Sea plans to raise $500 million to play up its digital business
Category: #world  By Saipriya Iyer  Date: 2018-06-17
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Sea plans to raise $500 million to play up its digital business

Sea, an internet platform firm based in Southeast Asia, is reported to have planned a fund-raising program to raise a capital of USD 400 million. For the record, it is the first time that the Singapore-headquartered company has undertaken a fundraising activity after going public in October last year.

Tencent Holdings Limited, a Chinese Investment Holding firm, is likely to purchase notes worth nearly USD 50 million on sale, with the offering expected to be extended by USD 60 million. Last year, Sea had raised funds worth USD 1 billion through an IPO, which proved to be a milestone for Southeast Asia. Sea has stated that it will raise up to USD 500 million through its fundraising venture.

Reports specify that Sea accrued substantial proceeds through the sale of games through its Garena service, supported by Tencent. However, with the company’s revenue declining at quite some pace currently, in tandem with the reduction in new user growth, the current fund-raising program seems to be a viable option for bouncing back into business, claim experts.

The company, in its official statement, had previously announced that it expected Shopee to hit a revenue in the range of USD 8.2 billion to USD 8.7 billion in GMV during this year. The raise is estimated to be as high as 112% y-o-y as compared to the previous revenue range between USD 7.5 billion to USD 8 billion.

Authentic sources cite that Sea had earlier promoted Shopee by permitting a high burn rate in order to fund trade & customer promotion activities. The Singaporean firm only started to commercialize its service operations from last year, apparently.

Industry experts have supported the fundraising project of Sea, stating that the company is trying to rapidly expand its online business across the emerging eCommerce industry in Southeast Asia.



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Saipriya Iyer

Email: [email protected]sters.com   

Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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