Sea Ltd’s Shopee exits France months after entering Europe – report

Singapore-headquartered Sea Ltd.’s e-commerce arm Shopee is said to be pulling out of France, retreating from a major market just months after launching its maiden foray into Europe, Bloomberg reported on Tuesday.

The site will close on March 6, Shopee said in a notice on its website in the country, promising to complete all paid orders till then, according to the report.

“Following a short-term, preliminary pilot, we have decided not to continue the Shopee service in France.Other markets are unaffected. We continue to adopt an open-minded and disciplined approach to exploring new markets,” the company reportedly said in an emailed statement.

The move comes as the online retail and entertainment firm backed by China’s Tencent Holdings Ltd. faces increased regulatory scrutiny in India. Sea lost more than $16 billion of its value in its biggest daily drop after Delhi abruptly banned its most popular mobile gaming title, underscoring the geopolitical challenges it faces in expanding its offering beyond Southeast Asia, the newswire added.

France was one of the most significant new markets for Sea, which has been embarking on an aggressive international push last year to drive growth beyond Southeast Asia.

Investors are growing concerned the ban may just be the beginning of the firm’s troubles. Franklin Dynatech Fund and Blackrock Capital Appreciation Fund Inc. were among the asset managers that cut their holdings in Sea in January, according to data analyzed by Bloomberg.

In January, Tencent announced that it has entered into a transaction to divest an aggregate of 14.49 million Class A shares of Singapore-headquartered e-commerce and gaming firm Sea Ltd, reducing Tencent’s equity interest in Sea from 21.3 percent to 18.7 percent.

Sea’s Shopee launches food delivery service in Malaysia rivalling GrabFood, Foodpanda