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Southeast Asia's digital economy is experiencing its slowest growth on record, with online spending expected to rise by 15% to $263 billion this year, a decrease from the previous year's 17%. Consumer demand is weakening due to factors such as inflation and interest rates, leading to questions about the sustainability of tech investments in the region. Despite challenges, the region's internet economy is projected to rebound next year, driven by factors like increasing user sophistication and the importance of digital safety and security. Additionally, Southeast Asia is becoming a hotspot for investments in data centers, with tech giants committing billions of dollars to build AI-ready facilities. [Extracted from the article]

Southeast Asia's digital economy is experiencing its slowest growth on record, with online spending expected to rise by 15% to $263 billion this year, a decrease from the previous year's 17%. Consumer demand is weakening due to factors such as inflation and interest rates, leading to questions about the profitability of tech investments in the region. Despite challenges, the region's internet economy is still expected to generate $11 billion in profits this year, with a focus on online media. Additionally, Southeast Asia is becoming a hotspot for investments in data centers, with tech giants committing billions of dollars to build AI-ready facilities. [Extracted from the article]

Indonesia's GoTo Group has reported a quarterly profit after implementing significant cost-cutting measures, demonstrating its ability to generate revenue. Despite facing tough competition from Grab Holdings Ltd., GoTo posted a 137 billion rupiah ($8.7 million) adjusted earnings before interest, taxes, depreciation, and amortization for the third quarter. The company has made strategic moves such as relinquishing control of its e-commerce arm to TikTok and exiting operations in Vietnam to focus on profitability in Indonesia and Singapore. While GoTo has not yet achieved positive net income, it is making progress towards breaking even and exploring potential mergers to strengthen its position in the market. [Extracted from the article]

GoTo Group in Indonesia reported a quarterly profit after implementing cost-cutting measures, showing investors its ability to generate income. Despite facing competition from Grab Holdings Ltd., GoTo posted a 137 billion rupiah adjusted earnings before interest, taxes, depreciation, and amortization for the third quarter. The company aims to break even on an adjusted Ebitda basis for the full year, focusing on profitability by relinquishing control of its e-commerce arm to TikTok and streamlining operations. Discussions of a potential merger with Grab signal aggressive strategies in response to market challenges. [Extracted from the article]

Indonesia's GoTo Group has reported a quarterly profit after implementing cost-cutting measures to demonstrate its ability to generate revenue. Despite facing tough competition from Grab Holdings Ltd., GoTo posted a 137 billion rupiah ($8.7 million) adjusted earnings before interest, taxes, depreciation, and amortization for the third quarter. The company aims to break even on an adjusted Ebitda basis for the full year, focusing on profitability by streamlining operations and exiting unprofitable ventures. While GoTo has made progress under new leadership, challenges persist as it seeks to achieve positive net income and navigate a competitive market landscape. [Extracted from the article]

Group One Holdings, the company behind One Championship, a mixed martial arts brand, recently secured a $50 million funding round with investors including the Qatar Investment Authority. This investment values Group One at $1.35 billion, similar to a previous round led by QIA in 2021. Group One has partnerships with BeIN Media Group and Amazon Prime Video for broadcasting events, and is considering an IPO in the US. The company also operates One Esports and has partnerships with various broadcast networks. [Extracted from the article]

Group One Holdings, the company behind One Championship, a mixed martial arts brand, has raised at least $50 million in funding, with Qatar Investment Authority (QIA) among the investors. This funding round values Group One at a minimum of $1.35 billion, similar to a previous round in 2022 led by QIA and Guggenheim Investments. Group One has partnerships with BeIN Media Group and Amazon Prime Video to broadcast events in the Middle East, North Africa, the US, and Canada. The company is considering an IPO in the US in the future. [Extracted from the article]

