Carousell Group, the Singapore-based recommerce group, announced Tuesday that it has acquired control of Laku6, the artificial intelligence (AI)-first end-to-end electronics recommerce platform in Indonesia, to bolster expansion Of electronics recommerce in Greater Southeast Asia.
Carousell said in a statement that Temasek unit Heliconia Capital will be supporting Carousell in its acquisition of Laku6 and in accelerating circularity in secondhand electronics.
The deal follows the initial investment Heliconia made into Carousell, less than a year ago in October 2021.
This partnership between Carousell and Laku6 will position Carousell as the market leader in the Greater Southeast Asia’s electronic recommerce industry, which is slated to grow over 2.5 times to $18.6 billion by 2026, based on research by RedSeer Strategy Consultants.
Having inspected and transacted over half a million mobile phones and served over 16,000 mobile phone merchants, Laku6’s proprietary AI-first remote diagnostic technology can remotely inspect the condition of secondhand mobile phones in under 2 minutes. This makes selling easy, as it allows consumers to encash their phones in as quick as 1 hour.
This proprietary solution is capable of remotely inspecting both software and hardware functionalities, including visible screen damage, and helps establish a credible inspection process to instill both buyer and seller confidence.
“This partnership provides for a potent combination to secure Carousell’s leadership in the Greater Southeast Asia electronics recommerce market–bringing together Laku6’s AI-first remote diagnostic technology, Carousell’s regional recommerce platform of tens of millions of users, and one of the largest capital investments to-date into the region’s electronics recommerce space,
“We are truly excited to partner with Alvin, Shing Kae, and the entire Laku6 team. The electronics recommerce opportunity is one that is win-win-win: great for users with affordable like-new devices, beneficial to the environment as people sell and buy secondhand instead of new, and an exciting business opportunity with over 2.5X electronics recommerce growth potential ahead,” said Quek Siu Rui, Co-founder and CEO of Carousell.
Meanwhile, Laku6 Founder and Chief Executive Officer Alvin Yap said, Carousell and Laku6 shared a deep commitment of making secondhand the first choice and the demand for electronics recommerce is growing faster than ever in Greater Southeast Asia.
“It is exciting to be part of a regional leader that aligns with Laku6’s vision. With Carousell’s scale and investment, we are well-placed to create a winning formula and offer our proven solutions to a very large audience of end-users and merchants,” he added.
According to the statement, Carousell sees about 2 million new listings in its electronics category every quarter, making it one of the largest platforms to transact used electronics, and particularly mobile phones, in the region.
It said that Laku6’s proprietary solutions, pricing algorithms and instant cash service, when integrated with Carousell’s wide user network, will make buying and selling used electronics more accessible than ever before for millions of users.
It also said as the fastest growing waste stream globally, the e-waste crisis has been perpetuated by a rapid increase in electronic consumption and shorter gadget lifespans, with Asia consistently generating the highest quantity of e-waste globally.
By making it easier for our users to sell their idle devices and buying certified used devices, it said Carousell and Laku6 aim to extend the life cycle of electronics goods, thereby slowing down the growth of toxic e-waste.
This partnership also follows Carousell’s acquisition of Ox Street, the leading authenticated streetwear marketplace, and Refash, Singapore’s largest omnichannel fashion recommerce retailer, and reflects the group’s strategic focus to cement its leadership position in the recommerce arena across verticals from fashion to electronics, and its commitment to making second hand the first choice.
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