PETALING JAYA: Classifieds marketplace provider Carousell has signed an agreement with Norway’s Telenor Group, which will see it merging with 701Search - the owner of online marketplaces Mudah in Malaysia, Cho Tot in Vietnam, and OneKyat in Myanmar.
Following the merger, Carousell will be valued at more than US$850 million with Telenor becoming the largest minority shareholder in Carousell, owning 32% of the combined company.
In a statement today, Carousell co-founder and CEO Quek Siu Rui said the merger with 701Search would help Carousell further its mission to enable people’s e-commerce aspirations.
“Merging with 701Search will allow us to further this mission on an even greater scale and fortify our leadership in Southeast Asia as Mudah, Cho Tot and OneKyat are already leaders in their markets. I am excited to work with our new teammates to learn about the dynamics of these local markets, create win-win opportunities that are mutually beneficial for our community of users, and inspire even more people to start selling and buying,” he said.
In addition, Carousell’s chief financial officer Rakesh Malani said the transaction further cements Carousell as the leading online classifieds marketplace platform in Southeast Asia.
“This has been a significant year for Carousell, with the company achieving unprecedented results in market expansion and revenue growth.
“We are driving rapid consolidation in the region with the OLX Philippines merger earlier in the year, and 701Search today. With annualised 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,” he said.
Following the merger, 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 Malaysia, Vietnam and Myanmar respectively.
Launched in August 2012, Carousell now has a presence in eight markets across Asia.
With over 250 million listings, it is one of the world’s largest and fastest growing marketplaces in Southeast Asia, Taiwan and Hong Kong, and is backed by Telenor, Rakuten Ventures, Sequoia Capital, Naspers, 500 Startups, Golden Gate Ventures, DBS and EDBI.