TMON may go under Singapore-based Qoo10 at bargain price of $154 mn amid losses

Despite the company¡¯s repeated denial, TMON Inc., South Korea¡¯s first-generation e-commerce player may be near sale to Singapore-headquartered online platform Qoo10 at a bargain price of 200 billion won ($154.3 million).

According to industry insiders, TMON is said to be in the final stage of talks over the sale of a controlling stake to Qoo10, online marketplace operating mainly across Southeast Asia and formerly known as GMarket.

TMON has denied the stake sale, saying that it is discussing a strategic investment.

But the leak of specific figures suggests maturity in the negotiation.

TMON is one of Korea¡¯s first-generation e-commerce platforms. It earned unicorn status in 2016 after its enterprise value hit 1 trillion won upon winning investments from IT company NHN, formerly NHN Entertainment.

In 2019, TMON discussed a merger and acquisition deal with retail giant Lotte Group for an estimated 1.25 trillion won. The deal fell through at the last minute. Last year, TMOM prepared to go public after drawing new investment of 305.0 billion won from investors at home and abroad earlier in February. The plan also had flopped.

TMON¡¯s growth has been stalled since 2018. It was mired in losses even during the pandemic-triggered online shopping boom.

Its revenue shrank 14.7 percent to 129.0 billion won in 2021 from the previous year. Deficit accumulated to 1.1 trillion won as of the end of last year, as expenses exceeded revenue with mounting losses.

The Korean e-commerce market is dominated Coupang, Naver, and Shinsegae, leaving little room for smaller players like TMON to raise funds for expansion, said an industry expert.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]