The realities of Series A fundraising for startups in emerging markets
What we learned by analyzing Series A rounds across emerging markets over the past decade.
Series A funding is a pivotal milestone for startups in emerging markets. It provides not only a critical injection of capital to accelerate growth but also a vote of confidence from institutional investors.
For many founders, securing a Series A round marks the transition from experimentation to scale—it’s the moment when a startup begins to compete seriously, often with limited access to local capital and within ecosystems still maturing.
In this post, we present a data-driven overview of Series A timelines and conversion rates across a range of emerging markets. By analyzing how quickly startups progress from seed funding to Series A—and comparing differences across regions such as South Asia, Southeast Asia, the Middle East, Africa, and Latin America—we aim to establish a comprehensive benchmark for early-stage fundraising.
Where the Activity Is Concentrated
In this research we have examined the following countries: India, Singapore, Brazil, Indonesia, United Arab Emirates, Mexico, Turkey, South Africa, Malaysia, Thailand, Vietnam, Saudi Arabia, Chile, Colombia, Nigeria, Argentina, Egypt, Kenya, Philippines, Pakistan.
India accounts for approximately 37% of Series A deals across emerging markets. Other major hubs include Singapore, Brazil, and Indonesia - indicating a high concentration of venture activity in just a handful of countries.
Note: Our data sources vary, and in some cases, startups do not publicly report their seed rounds. When that happens, we calculate the timeline based on the startup inception year. Only companies founded after 2005 were considered in the research.
Count of months to raise from Seed to Series A, categorized by HQ country
Median time from Seed to Series A: ~29 months
But that timeline varies significantly by geography:
South Asia
India: 25 months
Pakistan: 24 months
Bangladesh: 27 months
Southeast Asia
Indonesia: 22 months
Singapore: 25 months
Vietnam: 24 months
Thailand: 34 months
Philippines: 34 months
Middle East
UAE: 31 months
Saudi Arabia: 35 months
Turkey: 32 months
Latin America
Brazil: 29 months
Mexico, Colombia, Argentina: 24–28 months
Chile: 32 months
Africa
Egypt: 24 months
Nigeria: 27 months
South Africa: 36 months
Kenya: 48 months (note: there is mixed data for the initial funding for 7 Series A companies regarding their first funding round, which has slightly skewed the overall sample )
In every region, the average time to Series A exceeds the median, meaning that while many startups raise within a typical window, a significant subset face prolonged fundraising cycles.
These delays are often shaped by local market maturity, investor behavior, and the availability of institutional capital.
A Shift Over Time
Earlier in the decade, time to Series A in some regions was noticeably shorter. But as ecosystems matured and competition intensified, timelines began to fluctuate
Count of months to raise from Seed to Series A, categorized by year of capital raised
Startups now often wait longer to raise, aiming for higher valuations or undergoing more extensive due diligence.
This trend mirrors what’s been observed in the U.S., where the median time to Series A for startups that raised at least $1 million in seed funding has hovered between 25 and 28 months. In 2024, the emerging-market median exceeds that by roughly six months.
How Many Startups Actually Get There?
Conversion from seed to Series A reveals stark regional differences - and contrasts with U.S. patterns with 30% of startups raised beyond seed.
Percentage of startups progressing from Seed to Series A, categorized by country
Southeast Asia
Thailand: ~22%
Singapore, Indonesia: ~18%
Philippines: ~16%
South Asia
India: ~12%
Pakistan, Bangladesh: ~9%
Middle East & Latin America
UAE, Saudi Arabia, Brazil, Mexico, Colombia: ~12–13%
Africa
Nigeria, Egypt: ~6–7%
South Africa, Kenya: ~4–5%
Compare this to the United States:
2021 cohort: 36% moved beyond seed
2022 cohort: 20%
2015–2019 cohorts: 51–61%
Despite some regions matching or even surpassing U.S. conversion rates, emerging market startups still face more significant hurdles in raising institutional funding, a challenge that continues to slow their growth trajectory.
A Decade of Change
Percentage of startups progressing from Seed to Series A, categorized by founded year cohorts
For startups founded in 2012 in emerging markets, nearly 1 in 5 startups raised Series A funding.
These early founders symbolized a wave of optimism - bold ideas, new technologies, and the belief that capital would follow.
But as the decade progressed, the bar rose.
More startups emerged. More capital flowed in. But fewer companies made it to Series A.
The most active investors
Peak XV Partners and Accel are the most active investors based on the number of investments, with 109 and 99 investments, respectively.
In terms of geographic diversity, 500 Global is involved in 15 countries, while FJ Labs has investments in 16 different countries. On the other hand, firms like Z47 and KPTL have more specialized portfolios, focusing on fewer countries and industries
The Takeaway
At InDrive New Ventures we identify numerous high-quality companies within emerging markets. However, due to limited access to liquidity, their growth potential is restricted after a few years. For investors, the challenge is not just picking winners but helping build ecosystems where more startups have the chance to prove themselves.
For founders, raising a Series A today requires more than a great idea. It demands traction, timing, and resilience - especially in regions where institutional capital is unevenly distributed.
The most exceptional entrepreneurs in our operating markets often prioritize operational excellence, as the Western model of heavy reliance on funding doesn't succeed in these markets.
We're currently exploring the consolidation of verticals within key markets. If you're in or around Series A, please reach out to discuss potential collaborations..