Qoo10 is targeting South-east Asia with this deal
Qoo10, the e-commerce company originated out of Singapore has bought Indian online shopping destination ShopClues, which is considered as an all-stock deal. ShopClues once valued at 100 million US dollars was struggling to compete with the giants such as Amazon and Flipkart. The acquisition will enable the merging of ShopClues services with Qoo10, which is backed by eBay.
ShopClues opened its business in the year 2011 was successful in creating a network of 700,000 merchants, who are working on the ground in small or micro level. Qoo10 was quite positive about the deal and elaborated on the fact that partners of ShopClues will be benefited from this deal as they can get into the international market as Qoo10 is already doing business in Southeast Asia.
It will allow Indian merchants to access the international market
The deal is a two-way gateway and it will not only help Indian merchants but will allow merchants from other parts of the world to get access to the Indian market. The exchange will be good for the consumers as they will get products that are of good quality and pay value for money. This merger got a green signal from the board of directors and major stakeholders from each company. The deal will include the subsidiaries of ShopClues as well, which include Smartship, Momoe, and Ezonow as well.
Qoo10 has spread its business in Singapore, Indonesia, Malaysia, China, and Hong Kong. It is expecting the same result from this new deal in India. ShopClues had set up its business by selling electronics, home & kitchen and trendy apparel. It mainly focused its operations on small cities and towns.
ShopClues was facing stiff competition from other e-commerce giants. This was impacting its overall business as it was unable to generate enough revenue to sustain the company in the longer run. There were several players who were interested in the e-commerce company, but in the end, it went to Qoo10.