A Singaporean company bought (unicorn) ShopClues for peanuts
ShopClues, a once-popular marketplace in India's online shopping space, has been acquired by Singapore-based e-commerce platform Qoo10 in an all-stock deal. The Gurugram-based company, which has over 500 employees, has confirmed the development, noting that this 'merger' will open up cross-border opportunities for merchants operating on both company's platforms. Here's all about the Qoo10 and its deal with ShopClues.
According to the people familiar with the matter, Qoo10's acquisition of ShopClues is estimated to be valued around $70-100 million. The company hasn't confirmed the figure, but if that's true, this would be a major decline from its peak valuation of $1.1 billion in late 2015 and one of the worst valuation meltdowns for an Indian start-up.
In addition to the ShopClues's marketplace, which is owned and managed by the parent company Clues Network, the Qoo10 deal also includes Momoe - the payment arm of the network. According to sources, the Singaporean company will acquire the payment service to fully complete the buyout. Plus, there's also a good chance that it may change the name of the brand in the future.
"This partnership presents new strategic opportunities for both companies, opening up cross border opportunities for consumers and sellers across Asia," ShopClues said in a statement confirming the deal. The company added Qoo10's platform will help its 700,000 small and micro merchants reach global markets while Qoo10's sellers would be able to access the Indian market with their high-quality, value-for-money products.
Formerly known as Gmarket, Qoo10 operates localized online stores in Singapore, Indonesia, Malaysia, China, and Hong Kong to serve small and medium enterprises (SMEs). The company had last raised $82.1 million in funding from Singapore Press Holdings, e-commerce giant eBay, Saban Capital Group, UVM 2 Venture Investments, Brookside Capital and Oak Investment Partners. Now, with the ShopClues deal, it will enter India.
