Tokopedia's fall from grace: What went wrong?

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](.  ---------------------------------------------------------------  Written by Peter Cowan  Journalist  Hello {NAME} Like many people who hail from the island of Ireland, I’m immensely enjoying the England football team’s struggles at the European Championships. It’s a biennial summer tradition to revel in for those of us subjected to UK media. England may be unbeaten at the time of writing, but the big story in the UK press seems to be that the team’s potential is being wasted. It’s a captivating narrative to be sure. Few in Indonesia are likely cheering the reality that ecommerce firm Tokopedia hasn’t reached the heights it could have, but that doesn’t make it any less of a big story. The GoTo Group (GOTO, IDX)-owned firm was the darling of Indonesia’s startup scene, raising US$1.1 billion from tech majors SoftBank (9984, TYO) and Alibaba (BABA, NYSE) in 2018. But since then, the firm has been acquired by ByteDance, a foreign company, at a much lower valuation than it once held. The ecommerce firm has also seen its monthly active user count fall from north of 100 million to 18 million, and the combined entity with TikTok Shop recently carried out sweeping layoffs, reportedly impacting 450 people. Today’s Big Story dives into just how Tokopedia ended up in a predicament few would have predicted just a few years ago. -- Peter  ---------------------------------------------------------------  THE BIG STORY [Did Tokopedia waste its potential?]( In late 2018, Tokopedia was Indonesia’s startup darling. Last December, it was bought at a fraction of its former valuation. What happened? ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ Call it a comeback?: Whisper it quietly, but could tech IPOs be making a comeback? Earlier this year we had the Reddit (RDDT, NYSE) offering, which can be [judged a success]( and it looks like more are on the cards. In Hong Kong, Chinese ride-sharing app Dida (02559, HKSE) [reportedly]( raised US$30 million in its IPO, while electric vehicle maker Hozon has also [filed]( for a listing. Japanese chipmaker Kioxia reportedly filed a [preliminary listing application]( in its home market, while South Korean gaming company Shift Up is also looking to go public in its local bourse, with a goal of raising [US$313 million](. Webtoon Entertainment, meanwhile, is another South Korean firm set to go public, but it has its sights in the US. The online comics platform is hoping to secure [US$315 million]( in its debut. 2️⃣ Shine on, Shein: Shein is another firm preparing to go public in the near future, and if its [recent financials]( are anything to go by, it could be a bumper listing. Roadget Business, the fast-fashion firm’s parent company, generated US$21.6 billion of revenue in 2022, roughly 4x of the previous year. That’s more revenue than what Sweden’s H&M Group (HM B, Nasdaq Stockholm) - a household fashion name however you slice it - recorded in the same period. Shein’s net profit also increased, hitting US$634 million, up by over 3x from 2021. Notably, the company expanded rapidly in Southeast Asia in 2022. It has reportedly filed for an IPO in London, but the timing remains uncertain. 3️⃣ AI building bridges: US tech giants Apple (AAPL, NDAQ) and Meta (META, NDAQ) have been at loggerheads in recent years over a number of issues, including privacy and app store changes. But the topic du jour may be bringing them together. The two companies have reportedly [discussed an AI partnership]( where Meta’s generative AI model would be integrated into Apple Intelligence, the recently announced system for iPhones and other Apple hardware. Apple has been in talks with several other companies about integrating their AI products on its devices, so Mark Zuckerberg shouldn’t feel too special. Still, this deal would be a bit of a surprise.  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [15]( The number of consecutive years AirAsia (5099, MYX) has been named the world’s best low-cost airline by Skytrax. To those scoffing now, I suggest you fly with Ryanair and come back to me. - [US$2 trillion]( The market value Amazon (AMZN, NDAQ) hit last week, a record for the American firm. An AI-fueled rally pushed the price past the milestone. THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. If you can’t beat them, join them: Amid the current rise of Shein and PDD Holdings’ (PDD, NDAQ) Temu in the West, a big question has been how ecommerce incumbents will take on these cut-price upstarts. It seems the answer is by following their playbook. The Financial Times has [reported]( that ecommerce giant Amazon is planning on opening a new direct-from-China discount sales channel. The new service will ship ultra-cheap goods in nine to 11 days, per a presentation seen by the newspaper. Chinese sellers taking part in the new program would send their goods to an Amazon-run warehouse in China, then the company would be responsible for delivery to its warehouses in the US. The new offering looks set to be available to consumers later this year. Amazon has a considerable war chest to throw into the effort, though Shein and Temu have the business model down to a fine art, so it’s hard to say who’ll come out on top. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](.  [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on July 24-25Â]( The Southeast Asian tech community is buzzing, and the epicenter is Kuala Lumpur. Tech in Asia Conference is bringing together 2,000 of the brightest minds from big names like Antler, Grab, Sea Money, TikTok, and many more. Don’t miss out, [secure your spot]( and join the conversation. [Tech in Asia’s Founders Meetup in Malaysia on July 25]( Founders, clear your calendar for July 25. We're bringing together Southeast Asia's most influential investors and startup leaders for an evening of game-changing conversations, exclusive connections, and actionable insights designed to help you scale your startup and dominate the region’s tech scene. [Get your tickets now]( - your future self will thank you. [KL Conference Exclusive: Networking Night on July 24]( Seize the opportunity to connect with the brightest minds and most influential players in Asia's tech ecosystem, all while enjoying panoramic city views and delicious treats. This exclusive event is only open to Tech in Asia Conference Kuala Lumpur Pro Pass holders. [Secure your spot on our guest list today!]( [KL Conference Exclusive: After Party on July 25]( After two days of high-impact learning, join us at the official closing party to unwind, socialize, and celebrate the thriving startup scene in Malaysia. There’s no better way to do so than by immersing yourself in its vibrant energy firsthand. This exclusive event is only open to Tech in Asia Conference Kuala Lumpur Pro Pass holders. [RSVP now to secure your spot!Â]( [Tech in Asia Conference Jakarta on 23-24 Oct]( Where is the next Silicon Valley? It might just be Jakarta! Indonesia's young tech talent is booming, and Tech in Asia Conference Jakarta puts you right in the center of the action. Join us at #TIAConferenceJKT to connect with 4000+ region's brightest minds, 150+ hottest startups, and hear straight from 80+ experts. Early-bird tickets are now available! [Snatch the 60% discount while it lasts!]( That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894