Shares of the leading KOL-driven online fashion and lifestyle destination in China, MOGU Inc. (MOGU) were up 31.07% at $1.35 as of the last after-hours check. MOGU stock closed the regular session at $1.03, down -10.43% or $0.12. MOGU stock made a swing from $1.03 to $1.137 during the session. Stock of MOGU exchanged hands on the day for 0.25 million, more than 0.2 million shares transacted on a daily basis over the past 50 days, but less than the daily average of 0.38 million shares the company has traded so far this year.
MOGU stock has advanced -55.02% over the past year and has fallen -21.97% over the last week. The MOGU stock has lost a total of -59.13% over the last six months and has decreased by -40.46% over the last three months. The return on MOGU stock so far this year is -52.53%. MOGU stock rose on news that it was acquiring a controlling stake in a company.
Which company is MOGU acquiring stakes in?
MOGU is one of China’s most popular KOL-driven fashion and lifestyle sites. The MOGU platform provides people with an easy and enjoyable way to shop for everyday fashion, especially as more and more people lead online-based lives. Mogu’s platform serves as a marketing channel for merchants and an incubator for KOLs by connecting merchants, KOLs, and users. Additionally, MOGU stock is one of the most vibrant and active online communities for people to discover and share the latest fashion trends, allowing users to experience a truly comprehensive level of online shopping.
MOGU announced that its affiliate company, Hangzhou Juangua Network Co., Ltd. (“Hangzhou Juangua”), has reached definitive agreements to increase and acquire controlling equity interests in Hangzhou Ruisha Technology Co., Ltd. (“Hangzhou Ruisha”).
- MOGU’s Hangzhou Juangua has signed the agreement with Hangzhou Ruisha as well as its existing shareholder and founder.
- In the definitive agreements, MOGU affiliates will purchase equity interests from Hangzhou Ruisha’s existing shareholder and subscribe for additional equity interests in Hangzhou Ruisha for an aggregate cash consideration of RMB50 million.
- The closing of the transactions will result in MOGU stock owning 59.62% of Hangzhou Ruisha.
- MOGU’s closing of the transactions is subject to customary conditions.
- Besides offering a wide variety of operational services, data platforms, and other software services, Chinese company Hangzhou Ruisha also provides value-added services, such as traffic placement, to help brands operate in full domains.
How will MOGU Stock benefit from the current move?
With its investment in Hangzhou Ruisha, MOGU stock is utilizing and expanding its business customer service capabilities. Brands with limited technical and operational experience are increasingly choosing Hangzhou Ruisha’s solutions to take advantage of online growth. Introducing live video broadcast e-commerce into MOGU’s ecosystem is a significant step in the company’s development.
