Kumoten closes equity round led by Cradle
By Digital News Asia October 31, 2018
- Commerce.asia joins funding round to maintain its strategic interest in Kumoten
- Kumoten is largest home-grown dropshipping platform with over 100,000 products
COMMERCE DotAsia Ventures Sdn Bhd (Commerce.asia), an omni-channel ecosystem builder that invests in commerce enablers, announced that its first investee, Kumoten has closed an equity round led by Cradle Fund Sdn Bhd. The equity round was ten times Commerce.asia’s initial entry valuation.
Commerce.asia also joined in this second round of funding to maintain its strategic interest in Kumoten. Kumoten grew 180% in 2018 and was accelerated by Commerce.asia’s GrowthX Market Acceleration Programme which Commerce.asia licensed from Silicon Valley.
Kumoten is an e-commerce enabler. Its proprietary automated dropshipping platform enables users to start selling on major online shopping marketplaces like Lazada and Shopee without buying or keeping stocks.
The integration with Lazada, Shopee, Lelong.my and 11street coupled with more than 100,000 SKUs in Kumoten’s catalogue allows users to easily select and sync products to their online stores in these marketplaces.
“We have seen amazing growth in Kumoten since the company first started operations in June 2014. Today, it is acknowledged as Malaysia’s largest home-grown dropshipping platform with more than 100,000 products in the catalogue.” said Commerce.Asia founder and executive chairman Ganesh Kumar Bangah.
“As an integral part of the Commerce.asia ecosystem, Kumoten enjoys synergies with Commerce.asia’s other investments within the omni-channel commerce space, where each investee company can leverage on each other’s expertise and cross-marketing to grow their respective businesses,” he added.
Besides making investments in various startups, Commerce.asia provides strategic advice, hands-on guidance and mentorship for all its investee companies.
Cradle Group chief investment officer Juliana Jan said, “How Asian consumers shop is changing dramatically. It used to be a linear process – from awareness to consideration to purchase. Now, in a connected marketplace, it’s much more complex, with multiple, overlapping touchpoints along the path.
“And in a market, that’s redefined by digital, Asian consumers’ loyalties are shifting away from brands. Instead, they’re seeking solutions at the ‘micro moments’ where decisions are made along their purchase journeys. From now on, companies that stand out will be the ones that can provide these solutions – seamlessly and intuitively.
“And Kumoten does just that. It is a solution that aggregates products from various platforms and wholesalers and integrates products for sale by online resellers. We see huge potential in Kumoten and we are excited to support and be part of their growth.”
According to Ganesh, “Commerce.asia is committed to grow Malaysia’s omni-channel commerce industry through investing in the best companies and providing them with powerful strategic guidance that would in turn grow their business. We are focused on particular areas that we feel will enable all our companies within our portfolio to enjoy synergistic returns and value.”
Commerce.asia has also set a new record for raising the Largest Equity Crowdfunding Round in Malaysia, a feat which has been recognised by the Malaysian Book of Records. Commerce.asia had raised RM5 million earlier in 2018. Ninety-two Malaysian and international investors participated in the online fundraising exercise to invest in Commerce.asia through PitchIN.
Commerce.asia was founded by Ganesh in 2017 after he conceptualised the Total Ecosystem Support Strategy that has become the core of Commerce.asia business. He currently leads the strategic direction, execution and monitoring of Commerce.asia’s business plan. Prior to founding Commerce.asia, Ganesh was the founder and executive chairman of MOL Global Inc, a global payment service provider that became Southeast Asia’s first internet company to be listed on the Nasdaq in 2014.
At a recent Commerce.asia’s Investor Relations event to update the business and financial community, Ganesh was presented with the Malaysian Book of Records for this new achievement by Christopher Wong, chief operations officer of Malaysian Book of Records.