– Additional A$10M raised from Ward Ferry for a 10.6% stake, bringing the total funds raised this month to A$16.4M
– Chinese e-commerce giant, Vipshop Holdings Ltd (NYSE: VIPS) acquires a 12.2% stake in Ensogo
– Vipshop relationship intended to fuel and accelerate Ensogo’s growth
– Significant gains expected from access to Vipshop’s vast selection of inventory
– Vipshop to share key business expertise which allowed for the company’s rapid and exponential growth
SINGAPORE, March 13, 2015 /PRNewswire/ — Ensogo Ltd (ASX:E88), the No 1 e-Commerce business in the South East Asia and Hong Kong region, is pleased to announce it has entered into an agreement with WF Asian Reconnaissance Fund Limited ("Ward Ferry", a fund managed by Ward Ferry Management) for the placement of 58,823,530 new Ensogo shares to Ward Ferry at a price of A$0.17c per share. The placement is subject to shareholder approval and will raise A$10,000,000.10 in new capital for Ensogo.
The announcement of this new placement and fresh capital comes on the heels of Ensogo’s recent announcement that China’s leading online discount retailer, Vipshop, had taken a strategic stake in the Company.
Kris Marszalek, chief executive officer of Ensogo, commented, "We are extremely excited to welcome a fund of the caliber of Ward Ferry onto our register. The additional A$10m of funding means we are perfectly positioned to execute on the tremendous opportunity our strategic relationship with Vipshop brings, as well as on the enormous opportunity for e-Commerce in Southeast Asia."
Commenting on the Vipshop alliance, Mr. Marszalek continued: "As a part of the strategic investment, the companies will also enter a strategic operating partnership, whereby Ensogo will have access to Vipshop’s vast volume and selection of existing inventory, all to be made available for immediate shipping. The companies also intend to cooperate in the areas of logistics, merchandising, technology, marketing and user acquisition; the very expertise, which enabled Vipshop to scale its revenues from US$32m in 2010 to US$3.77 billion in 2014. We’re excited to be in the perfect position to build the Vipshop of Southeast Asia."
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Co-founder & CEO, Ensogo Ltd
Ensogo Ltd is the No 1 e-Commerce business in the South East Asia and Hong Kong region.
Listed on Australian Securities Exchange and headquartered in Singapore with operations in Hong Kong, Singapore, Malaysia, Philippines, Indonesia and Thailand, Ensogo is focused on connecting products for sale to over 600m+ consumers in South East Asia and Hong Kong through its e-Commerce websites.
Ensogo will continue to capitalise on its market-leading positions in the rapidly growing e-commerce / flash sales market throughout the region.