Rocket Internet has decided to merge their e-commerce marketplaces, Daraz and Kaymu, under a new entity Daraz Group. Operations like marketing, IT, and business intelligence for the new entity will be centralized in Karachi, Pakistan in efforts to reduce costs and accelerate growth.
Daraz is a managed marketplace working on the business model similar to Amazon. Its currently operational in Pakistan, Bangladesh and Myanmar.
On the other hand, Kaymu is an open marketplace similar to eBay where even small businesses can come to sale their products and they have to handle the deliveries and logistics themselves. Kaymu charges a small amount of free per sale. Its present in Pakistan, Bangladesh, Myanmar, Sri Lanka, Cambodia, Nepal, and the Philippines.
In two of the three common countries, Pakistan and Bangladesh, Daraz and Kaymu will keep operating under separate brand names. However, in other countries including Myanmar, both the website will soon be operated under a new brand name.
Bjarke Mikkelsen, co-CEO of the newly formed Daraz Group, along with Jonathan Doerr, will head the group in Pakistan, Bangladesh and Myanmar. Whereas, Sri Lanka, Cambodia, Nepal and Philippines will be managed by Niroshan Balasubramaniam, the former managing director of Kaymu Asia.
While talking to Tech in Asia, Mr. Mikkelsen said that there is definitely an overlap between the business model of Daraz and Kaymu but the way they manage their sellers and customers, it will make a lot more sense to do it under one roof. Furthermore, both the websites have very different customer bases in terms of gross merchandise value and the amount of money customers spend. He further added that they have been working on this merger since about six months now.
The group insists that there would not be any layoff immediately but after some months when the merger really starts to take effect.