Startup funding in Southeast Asia opened 2026 with a surge in deal value, powered entirely by a single $2-billion megadeal in the data centre space, even as overall deal activity remained subdued.
Startups in the region raised $2.18 billion across 25 equity deals in January, up 438.8% in value from $405.1 million raised through 41 deals in December 2025, according to data compiled by DealStreetAsia.
Strip out the $2 billion Series C round raised by DayOne Data Centers, however, and the picture looks far from rosy—total fundraising would have shrunk 55% month-on-month to just $182.6 million.
Deal count in January was down 39% month-on-month to the lowest on record, in another sign of the oversized role of DayOne Data Centers’ round rather than a broad-based pickup in fundraising.
Let us move to other top headlines from the week.
LP-GP corner
Canada Pension Plan Investment Board expanded its Asia exposure in Q3 FY2026, acquiring six industrial and logistics parks in India for about $334 million through its IndoSpace Core joint venture. The pension fund also agreed to invest up to $18.6 million in a Japanese hospitality strategy managed by SC Capital Partners, deepening its push into Asia’s tourism and accommodation sector.
Morgan Stanley’s private equity division in Asia plans to transfer some of its existing portfolios into a new secondary fund to sustain its operations in the region. If the continuation vehicle successfully closes, the firm will consider raising the next primary fund. That fund is understood to have a revised mandate, with a different geographic focus than prior vintages, likely concentrating on India.
British International Investment has surpassed its target to invest $1 billion in climate financing in India during 2022–2026. The UK development finance institution has also invested Rs 430 million in Turno, an India-based EV battery infrastructure company using lifecycle intelligence and second-life batteries, which will be used to launch ElectricGo, a new e‑bus unit.
Venture capital firm Peak XV has raised $1.3 billion in new capital commitments across its India seed, venture, and APAC funds. This closing marks the company’s first fully independent fund since its separation from Sequoia Capital in 2023.
IFC is weighing an investment of up to $75 million in GEF Capital’s South Asia Growth Fund IV, a $600 million, mid-market private equity vehicle focused on climate solutions in India and opportunistically in Southeast Asia.
JM Financial Asset Management has launched a $165 million Alternative Investment Fund (AIF) that will focus on taking equity stakes in companies expected to list within 18 months. The move marks the strategic expansion of JM Financial’s AIF division into the fast-growing pre-IPO investment space.
India-based Inflexor Ventures, which has backed spacetech firm Bellatrix and consumer appliances brand Atomberg, is raising its third flagship fund with a target of $135 million, along with a co-investment sleeve.
The latest edition of our monthly climate NL, GreenStreet, recaps the key issues and opportunities that are top of mind for investors in emerging markets.
In the weekly edition of our PE-focused newsletter, Beyond the Buyout, we look at whether Southeast Asia’s secondaries market is turning a corner and how evergreen funds are moving beyond retail to become a tool for institutions and family offices in private markets.
Deal updates
IFC is considering an equity investment of up to $8.5 million in software firm Quadric Inc. The funding is expected to be used to grow Quadric’s R&D operations in India, particularly its technology hub in Pune.
Consumer-focused private equity firm DSG Consumer Partners is set to make its first investment in an Asia-Pacific live entertainment platform.
Stable Money, a wealthtech startup in India, has raised $25 million in a pre-Series C funding round at a valuation of $175 million, led by Peak XV Partners. The funding also saw participation from Z47 (formerly Matrix Partners), RTP Global, and Fundamentum Partnership.
Fabless semiconductor startup Vervesemi has raised $10 million in a Series A funding round led by Ashish Kacholia and Unicorn India Ventures. The round also included participation from Roots Ventures, Caperize Fina, and MAIQ Growth Scheme.
A consortium of investors, comprising Blackstone, has agreed to invest equity capital of up to $600 million in Nesya, an India-based cloud startup. The company also plans to secure an additional $600 million in debt financing.
Jollibee Food Corporation, the biggest fast-food chain in the Philippines, has agreed to buy South Korea’s All Day Fresh, which owns the hot pot and eat-all-you-can chain Shabu All Day, for about $87 million. Elevation Equity Partners Korea, which is focused on mid-market buyouts and growth capital opportunities, is Jollibee Food’s strategic partner in the deal.
China has recorded its biggest financing in a private company developing commercial rockets—iSpace has amassed $729.1 million in a Series D extension round co-led by domestic investment firms Cowin Capital and Jingming Capital. The financing comes as iSpace moves towards an IPO on the STAR Market.
Earnings
Tricog Health, a cardiac diagnostics firm with operations in India, narrowed losses in FY 2025, as revenue jumped nearly 45%. Tricog, which provides virtual cardiology services to remote clinics, had raised fresh funding across two transactions in October last year.
Singapore-based wealthtech startup Chocolate Finance generated a revenue of $4.2 million and posted a net loss of $5.2 million in its first full commercial year. In 2026, the firm plans to accelerate growth and expansion.
Analyses and interviews
Vietnam’s push to anchor its next growth phase in science, technology, and digital transformation is driving fresh capital into data centres, highlighted by a $1-billion partnership between G42 and a consortium led by FPT Corporation. Although Vietnam has 41 operational data centres with 221 MW of designed capacity, the market is highly concentrated among four domestic operators, creating a potential opening for private equity and infrastructure investors.
Traditionally, IT and technology companies have grabbed the lion’s share of private equity investments in India. But the trend is gradually shifting. Consumer-focused businesses—particularly in the food sector—are stepping into the spotlight, driven by changing buying habits and growing domestic demand. In January, two of the five largest investments were into food companies, according to data from Grant Thornton Bharat.
Indonesia-based venture debt firm Qverse is stepping beyond its mandate, rolling out a private credit strategy that allows it to write larger cheques and back acquisition-driven growth, as it prepares to expand regionally with a Singapore office.
Southeast Asia’s private education sector has been witnessing robust M&A activity in recent months, driven by private equity-led transactions and an expanding deal pipeline. The APAC region is increasingly emerging as an alternative study destination, particularly for students from India and China, amid tighter visa policies and regulatory restrictions in traditional English-speaking markets.
