MyCloudFulfillment nets US$2M funding to piggyback on Thailand’s fast-growing e-commerce market
MyCloudFulfillment (MCF), an e-commerce fulfilment company based in Thailand, has announced that it has closed a US$2 million Series A round of financing from local PE firm ECG-Research, Gobi Partners, Bangkok-based NVest Venture, and SCB 10X, a holding company of Siam Commercial Bank.
The investment will help MCF broaden its product development, build data-centric organisation and leverage collected data to help fuel e-commerce growth in the home market.
MCF 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 (online to offline) and make the best decision on promotion campaigns and sales channel optimisation.
In addition, its Inventory Management analytics can help suggest customers what stock keeping units (SKUs) to stock more or stock less and at what level. This helps customers save a lot of opportunity cost from over-stocking or under-stocking their products.
MCF’s Fulfilment Management analytics helps customers keep up with fulfilment movement, which means they can see statistics throughout the process — from receiving order to shipping out the products. This also shows level of profitability of each order, which we can use to help improve customer’s bottom line.
MCF claims that it recently passed milestones of over 100,000 SKUs in storage, over 50,000 of maximum daily orders, and over THB 500 million (US$16 million) worth of transactions during H1, 2020.
Nithi Satchatippavarn, MD and Co-founder of MyCloudFulfillment, said: “Thailand e-commerce market is currently in a sweet spot. Thai people spend almost as much as Indonesians on e-commerce transactions but Thailand is much more under-penetrated. Therefore, there are big opportunities for Thailand e-commerce market to grow further relative to other countries with similar or higher purchasing power.”
The global e-commerce market has been growing significantly. According to Statista, the value of the e-commerce market worldwide is projected to reach THB 75 trillion (US$240 billion) by the end of 2020, reflecting 26 per cent increase from 2019, while the number of e-commerce users is projected to reach 3,468 million users, a 9.6 per cent increase from last year.
Asia is the largest market, accounting for 61.5 per cent of worldwide users with Southeast Asia as the key growth driver. Statista forecast also shows that Southeast Asia will see 44 per cent growth in e-commerce transaction value from 2019.
Looking at the purchasing power in Southeast Asia, the country with the highest potential is Indonesia with average revenue per user of US$219 per user per year, followed by Thailand with average revenue per user of US$215.67 per user per year.
However, Thailand still has significantly lower e-commerce penetration rate relative to Indonesia. Therefore, the local e-commerce market still has large room to grow.
The e-commerce industry has changed significantly due to gradual adoption of Big Data and the COVID-19 pandemic, resulting in the new future with ‘Data Commerce’.