🛍️ From e-commerce giant to defaulting $152M payments

How Qoo10 lost everything after acquiring too many companies

Author

Admond Lee
March 02, 2025

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Hey Founders,

Welcome to The Runway Ventures — a weekly newsletter where I deep dive into failed startup stories to help you become the top 1% founder by learning from their mistakes with actionable insights.

Over the years, I’ve studied countless startup failures — why they failed, the costly mistakes founders made, and what could have saved them. I’ve seen the patterns, the pitfalls, and the missed opportunities.

I’ve also received tons of requests from founders asking for advice on how to avoid these mistakes — how to validate ideas, build MVPs, raise funds, find PMF, and scale. While I’d love to help everyone, my time is limited.

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Building a startup is hard. The wrong moves can set you back months — or kill your company entirely.

If you're stuck and need clarity, book a call and let’s get you unstuck.

Today’s story is about how a dominant e-commerce company in Asia failed because it bites off more than it can chew. Let’s get to it! 🚀

Today at a Glance:

  • ☠️ 1 Failed Startup → Qoo10

  • ⚠️ 2 Mistakes → Over-aggressive acquisition spree

  • 🧠 3 Lessons Learned → Focus on sustainable & organic growth

  • 🔗 The Runway Insights → Startup Playbook by Sam Altman

    • Took me 15 mins to read the Startup Playbook but it was the best 15 mins I’ve ever spent. If you’re building a startup, read this bible now.

  • 💰 Southeast Asia Funding Radar → GajiGesa, an Indonesian earned wage access platform, to be acquired by Kredivo Group

☠️ 1 Failed Startup: Qoo10

🚀 The Rise of Qoo10

🇸🇬 Founded by Ku Young Bae (a South Korean entrepreneur) in 2010, Qoo10 was a joint venture between Ku and eBay (formerly known as Giosis) as an e-commerce platform (similar to Shopee and Lazada) in Asia.

🕺🏻 More about the founder:

Ku once worked as a field engineer in the deserts of the Middle East and decided to dive into the world of e-commerce. But Ku wasn't new to the e-commerce game. He'd already founded GMarket back in 2000 (a Korean leading e-commerce company) before selling GMarket to eBay in 2009 for $1.2 billion. 🤯

But Qoo10? This was his chance to go big across Southeast Asia.

  • The Problem — 🛍️ Back in the early 2010s, many SMEs in Southeast Asia struggled to find a reliable online platform to sell their products.

  • The Solution — 🤑 Qoo10 provided SMEs with the tools and support they needed to thrive online by offering localised platforms tailored to each country's unique market dynamics, including:

    • Easy-to-use interfaces

    • Secure payment systems

    • Effective logistics solutions

🌏 In short, Qoo10 connected SMEs and merchants with eager online shoppers across Asia.

🚀 And boy, did it take off!

By 2012, Qoo10 had expanded to South Korea, and by 2013, they were in Singapore, Indonesia, Malaysia, and Hong Kong.

Qoo10 became a household name in countries like Singapore and South Korea.

The traction was insane as it attracted millions of users, boasting a vast array of products from fashion to electronics.

🛍️ At its peak, Qoo10 went on a shopping spree by acquiring companies for expansion:

It seemed like Qoo10 was unstoppable.

Spoiler alert: it wasn't.

📉 The Fall of Qoo10

💸 However, this rapid expansion came at a cost. The aggressive acquisition strategy strained the company's finances.

😡 In mid-2024, signs of trouble emerged when Qoo10's South Korean subsidiaries, TMON and WeMakePrice, failed to disburse payments to sellers (up to ~$152 million), leading to massive complaints and an exodus of traders from the platforms.

The liquidity crisis deepened, triggering investigations by South Korean authorities.

📌 Here’s what happened to Qoo10:

❝

I will sell or use my entire stake in Qoo10, which is most of my assets, as collateral and use it to resolve this situation.

— shared by Ku (Founder & CEO of Qoo10) in his statement

🛍️ The Shopping Spree

  • 2010 — Giosis Pte. Ltd., a joint venture between Ku Young Bae and eBay, was established to further develop the Singapore and Japan marketplaces and expand in the region.

  • 2011 — Expand, expand, expand…

    • Mar — Gmarket Indonesia launched.

      • Qxpress was founded by Ku as the logistics arm of Qoo10 but operated as an independent logistics company.

    • Apr — Gmarket Malaysia launched.

    • Sep — Gmarket Global marketplace launched.

  • Apr 2012 — 🔥 Gmarket rebranded as Qoo10.

  • Jan 2013 — Qoo10 China launched.

  • Jul 2015 — Money, money, money…

    • 💰 Qoo10 raised $82.1 million in Series A funding from investors including Singapore Press Holdings, eBay, Oak Investment Partners, Saban Capital Group, Brookside Capital, and UVM 2 Venture Investments.

    • The funds were intended to accelerate Qoo10's technology growth and service development, while investing in additional infrastructure and talent acquisition.

  • Sep 2016 — Qoo10 established its own logistics company.

