MyCloudFulfillment, the leading order fulfillment service provider in Thailand, has closed its Series B fundraising round from JWD Group and SCB 10X, bolstering its strength for regional expansion.
Nithi Satchatippavarn, Co-founder and CEO of MyCloudFulfillment, said that total fund of US$7.4 M will be mainly used on improving warehouse and service capability, expanding the management and software development team, and expanding its service to neighboring countries.
“This round of investment is a significant step for us. Not only just the money to boost our growth, but we also get strong partners to help us in client growth, warehouse development and service expansion,” said Nithi.
JWD is a major logistics company in Thailand stock market and SCB is very proactive in transforming its service for e-commerce. The synergy between MyCloudFulfillment and JWD brings the best of two worlds.
MyCloudFulfillment will take responsibility in WMS, OMS and operation, while JWD will take charge on capeCAPEX investment and infrastructure.
“With JWD strength and expertise in traditional logistics, it will help us speed up our new warehouse setup and expansion, while we help JWD services 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,” said Nithi.
Charvanin Bunditkitsada, Chief Executive Officer of JWD InfoLogistics Public Company Limited or JWD stated that: “I am very honored to have the opportunity to invest in MyCloudFulfillment in this Series B. JWD sees great potential in e-commerce order fulfillment and warehouse expansion capability from MyCloudFulfillment. That is why we have good confidence in investing in the company, which will have high growth in response to the growing trend of e-commerce.”
JWD has long gained experience regarding logistics both domestically and internationally. The company is also equipped with the readiness in terms of the logistics infrastructure and different types of warehouses in key strategic locations serving across industries. Furthermore, its customer base covers every industry group.
When combined with the expertise of MyCloudFulfillment – a leading Thai startup with its software technology as its major asset – the company can connect with every online platform and do data mining, enabling seamless back-office’s order management. This helps JWD to start running Order Fulfillment Service within 2 months.
“The partnership helps both parties speed up e-commerce fulfillment expansion, boost competitive advantage and refine the best state-of-the-art operation that will hold the legacy of great service mind. We are certain that MyCloudFulfillment will become the leading order fulfillment company in the region,” said Charvanin.
According to SCB 10X Chief Venture and Investment Officer, Mukaya (Tai) Panich, “SCB 10X is excited to announce our participation in series B fundraise of MyCloudFulfillment, led by JWD. We are proud to be an investor in MyCloudFulfillment since series A, and continue our support in series B. Due to COVID-19, we are seeing accelerated adoption of digital lifestyle by consumers and digital transformation by corporates.”
In the past 2 years, it has seen the rapid rise of social commerce and e-commerce in Southeast Asia, as more people go online. Startups that enable social commerce and e-commerce like fulfillment and logistics firms will continue to greatly benefit.
MyCloudFulfillment, a seamless one-stop fulfillment provider offering inventory storage, order packaging, and last-mile delivery to e-commerce, social commerce and omnichannel businesses, is the key critical enabler of today’s social commerce and e-commerce trends.
“As a payment partner of MyCloudFulfilment, we are looking forward to continuing to work closely together,” said Mukaya.
During the first half of the year, MyCloudFulfillment has enjoyed consistent growth in orders with the latest figure recorded at 300,000 orders per month, a triple leap from the same period of last year.
Also, apart from the company’s three existing warehouses located in Ladkrabang and Rangsit with 10,000 square meters of space in total, the fourth warehouse facility located in Min Buri with more than 6,500 square meters of space is added as part of its expansion through the collaboration with JWD Group.
The new warehouse is set to fulfill up to 30,000 orders at maximum per day.
Moreover, MyCloudFulfillment’s business achievement is widely recognized in which it was awarded the Merit Prize from the 2021 National Innovation Awards in the category of Excellent Innovation Organization for Medium-Sized Private Organization, and the Bai Po Business Awards by Sasin as well as being one of the two Thai startups selected to feature on Forbes Asia 100 To Watch this year.
MyCloudFulfillment is the best order fulfillment solutions for multi-channel sellers. It connects with diverse platforms, manage orders, and provide inventory updates to different channels e.g. Marketplace, Website CMS, Live commerce and many more. Apart from API connectivity, its system provides a myriad of features able to promote sales automation, for instance, virtual bundling and promotion management.
Its service can also be tailored for each store’s demand and uniqueness while retaining flexibility to accommodate highly-fluctuating orders.
“Our goal, however, does not end with fulfillment service. We aim to go further by becoming the key assistant for online business. We believe from the start that for everything we do, we want to help sellers manage their shops efficiently while achieving sustainable growth. Today, we may be helping our clients in managing their warehouse and order fulfillment. But our next step will be solving stock problems; reducing sunk costs while maximizing sales opportunities, which can be done through predictive analytics. Next year, we are launching inventory intelligence on the dashboard for each shop. This was made possible because we handle both OMS and WMS for our clients,” said Nithi.
Through machine learning, we can utilize first party data of each shop, going through the pattern of sales cycles and stocks replenishment, to recommend the right amount of stock they should be keeping in the warehouse. This can help recommend several business decisions such as: which product should be stocked or reduced? Which item brings in profit or loss? Or which product can generate more sales from each different sales campaigns?”
“We see room for growth in e-commerce market. It keeps growing as we move,” said Nithi.
Asia’s current e-commerce market is valued at $45 trillion, which is bigger than e-commerce values of other regions combined. More importantly, Southeast Asia shows the highest growth rate in the region at 44.2%.
For Thailand, the market value in 2020 was recorded at Bt228,000 million (42% increase from 2019) and is expected to soar to Bt280,000 million in 2021, or 22% higher.
The COVID-19 pandemic may improve and people are returning to their daily life, but online shopping will still keep growing. In fact, it is predicted to grow even bigger. What is interesting is that a Thai spends Bt7,290 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,” said Nithi.