Diving into Alibaba and Tencent’s bets in Southeast Asia

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Hello readers,

I’ve been having a massive craving for Japanese octopus balls, also known as takoyaki. There’s just something about its crispy outside, the soft batter inside, and the delicious, tender octopus meat in the middle that make it quite the treat.

You’re probably wondering where I’m going by talking about takoyaki. So in this seamless segue, today’s premium story takes a look at the growing tentacles of Chinese tech giants Alibaba and Tencent in Southeast Asia. As a matter of fact, many of the big names in the region’s tech space count either of the two Chinese firms among their investors.

Today we look at:

• Alibaba’s and Tencent’s investments in Southeast Asia
• The final close of Qiming’s latest fund – and what it plans to do with it
• Other newsy highlights such as ByteDance’s revenue in 2020 and Ant Financial’s plans to sell its US-based asset EyeVerify

PREMIUM SUMMARY

The webs that Alibaba and Tencent are weaving

Alibaba and Tencent are two of the biggest tech companies in Asia – and two of the most powerful investors in the Southeast Asia’s tech scene. As a matter of fact, many of Southeast Asia’s top tech startups – Sea Group, Gojek, Tokopedia, and Lazada – are backed by either of the two Chinese giants. We take a closer look at Alibaba’s and Tencent’s investments in Southeast Asia.

• Sticking to what you know: Alibaba is best known for its ecommerce prowess, and most of its direct investments in Southeast Asia have been in that sector. Through it’s fintech arm Ant Financial, the company has made indirect investments in mobile payment companies across the region. Plus, Alibaba has a number of other funds under its umbrella that have been putting money into Southeast Asian startups.
• Going broad: Tencent’s big investment in Southeast Asia was Sea Group in 2010, a major move to bolster its gaming business in the region. It has been growing its portfolio with strategic investments in industries ranging from the internet and entertainment to ride-hailing.
• Navigating the space: While Alibaba and Tencent have generally stayed out of each other’s lanes, fintech appears to be one sector they’re both putting money into. Plus, given how many of Southeast Asia’s internet heavyweights are backed by Alibaba and Tencent, the relationships between these companies have become more complicated with the influence of China’s big tech.

Read more: Alibaba’s and Tencent’s growing tentacles in Southeast Asia

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