German Internet company, Rocket Internet has announced today the merger of two of its ecommerce stores Daraz and Kaymu under a new entity named Daraz Group.
Daraz and Kaymu operate in developing economies of Asia, including Pakistan, Bangladesh, Myanmar, Sri Lanka, Cambodia, Nepal and Philippines.
Both companies have a slightly different business models. Kaymu caters the B2B and B2C segment, connecting buyers and sellers to close deals on various new and used items. Where as Daraz keeps the focus at established brands and its control over merchandise.
In Pakistan and Bangladesh the two ecommerce stores will continue to work separately, however for other countries all the resources will be centralized under one roof and most of the operations will be taken care from Karachi, Pakistan.
Kaymu is a large company in terms of consumer base however Daraz has significantly bigger marchandise value.
Bjarke Mikkelsen, CEO Daraz Group
Regarding layoffs, the CEO has insisted that there aren’t any plans of major restructuring or mass layoffs. However it is expected that in a coming months workforce of both ventures will get a trimming.
Rocket Internet has also unified all of its ventures in Africa under a single brand name, Jumia.
