2023東南亞數(shù)字經(jīng)濟(jì)報(bào)告-124正式版

Reachingnewheights:Navigatingthepathtopro?tablegrowth

2

ReferenceDisclaimer

e-ConomySEAisamulti-yearresearch

programmelaunchedbyGoogleandTemasekin

2016.Bain&Companyjoinedtheprogrammeas

leadresearchpartnerin2019.Theresearch

leveragesTemasekinsights,Bainanalysis,Google

Trends,primaryresearch,expertinterviews,and

industrysourcestoshedlightonthedigital

economyinSoutheastAsia(SEA).The

informationincludedinthisreportissourcedas

‘Google,Temasek,andBain,e-ConomySEA

2023’,unlessotherwisespeci?ed.

Theinformationinthisreportisprovidedonan‘a(chǎn)sis’basis.

ThisdocumentwasproducedbyGoogle,Temasek,Bain,

andotherthirdpartiesinvolvedasofthedateofwriting

andissubjecttochange.Ithasbeenpreparedsolelyfor

informationpurposesoveralimitedperiodoftimeto

provideaperspectiveonthemarket.Itisnotintendedfor

investmentpurposes.All?nancialanalysisisderivedor

estimatedbyBainanalysisusingbothnon-Google

proprietaryandpubliclyavailableinformation.Googlehas

notsuppliedanyadditionaldatafor?nancialanalysis,nor

doesGoogleendorseany?nancialanalysismadeinthe

report.Whereinformationhasbeenobtainedfrom

third-partysourcesandproprietaryresearch,thisisclearly

referencedinthefootnotes.Projectedmarketand

?nancialinformation,analyses,andconclusionscontained

inthisreportshouldnotbeconstruedasde?nitive

forecastsorguaranteesoffutureperformanceorresults.

Google,Temasek,Bain,theirrespectivea?liates,orany

otherthirdpartyinvolvedmakenorepresentationor

warranty,eitherexpressorimplied,astotheaccuracyor

completenessoftheinformationinthereportandshallnot

beliableforanylossarisingfromtheuseofthisreport.

3

8theditionofe-ConomySEAbyGoogle,Temasek,Bain:

SoutheastAsia’sdigitaleconomyresearchprogramme

20162017201820192020

Unlockingthe

$200Bopportunity

inSEA

Unprecedented

growthforSEA’s

$50Binternet

economy

SEA’sinternet

economyhitsan

in?ectionpoint

Swipeupandtothe

right:SEA’s$100B

interneteconomy

Atfullvelocity:

Resilientand

racingahead

SEA’sDigitalDecade

2021202220232030

Roaring‘20s:

TheSEA

DigitalDecade

Throughthewaves,

towardsaseaof

opportunity

Reachingnewheights:

Navigatingthepathto

pro?tablegrowth

Towardsa

sustainable

digitaleconomy

4

e-ConomySEAresearchmethodology

Temasekinsights

BainanalysisGoogleTrendsPrimaryresearch1Expertinterviews2

&industrysources

Withcontributionsfrom

Notes:AlldollaramountsareinUSD.Unlessotherwisestated,allmentionsof“SoutheastAsia”or“SEA”inthisreportrefertothesesixmarkets:Indonesia,Malaysia,

Philippines,Singapore,Thailand,andVietnam.(1)GooglecommissionedKantartorunthee-ConomySEAconsumersurvey.Theresearchwasconductedinmetro

andnon-metrocitiesacrossIndonesia,Malaysia,Philippines,Singapore,Thailand,andVietnam.Datacollectionranfrom10/08/2023to01/09/2023viaa25-minute

onlinesurvey.Thesurveywasconductedamongatotalofn=7,881respondentsaged18-64whohadmadeatransactioninatleastoneoftheverticalscovered

withinaspeci?edperiodoftime.Eachrespondentwasallocatedtoamaximumoftwoverticals,outofeightverticalscovered,basedonleast?llquota.

