Carousell makes its mark on the global classifieds stage

Carousell—the poster child for Singaporean startups—has emerged as Southeast Asia’s largest classifieds company. With OLX and telecom giant Telenor in its corner, it looks en route to profitability. Its recently-announced merger with rival 701Search, though, will decide whether it becomes a king or pawn on the global classifieds chessboard

Carousell merged with Telenor’s 701Search to form an $850 million-valued classifieds giant in Southeast Asia

Revenue growth has been impressive, but Carousell is not close to break even; 701Search is the opposite, profitable but at a smaller scale

OLX—which invested in Carousell this year—has a history of buying into companies and later taking them over, Carousell could be in line for an exit if it executes as planned following the merger deal

Investors in Southeast Asia have seen few exits, but hopes are now raised for Carousell—which is viewed as Singapore’s startup darling and has rejected previous acquisition offers

Carousell, Singapore’s startup darling, has found its path. In November, the seven-year-old mobile classifieds service announced a merger deal with Telenor-owned rival, 701Search. The deal values the combined entity at $850 million and brings together two of the region’s most prominent classifieds businesses.

The Singapore-based company was “unbelievably lucky” to pick up this deal, an investor whose portfolio includes classifieds businesses told The Ken. This turns the business into a genuine contender for unicorn status (a valuation north of $1 billion), said the investor.

The Carousell story is well known in Southeast Asia startup folklore.

AUTHOR

Jon Russell

Jon Russell is Southeast Asia editor for The Ken based in Bangkok. Originally from the UK, Jon moved to Thailand in 2008. He’s passionate about telling thoughtful business stories, and tracking the impact of the internet in his adopted home of Southeast Asia.

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