Cambodia’s entrepreneurial movement started slowly around 2010, with only a handful of small ventures struggling to survive due to limited funding, weak infrastructure, and a shortage of skilled talent. For nearly a decade, progress was sluggish. However, in 2019, the landscape began to shift when the government launched the Entrepreneurship Promotion Centre and Khmer Enterprise (KE), two major initiatives designed to nurture innovation and entrepreneurship across the country. Supported by the Techo Startup Center under the Ministry of Economy and Finance, these efforts brought financial grants, mentorship programs, and tax incentives that gradually sparked the country’s innovation scene. Today, the Kingdom proudly hosts over 200 startups, including 119 technology-driven ventures across e-commerce, fintech, SaaS, edutech, and healthtech, marking a new era for Cambodia’s digital economy.

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Why did Nham24’s acquisition by Grab create such a buzz?

In early 2025, the Cambodian startup scene made headlines when Grab, Southeast Asia’s biggest tech company, acquired Nham24, a homegrown platform offering food delivery, ride-hailing, courier, and grocery services. This deal wasn’t just about business, it symbolized a turning point for Cambodia’s innovation ecosystem. The acquisition signaled growing investor confidence, gave early backers an exit opportunity, and showcased that Cambodian startups can scale beyond national borders. Merging Nham24’s local knowledge with Grab’s global resources is expected to further accelerate Cambodia’s transition into a regional tech hub.

Where does Cambodia stand globally in the startup world?

According to the Global Startup Ecosystem Index 2025 by StartupBlink, Cambodia climbed seven spots to rank 105th globally and maintained 7th place in Southeast Asia, just behind the Philippines. Phnom Penh also earned a place on the map as the country’s central innovation hub. The growth reflects steady improvements in funding, government backing, and digital adoption, especially with the introduction of Startup Cambodia, a national program under the Cambodia Digital Economy and Society Policy Framework. This initiative continues to connect entrepreneurs, mentors, and investors, building a collaborative ecosystem for sustainable growth.

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Who are the standout startups driving this change?

Several local ventures are now making a name for themselves: FirstFinance MFI and Pi Pay in fintech; ATEC Biodigesters in clean energy; vKirirom, DirexPlay, and Beebush in social tech and tourism; and BookMeBus, Somleng, and Clik in digital services. Industry expert Zia Bharwani, CEO of Red Team Partners and mentor at the American University of Phnom Penh’s Startup Accelerator, emphasized the importance of emerging technologies. “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,” he said, urging entrepreneurs to focus on AI, blockchain, and cybersecurity.

How is the government helping startups grow?

The Cambodian government has established a supportive framework through Khmer Enterprise (KE), which runs over 100 programs annually to help startups across all 25 provinces. KE offers grants, mentorship, and networking opportunities, helping young entrepreneurs build scalable and sustainable businesses. As Chhieng Vanmunin, CEO of KE, shared, “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.” Moreover, the Techo Startup Center, the Commerce Ministry’s Single Portal, and accelerator programs like ARC Start-up Accelerator simplify business registration, improve investor access, and connect startups with global partners.

What challenges still hold Cambodian startups back?

Despite impressive progress, many startups face difficulties expanding into new markets. Some entrepreneurs argue that existing support programs haven’t yet provided enough tools for international scaling. Expat founders also face barriers in accessing certain incentives and government-backed initiatives, limiting foreign participation in Cambodia’s innovation ecosystem. Funding is another challenge. Though promising startups like vKirirom, ATEC Biodigesters, and Beebush have raised between $1 million and $2.9 million, venture capital inflow remains limited. Local VCs like OOCTANE ($55 million fund) and OBOR Capital ($30 million fund) are leading the way, but regional investment still lags compared to neighbors like Vietnam and Thailand.

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What do experts say about the road ahead?

According to Victor La, Director at the Canadian Chamber of Commerce in Cambodia, local entrepreneurs must focus on homegrown innovation that solves real problems. “We must understand that commercialisation is driving the modernisation of incubated technologies,” he said. This means building Cambodian-made tools that address local needs before expanding globally. Meanwhile, Renjith Thomas, an Indian entrepreneur eyeing Cambodia’s market, believes that fostering a strong venture capital ecosystem will be critical. He argues that “novelty and innovation remain the key to success,” and warns that copying existing business models like Foodpanda or Grab could stunt long-term progress.

So, what’s next for Cambodia’s startup ecosystem?

Experts agree that the next phase will depend on innovation, inclusivity, and global integration. With continued government backing, growing investor interest, and an increasingly tech-savvy population, Cambodia has the potential to transform from a small startup market into a dynamic regional innovation hub. As Renjith Thomas aptly put it, “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.”

Cambodia Targets 5% Economic Growth in 2025: Deputy PM. Cambodia’s economy is projected to grow by 5 percent in 2025, a slight decrease from 6 percent in 2024, according to Permanent Deputy Prime Minister Vongsey Vissoth.

