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Qxpress, the logistics offshoot of Singapore-based e-commerce group Qoo10, is expanding operations with the acquisition of Hong Kong-based freight forwarder Korchina Logistics.
With 38 branches and more than 1,000 employees worldwide, Korchina’s network covers major Asian markets, including China, South Korea and Japan and a further 14 countries.
Qoo10 is a joint-venture between US-based eBay and Gmarket, a South Korean e-commerce site it acquired. In 2015, Singapore’s main newspaper publisher, Singapore Press Holdings, invested $112m in Qoo10 to diversify into non-media businesses.
Besides delivering goods to Qoo10’s customers, Qxpress also services other e-commerce companies.
Qxpress said the acquisition of Korchina would be “synergistic in expanding service offerings for both companies’ customers and provide cost savings and efficiencies”.
The price was not disclosed, but the takeover comes amid reports that Qxpress is exploring an initial public offering in New York next year.
The takeover of Korchina coincides with growing demand for e-commerce, as more people stay home and shop online due to the Covid-19 pandemic. A report on Monday by Tech for Good Institute, a think-tank founded by Singapore-based technology company Grab, shows that one in three consumers in Singapore are using online platforms for goods and services.
Qxpress CEO Ku Young Bae said: “The expanded demand for cross-border e-commerce logistics will continue to drive further growth for both companies.”
He added that Qxpress would be able to provide key expanded services for Korchina’s extensive customer base, including access to D2C logistics capabilities and expanded footprint for an end-to-end logistics platform, including integrated warehouse services, pick and pack and fulfilment services.