Malaysia’s Commerce.Asia has acquired a 30 per cent stake in local rural social commerce platform BizApp, its founder and executive chairman Ganesh Kumar Bangah told DealstreetAsia Tuesday.
Although the exact deal size could not be ascertained, it is understood to be a seven-digit investment (in terms of Ringgit).
Following the acquisition, Commerce.Asia is looking at consolidating its ecosystem before laying its focus on regional expansion.
According to a statement issued by the company on Monday, Commerce.Asia claims to have a database of over 8 million small and medium-sized enterprises across seven countries. Of them, as many as 61,000 are active sellers who transacted a gross merchandise volume of 1.5 billion in 2019.
“We believe that through this strategic investment, Commerce.Asia and BizApp can leverage on each other’s platforms to encourage the rural communities to partake in social commerce,” said Bangah. “Leveraging on our experience, we will expand the BizApp business model across Southeast Asia, enabling us to leverage on the fast-growing southeast Asian e-commerce industry.”
According to BizApp Ventures founder Hasnol Mizam Bin Hashim, the company’s current users are mainly from suburban and rural areas who have successfully grown their businesses online. A huge portion of Malaysians are transacting online via social media channels and the growth has been exponential.
“The technology-based business tools which are currently the backbone of our system will now be further enhanced with Commerce.Asia’s large ecosystem, enabling users to expand regionally, if not globally,” he added.
BizApp is a platform that is primarily used by local businesses and brands to manage their daily business operations including order and fulfillment management. The firm currently has over 200,000 agents with a gross merchandise volume of over 600 million ringgit transacted in 2019.
Commerce.Asia is an all-in-one e-commerce ecosystem that integrates technology solutions, talent development programmes and big data insights for Southeast Asian businesses.