On Group, a social commerce start-up with headquarters in Vietnam declared that it has purchased the regional shipping aggregator TopShip. The deal’s financial specifics were not disclosed.
After the transaction, TopShip will take the moniker OnShip and function as one of the ecosystem’s three key pillars, along with sourcing and finance.
Currently, more than a dozen shipping partners around the country use TopShip’s network to deliver roughly 25,000 orders daily for more than 50,000 online retailers. According to On, its new delivery division would let retailers save up to 50% on costs.
Meanwhile, Giang Nguyen, Dzung Luu, and Minh Nguyen formed last year. Through this platform, users may advertise things on social media and earn fees for each sale.
The business claimed that its rural-focused strategy had contributed to its success, with over 1.4 million users, 52,000 vendors, and more than 20,000 listed items.
The company said that 90% of the vendors on its platform are women and that the average monthly salary in Vietnam is equivalent to the US $300 in commissions earned by these merchants.
The acquisition, which comes after on received US $1.1 million in a seed round early this year, is a “1 plus 1 equals 10” tale, according to TopShip founder Giang Hoang, since it allows the two companies to participate in Vietnam’s burgeoning social commerce market.
On estimates that social commerce will surpass US $2 billion in gross merchandise value this year and will reach US $31 billion by 2028 at a compound annual growth rate of 57.4%.
