EMQQ Global Performance Overview
- The EMQQ Index declined -2.27% in November. YTD, it is up 20.85%.
- The FMQQ Index rose 1.65% for the month. YTD, it is up 20.55%.
- The INQQ Index improved 4.66%. YTD, it is up 20.32%.
The leading positive contributors to performance for the EMQQ Index in November were Sea Limited, the leading e-commerce and fintech company in Southeast Asia, and Zomato, the dominant food-delivery and quick commerce operator in India. Both rose 21.0% and 15.1%, respectively. Sea Limited jumped after reporting a strong financial set of results, which included its e-commerce unit turning profitable for the first time. Zomato was driven by the same factors as the company reported 69% revenue growth, driven by its quick commerce unit.
The two largest detractors for the month both hailed from Brazil. Inter & Co and XP Inc declined 29.6% and 22.4%, respectively, after a slew of new budget measures by the Brazilian government failed to impress investors. Despite macro volatility, both companies continue to exhibit consistently strong growth in the Brazilian fintech sector.
Sources: Bloomberg, Company financials
Emerging Markets Tech News to Know
At a Glance:
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India on Pace to Overtake Japan’s Economy
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Zomato Replaces JSW in Flagship Index
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Mercadolibre Delivers Another Strong Quarter
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Meituan Profits Triple
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Chart of the Month
India on Pace to Overtake Japan’s Economy
India’s GDP is on track to surpass Japan's in the next few years, driven by strong economic growth and demographic trends. Economists, including those from the IMF and S&P Global Ratings, predict the transition could happen as early as 2025. In 2023, India’s GDP was $3.55 trillion compared to Japan’s $4.22 trillion, with India expected to grow 6-7% annually, while Japan lags with near-zero growth. A weak yen has further impacted Japan's global rankings. India’s rise follows decades of steady growth, contrasting with Japan's economic stagnation, and could soon position India as the third-largest global economy.
Zomato Replaces JSW in Flagship Index
Zomato will join India’s flagship BSE Sensex on December 23, becoming the first new-age tech company to be included in the country’s benchmark stock index, replacing JSW Steel. This inclusion reflects Zomato’s growing stature and aligns it with prestigious companies like Reliance Industries, Infosys, and HDFC Bank. Sensex, India’s oldest and most significant index, represents 30 financially sound and established companies across key sectors. Zomato’s strong financial performance bolsters its inclusion, with a second quarter net profit of ₹176 crore, over 4X the previous year, and a 68.5% revenue surge to ₹4,799 crore. The move reflects a seminal moment in India’s capital markets as its local tech companies begin their multi-decade growth story.
Mercadolibre Delivers Another Strong Quarter
Mercadolibre, Latam’s tech giant, delivered a strong performance in its latest earnings report, showcasing robust growth in e-commerce and fintech operations. Net revenues jumped to $5.3 billion, representing an impressive 35% year-over-year increase with Brazil and Mexico driving significant gains. Mercado Pago, its fintech division, continued its rapid expansion, with its credit portfolio surging 77% year-over-year to $6 billion, marking the fastest growth since early 2022. The platform attracted nearly 61 million unique buyers, a 21% increase, reflecting heightened consumer engagement across Latin America. Strategic investments in logistics, including faster delivery options, further enhanced user growth. The continued rise in cross-border trade and digital wallet adoption has solidified Mercadolibre’s position as the region’s market leader.
Meituan Profits Triple
Meituan, China’s leading food-delivery platform, reported a threefold increase in Q3 net profit to 12.86 billion yuan ($1.78 billion), surpassing analysts' expectations of 10.20 billion yuan. Revenue climbed 22%, driven by steady growth in its core local commerce segment, which increased 20%, and a 29% rise in its new initiatives segment. The company has also been supplementing its growth by exploring international markets across Asia, like Hong Kong, for growth. Meanwhile, shifts in China's catering industry are creating strong new opportunities for the company’s on-demand delivery business.
Chart of the Month
Quick commerce is revolutionizing the retail and e-commerce landscape in India. Quick commerce is the ultra-fast delivery of groceries and essentials within 20 minutes, driven by urban demand for convenience, strategic dark stores, and innovative solutions from companies like Zomato (INQQ Index constituent), Zepto, and Swiggy. The industry has grown 60 times from a small base since 2020 and is forecast to grow at a 46% CAGR over the next several years.
Source: EMQQ Global estimates