OpenAI, a San Francisco-based startup, is opening a new office in Singapore to meet the growing demand for artificial intelligence tools in the Asia-Pacific region. The office will serve as a hub for OpenAI to collaborate with partners, governments, and customers in the region. OpenAI is partnering with AI Singapore, a local research initiative, to strengthen its presence in the area. Singapore is becoming a hub for major US internet firms, and OpenAI sees it as a leader in artificial intelligence. The company recently secured significant funding and has a valuation of $157 billion. [Extracted from the article]

Samsung Electronics Co. is planning to cut thousands of jobs in Southeast Asia, Australia, and New Zealand as part of a global reduction in headcount. The layoffs could affect about 10% of the workforces in those markets, with job cuts also planned for other overseas subsidiaries. Samsung has about 147,000 staff overseas, and while it is not planning layoffs in its home market, it is facing struggles in key markets such as memory chips and smartphones. The company aims to preserve manufacturing jobs while cutting management and support functions. [Extracted from the article]

Samsung Electronics Co. is planning to lay off workers in Southeast Asia, Australia, and New Zealand as part of a global effort to reduce its workforce by thousands of jobs. The layoffs could affect around 10% of the workforces in those markets, although the numbers may vary for each subsidiary. The company has about 147,000 staff overseas, more than half of its total employee count, and it is not planning any layoffs in its home market. Samsung aims to preserve manufacturing jobs while cutting management and support functions. The company has previously reduced its workforce in India and parts of Latin America. [Extracted from the article]

Canva, a graphic design software company based in Australia, is preparing for an IPO and aiming to compete with Adobe in the creative software market. Canva, valued at $26 billion, currently holds just 4% of the market share compared to Adobe's 70%. To expand its market share, Canva is focusing on the high-margin enterprise market and investing in artificial intelligence. The company recently acquired generative AI startup Leonardo.Ai and is developing AI-powered tools to cater to the needs of large companies. Canva's IPO is expected to bring in fresh capital for product development and acquisitions. However, it faces challenges such as competition from Adobe and the need to convince corporate users to switch to its platform. [Extracted from the article]

Sea Ltd.'s online-retail arm, Shopee, has partnered with YouTube in Indonesia to attract more shoppers and stay ahead of competitors TikTok and Lazada. This partnership allows content creators to promote and tag products in their YouTube videos, with viewers able to click on a link to complete a purchase on Shopee. YouTube plans to expand this shopping feature to Thailand and Vietnam in the future. As competition intensifies in the Southeast Asian e-commerce market, Sea's Shopee is working to maintain its leadership position against challengers like TikTok and Lazada. [Extracted from the article]

Livspace, a home interiors and renovation platform, is expected to achieve its first net income in the first quarter of 2025, moving closer to an initial public offering (IPO). The Singapore-based startup, backed by KKR & Co. and Goldman Sachs Group Inc., has been cash flow positive since October 2023 and is experiencing 40% year-over-year revenue growth. Livspace plans to shift its base to India in mid-2025, as it receives 85% of its revenue from the country. The company aims to grow its revenue organically and expand its presence in India, focusing on areas such as home furnishing and kitchen appliances. [Extracted from the article]

GoTo Group, an Indonesian ride-hailing provider, has reached a five-year agreement with Alibaba Group Holding Ltd. to use its cloud services. As part of the deal, Alibaba has committed to not further reduce its stake in GoTo. This partnership could help boost GoTo's stock price, which has declined significantly since its IPO in 2022. GoTo will utilize Alibaba's computer infrastructure to support its ride-hailing and delivery services in Indonesia and Singapore. The financial details of the agreement were not disclosed. GoTo had previously signed a cloud deal with Google. Despite facing competition and job cuts, GoTo aims to achieve profitability under its new CEO, Patrick Walujo. [Extracted from the article]

