Telenor Group merges online classifieds assets with Carousell
Nov 21, 2019
Singapore, 21 November 2019: Telenor Group today announced a merger between its online classifieds business, 701Search, and Carousell, one of Asia’s largest and fastest-growing classifieds marketplaces, in an equity and cash agreement.
The merger creates a regional leader in online classifieds. Telenor Group receives a 32 percent stake in the company, making it the largest minority shareholder. 701Search will cease to be a subsidiary company of Telenor Group and will merge its operations with Carousell with immediate effect.
701Search owns leading general classifieds sites Mudah in Malaysia, Chotot in Vietnam and OneKyat in Myanmar. Johan Rostoft, Head of Online Classifieds at Telenor Group, said “We have built a profitable and high-growth marketplace business serving millions of users every single day. This transaction presents an attractive opportunity for us to take the next step in our marketplace journey, and it also simplifies Telenor’s portfolio. We believe that Carousell is the best partner for our online classifieds business in Southeast Asia.”
“We are thrilled to partner with Telenor Group to cement our classifieds leadership across eight markets in Southeast Asia, Hong Kong and Taiwan,” shared Quek Siu Rui, Co-founder and CEO of Carousell, and continued, “With Telenor Group’s extensive experience in each local market, coupled with Carousell’s relentless focus to use technology to make selling and buying easy and frictionless, we are confident that together we will create an even more vibrant marketplace for the community across Malaysia, Myanmar and Vietnam. In the next few months, we look forward to working with our new teammates to learn about the dynamics of these local markets, create opportunities that are mutually beneficial for our community of users, and inspire even more people to start selling and buying.”
Carousell is one of the most prominent start-ups in Southeast Asia, with dominant positions in Singapore and Hong Kong. The majority of its employees are based in Singapore. Following the merger, 701Search’s Singapore-based regional team will be fully integrated into Carousell. Mudah, Chotot and OneKyat will retain their individual brands and platforms, continuing operations in Malaysia, Vietnam and Myanmar respectively. The businesses will report into Carousell’s Group CEO Quek Siu Rui.
The deal does not require regulatory approval and is closed immediately.
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