aCommerce Secures One of the Largest Series A Round of $10.7M.
A Thailand-based regional end-to-end e-commerce logistics and service providers for a Southeast Asia, aCommerce, has recently secured a Series A funding round of up to $10.7 million. According to the company, this is one the largest Series A for a Thailand-based startup and one of the largest Series A rounds in Southeast Asia to date.
This recent round of funding arranged by found investor Ardent Capital, and led by Inspire Ventures, A Bangkok-based firm, with participation from NTT DOCOMO, Sumitomo Corporation Equity Asia Limited , Sinar Mas Indonesia, Asia Pacific Digital , Cyberagent Ventures, and JL Capital, as well as angel investors and executive staff.
Regional CEO of aCommerce, Paul Srivorakul, explains the logistics in Southeast Asia in challenging for vendors because the market is extremely diverse with multiple distribution channels. Low credit car penetration also means customers with up to 90% of local markets prefer the cash-on-delivery payments.
“Southeast Asia is made up of many different countries, laws, languages, currencies, and complicated geographically, like the Philippines and Indonesia islands. We make it easy for brands and retailers to sell online by providing ‘turnkey’ end-to-end e-commerce services and products across the region, from customs, web development, and digital marketing to local language customer service support, payments, fulfillment, and collection-on-delivery,” he says.
“We also help brands acquire and manage the end customer and provide them with deep data/analytics across the entire customer experience and touch point, i.e. tracking everything from content/marketing all the way to packing orders and collecting payment/delivery.”
Initially founded during June 2013, aCommerce has over four offices with fulfillment centers and a total of 250 employees located in Thailand, Singapore, Indonesia, and the Philippines.
This recent Series A funding shall allow aCommerce to expand its logistics infrastructure, delivery fleet, technology platform, and channel management in each of its current markets and search for partnerships with other logistics and e-commerce companies.
aCommerce will also invest into customs clearance FDA certification, and local business operating licenses for international companies that want to making it into the Southeast Asia market, The company has already providing services for brands like cosmetics conglomerate L’Oreal, HP, Line Chat, and Groupon.
Despite its internet penetration being around 25% in Southeast Asia and mobile penetration being as high as 40% in certain markets, e-commerce is still lesser than 1% of the total retail market, he stated, while advertising is roughly 3% of total advert spending, or $18 billion across the Southeast Asia region. The Southeast Asian e-commerce market is said to be worth a total of $4.5 billion in 2014 and shall grow up to around $6 billion during 2015, Srivorakul states.