Qoo10 expands e-commerce reach with $173M Wish acquisition

Once a titan of the online retail world, Wish—operated by ContextLogic—is shifting gears as ContextLogic plans to sell to Qoo10, a Singapore-based e-commerce company, for $173M—a stark contrast to its past market value.

• Early Heights: Upon its IPO in 2020, ContextLogic boasted $1.1B raised, valuing the company at $14.1B.

• Market Challenges: Fierce competition from platforms like Temu and Shein caused a stir, leading to a significant strategy pivot.

• Wish's Woes: Founded in 2010, known for bargain deals and an extensive product range, Wish has struggled with product quality concerns, slow shipping, and customer service woes.

• User Exodus: A troubling decline from 90 million monthly active users in 2021 to just 27 million in 2022 painted a concerning picture.

• Shareholder Silver Lining: Despite challenges, shares are being acquired at $6.50 each—a 44% premium over the price before the sale announcement.

• Behind the Scenes: Activist investors, including Cannell Capital, pushed for changes amid financial losses and decreasing market value, sparking a strategic review.

After the deal, expected to be finalized by mid-2024, ContextLogic will keep its brand intact but awaits the nod from shareholders and other standard approvals.