How Carousell Bagged Funding From Naspers' OLX
Entrepreneur's New Year’s Guide
Huge opportunities exist in Singapore across sectors, including e-commerce and online retail. As a result, the last few years have witnessed a steep increase in investments in these two sectors. The online classified marketplace Carousell is the latest entrant to hop on to the bandwagon. The company has received an investment from Naspers through its classifieds business arm, the OLX Group.
The deal will also see Carousell acquire OLX Philippines with the mutual goal of serving the Filipino community to buy and sell online with greater ease and flexibility. The total deal value is worth US $56 million and gives OLX Group an approximate 10 per cent stake in Carousell.
The Post-Acquisition Roadmap
The investment from Naspers, one of the largest technology investors in the world, values Carousell at over $550 million and is a testament to the company’s ability to develop world-class online classifieds’ marketplace solutions in Southeast Asia. To date, Carousell registers the highest engagement rate and time-spent across all online marketplace players. In addition, its advancement in product and innovative technology, coupled with OLX Philippines’ local experience in managing online classifieds will deliver a seamless user experience of the platform.
The marketplace has quadrupled in volume globally since its inception, featuring more than 196 million listings and 71 million items sold to date. The past year also saw Carousell expand its marketplace offerings in Singapore with high-value categories such as cars, property, jobs, services and finance.
“It’s our mission to inspire every person in the world to start selling and buying. This means creating the best selling and buying experience for our users. With the acquisition, more value will be brought to sellers and buyers together in a vibrant marketplace that creates even more possibilities for the community,” says Quek Siu Rui, co-founder and chief executive officer of Carousell.
Carousell will integrate OLX’s operations and subsidiaries in the Philippines, with integration work happening in stages over the course of the year. The integration is expected to be fully completed in the second half of 2019. RaffyMontemayor, general manager of OLX Philippines, will manage Carousell’s operations in the market and will lead the transition of its customers to the new platform.
“We are excited to increase our presence in Asia via a fast-growing company such as Carousell, which has deep knowledge across the region. We look forward to learning from them and sharing our own experience of operating in high-growth markets across five continents. Together, we believe we can offer the very best classifieds experience to the local market,” says Martin Scheepbouwer, chief executive officer, OLX Group.