(2)BainandTemasekconductedinterviewsandaquantitativesurveywithSEA-focusedventurecapitalinvestorsfrom06/2023to08/2023.

605M

totalpopulation

acrossthecountries

INDONESIA

278M

SINGAPORE

6M

MALAYSIA

34M

THAILAND

72M

PHILIPPINES

117M

VIETNAM

99M

6

…and5leadingsectorsinthedigitaleconomy

E-commerceTransport&foodOnlinetravelOnlinemediaFinancialservices

Marketplaces

Direct-to-consumer

Groceries

Transport

Fooddelivery

Flights

Hotels

Vacationrentals

Advertising

Gaming

Video-on-demand

Music-on-demand

Payments

Lending

Insurance

Investments

Notes:E-commercedoesnotincludeinformalcommerceduetothelackofreliabledata.Financialservicesareexcluded

frommarketsizingestimatesduetodi?erencesinunitsofmeasurementcomparedtootherleadingsectors.

7

Content

01020304

Growingagainst

globalheadwinds

Investorsreset

expectations

Monetisation

ontherise

Financialservicesat

anin?ectionpoint

050607

EngagingBridgingthedigitalThepathforward:

tablegrowth

Executivesummary

8

01

Growingagainst

globalheadwinds

SEAhasweatheredglobalmacroeconomicheadwindswithmoreresiliencecomparedtootherregionsaroundtheworld.Gross

domesticproduct(GDP)growthremainsabove4%,whilein?ationhascomedownto3%.Consumercon?denceisstartingto

reboundinH22023a

02

Investorsreset

expectations

PrivatefundinginSEAhasdeclinedtoitslowestlevelinsixyears,whichisinlinewithglo

andissuesacrossthefundinglifecycle.ExitsremaintopofmindasSEAfundshavereturnedlesscapitaltoinvestorsthanfunds

focusedonotherregions.Toleavethefundingwinterbehind,SEAwillneedtoproveitsdigitalcompanieshaveaclearpathwayto

pro?tability,andinvestorshavedependableexitpathways.

03

Monetisation

ontherise

Digitalbusinesseshav

economyissettodeliver$100Binrevenue,growingat27%CAGRsince2021–1.7Xtherateofgrossmerchandisevalue(GMV)

growth.E-commerce,travel,transport,andmediacontributed$70Binrevenue.Remarkably,thefocusonmonetisationhasnot

comeattheexpenseofconsumerengagementandGMVgrowth.GMVisstillexpectedtogrowat11%to$218Bin2023.Travel

andtransportareontracktoexceedpre-pandemicheightsin2024,whilee-commerceisshowingresilience.

04

Financialservices

atanin?ectionpoint

Consumersareadoptingdigital?nancialservices(DFS)atarapidpace.Cashisnolongerking,asdigitalpaymentsnowmakeup

morethan50%oftheregion’stransactions.Highinterestratesaretailwindstodepositsandwealthmanagementbutpose

challengestolending.Non-performingloansremainundercontrol.Sustainablebusinessmodelsareemergingamongpure-play

?ntechs,whiletraditional?nancialcompaniesareacceleratingtheprocessofdigitalisationtoretainusers.

05

Engaging

highvalueusers

Asbusinessespursueanacceleratedpathtopro?tability,engaginghighvalueusershasbecomecriticaltoachievesustainable

uniteconomics.Thetop30%ofSEAspendersaccountformorethan70%ofdigitaleconomyspend–andtheycanbefound

everywhere.Thisisaccentuatedingaming,travel,andtransport.Inthelongerterm,companieswillneedtoembraceabroader

setofcustomerstocontinuegrowinginasustainablewayandunlocktheregion’sfullmonetisationpotential.

