NTT DoCoMo, Japan’s largest mobile operator, has just acquired a majority stake in fashion e-commerce site Magaseek.
The acquisition is done at ¥2.04 billion (about US$22 million) for a 71 percent stake. Following the deal, Magaseek will become a subsidiary of DoCoMo.
Here’s the official announcement from DoCoMo which states the reason of the acquisition:
“Magaseek, one of Japan’s leading websites for fashion goods, has a considerable user base, mainly female customers in their 20s and 30s. DoCoMo expects to realize synergies in customer satisfaction and shopping convenience by linking Magaseek’s services with DoCoMo’s 60 million customers, cloud services and business expertise.”
Prior to the majority stake acquisition by DoCoMo, MagaSeek was owned by trading firm Itochu. It recorded net profits of ¥138 million (US$1.5 million) on sales of ¥9,698 million (US$106.6 million) last year.
What we are increasingly reporting is that e-commerce companies are hot commodities right now, with e-commerce startups receiving considerable investments from investors. Yesterday, Singapore’s lifestyle e commerce platform Jooix raised a US$500,000 funding from Melbourne-based Beacon New Ventures. Zalora, too, recently received a whopping US$26 million of funding to expand its e commerce operations. Earlier in February, Inverted Edge raised US$1.6 million to launch its e-commerce site for independent fashion designers.