The US government's plan to impose taxes on Chinese goods valued at less than $800 is causing uncertainty for companies like Alibaba, Temu, and Shein, who are already facing challenges in the consumer sector. This move will close a loophole that Temu and Shein have used to ship millions of packages to the US annually, competing with Amazon. While analysts expect Temu and Shein to be most affected by the crackdown, the extent and size of the tariffs will determine the impact. The proposed rules aim to reduce tariff evasion and prevent the importation of illegal items. Both Temu and Shein have stated that their growth does not rely on the tax-free policy and they will focus on business efficiencies and customer satisfaction. The impact of this crackdown is expected to be broad, with potential benefits for US retailers like eBay and Etsy. Shein, which is preparing for an IPO, pioneered the model of targeting cost-conscious Americans with affordable clothing during the pandemic. Temu, on the other hand, has become one of PDD's biggest growth drivers worldwide. However, both companies are facing increasing scrutiny in the US as the relationship between the US and China comes into focus ahead of the November elections. [Extracted from the article]

The US government's plan to impose taxes on tax-free imports of Chinese goods has added to the challenges faced by companies like Alibaba, Temu, and Shein, who are already dealing with a consumer crisis in China. This move could have a significant impact on the US retail market and affect the growth of bargain retailers like Temu and Shein. While the extent and size of the tariffs are still uncertain, analysts expect these companies to bear the brunt of the crackdown. The proposed rules aim to reduce tariff evasion and prevent the entry of illegal items into the country. [Extracted from the article]

Genesis Alternative Ventures, a private lender based in Singapore, has closed its second debt fund at $125 million, towards the lower end of its target range. The fund aims to provide financing to young companies across Southeast Asia, attracting new investors such as Mizuho Bank from Japan and OurCrowd Ltd from Israel. The global economic outlook has led to depressed valuations for tech companies, making it challenging for venture firms to raise capital. However, Genesis has already lent over $20 million to nine startups, including Aonic, Eezee Pte, and Akulaku Inc. [Extracted from the article]

Genesis Alternative Ventures, a private lender based in Singapore, has closed its second debt fund at $125 million, towards the lower end of its target range. The fund aims to provide financing to young companies across Southeast Asia, attracting new investors such as Mizuho Bank from Japan and OurCrowd Ltd from Israel. The global economic outlook has led to depressed valuations for tech companies, making it challenging for venture firms to raise capital. However, Genesis has already lent over $20 million to nine startups, including Aonic, Eezee Pte, and Akulaku Inc. [Extracted from the article]

Singapore payments company Nium Pte has delayed its plans for an initial public offering (IPO) in the US by over a year in order to focus on team building and revenue growth. The company, valued at $1.4 billion, now aims to go public by the end of 2026, instead of the previously targeted second quarter of 2025. Nium, which helps companies with cross-border payments, increased its revenue by 50% last year to $120 million and is now expanding in regions such as the UK and Latin America. The company recently hired a new chief financial officer and plans to use funds from a recent fundraising round for acquisitions in the real-time payments sector. [Extracted from the article]

GoTo Group, a ride-hailing provider, is exiting the Vietnam market in order to focus on achieving profitability in its main operations in Indonesia and Singapore. The company's Gojek brand will close its Vietnam business on September 16. This move is not expected to have a significant impact on GoTo's financials, as the Vietnam unit accounted for less than 1% of its gross transactions in the second quarter. GoTo has been facing tough competition from Grab Holdings Ltd. in Vietnam and has been cutting spending as user growth slows. Despite efforts to reduce costs and reach profitability, the company has yet to achieve positive net income. GoTo is considering aggressive options, including a potential merger with Grab, to reduce spending and attract users. Other ride-hailing contenders in Vietnam include Be Group, which recently raised $30 million to accelerate its growth. [Extracted from the article]

SCI Ecommerce, a company backed by Singaporean buyout firm Asia Partners, is considering an initial public offering (IPO) in Singapore in mid-2025. The potential IPO could value the company at over $1 billion. SCI helps brands like Danone, Huggies, Nestle, Philips, and Unilever establish and manage their online operations in Southeast Asia and China. Singapore's IPO activity has been low this year, with only one first-time listing raising $19.5 million. [Extracted from the article]

