APAC's time to shine as a top unicorn maker

Source: KPMG. The KPMG-HSBC Emerging Giants in Asia Pacific joint report ranks emerging giants in the region by country of origin. Most new economy startups come from China, India and Japan.

Already accounting for over a quarter of the world’s total private investment dollars, Asia Pacific (APAC) is catching up with North America as the world’s No. 1 producer of unicorns, a study from KPMG and HSBC says. Unicorns are startup businesses valued at over US$1 billion.

The KPMG-HSBC Emerging Giants in Asia Pacific joint report takes an in-depth look at new economy businesses across the region that both companies believe will make a lasting impact on the global business landscape over the next decade. Economic and investment indicators in 12 APAC markets and interviews with leading startup founders and executives were analysed, resulting in the identification of exemplary business models for future growth; as well as the conditions that will enable these markets to continue to thrive in today's business environment.  

The report has revealed that the APAC region is blazing the digital trail for the rest of the world for three reasons:

— A growing population, a growing workforce and a growing consumer class

— A fast-growing population of digital natives

— A combination of better access to the Internet, growing prosperity and improved education has created a new class of digital entrepreneurs who are uniquely positioned to identify and fill gaps in the regional market.

Two shifts are now changing the APAC growth profile, KPMG said. First, Asian economies are becoming markets in their own right as their incomes rise. Second, the ability to deliver products digitally has shifted the principal driver of regional growth from manufacturing to services.

It was also revealed that Singapore is the top destination in Southeast Asia for startup investment. According to KPMG, startup ventures based in the nation have raised over US$8.02 billion in 2021, more than double the year prior. Furthermore, the top 10 emerging giants in Singapore possess a combined value of US$3.2 billion. This places the nation in 4th place, after Mainland China, India and Japan.

Details

Download the KPMG-HSBC Emerging Giants in Asia Pacific joint report