Cambodia-based private equity firm Belt Road Capital Management (BRCM) has invested $5 million into Groupin, who has a stake in Little Fashion and Mediaload.
Little Fashion is a leading player in Cambodia’s ecommerce sector, while Mediaload is a digital media firm that also operates in Myanmar.
Vichet In, Groupin CEO, said in a press release that the capital will fuel the company’s expansion in the local and regional markets.
“Although our startups are profitable, we need this funding to lay early foundation for our transformation into a regional internet company.
“We will invest in mobile technology, logistics chain, product vertical expansion, and customer support to turn L192 into the region’s most customer-centric marketplace platform,” he said.
L192 is an e-commerce platform operated by Little Fashion.
Mr In said Mediaload needs to evolve into a content aggregator app.
“With its operational efficiency and local understanding, Mediaload has a big potential to be a localised super content app. We will put our heart and resources into realising this vision.
“We are absolutely delighted to bring on board our experienced investor BRCM, who believes in our vision and wants to be part of this journey,” he added.
Alex Odom, chief investment officer at BRCM, said Little Fashion primarily operates in the low-cost online fashion industry, taking advantage of rising internet penetration, increasingly active online customers, and a growing middle-income population in Cambodia.
“We see huge potential in this marketplace. Bringing Mediaload together with the ecommerce platform allows for significant synergies and access to millions of potential customers in both Cambodia and Myanmar. We are extremely excited to work with Vichet and his team to help the company grow to new heights,” he said.
Little Fashion was launched as an informal Facebook retailer in late 2010 and has grown to become a leading ecommerce player in Cambodia with a focus on omnichannel customer experience.
The company sells clothes, accessories, and lifestyle products via its online platform, social media pages, and retail stores. Its main Facebook page has over 1.6 million followers.
Mediaload focuses on content generation with topics ranging from entertainment to sports. It claims to rack up to 8 million monthly users and 20 million social media followers with more than 600 million social impressions a month. Mediaload received $200,000 seed funding from early-stage venture fund 500 Startups in 2017.
A 2018 Google-Temasek report estimated that Southeast Asia’s ecommerce and online media markets were worth $30 billion and $11 billion respectively and projected that their value will increase to $102 billion and $32 billion by 2022.
According to a McKinsey report in 2017, the Asian online apparel market will reach $1.4 trillion in value by 2020. Asia now boasts two-thirds of the world’s 45 e-commerce unicorns, McKinsey said.