Sea eyes clear skies ahead after battling rough waters

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Sea Group’s swift ascent came to a grinding halt right after CEO and co-founder Forrest Li became Singapore’s richest man in September 2021.

By May the following year, the billionaire lost the title and was one of the biggest losers in a market crash that wiped more than US$1 trillion from the net worth of the world’s 500 richest people.

From Shopee’s collapse and Free Fire’s ban in India to a spate of disappointing earnings results, a litany of troubles have weighed on Sea’s share price and have nearly capsized Li’s wealth. More pertinently, the chances of Sea sparking a quick turnaround appeared slim amid unfavorable macro conditions.

Nonetheless, the Southeast Asian tech bellwether managed to pull off a stunning reversal in fortunes recently. Sea’s latest results indicate the firm has landed on a sustainable long-run business model, proving its growth was not reliant on ever-increasing expenses for sales and marketing.

In today’s featured piece, Tech in Asia’s chief analyst Simon Huang highlights the tough decisions and brave calls – such as cutting thousands of jobs, and slashing sales and marketing expenses – that the company took in order to achieve its first-ever quarterly net profit.

Today we look at:

• How Sea pulled off a stunning turnaround
• GoTo Group, Indonesia’s biggest tech firm, narrowing its adjusted EBITDA loss
• Other newsy highlights such as Ajaib benefitting Bitcoin’s recent blitz

— Shravanth

P.S.: If you’re an entrepreneur looking for funding, fill out this form to get your company featured on our list of fundraising startups.

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Riding on the crest of a wave

Image credit: Timmy Loen

It never seems to be plain sailing at Sea Group – at least from the outside. After years of rapid growth, the tech behemoth felt the brunt of last year’s market sell-off, with the tech titan’s valuation falling more than 80% from its peak at one point.

Right on track

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