Emerging Markets Tech News to Know: November 2023

EMQQ Global Performance Overview 

  • The EMQQ Index jumped 10.98% in November. YTD, the index is down 5.73%.
  • The FMQQ Index improved 11.99%. Year to date, the index is up 12.87%.
  • The INQQ Index rose 7.55%. Year to date, the index is up 26.76%.

The leading positive contributors to performance for the EMQQ Index were PDD Holdings (Pinduoduo) and Mercadolibre, posting gains of 45.4% and 30.6%, respectively. Pinduoduo climbed after reporting robust results for the third quarter, which saw revenues almost double. Meanwhile, MercadoLibre benefitted from a strong showing during Brazil's Black Friday shopping season. Both are discussed in further detail below.

The two largest detractors for the month were Meituan and Alibaba, falling 17.9% and 8.9% respectively. Despite the declines, both companies reported relatively favorable results for the third quarter. Alibaba saw its earnings improve 21% year-over-year, while Meituan’s adjusted earnings per share climbed 52%. 1


Emerging Markets Tech News to Know

At a Glance:

  • China’s Pinduoduo Reports 94% Growth

  • India GDP Surges Past Expectations

  • Apple to Ramp India iPhone Production to 50 Million Units

  • Modi Urges Indians to Ditch Cash for UPI
  • MercadoLibre GMV Jumps 80% for Brazil Black Friday

China’s Pinduoduo Reports 94% Growth

Chinese e-commerce giant PDD Holdings reported a 94% surge in third-quarter revenue driven by both positive traction in its local market and the success of its cross-border shopping app Temu. PDD's net income increased by 47% to $9.6 billion in the September quarter, exceeding the average revenue estimate by approximately 25%.  Analysts expect Temu, launched in September last year, to generate more than $16 billion in revenue this year. Since its launch in the U.S., Temu is now available in 48 countries across Europe, the Middle East, Southeast Asia, and Australia.

India GDP Surges Past Expectations

India's economy exceeded analysts' predictions, growing at a rate of 7.6% in the three months to September compared to the previous year. This performance surpassed all estimates in a Bloomberg survey of economists and notably exceeded the Reserve Bank of India's projection of 6.5%. The robust expansion solidifies India's position as the world's fastest-growing major economy. The growth is attributed to increased manufacturing, rising consumption, and heightened government spending before elections. Despite challenges such as surging inflation and multiple interest rate hikes by the Reserve Bank of India, the country's economic growth remains strong.

Apple to Ramp India iPhone Production to 50 Million Units

Apple and its suppliers aim to manufacture over 50 million iPhones annually in India within the next two to three years, with plans for an additional tens of millions of units in the subsequent years. If successful, India would account for a quarter of global iPhone production, gradually increasing its share by the end of the decade, while China will remain the largest iPhone producer. Despite challenges such as infrastructure issues and restrictive labor rules, Apple has recently increased its reliance on India.

Modi Urges Indians to Ditch Cash for UPI

Prime Minister Narendra Modi urged Indian citizens to shift away from cash transactions and embrace digital payments as part of the government's efforts to promote a digital economy. In the 107th edition of his public outreach program 'Mann ki Baat,' Modi encouraged people to exclusively use digital modes, particularly the Unified Payments Interface (UPI), for at least a month. The success of the digital revolution in India has made this transition feasible, according to the Prime Minister. UPI transactions are gaining popularity, leading to a decline in cash circulation, which offers various benefits such as reduced deposit leakage, positive effects on monetary transmission, and higher savings in seigniorage costs. During the festive season in October, India recorded over 11 billion UPI transactions.


Source: National Payments Corporation of India (NPCI), EMQQ Global Analysis

MercadoLibre GMV Jumps 80% for Brazil Black Friday

Mercadolibre, Latin America’s e-commerce and fintech giant, reported that its gross sales for Black Friday in Brazil surged 80% year over year in November. The impressive growth indicates the company’s continued ability to take market share from smaller regional rivals. According to Fernando Yunes, Senior Vice President and head of MercadoLibre in Brazil, the company continues its “objective of sustaining growth records without sacrificing the company's margins.”





1 Company financials & Bloomberg