- ByStartupStory | February 16, 2024
US-based ContextLogic agrees to sell e-commerce unit Wish’s assets and liabilities to Singapore’s Qoo10 for about $173 million in cash. This deal comes at a significant discount compared to Wish’s previous valuation of $14.1 billion during its IPO in 2020. Following stiff competition from rivals like Temu and Shein, Wish opted to offload its assets.
Expected to finalize in Q2 2024, the transaction will see the Wish brand and platform integrated into Qoo10’s business portfolio. ContextLogic anticipates reducing operating expenses and achieving a debt-free balance sheet post-sale, with plans to utilize the proceeds to monetize its net operating loss (NOL) carryforwards.
ContextLogic CEO Joe Yan envisions the merger enhancing the global e-commerce landscape, stating, “Integrating the Wish platform into Qoo10 will create a true global cross-border e-commerce platform to support the massive market demand.” Qoo10 CEO Young Bae Ku underscores the potential of Wish’s technology, emphasizing plans to leverage it for a more enhanced shopping experience.
Qoo10’s acquisition strategy aligns with its previous purchase of ShopClues, an Indian online marketplace, in 2019 for an estimated $70-100 million.
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