India’s car market is undergoing a digital revolution, and Southeast Asia (SEA) would do well to take notice. In 2024, for the first time, used car sales in India outpaced new car sales—5.41 million used cars compared to 4.16 million new vehicles. This milestone is not just a statistical anomaly—it signals a transformative shift powered by technology, consumer behaviour, and digital trust.

The catalyst behind this surge is the rapid adoption of online platforms, which has transformed a traditionally fragmented and offline sector into a dynamic digital ecosystem.

These platforms offer consumers more than just listings. They provide transparent pricing, verified vehicle history reports, doorstep delivery, and seamless financing—all within a few taps on a smartphone. The shift to online car sales feels almost inevitable in a country where internet and smartphone penetration continue to grow.

But this is not just about convenience. The Indian market has shown that trust is the real currency in digital car sales. These platforms are tapping into the rising demand for affordable and reliable transportation by making the process transparent and less intimidating for first-time buyers. Amid economic uncertainty, consumers increasingly turn to used vehicles, drawn by their lower price points and the growing confidence in digital verification systems.

SEA is experiencing a similar digital inflexion point, and Indian companies are already taking the lead in exporting this successful model. One standout is CarDekho SEA, the regional arm of India’s CarDekho Group.

Headquartered in Singapore, CarDekho SEA has rapidly established itself in six countries: Indonesia, the Philippines, Singapore, Malaysia, Thailand, and Vietnam.

Since its founding in 2020, CarDekho SEA has recorded over 200,000 disbursements and surpassed US$1 billion in gross merchandise value (GMV). Backed by Navis Capital Partners and Dragon Fund, the company recently raised US$60 million in external funding, pushing total capital past the US$100 million mark.

CarDekho SEA’s asset-light marketplace model and robust tech-driven loan processes are tailored to the complexities of Southeast Asian markets. With over 50 financing partners and 20,000 dealers and agents, the company has grown its GMV 50-fold in just three years. Indonesia alone holds a three per cent market share in the used car financing segment.

The platform’s success hinges on localisation and innovation. CarDekho SEA’s brands—OTO in Indonesia, and Carmudi and Zigwheels in the Philippines—offer financing, refinancing, and dealer inventory funding. The company plans to extend this ecosystem further with services like auto insurance, extended warranties, and EV financing.

With AI and machine learning at its core, CarDekho SEA’s systems help mitigate fraud and credit risk, offering data-driven insights to financial partners.

Moving forward, one of the company’s major priorities is strengthening its B2B2C model—providing inventory funding to dealer partners and expanding distribution networks. These efforts aim to build the same digital trust and customer convenience that are commonplace in India’s car sales market.

So, what can Southeast Asia learn from India’s success story?

Digital trust is non-negotiable

Transparent pricing and verified listings are essential to winning over customers.

Fintech integration is critical

Combining auto listings with financing options turns browsers into buyers.

Partnerships drive scale 

Collaborations with financiers and dealers create an ecosystem that benefits all stakeholders.

Technology reduces friction

AI and automation help streamline loans and reduce risk.

SEA’s demographics and growing digital adoption mirror India’s trajectory. With the right platforms and policies, the region could witness a similar leap in online car sales, led by players like CarDekho SEA.

Want to dive deeper into how India’s digital transformation is shaping the future of car sales in Southeast Asia?

Join us for the fireside chat: “Automotive Innovation Across Borders: What Southeast Asia Can Learn from India’s Digital Shift”

Tuesday, 10 June
11:30 AM – 12:00 PM
Future Stage, Echelon Singapore 2025, Suntec Singapore

Speakers:
Umang Kumar, Co-Founder & CEO, CarDekho SEA
Moderator: Anisa Menur Maulani, Editor, e27

Don’t miss this opportunity to gain exclusive insights from a market leader transforming how SEA buys and sells cars!

The post What Southeast Asia can learn from India’s digital shift in car sales appeared first on e27.

Startups in Asia-Pacific and the Middle East (APAC and ME) are shifting away from the aggressive expansion strategies of the past. New data from private companies on the Carta fund administration platform shows a more cautious approach to hiring and equity distribution, marking a new phase in the region’s startup evolution.

