Carousell forecasts a slimming of its losses this year as it looks to capitalize on the potential of the recommerce sector. In an interview with CNBC, co-founder and CEO Quek Siu Rui remarked, "We have confidence that we can keep up a steady rise in this really vital recommerce market." Established in 2012, the Singapore-based business provides an online platform where users are able to post and sell their secondhand goods for a price.
Carousell, a marketplace for second-hand goods, looks to be heading in a positive direction according to its CEO, Quek Siu Rui. In an interview with CNBC's "Squawk Box Asia" on Monday, he stated that revenues would grow healthily in 2021, with the company on track to profitability. This is not unsurprising, as the Singapore-based firm saw a 67% jump in revenue in 2022 to $82.5 million and an increase in expenses that led to an overall widening in losses. Quek also referenced the large potential in the sale of pre-owned goods, with research indicating global circular economy could yield up to $4.5 trillion in economic output by 2030.
Carousell has been expanding its offering to cover a wide variety of products in the Southeast Asian market. In 2019, the company merged with Telenor Group's classifieds firm 701Search, which included the marketplaces Mudah in Malaysia, Chợ Tốt in Vietnam, and OneKyat in Myanmar. Additionally, Carousell acquired OLX Philippines, a major online classifieds site in the country. Moreover, the company's growth was bolstered by its 2018 acquisition of OneShift, an automotive platform, as well as the 2021 acquisition of Ox Street, an authenticated sneakers and streetwear marketplace. To further promote used luxury goods, Carousell also launched Ox Luxe, a service that enables users to buy, sell and consign pre-owned luxury items such as handbags and watches.
Explore the world of technology and crypto through CNBC Pro. HSBC has selected six 'good value' Chinese tech stocks to buy and has identified one with more than 50% upside. An analyst has named her top chipmaker, describing it as 'absolutely formidable.' Morgan Stanley has identified the 'next big thing' in smartphone technology, and has suggested global stocks for investment. Additionally, another analyst has recommended looking beyond the 'Magnificent Seven' tech stocks, and has named five top picks.
HSBC highlights 6 Chinese tech stocks that offer a good value, boasting over 50% upside potential. An analyst touts a particular chipmaker as "absolutely formidable" and explains why it is ahead of the curve. According to Morgan Stanley, the next evolution of smartphone technology has been identified and they have selected global stocks to invest in. Investors are encouraged to explore beyond the well-known "Magnificent Seven" tech stocks, with the analyst suggesting 5 top alternatives.
Carousell acquired Refash, a Singapore-based second-hand fashion dealer, plus Laku6, an Indonesian electronics recommerce platform, in the past year to extend its presence into the fashion and electronics markets. Quek told CNBC that they have sufficient capital to support these strategies and that they are assured the moves will result in healthy growth for recommerce.
In December, Carousell revealed that it was reducing its headcount by around 10%, representing approximately 110 positions. Quek, in a statement to employees, conceded that his expectations of the Covid recovery had been overly optimistic, and that he had not taken into consideration the ramifications of expanding the team too promptly.
In September 2021, Carousell raised $100 million in a funding round, boosting its valuation to $1.1 billion. During last year, it was revealed that Carousell had withdrawn from SPAC (special purpose acquisition company) discussions with American-based private equity organization L Catterton due to market instability. Owing to demanding macroeconomic conditions, such as soaring inflation and elevated interest rates, companies have had to pull out of or postpone their initial public offering plans.
Bình luận