Mapping the players in Southeast Asia’s expanding ecommerce basket

Most of the capital raised by Southeast Asia’s startups in the past few years flowed into ecommerce, according to Tech in Asia data. However, the sector is not immune to the current funding winter.

The total number of ecommerce deals has steadily decreased over the past quarters, falling to just 19 in the first quarter of this year versus 35 during the same period in 2023.

The total value of ecommerce sales globally grew fivefold between 2016 to 2021, according to a report by management consultancy firm McKinsey & Company. In Southeast Asia, ecommerce accounted for 20% of all retail sales in 2021, up from 5% in 2016.

Several factors drove this surge, including increased internet availability that led to widespread smartphone adoption. Another was the growing population of tech-savvy individuals and businesses looking to gather an online audience.

More online marketplaces have also sprouted up, fueling the growth of logistics firms like Ninja Van, Flash Express, and J&T Express. Shopee has developed its own logistics network called Shopee Express to deliver orders at the “fastest time possible.”

As ecommerce adoption skyrocketed, so did VC interest in the industry. Ecommerce was regularly one of the most funded tech industries in Southeast Asia over the years, sitting alongside fintech. However, funding in the space has cooled down in the past two years amid the economic downturn.

Platforms like Lazada and Shopee have become household names. Almost half of the region’s ecommerce transactions by value took place on Shopee in 2022, more than any other platform in Vietnam, Thailand, Singapore, Malaysia, Indonesia, and the Philippines.

Lazada logged the largest ecommerce deal so far this year, securing US$230 million from its parent firm Alibaba in May.

In 2022, Shopee recorded a gross merchandise value (GMV) of US$73.5 billion. The following year, that number increased slightly to US$78.5 billion.

The merger between TikTok Shop and GoTo-owned Tokopedia was completed in January. A month later, GoTo chief Patrick Walujo said during a public event that the company ceded control of Tokopedia amid falling market share and “very intense” competition among ecommerce players in Indonesia.

Before the deal, TikTok Shop reportedly aimed to grow its GMV in Indonesia to about US$6 billion in 2023, triple its 2022 numbers. In comparison, Tokopedia’s GMV was at US$15.6 billion in 2023.

See also: Shopee’s mimicry of TikTok Shop is starting to pay off

The merged entity could push Shopee out of the top spot in Indonesia in terms of GMV, which sat at an estimated US$20.8 billion in 2023. Shopee has responded to this threat by doubling down on livestreaming and replicating TikTok’s social media formula.

Going rural

Growth ahead