Lim family-owned Sterling group of companies has acquired 85 percent of IT provider Openovate Labs and e-commerce platform Galleon.ph, joining a growing number of conglomerates entering the digital space.
“We have seen great potentials in Openovate because of its capabilities in software and apps development and some of them are mature enough to give existing apps a good competition,” Henry Lim Bon Liong, chair and chief executive officer of Sterling Group, said in an interview with Inquirer.
Galleon.ph, on the other hand, specializes in selling goods that are not available in the Philippines. It is among the top 10 e-commerce sites in the Philippines with 240,000 unique visitors per month.
“They have a niche market of consumers who would like to purchase something that Lazada and Zalora cannot provide, thus, Galleon can be the catalyst for their desired dream purchase,” Lim said.
The 70-year-old Sterling group started as a maker of photo albums and stationery but is now in a wide range of other businesses that include school and office supplies production and distribution, retailing, real estate, agri-business and importation of office furniture and other school and office supplies.
Sterling Group first ventured into e-commerce as early as 1998 by setting up Staples King.com which sold school and office supplies online. This was discontinued after two years because smartphones were not yet common during that time and there wasn’t enough revenues to sustain operations. “But had we continued to endure, who knows, we may already be the Alibaba of the Philippines,” Lim said.
Last year, Lim said the group revived the digital initiative by establishing shopcentral.com. However, he said the fastest way to grow would be to do a merger and acquisition. “We may eventually merge Shop Central with Galleon in the future to cut down on operating cost,” he added.
“Sterling recognized that now is the time to invest in tech because it’s the future,” Michelle Lim-Gankee, who proposed the acquisition to her father, Henry, said in a separate interview. She will act as chief operating officer for Sterling Group’s technology initiatives.
When her dad appeared in TV show The Final Pitch as an investor, Gankee noted there were start-up firms that started pitching directly to Sterling. This gave her the idea to invest in an established tech company, she said.
Christian Blanquera, chief executive officer and chief technology officer of Openovate Labs, will keep 15 percent of the company. In Galleon.ph, Blanquera and co-founder Jeffrey Siy will keep a combined 15 percent stake.