06

Bridgingthedigital

economicdivide

Digitalinclusionhasmadeinroadsintheregionoverthepastyears.Connectivityhasincreasedbyasmuchas3Xsince2015in

someruralareas.Yet,asplayersfocusonmonetisation,consumersoutsideofmetrocitiesarefacingawideningdigitaleconomic

divide.Ecosysteminvestmentsarerequiredtobridgethegap,whichwillinturnsupportlong-termdigitaleconomicgrowth.

07

Thepathforward:

pro?tablegrowth

Thereremainssigni?cantheadroominSEA:favourabledemographics,growingwealth,andanincreasinglyurbanisedpopulation

setthestageforfuturedigitaleconomicgrowth.Competitionisalsoexpectedtobecomemorerationalinthepursuitof

sustainedpro?tability.SEA’sdigitaleconomycanreachitsfullpotentialgivenbroadeneddigitaleconomyparticipation,the

emergenceofnascentsectors,physicalinfrastructureinvestments,andpolicyandregulationattheregionallevel.

9

Growingagainst

globalheadwinds

10

SEAhasweathered

globalmacroeconomic

headwindswithmore

resiliencecomparedto

otherregionsaround

theworld.

11

SEAhasstood?rmagainstglobalmacroeconomicheadwinds

GDPgrowthhasstayed

relativelystable

In?ationcalmsfrom

post-pandemicpeaks

Interestrateincreases

havebeenrelativelymoderate

SEAGDP(YoY%)SEAin?ation(YoY%)

Changeininterestrates1

(%points,Jan‘22-Jul‘23)

5.7%

4.7%

USfedfunds

rateincrease

4.3

4.7%

4.5%

4.0%

3.1

4.2%3.0

3.6%

3.2%

3.1%

1.82.0%

2020202120222023202420251.3

1.1.%

0.5-3.7%

202020212022202320242025

Notes:DataisasofJuly2023.(1)SORAusedasaproxyforSingaporeinterestrates.

Sources:UnitedNationsPopulationDivision;S&PGlobalMarketIntelligence;relevantcentralbanksandmonetaryauthorities;Bainanalysis

12

SEA’seconomyseesencouragingupswings,especiallyintravel

+36%+32%80%+40%

increaseinregionalincreaseinrecoveryinoutboundincreaseintravel

FDIin?ow1regionalexports1passengervolume1demand1

Notes:FDI=foreigndirectinvestment.(1)Comparedto2019.

Sources:UnitedNationsConferenceonTradeandDevelopment;Euromonitor;InternationalAirTransportAssociation;

DestinationInsightswithGoogle;Bainanalysis

13

SEA’sGDPgrowthis

forecasttokeepup

withtheworld’s

fastest-growing

economies

9.2

RealGDPgrowthrate(YoY%)

20212022202320242025

8.5

7.3

6.6

6.2

6.1

5.7

5.7

5.9

5.0

4.64.6

4.0

4.5

4.2

4.7

3.5

3.0

1.7

2.12.3

1.5

1.3

0.7

0.5

IndiaChinaSEAEUUSA

Note:DataisasofOctober2023,andincludesfull-yearestimatesfor2023andforecastsfor2024and2025.

Sources:S&PGlobalMarketIntelligence;Bainanalysis

14

In?ationremains

undercontrol

comparedtoother

regions

In?ationrate(YoY%)

202120222023

8.9

8.0

6.7

6.1

6.0

5.1

4.74.7

4.1

3.6

2.7

2.0

2.0

0.9

0.5

IndiaChinaSEAEUUSA

Note:DataisasofOctober2023,andincludesfull-yearestimatesfor2023.

Sources:S&PGlobalMarketIntelligence;Bainanalysis

15

Consumercon?denceintheeconomyhasbegun

torecoverinQ32023acrossmostoftheregion

ConsumerCon?denceBarometer

Q1'20Q3'20Q1'21Q3'21Q1'22Q3'22Q1'23Q3'23Q1'20Q3'20Q1'21Q3'21Q1'22Q3'22Q1'23Q3'23

Weusedsearchinterestdatatomeasure

consumercon?denceintheeconomy.

