Migme bought Indonesian ecommerce startup for $710k in cash

Singapore-based social networking app Migme listed on the ASX in 2014 and has since been on a shopping spree, acquiring a range of startups in Southeast Asia.

One of those was Shopdeca, an Indonesian curated ecommerce shop that works with selected vendors and brands. It was launched in 2013 and spun out sports-focused partner site Sportdeca in 2014.

The acquisition was first announced at the end of 2015, along with the acquistion of another Indonesian startup, Hipwee. At that time, Migme CEO Steven Goh said both deals amounted to a total of AU$3 million (over US$2 million) in cash and equity.

From an update the public company sent to its investors earlier today, we now know that Shopdeca went for a “cash payment of US$710,000 and a total of 884,270 Migme shares.” Migme’s share price currently sits at AU$0.74 (US$0.56), which means the shares would be worth a total of US$495,191.

Following the acquisition Shopdeca founder Andreas Thamrin joined Migme as “global head of ecommerce,” tasked with the expansion of Migme’s ecommerce operations.

Migme is relatively new to ecommerce, it’s primarily a social networking, gaming, and digital content company. Its strategy is to append various ecommerce models through acquisitions and leverage its own strength – social – to make them grow.

Migme also acquired Singaporean auction platform Sold last year.

The company plans to extend its current commerce operations through Sold’s pay-to-bid platform, and Shopdeca’s business-to-consumer (B2C) shop. It also wants to add a C2C consumer-to-consumer (C2C) social marketplace and a business-to-consumer-to-consumer (d B2C2C ) affiliate sales program, Migme said in today’s statement.

“Social ecommerce is a key component in Migme’s business strategy for building a platform business for Southeast Asia,” the statement elaborated. “Platforms are the next generation of online business. […] Migme is building a platform business focused on social engagement and interactions that can be monetised. We are building our platform specifically for the next half of the world coming online through low-cost smartphones, primarily in Southeast Asia.”

Migme counted 32 million monthly active users in 2015, a 220 percent jump from 2014.