Alibaba and Tencent’s footprints across SEA

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Hello reader,

The world works in funny ways. It’s hard enough to predict the outcome of an action, let alone its unintended consequences. Knock-on effects only really show up with time. Today, we bring into focus some of the unforeseen ramifications of China’s crackdown on its biggest tech companies – which has lasted for over a year now.

The ‌campaign first grabbed global headlines when it brought Ant Group’s hotly anticipated IPO to a dramatic end in November 2020. The regulatory clampdown has only gathered steam since then as Beijing has stepped up scrutiny over everything from antitrust concerns to data security and wealth distribution.

While the crackdown has forever shifted the landscape of corporate China, it has also given birth to some rather unusual trends. For instance, affected tech companies have wandered into areas like agriculture, with ecommerce giants JD.com and Alibaba, and video game group NetEase dipping their toes into pig-farming.

However, intensifying regulatory headwinds in China have meant that Alibaba and Tencent have accelerated their investments in key Southeast Asian markets. In today’s premium story pick, we dissect and detail the investments China’s two biggest tech giants made in Southeast Asia last year.

Today we look at,

• Alibaba and Tencent’s SEA investment spree in 2021
• A Singapore-based, HR-focused firm becoming a unicorn
• Other newsy highlights such as mammoth funding rounds for Indian unicorns and Tencent clamping down on corruption

Also, if you’re an entrepreneur looking for funding, fill out this form to get your company featured on our list of fundraising startups.

Premium summary

Pouring money into SEA

Image credit: Timmy Loen

Even before the crackdown, Alibaba and Tencent had been jostling in Southeast Asian markets for some time. From 2014 to 2021, the firms have either led investments or co-invested with regional and international investors across a total of 41 funding rounds, worth US$20.6 billion.

However, facing significant regulatory hurdles in the Chinese market, the Alibaba-Tencent rivalry looks likely to spill over into key battlegrounds abroad.

• Rivalry heats up?: While previous analysis found the two competing for investments in only the fintech sector, Tencent entered ecommerce with three investments in late 2021: Singapore-based collectibles e-tailer Mighty Jaxx, Philippine B2B platform Growsari, and Indonesian ecommerce marketplace Ula.

Peeking into Darwinbox