Last week, both Sea Group and Grab released their Q1 2024 results, and the market responded positively - is tech in Southeast Asia recovering?

Grab reported strong Q1 results, but investors are still curious: will Grab become profitable? Over the past few quarters, the management team at Grab has consistently focused on relentless execution and continuous operational improvement. It will be interesting to see how Grab balances its path to profitability and growth (given its penetration in Southeast Asia is only around 5%).

Sea Group also reported a relatively good quarter (evident from the much happier tone during their recent earnings call), with steady growth not only in Shopee but also in SeaMoney and Garena. The group is also trying to deepen its moat through Shopee Xpress (its in-house logistics arm).

On the other hand, we see TikTok Shop taking a much less aggressive approach in Q1. Earlier this year, TikTok Shop started increasing take rates (possibly as a strategy for sustainable growth in the region) - Does this mean that TikTok Shop is giving up on overtaking Shopee?

Featured materials:

Sea Limited Reports First Quarter 2024 Results, Sea Limited

Grab Reports First Quarter 2024 Results, Grab Holdings Inc.

Ecommerce in Southeast Asia, Momentum Works

The TIkTok Shop Playbook, Momentum Works

Does Shopee have a moat, The Impulso Podcast

Dmitry Levit & Boon Ping Chua on the distress in Southeast Asia, and why it’s not evenly distributed, The Impulso Podcast

E78: Is TikTok Shop giving up overtaking Shopee? 29:39 Share

The Impulso Podcast

Shownotes Transcript

E78: Is TikTok Shop giving up overtaking Shopee?