Migme acquires Indonesia’s e-commerce business Shopdeca in $710k deal
Apr 12, 2016
April 12, 2016:
Singapore-headquartered and ASX-listed global digital media company migme Ltd has acquired Indonesian e-commerce business Shopdeca for a cash consideration of $710,000. The ASX-listed firm describes itself a global digital media company focused on emerging markets with services delivered through mobile apps migme and LoveByte, artist management website alivenotdead, social news site Hipwee and e-commerce services Sold and Shopdeca. The transaction involved the issue of a placement of 884,270 fully paid ordinary shares to the vendors of Shopdeca. Of these shares, 123,608 shares will be held in voluntary escrow for the period ending 1 April 2017 and 760,662 shares will be held in voluntary escrow for the period ending 1 October 2016. The Shopdeca acquisition will fuel its expansion into social e-commerce across South East Asia (SEA). Social e-commerce is a key component in migme’s business strategy for building a platform business for SEA. Migme CEO Steven Goh said, “Platforms are the next generation of online business. The fastest growing and most disruptive companies in history — Google, Amazon, Facebook, Uber, AirBnb and eBay— are platform businesses. migme is building a platform business focused on social engagement and interactions that can be monetised.”
Goh added, “We are building our platform specifically for the next half of the world coming online through low-cost smartphones, primarily in South East Asia. The Shopdeca acquisition helps us bolster the social e-commerce element of our platform.”
migme enters e-commerce, buys Sold.sg
With a rapidly growing e-commerce market in Southeast Asia estimated by a Bain & Company report to be growing rapidly in Southeast Asia, with an online retail market currently valued at $6 billion and projected to grow to $70 billion by 2020, social media has emerged as a highly influential tool. According to the report, many contemporary users deploy social media as a tool for evaluating and assessing a brand, as well as building trust and connecting with sellers. The acquisition of the Indonesian e-commerce firm will see Migme leveraging its social user community and platform partners to grow user engagement and revenues for the ecommerce business. Shopdeca founder Andreas Thamrin will be joining Migme as global head of e-commerce, leading global expansion while Migme concurrently extends its current pay-to-bid (via Sold) and B2C (business-to-consumer) (via Shopdeca) commerce operations, in order for them to add a C2C (consumer-to-consumer) social marketplace and B2C2C (business-to-consumer-to-consumer) affiliate sales program. This Shopdeca deal follows the acquisition of social news site Hipwee in January 2016, in addition to a strategic partnership formed with photo and video mobile application developer Meitu in March 2016. With the completion of a online payments partnership with Paytm , India’s largest mobile payment and ecommerce platform, processing over 10 million transactions per month with their digital wallet. migme users are now enabled on Paytm’s digital wallet, joining over 15 million active wallet users. migme users will be able to shop through ‘Pay with Paytm’ channels at more than 1,500 leading merchants and via other platforms including web, mobile, apps, SMS and IV. Payments to add money to the digital wallet are accepted via internet banking, credit/debit/cash cards and Paytm cash.