Singapore digital media company Migme has settled its acquisition of Shopdeca Indonesia.
Migme paid US$710,000 cash and 884,270 shares for the deal, and Shopdeca founder Andreas Thamrin has joined Migme as global head of eCommerce.
First announced in December, the acquisition will not only help Migme grow its business in Indonesia, but will also fuel its expansion into social eCommerce across Southeast Asia (SEA).
Migme CEO Steven Goh says platforms are the next generation of online business. “The fastest-growing and most disruptive companies in history – AirBNB, Amazon, eBay, Facebook, Google and Uber – are platform businesses. Migme is building a platform business focused on social engagement and interactions that can be monetised.
“We are building our platform specifically for the next half of the world coming online through low-cost smartphones, primarily in Southeast Asia.”
A report from global management consulting firm Bain & Company estimates the online retail market in SEA is worth $6 billion, but anticipates this could grow to $70 billion by 2020. The report says social media is highly influential in building consumer trust around product quality and seller credibility, with more than 80 per cent of consumers using social media and over-the-top content to research products or connect with sellers.
Migme plans to extend its pay-to-bid (via Sold) and B2C (via Shopdeca) eCommerce offerings by adding a consumer-to-consumer (C2C) social marketplace and a business-to-consumer-to-consumer (B2C2C) affiliate sales program.
In January, the company acquired social news site Hipwee and last month established a strategic partnership with photo and video mobile app. developer Meitu. The company has also partnered with PayTM, India’s largest mobile payment and eCommerce platform, which processes more than 10 million transactions a month with its digital wallet.
Migme is a global digital media company focused on emerging markets. It is listed and registered in Australia, its headquarters are in Singapore and it has offices in Hong Kong, Indonesia, Malaysia and Taiwan.