E-commerce in Southeast Asia grew rapidly during the pandemic, and that momentum continues. A report by McKinsey found that between now and 2026, the market is expected to triple at a compound growth rate of 22%, hitting $230 billion in gross sales volume. Unsurprisingly, global brands are eager to enter Southeast Asia. E-commerce enablement platform email helping them build, manage and scale their e-commerce operations.
Founded in 2020 and based in the Philippines, it announced today that it has raised $17.8 million in Series A funding. The round was led by SKS Capital, a Chinese and Taiwanese private equity firm, and Singapore’s Pavilion Capital. SBI ICCP, a joint venture between ICCP Venture Partners of the Philippines and Japan’s SBI Holdings (formerly SoftBank Investments) and Kaya Founders also participated, along with the Magsaysay family, Chan family, Foxmont Capital and JGDEV, the corporate venture arm of JG Summit Holdings.
Etaily’s ecosystem includes end-to-end solutions for e-commerce and omnichannel global brands, along with its own portfolio of brands. The startup has about 50 global clients, including Levi’s, Crocs, Reckitt and Skechers who use it to develop lifestyle products, manage sales on platforms such as Lazada and Shopee and brand.com, and fulfilling orders through etaily’s asset-light warehouse network. So far, it has processed more than 10 million orders, and expects to reach gross sales of $40 million this year, with a target of $100 million by 2025.
Before founding etaily, CEO Alexander Friedhoff had a long career in retail, starting with the German shirt brand van Laack. There, his roles included product development and development in Vietnam, and business development and e-commerce implementation in countries such as Australia and Germany. After van Laack, Friedhoff worked at the Southeast Asian e-commerce platform Zalora, where he founded Zalora’s Fulfillment program.
Friedhoff decided to launch etaily in the Philippines because “Southeast Asia is one of 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 has leading brands in six segments: fashion, consumer electronics, lifestyle, beauty, home and living, and fast moving consumer products. They sell on their own websites or on e-commerce platforms such as Lazada, Shopee and Zalora.
The value proposition etaily provides the brand centers around its managed services and technology. Managed services help brands grow by leveraging etaily’s economies of scale, because adding an incremental brand doesn’t add much overhead. It also helps brands on the demand side with customer data, etaily market knowledge, conversion optimization, demand forecasting and logistics.
Etaily monetizes by participating in sales made through its platform. It also has a subscription model, where customers pay a recurring fee for access to services such as etaily subscription-based software, and generate more money by advertising portfolios. its brand reflected in their platforms and content.
In terms of competition, Friedhoff named three companies: Anymind in Japan, Intrepid Ascential and OnPoint Vietnam. Etaily also competes with regional e-commerce enablers. Etaily’s competitive advantage is the way its operating platform is designed, and the ability to capture more of the value chain, Friedhoff said. Its omnichannel capabilities enable offline point-of-sale integration in the supply chain, which means that global consumer brands that want to enter the Philippines only need etaily as a partner, instead of looking for a brick-and-mortar one. and mortar sales.
Another advantage is the amount of data generated by scaling different e-commerce brands. This gives them multiple data points about consumer behavior, channels, demand and traffic, which can help brands in their launch.
Etaily’s vertically integrated services include selling its own brands and luxury 3rd party brands in more than 200 storefronts it operates on e-commerce platforms and standalone websites. Most of them are powered by Clarity, etaily’s end-to-end e-commerce technology and operating ecosystem, which includes fully integrated trading, marketing modules, real-time business intelligence data, payment, courier, fulfillment and services. to the customer. The company also offers product development services based on its consumer and market data, and digital brand creation and content creation through Etaily Studios.
Etaily will use its Series A to expand in Southeast Asia, particularly in Malaysia, Indonesia, Singapore and the Philippines, work on its distribution platform for brands and expand its portfolio of brands (including in -house brand). It also plans to invest in its proprietary tech, including an operating system, data analytics and Clarity.
In a statement, SKS Capital founder Jack Chen said, “Etaily’s asset-light strategy, with their extensive knowledge of e-commerce, supply chain and their use of data-driven insights to understand the consumer behavior and needs, offers significant prospects for incorporating advanced omnichannel technology solutions into brand operations. This will enable substantial growth in the future.”