E-commerce experienced rapid growth in Southeast Asia during the pandemic, and this upward trajectory is set to continue. According to a McKinsey report, the market is anticipated to triple by 2026, reaching $230 billion in gross merchandise volume with a compound growth rate of 22%. As a result, global brands are keen to establish their presence in Southeast Asia, and etaily, an e-commerce enablement platform based in the Philippines, is facilitating their entry by aiding in the construction, management, and expansion of their e-commerce operations.
Founded in 2020, etaily recently announced a successful Series A funding round, securing $17.8 million. The funding was led by SKS Capital, a private equity firm from China and Taiwan, along with support from Singapore’s Pavilion Capital, SBI ICCP, Kaya Founders, and others, including the Magsaysay family, Chan family, Foxmont Capital, and JGDEV, the corporate venture arm of JG Summit Holdings.
etaily, under the leadership of CEO Alexander Friedhoff, a retail industry veteran with experience at companies like van Laack and Zalora, offers end-to-end solutions for e-commerce and omnichannel global brands. The startup boasts around 50 global clients, including well-known brands like Levi’s, Crocs, Reckitt, and Skechers. These brands leverage etaily’s services to develop lifestyle products, manage sales on platforms such as Lazada and Shopee, and fulfill orders through etaily’s asset-light warehouse network. To date, the platform has processed over 10 million orders and aims to achieve gross sales of $40 million this year, with a target of $100 million by 2025.
etaily focuses on six segments: fashion, consumer electronics, lifestyle, beauty, home and living, and fast-moving consumer goods. Its value proposition lies in managed services and technology, offering brands economies of scale, demand-side assistance with customer data and market knowledge, conversion optimization, demand forecasting, and logistics support.
The company monetizes its services by taking a percentage of sales generated through its platform and operates a subscription model for additional services. etaily’s competitive advantage lies in its omnichannel capabilities, designed operating platform, and its ability to capture more of the value chain. The platform’s vertically integrated services include selling its own brands and third-party brands in over 200 storefronts, powered by Clarity, etaily’s end-to-end e-commerce technology and operating ecosystem.
The Series A funding will fuel etaily’s expansion in Southeast Asia, with a focus on Malaysia, Indonesia, Singapore, and the Philippines. The company plans to enhance its distribution platform for brands, expand its portfolio of brands (including in-house brands), and invest in proprietary technology, including an operating system, data analytics, and Clarity. SKS Capital founder Jack Chen emphasized etaily’s asset-light strategy and data-driven insights as key factors for substantial growth in the future.
