Sea Limited, renowned for its e-commerce platform Shopee and gaming business Garena, is strategically developing its fintech arm, Monee, which has the potential to compete with its other ventures.

The fintech market in Southeast Asia is particularly promising, as more than 70% of adults are either underbanked or unbanked, and the rise in smartphone and internet usage is facilitating user acquisition.

Monee's growth strategy focuses on attracting users with basic mobile wallet services before upselling more lucrative offerings such as credit and insurance products.

Sea has already established digital banking operations in Indonesia, the Philippines, and Singapore, providing credit products under the SPayLater brand across these regions.

In the first quarter of 2025, Sea reported a remarkable 77% year-over-year increase in loans outstanding, reaching $5.8 billion, with over 4 million new borrowers added, resulting in more than 28 million active loan users.

During the same period, Sea's digital financial services segment generated $787 million in revenue, reflecting a 58% year-over-year growth, and achieved an adjusted EBITDA of $241 million, marking four consecutive quarters of profitability.

The integration of Monee with Shopee enhances Sea's customer acquisition capabilities, while its expanding range of financial products aims to boost user lifetime value, akin to the growth trajectory of Ant Group alongside Alibaba.

Monee has transformed from a simple digital wallet for transactions on Shopee and Garena into a comprehensive financial services ecosystem, offering mobile wallets, consumer lending, payment processing, and insurance services.

Digital lending presents a significant opportunity for Sea, as millions of consumers and small businesses in Southeast Asia remain underserved by traditional banking institutions.

Investors should view Sea Limited as a multifaceted company, with Monee positioned to become a valuable asset if it continues its successful trajectory.