Singapore is proposing a new law called the Protection from Scams Bill, which would allow the police to instruct banks to freeze the accounts of individuals suspected of being involved in scams. The law aims to address the high number of scam cases where victims willingly transfer money to scammers. The proposed law would only apply to scams conducted remotely, such as through phone calls or online platforms. Individuals who are affected by the freezing of their accounts can apply to the police for access to their funds and can also appeal to the Minister for Home Affairs. Public feedback on the bill is being sought until the end of September. [Extracted from the article]

Grab Holdings Ltd., a Southeast Asian ride-hailing and delivery firm, reported lower-than-expected quarterly revenue growth, indicating ongoing challenges in achieving sustainable profitability. The company's revenue rose 17% to $664 million in the three months through June, missing analysts' predictions. Grab is striving to demonstrate the effectiveness of its cost-cutting efforts and achieve sustained profitability, but faces tough competition from Indonesia's GoTo Group. Despite stabilizing losses and outperforming regional rivals, Grab's shares have declined 69% since going public in 2021. Slower growth rates and reduced customer spending in the region have contributed to Grab's challenges. [Extracted from the article]

Grab Holdings Ltd., the largest ride-hailing and delivery company in Southeast Asia, reported lower-than-expected quarterly revenue growth, leading to a 5.5% drop in its stock. The company's revenue rose 17% to $664 million in the three months through June, missing analysts' predictions. Grab is facing intense competition from Indonesia's GoTo Group, which is keeping prices low and margins thin for both companies. Despite its stock decline, Grab's losses have narrowed, and it aims to achieve profitability in the future. [Extracted from the article]

Grab Holdings Ltd., the largest ride-hailing and delivery company in Southeast Asia, saw its shares drop by 10% after reporting lower-than-expected quarterly revenue growth. The company's revenue rose 17% to $664 million in the three months through June, missing analysts' predictions. Grab is facing tough competition from Indonesia's GoTo Group, which is keeping prices low and margins thin. Despite its losses narrowing and a focus on profitability, Grab's shares have declined by 69% since going public in 2021. The company aims to achieve positive net income and free cash flow in the future. [Extracted from the article]

Sea Ltd.'s shares rose by 12% after the company raised its online retail sales outlook, indicating that it is successfully competing against rivals TikTok and Lazada in Southeast Asia. The company's e-commerce arm, Shopee, is expected to see a rise in the value of goods sold this year, and the division is projected to turn profitable in the September quarter. Sea has raised the commissions it charges merchants, demonstrating its confidence in becoming a crucial partner to merchants. The company's gaming arm, Garena, has helped boost profit margins, but it has struggled to release new titles. Sea's digital banking division is also experiencing growth. [Extracted from the article]

Singapore-based e-commerce leader Sea Ltd. has raised the outlook for its online retailing arm, Shopee, indicating that it is effectively competing against rivals such as TikTok and Lazada. The company's second-quarter profit and sales exceeded analysts' estimates, alleviating concerns about Shopee's prospects. Sea has raised the commissions it charges merchants and is focusing on improving profitability through cost-cutting measures and investments in research and development. Additionally, Sea's digital banking division is experiencing growth as it competes with other financial services providers in the region. [Extracted from the article]

Singapore-based e-commerce leader Sea Ltd. has raised the outlook for its online retailing arm, Shopee, indicating that it is effectively competing against rivals such as TikTok and Lazada. The company expects the value of goods sold by Shopee to increase in the "mid-20%" range this year, surpassing previous predictions. Sea also reported better-than-expected second-quarter profit and sales. Shopee has raised its merchant fees to strengthen its position against competitors, and Sea's gaming arm, Garena, has helped improve profit margins. Sea's digital banking division is also experiencing growth as it competes with other financial services providers in the region. [Extracted from the article]

