Sweden’s Fram to buy Rocket-backed Carmudi’s Vietnam business

Ho Chi Minh City, Vietnam. Photo: Pixabay

Fram Skandinavien AB has decided to acquire 95 per cent stake in struggling Rocket Internet-backed Vietnamese company Car Classifieds Ltd (Carmudi Vietnam).

According to a statement, Swedish-Vietnamese IT service provider Fram will pay $50,000 for a 95 per cent stake in Rocket Internet-backed Carmudi, in which 5 per cent stake is held by a private individual in Vietnam.

Post acquisition, Fram will have the rights to the Carmudi brand in Vietnam, the carmudi.vn domain, its existing traffic, customer relationships, and a first licence to conduct e-commerce in the form of a marketplace in Vietnam, it said in the statement.

In the nine-month period from January to September this year, Carmudi had a turnover of around $190,000 and reported a loss of over $506,000 while in 2016, the company reported a loss of $518,000 and a turnover of $169,000.

The marketplace which had forayed into the Vietnamese market in 2014, is currently present in the country’s two biggest cities, Hanoi and Ho Chi Minh City. It had recorded about 1.1 million organic page views as on September 2017.

This deal is the latest in a string of Rocket Internet exits from the Vietnamese market, after the German Internet company withdrew its ride-hailing business, EasyTaxi, from the country, as well as sold Lazada, Zalora and Foodpanda.

Meanwhile, a number of homegrown car classifieds websites have recently sprung up to tap this $3-billion market. Caramo, which focuses on used cars, raised an angel round earlier this year while venture-backed marketplace chotot.vn also started its car classifieds operations.

Fram Vietnam was established in 2016 by former executives at Lazada, McKinsey and Ericsson. Christopher Beselin, chairman of the company, used to spearhead Lazada Vietnam before it was sold to Alibaba.

Fram Vietnam provides IT services to small to big businesses in Vietnam, and invests in venture building. Its venture builder has incubated two companies, freelancer platform Pangara and e-commerce startup Intrepid.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.