EMQQ Global Performance Overview
- The EMQQ Index rose 0.8% in March. YTD, it is up 10.1%.
- The FMQQ Index improved 1.0% for the month. YTD, it is up 0.2%.
- The INQQ Index rose 6.1% in March. YTD, it is down -10.2%.
The leading positive contributors to performance for the EMQQ Index in March came from India’s Reliance Industries and China’s PDD Holdings, rising 8.8% and 4.1% respectively. The former rose on news that OpenAI and Meta Platforms are each seeking a potential alliance with the company to sell or distribute its artificial intelligence solutions in India. Meanwhile, PDD rose on the back of strong quarterly results, which saw revenues increase 24%.1
The two largest detractors for the month were Brazil’s Mercadolibre and Kaspi, Kazakhstan’s leading super app. The former declined 8.1% while the latter fell 11.4%. Mercadolibre cooled off slightly after a strong start to the year. Meanwhile, Kaspi pulled back on softer-than-expected earnings, although the growth and outlook for the company remain strong. In its most recent quarter, Kaspi reported revenue growth of 42% while earnings improved 29%.
Sources: Bloomberg, Company financials
Emerging Markets Tech News to Know
At a Glance:
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Tencent Profits Surge, Expects Boost from AI
- India to Become Third-Largest Economy by 2028
- Mercadolibre Ramps Up Investments to Accelerate its Lead in Latam
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Chart of the Month
Tencent Profits Surge, Expects Boost from AI
Tencent, China’s largest internet company, reported strong fourth-quarter 2024 results, surpassing expectations on both revenue and profit. Revenue reached 172.4 billion yuan ($23.9 billion), beating estimates of 168.9 billion yuan, while profit rose 90% year-on-year to 51.3 billion yuan, well above expectations. Growth was driven by a surge in gaming and advertising revenue. Domestic gaming revenue rose 23% to 33.2 billion yuan, boosted by popular titles like Honor of Kings and Peacekeeper Elite. Tencent also significantly increased capital expenditure, more than tripling it in 2024 to support its AI initiatives. The company launched new AI models, including Hunyuan3D-2.0 and Turbo S, and highlighted AI-driven improvements across its cloud, advertising, and internal platforms. AI cloud revenue nearly doubled, and its advertising segment saw strong growth due to enhanced AI-powered ad infrastructure and increased advertiser demand. Tencent continues to position itself as a major AI player amid rising competition from Chinese tech rivals.
India to Become Third-Largest Economy by 2028
India is poised to become the world’s third-largest economy by 2028, with its GDP projected to grow from $3.5 trillion in 2023 to $5.7 trillion. According to Morgan Stanley, India will emerge as the world’s most sought-after consumer market, supported by macroeconomic stability, improved infrastructure, and effective policymaking. By 2026, the economy is expected to reach $4.7 trillion, surpassing Germany by 2028 to take the third spot behind the US and China. India’s global GDP share is projected to increase from 3.5% to 4.5% by 2029. The country has made significant progress, climbing from the 13th largest economy in 2000 to fifth in 2023. Growth is being fueled by a robust population, a functioning democracy, a rising entrepreneurial class, and improving social indicators. The report highlights broad-based consumption recovery, driven by urban demand from income tax cuts and strengthening rural consumption, with manufacturing and credit-to-GDP ratios also expected to rise.
Mercadolibre Ramps Up Investments to Accelerate its Lead in Latam
Mercadolibre, Latin America’s e-commerce and fintech giant, plans to increase investments in Brazil by 48% this year, allocating 34 billion reais ($5.8 billion) toward logistics, technology, and marketing. The company also plans to hire 14,000 more employees, bringing its Brazilian workforce to 50,000 by year-end. Brazil, which generated over half of Mercadolibre’s revenue in 2024, with 60% from e-commerce and the rest from its fintech arm, Mercado Pago. The Montevideo-based firm, operating in 18 countries, is also investing $3.4 billion in Mexico, its second-largest market. This significant investment highlights Mercadolibre’s confidence in Latin America’s market potential and underscores its broader strategy to solidify dominance in the region. By expanding operations, workforce, and infrastructure, the company is positioning itself for sustained growth and long-term regional leadership.
Chart of the Month
With over 270 million Indians shopping online in 2024, India has pipped the US to become the second-largest e-commerce market in terms of online shoppers, according to a new Bain & Company report titled “How India Shops Online 2025.” The long-term prospects remain strong. The e-retail market is expected to scale to $170–$190 billion by 2030, growing at over 18% annually. Nearly 1 in 10 retail dollars is projected to be spent on e-retail by 2030, fueled by an uptick in discretionary spending as India’s GDP per capita crosses the crucial $3,500–$4,000 threshold, a key tipping point observed in e-retail spending globally.
