Why Asia’s super-app companies are stuck in a rut

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With no end in sight to higher funding costs, a speedy recovery for these one-time darlings of tech investors is hard to foresee

Their recent performance has disappointed . Collectively, the market capitalisation of Singapore’s Sea and Grab, South Korea’s Coupang and Kakao, Japan’s Rakuten, and the parent company of India’s Paytm has declined by around 60% since the end of 2021. None of the firms is the same; they each make money from a blend of mobile gaming, social media, e-commerce, ride-sharing and financial payments.

Kakao, a South Korean firm, most closely fits the bill. Unlike most Asian would-be super-apps, it has been reliably profitable. Yet its share price has declined by 8% this year. Because the company is dominant on its home turf, it is running out of room for further domestic growth. Its ride-hailing arm has a market share in South Korea of as much as 90%, by some estimates.

 

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