Singapore-based online classifieds marketplace firm Carousell has recently ended talks to go public through a merger with blank-cheque company L Catterton Asia Acquisition Corp amid market volatility, Bloomberg reported on Thursday, quoting people familiar with the matter.

The special purpose acquisition company (SPAC), which reportedly has been conducting due diligence on Carousell over the past few months, has not been able to reach a merger agreement with Carousell, according to the report.

The stock market rout recently has made it difficult to arrange a private investment in public equity (PIPE), the people said. Macroeconomic uncertainty and valuation concerns are also among the factors weighing on a potential deal, they added.

A representative for Carousell declined to comment on the matter. “As a matter of company policy, we do not comment on market rumors. We can share that we are privileged to have the support of investors that support our long-term vision, and we are laser-focused on our mission of inspiring the world to start selling and buying to create a lifestyle where secondhand is the first choice,” the representative from communications team told TechNode Global.. L Catterton declined to comment.

Bloomberg reported in January that the companies were in talks to merge in a deal that could have valued the combined entity at as much as $1.5 billion. The transaction was meant to include a PIPE worth a few hundred million dollars, people familiar with the matter reportedly said.

Interests for SPACs has declined amid heightened market volatility with a growing number of prominent deals fizzling out, according to the report.

The US-listed SPAC is backed by L Catterton, the $30 billion buyout firm minority-owned by Paris-based luxury goods company LVMH and billionaire Bernard Arnault’s investment firm.

Led by managing partners Chinta Bhagat and Scott Chen, the SPAC raised $250 million last year, sponsored by L Catterton Asia’s $1.45 billion third fund.

Carousell was founded in 2012 and counts Telenor Group, Rakuten Ventures, Naver, and Sequoia Capital India among its backers. The firm has operations in eight markets across Southeast Asia, Taiwan and Hong Kong, allowing users to buy and sell a diverse range of products from cars to gadgets and fashion accessories. It also operates several online marketplaces including Carousell, in Vietnam, Mudah in Malaysia and OneKyat in Myanmar.

Last month, Carousell announced that it has signed a deal to acquire Refash, a Singapoore-based omnichannel fashion recommerce retailer, for an undisclosed sum.

Singapore’s online classifieds platform Carousell in $1.5B SPAC deal talks with L Catterton – report