R. Hirschmann
Research expert covering Singapore, Indonesia and Malaysia
Sea Limited - statistics & facts
Sea Limited is Singapore’s largest technology company and operates three key business segments: online gaming, e-commerce, and digital financial services. Founded in 2009 by Forrest Li as Garena, a developer of online games, Sea Limited expanded into e-commerce with the founding of the online marketplace Shopee and digital financial services through SeaMoney. In 2017 it launched its IPO on the New York Stock Exchange, the first Southeast Asian tech firm to do so. After facing turbulent times in recent years, the company is expecting to close the year on a positive balance.
Shopee, on the other hand, has established itself as the undisputed e-commerce leader in Southeast Asia. The company operates a hybrid C2C and B2C model and introduced an integrated payment system through ShopeePay for a seamless consumer experience. With operations in the major Southeast Asian markets, Shopee had more online marketplace web visits worldwide than established brands like AliExpress, Etsy, and Walmart.
More often than not, tech companies operate in the red. For Sea Limited, it’s meteoric rise as one of Singapore’s largest tech unicorns must give way to stability and profitability. The company must also stay ahead of the competition, especially in the fast-moving e-commerce segment, in order to maintain its dominance in that market.
Southeast Asia’s leader in e-commerce and online gaming
Sea Limited’s two biggest business segments are digital entertainment and e-commerce through its companies, Garena and Shoppee, respectively. Garena is a developer and publisher of free online games. Its most popular, Free Fire, a battle royale third-person shooter mobile game, and its Free Fire tournaments rank among the most watched e-Sports events globally. In the 2023 Free Fire World Series, professional eSports players competed for a prize pool totaling one million U.S. dollars.Shopee, on the other hand, has established itself as the undisputed e-commerce leader in Southeast Asia. The company operates a hybrid C2C and B2C model and introduced an integrated payment system through ShopeePay for a seamless consumer experience. With operations in the major Southeast Asian markets, Shopee had more online marketplace web visits worldwide than established brands like AliExpress, Etsy, and Walmart.
Shopee retains its e-commerce dominance over Southeast Asia
Southeast Asia has proven to be a lucrative, emerging market for e-commerce. With a large pool of digitally savvy consumers, many new e-commerce players have entered the market. Industry disrupters such as Temu and Shein, and social commerce sites such as TikTok Shop are challenging Shopee for a larger slice of the e-commerce pie. However, as of the second quarter of 2024, Shopee is still Southeast Asia’s preferred e-commerce marketplace, posting revenues of 2.8 billion U.S. dollars.Push for profitability pays off for Sea Limited
For several years, the e-commerce and digital financial segments have been incurring losses for Sea Limited as the company favored growth over profitability in these sectors. Sea Limited had previously relied on the profits from digital entertainment to absorb these losses. However, in late 2022, the company embarked on an aggressive strategy to increase profitability, with drastic cost-cutting measures, including layoffs. These measures seemed to have borne positive results, with the company posting profits in the second quarter of 2024.More often than not, tech companies operate in the red. For Sea Limited, it’s meteoric rise as one of Singapore’s largest tech unicorns must give way to stability and profitability. The company must also stay ahead of the competition, especially in the fast-moving e-commerce segment, in order to maintain its dominance in that market.