Factorsinclude:

Q1'20Q3'20Q1'21Q3'21Q1'22Q3'22Q1'23Q3'23Q1'20Q3'20Q1'21Q3'21Q1'22Q3'22Q1'23Q3'23

●Economicuncertaintysearches

(e.g.in?ation,recession)

●Commoditypricesearches

(e.g.gasprices)

●Jobopportunitysearches

(e.g.newjobopenings)

●Jobconcernsearches

(e.g.unemployment)

●Financeandinvestmentsearches

(e.g.investingstrategies,mutualfundreturns)

Q1'20Q3'20Q1'21Q3'21Q1'22Q3'22Q1'23Q3'23Q1'20Q3'20Q1'21Q3'21Q1'22Q3'22Q1'23Q3'23

Ahigherscoreindicatesthatconsumersaremore

con?dentandhaveamorepositiveoutlookon

theeconomy.Alowerscoreindicatesthat

consumersaremoreworriedandhaveamore

negativeoutlookontheeconomy.

Note:DataisasofAugust2023.Databasedonathree-monthrollingwindow.

Sources:TheConsumerCon?denceBarometercombinessearchinterestdatabasedonmultipleeconomicindication

searches,bothpositiveandnegative,toestimateconsumers’con?denceinacountry’seconomicoutlook

16

Investorsresetexpectations

17

PrivatefundinginSEAhas

declinedtoitslowestlevelin

sixyears,whichisinlinewith

glo

costsofcapitalandissues

acrossthefundinglifecycle.

Exitsremaintopofmindas

SEAfundshavereturned

lesscapitalthanfundsfocusedonotherregions.

18

Privatefundingrevertsto2017levels

Fundingtakesadipa

recordhighsin2021

Privatefundingvalue($B)

Average10-yearUSTreasuryRate

Thepaceoffundinginrecentyearshas

beenextraordinary:in2016,weexpected

$40B–$50Bofinvestmentsthatwould

takeGMVto$200Bin2025.By2022,the

regionhadraiseddoublethatamount–

$101B–asithitthe$200BGMVmilestone

threeyearsaheadofschedule.

Dealcount

3.6%

3.5%

3.0%

2.4%

2.3%

27

22

1.4%

14

13

12121.2%

9

8

5

4

2016

201720182019202020212022

H1’22

H2’22

H1’23

81185814271546845564

1853269720801233

Comparedtopasthighs,thepaceof

fundinghasslowedtoasix-yearlow–also

duetohighercostsofcapital.Asinvestors

recalibratetheirexpectations,digital

playersarelookingtoextendtheirrunways

byspendingmoree?ciently,infavourof

healthierlong-termgrowth.

Dealenvironmentremains

competitive

Ashigh-qualityinvestmentsarerareinthis

environment,thecompetitionfor

high-qualitydealsremainsrobust.

Note:Privatefundingvaluecoversdigitaleconomy-relatedsectors,andexcludespublic?nancingdealse.g.PIPE,IPO,ICO.

Source:Bainanalysis

19

Fundingdeclinescutacrossallstages;

late-stagedeal?owslowedthemost

Privatefundingvalue($B)

Dealcount

CAGR

Earlystage:Seed&SeriesAGrowthstage:SeriesB&CLatestage:SeriesD&E+

-68%-76%

3.63.64.34.53.2

-77%

2.1

1.7

1.21.4

1.1

0.8

0.4

H2’21H1’22H2’22H1’23H2’21H1’22H2’22H1’23H2’21H1’22H2’22H1’23

108491449535810110046511718114

Note:Privatefundingvalueexcludespublic?nancingdealse.g.PIPE,IPO,ICO,andundisclosed,growth,secondaryorprivateequitydeals.

