Deal focus: The online-offline element

For aCommerce, a Southeast Asia-focused e-commerce solutions provider, taking strategic investment from Switzerland-based DKSH wasn't initially part of the plan. Having secured $5 million in financing in May, the company intended to complete its Series B round in the second half of this year. But then DSKH expressed an interest in investing, and plans were put on hold. 

"We had already been working with DKSH, helping some of its brands expand in the region, especially in Thailand," says Paul Srivorakul, co-founder and CEO of aCommerce.

"We have even used some of their old warehouses in our operations. When they heard that we were in the process of raising money, they said they wanted to acquire a small stake. That led to discussions about the potential cooperation, and the opportunities are massive. It's very strategic."

Last week, the Switzerland-listed company bought a 20% stake in aCommerce for an undisclosed sum.

DKSH works with companies that want to find outsourcing partners in new markets, delivering integrated solutions online and offline in Asia. Meanwhile, aCommerce helps brands take their sales online. It has supported the likes of L'Oreal Group, Nestle and HP with online marketing campaigns, fulfilment, last-mile delivery, localized customer services and payment solutions. These B2C value-added services are seen as an important to DKSH's customers, and vice versa.

"We have more than 140 brands that some want to expand into other markets," says Srivorakul. "A lot of companies that come to us will firstly try to sell their products through our marketplace. Once their online sales strategy is proven, they build their own websites, getting more serious in e-commerce. Some will also get more serious on offline, and they want to build their retail stores in different markets. DKSH, which has tens of thousands of retail outlets on the B2B side, is therefore complementary to us."

DKSH will allow aCommerce to make use of its 165 distribution centers across Southeast Asia, which serve more than 100 global blue-chip clients, as well as its warehouse space, fulfilment centers and other physical assets. In other words, the deal will expand aCommerce's coverage in countries in the region where it currently doesn't have operations.

Founded in June 2013, aCommerce has four offices in Thailand, Singapore, Indonesia and the Philippines, and there are plans to enter Malaysia and Vietnam.

The company received $10.7 million in Series A funding in June 2014 from investors including Ardent Capital, Indonesian conglomerate Sinarmas and Inspire Ventures. It is said to be one of the largest Series A rounds ever seen in Southeast Asia.
"We do plan to raise the Series B later next year," Srivorakul adds. "Obviously we now want to leverage this relationship with DKSH, which could bring more value to the business and help us expand into other markets."

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• Topics
• Southeast Asia
• Consumer
• Expansion
• Southeast Asia
• TMT
• Growth capital
• Venture
• Logistics