Sea Ltd., the Singapore-based conglomerate renowned for its e-commerce, digital entertainment, and fintech ventures, has seen a remarkable resurgence in its fortunes this year. The company’s shares, listed on the New York Stock Exchange, have more than doubled over the past 12 months, contributing significantly to the wealth of its billionaire cofounders.
Forrest Li, the chairman and CEO of Sea, and Gang Ye, the chief operating officer, have emerged as some of the year’s biggest financial beneficiaries due to this dramatic increase in share value. Additionally, David Chen, the third cofounder and chief product officer of Sea’s online shopping platform Shopee, has rejoined the ranks of high-profile billionaires, a notable comeback after having dropped off the list last year.
The company’s impressive performance is largely attributed to its turnaround in financial health. After years of losses, Sea reported its first net profit since its initial public offering (IPO) in 2017. In 2023, Sea achieved a net profit of $163 million on a revenue of $13.1 billion. This marks a stark reversal from the previous year’s substantial net loss of $1.7 billion.
Shopee, Sea’s e-commerce arm, has been a significant driver of this success. The platform generated $7.9 billion in revenue for the year, reflecting a 27% increase compared to the previous year. Shopee’s gross merchandise value (GMV) hit $78.5 billion in 2023. Despite intense competition from regional rivals like Alibaba’s Lazada and Tokopedia, which is now part of ByteDance’s TikTok Shop, Shopee has maintained its growth trajectory.
To bolster its profitability, Shopee has reportedly increased seller fees in several major markets, a move aimed at enhancing its bottom line. However, Sea declined to provide specific details on this strategy, with a spokesperson referring inquiries to the company’s public disclosures.
Sea’s strong financial results and share performance highlight its successful navigation of a competitive e-commerce landscape in Southeast Asia. As the company continues to capitalize on its diverse business model, the significant gains by its cofounders underscore the growing value of Sea in the global market.