Malaysia’s Kumoten snags pre-Series A round led by Cradle Fund

(L-R) Cradle Fund chief investment officer Juliana Jan, Commerce.Asia founder and executive chairman Ganesh Kumar Bangah and Kumoten's CEO Isaac Leong.

Malaysia-based drop shipping platform Kumoten announced that it has raised an undisclosed pre-Series A equity round led by Cradle Fund late last year, it said in a statement on Friday.

The round was also joined by seed investor Commerce.Asia. Fresh proceeds from the funding round will be used to expand its product research and development team and for talent acquisition, said Kumoten. The startup also plans to launch local operations in Indonesia, the Philippines and Thailand.

Founded in 2014, Kumoten claims to be the largest drop shipping platform in Malaysia with more than 100,000 stock keeping units in its catalogue. The platform provides online sellers with product data through its automated drop ship system which also automatically updates product inventory level, enabling online sellers to easily sync product details to various online marketplaces.

It also added that its active user base and gross merchandise volume has grown by five times since last May.

“We want online sellers to enjoy selling online and to focus on sales and marketing activities instead of worrying about the cost of investing in stocks, taking product photos and writing product descriptions. Most importantly, our investors believe in the founders and our management team’s ability to deliver on our financial goals. It helps that our team is also able to work closely with our investors to achieve greater heights,” said Kumoten co-founder and CEO Isaac Leong.

According to Leong, e-commerce in Southeast Asia is growing rapidly but is still considered to be at an early growth stage and that drop shipping complements this growth.

“The potential of drop shipping is in riding the e-commerce growth wave. We estimate by 2020, drop-shipping in Southeast Asia will have a $7.5-billion market size,” he said, adding that Kumoten adds 500 to 600 new items to its product list daily.

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Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.