Investor Presentaiton
It's Still Very Early...
Compared to its competitors' private rounds, Shopee is being valued extremely conservatively by the market. Sell-side firms are
currently valuing Garena (the gaming business) at ~$2BN. Given Sea's ~$4.3BN total market cap, this implies ~$2.3BN (0.25x
2018E GMV) for Shopee, assuming the Airpay business is worth zero.
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Comparatively, Lazada in its previous rounds were valued at ~0.7x GMV, and Tokopedia we've heard is in the process of
raising $1.5BN at 1x GMV.
However, it's still extremely early in the industry lifecycle, and valuations are almost meaningless given the ample "white-space"
for competitors to gain a toehold + the lack of monetization on a customer level.
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There are a lot of variables necessary to underwrite in the meantime (future take-rates, user order metrics, competitive
reaction, etc).
The early less mature the industry, the more access to capital / funding can be a differentiator in eventual success.
LAUNCH
$
HAYDEN CAPITAL
Shopee
GROWTH
0:0
天猫 THALLCOm
淘
amazon
SHAKE
-OUT
MATURITY
DECLINE
Life cycle
extension
Sales
Cash
Profit
Time (years)
Fred Liu, CFA | [email protected]
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