Norwegian telecom company Telenor Group has merged its online classified assets with Carousell, Southeast Asia’s leading general marketplace. The merged company is valued at over $850 million U.S.
Telenor’s 701Search.com was absorbed by Carousell in the merger, giving the multinational telecommunications company a 32% stake in the company.
While the financial details of the transaction weren’t disclosed, Bloomberg reports that Telenor plans to invest $20 million U.S. in Carousell.
Rakesh Malani (LinkedIn profile), chief financial officer at Carousell, said the transaction further cements the company’s position as the leading online marketplace in Southeast Asia.
“With annualized revenues of over $40 million U.S., a business of over 80% gross margin and two profitable markets, we are very well positioned to advance our combined business to the next level,” Malani said.
Carousell is rapidly consolidating its assets in the region. The marketplace already holds dominant positions in Singapore, its home market, and Hong Kong. In July, Naspers-owned OLX Group bought a 10% stake in the company for $56 million U.S., part of a plan to merge its operations in the Philippines with Carousell. As part of the merger, leading Filipino property vertical Property24 also became part of Carousell Philippines.