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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. - 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. - 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] 22 22
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