Shopee in the spotlight

Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.

Hello reader,

Confession: I buy a lot of stuff on Shopee. The ecommerce app is my first port of call whenever I need to purchase something.

Drawer organizers, sewing shears, sleeping shorts, retinol eye cream, a new phone – you name it, I probably got it on Shopee, unless I needed it urgently and couldn’t wait for delivery or it was cheaper on another platform like Shein.

And I know I’m not alone in this. Lots of people turn to Shopee when they need to buy something, all across Southeast Asia (and some parts of Latin America, too).

So it’s no surprise that it’s gotten a lot of attention at parent firm Sea Group’s latest earnings call. Indeed, Sea is pretty upbeat on its outlook for the ecommerce firm- my colleague Simon goes deeper in today’s premium story.

Today we look at:

Why Shopee’s in the spotlight after Sea’s 2023 results
Singapore-based AI startup Sqreem’s acquisition of an Australian advertising firm
Other newsy highlights such as Xendit’s expansion into Indonesia and Silicon Box’s chip factory plans in Italy
Premium summary
All eyes on Shopee

Image credit: Timmy Loen

Sea Group announced its fourth quarter and full-year 2023 numbers last week. For the first time, it recorded a profit for its full-year figures, which led to a 17% increase in share price in the four trading sessions following the announcement.

Shopee in the spotlight: Shopee’s contribution toSea’s overall sales has surged over the years. In 2019, the firm accounted for 38% of the group’s total revenue – that figure grew to 69% in 2023.

Staying ahead of the curve: Despite having strong competition, Shopee’s management expects the firm to grow its top line and maintain its market share. The company looks to bolster this growth through unique offerings such as “return on the spot” and in-house services such as Shopee Express.

For comparison: Full-year revenue at Garena, Sea’s gaming arm, declined by 44% in 2023 compared to the previous year. Meanwhile, adjusted EBITDA at SeaMoney, the group’s fintech unit, experienced a quarter-on-quarter decline in Q4 2023, the first time it had done so since Q3 2021.
Read more: Sea’s upbeat outlook on Shopee drives enthusiasm, but can it deliver?

Startup spotlight
I Sqreem, you Sqreem

Image credit: Timmy Loen

Singapore-based AI company Sqreem Technologies has acquired Trade Indy, an Australia-based advertising firm.

Background info: Sqreem provides AI-powered B2B solutions that specialize in analyzing digital behavior. Meanwhile, Trade Indy focuses on helping clients plan, execute, and optimize digital marketing campaigns.

Win-win situation: With the acquisition, Sqreem aims to improve its services, such as audience targeting and insights. The deal will also help both Sqreem and Trade Indy reach more clients globally.

The big picture: The development aligns with the Singapore government’s growing focus on the AI sector. In February, the country announced that it will invest over US$740 million into AI initiatives over the next five years.
See also: Is Singapore’s LLM project timely or too late?

Quick bytes
1️⃣ OKX gets the OK

Crypto exchange OKX has secured in-principle approval for its major payment institution license from the Monetary Authority of Singapore. This allows OKX to offer digital payment tokens and cross-border remittance services to customers in Singapore.

2️⃣ Money for money

Indonesia-based fintech startup AwanTunai has raised US$27.5 million in series B funding, which it aims to use to expand its lending capital facilities. The company also said that it recently hit positive EBITDA.

3️⃣ Making chiplets

Silicon Box, a Singapore-based chipmaker, has announced that it will build a US$3.5 billion chiplet factory in northern Italy. Once completed, the facility is expected to provide up to 1,600 new jobs.

4️⃣ Destination: Thailand

Indonesia-based Xendit has entered Thailand, its fourth market in Southeast Asia. The firm’s Thailand business will be headed by Tessa Wijaya, one of Xendit’s co-founders.

{Categories} _Category: Platforms,*ALL*{/Categories}
{Author}Stefanie Yeo{/Author}
{Keywords}Newsletters,daily newsletter,Ecommerce,fundraising,gaming,Garena,newsletter,newsletters,Sea,Sea Group,Shopee,Startup Funding,Startup Fundraising{/Keywords}
{Source}Tech in Asia{/Source}

Exit mobile version