Southeast Asian start-ups need to be careful when expanding, and not rush to copy WeChat’s success in China, investors say

Southeast Asian tech companies need to be cautious with diversification efforts and not charge ahead by trying to replicate the success of super apps such as China’s WeChat, according to entrepreneurs and investors at the Post’s China Conference: Southeast Asia in Singapore on Wednesday.

Tech companies should “earn the right” to expand into new business categories after creating a solid core business, as opposed to pursuing it as a business model from day one, said Hian Goh, founder and general partner of venture capital firm Openspace Ventures.

The super app model, where users have access to a wide range of services and functions within one mobile application, was pioneered by Tencent Holdings with WeChat – which has evolved into a multipurpose tool with various mini programs.

WeChat has been proven to work in China, and some companies in Southeast Asia have tried to apply the concept to the region, which also has high mobile internet penetration rates and fast connectivity among large and fast-growing populations.

For example, Southeast Asian tech companies including Indonesia’s Gojek and Singapore-based Grab, both started as ride-hailing apps before later expanding across various local services. Gojek merged with Indonesian tech firm Tokopedia in 2021 to form a digital giant spanning e-commerce, ride-hailing and financial services.

However, Goh, an early investor in Gojek, noted that expansion moves by the platform were not planned from day one, rather “it earned the right” to move into other services after its ride-hailing service opened up opportunities in fields such as financial services.