Reebonz, the designer brand flash sales site has got some serious funding from an unusual source. MediaCorp, one of Singapore’s two largest media companies has invested $40 million in the e-commerce site. It is unusual because MediaCorp is not known for investing in start-ups. However, their CEO, Shaun Seow explains that the decision was taken as there is great alignment what Reebonz does and what MediaCorp has. The media house generates a lot of content targeted at the luxury market and they have a large base of audience. They have built up credibility amongst those audience and can help the retailer go places.
Reebonz Had So Far Raised Only $79.7 Million
The story was released on one of their own sites Channel News Asia. According to the report, the e-commerce venture has been valued at $200 million which means that MediaCorp will control 20% stake after their investment. Founded in 2009, Reebonz had so far raised a funding of 79.7 million from a range of investors including Vertex Asia Investments, GGV Capital, Intel Capital, Matrix Partners China and Infocomm Investments. The media conglomerate must have been encouraged to make a significant investment in the field of e-commerce as it is booming in the Asia-Pacific region. The industry experts believe that the region will generate a business of $1.3 trillion online. This investment will allow them to tap into the booming market.
Singapore Press Holding Had Earlier Invested in Chope
MediaCorp is confident that with their support Reebonz will be able to make more breakthroughs and become the leader in its category. Media groups investing in ventures on the web could become a trend. Media Corp’s main rival and another large conglomerate Singapore Press Holding had earlier invested $1.4 million in restaurant booking site Chope. Since it is a relatively smaller venture, the investment gave them the control of 27.8% in Chope. Through their portfolio of newspapers and magazines these media houses have the attention of a large base of readers. They are rather well placed to promote these ventures through targeted content. It could turn out to be a win-win situation for both parties.