Date
15 December 2017
Fashion e-tailer Mydress has sold a controlling stake to SCMP Group. The fashion website hopes the SCMP readership base will boost platform’s ability to draw shoppers. Photo: Internet
Fashion e-tailer Mydress has sold a controlling stake to SCMP Group. The fashion website hopes the SCMP readership base will boost platform’s ability to draw shoppers. Photo: Internet

Quick money for Hong Kong startups

Building and selling new companies is sometimes the easiest way to make a quick buck when the sentiment is right.

When the stock market is hot, even not-so-good companies enjoy great demand for their initial public offerings.

The Hong Kong IPO market is lukewarm at the moment but the startups market seem to be getting a lot of attention and real money.

Cfu Come was incorporated only in July this year. Launched in late September, its app matches users with handymen for repair services or renovation work, much like the concept of Uber.

It has been downloaded 4,000 times and facilitated 400 transactions in the first month.

Not a remarkable number but that was enough to attract C Cheng Holdings (01486.HK) to pay HK$20 million (US$2.58 million) for an 80 percent stake.

Not bad at all for a half-year set-up that booked a HK$400,000 loss during the period.

In another transaction, SCMP Group (00583.HK) bought last month a controlling interest in e-tailer MyDress, a website focused on Korean and Taiwanese fashions.

The media group paid about HK$40 million for a 56.65 percent stake in this two-year operation that is yet to turn a profit.

Co-founder Edmund Wong expects the loss to continue in the next 18 months because of expensive marketing costs.

Startups are known for their uncertain prospects and high failure rate.

If someone is willing to pay you a large sum, which may take years to make (if ever), why not?

– Contact us at [email protected]

RA

EJ Insight writer

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