Hiring slows, departures rise

Between 2019 and 2022, startup hiring across APAC and ME surged, with new hires growing by 423 per cent—far outpacing the 115 per cent increase in departures. However, this trend has now reversed.

In 2024, hiring activity remained 131 per cent above 2019 levels, but departures (including resignations and layoffs) rose by over 400 per cent. The ratio of hires to departures dropped to 2:1, down from 10:1 in 2021–2022—reflecting a significant contraction in workforce expansion.

Also Read: ‘In innovation, diversity is not just beneficial but essential’: Tan Lee Chew of ST Engineering

This trend mirrors global patterns as companies respond to economic uncertainty and recalibrated investor expectations. For the third year in a row, departures have increased, a sign that the post-2022 market correction continues to affect headcount decisions.

Bigger teams than the US—at every stage

Despite the slowdown, startups in APAC and ME tend to run larger teams than their US counterparts. A Series B company in the region has a median headcount of 53, nearly double that of the US.

At earlier stages, APAC and ME startups still staff more heavily:

• Pre-seed: 4 employees
• Seed: 8 employees
• Series C+: 81 employees

This may suggest greater conservatism among US startups or better integration of automation and AI tools that support scaling with leaner teams.

Industry matters: SaaS leads, biotech lags

Hiring patterns differ significantly across industries. SaaS companies, for example, employ a median of 11 staff at pre-seed or seed—more than five times that of biotech and pharma startups. These variations reflect the shorter R&D cycles in software compared to capital-heavy sectors like life sciences.

Equity grants shrink across the board

Since 2021, the median initial equity grant size in APAC and ME has dropped by over 30 per cent, echoing a similar trend in the US. The market appears to have settled into a new normal after years of inflated valuations and compensation packages.

Early hires still receive a premium:

• First three hires: 0.18–0.39 per cent of fully diluted equity
• Hires #4–10: 0.05–0.10 per cent

While the tiered structure remains consistent with the US, APAC and ME startups generally grant less equity per hire—about half as much compared to US firms.

Equity more evenly distributed across roles

Entry- and mid-level employees across most functions typically receive 0.01–0.02 per cent of total equity. The median grant in engineering, marketing, and customer success is about 0.017 per cent.

Also Read: ‘Talents tend to overlook imperfect company cultures if salary meets their expectations’

At the higher end (75th percentile), engineering roles still command larger equity packages, but the gap is narrower than in the US. In fact, APAC and ME startups distribute equity more evenly across job functions, while US startups tend to heavily favor engineering and product roles.

Advisors and Board members still receive generous grants

Advisor equity starts high and decreases as startups mature:

• Pre-seed advisor: 0.624 per cent median grant
• Later-stage advisor: 0.041 per cent
• Board members typically receive around 0.46 per cent equity—less than early advisors but more than those who join later.

ESOPs stabilise after seed stage

Employee Stock Option Pools (ESOPs) in APAC and ME increase sharply from 7.3 per cent at pre-seed to 11.2 per cent at seed but then plateau between 11–13 per cent through Series C+.

In contrast, US startups continue expanding ESOPs at later stages, reaching around 17.6 per cent at Series C+. This suggests APAC and ME companies may be relying less on equity-based incentives as they scale.

ESOP size varies by industry and geography

Sectoral differences are stark:

• Adtech/edutech: ~12 per cent ESOPs
• Healthtech: <7 per cent

Regionally, Australia and New Zealand (ANZ) startups allocate more to ESOPs than those in East and Southeast Asia (ESEA) or Middle East and South Asia (MESA). Possible drivers include:

• Stronger tech talent competition in ANZ
• Tax benefits for ESOPs in Australia

Vesting terms: Standardised yet evolving

Most startups in APAC and ME follow global standards:

• 4-year vesting
• 1-year cliff, then monthly vesting

From 2020–2024, over 80 per cent of equity grants on Carta included a cliff. Yet around 20 per cent had no cliff, hinting at growing flexibility to boost retention or adapt to employee expectations.

Monthly vesting remains the dominant structure, used in 55 per cent of grants.

Option exercise rates decline sharply

Although equity remains a core compensation tool, option exercise rates have dropped since 2021—even when the strike price is lower than fair market value (FMV).

Only 28 per cent of eligible options were exercised in 2024, down from 60 per cent in 2021. This decline suggests reduced confidence in equity as a wealth-building tool or rising caution among employees amid uncertain exit outcomes.

