
Deal focus: Digital marketing piggybacks e-commerce boom

Malaysian digital marketing specialist Involve Asia is making hay as regional e-commerce shows no signs of slowing. Fresh VC support will guide inorganic expansion amidst erratically trendy user behaviour
Southeast Asia’s e-commerce market is set to grow more than 20% a year through 2026, when it will be worth USD 230bn in terms of gross merchandise volume, according to McKinsey & Company. Meanwhile, Statista estimates total digital advertising spend in the region will rise from USD 9.8bn in 2022 to USD 12.4bn in 2026.
The most successful operators in this backdrop focus on categories resilient to year-to-year fluctuations in discretionary spending capacity such as health, beauty, and fashion. They partner with trusted global brands like Lazada, Shopee, and Tokopedia, while tailoring discounts, coupons, and rewards to consumers’ needs.
This has been the game plan of Malaysia’s Involve Asia, a marketing platform that connects retailers with influencers, while managing a range of advertising, workflow automation, and payments functions. The company claims to have seen average annual revenue growth of 132% since its inception in 2014 while remaining profitable.
“We are seeing an overall upward trend in the rate of spending in the region. Consumer behaviour has shifted towards prioritising diversity and convenience. Customers will buy a broader range of products online and across more digital channels,” said Rene Menezes (pictured), president and co-founder of Involve.
“As customers get more accustomed to shopping online, they will extend their digital purchases beyond apparel and low-value consumer electronics. Food and beverage, beauty products, and home and living goods are expected to enjoy the strongest growth, although category penetration is expected to deepen across the board.”
Bintang Capital Partners, the private equity arm of Affin Hwang Asset Management, has taken notice, leading a USD 10m round for the company with support from 500 Global, Orbit Capital Malaysia, and Monumental Productions, a local investment entity.
It comes one month after CVC Capital Partners agreed to buy 68% of Affin Hwang for MYR 1.5bn (USD 368m). Last year, CVC acquired a minority stake in Dubai-based digital advertising company Aleph Holding for USD 470m.
Involve claims to have more than 1m partnerships with various websites, influencers, and affiliates across the region, as well as more than 500 customers across the e-commerce, travel, and financial services sectors. In addition to Lazada, Shopee, and Tokopedia, they include Grab, Marriot, Malaysia Airlines, Air Asia, Nike, and Citibank.
Bintang will take a board seat as part of the investment and is expected to be active in sourcing and evaluating expansion acquisitions. The bulk of the USD 10m will go toward complementary M&A outside of Malaysia.
There will also be work around improving environmental, social, and governance (ESG) standards – Bintang flagged the deal as a social uplift and impact play – as well as a significant team buildout in sales, project management, and IT. 500 Global hopes to leverage its ecosystem to source product development partners.
Involve will pursue these efforts conscious that the industry landscape is constantly shifting. In the past year, cashback and loyalty programmes have become more essential parts of the digital marketing toolkit, as have products around virtual livestream shopping, and giveaways. The use of artificial intelligence (AI) is tipped to ramp up in 2023, along with engagement via short-form videos and vlogs.
“AI will help optimise affiliate programmes, run A/B testing, monitor performance, and gather insights. In the upcoming cookie-less future, we will see more brands seeking consent and increasingly choosing alternative tracking options such as server and bounce-less tracking,” Menezes added.
“Collaborative, content-focused campaigns are expected to expand in the new year, in alignment with consumer preferences and lifestyles. While affiliates will increasingly help brands refine their marketing strategies, we also anticipate brands to further support content creators, who can expect exclusive promo codes and gifts based on the quality of leads they generate.”
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