In a new report from KPMG and HSBC, four Australian tech scale-ups – Finder, Secure Code Warrior, Omniscient and Eucalyptus – have been named the 100 leading ‘Emerging Giants’ in Asia-Pacific.
The Emerging Giants in Asia-Pacific report examined new economy companies in the APAC region with strong potential to influence the global business landscape over the next decade.
They looked at 6,472 tech-focused startups with valuations up to US$500 million in 12 markets, with ten leading emerging giant companies identified in each market. The report also names 100 leading emerging giants within the Asia-Pacific region.
China dominated the emerging giants with two-thirds (66 companies) in the top 100, followed by India (16) and Japan (5) with Australia in fourth place with the above four companies, ahead of Singapore and South Korea with three companies each.
In addition to traditional sectors related to new economy companies such as FinTech or software-as-a-service, where Australia has performed strongly in recent years, the report identified about 120 technology-related subsectors of these companies, with blockchain, smart city, and sustainability and ESG verticals are the most prominent.
In addition, six of the 12 markets surveyed had an average valuation of US$300 million or more among their leading Emerging Giants.
KPMG Asia Pacific and China Chairman Honson To said: the global pursuit of carbon neutrality will be a key driver for innovation as traditional industries go green
“Emerging giants are likely to play a key role in developing technologies that can reduce carbon emissions and promote more responsible management of the environment,” he said.
“Asia will be a crucial battlefield in the fight for a more sustainable future.”
Other key findings of the report include:
- While a repeat of record-breaking private investment levels in 2021 is unlikely, Q1 2022 figures suggest that: 2022 is on track to exceed both 2020 and 2019 funding levels in the Asia-Pacific. Australia, Malaysia and South Korea have already seen deal values pass or near 2020 totals.
- As the world’s largest fintech adoption, the Asia-Pacific region has: experiencing a boom in financial services transformation over the past two years as fintech applications progress along with user adoption. Significant interest in cryptocurrencies has also sparked a wave of crypto financial services firms and blockchain players.
- Increasing pressure for an ESG focus in business and investment strategies to meet climate targets is likely to lead to a explosive demand for green technologies and services in every industry, creating significant opportunities for emerging giants.
- The main challenges facing emerging giants include: navigating regulatory complexity and securing technology talent. Formulating effective ESG and tax strategies, leveraging government incentives and implementing dispersed workforce management processes will be cornerstones of future growth.
Darren Yong, KPMG Asia Pacific’s chief of technology, media and telecommunications, said the region’s emerging giants are bold, ambitious and groundbreaking.
“They are bold about who they want to partner with, what markets they target, how they shape their business models and transform corporate culture and mission statements,” he said.
“Perhaps most importantly, they will be transforming and pioneering the technology landscape in the coming years, as well as thinking about what is useful for their customers now.
The report also features interviews with startup founders and executives who provide insights into the challenges and opportunities they face in the region.
The Emerging Giants in Asia-Pacific reporting is available here.