Shopee in the spotlight

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,

Confession: I buy a lot of stuff on Shopee. The ecommerce app is my first port of call whenever I need to purchase something.

Drawer organizers, sewing shears, sleeping shorts, retinol eye cream, a new phone – you name it, I probably got it on Shopee, unless I needed it urgently and couldn’t wait for delivery or it was cheaper on another platform like Shein.

And I know I’m not alone in this. Lots of people turn to Shopee when they need to buy something, all across Southeast Asia (and some parts of Latin America, too).

So it’s no surprise that it’s gotten a lot of attention at parent firm Sea Group’s latest earnings call. Indeed, Sea is pretty upbeat on its outlook for the ecommerce firm- my colleague Simon goes deeper in today’s premium story.

Today we look at:

• Why Shopee’s in the spotlight after Sea’s 2023 results
• Singapore-based AI startup Sqreem’s acquisition of an Australian advertising firm
• Other newsy highlights such as Xendit’s expansion into Indonesia and Silicon Box’s chip factory plans in Italy

Premium summary

All eyes on Shopee

Image credit: Timmy Loen

Sea Group announced its fourth quarter and full-year 2023 numbers last week. For the first time, it recorded a profit for its full-year figures, which led to a 17% increase in share price in the four trading sessions following the announcement.

• Shopee in the spotlight: Shopee’s contribution toSea’s overall sales has surged over the years. In 2019, the firm accounted for 38% of the group’s total revenue – that figure grew to 69% in 2023.
• Staying ahead of the curve: Despite having strong competition, Shopee’s management expects the firm to grow its top line and maintain its market share. The company looks to bolster this growth through unique offerings such as “return on the spot” and in-house services such as Shopee Express.
• For comparison: Full-year revenue at Garena, Sea’s gaming arm, declined by 44% in 2023 compared to the previous year. Meanwhile, adjusted EBITDA at SeaMoney, the group’s fintech unit, experienced a quarter-on-quarter decline in Q4 2023, the first time it had done so since Q3 2021.

Read more: Sea’s upbeat outlook on Shopee drives enthusiasm, but can it deliver?

Startup spotlight

I Sqreem, you Sqreem

Quick bytes