Aditya Hadi Pratama · · 1 min readShopee closes operations in four Latin America countries
Shopee has shut down its entire operations in Argentina and closed local operations in Chile, Colombia, and Mexico to focus on a cross-border model, a company representative confirmed to Tech in Asia.
The development was first reported by Reuters, which mentioned that the decision affected “dozens of employees.” The ecommerce arm of Singapore-based Sea Group will continue to operate in Brazil.
Photo credit: Thiago Prudencio/SOPA Images/LightRocket via Getty Images
In its financial report for the second quarter of the year, Sea Group announced that it decided to suspend its 2022 revenue forecasts for Shopee, which contributed around 60% of its total revenue the previous quarter. The group said that it is an effort to “adapt to increasing macro uncertainties” and “further focus on efficiency and optimization for long-term strength and profitability.”
Sea Group’s shares were down 22% in the three days of trading following the announcement.
According to Shopee, its adjusted EBITDA loss per order, before allocation of headquarters’ common expenses, in a more established market such as Southeast Asia or Taiwan is less than US$0.01. However, the figure stood at US$1.42 in Brazil.
See also: Was Sea’s 22% stock plunge after Q2 results an overreaction?
Editing by Lorenzo Kyle Subido
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