Regional differences in exercise behaviour

Option exercise rates vary widely across subregions:

• MESA: 14.5 per cent
• ESEA: 22.8 per cent
• ANZ: 51.8 per cent

ANZ employees outpace even the 32.2 per cent US average, showing that local tax regimes, personal finance norms, and startup liquidity events may influence exercise decisions.

Lower dilution in APAC and ME

At Series A, founders in APAC and ME give up 18.2 per cent of equity on average, compared to 20.8 per cent in the US. This allows local founders to retain greater control moving into Series B.

Also Read: Blockchain engineering salaries in Asia see 5.41% drop: report

At later stages, US startups show greater variability in dilution, while APAC and ME companies tend to follow more standardised deal structures—suggesting more predictable fundraising norms across the region.

A more disciplined era

The data reflects a more disciplined, risk-aware startup culture emerging in APAC and ME. Companies are prioritising leaner teams, recalibrating compensation, and standardising equity practices in response to global headwinds and regional realities.

As the ecosystem matures, founders and employees alike are adapting to a post-growth-at-all-costs world—one where equity is still central but wielded with greater precision.

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The Indonesian government has announced an extension of its reduced income tax rate for micro, small and medium enterprises (MSMEs) through the end of 2025, according to CNBC Indonesia.

Originally set to expire this year, the 0.5 per cent income tax rate—first implemented in 2018—will continue to apply to qualifying MSMEs as part of the government’s broader effort to support the sector.

Additionally, enterprises with annual revenues below IDR500 million (US$30,000) will continue to benefit from a zero per cent income tax rate. This includes informal businesses such as street food vendors.

Febrio Nathan Kacaribu, Head of Fiscal Policy at the Ministry of Finance, said the move aims to safeguard business continuity for millions of MSMEs across the country. “The extension is intended to help MSMEs maintain the sustainability of their businesses,” he stated.

The government has not indicated whether this will be the final extension of the scheme.

Also Read: Small business, big impact: How AI is democratising entrepreneurship

MSMEs form the backbone of the Indonesian economy, accounting for over 60 per cent of the country’s GDP and employing the majority of the labour force. However, many remain financially vulnerable and are still recovering from the impacts of the COVID-19 pandemic and recent macroeconomic headwinds.

Digitalisation has emerged as a crucial strategy for growth among smaller enterprises, yet barriers such as cost and access to digital tools remain. The tax incentive is expected to alleviate some of these challenges.

Ryan Gondokusumo, CEO of Sribu, a platform that connects businesses with freelancers, welcomed the policy decision.

“The tax incentive will allow SMEs to invest in digital marketing and strengthen its online presence,” he said in a press statement. “Digitalisation is more than just a survival mechanism; it is a key for SMEs to thrive in this rapidly changing market.”

For many SME owners, particularly those operating in rural or informal sectors, digital marketing has remained out of reach due to limited budgets and technical capacity.

Stakeholders hope the extended tax benefit will provide room for reinvestment in essential areas such as online platforms, social media outreach and e-commerce infrastructure.

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Image Credit: Eka Sariwati on Unsplash

The post Indonesia to extend tax incentive for MSMEs through 2025 appeared first on e27.

e27 has been nurturing a supportive ecosystem for entrepreneurs since its inception. Our Contributor Programme offers a platform for sharing unique insights.

As part of our ‘Contributor Spotlight’ series, we shine a spotlight on an outstanding contributor and dive into the vastness of their knowledge and expertise.

This episode features Marcus Loh, Director at Temus, where he oversees strategic communications, public affairs, and marketing. Previously, he was Group Executive Director at global communications firm Waggener Edstrom Worldwide and served as President of the Institute of Public Relations of Singapore from 2019 to 2021.

A strong advocate for corporate philanthropy, Loh is a Fellow of NVPC’s Company of Good initiative and sits on several boards, including the UOB-SMU Asian Enterprise Institute and SGTech’s Digital Transformation Chapter. He also serves as Patron of Every Child Matters, a charity promoting STEM access for children from vulnerable backgrounds.

Thoughts, goals, and journey

Loh spent over two decades helping global tech multinationals expand their business and brand presence across Asia Pacific before joining Temus, established by Temasek as Singapore’s digital services champion, three years ago. His motivation was clear: to help build a technology company that Singapore could proudly call its own.

