March 28, 2022
2 mins read

E-com portal Shopee exits India

Shopee will cease operations in India from Tuesday and aims to process all orders placed before that….reports Asian Lite News

In a dramatic move, Singapore-based Sea on Monday announced to shut operations of its e-commerce portal Shopee in India that was witnessing fresh hirings and growth amid criticism from the local industry bodies and the government banning its marquee game ‘Garena Free Fire’ along with 53 Chinese apps in the country.

Shopee will cease operations in India from Tuesday and aims to process all orders placed before that.

The company, however, said the decision to shut down e-commerce business in India has nothing to do with the government’s ban on its popular game, but owing to “global market uncertainties”.

“In view of global market uncertainties, we have decided to close our early-stage Shopee India initiative. During this period of transition, we will focus on supporting our local seller and buyer communities and our local team to make the process as smooth as possible,” a company spokesperson said.

“We will continue to focus on our efforts to deliver a positive impact to our global communities, in line with our mission to better the lives of the underserved through technology,” the spokesperson added.

The Indian government’s ban on ‘Garena Free Fire’ in February, along with 53 other Chinese apps, had sent its stocks tumbling. Sea’s stock sank by 19 per cent as it lost $16 billion in New York on February 14, the steepest decline, though analysts speculated the revenue from India could be less than 10 per cent.

In January, the Confederation of All India Traders (CAIT) had moved to the Competition Commission of India (CCI) against Shopee, claiming that the firm allegedly indulged in predatory pricing and deep discounting tactics and violated the Competition Act.

In a fresh statement, CAIT welcomed the decision of Shopee to exit from India and said that any company that violates the sovereign law of the country and breaches the data collected from India will meet the same fate.

“There are a number of other foreign-funded companies which are habitually playing with Indian laws and are involved in malpractices. Either they should mend their ways, else they must pack their bags and exit from India,” said CAIT Secretary General, Praveen Khandelwal.

The CAIT had launched a move against Shopee in September last year, and later it made extensive follow-ups with the Ministries of Finance and Commerce.

Khandelwal said SEA Holdings (the holding company of Shopee) has significant ownership, almost 25 per cent, by Chinese investment firm Tencent.

“Also, the founder of SEA, Forrest Li, is originally Chinese but became a naturalised Singaporean only a few years back. SEA uses Tencent Cloud to store data. Also, its gaming subsidiary Garena licenses most games from Tencent, leading to huge royalties, and the investment ensures that there is significant control and access to data,” Khandelwal added.

ALSO READ: Wallace against sending tanks to Ukraine

Previous Story

British Foreign Secretary due in India

Next Story

Taliban order ban on recruiting teens

Latest from Business

‘India’s Digital Hub Ascends’

The event also featured discussions on the Quad Partnership for Cable Connectivity and Resilience, reiterating commitments made during the July 1 Quad Foreign Ministers’ Meeting India’s growing role as a key digital

India’s Job Market Surges

With hiring levels on the rise, compensation is expected to increase by 12-15% in metro cities and by 18-22% in emerging cities India’s festive season this year is poised to create more

India Inc Eyes Upswing

Private equity (PE) remained comparatively stable in Q2, clocking 357 deals worth $7.4 billion — the second-highest volume since Q4 2022. However, deal values dipped on a quarter-on-quarter basis due to the

Apple Appoints Sabih Khan as New COO

Khan will take over from Jeff Williams, who is stepping down from the role this month and will retire later this year…reports Asian Lite News Apple has announced that Sabih Khan, an
Go toTop

Don't Miss

Qatar’s transport minister, Gadkari hold talks on infra development

During the meeting, agendas for sustainable infrastructure development with efficient

Foxconn buys more land in Bengaluru

The news has come as a shot in the arm