Vietnam-based e-commerce enabler OnPoint closed its Series A funding round with over $8 million to accelerate its revenue growth and develop an innovative e-commerce solution for its roster of blue-chip clients.
Leading this Series A consortium round is Kiwoom Investment and DAIWA-SSIAM Vietnam Growth Fund II LP. This marks one of the largest Series A rounds in Vietnam in recent months amidst the ongoing global COVID-19 pandemic. The new funding, which brings the total funds raised by OnPoint to date to an 8-digit number, will enable the company to invest in strategic technology developments, recruit new talents, and develop data-driven capabilities to provide better services to its clients. Founded in December 2017, OnPoint is the market leader in the Vietnam market for e-commerce enablers. The company provides one-stop solutions that enable consumer brands in turbo-charging their online sales and online presences on e-commerce platforms, social channels or via brand-owned websites. The company accomplishes this via two distinctive but intertwining business offerings:
Distribution Services – OnPoint directly manages brands’ A-to-Z online store functions (including product listing, pricing, customer services, order fulfilment, etc.)
E-commerce Solution Services – OnPoint helps brands formulate, manage, execute, and measure strategic online marketing campaigns and commercial management capabilities.
“We realised that the e-commerce landscape in Vietnam is evolving extremely fast, and almost on a daily basis. As such, our mission is to empower consumer brands in not just navigating, but also growing and thriving in this ever-changing ecosystem. We see ourselves not just as an extending-arm in online demand creation and demand fulfilment, but also as a strategic partner for brands who helps facilitate their multitude of interactions with online netizens,” said OnPoint co-founder and CEO Tran Vu Quang.
“We want OnPoint to become the No.1 e-commerce enabler in Southeast Asia, providing cutting-edge solutions that help brands capture growth opportunities at the right time and in a sustainable way,” Quang added.
The team behind OnPoint’s success is a group of highly-calibre founders and managers, with a unique combination of top-class experience in retail, e-commerce, brands, and management consulting. Two of the founders Tran Vu Quang and Le Xuan Long, are both former C-level executives at Lazada Vietnam and ex-McKinsey consultants. Joining with them at the board of OnPoint are industry veterans with decades of top-management experience at global FMCG firms. The executive management team of OnPoint comprise of talents who previously held key positions at top e-commerce firms like Lazada, Shopee, Tiki, and Lotte.
“E-commerce is the new reality of Vietnam’s retailing industry and is expected to maintain its exponential growth in the near future. By deploying deep e-commerce expertise, and leveraging high-tech solutions, OnPoint is in the best position to help consumer brands re-orient their online strategy and reach a new height in their e-commerce journeys,” commented Chris (Seoktae) Kim, senior investment manager from Kiwoom Investment. The deal was advised by KPMG Vietnam's M&A team, led by Dinh The Anh and Nguyen Huu Toan, who served as the sell-side advisor. Allen & Gledhill and Allens served as legal advisors. Nguyen Huu Toan, KPMG associate director, noted: “OnPoint is an extremely promising company managed by an exceptional leadership team. Our team has been truly blessed to be part of the company’s exciting journey. The success of this Series A round demonstrates the trust that clients place in KPMG to deliver our top-level services even in a tumultuous market.”
The recent COVID-19 pandemic has caused severe impacts to many offline retailing businesses as a consequence of the government restriction measures such as social distancing and hence a huge shift in consumer behaviours. More and more brands are looking at online channels to serve new consumer needs, and OnPoint is at the forefront to help these brands to pivot to online solutions.
In 2019, OnPoint served more than 50 brands. The company is on track to expand its client portfolio to 100+ brands while accelerating revenue growth in 2020. The successful fundraising round will help OnPoint solidify its market-leading position and invest in technology to expand e-commerce demand creation and demand fulfilment solutions to better serve its clients. For the leaders of OnPoint, their ambition is to be No.1 in the Southeast Asia market, and staying No.1 in Vietnam is what they will definitely do to reach the goal. Vietnam is one of the two pacesetters in Southeast Asia – the other being Indonesia – in terms of its internet economy, which is growing in excess of 40 per cent a year, according to the e-Conomy SEA 2019 report by Google, Temasek Holdings, and Bain.