Setting our eye on the next chapter!

2023-9-15

Dear Sailors,

On this day one year ago, I wrote to you asking for your support as we pivoted to achieving self-sufficiency:

“The only way for us to free ourselves from relying on external capital is to become self-sufficient, generating enough cash for all our own needs and projects. If we manage to do this, it will have huge implications for our future. We will have peace of mind, becoming less affected by the external ups and downs that are hurting us today. We will be more strong-footed, and less distracted, able to refocus on our own goals.

This is how I want Sea to emerge from this storm: in a position of certainty and independence, fully able to choose our own path… If we can make this next big adaptation, our company will enter a new bound.”

I read these words now with a feeling of gratitude and excitement. A year ago, this was a hope, but with an incredible amount of hard work, dedication, and discipline from all of you, it has come true!

We have achieved financial independence, meaning that we do not need to rely on external capital to pursue growth. Between the cash reserves we have built up and our proven ability to pivot to profitability when we need to, we can now finance our ambitions on our own. This is what self-sufficiency means: financial freedom.

Now that we have accomplished this huge task, let us take our company to that new bound – the next chapter in our growth journey.

Competition is rapidly heating up, particularly in our e-commerce business. Those of you at Shopee would have seen this on the ground by now. In the past few years, we achieved market leadership in many places, and demonstrated the strength of our business model. So, it is natural that others want to challenge our market share. We must turn to face this challenge, head-on.

I look at this increasingly competitive landscape with, frankly, a sense of anticipation. Being in a hard contest is where we have always thrived best. We started out as underdogs, pushing against bigger, better-resourced, more well-established players. It has always been in our blood to dig in, commit, and fight until we prevail.

Those of you who joined us more recently may not have had the chance to experience our full fighting mode yet. I encourage the newer joiners to ask our veterans for their war stories: exciting and energizing times when teams came together and did whatever it took to meet huge, seemingly impossible challenges. Competition made us stronger: more united, more resilient, more determined.

We are now ready to take those traits to the next level, having spent a year building up both our financial reserves and – just as importantly – our internal discipline and fortitude. The past year has taught us much about frugality and efficiency. This, combined with our inborn fighting spirit and deep understanding of our markets, make us a formidable opponent for any competitor.

To this end, we are ready to begin investing again. This means that we may incur losses in some quarters. When we do, do not worry: know that this is a deliberate choice, and part of a longer strategic plan. I am confident that we will have sufficient funds, and will not need to rely on external capital.

This is what self-sufficiency means, and it has been hard-won by all of us. Thank you for achieving this springboard from which we can now leap, with confidence and energy, into a more competitive future.

It is the start of our next chapter. There are many exciting challenges to overcome and victories to fight for. I hope, like me, that you can’t wait to dive in!

Sincerely,
Forrest