Singapore-based company Sea Ltd. has reported second-quarter earnings that exceeded analysts' estimates, driven by the growth of online shopping in Southeast Asia's e-commerce market. The company's net income reached approximately $80 million, compared to an average estimate of $60 million. Sea's online retail arm, Shopee, is facing competition from TikTok and Lazada, but has raised its merchant fees to boost its margins and maintain its lead. The company's e-commerce gross merchandise volume increased by 29% to $23.3 billion in the second quarter, and Sea predicts further growth in the "mid-20%" range this year. Sea's digital banking division is also experiencing growth, with revenue at its financial services arm increasing by 21%. [Extracted from the article]

Sea Ltd.'s e-commerce platform, Shopee, has increased the commissions it charges merchants in several Southeast Asian markets by about a third since the beginning of the year. This move reflects Sea's confidence in retaining merchants despite competition from TikTok, Temu, and Lazada. Shopee's commission now exceeds its rivals', with fees in Thailand rising to 13% in July. While this strategy is risky, Sea believes it can become a crucial partner to merchants due to its broad user base and established delivery services. Investors will be watching to see if Shopee's fee increases can maintain its market dominance and contribute to its profitability. [Extracted from the article]

Sea Ltd.'s e-commerce platform, Shopee, has increased the commissions it charges merchants in several Southeast Asian markets by about a third since the beginning of the year. This move reflects Sea's confidence in retaining merchants despite competition from TikTok, Temu, and Lazada. Shopee's commission now exceeds its rivals', with fees in Thailand rising to 13% in July. While this strategy is risky, Sea believes it can become a crucial partner to merchants due to its broad user base and established delivery services. Investors will be watching to see if Shopee's fee increases can maintain its market dominance and contribute to its profitability. [Extracted from the article]

Sea Ltd.'s e-commerce platform, Shopee, has increased the commissions it charges merchants in several Southeast Asian markets by about a third since the beginning of the year. This move reflects Sea's confidence in retaining merchants despite competition from TikTok, Temu, and Lazada. Shopee's commission now exceeds its rivals', with fees in Thailand rising to 13% in July. While this strategy carries risks, Sea aims to become a crucial partner to merchants by leveraging its user base and delivery services. Investors will be watching to see if Shopee's fee increases can boost its market dominance and profitability. [Extracted from the article]

Canva Inc., a creative software developer, is acquiring image generation startup Leonardo.ai in its second acquisition this year. The deal allows Canva to integrate Leonardo.ai's video and image generation models into its own products. Canva, valued at $26 billion, is competing with Adobe Inc. and hopes that the acquisition will help attract Adobe's enterprise customers and drive revenue growth. Canva has previously acquired eight companies, including Affinity, Kaleido.ai, Pexels, and Pixabay. [Extracted from the article]

Canva Inc., a creative software developer, is acquiring image generation startup Leonardo.ai in its second acquisition this year. The deal allows Canva to integrate Leonardo.ai's video and image generation models into its own products. Canva, valued at $26 billion, is competing with Adobe Inc. and hopes that the acquisition will help attract Adobe's enterprise customers and drive revenue growth. Canva has previously acquired several other companies, including Affinity, Kaleido.ai, Pexels, and Pixabay, as it expands its suite of AI tools. [Extracted from the article]

GoTo Group, an Indonesian company that competes with Grab Holdings Ltd. in ride-hailing and food delivery, reported a narrower quarterly loss after handing its e-commerce business over to TikTok. The company's adjusted loss before interest, taxes, depreciation, and amortization for the three months through June was 48 billion rupiah ($2.9 million), compared to 885 billion rupiah a year earlier. GoTo relinquished control of its loss-making e-commerce arm to TikTok in a $1.5 billion deal, which contributed a net 157 billion rupiah in fees for the second quarter. Despite competition and consumer spending challenges, GoTo's growth is starting to rebound, and it expects to break even on an adjusted Ebitda basis for the full year. The company is also focusing on AI development and recently released its first voice assistant feature. GoTo has yet to reach profitability on a net income basis, despite cost-cutting measures and job cuts. The company is considering a merger with Grab to reduce spending and attract users. [Extracted from the article]

