KUALA LUMPUR: Malaysian-based regional e-commerce ecosystem player Commerce DotAsia Ventures Sdn Bhd (Commerce.Asia) is in the midst of raising RM20 million in financing through pitchIN crowdsourcing platform to support its expansion plans.
This exercise is ahead of the company's plan for a potential public listing within the next 24 months.
The New Straits Times has learnt that the potential initial product offering (IPO) would see Commerce.Asia listing either via a special purpose acquisition company (SPAC) or a merger with a local or foreign listed company.
When contacted, Commerce.Asia executive chairman Ganesh Kumar Bangah declined to comment on the market talk.
"I cannot comment on this matter as we are currently awaiting approvals," replied Ganesh, who was the former chairman of PIKOM (National Tech Association of Malaysia) and the current chairman of PIKOM's think-tank arm, Future Digital.
It is believed that Commerce.Asia would use the final growth funding exercise to raise up to RM20 million for, among others, the acquisition of a new payment platform and for the group's further expansion throughout Southeast Asia.
In 2018, Commerce.Asia had conducted an equity crowdfunding exercise which raised RM5 million.
Commerce.Asia offers an end-to-end one-stop solution for brands and businesses looking to sell online.
It manages all aspects of customers' online businesses, from developing their online stores to managing product sales across multiple e-marketplaces, including warehousing, payment, delivery, marketing and order management.
This holistic approach centralises all business operations for clients, incorporating best-of-breed technological innovations that range from core business operation management, automated dropship functionalities, and big data analytics to on-demand fulfilment, one-stop delivery, and managed services.
The company currently has over 71,000 merchants that use its various platforms, with a group gross merchandise volume (GMV) of RM3.4 billion last year.
Due to the booming domestic and regional e-commerce markets, Commerce.Asia is set to ride and capitalise on the continued upward trajectory.
A study conducted by Google and Temasek revealed that Malaysia's e-commerce industry amounted to US$3 billion in 2019 and US$6 billion in 2020. It is set to rise to US$13 billion in 2025.
At the regional level, Southeast Asia e-commerce was valued at US$38 billion in 2019, US$62 billion in 2020, and set to soar to US$172 billion in 2025.
Last year, Commerce.Asia has emerged as the top winner of Silicon Valley's APAC CIO Outlook Awards for being the 'Best E-commerce Consulting/Services Company in APAC 2020' among the selected Top 10 companies in the Asia-Pacific region.