Singapore-based rewards and discovery platform ShopBack has expanded into South Korea with the acquisition of the country’s largest online cashback platform Ebates Korea, according to a company statement.
Financial details of the acquisition were not disclosed. ShopBack said Ebates Korea will cease operations following the acquisition. Its users will be directed to ShopBack Korea’s beta platform.
ShopBack’s expansion into South Korea is strategic as the country is considered as one of the biggest e-commerce markets worldwide. The firm said the deal will strengthen its roster of merchants offering cashback in the country. It will now include major Korean brands Gmarket, Wemakeprice, and 11Street.
With the launch of ShopBack Korea in mid-2020, shoppers can make purchases through the platform and earn up to 15 per cent cashback on their purchases in categories like fashion, beauty, and electronics.
“We constantly evaluate new opportunities to connect with and serve more consumers, and acquiring Ebates Korea presents a unique opportunity to enter the South Korean market from a position of strength,” said Henry Chan, CEO and Co-Founder, ShopBack.
He added that the country’s digitally mature mindset and rapid adoption of e-commerce makes it “a core and high-potential market” for cashback platforms.
ShopBack acquires Ebates Korea from Rakuten, which invested in Singapore-based cashback platform’s $45-million Series B funding round last year.
The acquisition comes a month after ShopBack secured $75 million in an extended funding round led by Singapore’s state investor Temasek. The company earlier said that the extra capital will be deployed into enhancing ShopBack’s technology infrastructure and expanding data capabilities.
ShopBack has over 19 million users across its markets, offering cashback with its 2,000- strong merchant base across general merchandise, travel bookings, fashion, health and beauty, groceries, and food delivery.
In Singapore, the firm has branched into brick-and-mortar stores, allowing users to claim rewards for in-store shopping, dining, and entertainment.
“Launching ShopBack Korea will be a major step forward for us in fulfilling our mission to create a world of Smarter Shoppers,” Chan said.
ShopBack’s competitors include Sequoia India-backed Fave and Snapdeal. The Singaporean firm also competes with regional super apps such as Grab that offer rewards through their digital wallets.
