Malaysia’s AllSome gets US$ 1.94M seed funding, eyeing Indonesia expansion
AllSome Fulfillment, Malaysian cross border fulfilment aimed primarily at e-commerce businesses, announced that it has raised a US$1.94M seed funding round led by East Ventures.
With this fresh fund, AllSome Fulfillment eyes Indonesia for its first expansion in Southeast Asia, as it is the largest country in the region with a big population and stable economy.
AllSome Fulfillment was established last year by Ng Yi Ying and Liu Yi Shu, who first met back in 2012 when Ng was pursuing her Master degree at Tsinghua University, China. Liu was then Ng’s landlord and was still working at Amazon China.
At first, both Ng and Liu identified the huge potential in cross border shopping and started their first venture together as an online seller to bring product selections from China to Malaysia, Singapore, and Thailand.
The business grew and they encountered a huge gap in cross border logistics. Logistics is so expensive that it could take up to 45 per cent of the product’s capital, Ng noted.
Another problem was with the delivery process, in which 30 per cent of the ordered items were shipped incorrectly, be it the wrong size or defective products.
This led to the establishment of AllSome Fulfillment for merchants as an in-between for sellers and buyers who buy and sell products from sources overseas, particularly China.
AllSome Fulfillment offers services that remove all the steps for sellers from sourcing international suppliers, offshore quality assurance, secured storage, pick and pack, door-to-door delivery, and parcel tracking feature.
For end-buyer, AllSome Fulfillment allows them to completely leave out the need to visit multiple websites to track their deliveries as the service ties their various shipments to their phone numbers.
“Being a former online seller ourselves, we understand how fulfilment services are always expensive. AllSome Fulfillment seeks to make it affordable for every seller to use e-commerce fulfilment everywhere they need and to service online sellers throughout their supply chain,” said Ng.
Today, the company claimed that it has established a network of 250 virtual warehouses in China and Malaysia and served 50 clients across Southeast Asia. The company could handle 120,000 parcels deliveries daily.
According to Consumer Barometer, two out of three Singaporeans purchase products online from overseas, followed by Thailand where 49 per cent of the consumers has made international purchases. In Indonesia, 43 per cent of imported goods come from China.
In a report published by Accenture, the cross border B2C e-commerce market in the Asia Pacific has the potential of up to US$476 million in 2020, getting 31 per cent slice of the total B2C e-commerce market.
“Southeast Asia e-commerce market is as promising as China but at the same time, it is very challenging too. Countries in the region are fragmented in terms of geographic distribution, culture, and preferences. Therefore, the market requires effective localised logistics solutions to cope with the rapid movement of goods while offering high flexibility to support all types of use cases,” said Liu.