Opposing suitors lining up for 11street Malaysia
Alibaba Group and JD.com are both competing to try to take over e-commerce company 11street Malaysia, a partnership between Celcom Axiata and Korea’s SK Planet, called Celcom Planet.
The Chinese rivals are both discussing deals with 11street Malaysia, reports Deal Street Asia.
Running second to Lazada in terms of monthly visits and apps installed, 11street is an online marketplace for fashion, electronics, groceries, health and beauty, children’s and baby products, leisure and sports, home and living, books and services, and deal offerings such as e-vouchers.
In late August, Celcom Planet CEO Hoseok Kim said the company was confident about its long-term growth prospects, but appeared to concede a change of ownership was on the cards, at least in part.
“We are very pleased with the success and progress that 11street Malaysia has made in less than three years since its launch and we are confident that we will be the number one marketplace in Malaysia within the next three years”, said Kim.
He added that the company was looking at various strategic options including funding from strategic partners to prepare for the next phase of accelerated growth.
Alibaba has already invested more than $2 billion in Lazada, and has led a $1.1 billion investment in Indonesia’s Tokopedia.
SK Planet launched 11street in Thailand this year. It launched in Malaysia in 2015 and a year earlier in Indonesia as Elevenia (now taken over by Salim Group).
Meanwhile, JD.com has announced a $500 million joint venture with Thailand’s Central Group focused on e-commerce and financial technology.
Chairman/CEO Richard Liu says he plans to make Indonesia the centre for the island area of Southeast Asia, and Thailand the hub for mainland Southeast Asia.