Singapore Leads the FT 2024 Ranking for High-Growth Startups in Asia-Pacific
For decades, Singapore has been a premier destination for entrepreneurs and investors worldwide seeking to operate in the Asia-Pacific region or manage global business operations. As a trading hub between the East and the West, the island nation has attracted businesses due to its strategic location within Southeast Asia, supportive government policies, strong legal frameworks, and a diverse workforce comprising both local and foreign talent. Recently, Singapore's appeal as a business base has been further enhanced by its neutral status between the US and China, which is attractive to companies looking to shield themselves from geopolitical and supply chain disruptions.
Consistently ranked among the best countries for doing business, Singapore now stands out in the recent Financial Times (FT) 2024 ranking for having the highest number of fast-growing startups in the Asia-Pacific region. This blog post explores the details of the new FT ranking, the key factors that have propelled Singapore to the forefront of the startup ecosystem, and the success stories of its top high-growth companies.
FT ranking: High-Growth Companies Asia-Pacific 2024
The Financial Times recently published its High-Growth Companies Asia-Pacific 2024 ranking. This is the sixth annual list of high-growth companies in the Asia-Pacific region, compiled by FT in collaboration with Statista, the data company. The ranking includes 500 companies that achieved the highest percentage growth in revenues between 2019 and 2022.
The project was promoted online and in print, inviting all eligible companies to register via websites created by Statista and the Financial Times. Additionally, Statista conducted extensive research in company databases and other public sources to identify tens of thousands of potential candidates in the Asia-Pacific region. These companies were invited to participate in the ranking by post and email. The application phase ran from June to October 2023, during which the submitted revenue figures had to be certified by the company’s chief financial officer, chief executive, or a member of its executive committee.
Criteria for Inclusion
To be included in the list of fast-growing companies in the Asia-Pacific region, a company had to meet the following criteria:
Revenue of at least $100,000 generated in 2019 (or currency value equivalent as of 2019).
Revenue of at least $1 million generated in 2022 (or currency value equivalent as of 2022).
Revenue growth between 2019 and 2022 that was primarily organic (i.e., internally generated).
An independent company (not a subsidiary or branch office of any kind).
Headquartered in one of these 13 territories: Australia, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Calculation of Growth Rates
The calculation of growth rates was based on the revenue figures submitted by the companies in their respective national currencies. For better comparability, the revenues were converted into US dollars.
Results
The IT and software startups lead the ranking this year, accounting for 30 percent of the companies listed. Following closely is the fintech, financial services, and insurance sector, which represents 8 percent of the companies.
Singapore stands out as the city with the most fast-growing companies in this year’s ranking, hosting 93 companies. This places it just ahead of Seoul, which has 90 companies, and Tokyo, with 71 companies. This remarkable achievement highlights Singapore's dominance in fostering high-growth startups in the Asia-Pacific region.
Why Singapore? Insights from Top High-Growth Companies
Singapore's growth startups included in the FT 2024 ranking are varied, spanning sectors such as manufacturing, artificial intelligence, software, commodities, and healthcare. This diversity underscores the breadth of businesses that the city-state can support. Below are the stories of some of these startups and the reasons they chose Singapore as their base.
Lionsbot, a Singapore-based manufacturer of cleaning robots, ranks 23rd in the FT 2024 list with a Compound Annual Growth Rate (CAGR) of 178 percent from 2019 to 2022. Co-founder Dylan Ng highlights Singapore's neutral status as a key advantage, likening it to "the Switzerland of Asia." This neutrality is crucial in the current global geopolitical climate, offering a stable and law-abiding environment. Although the majority of Lionsbot's customers are outside Singapore, the company benefits from the city-state's strategic location, talent pool, and strong legal framework. After raising $35 million in a series A funding round, Lionsbot is now focusing on expanding into overseas markets, including the US and Europe.
iCare, ranked 65th with a CAGR of 115 percent, provides essential appliances like washing machines, refrigerators, and rice cookers to low-income female factory workers in countries such as Laos and Cambodia. Co-founder Pablo Alonso Caprile, based in Cambodia, cites Singapore's high reporting and accounting standards as a significant benefit, offering a "layer of safety" for investors.
Despite not having operations or core employees in Singapore, iCare uses the city-state as a base for its simplified paperwork and robust investor confidence. Singapore also serves as a crucial fundraising hub, with many of iCare's investors based in the city-state.
Skrya, ranking 10th, helps clients recycle valuable materials like palladium, rhodium, and platinum through its app, Catalopedia, which uses AI and 3D technology for pricing. CEO Sivakumar Avadiar emphasizes Singapore's stable reputation and ease of company setup as key factors for choosing it as their base. Skrya, which is profitable with facilities and a team in Singapore, plans to expand internationally by opening a new plant in India, potentially adding $30-$40 million in revenue. However, Avadiar notes that the rising cost of doing business in Singapore, particularly manpower costs, poses a challenge.
X0PA AI, a tech startup that uses AI and automation to enhance hiring processes, has faced a tougher environment recently due to market corrections. Founder Nina Suri notes that while Singapore's ecosystem, including resources, talent, and government support, made it a "no brainer" to base the company there, sustainable growth requires expansion beyond Singapore. Currently, X0PA AI is fundraising through a second series A round and aims to break even this quarter, with profitability expected by the end of 2024. The company is focusing on growth in Europe, the Middle East, and Africa, along with the US, supported by government grants for overseas expansion.
Doctor Anywhere, initially a primary care tele-health startup, is now expanding its offline presence with new facilities like health screening and imaging diagnostics. Ranked 55th with a CAGR of 124 percent, the company benefits from Singapore's reputation for top healthcare, attracting regional clients. Co-founder Wai Mun Lim states that building the business in Singapore first has allowed them to establish legitimacy and a strong foundation before replicating services in other countries like Malaysia and the Philippines. Despite the trend of expanding beyond Singapore, Doctor Anywhere sees significant opportunities within the local market as well.
Conclusion
As we can see, Singapore's status as a leading hub for high-growth startups is no coincidence. The city-state offers a unique blend of advantages that make it an ideal base for both new startups and established businesses. Its strategic location, neutral political stance, and stable economic environment provide a strong foundation for companies looking to scale their operations. Moreover, Singapore's robust legal frameworks, supportive government policies, and access to a highly skilled talent pool further enhance its appeal as a global business destination.
The success stories highlighted in the FT survey showcase the diverse opportunities available in Singapore across various sectors. Whether you're involved in manufacturing, trade, AI, software, healthcare, or any other industry, Singapore offers the resources and support needed to thrive in today's competitive business environment.
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