Speaking at the official launch of the National Strategic Development Plan on Thursday, Vissoth explained that the slower pace of growth is linked to external pressures, notably, the ongoing border tension with Thailand and the 19-percent tariff recently imposed by the United States on Cambodian exports.

“On Aug. 1, the United States imposed a 19 per cent tariff on all goods imported from Cambodia,” he noted, emphasizing how such trade measures have dampened the nation’s economic momentum.

Despite these challenges, Cambodia’s GDP per capita is expected to increase from $2,520 in 2023 to $2,713 in 2024, reaching nearly $3,000 by 2025.

The deputy prime minister reaffirmed that the economy’s main drivers remain consistent — garment, footwear, and travel goods exports, along with tourism, agriculture, real estate, and construction.

A report by the Ministry of Economy and Finance projects that in 2025, the industrial sector (including garments, non-garment manufacturing, and construction) will expand by 7.1 percent. The service sector, covering tourism, transport, telecommunications, trade, and real estate, is expected to grow by 3.8 percent, while agriculture is set to rise by 0.9 percent.

Source: Xinhua

Picasso City Garden’s upcoming initial public offering (IPO) is shaping up to be more than a routine listing—it could become a defining moment for the Cambodia Securities Exchange (CSX). The debut will test whether the local bourse can reignite investor enthusiasm or continue its struggle with stagnation.

Cambodia’s stock exchange has long faced challenges, marked by limited listings and sluggish trading activity. Now, the spotlight is on Picasso City Garden, a real estate developer preparing to list on the CSX Growth Board at USD 1.20 (KHR 4,800) per share. The timing aligns with the launch of the ACLEDA Sub-Bond 2.0, leaving many investors wondering whether these new offerings can inject fresh life into a market still grappling with weak momentum.

A Market Waiting for Its Moment

Since its inception more than a decade ago, the CSX has yet to achieve the traction seen in neighboring markets. According to the Securities Market Statistics report, only 11 companies have gone public, raising a total of USD 128.9 million. The exchange’s most active period was between 2018 and 2019, fueled by Cambodia’s rapid growth across construction, real estate, credit, and tourism. However, the pandemic disrupted this progress, halting much of the earlier momentum.

Even amid economic uncertainty, there were bright spots. In 2020, ACLEDA Bank (ABC) successfully went public, attracting significant investor attention. More recently, Cellcard and Mengly J. Quach Education joined the exchange in 2023, signaling continued interest but still short of the robust activity needed to strengthen the CSX’s foundation.

New Listings Amid Persistent Challenges

The Picasso City Garden IPO is part of renewed efforts to revitalize the stock market. The CSX currently operates two boards: the Main Board, which hosts nine companies, and the Growth Board, where Picasso will make its debut. The IPO offers 10 million shares—representing 20% of the company’s equity—and promises a guaranteed annual dividend yield of 7% for the first five years.

Picasso follows in the footsteps of JSL, which listed in 2022 at USD 0.467 (KHR 1,900) per share and has since seen its price rise by nearly 46% to KHR 2,770. That success suggests potential for real estate firms on the Growth Board. Still, questions remain: will Picasso sustain this upward trend or encounter the same obstacles that have restrained overall market growth?

A Mixed Economic Landscape

The broader economic environment adds uncertainty. The World Bank projects Cambodia’s GDP growth at just 4.0% in 2025, far below the double-digit expansion of past years. Foreign direct investment (FDI) has declined to USD 630 million, restricting capital flows to key sectors such as infrastructure and real estate. Although tourism is showing signs of recovery with 1.3 million arrivals so far, the figures remain below pre-pandemic levels. Meanwhile, non-performing loans have risen to 7.9% in the banking sector and 9.0% in microfinance, while inflation stands at 3.7%. For investors, these indicators suggest a cautious outlook—particularly for real estate-linked ventures.

Investor Sentiment and Market Outlook

Investor reactions to Picasso’s IPO could take several forms. On one hand, a soft economic backdrop and cooling property market may temper enthusiasm. On the other, the new listing could energize a market hungry for momentum—much like ACLEDA Bank’s listing did in 2020, when it attracted strong participation despite economic headwinds.

Market analyst Seang Bot offered a cautiously optimistic view, noting, “These IPOs could encourage other companies to list, boosting trading volumes and attracting new investors.” Yet he also warned that ongoing uncertainty and border tensions with Thailand might lead to more conservative investor behavior. “Despite these challenges, if Picasso City Garden can demonstrate solid growth potential and offer reliable dividends, it will likely find a pool of buyers willing to take the risk,” he added.

A Defining Test for CSX

Picasso’s IPO marks a crucial inflection point for the Cambodia Securities Exchange. Its success or failure could set the tone for the future of Cambodia’s capital markets in 2025 and beyond. A strong debut could restore investor confidence and usher in a new wave of listings. Conversely, if the IPO falters, the CSX may continue to lag behind its regional peers.

The next few months will determine whether Cambodia’s stock market can turn the corner or remain stuck in a prolonged wait for revival.

Source: Khmer Times