Southeast Asian e-commerce has grown rapidly during the epidemic, and this momentum is continuing. McKinsey report The study found that the market is expected to triple at a compound growth rate of 22% between now and 2026, reaching a total merchandise volume of US$230 billion. Not surprisingly, global brands are eager to enter Southeast Asia. Newsletter Help them build, manage and scale e-commerce businesses.
Founded in 2020 and headquartered in the Philippines, the company announced today that it has raised $17.8 million in Series A funding. The round was led by Chinese and Taiwanese private equity firm SKS Capital and Singaporean Pavilion Capital. The Philippines’ ICCP Venture Partners and Japan’s SBI Holdings (formerly a SoftBank investment) and Kaya Founders are also involved, along with the Magsaysay family, the Chan family, Foxmont Capital and JGDEV, the corporate venture capital arm of JG Summit Holdings.
Etaily’s ecosystem includes end-to-end solutions for e-commerce and omnichannel global brands, as well as a portfolio of private brands. The startup has about 50 global customers, including Levi’s, Crocs, Reckitt and Skechers, who use it to develop lifestyle products, manage sales on platforms such as Lazada, Shopee, brand.com, and leverage etaily’s asset-light The warehousing network fulfills orders and has currently processed more than 10 million orders. Sales are expected to reach US$40 million this year and the goal is to reach US$100 million by 2025.
Before founding etaily, CEO Alexander Friedhoff had a long career in retail, starting with German shirt brand van Laack, where his responsibilities included manufacturing and product development in Vietnam, as well as business development and electronics in countries such as Australia and Germany. Business implementation. van Laack, Friedhoff went to work for Zalora, an e-commerce platform in Southeast Asia, where he established the Fulfillment by Zalora project.
Friedhoff decided to launch eweek in the Philippines because “Southeast Asia is among the fastest-growing consumer markets in the world. In fact, the Philippines is the fastest-growing e-commerce market in the world,” he told TechCrunch.
Etaily mainly cooperates with brands in six segments including fashion, consumer electronics, lifestyle, beauty, home life, and fast moving consumer goods. They sell on their own websites or e-commerce platforms such as Lazada, Shopee, and Zalora.
etaily’s value proposition for brands revolves around its managed services and technology. Managed services help brands grow by leveraging etaily’s economies of scale, as adding incremental brands doesn’t add significant overhead. It can also help with demand-side brand customer profiles, e-market knowledge, conversion optimization, demand forecasting and logistics.
Etaily earns money from a portion of the sales generated through its platform. It also has a subscription model, in which customers pay a recurring fee to access services such as etailly’s subscription-based software, and earns more revenue by displaying ads from its portfolio of brands on its platform.
In terms of competition, Friedhoff named three companies: Japan’s Anymind, Intrepid Ascential and OnPoint Vietnam. Etaily also competes with regional e-commerce enablers. Etaily’s competitive advantage lies in the way its operating platform is designed and its ability to capture more value chains. Friedhoff said that its omni-channel capabilities can achieve the integration of offline sales points in the supply chain, which means that global consumer brands that want to enter the Philippines only need You need Eteri as a partner, and there is no need to find another physical sales point.
Another advantage is that by scaling different e-commerce brands, a huge amount of data is generated every day, which provides them with a lot of data points on consumer behavior, pipeline, demand and traffic, which helps in the brand launch.
Etaily’s vertically integrated services include selling private label and luxury third-party brands across its more than 200 stores operating on e-commerce platforms and independent websites. Much of this is powered by Clarity, etailly’s end-to-end e-commerce technology and operations ecosystem, which includes fully integrated trade, marketing modules, real-time business intelligence data, payments, express delivery, fulfillment and customer service. The company also provides product development services based on consumer and market data, as well as digital branding and content creation through Atlee Studio.
Etaily will use the Series A financing to expand into the Southeast Asian market, especially Malaysia, Indonesia, Singapore and the Philippines, build a brand distribution platform and expand its brand portfolio (including private brands). Its proprietary technologies include operating systems, data analysis and clarity.
Jack Chen, founder of SKS Capital, said in a statement: “Etaily’s asset-light strategy, coupled with their extensive understanding of e-commerce, supply chain, and the use of data-driven insights to understand consumer behavior and needs, provide the perfect conditions for the merger. Broad prospects. “Integrate advanced omni-channel technology solutions into brand operations. This will enable substantial growth in the future. “