Welcome to the final Part of the Sea Limited Deep Dive!
In Part 1, I explored how Sea came to be and how this fast-growing technology company from Singapore makes money!
In Part 2, I looked at Sea’s competition and explored the risks the company must manage while operating a fintech and e-commerce business in Southeast Asia!
Today, I will tell you what the opportunities are, how do the finances look like, and most importantly, I will look at the valuation!
Let’s finish the Deep Dive!
1. Opportunities
2. Financial Analysis
3. Valuation
4. Conclusion
1. Opportunities
Sea has built a business model that stands to deliver strong growth in the next decade and beyond.
There are many beneficial trends behind this growth, but the key opportunities come from:
Regional Economic Development
Geographic Expansion
Financial Services
Advertising
Video Games
Regional Economic Development
According to the IMF, Southeast Asian economies are the fastest-growing in the world, expanding by 4.1% in 2024. This is a stark contrast to Europe, which essentially is not growing, whilst North American GDP expanded by 1.6% in 2024.
Over the next decade, experts predict that Southeast Asia will grow with an annual rate of 5.1%!