IME Group has bought the eCommerce platform Sastodeal after acquiring the majority of shares in the company. The business house plans to start operation from Shrawan, in 2081 officially. Here, we are not just seeing the currently shut-down shopping site come alive, but also a challenge to the competitors in the industry.
The shopping platform went down in 2023 after failing to address its financial and commercial challenges. The founder and CEO Amun Thapa’s resignation effectively put the company offline.
Although one of the top shopping sites in Nepal, the inability to realize the evolving market trend and the lack of resources forced the company to shut down.
However, the acquisition of IME Group could be a blessing in disguise for the ill-fated company.
It’s reported that IME Group bought 70% of shares in Sastodeal.com which is Dolma Impact Fund’s 60% of equity shares in the company reportedly worth Rs 30 crore. With this takeover, the group is aiming for an aggressive expansion in the eCommerce industry.
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IME Group buys Sastodeal, will rebrand and operate
IME Group plans to rebrand Sastodeal and start its second coming. The business house seeks to learn from the current market trend and spearhead its future businesses.
Sastodeal suffered in the face of stiff competition and ineffective management. Particularly, after Covid-19, the company couldn’t mount its presence to effect. Daraz, on the other hand, ran attractive campaigns to draw in customers. After Alibaba’s entry in Daraz, the regional eCommerce giant grew even more confident and has become the largest online shopping platform.
Sastodeal has been down and out for 8 months now. It was launched in 2011.
Sastodeal’s founder Amun Thapa still owns 10% shares in the company. Similarly, Ramesh Corp and NIMB Ace Capital have investments of Rs 2 crore and Rs 1 crore respectively in the company.
Major news for the online shopping industry in Nepal
It goes without saying that a major corporate house such as IME Group raises the prospects for Sastodeal. It will have the resources and expertise to operate the businesses as the market demands. Also, its businesses in hospitality, automotive, entertainment, energy, etc. could have a synergistic effect.
Sastodeal even inked a deal with the Indian platform Flipkart to bring Indian products to Nepal and introduce Nepal to India. However, it could never pan out as successful in the face of stiff contest domestically.
Daraz flourished because it took risks and brought offers putting revenues as a second priority. Large platforms, however, such as Sastodeal.com couldn’t afford that and slowly faded into the shadow. Hamro Patro has recently entered this ecommerce market with Hamro mart, whose fate is still too early to be analyzed.
Still, there are small-scale online shopping markets and it’s mainstream, however, on the top end, there is a clear Daraz dominance. IME Group’s acquisition could see the new light into this pioneering shopping platform.
What do you make of IME Group’s acquisition of Sastodeal.com? Will the business house be able to revive it successfully or even disrupt the eCommerce market in Nepal? Offer your honest opinion in the comment section below.
