Daraz and Kaymu Announce Merger in Asia
The companies join forces to become the No. 1 online shopping destination in Asian pioneer markets
24 JUNE 2016, SINGAPORE
SummaryDaraz and Kaymu, two of the leading e-Commerce players in Asian pioneer markets, have agreed to join forces in order to enhance the value proposition to customers and sellers. The new entity Daraz Group will unite the two companies under one roof and manage their operations across all existing markets with headquarter in Karachi.
As part of the merger, there will also be certain changes to operations and organization that will allow Daraz Group to leverage synergies on the growth and cost side. Both brands, Daraz and Kaymu, will remain active with separate websites in Pakistan and Bangladesh, and in all other markets the group will operate under a single brand name.
Daraz will continue to operate as a B2C (Business-to-Consumer) marketplace for branded, original products, with premium fulfillment and value-added-services to help professional sellers scale their business. Daraz will continue to provide its customers with 7 day return policy for its wide range of original, quality products from local and international brands.
Kaymu will continue to operate as an open marketplace for smaller businesses and individuals to interact directly with customers through a community based trading platform. In markets with only one brand, the group will operate as a hybrid between the two models.
The decision to operate the two entities together will give the group a 360 degree ownership of e-Commerce in pioneer markets where both Daraz and Kaymu have built unique capabilities.
Bjarke Mikkelsen, co-CEO Daraz Group, states: “Daraz and Kaymu have both built successful operations in their respective markets. The merger is now the next step to offer our sellers the best possible solutions to grow their online business, and to start capitalizing on the synergies between the platforms. In addition to the local benefits of a more integrated strategy, we are excited to build a best-in-class team in Karachi for our central functions like IT, marketing and Business Intelligence in order to unite the best practices from the B2C and the C2C world.”
Dr. Jonathan Doerr, co-CEO Daraz Group, adds: “We now need to closely analyze the local presence in each respective market and based on the operations and market structure, design the optimal individual strategies. Several cross-country task forces have already started their work to develop the most efficient plans for Daraz Group.”
Niroshan Balasubramaniam, CEO of Kaymu Asia, states: “We are very pleased to join forces with Daraz. Kaymu has set up a successful business across several markets, enabling the first generation of e-Commerce entrepreneurs to sell their products online. Together with Daraz we will further enhance our service for sellers as well as consumers.”
Hanno Stegmann, CEO of the Asia Pacific Internet Group, parent company of Daraz and Kaymu, states: “We are very much looking forward to see how Daraz and Kaymu can make the most out of their synergies. Pioneer markets in Asia have a huge potential and are experiencing the fastest rise of e-Commerce and mobile disruption ever measured. With a fast growing population and the tremendous growth rates of mobile and internet penetration it is only a matter of time until these markets will succeed.”
Daraz is one of Asia’s leading online shops for shoes and fashion. Daraz offers a shopping experience that is unparalleled in Bangladesh, Myanmar and Pakistan, providing the most stylish, trendy and reliable shopping platform that is affordable with an unmatched level of convenience. Daraz strives to offer the most stylish, personalized and secure online shopping experience. Daraz showcases products from a wide scope of brands: from established foreign names to local retail entities. Payment is simply cash on delivery by our rider; a wider range of options are also available during checkout. Delivery is door-to-door and handled by trusted logistics partners.
Kaymu is one of the largest online shopping communities in Asia which connects and empowers buyers and sellers to take advantage of the best deals on an extensive range of products including electronics, mobile phones and fashion items. Kaymu started in 2012 in Pakistan and has since then expanded to several pioneer markets in Asia. The company was launched by Rocket Internet and is backed by the Asia Pacific Internet Group (APACIG).
The Asia Pacific Internet Group (www.apacig.com) is a joint venture of Rocket Internet and Ooredoo. The group’s network consists of 16 e-Commerce and online marketplace companies, operating across 15 countries. Since it was founded in 2014, APACIG has become the leading online platform in Asia, building top internet companies in the region.
The transaction is subject to due diligence and customary regulatory approvals.
This document contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Daraz and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations and competition from other companies, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, and other factors. Daraz does not assume any obligations to update any forward-looking statements.