Friday, 1 November 2019

Shopclues acquired by Singapore based Qoo10

Three years after achieving unicorn status, online marketplace Shopclues that has been struggling to survive in the competitive e-commerce space in India, has merged with Singapore headquartered e-commerce platform Qoo10 Pte Ltd, in an all-stock deal.

ShopClues has received a very small cash infusion from (Singapore-based) Qoo10 Pte Ltd along with the full stock merger deal, to keep the company (ShopClues) afloat. Qoo10 has a strong presence in the Southeast Asia market, and their acquisition of ShopClues in India also in line with its proposed IPO plans, as it looks to grow its market base, as well as the seller base.
Founded in 2011, the Gurugram-headquartered ShopClues joined the billion-dollar club in January 2016, when it raised a round of funding led by sovereign wealth fund GIC Pte Ltd, along with participation from existing investors Tiger Global and Nexus Venture Partners.

In May this year, Snapdeal is believed to have carried out due diligence for a potential acquisition of ShopClues. However, the deal did not go through. Two months later, ShopClues reportedly laid off around 150-200 employees, across various departments.

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