James Lee, CEO of Elevenia. Photo credit: Elevenia.
The news (extracted from Pulsenews):
- Korean telco and internet enterprise SK Planet is exiting its Indonesian ecommerce business Elevenia.
- Elevenia is a joint venture set up by SK Planet and Indonesian telco XL Axiata in 2013.
- SK Planet reportedly sold its 50 percent stake to Indonesian retail conglomerate Salim Group, which has recently partnered with Korean retailer Lotte for a separate ecommerce business in Indonesia.
- After Indonesia, SK Planet is reportedly considering withdrawing from further markets like Malaysia, Thailand, and Turkey.
Why it matters:
- China’s Alibaba left no doubt about its ambitions for Indonesia ecommerce landscape when it participated in a massive investment round for Tokopedia. As such, competitors are preparing for a long and expensive battle, with some industry players predicting consolidation under these circumstances.
- Japanese firm Rakuten made a similar decision last year, pulling out of its Southeast Asia operations to focus on other markets.
- Salim Group, on the other hand, has been ramping up efforts to expand into digital business opportunities. It recently acquired a controlling stake in a bank to push digital payments.
This post Brief: Korean telco drops Indonesia ecommerce plan, sells stake to Salim appeared first on Tech in Asia.
from Tech in Asia https://www.techinasia.com/korean-telco-sk-planet-drops-indonesia-ecommerce-plan-sells-stake-salim
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