THREE of the most-hyped South-east Asian tech listings over the past year-and-a-half have lost a combined market value of US$51 billion since their debuts, amid a slump in technology stocks globally and growing doubts on their path to profitability.  

Indonesia’s GoTo Gojek Tokopedia, the country’s largest initial public offering this year, along with Bukalapak.com and Singapore-based Grab Holdings, have all plunged more than 65 per cent since their debuts. The companies underperformed local benchmarks and have taken about a 30 per cent drop in the Nasdaq 100 since the start of the year. 

These companies are unicorns, defined as privately held startup businesses with a value of over US$1 billion. 

The region’s tech stocks join the slump engulfing recently-listed Indian startups as investors question their high valuations and ability to become profitable. The three firms offered investors an exposure to South-east Asia’s booming e-commerce sector at a time when traders were still eager to snap up growth stocks. But rising interest rates globally and risks of recession are taking a toll on technology shares. 

There are also concerns that early investors will be paring their stakes after initial lock-up periods end. GoTo lost nearly 60 per cent in market value over the past month amid the expiry of a lock-up on its major shareholders’ stakes and as investors fret about the unprofitable Indonesian Internet company’s prospects.

GoTo on Thursday said it has enough funds to last the company until it reaches profitability. 

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New York-listed Grab, South-east Asia’s biggest ride-hailing and delivery company, narrowed its losses in the third quarter as revenue beat expectations. 

Sea Ltd, another Singaporean online marketplace unicorn that listed in the US back in 2017, also lost about US$169 billion in market value since a peak in October 2021.  BLOOMBERG