Mogujie the Chinese social e-commerce app which has a tie up with eTao the, product search engine of Alibaba has acquired Meilishuo.
Mogujie which initially was a social platform for sharing photos which was the Chinese clone script of pinterest after its tie up with Alibaba it has turned out to the biggest social shopping app of China. Pinterest is also a huge traffic diverter for e-commerce websites.
These social sites have been a huge influence over buyers and steering them to the sites.Especially in women’s fashion.Certain social apps also integrate links to the e-retailers websites.
Meilishuo is the biggest rivalry of Mogujie acquiring its has increased its to $2.5 billion.The two companies together form a new company for which The CEO of mogujie will head.CEO Chen has also claimed that this was a profitable move to the entity as it keeps the next rivalry far from them.They are together backed by Tencent Holdings Ltd the social networking giant of China.
Meilishuo has been trying to raise funds with less success but Mogujie has raised $200 million.This new entity is also planning to raise funds which will increase its value to $3 billion. Tencent is planning to increase its stake in the company.The merging of such newage tech firms mostly come from investor’s pressure. Check Zoplay for more clone scripts
The other major tech firms that have merged in china include the ride hailing companies Didi and Kauidi, Metuan and Dianping the online-to-offline platform have also merged recently.
These social sites have been a huge influence over buyers and steering them to the sites.