Etaily is a “one stop solution” for consumer brands that want to enter Southeast Asia

E-commerce in Southeast Asia has seen rapid growth during the pandemic, and this momentum continues. A McKinsey Report found that between now and 2026, the market is expected to triple at a compound growth rate of 22%, reaching $230 billion in gross merchandise volume. It’s no surprise that global brands are eager to enter Southeast Asia. Ecommerce Enablement Platform etaily helps them build, manage and scale their e-commerce operations.

Founded in 2020 and based in the Philippines, etaily today announced 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 by Pavilion Capital of Singapore. SBI ICCP, a joint venture between ICCP Venture Partners in 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, in the corporate venture arm of JG Summit Holdings. .

Etaily’s ecosystem includes end-to-end solutions for global e-commerce and omnichannel brands, as well as its own portfolio of brands. The startup has around 50 global clients, including Levi’s, Crocs, Reckitt and Skechers, who use it to develop lifestyle products, manage sales on platforms such as Lazada, Shopee and brand.com, and fulfill orders via Etaily’s light warehouse network. So far, the company has processed more than 10 million orders and hopes to reach $40 million in gross revenue this year, with a goal of $100 million by 2025.

Before founding etaily, CEO Alexander Friedhoff had a long career in retail, starting with German shirt brand van Laack. There, his roles included manufacturing and product development in Vietnam, as well as business development and e-commerce implementation in countries including Australia and Germany. After van Laack, Friedhoff went to work at Southeast Asian e-commerce platform Zalora, where he built the Fulfillment by Zalora program.

Alexander Friedhoff, founder of Etaily

Friedhoff decided to launch 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 primarily works with brands in six segments: fashion, consumer electronics, lifestyle, beauty, home and living, and FMCG. They sell on their own websites or on e-commerce platforms like Lazada, Shopee and Zalora.

The etately value proposition gives brands centers around its managed services and technology. Managed services help brands grow using Etaily’s economies of scale because adding an additional brand doesn’t add much overhead. It also helps brands on the demand side with customer data, Etaily market insight, conversion optimization, demand forecasting and logistics.

Etaily monetizes by taking a portion of the sales generated through its platform. It also has a subscription model, in which customers pay recurring fees to access services such as Etaily’s subscription-based software, and generates more money from the advertising its portfolio brands display on their platforms and content.

In terms of competition, Friedhoff cites three companies: the Japanese Anymind, Intrepid Ascential and OnPoint Vietnam. Etaily also competes with regional e-commerce players. Etaily’s competitive advantage lies in the way its operational platform is designed and its ability to capture more of the value chain, Friedhoff said. Its omnichannel capabilities enable the integration of offline outlets into the supply chain, meaning global consumer brands looking to enter the Philippines only need a specific partner, instead of also find one for physical sales.

Another benefit is the amount of data generated daily by scaling different e-commerce brands. This gives them lots of data on consumer behavior, channels, demand and traffic, which helps brands when launching.

Etaily’s vertically integrated services include the sale of its own and third-party luxury brands through more than 200 storefronts that it operates on e-commerce platforms and standalone websites. Most of them leverage Clarity, etaily’s end-to-end e-commerce technology and operating ecosystem, which includes fully integrated trading and marketing modules, business intelligence data in real-time, payments, couriers, fulfillment services and customer service. The company also offers product development services based on its consumer and market data, as well as digital branding and content creation through Etaily Studios.

Etaily will use its Series A to expand in Southeast Asia, including Malaysia, Indonesia, Singapore and the Philippines, work on its brand distribution platform and expand its brand portfolio (including its own brands) . It also plans to invest in its proprietary technology, including an operating system, data analytics and Clarity.

In a statement, SKS Capital founder Jack Chen said: “Etaily’s asset-light strategy, along with its deep understanding of e-commerce, supply chain and its use of on data to understand consumer behavior and demand, offer significant perspectives for integration. advanced omnichannel technology solutions in brand operations. This will enable substantial growth in the future.