With China’s technology giants facing a plethora of struggles, Southeast Asia was supposed to be the hip new market that offered a well of fast-growth companies. That’s coming at a heavy cost.
Earnings reports from e-commerce and gaming provider Sea as well as food and deliveries giant Grab Holdings are a stark reminder that years of break-neck speeds have been largely driven by subsidies and marketing. That wasn’t a problem when deep-pocketed venture capitalists like SoftBank Group Corp and Temasek Holdings were pumping money in during their startup phases.
But now they need to walk on their own. And they’re stumbling.