GXS Bank, a digital bank backed by Grab Holdings and Singapore Telecommunications, aims to become profitable by March 2027 by doubling its loan book every six months. The Singapore-based lender focuses on serving financially underserved sectors such as gig economy workers and small companies, leveraging data from transactions made through the Grab app to assess creditworthiness. GXS faces competition from traditional banks in Singapore, but it believes there is a significant market for serving underserved customers. The bank reported losses of S$152.1 million in 2023 and has set goals of S$3 billion in deposits and a S$2 billion loan book over the next three years. GXS is owned 60% by Grab and 40% by Singtel, and they have committed S$1.5 billion of capital through March 2027. Analysts suggest that GXS may need to expand beyond its established ecosystem to achieve sufficient volume and consider regional expansion for better earnings prospects. While Singapore is expected to drive revenues in the short term, Indonesia's larger population offers long-term scaling opportunities. Digital banks across Southeast Asia are striving to provide services to the unbanked or underbanked through mobile apps. [Extracted from the article]

Singapore data center company Sustainable Metal Cloud (SMC) is raising approximately $950 million in funding to capitalize on the global artificial intelligence (AI) boom. SMC, a subsidiary of Australia's Firmus Technologies, is finalizing an initial equity round of $400 million and is also in the process of raising $550 million in debt. The company offers the use of advanced Nvidia Corp. chips, which are crucial for developing and running AI applications. SMC plans to use the funds to expand its data centers beyond Singapore. The Asia-Pacific region is projected to be the fastest-growing market for data centers in the next five years. [Extracted from the article]

TikTok is planning to launch its in-app shopping platform in Spain and Ireland in October, with the aim of expanding to other parts of Europe next year. The company has recruited a team of about 40 workers in Spain and is hiring Spanish speakers for various roles. The decision to start with a smaller European debut may be an attempt to avoid further scrutiny from authorities. TikTok Shop, which combines video content with impulse-buying, is the app's fastest-growing feature and sets it apart from competitors like Instagram and YouTube. [Extracted from the article]

Grab Holdings Ltd., a ride-hailing and delivery provider, has acquired Singapore restaurant reservation app Chope in an effort to expand its services and compete with rivals in markets including Singapore, Indonesia, and Thailand. The acquisition allows Grab to offer dinner bookings and boost its margins in the Southeast Asia market. Chope's team will join Grab's offices, and the acquisition is not expected to impact Grab's positive-adjusted Ebitda. This acquisition highlights Grab's leading position in ride-hailing and food delivery in the region. [Extracted from the article]

Sea Ltd. has appointed Natalia Goh as the new leader of its Singapore digital bank, MariBank, replacing Yu Dong Zheng. Goh, who previously worked at Standard Chartered, will be tasked with navigating the increasingly competitive digital banking space in Southeast Asia. Sea's digital banking division has become a key focus for the company as its gaming arm experiences slower revenue growth. [Extracted from the article]

According to a study by the Singapore Management University and the Institute of Policy Studies, Singaporeans consider having smartphones, dining out regularly, and using air-conditioning as essential in their lives. Other important factors include digital connectivity, vacations, and staying cool. The survey also revealed that owning a home is considered a basic necessity by 96% of respondents. The study comes at a time when the new prime minister, Lawrence Wong, is facing challenges such as rising living costs and an aging population. The majority of those surveyed expected the government to provide assistance for basic necessities and healthcare, childcare, and public transport. [Extracted from the article]

ByteDance, the Chinese social media giant, is cutting approximately 450 jobs at its Indonesian e-commerce arm following its merger with local rival Tokopedia. The job cuts, which represent about 9% of the arm's employees, are part of ByteDance's efforts to reduce costs and eliminate duplicate functions. The merger between TikTok Shop and Tokopedia was a $1.5 billion deal aimed at expanding ByteDance's e-commerce ambitions in Indonesia, a highly competitive market. ByteDance has declined to comment on the job cuts. [Extracted from the article]