Thai e-commerce fulfilment company MyCloudFulfillment has completed its US$7.4M Series B round of financing from JWD Group (a logistics and supply chain services across ASEAN) and SCB 10X (a holding company of Siam Commercial Bank).
The Bangkok-headquartered startup will use the new capital to improve its warehouse and service capability, expand the management and software development team, and expand its service to neighbouring countries.
The new round comes a year after it closed its US$2 million Series A round from ECG-Research, Gobi Partners, Bangkok-based NVest Venture, and SCB 10X.
MyCloudFulfillment provides storage, packing and shipping services with sales channel integration and data analytics for e-commerce firms. Its order management analytics helps customers manage orders from multiple channels and make the best decision on promotion campaigns and sales channel optimisation.
In addition, its inventory management analytics can help suggest to customers what stock-keeping units (SKUs) to stock more or less and at what level. This allows customers to save a lot of opportunity costs from over-stocking or under-stocking their products.
Its fulfilment management analytics helps customers keep up with fulfilment movement, which means they can see statistics throughout the process — from receiving the order to shipping out the products.
JWD is a major logistics company in the Thailand stock market, and SCB is very proactive in transforming its service for e-commerce.
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“MyCloudFulfillment will take responsibility in warehouse management systems, order management systems and operation, while JWD will take charge of CAPEX investment and infrastructure. JWD strength and expertise in traditional logistics will help us speed up our new warehouse setup and expansion,” he added.
“In contrast, we help JWD services with full-scale order fulfilment to its clients and turn around its warehouses right away. Moreover, we can combine SCB 10X financial tools with our order management system to help our clients manage their shops and payments easier than it has ever been,” he elaborated.
SCB 10X chief venture and investment officer Mukaya (Tai) Panich said: ” Due to COVID-19, we are seeing accelerated adoption of digital lifestyle by consumers and digital transformation by corporates. We have seen the rapid rise of social commerce and e-commerce in Southeast Asia in the past two years as more people go online. Startups that enable social commerce and e-commerce like fulfilment and logistics firms will continue to benefit significantly. MyCloudFulfillment is the key critical enabler of today’s social commerce and e-commerce trends.”
During the first half of 2021, MyCloudFulfillment recorded an avarge of 300,000 orders per month. The company also added a new warehouse in Min Buri with more than 6,500 square meters of space. It is set to fulfil up to 30,000 orders at a maximum per day.
The firm already has two warehouses in Ladkrabang and Rangsit, with 10,000 square meters of space in total.
“We see room for growth in the e-commerce market. It keeps growing as we move. Asia’s current e-commerce market is valued at US$45 trillion, which is bigger than the e-commerce values of other regions combined. More importantly, Southeast Asia shows the highest growth rate in the region at 44.2 per cent,” shared Satchatippavarn.
For Thailand, the market value in 2020 was recorded at 228,000 million Baht (42 per cent increase from 2019) and is expected to soar to 280,000 million Baht in 2021, or 22 per cent higher.
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“The COVID-19 pandemic may improve, and people are returning to their daily life, but online shopping will still keep growing. It is predicted to grow even bigger. What is interesting is that a Thai spends 7,290 Baht per year on online shopping. This places us on the second-highest only after Indonesia, for average consumption per user in Southeast Asia. With all these factors, I am certainly confident that there are many opportunities for Thai e-commerce. Our economic recovery may be slower than other countries, but our e-commerce is thriving, and the future of commerce here is looking bright,” he concluded.
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Image Credit: MyCloudFulfillment
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