Singapore-based online marketplace Carousell announced today that it has signed an agreement with telco firm Telenor Group to merge with 701Search.
701Search owns online marketplaces Mudah in Malaysia, Cho Tot in Vietnam, and OneKyat in Myanmar.
With this merger, the two firms can further Carousell’s Classifieds 4.0 vision of reimagining classifieds and making second-hand selling and buying a first choice.
Carousell CEO Quek Siu Rui also said that this merger helps to “fortify (their) leadership in Southeast Asia as Mudah, Cho Tot and One Kyat are already leaders in their own markets.”
Following this merger, Carousell will be valued at more than US$850 million.
Telenor Group will also become the single largest minority shareholder in Carousell, owning 32% of the combined company.
On the business front, 701Search’s regional hub team that operates in Singapore will be fully integrated into Carousell.
Meanwhile. Mudah, Cho Tot and OneKyat will retain their individual names and platforms, continuing operations in their respective countries.
All businesses will report to Quek.
“We are driving rapid consolidation in the region with the OLX Philippines merger earlier in the year, and 701Search today. This transaction further cements Carousell as the leading online classifieds marketplace platform in Southeast Asia,” said Rakesh Malani, Chief Financial Officer of Carousell.
“With annualised revenues of over US$40 million, a business of over 80% gross margin and two profitable markets, we are very well-positioned to advance our combined business to the next level.”
Featured Image Credit: Carousell