Can a New Breed of Startups Help Boost Cambodia’s Economy?

As Cambodia shifts toward a digital economy, a new wave of technology-focused startups is emerging to challenge traditional industries and drive national growth. Supported by government initiatives and increasing investor confidence, these entrepreneurs are positioned as key catalysts for the Kingdom's long-term economic resilience and regional competitiveness.

Author: Sreekanth Ravindran
Date: 13 October 2025
Source: Khmer Times

Startups in Cambodia are still at a nascent stage. It all started in 2010 with a few startups sprouting up here and there with hardly any traction. The reasons are not difficult to trace: inadequate funding, limited access to skilled talent and weak infrastructure. In 2019, however, things started looking up with the establishment of the Entrepreneurship Promotion Centre. Concurrently, Khmer Enterprise, a national platform, was also instituted to support the overall entrepreneurial ecosystem. The KE, along with the Techo Startup Center (an initiative of the Ministry of Economy and Finance), came forward to provide financial grants and tax incentives to incubator programmes. As a consequence, Cambodia now has a little over 200 startups, of which 119 are technology-focused, spanning e-commerce, fintech, SaaS, edutech and healthtech. The remaining are tech-enabled businesses. Although the numbers are not encouraging, given the spike in neighbouring countries, a majority of startups in Cambodia are technology-focused. Khmer Times looks at the prospects of Cambodian startups and how they can boost the national economy

The year 2025 began with Cambodia’s startup ecosystem hogging the limelight after all major business news portals across the region published reports about Nham24, Cambodia’s leading startup, which provides a variety of services ranging from food delivery, ride-hailing, travel, courier, groceries, and quick-commerce, being acquired by Grab, the region’s most valuable startup and NASDAQ-listed company.

Grab’s acquisition has been widely regarded as a positive development for Cambodia’s startup ecosystem, signalling increased investor confidence, providing an exit opportunity for early-stage investors, and highlighting the potential for local tech companies to scale and integrate with the global market. The deal brought Nham24’s local expertise together with Grab’s technology and resources, which is expected to foster innovation and growth in Cambodia’s digital economy.

According to the Global Startup Ecosystem Index 2025, compiled by global startup tracker StartupBlink, the Kingdom’s startup ecosystem is ranked 105th worldwide, a seven-spot climb compared to the previous year. The Cambodian startup ecosystem ranks seventh in Southeast Asia, having remained stable since 2024. It ranks right after the Philippines and is followed by Myanmar.

Cambodia also has one city – Phnom Penh – ranked in the StartupBlink Ecosystem Index.

Startup Cambodia is a national programme, approved in late 2019 and part of the Cambodia Digital Economy and Society Policy Framework, led by the Ministry of Economy and Finance. Its mission is to support local startups and build a vibrant entrepreneurship ecosystem in Cambodia by providing a national digital platform for knowledge sharing, mentorship, networking, and access to resources for entrepreneurs, investors, and other ecosystem actors.

According to Startup Cambodia, the Kingdom has more than 200 startups and among them 119 are technology-focused, spanning e-commerce, fintech, SaaS, edutech and healthtech, while the remaining are tech-enabled businesses. The dominance of technology-focused startups reflects the Kingdom’s growing digital economy, fuelled by rising demand for digital trade, online advertising and cloud-based solutions.

Emerging sectors like artificial intelligence (AI) and blockchain indicate early-stage exploration of advanced technologies, while traditional industries such as logistics, travel and food services are increasingly integrating digital solutions. In its annual report published in April 2025, Startup Cambodia says sectoral diversification and deeper digital adoption will be key drivers of sustained growth and regional competitiveness as Cambodia’s startup ecosystem matures.

Among the 200-plus startups, at least 50 have come into prominence and they include FirstFinance MFI and Pi Pay (fintech), ATEC Biodigesters (clean energy), vKirirom, DirexPlay and Beebush (social and leisure), BookMeBus (public transport), YouAdMe (marketing and sales), Cambodiawebhosting.com, Yak Khmer and Somleng (ICT), Clik and Joonak Delivery (e-commerce) and Muuve (food delivery).

Speaking to Khmer Times, Zia Bharwani, Chief Executive Officer of Red Team Partners, and a mentor at Startup Accelerator within the American University of Phnom Penh (AUPP) Technology Centre, said Cambodian startups should focus on emerging technologies such as AI, Blockchain and cybersecurity.

