Singapore-based Sea Limited will pull its e-commerce business out of India, six months after its launch, blaming "global market uncertainties." SE stock dropped.
Sea, which is partly owned by Tencent Holdings, is one of the largest providers of e-commerce in Southeast Asia. The e-commerce unit, called Shopee, reported sales of $1.6 billion in the fourth quarter, up 89% from the year-ago period.
SE stock added 0.7% to close at 116.98 on the stock market today. Earlier, the stock was down more than 3%. Meanwhile, Tencent climbed 3.8% to close at 47.42. Tencent owns about 19% of Sea.
The withdrawal is effective beginning March 29. In a statement, Sea said Shopee would work "to support local seller and buyer communities and our local team to make the process as smooth as possible."
E-commerce players face a strict regulatory environment in India. Sea said its other global operations remain unaffected.
SE Stock: Largest E-Commerce Platform In Southeast Asia
Sea says it has both the largest digital entertainment platform and the largest e-commerce operation in the Southeast Asia region, comprised of Indonesia, Taiwan, Vietnam, Thailand, the Philippines, Malaysia and Singapore. It also provides financial services.
Shopee's move into India began in October 2021 as part of an aggressive international push that saw it expand into Europe, too.
According to reports, Shopee also was planning to invest up to $1 billion in India.
SE stock is down more than 68% from its record high set on Oct. 19.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
