundraising-more-than-doubled-in-2021" target="_blank" rel="noopener">the peak year of 2021</a>.
Crunchbase data shows that global startup funding rose about 30% in 2025, highlighting that Southeast Asia has lagged in the recovery from what has been called a "<a title="" href="https://asia.nikkei.com/spotlight/the-big-story/from-grab-to-goto-southeast-asia-s-startups-weather-funding-winter" target="_blank" rel="noopener">funding winter</a>."
"We are seeing more companies consider pivoting their business or selling assets," one venture capitalist investing in the region said to Nikkei.
According to media reports, a number of the region's startups have closed since 2023, including two Singapore-based entities, biotech firm Tessa Therapeutics and fintech company Pace Enterprise, which offered "buy now, pay later" services.
One noteworthy example is Indonesia's Ula, a B2B wholesale platform for mom-and-pop shops. After years of struggle, the company formally announced the closure of its business in a social media post last August.
Once touted as a rising star in Indonesia, and having former Amazon employee Nipun Mehra as one of its founders, Ula attracted prominent investors, such as the family office of Amazon founder Jeff Bezos, Sequoia Capital, and Tiger Global, who bet on the startup's technology-driven model that would <a title="" href="https://asia.nikkei.com/business/startups/digitalizing-indonesia-s-mom-and-pop-economy-draws-investors" target="_blank" rel="noopener">reform inefficient distribution systems</a> in the emerging market.
But soon after Ula was founded in 2019, the Covid-19 pandemic disrupted its launches of sales operations and logistics hubs.
Mom-and-pop shops are scattered across wide areas, making last-mile deliveries from distribution centers costly and labor-intensive. Ula sought to improve efficiency by having shop owners pick up goods from "group pickup points" located a kilometer or two away, but achieving early profitability proved difficult.
As the fundraising environment deteriorated after 2022, Ula concluded that further expansion would be difficult and announced a temporary suspension of its business in 2023. Conditions did not improve and the company gradually shut down operations.
"By late 2022, market realities had shifted," the company said in the social media post. "We explored pivots, ran experiments, and pushed creativity, but the road to long-term profitability stayed steep."
The tougher funding environment came as global monetary tightening began in 2022. Yields on the benchmark ten-year US Treasury climbed from the 1% range in 2022 to around 5% at one point in 2023. As bond yields rise, usually in tandem with interest rates, their prices fall, and investors tend to favor lower-risk assets such as these government bonds rather than high-risk investments like startups.
"The exuberance of the earlier years seems to have been tempered by the challenging market and exit conditions," Maisy Ng, managing partner at Singapore-based Delight Capital, which did not invest in the startups mentioned above but does back others, told Nikkei. "Startups need to show that they can make money and that the business model can scale."
Takahiro Suzuki, general partner at venture capital firm Genesia Ventures, which also did not invest in the above startups, pointed out that one reason for the slow funding recovery in Southeast Asia compared to India or the West is the lack of "down rounds" in which a company raises new funds at a lower valuation than its previous round.
"Down rounds are less likely to occur in Southeast Asia," he said, explaining that in the US, Europe, and India, venture capital firms have a longer history, so their shareholders are more willing to accept down rounds because gains realized from other investments can offset the losses.
In contrast, many local funds in Southeast Asia are relatively new and lack a strong track record, making them more inclined to oppose down rounds that would reduce the value of their holdings, he said. As a result, some companies are unable to raise fresh capital, are forced to cut operating expenses and end up becoming zombies.
Worse, a few high-profile scandals involving well-funded startups, including <a title="" href="https://asia.nikkei.com/business/startups/ex-ceo-of-indonesian-aquaculture-unicorn-detained-in-fraud-probe" target="_blank" rel="noopener">accounting fraud at aquaculture tech company eFishery</a>, has fueled investor concerns over corporate governance in the region's startups.
Looking at recent large fundraising deals, a shift in sectors is evident. In the past, the startups raising large amounts of funds were digital consumer businesses, such as ride-hailing group <a title="" href="https://asia.nikkei.com/business/companies/singapore-s-grab-aims-to-triple-profit-by-2028-after-1st-year-in-black" target="_blank" rel="noopener">Grab</a> and <a href="/industry/e-commerce">e-commerce</a> group <a href="/company/sea-group">Sea</a>.
According to DealStreetAsia research, however, the biggest deal last year was USD 1.3 billion in fundraising by Singapore-based data center operator Princeton Digital Group, underscoring rising demand for the essential infrastructure for digital services driven by the growing use of artificial intelligence.
In a distant second with USD 188 million was UltraGreen.ai, which provides fluorescent technology used in surgery. The company listed on the Singapore Exchange in December.
"Regardless of market situation, we always like to invest in 'painkillers' rather than 'vitamins,'" said Delight Capital's Ng. "If a company provides a solution that solves their customers' pain instead of a 'nice-to-have' solution that can be expended with when the budget shrinks, they will always find a way through, even in difficult market conditions."
This article first appeared on <a href="https://asia.nikkei.com/business/startups/asean-startup-funding-drought-risks-creating-more-zombie-firms">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

ASEAN startup funding drought risks creating more zombie firms

… border-top: 1px solid #e8e8e8;">Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 16, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Didi’s core business remains strong as global expansion pressures earnings

Didi

… to prepare [as if the] situation in the Middle East would be a long one, which will drive up the oil costs and sequentially affect people's daily spending willingness and affect the global demand," the tech industry veteran told reporters on March 11, adding that the situation is "a big test for tech suppliers' risk management."
Kai-Chen Lo, an industry analyst with the Taiwan Institute of Economic Research, said naphtha cracker costs could rise in the short term and the supply of certain petrochemical products could be temporarily affected in light of the force majeure notices sent by Asian petrochemical companies.
Most petrochemical companies that have not yet issued force majeure notices can respond to the naphtha supply issue by adjusting inventories or sourcing alternatives for the short term, she said.
"However, if upstream supply reductions expand or persist, impacts could gradually transmit downstream to industries such as rubber and plastics raw materials and plastic product manufacturers," the analyst told Nikkei Asia. "We have to closely monitor the logistics situation and the price trends of raw materials to see how the situation unfolds."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/supply-chain/exclusive-asian-executives-flag-rising-supply-chain-risks-from-iran-war">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

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