The South Korean web big Naver has agreed to purchase Poshmark, a preferred secondhand retailer primarily based in the US, for $1.2 billion. It’s Naver’s largest acquisition up to now and an indication of the corporate’s broadening world ambitions.
Typically known as the “Google of South Korea,” Naver is a wide-ranging web providers supplier that started as a search engine earlier than increasing into e-mail, messaging, information aggregation and e-commerce. Its web site and suite of cell apps are a few of South Korea’s hottest.
Naver’s acquisition of Poshmark provides the South Korean tech big a large foothold within the North American resale business. The corporate had already expanded into Japan and different markets within the area, most notably because the mum or dad firm, together with SoftBank, of the favored messaging app Line.
Naver has set its sights past Asia. In 2021, it acquired its first North American enterprise, Wattpad, a Toronto firm that gives a platform for studying and writing authentic tales, for $600 million. In 2017, it acquired Xerox Analysis Middle Europe, a France-based heart centered on breakthroughs in synthetic intelligence.
Choi Soo-Yeon, the chief govt of Naver, mentioned the acquisition marks the corporate’s acceleration into the worldwide “C2C” market, the class of enterprise the place clients promote items and providers to one another by way of a third-party platform like eBay or Craigslist. She positioned explicit emphasis on vogue, which has seen a worldwide surge in current months and makes up 15 % of South Korea’s e-commerce market.
Naver pays $17.90 per share, 15 % greater than on Poshmark’s closing worth of $15.57 on Monday however far under Poshmark’s worth when it went public in early 2021 at $42 per share. Poshmark will proceed to be led by its chief govt, Manish Chandra.
Naver’s shares fell by almost 9 % on the shut on buying and selling in Seoul on Tuesday. The corporate’s inventory is down roughly 60 % from its peak in mid-2021.
Massive tech firms are zeroing in on the intersection of social media and e-commerce as a brand new avenue of progress. With the success of short-form video and livestreaming apps like TikTok, many are looking for new methods to channel social behaviors into an in-app buy.
Poshmark was based in 2011 and works like a mixture of Instagram and eBay. It permits customers to publish pictures of things on the market in a digital “closet” from which others could make purchases. It is likely one of the largest apps in a booming world resale market that’s set to double within the subsequent 5 years, in keeping with a projection by ThredUp, a competitor.
The platform has over 80 million registered customers, largely within the U.S., Canada, Australia and India. In 2021, the corporate posted $326 million in income, a 24 % enhance from the earlier yr, and recorded a $98 million loss.
With the deal, Poshmark will acquire entry to Naver’s intensive community of customers and expertise merchandise. In a convention name, Mr. Chandra cited Naver’s expertise prowess in areas like livestreaming and synthetic intelligence as a cause for the sale.