The Singapore giant said on Monday it was closing its e-commerce business, Shopee, in India, months after the company began hiring local customers. The announcement follows India’s decision to ban the popular Sea “Free Fire” brand in the country last month, a move given the loss of $ 15 billion in the country. Shopee’s market share.
One source familiar with what TechCrunch Shopee’s India reportedly decided not to apply to the Free Fire ban in India. The company also claimed in a statement closing the business in the South Asian market citing “uncertainty of the global market.”
“Realizing the uncertainty of the global market, we decided to close our first Shopee India operation. In this time of change, we will focus on supporting our customer. and the sales community and our local team to make the process as accessible as possible.We will continue our efforts to provide a positive impact to our global community, in line with our mission is to improve the lives of the underprivileged through technology, “a statement told TechCrunch.
In September last year, TechCrunch reported that Shopee had slowly launched a website for shoppers in India. The six-year e-commerce service, which is seen as a last resort in Southeast Asia, puts the customer on top of the customers and gives them great benefits such as free shipping and no commission. A month later the group was released from the country.
Shopee’s launch in India last year has been criticized by local retailers in the country. The Confederation of All India Traders (CAIT), a key lobbying organization for many online retailers in India, has contacted Prime Minister Narendra Modi, telling him the arrival of another other players engaging in what is considered inappropriate commercial activity. Hurt the local ecosystem.
Shopee – which has grown to nine global markets including Brazil, Poland, Mexico, Columbia and Chile in recent years, was said to end operations in India on Tuesday. He plans to process all orders placed before March 29 and be provided after sales support services.
“We’re positive about its global expansion, because we believe this level is appropriate for increasing the size of its business,” analysts at Bernstein wrote in a report last month. passed away. “This will help him in the long run because he can solve the problem, build the scale, get a consistent price point, have a customer base, and build pricing power. However, all of this comes in the form of income. “
The move is amazing to the hundreds of people that Shopee employs in India. The Indian company learned about the decision on a mobile phone earlier on Monday.
India, which blocked more than 200 programs with a Chinese link a year and a half ago amid geopolitical ties between the two countries, has banned Free Fire. months ago on a move that surprised many.
Although India has not said it is looking for developers from any other country, most of the programs it has banned come from China. Tencent China, a major investor in Shopee, is one of Free Fire’s small Chinese subsidiaries. But Tencent continues to be a contributor to some of India’s biggest startups with the social media app ShareChat.