Southeast Asia’s ecommerce sector isn’t immune to funding winter

IN FOCUS

In today’s newsletter, we look at:

• The state of the ecommerce sector in Southeast Asia
• The possibility of Temu entering Indonesia amid the country’s strict regulations
• Vietnam’s Sendo bets on groceries

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Hi there,

For many of us, the pandemic now seems like a distant dream.

Yet, some habits from those times still carry on today: ordering daily necessities or food online, for instance.

These behaviors continue to drive growth in Southeast Asia’s ecommerce market. In this week’s featured story, my colleague Miguel mapped out the current landscape of the ecommerce sector in the region, including funds raised and the market share of ecommerce platforms.

While ecommerce remains the largest contributor to the digital economy in Southeast Asia, this sector is not immune to the funding winter. The total number of ecommerce deals has steadily decreased over the past years, with 2023 recording the lowest figure since 2017.

Meanwhile, in this week’s Hot Take, I analyze the possibility of Temu entering Indonesia. Rumors have surfaced that the PDD-owned ecommerce platform, known for selling inexpensive products, plans to bring its services to the country.

Considering Indonesia’s strict regulations on cross-border ecommerce activities, will this push through? And will it be the right move for Temu?

– Jofie

THE BIG STORY

Mapping the players in Southeast Asia’s expanding ecommerce basket

Image credit: Timmy Loen

Despite the economic slowdown, opportunities for growth abound in the region, particularly in markets like Thailand, Vietnam, and the Philippines.

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI