From record-breaking startup funding rounds to breakthrough AI and robotics, and the rise of small businesses, here’s a comprehensive roundup of Asia’s most impactful business, economic, and technology news for the last week of May 2025.
1. South Korean Markets Lead Asia-Pacific Gains Amid Trade Tensions
South Korean stocks surged by 2% early in the week, leading gains across the Asia-Pacific region. This positive momentum followed the U.S. President’s decision to extend the deadline for 50% tariffs on European Union imports, which had previously cast uncertainty over Asian export markets. The Kospi index rose by 0.55%, and the smaller-cap Kosdaq jumped 0.95%, signaling renewed investor confidence despite ongoing global trade tensions.
2. Airwallex Raises $300 Million, Expands Global Ambitions
Singapore-based fintech giant Airwallex secured $300 million in Series F funding, pushing its valuation to $6.2 billion. The company plans to deepen its payments infrastructure and expand into Latin America, the Middle East, Japan, and Korea. This round underscores investor confidence in Asia’s fintech sector, even as overall venture funding slows.
3. China’s Xiaomi Launches YU7 EV, Rivaling Tesla Model Y
Xiaomi, the Chinese tech conglomerate, unveiled its latest electric vehicle, the YU7, in Beijing. The SUV, designed to compete directly with the Tesla Model Y, features advanced design and technology, expanding Xiaomi’s growing EV lineup. This move demonstrates China’s aggressive push into the global EV market and the company’s ambition to challenge established players.
4. Polly Polymer Secures $28 Million for AI-Driven 3D Printing
Chinese advanced materials startup Polly Polymer raised $28 million in Series B funding to accelerate its AI-enabled 3D printing capabilities and expand production. The company’s technology aims to revolutionize manufacturing by enabling rapid prototyping and scalable production, highlighting the intersection of AI and industrial innovation in Asia.
5. RLWRLD: South Korean AI & Robotics Firm Raises $15 Million
South Korea’s RLWRLD, specializing in AI and robotics, closed a $15 million seed round led by Hashed and other major investors. The company is developing foundational AI models that merge large language models with robotics software, aiming to enhance agility and logical reasoning in robots. This funding will help RLWRLD expand its data systems and strengthen partnerships with robotics and sensor makers in Asia and North America.
6. Zelos Technology: $100 Million for Autonomous Logistics
Chinese self-driving logistics startup Zelos Technology secured $100 million in Series B3 financing. With recent approval to operate in Singapore, Zelos is advancing full-stack Level 4 autonomous driving technologies, targeting the logistics and delivery sector. This investment reflects the growing appetite for automation and AI in Asia’s supply chains.
7. GridCARE: $13.5 Million to Optimize Data Center Power
Singapore’s GridCARE closed a $13.5 million seed round led by Xora. The company helps AI data center developers access underutilized grid power, potentially reducing build timelines from years to months. This innovation addresses one of the region’s biggest tech infrastructure bottlenecks and supports the rapid growth of cloud and AI services.
8. Gprnt: ESG Data Platform Raises $4.62 Million
Singapore-based Gprnt, an ESG (Environmental, Social, and Governance) data platform, raised $4.62 million in seed funding from Ant International and MUFG. The platform aims to scale its sustainability data services and expand its partner ecosystem across Asia, reflecting the region’s increasing focus on sustainable business practices.
9. Every Half: Vietnamese Coffee Chain Eyes Global Expansion
Vietnamese specialty coffee chain Every Half secured $3 million in pre-Series A funding to expand its store network and test e-commerce exports to North America. This move showcases the international ambitions of Southeast Asian small businesses and the growing demand for premium Asian food and beverage brands abroad.
10. Populix: Indonesian AI Research Startup Raises $4.3 Million
Indonesia-based Populix, an AI-led market research firm, raised $4.3 million in the first tranche of its Series B round. The funding will support AI development and expansion into new Southeast Asian markets. Populix helps organizations and governments analyze public sentiment, policy impacts, and economic trends, making it a key player in the region’s data-driven decision-making landscape.
11. Moom Health: Singapore Wellness Startup Gets $2.7 Million
Singapore-headquartered wellness startup Moom Health received $2.7 million in pre-Series A funding to drive product innovation and expand its digital and retail footprint across Singapore, Malaysia, and Hong Kong. The company focuses on women’s health supplements, tapping into Asia’s growing health and wellness market.
