Boom now, burn later? SEA’s credit play

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In focus

For this edition, we cover:

• SEA’s tech giants are hooked on credit, and it’s raising eyebrows
• The latest on VNG’s financial health
• Granite Asia locks in US$250 million for its private credit fund

Hello reader,

Every time I shop on an ecommerce platform, I’m hit with flashy buy now, pay later (BNPL) discounts, often more generous than those tied to cards or e-wallets. It’s no wonder BNPL adoption is soaring, especially in Southeast Asia’s ecommerce scene.

Platforms are doubling down. Sea, for example, recently rebranded its fintech arm from SeaMoney to Monee and opened a new HQ in Singapore for its fintech unit, clear signs it’s betting big on financial services.

But the rush into BNPL and lending is sparking concern. Many users are first-time borrowers, and with rising layoffs and a shaky economic outlook, the risk of debt traps is growing, not just for younger generations but for older consumers too.

In today’s Big Story, I explore what’s fueling the rise of BNPL and lending services offered by Southeast Asia’s tech giants, why regulators are starting to take notice, and how ecommerce platforms are balancing rapid expansion with growing responsibly.

For the Spotlight, we dive into fresh data on the financial health of Vietnam’s first tech unicorn, VNG. Interestingly, both VNG and Sea Group share a common thread, they each began their journey in gaming before branching into broader tech ambitions.

Jofie Yordan

The Big Story

SEA’s tech giants revel in lending boom, but a major test is incoming

Shopee’s office in Jakarta / Photo credit: jafriyalbule / Shutterstock

Players like SeaMoney are growing loan books to the tune of billions of dollars. But most users are first-time borrowers in the middle of an economic slump.

Spotlight

VNG’s financial health in 5 charts

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