Emerging Markets Tech News to Know: May 2025

EMQQ Global Performance Overview 

• The EMQQ Index rose 2.7% in May. YTD, it is up 13.6%. 
• The FMQQ Index improved 3.4% for the month. YTD, it is up 12.2%.  
• The INQQ Index rose 4.0% in May. YTD, it is down -0.8%.

The leading positive contributors to performance for the EMQQ Index in May came from Sea Limited, the e-commerce and fintech giant in Southeast Asia, and Coupang, the largest e-commerce company in South Korea. Both rose on strong quarterly results, covered below. The two largest detractors for the month both hailed from China: PDD Holdings and Alibaba. The former declined 8.6% while the latter fell 4.1%.  

Sources: Bloomberg, Company financials 

Emerging Markets Tech News to Know

At a Glance:

• Tencent Posts Solid Q1 Results

• Mercadolibre’s Growth Jumps
• India’s GDP Surprises to The Upside
• Sea Limited Results Impress
• Nubank’s Strong Growth Continues

• Chart of the Month  

Tencent Posts Solid Q1 Results

Tencent, China’s largest internet company, delivered a strong Q1 2025 performance, with revenue rising 13% YoY to $24.98 billion, surpassing expectations and marking a return to double-digit growth. The company’s gaming segment led the charge, with domestic game revenue up 24% and international revenue up 23%. AI investments are beginning to show results, enhancing both ad targeting and game development. Advertising revenue jumped 20%, powered by AI tools and Tencent’s deep user data from Weixin and its mini-programs. Capital spending nearly doubled to support AI expansion, and Tencent plans further increases. Net income rose 14% to 47.82 billion yuan.

Mercadolibre’s Growth Jumps

MercadoLibre achieved a strong first quarter, with revenue rising 37% year-over-year to $5.9 billion, surpassing analyst expectations. Net income reached $494 million, and operating income also came in above forecasts. Argentina was a major highlight, with revenue soaring 125% to $1.38 billion, driven by improving macroeconomic conditions under President Javier Milei. The government’s reforms—cutting subsidies, easing capital controls, and boosting currency flows—have supported renewed commercial momentum.

The company’s Argentina credit book quadrupled, and the number of items sold jumped 52% year-over-year. MercadoLibre also processed $58.3 billion in payments through its fintech arm and reached nearly 67 million unique buyers across its platform. CFO Martin de los Santos highlighted optimism around Argentina’s outlook and announced plans to launch credit cards there in the second half of the year, following Brazil and Mexico. These results underscore MercadoLibre’s growing regional leadership and strong execution amid improving market conditions.

India’s GDP Surprises to The Upside

India’s economy grew a solid 7.4% in the March quarter, beating expectations and marking the fastest growth of the fiscal year. For the full year, GDP rose 6.5%, matching earlier government estimates. Even with global uncertainty, India’s growth stayed strong thanks to steady consumer spending and less reliance on exports. The latest numbers indicate that the economy is holding up and remains on track. With solid momentum in areas like services and investment, India continues to stand out as one of the world’s fastest-growing major economies.

Sea Limited Results Impress

Sea Ltd. delivered a strong first-quarter performance, reporting net income of $410.8 million, beating analyst expectations of $353.4 million. Revenue climbed 30% to $4.84 billion, led by the continued strength of its e-commerce platform Shopee, which grew 28% to $3.5 billion. Shopee is effectively navigating competition from TikTok, Lazada, Shein, and Temu in Southeast Asia’s dynamic online retail market. The platform’s decision to raise merchant commissions by about a third since early last year reflects its market strength, underpinned by a loyal user base and efficient logistics network.

Sea’s cost-cutting measures, including reduced marketing spend relative to gross merchandise volume, have supported profitability. Meanwhile, its digital finance arm, Monee, has emerged as a key growth driver, now generating more revenue than its gaming division. The results affirm Sea’s ability to execute well across multiple verticals while reinforcing its leadership in one of the world’s fastest-growing digital economies.

Nubank’s Strong Growth Continues

Nubank delivered a robust Q1 2025, showcasing its continued momentum across Latin America. Net income surged 74% year-over-year to $557.2 million, while revenue climbed 40% FX-neutral to a record $3.2 billion. The company added 4.3 million customers, reaching 118.6 million users. In Brazil, Nubank now serves nearly 59% of the adult population, with 85% actively using the platform. Mexico and Colombia also demonstrated strong growth, with customer bases expanding to 11 million and nearly 3 million, respectively. The digital bank's efficiency ratio improved to 24.7%, reinforcing its position as one of the most efficient financial institutions globally. Additionally, Nubank's deposits increased 48% year-over-year to $31.6 billion, and its credit portfolio grew 23% to $24.1 billion. These results underscore Nubank's strategic execution and its commitment to financial inclusion in the region.

Chart of the Month

India is on track to surpass Japan as the 4th largest economy this year, according to recent IMF estimates.