Hunger of all things digital lead e-commerce businesses soar in Southeast Asia. Sea Group, a Singaporean super app stocks reaches $200bn, the stocks later lead Sea Group as the first Southeast Asia firm entering world’s mega-cap company. But Sea Group was before, climbing up fragile ladder to finally attain its today’s achievement.
Tencent, Chinese’s top notch internet cut its stake in Sea Group from 21.3% to 18.7%. Tencent also reduces almost half of its holding at time when Sea Group joined listing in 2017. This situation leads to markets’ doubt over Sea Group’s prospect. Following this decline, another problem appeared. Sea Group’s FreeFire was banned in India.
India’s government imposed restrictions against Chinese apps and FireeFire, Many savvy users find another way to keep enjoying the game, but the lost of Indian users is a huge destruction for the company. Across the globe, Indian players are always the highest or the most fertile gaming ground. App Annie, research firms reports that the highest gaming downloaders are from India. Plus, FreeFire was the highest-gross-gaming mobile game in India. It contributes to at least 10% of Sea Group’s digital revenue.
Things get worse when India also bans Shopee. Confederation of All India Traders (CAIT), a group consisting of small businesses argued that it is under Tencent’s control. So the prohibition of Shopee after FreeFire is logical for CAIT as the government tends to ban Chinese apps.
But those do not kill Sea Group entirely. Sea’s share price tripled. It performs so well in technology bets. Still, it is the number one Southeast Asia most valuable listed company, said The Economist. It ranked approximately $715m in gross operating profits. Its shares remain thriving with ARK Next Generation as well as another tech stocks.
