So Carousell is merging with Telenor’s 701Search, combining the value of the two companies. This is not long after Carousell devouring OLX’s PH business, which we commented about.

701Search runs a number of classified sites in the region, notably Mudah in Malaysia.

Terence of TechinAsia has put together a pretty impressive analysis on what might be the motives behind this deal. Get a TechinAsia subscription if you have not, it is worth it 😉

Anyway, will not repeat some of the good points already mentioned in Terence’s article – but what we can see for sure is that more consolidation will come in the region, as late stage companies are pressurised with profitability and investor exits.

We will see that in payment, ecommerce (in Indonesia) and possibly a few other sectors.

There are companies which still have good growth stories to tell – like Grab – and companies which would need to quickly dominate the existing sector – like Carousell.

Guess what we will put in our predictions for 2020?

 

Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at hello@mworks.asia.

 

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