This company has its game face on for new frontiers

This company has its game face on for new frontiers

By: 
Trinity Chua
18/11/16, 05:14 pm

SINGAPORE (Nov 18): This year, a newcomer joins the ranks to capture a slice of the online shopping pie: Shopee, powered by Southeast Asia’s most valuable start-up, Garena.

There are about 1.5 million registered sellers on Shopee, while 70% of the user base comprises repeat customers. Garena recently raised US$170 million in Series D funding to help Shopee grow in Southeast Asia. During its inaugural 9.9 Mobile Shopping Day sale this year, orders increased fivefold.

But the rise of flash sales and online shopping also signals an underlying problem in Southeast Asia: Many e-commerce platforms have not started to think about profits. Meanwhile, retailers and logistics partners are starting to feel the pinch from lower margins as competition among marketplaces grows.

In 2014, Garena started an e-payment services firm, AirPay, as an attempt to transform itself from a gaming arena to an internet consumer giant.

But as what is similarly happening in the e-commerce sector, e-payment start-ups are facing pressures. Competition is brutal as it does not take much to start an e-payment company.

Although both Shopee and AirPay have seen some early success, the cards are still up in the air on whether Garena will be able to replicate the same long-term success it has had with games amid the stiff competition and razor-thin margins in the e-commerce and e-payment spaces.

Is Singapore’s most valuable start-up likely to come out ahead in these industries? Find out in our cover story “Growing beyond games”, in this week’s issue of The Edge Singapore (Issue 755, Week of Nov 21), available at newsstands now.

Right timing: STI’s upclimb supported by momentum and moving averages

SINGAPORE (Apr 20): There has been little change in the trend and chart pattern of the Straits Times Index. The index has been on a very glacial ascent towards 3,420, the target indicated when the index broke out of resistance at 3,190 in mid-Jan. Quarterly momentum eased during the past four trading sessions. The 100- and 200-day moving averages have turned positive. This coupled with positively placed DIs and rising ADX should continue to underpin the STI. The only cautionary signals are the somewhat overbought levels of short term stochastics and 21-day RSI, and stagnant vol....
Read More >>

SMI takes legal action against Hyflux; Maybank moves on Tuaspring

(Apr 20): SM Investments (SMI) has terminated its rescue agreement with Hyflux, it announced on Friday. Hyflux, on its part, had already on April 4 terminated the same agreement with SMI. SMI claims it has thus far abided by the agreement. “To clarify, SMI does not accept the purported termination of the Restructuring Agreement by Hyflux on 4 April 2019. This is because the termination was not in accordance with the terms of the Restructuring Agreement," said SMI. Under the agreement reached last October, SMI, led by Indonesian tycoon Anthoni Salim, was to have invested $530 million in....
Read More >>

CCT reports 3.8% higher 1Q DPU of 2.20 cents on higher property contributions

SINGAPORE (April 19): The manager of CapitaLand Commercial Trust (CCT) has reported a 1Q19 distribution per unit (DPU) of 2.20 cents, rising 3.8% y-o-y from 2.12 cents due to higher contributions from Gallileo and Asia Square Tower 2. Gross revenue and net property income (NPI) for the quarter increased by 3.5% and 3.4% to $99.8 million and $79.8 million, respectively. This comes after booking contributions from Gallileo – an office building in Frankfurt, Germany which the trust acquired a 94.9% stake in during June 2018 – as well as higher occupancy at Asia Square Tower 2, both of w....
Read More >>