Alexander Friedhoff, founder of Etaily
The Southeast Asian e-commerce market represents a huge opportunity for international brands: annual sales are expected to reach $230 billion by 2026. But the sector can also be intimidating: brands need help to navigate local nuances, from product certification to agreements with fulfillment partners, whether reselling through platforms or directly to consumers.
The e-commerce specialist is now presenting itself as the catalyst that can help businesses overcome these anxieties – and investors are backing its vision. The company today announces that it has completed a $17.75 million Series A funding round as it targets annual revenue of $100 million by 2025.
That would be a meteoric rise for a company founded only in 2020. But etaily’s has already brought on board a string of big names, including Crocs, Levi’s, Skechers and Fila, all of whom see it as a shortcut to success in Southeast Asia.
“Many brands want to break into this market,” says Alexander Friedhoff, German founder and CEO of etaily. “But while they note the region’s rapid growth of the middle class, its very large number of young consumers and its high level of Internet penetration, they also recognize the challenges of accessing a number of markets different, each with its own characteristics. .”
Friedhoff therefore launched etaily as an engine that could drive the e-commerce growth of these brands in Southeast Asia. The company has developed its own proprietary technology, through which it provides what Friedhoff describes as an “end-to-end e-commerce solution.”
In practical terms, this means that etaily can help brands do everything from growing their online presence in the region to distributing their products once sales are made. The solution can be installed on both third-party e-commerce platforms and brand e-commerce sites; it can also be linked to brands’ offline retail operations – so inventory can be delivered from stores, for example.
The idea is to make it simple to launch and manage an e-commerce site in Southeast Asia. Friedhoff explains: “Our ecosystem covers the entire customer journey, from lifestyle product development through internal branding capabilities to delivery to a local and regional customer base from the light warehouse network from Etaily.
It’s a value proposition that has quickly gained traction. The company turned over just £200,000 in its first year, but Friedhoff says it is on track to exceed $30 million in its final trading period.
A major factor in success so far has been the profile of Etaily’s investors, many of whom have been able to introduce it to the brands it wishes to attract. “Our capital table has been huge for us,” Friedhoff says. “We already count four of the region’s largest conglomerates among our investors.”
The company’s Series A round is expected to provide further such support. “It’s not just about raising money,” adds Friedhoff. “We also bring in investors who can help us grow.”
The financing is led by Chinese and Taiwanese private equity firm SKS Capital and Singapore-based Pavilion Capital. It also features the Magsaysay family, Gokongwei Investment, Kaya Founders, Japanese fund SBI ICCP, the Chan family and Foxmont Capital.
These investors join existing backers such as the Philippines’ oldest conglomerate, Ayala Corporation, which owns mall operator Ayala Malls, consumer goods maker Century Pacific, department store chain Landmark Philippines and a certain number of angel investors with experience in the e-commerce sector.
etaily is headquartered in the Philippines, where the economy is now expected to be the fastest growing in the region this year, according to the World Bank. For Southeast Asia as a whole, consultant Bain & Co predicts that the number of digital consumers will increase from 370 million today to 402 million by 2027; it selects the Philippines, Vietnam and Thailand as the fastest growing e-commerce markets.
Jack Chen, founder of SKS, believes Etaily is well-positioned to capitalize on these trends. Deals “offers significant prospects for integrating advanced omnichannel technology solutions into brand operations,” says Chan. “This will enable substantial growth in the near future. »