Malaysia’s Top 100 Startups generate RM8.5b as profitability gains ground

Strong commercial growth spans 7 sectors, with AI and data recording the fastest expansion among the companies assessed

MALAYSIA’S Top 100 technology start-ups generated RM8.5 billion in revenue in the financial year of 2024 (FY24), with more than a third recording at least RM1 million in net profit as the country seeks to build businesses that can sustain growth and compete internationally.

Cradle Fund Sdn Bhd group CEO Norman Matthieu Vanhaecke said the publication also showed how specialised technology companies were translating funding into commercial results, with the artificial intelligence (AI) and data sector demonstrating strong revenue generation despite relatively modest fundraising.

“AI and data specifically only gathered about RM40 million in terms of fundraising for the past four years that we have tracked, but the revenue generated from that capital reached more than RM200 million in 2024,” he said at the Malaysia Top 100 Startups — 2026 Edition media roundtable on Oct 1.

The inaugural publication recorded an average compound annual growth rate (CAGR) of 87% among the selected companies, while 58 already operated outside Malaysia.

Together, the findings provide a broader assessment of the country’s start-up development, extending beyond the size of funding rounds to examine whether companies are attracting customers, generating earnings and expanding into new markets.

Science, Technology and Innovation (MOSTI) Minister Datuk Chang Lih Kang said the government’s priorities reflected the need to develop companies with lasting economic value, rather than assess the ecosystem primarily through fundraising and valuations.

“For MOSTI, a strong start-up ecosystem is ultimately about building companies that can grow, generate revenue, create jobs, remain sustainable and compete beyond their home market,” he said at the launch.

Of the 100 companies featured, 36 recorded at least RM1 million in net profit. These included 14 at the pre-seed or seed stage and 13 at Series A or B, indicating that profitability was achievable before businesses reached more advanced funding stages.

Meanwhile, 46% of the companies were at the pre-seed or seed stage, compared with 5% at Series C or beyond. A third had received support through Cradle grants and investments.

Chang said the financial findings suggested that Malaysian founders were increasingly establishing businesses with stronger commercial fundamentals, alongside their efforts to raise capital and expand.

The publication, he added, should help investors identify potential opportunities, enable corporations to explore partnerships and give policymakers a clearer understanding of how the startup landscape was developing.

“We are moving beyond simply asking how many start-ups we have, towards asking what kind of companies we are building, how sustainable they are and how far they can scale,” he said.

The report assesses Malaysian-registered technolog y companies using revenue growth, commercial traction and recognition within the ecosystem.

Its primary sources include Companies Commission of Malaysia corporate records, Cradle’s start-up database and direct company submissions, with financial data drawn up to FY24.

Rather than rank businesses against one another, it groups them alphabetically across seven sectors: AI and data, automotive and logistics, commerce and consumers, deep tech and life sciences, enterprise and workforce, fintech, and sustainability and environment.

Automotive and logistics accounted for the largest revenue contribution, generating about RM4.5 billion across 12 companies, followed by commerce and consumers at RM2.5 billion across 27 companies.

Fintech contributed approximately RM700 million from 25 companies, while deep tech and life sciences generated about RM300 million across eight businesses.

The remaining contributions came from AI and data, sustainability and environment, and enterprise and workforce, reflecting a spread of commercial activity across consumer services, business solutions and specialised technologies.

However, the sectors differed considerably in their pace of expansion. AI and data recorded the highest average CAGR at 177%, followed by commerce and consumers at 102%, and deep tech and life sciences at 82%.

The report’s technology mapping also found that 66% of the Top 100 were AI and data driven, including businesses classified in other sectors that used these technologies in their products or operations.

Norman explained that the publication distinguished between a start-up’s primary technology and other technologies that influenced its business.

This allowed readers to identify connections across sectors rather than view each category in isolation.

The sector profiles also set out companies’ funding stages, business activities and international operations, giving potential partners more information about their capabilities.

“So, it gives that visibility for each of the Top 100, not just in name, but also in terms of what they do, where they are and where they have expanded to,” he said.

Beyond domestic performance, the companies’ international presence covered 33 countries and territories across six continents.

Singapore and Indonesia were expansion markets for companies from all seven sectors. Other leading destinations included Thailand, Vietnam, the Philippines, China, Australia, Brunei, Cambodia and the United Arab Emirates (UAE).

Commerce and consumers had the largest number of startups operating internationally.

Although AI and data had the smallest international count, the sector had the widest global reach, according to the publication.

The briefing also highlighted emerging start-up activity outside the Klang Valley, with Norman pointing to data from the MYStartup Single Window platform that tracks companies across Malaysia.

“It is interesting to note that even Sabah and Sarawak form the top six in terms of the number of start-ups within Malaysia,” he said.

The publication also includes a section on future start-ups to watch, covering fields such as biotechnolog y, semiconductors, AI and space technology.

Norman added that Cradle intended to continue developing this section alongside the main list in subsequent editions.

For founders and potential partners, the report brings together information on government support spanning funding, infrastructure, talent, investor participation and market access.

The next opportunity to connect these groups will be the Cradle LIVE! Summit 2026, scheduled for Nov 4 and 5 at The Arch Galleries in Kuala Lumpur (KL).

Under the theme “Build in Malaysia. For ASEAN & Beyond.”, the summit will bring together start-ups, investors, industry players and ecosystem partners.

Chang said its ambition aligned with the publication’s findings: Developing companies in Malaysia with the capability to expand across ASEAN and into global markets, in support of the country’s aspiration to join the world’s leading start-up ecosystems by 2030.