12. viAct: Hong Kong AI Safety Startup Raises $7.3 Million
Hong Kong-based viAct, an AI-powered risk monitoring platform for high-risk industries like construction and manufacturing, raised $7.3 million in Series A funding. The company plans to expand into the Middle East and Europe, leveraging its AI ecosystem to improve workplace safety and compliance.
13. DutyCast: Singapore Trade Compliance Platform Attracts Funding
DutyCast, a Singapore-based trade compliance platform, raised an undisclosed amount from GTR Ventures and logistics-focused angel investors. The company uses AI to help businesses comply with international trade regulations, claiming to reduce compliance costs by up to 60%. This is especially relevant as trade tensions and tariff changes continue to impact Asian exporters.
14. Supermom: Hyper-Localized AI for Families
Supermom, a Southeast Asian startup, is building AI companion agents tailored for families across the region’s diverse languages and cultures. By leveraging community data, Supermom aims to bridge communication gaps and provide hyper-localized support, reflecting the growing importance of culturally aware AI solutions in Asia’s consumer tech landscape.
15. Funding Chill: Asian Startups See 40% Drop in Q1 2025
Venture capital funding for Asian startups dropped sharply in Q1 2025, reaching just $13 billion—a 40% decline from the previous year and the lowest since 2014. Early-stage investments were hit hardest, falling 53%. This downturn is attributed to global economic uncertainty, tighter capital markets, and investor caution, with a shift toward profitability and proven traction over early promise.
16. Small Business Spotlight: Vietnamese SMEs Thrive Amid Challenges
Vietnamese small businesses, especially in food, beverage, and retail, are showing resilience and innovation. Companies like Every Half are leveraging funding to expand internationally, while others are adopting digital tools and e-commerce to reach new customers. This trend highlights the vibrancy of Southeast Asia’s SME sector, even in a challenging funding environment.
17. AI Startups in Asia Account for 14% of Regional Funding
Despite the global boom in AI investment, AI-focused startups in Asia represented just 14% of total regional funding in Q1 2025, raising $1.8 billion—half of the previous year’s figure. This suggests that, while AI remains a hot sector, investors are becoming more selective, prioritizing startups with clear paths to profitability and scalable technology.
18. Trade Tensions and Tariff Revisions Impact Asian Markets
The ongoing trade tensions, particularly the U.S. tariff revisions targeting several Asian countries, have cast a shadow over private markets and contributed to the VC funding slowdown. Export-dependent economies like South Korea and China are adapting by focusing on domestic innovation and expanding into new markets.
19. Tech Infrastructure: Data Centers and Power Access
With the rise of AI and cloud computing, access to reliable and scalable data center power has become a critical issue in Asia. Companies like GridCARE are addressing this challenge by helping developers tap into underutilized grid power, reducing infrastructure build times and supporting the region’s digital transformation.
20. Ground News: Small Business Digitalization Accelerates
Across Asia, small businesses are accelerating digital adoption to survive and grow. From Vietnamese coffee chains expanding online to Indonesian research startups leveraging AI, digital transformation is enabling SMEs to reach new markets, improve efficiency, and compete with larger players. This grassroots innovation is reshaping Asia’s economic landscape and creating new opportunities for entrepreneurs.
Conclusion
The last week of May 2025 has been pivotal for Asia’s business, tech, and startup ecosystem (excluding India). Despite a challenging funding environment and ongoing trade tensions, the region witnessed significant innovation, major funding rounds, and the rise of small businesses leveraging technology to scale. From AI and robotics to fintech and ESG, Asia continues to be a hotbed of entrepreneurial activity and digital transformation. As investors become more selective and markets adapt to global uncertainties, the focus is shifting toward sustainable growth, profitability, and scalable innovation.
Key Takeaways:
- Asia’s startup ecosystem remains resilient, with standout funding rounds in fintech, AI, and logistics.
- Small businesses and SMEs are driving innovation, particularly in Southeast Asia.
- Trade tensions and funding slowdowns are prompting a shift toward sustainable and scalable business models.
- Digital transformation is accelerating across sectors, from retail to industrial infrastructure.
- The next wave of growth will be defined by AI, robotics, and hyper-localized solutions tailored to Asia’s diverse markets.
Stay tuned to nextbusiness24.com for more in-depth analysis and updates on Asia’s dynamic business and technology landscape.
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