Unlocking the secrets of Blibli's stock ascent

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](.  ---------------------------------------------------------------  Written by Samreen Ahmad  Journalist  Hello {NAME} Profitability is elusive for startups and the situation is the same for ecommerce platforms. In my home country India, ecommerce players have seen widening losses, including Flipkart, Myntra, and even Amazon’s (AMZN, NDAQ) India unit. A rare exception is SoftBank-backed Meesho, which turned [profitable]( during the quarter ended September 2023. Like India, Indonesia has its share of large ecommerce companies in pursuit of profitability. Blibli (BELI, IDX) is one such company. It might turn profitable this year as it saw a 30% improvement in [EBITDA]( for the nine-month period ended September 2023. In this week’s Big Story, my colleague Jofie explains how Blibli is carving its own niche in the fiercely competitive ecommerce sector in Indonesia. Its relatively stable stock price since its market listing contrasts with that of Bukalapak (BUKA, IDX) and GoTo (GOTO, IDX), the other two ecommerce giants of Indonesia. Read on to know why Blibli is not your usual tech company. -- Samreen  ---------------------------------------------------------------  THE BIG STORY [Why Blibli’s shares are outperforming GoTo, Bukalapak stocks]( One advantage the company has is a reputation for stability, as most of its shares are held by conglomerate Djarum Group. ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ Better incentives in Lazada layoffs: Lazada and the Food, Drinks, and Allied Workers Union recently [announced]( an enhanced support package and a training fund for those affected by the layoffs at the ecommerce company, which is owned by Alibaba (BABA, NYSE). This was brokered by Singapore’s Ministry of Manpower. While it took Lazada over a month to come up with a revised support package, it underlines the importance of government intervention in cases of mass layoffs to support employees. It brings to the fore the appeal of Singapore’s tripartite model in which the government, companies, and employee unions come together to solve labor-related issues amicably. 2️⃣ Breaking out of non-compete claws: A Singapore judge has [dismissed]( a lawsuit that Sea Group’s (SE, NYSE) Shopee made against Lim Teck Yong, a former senior employee, who had joined rival ByteDance after quitting the former. Shopee alleged that Yong had breached a non-compete clause. However the court ruled that Shopee did not show "a serious question to be tried" on whether there was a violation of the clause. This ruling in favor of the employee would be welcome to those who are looking to switch to rival companies but are burdened by non-compete clauses in their contracts. 3️⃣ Buyback on the front: In its December 2023 quarter results, Alibaba Group announced it is expanding its share repurchase plan by [US$25 billion](. Earlier last week, Meta (META, NDAQ) also [announced]( to buy back an additional US$50 billion in shares and issue its first-ever quarterly dividend, signaling financial stability and confidence in future earnings. After posting its [first annual operating profit]( Uber, too, is reportedly mulling a share buyback. While Meta managed to cheer investors with the news, leading to a 20% rally in its shares, Alibaba [failed]( to do so. However, buybacks and even dividends are likely to become more commonplace among tech companies looking to attract investors in this era where money is no longer free.  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [77%]( The rise in funding for Singapore-based AI companies that focus on the fintech sector during the second half of 2023. Google recently said that the city-state has the potential to become a [global AI hub.]( - [US$290 million]( The amount Temasek earned by selling its entire 5.42% stake in India-based PB Fintech (POLICYBZR, NSE), the parent firm of insurance broker Policybazaar.  THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Paytm’s existential crisis: India’s central bank has spooked Paytm (PAYTM, NSE). Last week, the Reserve Bank of India [barred]( the fintech giant’s banking affiliate - Paytm Payments Bank (PPB) - from any activities. [Non-compliance]( with know-your-customer norms as well as money-laundering concerns were said to be the the reasons. Many see this as a [death sentence]( for the subsidiary. Paytm said it is starting to accelerate its collaboration with other banks so that its services are not affected. However, the company’s shares crashed over [42%]( in the India market. Paytm officials have now been holding meetings with the RBI and Finance Ministry to salvage the situation. But the banking unit [reportedly]( may not survive the blow. This could have major ramifications on Paytm, leading to an estimated revenue loss of over [20%](.  That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894