This is not the first time that we hear “mergers and acquisitions” in a corporate setting. In fact, it become a popular new norms in scaling new business strategy to grow long-term and sustainable business. Such in the case of Carousell and OLX Group.
In a press statement, the Singapore-based classified marketplace Carousell announced that it has received an investment from Naspers, through its classifieds business arm, OLX Group.
The agreement leads a total deal value worth of US$56 million (almost 3-Billion peso) and gives OLX Group an approximate 10-percent stake in Carousell.
The investment from Naspers values Carousell at over US$550 million, and is a testament to Carousell’s ability to develop world class online classifieds marketplace solutions in Southeast Asia.
Currently, Carousell registers the highest engagement rate and time-spent across all online marketplace players. Moreover, Carousell’s advancement in product and innovative technology, coupled with OLX Philippines’ local experience in managing online classifieds will deliver a seamless user experience of the platform.
Quek Siu Rui, Co-founder and CEO of Carousell, said, “It’s our mission to inspire every person in the world to start selling and buying. This means creating the best selling and buying experience for our users. With the acquisition, more value will be brought to sellers and buyers together in a vibrant marketplace that creates even more possibilities for the community.”
The chief executive explained, “Naspers’ investment will enable us to accelerate the cementing of our leadership in Southeast Asia and our pace of innovation. We will continue deepening our expertise in technology and AI to bring greater value, trust and convenience to our users. We are grateful for the strong support from our new and existing investors, and their conviction in our capabilities, passion for the mission and product vision.”
Carousell will integrate OLX’s operations and subsidiaries in the Philippines, with integration work happening in stages over the course of the year.
According to Carousell, the integration is expected to be fully completed in the second half of the year. OLX Philippines General Manager Raffy Montemayor will spearhead Carousell’s operations in the market and will lead the transition of its customers to the new platform.
As the two platform combined its alliance, let’s just wait and see what happens next.