Southeast Asia’s digital economy is on track to surpass $300 billion in gross merchandise value (GMV) this year, with revenue forecast at $135 billion, according to the 10th e-Conomy SEA report by Google, Temasek, and Bain & Co.
“Surpassing the $300-billion GMV milestone by 2025—1.5x our ambitious forecast from a decade ago—firmly validates that Southeast Asia’s potential is even greater than we imagined,” said Sapna Chadha, vice president for Southeast Asia and South Asia Frontier at Google.
The report—expanded this year to cover 10 ASEAN markets by adding Brunei, Cambodia, Laos, and Myanmar—shows the region sustained a 15% year-on-year growth in GMV and revenue in 2025, amid broadening profitability.
Over the last 10 years, the region has logged 7.4x GMV and 11.2x revenue growth, attracted $120 billion in private funding, and added more than 200 million Internet users. About three in five people now shop online, and over 60% of payments are digital, the report said.
“Funding levels in Southeast Asia’s digital economy have stabilised as investors are continuing to emphasise a focus on quality growth and efficient capital allocation over absolute capital deployment,” said Fock Wai Hoong, head, Southeast Asia, at Temasek.
Investors, regulators, and management teams of companies must work together to drive sustainable growth, operations, and governance among businesses, Hoong added.
Food delivery platforms are mostly profitable or near breakeven after cutting logistics costs. GMV is forecast at $23 billion and revenue near $2.4 billion next year, supported by faster-growing ad sales and subscriptions.
Revenue in the transport sector is also expected to hit $1.9 billion, with $11.5 billion in GMV, helped by tiered services and in-app ads.
Online travel, on the other hand, is projected to hit $51 billion in GMV and $24 billion in revenue, aided by high airfares and visa waivers that lifted Chinese and Indian arrivals to Indonesia, Malaysia, and Vietnam.
The rise of retail media networks, increasing maturity of video commerce, and AI-powered ad formats are also expected to boost online media’s GMV this year to $34 billion.
In the digital finance space, the report noted that digital financial services are moving beyond payments into lending and wealth. Financial inclusion is widening via embedded lending aimed at underserved users and tighter regional connectivity.
All 10 Southeast Asian markets now run national unified QR systems, and eight support cross-border QR interoperability, the report said.
The region’s private funding rose about 15% year-on-year to roughly $8 billion, led by late-stage rounds and deals in digital financial services that account for about half of value.
Early-stage activity continued to contract; growth-stage deployment was steady year-on-year, but with larger average tickets. The report said the increase in late-stage investments—the largest since the second half of 2023—has been driven by both private equity activity and corporate investments.
“While early-stage funding continues to contract, growth-stage deployment stabilised YoY compared with H1 2024. The number of growth-stage investments fell YoY, but the average deal size of growth-stage investments has increased, showing discipline and greater concentration of capital into higher quality businesses,” the report said.
Singapore’s digital economy remains a regional bellwether, with GMV projected at $29 billion in 2025, a 7% increase year-on-year, on the back of strong momentum in key sectors.
Among the city-state’s sectors that will see growth this year is Transport & Food, which is set to expand 12% to $6 billion. Online Media may rise 13% to $3.4 billion, while video commerce is accelerating in local retail.
The country’s digital lending loan books are expected to climb 12% to $30 billion, and digital wealth AUM is forecast to increase 22% to $44 billion in 2025, aided by digital banks’ ecosystem partnerships.
The report also noted that Singapore leads regional AI financing with $1.31 billion in private AI funding.
“Singapore continues to anchor Southeast Asia’s digital economy. Its early momentum in scaling AI capabilities can unlock a broader regional opportunity to turn transformation into lasting economic value and build into another decade of growth ahead,” said Florian Hoppe, partner, Bain & Company.
The report said AI is a bright spot for investors in Southeast Asia, with more than $2.3 billion invested in the region’s over 680 AI startups, accounting for over 30% of private funding value in the first half of 2025, over the last 12 months.
