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(File pix) Carousell will merge with 701Search, which owns online marketplaces Mudah in Malaysia, Cho Tot in Vietnam and OneKyat in Myanmar. Pic from Carousell website

KUALA LUMPUR: Carousell, one of the world’s fastest growing classifieds, has signed an agreement with Telenor Group, one of the world’s largest telecommunications companies.

As part of this equity and cash agreement, Carousell will merge with 701Search, which owns online marketplaces Mudah in Malaysia, Cho Tot in Vietnam and OneKyat in Myanmar.

Following the merger, Carousell will be valued at more than US$850 million with Telenor becoming the largest minority shareholder in Carousell, owning 32 per cent of the combined company.

“This has been a significant year for Carousell, with the company achieving unprecedented results in market expansion and revenue growth,” said Carousell chief financial officer Rakesh Malani said in a statement today.

“We are driving rapid consolidation in the region with the OLX Philippines merger earlier in the year, and 701Search today. This transaction further cements Carousell as the leading online classifieds marketplace platform in Southeast Asia,” he added.

With annualised revenues of over US$40 million, a business of over 80 per cent gross margin and two profitable markets, Malani said Carousell was well positioned to advance its combined business to the next level.

701Search’s regional hub team that operates in Singapore will be fully integrated into Carousell.

Mudah, Cho Tot and OneKyat will retain their individual names and platforms, continuing operations in Malaysia, Vietnam and Myanmar respectively.

The businesses will report into Carousell chief executive officer Quek Siu Rui.

Johan Rostoft, head of online classifieds at Telenor, 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.”

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