Qoo10’s acquisition is finally done
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US-headquartered eBay has bought out its partners in the Japanese e-commerce business Qoo10.
According to regulatory filings seen by US media, eBay has paid US$306 million in cash for Qoo10’s Singapore-headquartered parent Giosis and relinquished its existing equity holding.
In July 2015, eBay was a partner in a founding round lead by Singapore Press Holdings, and also including Saban Capital Group, UVM 2 Venture Investments LP, Brookside Capital and Oak Investment Partners, which raised $182 million. eBay was an original founding investor.
At the time, Qoo10 operated six online e-commerce marketplaces across Asia – in Singapore, Japan, Indonesia, Malaysia, Hong Kong and China. It had 17.6 million registered users across the region and a combined turnover of more than US$408 million in 2014.
eBay’s investment this month would value Giosis at $573 million, given the cash paid combined with eBay’s shareholding of $266 million.
Earlier this year, when flagging the proposed purchase, eBay CFO Scott Schenkel projected Qoo10 would generate about $1 billion in gross merchandise volume per year, a fraction of eBay’s circa $100 billion expected this year.
Questions & Answers
Q.What was the total value of Giosis at the time of eBay's acquisition?
What was the total value of Giosis at the time of eBay's acquisition?
eBay's investment, combining the US$306 million cash paid and its existing US$266 million shareholding, valued Giosis at US$573 million. This reflects the total valuation of the parent company of Qoo10.
Q.Which other companies were involved in the initial funding round for Qoo10 in 2015?
Which other companies were involved in the initial funding round for Qoo10 in 2015?
The 2015 founding round was led by Singapore Press Holdings. Other partners included Saban Capital Group, UVM 2 Venture Investments LP, Brookside Capital, and Oak Investment Partners, alongside original investor eBay.
Q.What was the gross merchandise volume projected for Qoo10 after the acquisition?
What was the gross merchandise volume projected for Qoo10 after the acquisition?
eBay CFO Scott Schenkel projected that Qoo10 would generate approximately US$1 billion in gross merchandise volume per year. This figure is a small fraction compared to eBay's expected circa US$100 billion for the current year.
Q.How many markets did Qoo10 operate in across Asia before this acquisition?
How many markets did Qoo10 operate in across Asia before this acquisition?
Before the acquisition, Qoo10 operated six online e-commerce marketplaces across Asia. These were located in Singapore, Japan, Indonesia, Malaysia, Hong Kong, and China, serving a large base of registered users.