Rocket Internet, the German startup giant has announced the merger of the two leading e-commerce players of Pakistan Daraz and Kaymu, into a single entity called Daraz Group.
According to TechInAsia, the newly born Daraz Group will combine the two companies under one roof. The move will help “leverage synergies on the growth and cost side,” said Rocket Internet.
Whereas, operations like marketing, IT, and business intelligence for the group will be centralized in Karachi, Pakistan.
However, the two ecommerce sites will continue to be separate in Pakistan and Bangladesh, whereas, in other countries they’ll be merged under a single brand name.
Local media reports added, “Daraz and Kaymu have both built successful operations in their respective markets. The merger is now the next step to offer our sellers the best possible solutions to grow their online business… In addition to the local benefits of a more integrated strategy, we are excited to build a best-in-class team in Karachi for our central functions like IT, marketing and Business Intelligence in order to unite the best practices from the B2C and the C2C world,” stated Bjarke Mikkelsen, co-CEO Daraz Group.
Dr. Jonathan Doerr, the other co-CEO Daraz Group informed, “We now need to closely analyse the local presence in each respective market and based on the operations and market structure, design the optimal individual strategies. Several cross-country task forces have already started their work to develop the most efficient plans for Daraz Group.”
Reports added that at the moment, there aren’t any plans of major restructuring or mass layoffs. Both Bjarke and Jonathan however, expect “natural attrition,” where employees feel they don’t fit into the larger picture anymore and voluntary resign.
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