CP buying online auction platform
$18m acquisition of Chilindo expected to complement company's WeMall
published : 7 Aug 2020 at 20:40
The Charoen Pokphand Group says it is acquiring the Hong Kong-based e-commerce platform Chilindo for US$18 million (560 million baht), expanding its digital business as consumer behaviour changes.
The acquisition of the auction-based platform will be made by Ascend Commerce, the digital arm of the agro-industrial and communications conglomerate, CP said on Friday.
Chilindo is intended to complement its WeMall online shopping platform and develop Thailand’s digital economy as the e-commerce market has been growing amid the pandemic, chief executive Suphachai Chearavanont said in a statement.
WeMall competes with bigger platforms including Alibaba-owned Lazada, Singapore-based Shopee and JD Central, a joint venture between Central Group and China’s JD.com.
Thailand has also become well-known for the willingness of its online shoppers to buy directly from merchants through social media platforms such as Facebook and Instagram.
“Chilindo’s plan to enter the international e-commerce market will increase the ability of Thai e-commerce brands to compete on an international level,” Mr Suphachai said, adding that the onset of 5G technology would help give the sector a further boost.
CP Group owns True Corporation Plc, parent of True Move, the country’s second largest mobile operator, which won 5G licences in February.