Source:Bainanalysis

20

Declinesfrom2021–2022peakshavebeencommonacrossSEA

Privatefundingvalue($B)

CAGR

3.2

-52%-79%

-87%

9.1

1.1

1.0

0.90.9

0.8

5.1

4.40.6

0.50.5

3.30.4

0.4

0.4

0.3

1.80.20.20.2

’19’20’21’22H1’22H2’22H1’23’19’20’21’22H1’22H2’22H1’23’19’20’21’22H1’22H2’22H1’23

-66%-63%

7

5

12

12

7

53

0.2

0.50.6

1.3

0.3

1.0

0.1

0.9

0.7

2.6

0.90.7

-24%

0.2

0.6

’19’20’21’22H1’22H2’22H1’23’19’20’21’22H1’22H2’22H1’23’19’20’21’22H1’22H2’22H1’23

Source:Bainanalysis

21

Agrowingportionofdealactivityisfunneledintonascentsectors,

signallingthatinvestorsarediversifying

Privatefundingvalue($B)

27

2133%

Nascentsectors1

Travel

1212

42%

13

Digitalmedia

Food&transport

25%41%

34%

8

4

45%

E-commerce

56%

DFS

2019202020212022H12022H22022H12023

Dealcount

15461853269720801233845564

Note:(1)NascentsectorsincludecategoriesthatarestillrelativelynascentinSEAsuchasenterprise,healthtech,edtech,deeptech/AI,

Web3/crypto,property,automotive,etc.

Source:Bainanalysis

22

Investorsarefacingdi?cultiesacrossallstagesoftheinvestment

lifecycle,withexitsanddistributionsbeingtopofmind

Investorshavebeengrapplingwith

dimprospectsoverthepast12months

Investorshavebeenincreasinglyurgedto

realiseexits,deliverreturns,anddistributecapital

87%

ofinvestors?ndthatfundraising

hasbecomemorechallenging

Fundsthatstartedinthemid-2010sare

nowinthelatestagesofharvesting,

pu

64%

ofinvestorshaveseenadropin

diligenceandtop-of-funnelactivity

50%ofinvestorspartiallymetordid

notmeettheirdivestmenttargets

88%

ofinvestorsfeeltheyarefacingamore

di?cultexitenvironment

Realisingreturnsanddistributions

areakeyfundraisingchallenge

Sources:BainSEAVentureCapitalInvestorsSurvey,Q32023;Bainanalysis

23

Fundsfacechallengesinreturning

capitaltoinvestors

SEAhaslaggedotherregionsin

investorreturns

Mediandistributiontopaid-incapital(Xofpaid-incapital)1

SEA-focusedfundshaveseensigni?cantly

lowerdistributionstopaid-incapital

comparedtofundsthatarefocusedon

otherregions,suggestingdi?cultyin

realisingreturnsforinvestors.

8-10yearsFundage5-7years

DistributionslimitedbyscarceIPOs

2013-2015Fundvintage2016-2018

Distributionshavebeenconcentratedona

fewbig-namelistings,primarilyonUS

exchanges.Butthishasbeena?ectedby

interestratehikesthathavesubsequently

reducedIPOappetiteandthenumberof

listingsonregionalexchanges.

1.3X

1.0X

US

0.7X

Europe

India

0.6X

China

0.4X

SEA

0.4X0.5X

0.1X

0.2X

USEuropeIndiaChina

0.04X

SEA

Secondarieshaveseen

valuationimpact

Whilevaluationdiscountsforsecondary

saleshavewidened,thevaluationsof

qualitycompanies’secondarieshavebeen

comparativelymoreresilient.

Note:(1)IncludesVCandgrowthfundsonly.

