The Chinese fashion e-commerce company completed an acquisition on 26 July, of a 59.62 percent stake in RealShark Technology (also known as Rui Sha Technology) for 50 million yuan ($7.69 million) in cash, according to Mogujie’s latest filing with the US Securities and Exchange Commissions (SEC) where it is listed as Mogu Inc.
Following the news, Mogu Inc’s share price surged 23.30 percent by the close of the New York Stock Exchange yesterday. Chen Qi, chairman and chief executive of the company said the acquisition is important for Mogujie to build a stronger livestream e-commerce ecosystem.
RealShark Technology, based in Hangzhou, is a company that provides digitalisation and customised omnichannel operations for brand clients across the fashion, accessories, food and wine, and cosmetic industries. Having previously focused on women’s apparel, Mogujie has been increasing its investment in live e-commerce in recent years.
The company’s fourth quarter GMV of 2.576 billion yuan ($ 369.06 million) was up 6.5 percent year-on-year, of which live e-commerce GMV reached 2.245 billion yuan ($ 345.19 million), up 42 percent, but the company is still in the red, according to its quarterly earnings report filed on March 31.
As this year’s Singles’ Day festival approaches, video apps like Douyin and Kuaishou have joined the throng of tech companies jostling to steal a slice of market share from giants like Tmall and JD.com.