Once an IPO hopeful, SCI Ecommerce’s nears collapse

SCI Ecommerce, a Singapore-based ecommerce enabler backed by Asia Partners and EDBI, is grappling with potential accounting irregularities, civil proceedings against its former management, and a failed restructuring.

The company has raised over US$65 million in funding to date, including from early investors like Alibaba co-founders James Sheng and Eddie Wu. It posted US$479 million in revenue and turned a net profit in 2022.

Digital collage by Ulla, photo courtesy of SCI Group

In SCI Ecommerce Pte Ltd’s financial statement for the period ending December 31, 2025 (FY 2025), the firm’s auditor Nexia Singapore noted “potential financial irregularities and deficiencies” identified by SCI Group – which refers to SCI Ecommerce and its subsidiaries in other countries – relating to accounting records. These arose “primarily from prior periods and allegedly associated with the previous management.”

SCI Group ended 2025 with US$3.5 million in cash and cash equivalents, down 94% from a year earlier.

Nexia also raised concerns over transactions in 2023 and 2024 that appeared to have been created within SCI Group’s finance and treasury functions to make it look as though the company had bought goods from suppliers and resold them to customers.

In addition, the auditor noted that SCI Group “underwent significant restructuring activities, investigations, and the implementation of a scheme of arrangement process.” However, due to “implementation issues,” the intended restructuring and go-forward business model fell through.

The financial statement reveals that a police report was lodged in January 2026, though it doesn’t mention the parties involved. The report remains ongoing as of the date the financial statement was authorized.

The financial statement also says that civil proceedings commenced in the Singapore High Court “against certain former members of management.” Tech in Asia has reached out to the Singapore Police Force to verify the details of the report.

SCI Group has engaged external legal advisers and forensic specialists to investigate these matters, Nexia noted.

See also: Rising fees are changing the role of SEA ecommerce enablers

The financial statement was prepared on a basis other than going concern, which assumes that a business will cease or liquidate in the foreseeable future.

Potential accounting irregularities

Missing documents

Restructuring hits roadblock