Carousell’s next potential acquisition – The Executive Brief

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Hello reader,

Slightly more than a year ago, my friend and I decided to build our own desktop computers, which would involve buying the various components separately and assembling them ourselves.

Due to the pandemic and ongoing supply chain constraints, finding graphics cards at reasonable prices became incredibly difficult. While I was lucky enough to quickly find my own card, my friend didn’t fare so well.

To help him source for his own component, I scoured every third-party marketplace I could think of, eventually finding a person on Carousell who was selling a graphics card at non-scalper prices.

In today’s story, we explore the classified platform’s talks with Singapore-based proptech firm 99 Group to expand the former’s slate of offerings. Should the deal go through, it could prove a timely boost to Carousell, which is looking at a potential public listing in the US in the near future.

Today we look at:

• What the potential acquisition of 99 Group spells for Carousell
• Revolut’s US$45 million entry into the Indian market
• Other newsy highlights such as the collaboration between YG Entertainment and Binance as well as SoftBank’s less-than-stellar Q3 results.

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Will the shoe fit?

Image credit: Timmy Loen

I used to think that Carousell was only good for selling used clothes or other smaller second-hand items. But I was pleasantly surprised to find that it had way more to offer than that. With the acquisition of a proptech platform in the cards, Carousell’s reach could grow even further. The move could become the cherry on top of the company’s expansion gambit into other markets such as automobiles and luxury goods.

• Show me the money: According to two people familiar with the matter, Carousell’s acquisition of 99 Group could take the form of a US$150 million cash-and-stock deal. Should it happen, the deal could take 99 Group’s valuation far above its current standing of US$83.6 million, according to VentureCap Insights. Carousell, on the other hand, last saw its valuation pegged at a little over US$1 billion.

• Beefing up: According to one of the sources, Carousell’s desire to strengthen its portfolio ahead of a potential US listing spurred the company to engage in talks of the acquisition, which could happen as early as this quarter. This is just the latest in Carousell’s string of expansion efforts, which includes the acquisition of several firms such as Ox Street, Caarly, OneShift, OLX Philippines, and 701Search.

• The other side of the coin: The deal could prove especially fruitful for 99 Group too. With this sale, the company would have the required backing to boost its expansion in markets such as Malaysia, Indonesia, Thailand, and Vietnam. Its sale to Carousell could also help it shore up its competitive advantages against its rival PropertyGuru, which operates in the same markets and plans to go public in June via a SPAC merger with Bridgetown 2 Holdings.

Setting foot in India