ShopClues merges with Singapore-based Qoo10 in a stock deal
Gurugram-based ecommerce platform ShopClues has announced its merger with Singapore-based Qoo10 Pte Ltd in a stock deal. Qoo10 is an ecommerce platform in Southeast Asia, which services small and medium enterprises (SMEs) via its localised online marketplaces in Singapore, Indonesia, Malaysia, China, Hong Kong etc, and plans to expand into other Asian countries.
This partnership presents new strategic opportunities for both companies, opening up cross border opportunities for consumers and sellers across Asia, the company said in a statement.
ShopClues says more than 700,000 small and micro-merchants on its platform will be able to access global markets via Qoo10. Similarly, Qoo10’s merchants and its cross border logistics business will get access to the large Indian market with their high-quality, value-for-money products.
The merger has been approved by the boards of directors and major shareholders of both companies.
Recently, ShopClues was in talks with its rival Snapdeal for a potential acquisition to survive in the hyper-competitive online shopping segment in India. However, Snapdeal decided against the acquisition as there were concerns regarding some of the findings that emerged from the due diligence conducted by advisory firm EY.
Last month, we reported that Shopclues raised a funding of Rs 7.86 crore from its parent company Clues Network Inc.
The company, which has nearly 500 employees, shared a statement with YourStory in July 2019, confirming that it had reduced its workforce by 50 percent. It said that it was focusing on profitability.
Founded in 2011, ShopClues has lately been working on narrowing its losses. The ecommerce company, which is registered as Clues Network, posted losses of Rs 208 crore for the year ended March 2018. This was Rs 347 crore during the previous financial year. It has raised about $250 million so far and focusses on Tier II and III cities.
(Edited by Saheli Sen Gupta)