We have seen that there are acquisitions taking place every day around the world. Now, some of those acquisitions are big and some are small. One of the big acquisitions has just been completed where a Singapore-based company named Qoo10 has revealed something big. Qoo10 has revealed that they have acquired the Indian e-commerce platform ShopClues. Now, it is also revealed that the acquisition was an all-stock deal which means that no cash was involved. It is also known that ShopClues was looking for a buyer for a long time as the platform was really struggling to even run for a year more.
However, that is not to say that the platform was not big at one point in time. Well, ShopClues was definitely at its peak after launch in 2015 when it was even valued at $1.1 Billion after which it all started to go downhill thanks to Amazon and Flipkart dominating the e-commerce space in India since then. There was no official announcement regarding the valuation of ShopClues in this deal but ET Now reports that ShopClues might have been valued at $70-100 million by Qoo10.
Interestingly, ShopClues said that this deal is a “merger” between the two companies meaning that ShopClues might be able to keep its brand name while Qoo10 will work behind the scenes to fund the company. In an official announcement, ShopClues said that “This partnership presents new strategic opportunities for both companies, as it opens up cross-border opportunities for consumers and sellers across Asia,”
Momoe, the payments arm of ShopClues, is also reportedly acquired by Qoo10 in this deal and that is still pending so the acquisition is not complete yet. Now, the deal between Qoo10 and ShopClues is not out of the blue as Qoo10 CEO had already invested $1 Million from his personal capacity in the Indian e-commerce platform.