Facebook can’t take Asian growth for granted

A piece I wrote ahead of Facebook’s IPO, casting a skeptical eye over assumptions that Asia would continue to be a source of major growth for the company.

Even as Facebook fever grips investors ahead of the social networking giant’s potential $100 billion-plus initial public offering, its breakneck growth in Asia may be slowing as it moves beyond desktop users to those who access the Internet largely or solely from a mobile phone.

In March, Facebook revised its own SEC filings to scale back its scope for further growth in India – its third-biggest user base and the largest population it currently has access to – China remains off-limits to Facebook. And independent data show that user numbers in Indonesia and the Philippines, its other largest Asia user bases, have actually fallen off slightly in the past three months.

“If you’ve been growing at such a huge amount it will definitely trail off,” said Ganesh Kumar Bangah, Kuala Lumpur-based CEO of online payment provider MOL Global. “You can’t expect it to keep growing.”

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