Why AI isn’t crushing SaaS in SEA

Welcome to Tech in Asia's daily newsletter, your essential dose of Asia's tech and startup buzz. Subscribe to this newsletter or send story tips to editors@techinasia.com. Ensure our articles appear in your Google searches:

IN FOCUS

How Southeast Asia's SaaS sector is surviving the AI era
We put the spotlight on Bukalapak’s leadership reshuffle as it hits profit
Ant International eyes US$1b war chest

Hello Betamax,

For years, software-as-a-service has been Southeast Asia's safest startup bet. Then came generative AI, and the change was impossible to miss.

Across boardrooms and pitch decks, AI has rapidly replaced SaaS as the trendy investment.

Yet beneath the hype, the region's software sector looks very different from that of Silicon Valley. The dominant narrative in the US has been that AI will kill traditional software companies. Some have called it the "SaaSocalypse."

But in Southeast Asia, the reality is more complex.

Many enterprises are still early in their digital transformation journey. Software adoption remains fragmented across markets, and customer relationships are often built through local sales teams. This has given incumbent SaaS companies more protection than their Western counterparts, as local know-how remains a necessity.

Investors may be chasing AI, but the funding data tells a more nuanced story. SaaS deals are still getting done. Deal volume beyond series A is higher this year than in 2025, and it is likely to touch the peak of 12 rounds in 2020 before 2026 ends.

Today's featured story explores how AI is reshaping the region's SaaS sector, and why reports of its death may be exaggerated. Also, we take a look at the leadership reshuffle at profitable Indonesian ecommerce player Bukalapak.

Samreen Ahmad, journalist

TOP STORY

AI's SaaS threat looks different in Southeast Asia

The era of easy-growth SaaS may be over, but the vertical is far from disappearing in Southeast Asia. Instead, it is being reshaped.

Investors who once prioritized pure-play SaaS are now chasing AI, prompting many software startups to reposition themselves as AI-first companies.

It's no surprise, then, that of the eight Southeast Asian SaaS startups that closed series A rounds and beyond in 2026, at least four - Topview AI, Agnes AI, Mozark AI, and Scalestack AI - have explicitly positioned themselves as AI-first firms.

FROM OUR ARCHIVES

Why SaaS is dying and service as software is rising

Southeast Asia's SaaS market may be showing regional resilience to the sweeping changes of AI (for now), but the global trajectory is hard to ignore.

In this piece from earlier this year, venture capitalist Kevin Brockland argues that the industry is moving toward "service as software" - AI that delivers outcomes rather than tools for humans to operate. As Southeast Asia's SaaS players increasingly reposition as AI-first, his framework for what the shift actually demands from founders and investors is worth revisiting.

SPOTLIGHT

Bukalapak's profit reshuffle

The ecommerce company has appointed its CFO, Natalia Firmansyah, as acting CEO, replacing Willix Halim. Our piece from 2025 provides some important context for this change.

When Bukalapak stopped selling physical goods in early 2025, management was effectively betting that a leaner virtual goods business and a large cash reserve would generate sustainable profits. The strategy appears to have paid off, with the firm posting its first annual profit in 2025, after years of losses.

Firmansyah oversaw Bukalapak's finances as CFO during that transitional phase.

The round, which would value Ant International at US$10 billion, could support the company's preparations for a Hong Kong listing this year. It has reportedly approached investors, including existing shareholders General Atlantic and Silver Lake.

2️⃣ BYD aims to become world's largest automaker in 5 years

The Chinese company's exports rose 65% year on year from January to May. Still, it did not offset weaker domestic performance, as total vehicle deliveries fell more than 20%.

3️⃣ Singapore's STT GDC expands Jakarta data center campus

The company says the move brings its Indonesia development pipeline to more than 360 megawatts of AI-ready, sustainable IT capacity. This will, in turn, make STT GDC one of the larger developers in Jakarta's data center market.

4️⃣ Visa expands AI commerce push with OpenAI partnership

Transactions in this partnership could use tokenized Visa credentials tied to specific AI agents and use cases. These credentials would support both developers and merchants.

5️⃣ South Korea fines Coupang $409m over data leak

The breach occurred after a former employee hacked into the company's system. The penalty sets a national record in a privacy case.

PRESS PEEKS

The following press releases were published as they were received, without any editing from the Tech in Asia team. You, too, can publish your own press release on our site by simply filling out this form. Our team will get back to you by the next business day.

eclicktech - Chinese Adtech Firm eclicktech brings Qwen-powered AI Agents to Singapore, Cuts Marketing Ops Costs by 30%: eclicktech has showcased its AI Agent system at Qwen Conference, cutting costs by 30% and boosting efficiency by 50%.
Mobvista - Mobvista (1860.HK) Welcomes Temasek as Major Shareholder: Temasek has established an equity position in the company valued at US$150 million
Cornerstone - APJ Organisations Losing Millions Annually Due to Workforce Culture and Capability Gaps, Cornerstone Report Finds: Eight-market study quantifies the workforce cost APJ leaders are not measuring

EVENTS HAPPENING

You can also check out our curated list of trending tech events and Tech in Asia's signature events.

Singapore's Top Fintech Companies 2027

Tech in Asia and Statista are proud to announce that applications for Singapore's Top Fintech Companies 2027 are now open. The award celebrates fintech companies shaping the future of financial services in the city-state, while offering greater visibility among industry stakeholders, investors, partners, and the wider tech ecosystem.

Apply now to be recognized among Singapore's top fintech companies for 2027.

TIA Conference 2029

For over a decade, Tech in Asia Conference has been the arena where the region's most influential CTOs, VCs, and founders gather to solve problems that truly matter. We have built our reputation on being the definitive platform for innovation, even in challenging market conditions.

Secure your seat among 1,500 of the region's most serious builders and enterprise leaders.

WHO'S HIRING

You can post a job here or search for jobs here.

Associate Product Manager (Remote) at Happy5 | Jakarta, Indonesia
Reporter News at Kumparan | Jakarta, Indonesia
Fullstack Developer (Golang, React Js, Typescript) - English Speaker at SIGMATECH | Jakarta, Indonesia

| | |

P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox.

Tech in Asia thanks our partners for supporting our newsletters. Sponsorship has no influence on editorial content.

Too many emails?
Switch to a different frequency or get new content through our preference center, or unsubscribe.

You can also remove yourself from all Tech in Asia emails over here.

[Beta]MaxMind

Cari Blog Ini