SCI Ecommerce growth slows as it readies IPO

IN FOCUS

In today’s newsletter, we look at:

• Singapore-based SCI Ecommerce’s slow growth in 2023
• Temu’s expansion into Vietnam hindered by regulations

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Hi there,

We’ve seen a growing number of direct-to-consumer brands in recent years, many of which have secured funding from VC firms.

One reason for this is that the path to profitability is easier to measure for the consumer sector, says one investor I spoke with recently.

In the wake of the tech winter, investor strategies have shifted, and consumers remain open to new options, which has led to the rise of consumer brands.

However, this trend hasn’t lifted all boats in the industry. In fact, ecommerce enabler SCI Ecommerce’s growth slowed last year.

According to its financial statements, SCI’s revenue rose by around 12% year on year, much lower than the 2x surge it experienced from 2021 to 2022. Its operating profit also dropped by 39% over the same period.

My colleague, Miguel, dives deeper into SCI’s financials in this week’s Big Story. This slowdown, which comes as the startup is considering to go public in the middle of 2025, may be concerning for investors.

Meanwhile, in the Hot Take, I examine Temu’s latest expansion into Vietnam, which has been hindered by regulatory issues. Vietnam is crucial for Temu’s Southeast Asia strategy, especially as the company has been blocked from entering neighboring Indonesia.

— Jofie

THE BIG STORY

SCI Ecommerce logs slower revenue growth, lower profit for 2023

Image credit: Timmy Loen

THE HOT TAKE