The Singapore-based startup, Carousell, is now worth $ 850 million after its merger with 701Search, a subsidiary of the Norwegian telecoms company, Telenor Group, on November 21, 2019.
Presently, Telenor owns 32% shares of Carousell. In the post-merger, the newly founded company will retail Carousell’s name.
Close to Become A Unicorn
Carousell, an online e-commerce company, was founded in August 2012 by Quek Siu Rui and his friends, Marcus Tan and Lucas Ngoo. In April 2019, the company was valued to over $ 550 million after a South African e-commerce group, Naspers, invested in it.
The company expanded its presence in eight Asian countries and is close to becoming a business unicorn (a title given to companies worth over $ 1 billion).
Telenor’s 701Search deals with online marketplaces and has subsidiaries in countries including Malaysia, Vietnam, and Myanmar.
Subsidiaries such as Mudah in Malaysia, Cho Tot in Vietnam, and OneKyat in Myanmar have long-established in their presence in these markets. The merger of the two Singapore-based companies will strengthen the existing operations in their respective markets across Asia.
Expansion Plan Across Asia
Carousell’s Chief Financial Officer Rakesh Malani states, “With annualized revenues of over US$40 million, a business of over 80% gross margin and two profitable markets, we are very well positioned to advance our combined business to the next level.”
The combined employees of 701Search and Carousell will build a strong workforce for the company’s future expansion in Asia. However, Carousell’s subsidiaries will retain their respective names.
Quek Siu Rui will supervise the new company. In addition to the merger, Carousell has announced plans to expand its presence across countries, especially in Taiwan and Hong Kong.
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