Carousell merges with Telenor’s 701Search, valuing company at over $850m

Singapore-based online marketplace Carousell has agreed to merge with 701Search, which operates marketplaces Mudah in Malaysia, Cho Tot in Vietnam, and OneKyat in Myanmar.

Following the deal, which included an equity and cash agreement, Carousell will be valued at more than US$850 million, according to a statement. 701Search’s parent organization Telenor Communications, one of the world’s largest telecom companies, will own 32% of the combined company.

Photo credit: Carousell

“We are driving rapid consolidation in the region, with the OLX Philippines merger earlier in the year and 701Search today,” said Carousell chief financial officer Rakesh Malani. “With annualized 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.”

Following the merger, 701Search’s regional team in Singapore will be fully integrated into Carousell. Mudah, Cho Tot, and OneKyat will all retain their names and platforms and continue operations in their respective markets. The businesses are set to report to Carousell CEO Quek Siu Rui.

According to the head exec, the merger with 701Search will allow the company to fortify its leadership in the region, as Mudah, Cho Tot, and OneKyat are currently leading in Malaysia, Vietnam, and Myanmar,
respectively.

Carousell was launched in August 2012 in Singapore and has since expanded into eight markets across Asia. It claims to have over 250 million listings in marketplaces in Southeast Asia, Taiwan, and Hong Kong.

Read: Carousell expects to double revenue this year, losses in line with targets: CEO

Earlier this year, it attracted a US$56 million investment from internet giant Naspers-owned OLX Group in exchange for a 10% stake. As part of the deal, which valued Carousell at over US$550 million, Carousell acquired the Philippine operations of OLX Group, which already had 6 million monthly unique users at that time.

In addition to Naspers and Telenor, Carousell has been backed by companies such as Rakuten Ventures, Sequoia Capital, 500 Startups, Golden Gate Ventures, DBS, and EDBI.