Qoo10 CEO Young Bae Ku
US-based ContextLogic has agreed to sell all the operating assets and liabilities of its e-commerce unit Wish to Singapore-based Qoo10 for approximately US$173 million in cash.
This marks a considerable discount to the previous valuation of Wish, whose parent ContextLogic raised US$1.1 billion in its IPO in 2020 at a US$14.1 billion valuation. Wish, once a leading shopping destination in the US, faced massive competition from Temu and Shein, forcing it to sell its assets.
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The transaction is expected to be complete in Q2 2024. Following the closing, the Wish brand and platform will become a part of the Qoo10 family of businesses.
Post the transaction, ContextLogic will have limited operating expenses and a balance sheet that will be debt-free, with net cash proceeds from the asset sale, approximately US$2.7 billion of net operating loss (NOL) carryforwards and certain retained assets. The Board intends to use the proceeds from the transaction to help monetise its NOLs.
ContextLogic CEO Joe Yan said: “Integrating the Wish platform into Qoo10 will create a true global cross-border e-commerce platform to support the massive market demand. Upon close, we expect the new Wish platform will have an improved customer experience through increased product assortment and merchant selection.”
Qoo10 CEO and Founder Young Bae Ku remarked, “Wish has innovative technology that provides highly entertaining, personalised shopping experiences for its users while serving as one of the largest global e-commerce platforms. By combining our operating expertise and Wish’s technology and data science capabilities, we expect to drive greater success for merchants while providing an even greater marketplace for consumers globally.”
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In 2019, Qoo10 acquired ShopClues, an online marketplace in India, for US$70-100 million. This all-stock deal was the culmination of a prolonged hunt for a buyer by ShopClues, which at its peak was valued at US$1.1 billion in late 2015.
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