Alibaba, Brief, Buzz, consolidation, ecommerce, elevenia, Indonesia, Mergers and Acquisitions, News, Salim Group, SK Planet, XL Axiata

Brief: Korean telco drops Indonesia ecommerce plan, sells Elevenia stake to Salim

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 Elevenia stake to Salim appeared first on Tech in Asia.

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