Source:Bainanalysis

24

Drypowderisstill

ontherisedespite

investorsbecoming

increasinglycautious

amidstlimited

opportunities

Drypowderatyear-end($B)

15.7

14.1

12.4

10.2

8.5

7.1

201720182019202020212022

Notes:(1)FundsincludebothPEandVCfunds.Drypowderreferstotheamountofcapital

thathasbeencommi

Source:Preqin

25

Toexitthisfundingwinter,

digitalbusinessesinSEA

needtoprovethatquality

dealswithdependable

exitpathwaysarereadily

available

Realisticentry

valuations

Digitalcompaniesshouldprove

rationalvaluationmultiplesthat

arebuiltonbusinessandindustry

fundamentals,andthatre?ect

thecurrentmacroenvironment

Provenmonetisation

model

Realisablemonetisation

pathwaysandsustainableunit

economicshavebecomekey

requisitesforSEA’sdigital

businesses

Clearpath

topro?tability

Dependable

exitpathways

Everybusinessneedsto

layoutaclear,realisticpath

topro?tabilityandlong-term

?nancialsustainability

Assurancethatthereareclear

andfeasibleexitpathwaysfor

digitalbusinesses,whichcouldbe

intheformofamoreconducive

capitalmarketenvironmentand

supportiveregulations

Source:BainSEAVentureCapitalInvestorsSurvey,Q32023

26

Monetisationontherise

27

Digitalbusinesseshave

monetisationinabidto

achievepro?tability

targets,andarestarting

toseesuccess.

Atthesametime,GMV

continuesitsupward

trajectory.

28

Thedigitaleconomyhas?ourishedontopofwidespreadadoption;

monetisationisnowaccelerating,withvisibleprogress

SEAinternetusers(%)1SEAinternetconsumers(%)1SEAdigitaleconomyGMV($)SEAdigitaleconomyrevenue($)SEAdigitaleconomypro?t($)

7

50%–60%

218B

100B

2023202320232023

Users:

Widespreadinternet

penetrationacrossSEA

Consumers:

Highactivation,

increasingparticipation

GMV:

Resilientdespite

headwinds

Revenue:

Monetisation

continuesatfullspeed

Pro?t:

Businessesinchcloser

topro?tability

Asinternetcoverageexpanded,

thenumberofinternetusersgrew

commensurately.Engagingthese

usersandturningthemintoactive

consumersofdigitalproductsand

servicesarekeytodigitaleconomic

expansion.

ConsumersacrossSEAhavereadily

adopteddigitalproductsandservices

asinternetcoverageexpanded,but

thereisstillheadroomtogrowand

expanddepthofparticipationinthe

digitaleconomy,beyondmetrocities

andhighvalueusers.

Thepandemicspurredincredible

adoptionoverthepastfewyears,

especiallyinkeysectorslike

e-commerce.Despiteglobal

headwinds,growthremainsstrong,

thougha

monetisationandpro?tability.

Digitalbusinesseshavesuccessfully

monetisedtheSEAdigitaleconomy,

whetherthroughtheircorebusiness

modeloradjacencies.Revenue

growthshouldcontinueoutpacing

GMVgrowthasbusinessesexpand

theirtop-line.

Thefocusonpro?tabilityis

intensifyingacrossalldigitaleconomy

sectors.Businessesaretakingsteps

toimprovetheire?ciency,exploring

newproductivitydrivers(suchasAI)

toachievesustainableandpro?table

long-termgrowth.

Note:(1)Referstopercentageoftotaladultpopulation.

Sources:Google,Temasek,andBain,e-ConomySEA2016-2022;Bainanalysis

29

Asthefocu

fromgrowthatallcost

topro?tablegrowth,

newprioritiesareatplay

BusinessobjectivesCoremetrics

Sustainablebalanceofuser

acquisitionwithmonetising

interactions

RevenueandEBITDAinaddition

toacquisition-focusedmetrics

(e.g.monthlyactiveusers)

CostoptimisationCompetitivefocus

Improveduniteconomicsthrough

optimisedspending,insteadof

purerevenuegrowth

Morerationalcompetition,

insteadofa‘winusersatany

cost’mindset

Note:EBITDA=earningsbeforeinterest,taxes,depreciation,andamortisation.

