Why Southeast Asia is underbuilt in the categories that produce its most durable companies

Southeast Asia is known for its successful consumer startups like Grab, Sea, and GoTo, which achieved massive user growth and capital investment. However, this focus on consumer success has led to the region being structurally underbuilt in the categories that produce long-lasting, durable companies. These underlying infrastructure businesses, such as supply chain software, payments rails, and logistics tooling, are critical to economic growth but are often overlooked by investors and founders.

The underdevelopment of these sectors is due to three main factors: investor capital habits, founder training, and visibility. Investors are accustomed to rewarding winner-take-all consumer stories, while founders tend to gravitate towards consumer problems that garner more attention. Additionally, these underlying industries are often invisible to the general public, even though they address more durable and defensible problems.

While consumer apps may produce headline-making viral growth, the underdeveloped sectors have the potential to create companies with lasting value for decades. Founders and investors who recognize this trend have an advantage, as vertical software companies in Southeast Asia are attracting stronger conviction due to their sustainable unit economics and high retention rates.

As the region moves towards US$130 billion in B2B digital commerce by 2026, the focus should shift towards building a robust business infrastructure underneath the consumer platforms. This shift in capital allocation will be crucial in identifying the next generation of durable Southeast Asian companies that will thrive in the long term.