Shopclues to merge with Singapore's Qoo10
Indian e-commerce firm Shopclues has signed an all stock-deal with Singapore-based firm Qoo10 and will merge its operations with the latter.
With this merger, Qoo10 is looking to expand its presence in Asian countries. Qoo10 is an e-commerce platform in South East Asia currently operates in Singapore, Indonesia, Malaysia, China, and Hong Kong.
The merger is expected to give some relief to Shopclues and its employees. The e-tailer had recently let go of around 200 employees, as part of its downsizing activity to trim losses.
Despite the merger, Shopclues has said that there will be no organisational change and it will continue to use the same branding for future growth in the country.
Commenting on the merger, Shopclues in a statement said: “The collaboration presents new strategic opportunities for both companies as it opens up cross border opportunities for consumers and sellers across Asia. More than seven lakh small and micro-merchants from our platform will be able to access to global markets via Qoo10's presence in South East Asia".
Shopclues had posted revenue to Rs 273 crore ($38.4 million) for the financial year 2017-18 and narrowed its losses by 40 percent to Rs 208 crore.
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