“These are the best industries with the highest growth rate across the world. Innovation and advanced technologies are crucial for startups to survive and thrive in today’s competitive and fast-paced market.

“Unlike large, established corporations, startups cannot rely on legacy brand recognition or extensive resources to succeed. Instead, they must leverage innovation and technology to gain a competitive edge and build sustainable businesses,” he pointed out.

Support mechanisms

The government provides a variety of support systems for startups, primarily through state-owned enterprises and initiatives under the Ministry of Economy and Finance. These initiatives range from financial grants and tax incentives to incubator programmes and simplified business registration.

Founded in 2019 as the Entrepreneurship Promotion Center and an implementation unit of the Entrepreneurship Development Fund, Khmer Enterprise (KE) is a national platform in Cambodia that promotes entrepreneurship by supporting startups, and the overall entrepreneurial ecosystem.

Earlier speaking to Khmer Times, Chhieng Vanmunin, Chief Executive Officer, KE, said that Khmer Enterprise runs over 100 entrepreneurial programmes every year to boost the startup ecosystem in the country. “We are offering support to startups across all 25 provinces in the country. The project and fund distribution system is much effective to help investors to venture into a project in any part of the country.”

No wonder KE offers training, mentorship, and business consultations to upgrade the skills of entrepreneurs. It has provided millions of dollars in seed funding for early-stage startups and facilitates connections with venture capitalists (VCs) and investors.

The organisation holds events to connect entrepreneurs with local and international stakeholders, creating a collaborative and supportive community. It also promotes a culture of entrepreneurship and innovation through public events, co-working spaces, and other outreach programmes.

The KE mission as well includes supporting key prioritised sectors, including agriculture, manufacturing, services, and information and communication technology, mobilising and managing resources from various sources to support the development of the entrepreneurial ecosystem, along with strengthening partnerships between public and private sectors to achieve its goals.

Another effort in the same direction is the setting up of the Techo Startup Centre, which is an innovation hub under the Ministry of Economy and Finance that focuses on building viable, early-stage tech startups by providing nurturing programmes, community events, and a digital platform.

The Commerce Ministry has launched a ‘Single Portal’ to streamline business registration, reducing the time, complexity, and cost associated with starting a new company. The tax incentive scheme provides specific benefits for priority sectors identified in the Cambodia Industrial Development Policy 2015-2025, including agro-industry, IT-related research and development, and manufacturing.

The Kingdom hosts startup incubators, accelerators, and other support organisations. Based in Phnom Penh, the ARC Start-up Accelerator runs an intensive three-month programme, which offers mentorship, funding connections, co-working spaces, and hands-on business guidance.

The National Incubation Center of Cambodia functions as a resource center that supports startups through training, research, and networking opportunities. There are also special initiatives to support women entrepreneurs who aspire to become part of the country’s startup ecosystem.

The Chief Commercial Officer of an online grocery platform – a startup that originated from a small store in Phnom Penh – told Khmer Times that startup support mechanisms that include Khmer Enterprise and other governmental agencies have not been really successful in terms of helping Cambodian startups expand their markets.

“Market expansion, be it locally, regionally, or globally, remains vital for the ultimate success of a startup. And this is where many Cambodian startups are failing. A majority of Cambodian businesses still lack the confidence to enter new markets and face outright competition.

“I think the Commerce Ministry and organisations such as Khmer Enterprise must initiate schemes that would encourage the entrepreneurs to undertake market expansion from the very beginning. In this regard, we should draw inspiration from Thai and Vietnamese entrepreneurs.”

An Australian national, who runs a successful e-Commerce startup in Phnom Penh, told Khmer Times that in order to develop a near-perfect ecosystem, the Royal Government should offer more incentives for expatriates who are keen on setting up startups in the country.

“There is a huge difference between a founder of a startup and an expatriate investor in the country. Expatriate startup owners are not considered for many of the governmental schemes that include various outreach and training programmes along with data and information sharing.”

Funding scenario

Startups are funded through various methods, including bootstrapping (self-funding), friends and family investments, angel investors (high-net-worth individuals), venture capital (VC firms investing other people’s money), crowdfunding (raising money from the public), startup accelerators (programs offering mentorship for equity), loans from banks or online lenders, and grants from organisations.

