Singapore start-up Carousell’s valuation just surged to S$1.1 billion, thanks to merger with 701Search

Three online marketplaces in the region owned by 701Search – Mudah, Cho Tot and OneKyat – will now report to Carousell’s chief executive Quek Siu Rui (pictured).
The Business Times

Online marketplace Carousell is now worth US$850 million (S$1.1 billion), after inking a deal with Norwegian telco Telenor Group that will see the Singapore brand merge with Telenor-owned classifieds firm 701Search.

Before the merger, Carousell had a valuation of US$560 million, The Straits Times (ST) reported.

Announced on Thursday (Nov 21), the part-cash and part-equity deal will result in Telenor becoming the single largest miniority shareholder in Carousell, owning 32 per cent of the merged company.

701Search, which owns and operates three online marketplaces – Mudah in Malaysia, Cho Tot in Vietnam, and OneKyat in Myanmar – will retain their individual names and continue operations, but will report to Carousell’s chief executive Quek Siu Rui from now.

In addition, 701Search’s regional hub team that operates in Singapore will be absorbed by Carousell.

Rakesh Malani, Carousell’s chief financial officer, said in a statement that the Singaporean start-up’s latest deal shows that it is “driving rapid consolidation in the region”.

The merger with 701Search will allow the 7-year-old firm to “fortify our leadership in South-east Asia as Mudah, Cho Tot, and OneKyat are already leaders in their markets”, added Quek.

Besides Telenor, Carousell has been backed by other investors such as OLX, Naspers, Rakuten Ventures, EDBI, Sequoia Capital, 500 Startups, Golden Gate Ventures and DBS.

Read Also: