AuMake has pounced on Kiwi Buy, where preliminary financial due diligence indicates sales of $18 million over the last 12 months.
Kiwi Buy has been operating since 2014 with five retail stores in Sydney.
Two stores are located in the Chinese tourist centric CBD, being at World Square and Haymarket, with the other three in the densely daigou populated areas of Kingsford, Chatswood and Ultimo.
Terms of the deal include $300,000 in ordinary shares of AuMake at $0.25, and reimbursement up to $500,000 of inventory subject to stock-take.
AuMake connects Australian suppliers directly with daigou and Chinese tourists.
Daigou literally translated means "buying on behalf of".
Rationale of the deal
AuMake has identified opportunities to improve the gross margin performance of Kiwi Buy through the implementation of AuMake processes to increase sales of higher margin products, including its own brands.
The acquisition also enhances AuMake’s online capability due to the addition of Kiwi Buy’s 38,000-member database.