MyCloudFulfillment, a Thai e-commerce fulfillment firm, has closed a $7.4 million Series B round of funding led by JWD Group (an ASEAN logistics and supply chain services provider) and SCB 10X. (a holding company of Siam Commercial Bank).
The Bangkok-based business plans to utilise the fresh funds to grow its warehousing and service capabilities, as well as increase its management and software development teams and reach out to other nations.
The fresh funding comes a year after ECG-Research, Gobi Partners, Bangkok-based NVest Venture, and SCB 10X led a $2 million Series A investment.
For e-commerce businesses, MyCloudFulfillment offers storage, packing, and shipping services, as well as sales channel integration and data analytics. Customers may use its order management analytics to handle orders from different channels and make the best decisions possible about promotion campaigns and sales channel optimization.
Furthermore, its inventory management analytics may assist clients in determining which stock-keeping units (SKUs) to stock more or less of and at what level. Customers may save a significant amount of money by neither overstocking nor understocking their items.
Customers may track fulfillment movement using its fulfillment management analytics, which allows them to examine data throughout the process, from receiving the order to shipping out the items.
SCB is highly aggressive in adapting its service for e-commerce, while JWD is a prominent logistics firm in Thailand’s stock market.
“MyCloudFulfillment will take responsibility in warehouse management systems, order management systems, and operation, while JWD will take charge of CAPEX investment and infrastructure. JWD strength and expertise in traditional logistics will help us speed up our new warehouse setup and expansion,” he added.
“In contrast, we help JWD services with full-scale order fulfillment to its clients and turn around its warehouses right away. Moreover, we can combine SCB 10X financial tools with our order management system to help our clients manage their shops and payments easier than it has ever been,” he elaborated.
SCB 10X chief venture and investment officer Mukaya (Tai) Panich said, “Due to COVID-19, we are seeing accelerated adoption of digital lifestyle by consumers and digital transformation by corporates. We have seen the rapid rise of social commerce and e-commerce in Southeast Asia in the past two years as more people go online. Startups that enable social commerce and e-commerce like fulfillment and logistics firms will continue to benefit significantly. MyCloudFulfillment is the key critical enabler of today’s social commerce and e-commerce trends.”
MyCloudFulfillment received an average of 300,000 orders per month in the first half of 2021. In Min Buri, the firm has erected a new warehouse with about 6,500 square meters of capacity. It has the capacity to fulfill up to 30,000 orders each day.
The company already operates two warehouses in Ladkrabang and Rangsit, totaling 10,000 square meters.
“We see room for growth in the e-commerce market. It keeps growing as we move. Asia’s current e-commerce market is valued at US$45 trillion, which is bigger than the e-commerce values of other regions combined. More importantly, Southeast Asia shows the highest growth rate in the region at 44.2 percent,” shared Satchatippavarn.
Thailand’s market value was 228,000 million Baht in 2020 (a 42 percent growth over 2019) and is predicted to rise to 280,000 million Baht in 2021, a 22 percent increase.
“The COVID-19 pandemic may improve, and people are returning to their daily life, but online shopping will still keep growing. It is predicted to grow even bigger. What is interesting is that a Thai spends 7,290 Baht per year on online shopping. This places us on the second-highest only after Indonesia, for average consumption per user in Southeast Asia. With all these factors, I am certainly confident that there are many opportunities for Thai e-commerce. Our economic recovery may be slower than other countries, but our e-commerce is thriving, and the future of commerce here is looking bright,” he concluded.