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Sea to Shut Shopee India Unit After Political Headwinds

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(Bloomberg) -- Sea Ltd. is shutting its main e-commerce operation in India just months after its October launch, blaming market uncertainty for scuppering one of its more promising overseas endeavors.

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Sea, part-owned by Tencent Holdings Ltd., will be shuttering Shopee India from March 29, though it will continue to handle orders placed before then and support local merchants during the transition. Its other global operations are unaffected, Shopee said in a statement. Sea was down about 4% in thin pre-market trading in New York.

The closure of the Indian business comes weeks after India banned “Free Fire,” Sea’s most popular mobile gaming title, citing security concerns. Sea, which counts Chinese social media giant Tencent as its biggest shareholder, has said the Delhi government’s actions introduced a new layer of uncertainty to its business.

Read more: Sea’s Billionaire CEO Opens Up After 75% Stock Crash

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