The Singapore-based social entertainment platform listed on the Australian Securities Exchange (ASX), migme, has entered e-commerce space with the acquisition of defunct online penny auction site Sold.sg from parent firm Soldgers Pte Ltd.
migme plans to relaunch Sold.sg in February, with progressive integration into core services and expanded into key markets throughout 2015. The acquisition terms are confidential but known to be a mix of cash and shares.
Soldgers managed to generate $2 million in annual revenue in 2013 but failed to scale fast enough, despite expanding to Malaysia and the Philippines. According to Qiuyan Tian, who founded Soldgers in 2010, “We were somewhat plateauing. We were in the Valley of Death where we were not getting enough growth to attract series A funding.”
Sold.sg comprised two main assets: a pay-to-bid auction site and an e-commerce site. Formerly, it worked on a virtual currency scheme with a unidirectional flow, where users purchased tokens with fiat currencies and bid with those on different goods.
However, the market cycle shift and growth of e-commerce activity in the region has strengthened sold.sg’s prospects. Steven Goh, CEO of migme, explained “The e-commerce sector is now growing quickly in emerging markets and evolving in developed ones, and this acquisition broadens the service profile of our platform to take advantage of the upside that this sector growth brings.
Citing the success of China-based Taobao being a key asset in Alibaba’s e-commerce portfolio, Goh added “Over the current year, we’ll be looking to replicate some of that success by bringing a playful social e-commerce experience to migme’s platform and growing user base.”
Sold.sg will be merged into migme’s existing service portfolio, which includes a gaming and app development platform. This serves to strengthen and broaden migme’s offerings beyond just virtual gifts and games, with integration into migme’s games and applications platforms, media partners and verified artists.
Recently, Migme invested $400k into regional games platform developer MatchMe Pte, to expand user base.