The deal means Looksi will no longer operate its app and website and instead join the Pomelo ecosystem, which competes with a number of players in the fashion e-commerce space, such as Zilingo, Indonesia-based Sorabel, and Southeast Asian online shopping giants Shopee, Lazada, and Tokopedia.
Looksi’s social media channels will also move over to Pomelo. This deal will give the Thai e-commerce firm additional key international brands, such as Adidas, Aldo, Havaianas, Topshop, Guess, Levi Jeans, and Nike, that are currently available on Looksi.
“Looksi has been serving Thai fashion e-commerce shoppers since its founding as Zalora in 2012. This deal will speed up Pomelo’s evolution to become a multi-brand fashion platform for fashion lovers all across Southeast Asia,” said Pomelo CEO and co-founder David Jou.
In a separate announcement, Looksi informed its customers that they can still shop on Looksi until midnight of January 31.
The deal followed Central Group’s investment in Pomelo’s Series C funding round in September 2018. The round raised $52 million, with Pomelo saying it will use the money to fuel the expansion of its omnichannel fashion brands across Asia.
The transition comes as Thailand’s e-commerce market value is expected to surge to $13 billion by 2025 from last year’s $3 billion on the back of strong global demand for Thai products, according to the Google/Temasek e-Conomy 2018 report.
The expected growth in the country’s e-commerce market has made investors bullish. For instance, Singapore-based investor Indies Capital Partners last week invested $15 million in Bangkok-based brand e-commerce enable aCommerce.
Founded in June 2013, aCommerce helps brands such as Samsung, L’Oreal, and Unilever sell their products online across Southeast Asia by providing services from webstore design, distribution, and marketing to warehousing and delivery.
The Thai government, however, is set to introduce a value-added-tax on electronic businesses this year, aiming to collect between 3 billion to 4 billion baht ($98 million to $131 million) a year.