E-commerce enabler Etaily has secured $1.6 million in seed funding, with investments from leading businesses such as the Ayala Ventures, Foxmont Capital Partners, Magsaysay Shipping & Logistics, the Boston Consulting Group, and other renowned angel investors.
The funding is expected to spur the growth and development of Philippine e-commerce, while preventing the breakout of a “retail apocalypse” similar to what has been happening in the US and Europe.
“We will not allow the retail apocalypse that happened in the US and in Europe because we are giving traditional retailers the digital fighting chance to compete for the local as well as regional market,” said Alexander Friedhoff, CEO of Etaily, during the webinar “Breaking The e-Retail Ceiling In ASEAN.”
“We are connecting online brands and retailers to ASEAN consumers by integrating their business offline and online. The most important thing there is one winner, the final consumer. And we are happy to give them a fighting chance and to support end-to-end throughout their journey,” Friedhoff added.
Etaily was launched in March 2020 at the height of the pandemic, leveraging on the quick but massive migration of consumers to the digital marketplace and online shopping.
It provides brands with end-to-end omni-channel solutions while integrating their offline and online retail processes and services. This unique approach provides traditional retail companies a lifeline into the digital world, allowing beloved Filipino brands to connect to their consumers.
Etaily has generated more than 1 million transactions, made more than 50,000 unique products available to the entire country and beyond such as Malaysia, Indonesia, and Singapore. It has also managed more than 20 brands across all online channels, activated more than 10 offline retailers for online capability, and has a gross merchandise value revenue projected this year at $10 million.
Toti Wong, CCO of Etaily, said their platform and processes make e-commerce user-friendly even for newbie companies who want not just to survive but even scale.
“I think most Filipino retailers are quickly learning that e-commerce is becoming more complex. The marketplaces in 2017 were totally different than the ones today. In the coming months and years, this will not get any simpler. As an e-commerce enabler, Etaily's role is to navigate these complexities for sellers and for brands so they don’t have to learn all these things themselves. They can then focus on their core business of brand management, distribution, and retailing,” Wong said.
Amor Maclang, Convenor of Digital Pilipinas, pointed to the advantages that an established e-commerce ecosystem can give Philippine companies.
“More than just e-retail and e-commerce, the Philippines is leading on many frontiers when it comes to technology. We are one of the pioneers in fintech and payment in the world, and all eyes are on us. We want to continue to champion those even in the nascent asset classes like crypto and tokenization,” she said.
“Our journey in e-retail, eMSME’s, and e-commerce is not going to be far behind. We really thank platforms like Etaily who have taken the heavy lifting out of the way and are creating ecosystems that will allow the retailers in the Philippines a true fighting chance,” Maclang added.
Jesse Maxwell, COO of Magsaysay Shipping and Logistics, described the integral role that logistics plays in building Philippine e-commerce.
“The Philippine logistics structure is challenging to work with. We are an archipelago – and moving these goods at the pace that we want to see from e-commerce will require more investments in this space. We need to invest a lot into warehousing, technology, trucks, and last-mile capabilities,” Maxwell said.
Alberto de Larrazabal, chief sustainability officer of Ayala Corp., said their partnership with Etaily "continues our journey of prioritizing the digitization of retail.”
“The biggest winner here is the Filipino as we believe e-commerce is the answer to many of our challenges. Etaily makes products available to the whole country, and we are here to promote digital retail and equip our country for a sustainable future,” he said.
For Franco Varona, Managing Partner of Foxmont Capital Partners, Etaily’s fresh funding can accelerate the growth of e-commerce in the country.
“We are seeing actual e-commerce websites that Etaily helps – they started from zero and are now moving P20 million worth of goods per month. There is really a large quick growth in the Philippine market,” Varona said.