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Hi readers,
Similar to how I can’t stop checking Shopee for discounts, Sea Group can’t seem to stop growing. The company had a great second quarter this year, seeing its revenue increase even more compared to the previous quarter.
While the internet titan is having a wild time this year, let’s not forget that just like every other company, Sea also had to raise funds when it entered the tech scene around 12 years ago.
Fundraising is one of the hardest things to do when you’re building a startup. To help more founders get started on their journey, we’re calling on all the startups that are on the lookout for investors. Simply fill in this form to get your company featured on the list.
Today we look at:
- How Sea posted strong revenue growth but still landed in the red
- The fintech company targeting the US$2.2 trillion sharia finance industry
- Other newsy highlights such as Gojek’s four-wheeler launch in Vietnam and Tencent’s huge revenue growth
PREMIUM SUMMARY
Sea Group’s revenue grew by 158.6% year on year, but it’s back in the red
It’s been a great quarter for Sea Group…or maybe not? The internet giant reported strong revenue growth in its Q2 financial results, but its adjusted EBITDA was at a negative US$24 million – the first time this figure has fallen back in the red since Q1 2020. What happened?
- The costs of running 1.1, 2.2, 3.3: Sea spent a ton of money on promotions last quarter, causing the sales and marketing expenses as a percentage of revenue to bloat from 38.5% to 40.4%. But that’s not the only reason.
- Free Fire has less fire: Garena’s bookings growth has also slipped quarter on quarter from 9.9% in Q1 2021 to 6% in Q2. This was the second-lowest growth rate over the past 10 quarters.
- The good news: Shopee’s gross merchandise value in Q2 was up 19% from the previous quarter and 87.5% from a year ago. At the same time, Sea’s digital financial services business grew by 73% quarter on quarter and 659% from a year ago.
Read more: Sea Group eyes promising new income source amid Garena’s slowing bookings growth
PREMIUM SUMMARY
Can sharia finance finally have a moment in Indonesia?
Ireland, the connected emerald of Europe
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