We wrote a while ago that Shopee is pursuing a risky but correct strategy.
This strategy is probably paying off, for now. On the same day of Google JD announcement, SEA, Shopee’s parent company, announced that it had completed Convertible Notes offering of US$575 million.
General confidence from equity holders also recovered significantly lately:
So now with both Tencent portfolio companies armed with significant war chest, Southeast Asia’s ecommerce scene is becoming more interesting. The camps are becoming obvious as well:
Tencent/Google: Shopee, JD, Go-Jek
Alibaba/Softbank: Lazada, Grab, Tokopedia
Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at [email protected]