In its recent development, ShoClues has taken over a Bangalore-based startup MoMoe. The online marketplace which has marked itself as the latest entry to the billion-dollar valuation club, ShopClues is planning venture into the payment business with this acquisition.
With this acquisition, Shopclues will be putting its first step in the IT hub of India (Bangalore) which now, apparently also known as the startup capital of the nation. As per the pact, all five founders of Momoe are expected to join its senior management team across functions like design, corporate development and technology. According to the market’s speculations, the deal is cracked with an estimated amount of US $10-12 million, with consideration being paid in both cash and stock.
Investors in Momoe which raised $1.2 million from India Quotient, IDG Ventures India and Jungle Ventures will get both cash and stock in ShopClues as a part of the transaction. Confirming the news, Sanjay Sethi, CEO, ShopClues said that the company has roped in five very senior people on the platform as a part of this acquisition, which is the most exciting part. However, even after much of probing, CEO didn’t reveal the exact figures of the deal.
Two-year-old Momoe was founded by Utkarsh Biradar, Karthik Vaidyanathan, Ganesh Balakrishnan, Neelesh Bam and Aiman Ashraf mostly graduates of IITs and IIMs, and are present in Bengaluru. All five are joining ShopClues at senior management positions.