Brazil remains Shopee’s shining beacon of hope

Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.

Hello reader,

17,740 kilometers (11,023 miles) separate Indonesia and Brazil, the largest economies in Southeast Asia and Latin America, respectively. And yet these nations share some uncanny similarities, which ecommerce marketplace Shopee aims to leverage.

From feijoada to nasi goreng and the Samba to the Serimpi, Brazil and Indonesia could not be more culturally and historically different, but today, both countries have high levels of internet and ecommerce penetration, making them fertile grounds for a Southeast Asian giant such as Shopee.

Concerns have been raised over Shopee’s global aspirations as the firm has undergone a drastic pullback in recent months as parent Sea Group reins in costs amid macroeconomic uncertainties. However, Shopee’s success in Brazil – where it is the third most downloaded shopping app of all time – largely vindicates the firm’s desire to venture beyond Southeast Asia.

In today’s featured piece, Tech in Asia’s chief analyst, Simon Huang, breaks down how Shopee established itself as a major ecommerce player on the other side of the world after entering Brazil only in 2019. He also explores why its strong performance in the foreign nation could serve as the foundation for the next chapter of its growth.

Today we look at:

• Shopee’s success in Brazil
• Bard, Google’s rival to ChatGPT
• Other newsy highlights such as VinFast downsizing its workforce and Sayurbox closing two warehouse hubs in Greater Jakarta

— Shravanth

P.S.: 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

Shopee’s Samba

Image credit: Timmy Loen

Shopee’s expansion plans haven’t always worked out, but to the firm’s credit, it has been quick to pull the plug on expansion if it fails to make significant inroads in a foreign market. The ecommerce behemoth has been steadily exiting markets around the world, having recently shelved its businesses in Poland, France, Spain, and India.

Latin America isn’t exempt from Shopee’s exodus either. Despite its success in Brazil, the company has called time on its operations in Argentina, Chile, Colombia, and Mexico.

Bard in battle

Quick bytes