30

Theregionhasreachedakeymilestone:$100Binrevenue

acrossalldigitaleconomysectors–or8Xoverthepast8years

SEAdigitaleconomytotalrevenue($B)

8X

100

81

59

Digital?nancial

services1

~1244

57

70

Coredigital

economysectors

2016202120222023

Note:(1)Includesrevenuefrompayments(averagemerchantdiscountrates),lending(grossinterestrates),insurance(annualisedpremiumequivalent,

APE,forlifeandgrosswri

Source:Bainanalysis

31

Digitalbusinessesderiverevenuethroughdirectsales,

orbyfunctioningasanintermediarypla

Twokeyrevenuemodels

inthedigitaleconomy

E-commerceTravelFood

deliveryTransportOnlinemedia

Digital

?nancial

services

Directrevenuemodel

SellerConsumer

Revenueisthepriceofthegoodsorservicessold,

ortheunderlyinginstrument

B

channels

Airline/hotels’

ownchannels

F

channels

Online/game

publishers

Insurance,etc.

Thirdpartypla

SellerPlaConsumer

Revenuetothesethirdparty(3P)intermediary

plaisaportionofthepriceofgoods

orservicessold,ortheunderlyinginstrument

E-commerce

marketplaces

OTApla

Fooddelivery

pla

Transport

pla

Media

pla

Payments,etc.

Note:OTA=onlinetravelagency.

32

SEAconsistentlydeliversonbothGMVgrowth

andrevenuegrowth–aremarkablefeat

GMV($B)Revenue($B)

Double-digitGMVand

revenuegrowth

16%

16%

295

34

CAGR

Onlinemedia

27%

BothGMVandrevenuehavegrown

atimpressivedouble-digitratesforthe

pasttwoyears,suggestingthat

monetisationandoverallmarketgrowth

arenotatodds.

20%

11%

31

218

2643

Food&transport

Travel

30%

23%

70

Revenuegrowthoutpaced

GMVgrowth

161

22

19

8

112

195

24

23

18

130

24

30

139

186

E-commerce

44

22

3

23

18

1

57

24

9

1

26

14

28

2

Asmonetisationacceleratedaroundthe

regionoverthepasttwoyears,revenue

issettogrowat1.7XtherateofGMV.

Thisfocusonmonetisationhasbeen

drivenbythepursuitof?nancial

sustainabilityandbe

acrosssectors.

2021202220232025202120222023

Notes:GMV=grossmerchandisevalue;CAGR=compoundannualgrowthrate.

Source:Bainanalysis

E-commerceTravelFooddeliveryTransportOnlinemedia

33

Thereisatrade-o?betweengrowthand

pro?tabilityasnewentrantsgainground

GMV1($B)Revenue2($B)

Monetisationhasincreased

withfurtherheadroom

RevenuehasgrownfasterthanGMVasplayers

increasetakeratesandexpandtoadjacent

revenuestreams(e.g.logistics,advertising,

etc.).Thistrendisexpectedtocontinueinto

themediumterm.

Grocery

CAGR

Despitethefocusonmonetisation,

GMVcontinuestogrow

Non-grocery

16%

186

24%

22%

GMVcontinuestogrowevenasplayersreduce

discountsandpromotionstoincreasenettake

rates.Marketleadershaveexpressed

willingnesstobeginre-investingpro?tsto

defendtheirmarketshare.Thisisexpectedto

drivehighGMVgrowthinthemediumterm.

112

15

16%

130

17

24

6%NewentrantsdrivingsomeGMVgrowth

139Newentrantshavegrownrapidly,gaining

marketshareatanincrediblerate.Theyhave

18

28

alsodrivensomeoverallmarketgrowth

throu

23

formsofe-commercetowardsorganised

e-commercepla

162

18

120

113

97

Grocerye-commercehaspotentialupside

2021202220232025202120222023

Thegrocerycategoryshowspotentialfor

growthgiventhesizableheadroomandthe

e?ortsputintoovercominglogisticaland

economicchallenges.

