It’s time to pay attention to GoTo, Grab, and Sea’s fintech arms

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IN FOCUS

In today’s newsletter, we look at:

• The growing significance of fintech services to Southeast Asian tech giants
• Student resistance to online loans in Indonesia
• A former salesperson suing UK payments unicorn Rapyd for over US$1.1 million in unpaid commissions

Hi there,

Every day, we’re presented with opportunities to prioritize what truly matters: staying home when sick instead of hitting the gym, attending our child’s school play over working late, or opting for a quiet night with a good book over a crowded event.

Now, as AI and semiconductors shake up the tech scene, companies and innovators are diving in headfirst – just ask Masayoshi Son of SoftBank Group.

Southeast Asia’s tech giants have demonstrated similar adaptability in their businesses. Since 2021, GoTo Group and Grab have both seen increases in the share of fintech as part of their overall revenues, showing that they haven’t rested on the laurels of their original ride-hailing verticals.

Sea Group has also experienced this shift. In the first quarter of 2024, its financial services business, SeaMoney, overtook its gaming arm, Garena, to become the company’s second-largest revenue source after ecommerce, as my colleague Simon points out in this week’s Big Story.

Fintech was the fastest-growing division among these three tech firms between 2022 and 2023, although their playbooks may differ depending on the businesses they are in and the strategic choices they make.

Meanwhile, college students in Indonesia are still hesitant about taking on loans through digital platforms despite recent increases in tuition fees, which have sparked protests. What can online lenders do to address this? More on the Hot Take.

— Budi

THE BIG STORY

Why fintech arms of GoTo, Grab, Sea deserve more attention

Image credit: Timmy Loen

Fintech has the potential to be more profitable than the other business units of Southeast Asia’s tech majors.

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI