SINGAPORE: Carousell, a Singapore-based online marketplace that lets people buy and sell second-hand goods, has agreed to combine with Telenor ASA’s 701Search in a deal that values the merged company at more than US$850mil.
Carousell will absorb 701Search, which owns online marketplaces in Malaysia, Vietnam and Myanmar, as part of the equity and cash deal, according to a statement Thursday. Telenor will invest US$20mil into Carousell and become the single largest minority shareholder with a 32% stake in the combined company.
The deal will bolster Carousell’s position as Southeast Asia’s biggest classifieds business. Founded in 2012 and currently valued at more than US$550mil, Carousell will have eight key markets after the completing the deal: Singapore, Malaysia, Hong Kong, Indonesia, the Philippines, Myanmar, Taiwan and Vietnam.
The merger will “fortify our leadership in Southeast Asia, ” chief executive officer Quek Siu Rui said in the statement.
The transaction comes seven months after Carousell received an investment from Naspers, through the latter’s classifieds business arm, OLX Group. That deal saw Carousell acquiring OLX Philippines and gave OLX Group about 10% in Carousell at the time.— Bloomberg
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