Dropee, a Malaysian B2B wholesale e-commerce business, has raised $7 million in a Series A round of equity and loan investment.
Vynn Capital led the round after investing US $341,000 in Dropee three years ago in a seed round and then joining the startup’s US $1.3 million Y Combinator-led investment in 2020.
New investors include HCL Capital, Resolution Ventures (a VC focused on fintech firms in Southeast Asia), and LKF Capital (the corporate VC arm of Lan Kwai Fong Group), as well as returning backer Brama One Ventures.
“We’re doubling down on helping micro and small local businesses to adopt digital solutions. This way, they can bring down their operating costs, have more access to financing support and increase their business longevity,” said Lennise Ng, Co-Founder and CEO of Dropee.
Over the following 12 months, the funds will be utilised to accelerate Dropee’s financing product offerings for wholesalers and retailers by collaborating with key partners such as regional banks and non-banking financial institutions.
Dropee, founded in 2016 by Lennise Ng and Aizat Rahim, provides a one-stop solution for brand owners and distributors, encompassing O2O B2B order management, automated consumer payment collection, and paperless paperwork procedures.
It also includes tools to compare suppliers, pricing, and goods conveniently, all on one platform, simplifying the decision-making process via increased transparency. Procurement and supply chain ecosystem management were among the other aspects.
Dropee has expanded its product line to accommodate loan and financing deployment, in addition to its SaaS and marketplace companies.
Apart from Malaysia, Dropee has made inroads into Singapore and Indonesia. It claims to have assisted over 80,000 small and medium-sized enterprises in obtaining wholesale inventory through its platform, with yearly transaction value exceeding US $100 million.