  • Apr 2018 — eBay finalized the purchase of Giosis' Japan assets, including Qoo10.jp, which continued to operate separately from other Qoo10 platforms.

    • At the same time, eBay gave up its shares in Giosis' non-Japanese businesses, which were transferred to the newly formed parent company, Qoo10 Pte. Ltd.

  • Oct 2019 — 🛍️ Acquired ShopClues (an Indian online marketplace) for $50-$80 million.

  • Aug 2022 — 🛍️ Acquired TMON (stock swap deal + cash)

  • Aug 2023 — 🛍️ Acquired WeMakePrice (South Korea’s online shopping site)

  • Feb 2024 — 🛍️ Acquired Wish (a US e-commerce platform) for $173 million from Nasdaq-listed ContextLogic Inc.

    • The acquisition will bolster Qoo10's global supply chain amid growing threats from Chinese rivals such as AliExpress and Temu, rapidly penetrating South Korea with a diverse assortment of products at ultra-low prices.

🤦🏻‍♂️ Aggressive Acquisition Backfired

  • 2024 — 😵 Aggressive shopping spree killed the company

    • Apr-Aug — 🚨 The Monetary Authority of Singapore (MAS) received several complaints from Qoo10’s merchants for delays in processing payments.

    • Jul — Qoo10's South Korean operations faced financial instability, with reports of defaulted payments (by Qoo10’s subsidiaries — TMON and WeMakePrice) to local merchants and consumers (up to ~$152 million).

      • This prompted South Korean financial authorities to launch a probe.

      • Ku apologised and said Qoo10 would secure emergency liquidity by drawing on overseas funds by disposing of assets and stakes or using them as collateral.

    • Aug — 🪓 Qoo10 reportedly cut over 80% of its employees in Singapore amid financial struggles (shopping spree → firing spree).

    • Sep — ⚠️⚠️ The MAS ordered Qoo10 to suspend payment services in Singapore due to excessive unfulfilled orders and payment obligations to merchants and customers.

    • 1 Oct — Suddenly, all of Qoo10’s board of directors resigned except Ku.

      • Word of the street suspected the company might be involved in corporate wrongdoing.

      • According to Korea Culture Promotion (KCP), South Korean authorities were investigating Qoo10, its founder and CEO Ku Young-bae, along with TMON and WeMakePrice, over allegations of fund misappropriation, fraud, and embezzlement totalling approximately 1.4 trillion won.

    • 11 Nov — ☠️ The Singapore High Court ordered the winding-up of Qoo10 after finding the company to be insolvent.

📈📉 After 14 years of operation, Qoo10’s rapid growth in e-commerce was followed by a sharp decline. Its aggressive expansion and acquisitions led to financial problems, and a liquidity crisis in its South Korean branches triggered its collapse.

Once a major player in Southeast Asia’s e-commerce scene, it struggled to compete with regional giants like Shopee, Lazada, and newer entrants like Temu, who dominated the market with lower prices, faster deliveries, and superior logistics.

By late 2024, Qoo10 faced insolvency and was liquidated.

Want to learn more about Qoo10’s downfall?

⚠️ 2 Mistakes

Ku Young-bae(Founder & CEO of Qoo10) attended a parliamentary questioning on payment delays involving TMON and WeMakePrice, two e-commerce platforms owned by the Singapore-based Qoo10, on 30 July 2024.

Mistake 1: Over-aggressive acquisition spree

Qoo10’s rapid-fire approach to growth was like trying to sprint a marathon.

🛍️ The company went on a shopping spree — acquiring ShopClues, TMON, WeMakePrice, and even Wish — without ensuring these moves could be seamlessly integrated. Instead of strengthening its core business, this relentless expansion drained finances and created management chaos.

Imagine trying to juggle multiple startups at once without a safety net. That’s what happened when the aggressive acquisition strategy turned from a boost to a burden.

Mistake 2: Underestimated local competition & market nuances

Shopee ad with Cristiano Ronaldo 😂

🩸 While Qoo10 did tailor platforms for different countries, it underestimated the fierce local competitors like Shopee, Lazada, and the nimble Temu. These rivals not only offered lower prices and faster deliveries but also honed in on the specific behaviours of Asian consumers.

Qoo10’s one-size-fits-all expansion — powered by big acquisitions rather than deep local insight — meant it struggled to keep pace with rivals who were more agile and intimately connected with their markets.

💪🏻 For example, one thing I really like about Shopee is that they have a ShopeeXperts Programme to train Shopee’s own certified trainers. This is by far, in my opinion, one of the most effective GTM and expansion strategies in local markets (i.e. Malaysia) as Shopee could leverage local knowledge and network of its certified trainers to attract, onboard and train more online sellers to sell on Shopee.

🧠 3 Lessons Learned

Lesson 1: Focus on sustainable & organic growth

Qoo10’s business model initially worked because it provided localised tools, secure payments, and effective logistics. However, the model crumbled under the weight of rapid acquisitions that diluted its focus.

🌮 Key Takeaways:

  • 🏃🏻‍♂️ Growth is a marathon, not a sprint

    • Qoo10 initially nailed its localised strategy, creating value by addressing the unique needs of its regional customers.