The choice of funding depends on the startup’s stage, goals, and the amount of capital needed.

Startup funding is a staged process, beginning with ‘Pre-Seed’ for initial idea development and ‘Seed’ funding for early-stage growth. These are followed by Series A, Series B, and Series C rounds for scaling operations and market expansion. More mature startups may raise Series D and beyond for significant growth.

vKirirom continues to remain as the top-funded startup in the country since last year, followed by ATEC Biodigesters and Beebush, according to startup tracker Startup Blink.

So far, vKirirom, an eco-resort offering lodging and educational activities for families, has received a total funding of $2.9 million.

ATEC Biodigesters came in second position with the funds received from investors and backers standing at $2.3 million. The company creates small-scale biodigester systems for rural Cambodian households, providing sustainable energy solutions.

Beebush stood third with a fund flow of $1 million. Beebush connects users worldwide for interactive communication and engagement.

The Kingdom’s startup funding ecosystem is mostly supported by government initiatives, local and regional venture capital, accelerators, and private investors. While still developing compared to other Southeast Asian nations, the ecosystem is showing steady growth and increasing support for entrepreneurs.

Cambodia is home to some venture capital funds, though they cannot be compared to global venture capital players in terms of scale of operations and funds flow.

OOCTANE is a Cambodian-funded venture capital with a $55 million fund that invests in technology-enabled businesses in sectors like logistics, e-commerce, and real estate. Another Cambodia-based venture capital and project management firm is OBOR Capital with a $30 million fund. It invests in startups across various sectors and has backed companies like Camboticket and Delishop. There are reports about more regional venture capital firms planning to set up an office in Phnom Penh to support Cambodian startups. However, less progress has been achieved on this front.

Key challenges

Cambodian startups face major challenges, including a lack of funding and investor confidence, limited access to skilled talent and technical expertise, navigating complex regulatory environments, weak infrastructure, fierce market competition, and a need for more support and mentorship to mature the startup ecosystem.

Victor La, a startup specialist and seasoned entrepreneur who is also the director of the Canadian Chamber of Commerce in Cambodia, said startups face huge challenges in terms of developing new markets. “Many are struggling to even understand the Phnom Penh market, let alone the international export market.

“We must understand that commercialisation is driving the modernisation of incubated technologies. And this emphasises the need to promote an end-to-end closed ecosystem that serves not only locally-made products but also facilitates the use of locally-made technologies or solutions.”

La said local startups must focus on creating Cambodian-made tools to solve local issues instantly, and this is important in developing a hardcore localised ecosystem that can expand to other markets with value additions. “Farmers and local SMEs can use this localisation of solutions and make it effective and scalable while making an immediate impact in the market, eventually leading to building capacity and business acumen.”

Renjith Thomas, a tech entrepreneur and founder of a startup in Bengaluru, India, who plans to explore the Cambodian market in the near future, said the Royal Government should focus on creating a perfect platform that will facilitate an intense flow of large volumes of funds from the hands of venture capitalists.

“This would lead to the development of a venture capitalist ecosystem in the country – a must for the growth of the startup sector. Such an ecosystem will have startup experts, analysts and valuation pundits. Startups falling into their radar will gain instant investments, eventually creating a long chain of success.

“The very premise of venture capitalists is that they expect only one startup to succeed out of ten in their portfolio.”

A study by ‘Startup Cambodia’ showed that Cambodia’s startup ecosystem lacks mature funding, a large talent pool, market size, and a global mindset compared to Vietnam and Thailand. “While Cambodia is making strides with government support and digital adoption, Thailand, Vietnam, Indonesia and Malaysia have more established and connected ecosystems.”

Renjith asserted that founders of Cambodian startups should steer clear of copycat ideas in order to be successful and to allure the funding interest of venture capitalists. “Novelty and innovation remain the key to success. Replicating foodpanda or Grab, or any other existing e-commerce models will only do more harm than good to the country’s startup ecosystem.

“The founders or startup owners must keep in mind that their business plans are invariably integrated into the global startup ecosystem and the competition and survival rates exist in indirect proportion. The targeted markets would be local or regional, but the competition is global.”

He added that all it takes is one global success story from Cambodia. “Greatness cannot be planned; it emerges by solving unique, real-world problems that people or businesses face in their everyday lives and by embracing those challenges with creativity and persistence.”