Notes:(1)Grossmerchandisevalue:totalvalueofphysicalgoodssoldtoconsumersthroughorganisede-commercepla

includingthevalueofgoodssoldbymerchantsfromtheirowninventories(?rst-party)orgoodssoldthroughthepla

independentsellers(third-party);(2)Revenuespans?rst-partyandthird-partysales.

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Marketplacerevenueshaveaccelerated

throughhighercommissions,adsales,

andlogisticsfees

CommissionrateshavereachedChina’s

high-watermarks

Marketleadershavespearheaded~3.0%to

~4.5%commissionhikesinrecentyears,almost

reachingChina’shighbenchmarks.Given

regionalpurchasingpower,commissionsare

unlikelytoincreasefurther.

E-commercemarketplacepla1revenuegrowthdrivers(%ofgrowth)

Adjacentrevenuestreamsserveasa

long-termgrowthengine

43%

Sellingadditionalservices(e.g.advertising,

deliveryservices,insurance,etc.)hasbecome

anincreasinglycommonwaytobumpup

revenueperorderandoverallrevenuegrowth.

Advertising,speci?callyseller-fundedin-app

adstoraisebrandawarenessanddriveorders,

hasprovensuccessfulandisexpectedtobe

coretofuturemonetisation.

28%

100%

Expandingwidthanddepthofuserbaseis

keytocontinuedgrowth

29%

GMVimpact

Commissions

impact

Adjacentrevenue

impact

2021–2023

revenuegrowth

Playersneedtolookbeyondthehighvalue

segmentandincreaseboththesizeand

purchasefrequencyoftheircustomerbaseto

drivelong-termgrowthandpro?tability.

AI-drivenrecommendationscanhelpincrease

customerbasketsize,whichcandriveimproved

uniteconomicsandeconomiesofscale.

Notes:AI=arti?cialintelligence.(1)Alsoreferredtoasthird-partypla

onlinepla

Sources:WeAreSocial;Bainanalysis

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Searchinterestsurpassespre-pandemiclevels,

pointingtocontinuedgrowthascapacityincreases

SEAtraveldemandrecovery(vs2019levels)

Outbound-AirInbound-AccommodationDomestic-Airandaccommodation

Demandisaleadingindicatorforbookings

Interestininternational

travelhasrevivedtosurpass

interestindomestictravel

overthepastyear,

suggestingthatthereis

latentdemandwaitingtobe

unlockedasinternational

?ightcapacityopensup.

2019

Jan2020

Jan2021Jan2022Jan

2023

Notes:Searchinterestisusedasaproxyfortraveldemand;SEAaverageisasimpleaverageacrossthesixmarkets.

Source:DestinationInsightswithGoogle

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Flightpassengervolumeisprogressingtowardspre-pandemiclevels

Domestic?ightshaverecoveredinsomecountriesInternational?ightshaverecoveredby~80%

DomesticRPK(indexedtoJan2020)InternationalRPK(indexedtoJan2020)

150%Vietnam100%

Thailand

100%

Philippines

50%

Malaysia

50%

Indonesia

0%Singapore0%

Jan2020Jan2021Jan2022Jan2023Jan2020Jan2021Jan2022Jan2023

Note:RPK=revenuepassengerkilometres,ameasureoftotaldistancetravelledbypassengerswhoproviderevenue.

Source:IATA

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Fulltravelrecoveryisexpectedin2024,

withfurtherheadroomforgrowth

Travelexpectedtofullyrecoverby2024

GMV1($B)Revenue2($B)

Accommodation3

CAGR

Flights4

Despitefervent‘revengetravel’and

increaseddomesticdemand,overalltravel

GMVhasyettoreturntopre-pandemic

levels.Ongoingtourismrecoveryshould

seetravelexceedpre-pandemiclevels

sometimenextyear.

In?ationacceleratesrevenuegrowth

32.1

63%

30

21%57%

43

14

241%

Flightticketpricesandroomrateshave

beenrisingpost-pandemicduetos