Indian E commerce firm Shopclues on Thursday said that it has signed an all stocked deal with Qoo10 to merge its operations with Singapore firm.
The collaboration presents “new strategic opportunities for both companies as it opens up cross border opportunities for consumers and sellers across Asia”, ShopClues said in a statement.
Terms of deal are not yet disclosed by company.
Qoo10 is a Southeast Asian e-commerce platform, formerly known as GMarket, headquartered in Singapore. It operates localized online marketplaces across Singapore, Indonesia, Malaysia, China, and Hong Kong, and on one international online marketplace. It optimizes its platform and services for small and medium enterprise merchants.
ShopClues posted losses of Rs. 208 Cr. for the year ended 31 March 2018. The co. has raised about $ 250 million so far has 350 employees as of now.
“The CNI which is the holding company of ShopClues, Ezonow and SmartShip brands has merged with Qoo10 in the US. So, yes all these brands are also part of this merger,” ShopClues said in an e-mailed response.
“ShopClues branding will continue to operate as is. There will be no organizational change, except that we will be better able leverage each other’s strengths. This is a strategic partnership that will help open up cross-border opportunities for both consumers and sellers of both brands and more than seven lakh small and micro-merchants from its platform will be able to access to global markets via Qoo10’s presence in South East Asia” it said in a statement.
“Similarly, Qoo10’s merchants and its cross border logistics business will get access to the large Indian market with their high quality, value-for-money products,” it added.
The merger has been approved by board of directors and major shareholders of both companies.
Shopclue is facing competition from giants like Walmart-backed Flipkart and Amazon, ShopClues has continued to struggle. ShopClues had sacked about 200 employee earlier this year after talks with larger rival Snapdeal fell through.