Amid global market uncertainties, e-commerce firm Shopee on Monday announced shutting down of business in India within months of its entry to the country. The company, operated by Singapore based Sea Limited, had in February closed down its operations in France as well.
“In view of global market uncertainties, we have decided to close our early stage Shopee India initiative,” Shopee said in a statement. According to a source, the company will assist its 300 employees in getting jobs and will pay severance packages to the employees who fail to secure any job.
The development comes after a month of government banning 54 Chinese apps including Garena Free Fire of the Singapore-registered Sea Group. Prahar NGO alleged that the Sea Limited is controlled by Chinese internet giant Tencent.
“The decision of Tencent-controlled SEA Limited to completely exit India with the shutting down of Shopee and Garena Free Fire is a vindication of our fight against Chinese-controlled companies,” Prahar president Abhay Mishra said. Last month, the NGO wrote to IT and communications minister Ashwini Vaishnaw to shut down Battlegrounds Mobile India alleging that it is re-introduction of PUBG Mobile which was banned by the government in 2020.
Traders body CAIT had demanded to bar Shopee as Tencent holds 25 per cent stake in Sea Holdings and its investment in India is in violation to the Press Note 3 which mandates FDI from countries would be allowed only after obtaining prior approval of the government. CAIT secretary general Praveen Khandelwal said that the entry of the likes of Shopee means compromising data and security of Indian citizens, flooding of the market with Chinese goods, anti-competitive tie ups with large manufacturers with exclusive access all of which will strike at the belly of small traders who is already suffering from the impact of COVID on their businesses.
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