Republished from e27
With the merger, Carousell will join forces with 701Search’s marketplaces such as Mudah in Malaysia, Cho Tot in Vietnam, and OneKyat in Myanmar
Singaporean online marketplace Carousell announces that it has merged with telecommunications company Telenor Group’s 701Search, and its various marketplaces in different Southeast Asia regions, such as Mudah in Malaysia, Cho Tot in Vietnam, and OneKyat in Myanmar, effectively expanding its presence to eight markets.
Following the merger, Carousell will be valued at more than US$850 million with Telenor Group becoming the single largest minority shareholder in Carousell, owning 32 per cent of the combined company.
In addition to that, 701Search’s regional hub team that operates in Singapore will be fully integrated into Carousell, while Mudah, Cho Tot, and OneKyat will retain their individual names and platforms, continuing operations in respective countries.
The businesses will report into Carousell CEO Quek Siu Rui.
Rakesh Malani, Chief Financial Officer, Carousell, stated: “We are driving rapid consolidation in the region with the OLX Philippines merger earlier in the year, and 701Search today. This transaction further cements Carousell as the leading online classifieds marketplace platform in Southeast Asia.”
Malani also shared that currently, the company has annualised revenues of over US$ 40 million, a business of over 80 per cent gross margin, and two profitable markets.
“Our mission has remained the same since day one. We want to inspire every person in the world to start selling and buying,” shared Quek Siu Rui, Co-founder, and CEO of Carousell. “I am excited to work with our new teammates to learn about the dynamics of these local markets and create opportunities that are mutually beneficial for our community of users.”
Johan Rostoft, Head of Online Classifieds at Telenor Group, said, “This transaction presents an attractive opportunity for us to take the next step in our marketplace journey, and it also simplifies Telenor’s portfolio.”
Carousell has shared its Carousell’s Classifieds 4.0 vision of reimagining classifieds and making the selling and buying of second hand a first choice, and it has stated that the deal will propel them further into this direction.
Along with the merger news, Carousell also reportedly has reached Singapore’s unicorn status. A statement from The Business Angel Network of Southeast Asia (BANSEA) confirmed it:
“We congratulate Carousell on reaching SGD unicorn status. BANSEA’s angel investor remains invested in Carousell and its mission, which the founders believe is less than 1 per cent done.”
BANSEA’s chairman James Tan is now the first and only angel investor of this era to have a unicorn, as Tan is one of the many backers of the company.
BANSEA is the region’s angel investment network that was stablished in 2001. It claimed that it has supported thousands of entrepreneurs and companies. BANSEA members are direct investors of many of the region’s top companies.