    • However, by chasing rapid expansion through multiple acquisitions, it lost the focus on perfecting its core model.

  • 💪🏻 Strengthen your financial backbone

    • Use organic growth as a way to build a steady revenue stream and operational efficiency.

    • Rather than quickly acquiring other platforms, invest in technology and talent that improve your service quality.

  • 🤝🏻 Local team & partnerships

    • Build a strong local team that knows the market’s quirks.

    • Forge partnerships with regional logistics companies and financial institutions to ensure you’re not outpaced by competitors who are nimbler and more tuned-in to local trends.

Lesson 2: Understand and adapt to local competition

In Asia, where consumer expectations can vary dramatically from one country to another, a localized strategy goes beyond language translation.

Qoo10’s failure to dynamically adjust its offerings in response to competitors’ innovations, such as Temu’s ultra-fast delivery systems, meant that it lost ground quickly.

🌮 Key Takeaways:

  • 🧐 Conduct deep competitor analysis

    • Regularly monitor competitors’ platforms and marketing strategies. Create a “competitive intelligence report” for each target market.

    • In Singapore, while Qoo10 offered a localized interface, competitors like Shopee were quick to introduce mobile-first designs, integrated local payment options, and speedy delivery services.

    • Founders can use tools like user reviews and social media sentiment to spot gaps and opportunities.

  • 🌏 Build hyper-local strategies

    • Form local teams that understand regional nuances. Leverage local partnerships with trusted logistics providers and payment gateways that cater to the specific needs of that market.

    • In Indonesia, where mobile usage is skyrocketing and local payment methods like e-wallets are favoured, a competitor like Lazada has built a seamless mobile experience with localized payment integrations.

    • Qoo10, by contrast, tried to mirror a uniform strategy across markets, which left them lagging in areas where competitors had optimised every detail.

Lesson 3: Cash is king, but cash flow is emperor

In the e-commerce world, managing cash flow is crucial, especially when dealing with rapid expansion and multiple markets.

When Qoo10’s South Korean subsidiaries like TMON and WeMakePrice defaulted on ~$152 million in payments, it wasn’t just a hiccup — it was a clear signal that financial discipline was lacking. For startups in Asia, establishing transparent financial systems and contingency plans isn’t optional, it’s essential to build and maintain trust with merchants and consumers alike.

🌮 Key Takeaways:

  • 🙏🏻 Create a contingency fund

    • Always earmark a percentage of your revenue as a reserve. This fund acts as a buffer for unexpected expenses or downturns in the market.

    • When Qoo10’s aggressive acquisition strategy led to unexpected liabilities, the absence of a healthy reserve forced the founder to risk all his assets.

    • In contrast, a well-managed startup in Asia might keep a reserve equal to 3–6 months of operating expenses to weather any financial storm.

  • ✅ Regular financial audits & transparent reporting

    • Conduct quarterly audits and establish clear reporting channels. This not only prevents mismanagement but also reassures investors and partners about the health of your finances.

    • Competitors like Lazada are known for maintaining rigorous financial practices. Their ability to promptly adjust budgets and allocate funds efficiently is a key reason why they can invest in infrastructure and marketing without facing similar liquidity issues.

🔗 The Runway Insights

  • Startup Playbook by Sam Altman (Link)

  • How to raise capital in a tough market (Link)

  • An operator’s guide to product strategy (Link)

  • 10 productivity tips for new entrepreneurs (Link)

  • A 10 point checklist to use when you sell your company (Link)

  • PostHog: 50 things we’ve learned about building successful products (Link)

💰 Southeast Asia Funding Radar

  • GajiGesa, an Indonesian earned wage access platform, to be acquired by Kredivo Group (Link)

  • Spyne raises $16M (Series A) to help automobile businesses create high-quality product visuals with AI (Link)

  • Techcoop, a Vietnam-based agritech platform, raises $70M (Series A) co-led by TNB Aura and AVV (Link)

  • Lorien Finance bags $2.25M (Pre-Series A) to expand student loan access in India (Link)

  • Bumame raises an undisclosed sum (Pre-Series A) led by Apha JWC Ventures to accelerate its healthcare offerings (Link)

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  1. Founder Office Hours: Book a 1-1 call with me, share your problems and questions, and I'll help you cut through the noise, avoid costly mistakes, and get clear next steps that actually work. I help early-stage founders with:

    • Validating ideas & building MVPs

    • Tech & product development

    • GTM strategy & fundraising

    • Finding PMF & growth hacks

    • Growing & monetising newsletters

    • Attract customers & investors by building a solid founder brand on LinkedIn

  2. Promote your business to 18,000+ founders: Acquire high-value leads and customers for your business by getting your brand in front of highly engaged startup founders and operators in Asia.

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That’s all for today

Thanks for reading. I hope you enjoyed today's issue. More than that, I hope you’ve learned some actionable tips to build and grow your business.

You can always write to me by simply replying to this newsletter and we can chat.

See you again next week.

- Admond

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