Singapore’s Qoo10 widens ecommerce reach with $173m Wish buy

Photo Credit: Wish

Wish, the American ecommerce platform, was once seen as an online shopping powerhouse. Its parent firm ContextLogic raised US$1.1 billion in its 2020 IPO, giving it a market value then of US$14.1 billion.

However, as competition with the likes of Temu and Shein started to heat up, ContextLogic now announced it is selling its assets and liabilities to Singapore-based ecommerce firm Qoo10 for US$173 million – marking a huge discount to its previous valuation.

Wish is a US-based online marketplace founded in 2010. While it is known for offering low prices and a wide range of products, it has faced criticism for poor product quality, lengthy shipping times, and customer service issues.

It also saw a drastic drop in monthly active users over the past few years, with numbers falling from 90 million in 2021 to 27 million in 2022.

Priced at US$6.50 per share in cash, the deal still represents a premium of around 44% compared to ContextLogic’s closing stock price on February 9, the last trading day before the sale was announced.

This transaction follows a strategic review initiated in response to pressure from Cannell Capital and other activist investors, who cited concerns including persistent losses and declining market value.

ContextLogic will retain its identity after the deal, which is expected to be completed by mid-2024. However, the sale is still pending approval from ContextLogic’s shareholders, among other usual conditions.

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