Tech in Asia Report: FinTech Firm Modalku Narrows Losses, Microdramas Gain Traction
Tech in Asia's financial tracker reveals FinTech firm Modalku has reduced its losses. Meanwhile, AI-generated microdramas are gaining traction on Southeast Asian tech platforms.
A new financial tracker and deep dive from Tech in Asia sheds light on the state of the tech industry in Southeast Asia. FinTech lender Modalku, also known as Funding Societies, has successfully narrowed its losses by 10% in 2025, though the company continues to incur substantial losses of approximately US$35 million.
Modalku operates across several Southeast Asian countries, including Singapore, Malaysia, Thailand, and Vietnam. Its financial performance occurs in a challenging market where several lending players have faced difficulties or been embroiled in scandals in recent years.
Concurrently, tech companies across Southeast Asia are increasingly investing in short, AI-generated microdramas. Platforms such as YouTube, Shopee, and Grab are witnessing growing interest in this content format, aiming to retain users for longer periods. Despite variable production quality, these microdramas are garnering thousands of likes and comments.
Shopee and Grab are leveraging microdramas to boost customer loyalty by offering viewers rewards, such as points redeemable for purchases. The objective is to keep users engaged on the platform and ultimately encourage transactions or service usage. The analysis questions, however, whether drama alone is sufficient to maintain user interest within shopping or ride-hailing applications.