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Miguel Cordon · · 3 min readSCI Ecommerce logs slower revenue growth, lower profit for 2023
SCI Ecommerce, a Singapore-based ecommerce enabler, saw slowing growth, even as its operating profit shrinks.
This may make the startup a harder sell to investors as it considers an IPO in Singapore as soon as mid-2025.
Photo credit: SCI Ecommerce
The company’s revenue grew by around 12% year on year in 2023 to US$492.3 million, according to its audited financial statement. This compares to the over 2x surge in revenue it logged from 2021 to 2022.
Meanwhile, its operating profit fell by 39% to around US$2 million, as growth in expenses overtook the growth in revenue.
SCI Ecommerce did not respond to Tech in Asia’s request for comments.
Divergence in revenue growth
Founded in 2014, SCI Ecommerce offers services that help brands and merchants navigate online retail. Its solutions include online store management, marketing, warehousing, customer service, and financial settlement.
The company previously broke down its revenue sources between solutions that sell consumer products with or without service revenue. Now, it distinguishes between merchant solutions and integrated brand management services.
The former relates to revenue the company gets from helping its clients sell their products on online platforms or through other channels, while the latter comes from offering other ecommerce solutions such as the ones mentioned above.
Over the past year, revenue growth was driven by integrated brand management and services, while merchant solutions stagnated.
The nature of the company’s expenses have also changed.
Selling and distribution costs declined by 14% in 2023 compared to the previous year, but other expenses – which include cost of sales and administrative expenses – went up.
Notably, its interest expense on bill payables rose by US$5.1 million between 2022 and 2023.
The company logged US$51.2 million in net cash used from operating activities in 2023, a reversal from the year before.
A listing for growth
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The Singapore-based ecommerce enabler may go public as early as next year, which could push its valuation over US$1 billion.
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