German powerhouse Rocket Internet announced today the merger of their two e-commerce marketplaces Daraz and Kaymu across Asia. The two companies will now be working under the umbrella of the newly formed entity Daraz Group.
Daraz and Kaymu both command a significant consumer base in Asia. Daraz, which raised a $55 million funding last September, is functional in Pakistan, Bangladesh, and Myanmar. Kaymu, on the other hand, has a larger presence in Pakistan, Bangladesh, Myanmar, Sri Lanka, Cambodia, Nepal, and the Philippines.
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Daraz Group will be uniting the operations of Daraz and Kaymu. A move which, Rocket Internet says, they had been planning for six months will help “leverage synergies on the growth and cost side.” They also made the decision to locate their central operations from Paris to Pakistan. Karachi will be serving as the hub of their marketing, IT and business intelligence operations – a smart move that will help them cut off any overheads. Surprisingly enough, Daraz and Kaymu will continue to work as separate entities in Pakistan and Bangladesh. In all other countries, however, they will merged as one.
So what does this move mean? They both are e-commerce powerhouses in the Asia region. Kaymu has a larger consumer base and Daraz rolls in the big bucks. A lethal combination of the two is bound to turn some heads.
