Chinese firm Mogu to acquire 59.62% equity interest in Hangzhou Ruisha

29 Jul '21

2 min read

Pic: Shutterstock

Chinese online fashion and lifestyle destination Mogu has announced that its consolidated affiliated entity Hangzhou Juangua Network has entered into definitive agreements to increase and obtain controlling equity interests in Hangzhou Ruisha Technology. Mogu will own 59.62 per cent equity interests in Hangzhou Ruisha at the closing of the transactions.

Under the definitive agreements, Hangzhou Juangua will purchase equity interests from the existing shareholder of Hangzhou Ruisha and subscribe for additional equity interests in Hangzhou Ruisha, at an aggregate consideration of ¥50 million (approximately $7.7 million) in cash. The transactions are subject to customary closing conditions.

Hangzhou Ruisha is committed to providing brands with one-stop and customised services for full-domain operations, including a wide variety of operational services, data platforms and other software services, as well as value-added services such as traffic placement, said in a press release.

Qi Chen, Mogu’s chairman and chief executive officer, commented, “The investment in Hangzhou Ruisha represents continuingly expanded and utilised capabilities of MOGU to provide services for business customers. Hangzhou Ruisha’s solutions are increasingly sought after by brands which would like to embrace online growth in spite of limited technical and operational experiences. This investment is an important step in Mogu’s development towards a more extensive ecosystem for live video broadcast e-commerce.”

Fibre2Fashion News Desk (KD)

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