The announcement follows India's decision to ban Sea's title ‘Free Fire’ in the country in March 2022, a move that contributed to a loss of over USD 15 billion in Shopee's market cap.
Company officials stated that in view of global market uncertainties, they have decided to close their early-stage Shopee India initiative. During this period of transition, they will focus on supporting the local seller and buyer communities and the local team to make the process as smooth as possible.
In September 2021, TechCrunch reported that Shopee had launched a website for sellers in India. The ecommerce service, which was seen as a late entrant in Southeast Asia, was also onboarding sellers and offering them lucrative perks such as free shipping and zero commission. A month later, the company officially launched in the country.
The launch of Shopee in India in 2021 had prompted criticism from local retailers in the country. The Confederation of All India Traders (CAIT), an influential lobby group for scores of offline retailers in India, had reached out to government officials, cautioning them that the arrival of yet another foreign player engaging in what it alleged were ‘unfair trade practices’ will hurt the local ecosystem.
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