SINGAPORE — Qoo10 Group, a Singapore-based e-commerce platform, is reportedly seeking to raise US$50 million in funding to resolve ongoing payment delays affecting sellers on its subsidiaries TMON and WeMakePrice. This move comes as the group faces increasing financial pressure and regulatory scrutiny.
According to Yonhap News Agency, the Qoo10 Group has experienced significant liquidity issues, partly due to aggressive merger activities, leading to payment failures for transactions completed in May. The group has communicated to South Korean financial authorities its intention to secure additional funds by August to mitigate the payment issues.
The Financial Services Commission and the Financial Supervisory Service have publicly urged Qoo10 to adopt a responsible approach to resolving the payment delays, emphasizing the need for a detailed fundraising plan. The authorities are yet to receive a comprehensive strategy from Qoo10 on how it intends to secure the necessary funding.
Further intensifying the situation, financial and antitrust regulators initiated joint on-site inspections at TMON and WeMakePrice last Thursday, investigating the extent of the payment delays which have reportedly impacted between 160 billion won and 170 billion won (US$115 million-US$122 million) worth of transactions. These delays pose significant risks to the industry, particularly affecting the 60,000 small merchants and self-employed individuals who rely on these platforms for their livelihoods.