TikTok Shop, the viral video platform’s online shopping arm, has become the second-largest e-commerce platform in Southeast Asia, just behind Sea Group’s Shopee, according to an annual study of the e-commerce market conducted by Singaporean consultancy firm Momentum Works released on Monday.

TikTok Shop’s gross merchandise volume (GMV) nearly quadrupled from US$4.4 billion in 2022 to $16.3 billion in 2023, making it the fastest-growing platform in the region.

By acquiring a controlling stake in Indonesian e-commerce platform Tokopedia from homegrown tech company PT GoTo Gojek Tokopedia last year, TikTok overtook Lazada, the e-commerce subsidiary of China’s Alibaba in Southeast Asia, to become the second-largest player in the region, where it held an estimated market share of 28.4 percent at the end of 2023, according to the study.

“This year, depending on the integration they have with Tokopedia, they could very much become the number one player in Indonesia,” Momentum Works CEO Jianggan Li said in a media briefing on Monday.

Read also: TikTok to lay off 450 employees in Tokopedia: Sources

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Indonesia, the first country to pilot TikTok’s e-commerce arm, boasts the world's second-largest user base after the United States.

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