“It’s been a rewarding journey: we’ve doubled in performance year-on-year since our founding, built a strong reputation in the marketplace, and delivered economic and societal impact for our clients, our people, and Singapore’s Smart Nation aspirations,” said Loh.

“I build brands and businesses—and I’m passionate about how that work can contribute to societal good,” said Loh about his broader purpose. “At Temus, for example, we’re deeply involved in workforce transformation within tech.”

He said his CEO, Ng Lai Yee, often reminds the team that digital transformation isn’t just about technology. “It’s about humanising digital capabilities to unlock the full potential of people. That belief drives initiatives like our career conversion programme, Step IT Up Singapore, and our work designing AI-enabled platforms that put users first.”

“We’re asking important questions,” he added. “Why should user experience matter more than just digital efficiency? And how does that principle apply across sectors like defence, carbon finance, health, and the public sector? These are the shifts we’re excited and privileged, to shape as a digital champion for Singapore and beyond.”

Also Read: Bridging science and impact: The entrepreneurial journey of Chervee Ho

The driving force

“It’s a pleasure to be part of the programme,” said Loh about joining the e27 Contributor Community. “e27 is a fantastic platform for thought leadership in the startup and tech ecosystem. From Singapore’s vantage point as a small but globally connected economy, I see an opportunity to share perspectives that reflect this strong sense of interconnectedness.”

Since joining in 2023, Loh has become a thoughtful voice in our community, sharing 10 opinion pieces that reflect both depth and clarity. His advice to budding thought leaders draws from his experience in communications and his personal writing practice.

• Be honest about your circle of competence.
• Let your writing come from clear thinking and a genuine desire to help others understand a complex world.
• Don’t be reactive; take time to reflect and form a point of view.
• Always explain the “so what” behind your argument.
• Edit with discipline — or as his journalist partner puts it, “edit with no mercy.”
• Keep a journal or blog to capture and refine your thoughts over time.

Juggling too many things?

“I’ve found that certain activities like weekend reading, writing, teaching at Singapore Management University, and volunteering for causes that align with my values really enrich my mission at Temus,” Loh said.

“For instance, leading Step IT Up and helping set up digital clubs in the community to support Singaporeans, especially seniors, through the country’s digital shift has kept me grounded, both in the real concerns around digital literacy and the broader aspirations for digital mastery.”

Outside of work, these pursuits also reflect Loh’s approach to maintaining work-life balance, integrating personal values and community involvement with professional goals to stay focused and energised.

Also Read: Bridging science and impact: The entrepreneurial journey of Chervee Ho

Staying in the loop

“Reputation building doesn’t happen in a vacuum,” Loh said. “I have to stay plugged into developments at the global, regional, and local levels, across business media, tech analysis, and policy discourse. Just as important is engaging through speaking engagements, industry forums, communities of practice, and ongoing consultations with policymakers to stay connected with where the field is heading.”

He recommends Team of Rivals by Doris Kearns Goodwin, a book given to him by the founding member at Temus who hired him. The book highlights Abraham Lincoln’s leadership qualities, such as strategic patience, moral clarity, and the ability to turn rivals into allies. Loh believes it offers a lasting lesson in leadership.

Loh stays informed by reading a variety of sources. His daily news consumption includes The Straits Times, Business Times, Financial Times, Foreign Policy, The Diplomat, Asia Times, The Atlantic, and, of course, e27.

Closing thoughts

Loh shared three final points to leave with readers:

First, he noted that Singapore’s Smart Nation and NAIS 2.0 strategies reflect a long-standing national ethos, emphasising that the nation’s edge lies in its people, not just platforms.

Second, he expressed his hope that Singapore’s artificial intelligence revolution would be accompanied by an evolution in social intelligence.

Finally, he pointed out that history has never been kind to city-states, but through social learning, cultural transmission, and collective intelligence, Loh believes Singapore can continue to defy the odds.

Take a look at her articles here for more information and perspectives on her expertise.

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Join the e27 Contributor Programme and become a valuable voice in our ecosystem.

The post Grounded in values, driven by impact: Marcus Loh on building with purpose in the digital age appeared first on e27.