Startups Tech

eCom Platform LightInTheBox Acquires Ezbuy for $85 mn

eCom Platform LightInTheBox Acquires Ezbuy for $85 mn
Source: Capital Watch

LightInTheBox is a Chinese eCommerce platform which provides discounted sales and services. The company has been struggling for quite some time now. In a recent turn of events, the company decided to purchase the Singapore based cross-border e-commerce platform operating across Singapore, Pakistan, Indonesia, Malaysia, and Thailand.

In an attempt to turn tides around, LightInTheBox offered to take complete ownership of Ezbuy for a hefty sum of $85.55 million. With the company on a path of decline, this might prove to be a much-needed change of momentum. Where the company initially had stocks priced at $9.50 per share in their IPO in 2013, that soon dropped to under a dollar. As of today, each share is priced at $0.64 with the highest of the year being a low $1.35 last month.

The Q2 reports revealed that the company suffered from a 29% loss year-on-year whereas the actual figures rose from $1.8 million last year to $9.5 million this year. However, that’s not the end of it. The founder of the company has stepped down and has been replaced by Ezbuy CEO, Jian He. At the same time, Meng Lian, a partner in IDG Ventures, has stepped in to fill the role of the Director.

The company was founded in 2010 and raised close to $40 million from IDG Ventures, one of the partners of which investment firm currently acts as the director for the company. It claims to extend its services to greater than 3 million customers with discounted products obtained from like the USA, China, Korea, Malaysia, Taiwan and Singapore.

South Asia’s digital economy is predicted to cross $240 billion by the fiscal year 2025, while the e-commerce industry is projected to reach $100 billion on its own, making up a great part of the digital economy industry in the process. With LightInTheBox acquiring Ezbuy to facilitate their cross-border sales better, they are practically banking for the boom in their sector at this point while they act on a desperate attempt to dive at the opportunity.