Ensogo Philippines to shut down
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Ensogo Philippines will be closed down along with the online retailers’ other sites across Southeast Asia.
Following the resignation of its co-founder Kris Marszalek, the Singapore-based tech company said it will cut its financial support to its sales and marketplace business units in Indonesia, Thailand, Hong Kong and the Philippines.
“These business units will be shut down. All staff have been informed and communications will be made to customers in the coming days,” the company said in a statement.
Australian internet entrepreneur Patrick Grove founded Ensogo, formerly iBuy. Grove also established the online businesses iProperty and iCar under Catcha Group.
Recently the company reported growth averaging more than 100 per cent in the first quarter, after the launch of a cross-border marketplace business in January. It said the number of suppliers had skyrocketed from 3141 in the fourth quarter of 2015 to 13,599 in the first quarter of 2016. The first three months saw US$8.2 million in gross merchandise value.
As of the end of March 2016, however, Ensogo reported A$22.6 million (about US$17 million) in receipts from customers, while total cash was only A$17.6 million, a 64 per cent decline from A$29 million by the end of last year. Earlier this year the company, which is headquartered in Singapore and listed in Australia, laid off employees.
Questions & Answers
Q.Which specific business units in Southeast Asia will be closed down by Ensogo?
Which specific business units in Southeast Asia will be closed down by Ensogo?
Ensogo's sales and marketplace business units in Indonesia, Thailand, Hong Kong, and the Philippines will all be shut down. These closures follow a decision to cut financial support to these operations.
Q.What is the primary reason given for Ensogo's decision to close its Southeast Asian operations?
What is the primary reason given for Ensogo's decision to close its Southeast Asian operations?
The company decided to cut financial support to its sales and marketplace business units across the region. This action followed the resignation of co-founder Kris Marszalek from the Singapore-based tech company.
Q.How did Ensogo's financial position change from the end of 2015 to March 2016?
How did Ensogo's financial position change from the end of 2015 to March 2016?
Ensogo's total cash declined by 64 per cent, falling from A$29 million at the end of last year to A$17.6 million by the end of March 2016. Receipts from customers in the first three months were A$22.6 million.
Q.Who founded Ensogo and what other businesses is he known for establishing?
Who founded Ensogo and what other businesses is he known for establishing?
Australian internet entrepreneur Patrick Grove founded Ensogo, which was formerly known as iBuy. He is also known for establishing the online businesses iProperty and iCar under the umbrella of Catcha Group.
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