Omnilytics, a Singapore-based market intelligence platform for fashion retailers, is set to acquire the Malaysian data labelling platform Supahands for $20 million.
The deal will be funded through a mix of cash and equity, Omnilytics’ co-founder and CEO Kendrick Wong told DealStreetAsia in an exclusive interview after the announcement of the deal.
Omnilytics owns a proprietary product match solution that helps brands and retailers compare same or similar stock-keeping units (SKUs) across multiple platforms, providing valuable data insights into how the market is pricing the products.
The company is backed by East Ventures, 500 Startups, Ideal Force, and a few family offices, but declined to reveal the total funding it has raised to date.
The strategic acquisition of Supahands is set to take Omnilytics’ product match solution to the next level, bolstering the company’s core functions and technological capabilities, said Wong. “Our acquisition of Supahands will fill a critical gap in our existing tech capabilities,” said Wong.
Omnilytics scrapes over 400 retailers’ sites, more than 75,000 brands, and over 100 million product SKUs across multiple regions every single day to provide real-time data and competitor analysis for retailers to analyse their market and competitor’s offerings by assortment, price, discount, category, colour, size, options, and strategy.
Supahands’ proprietary technology, on the other hand, allows clients to accurately label images, text, speech, and video. Clients of the Malaysian company include online consumer marketplace Carousell, SaaS customer experience management platform Sprinklr, and retail solutions provider Badger Technologies.
Mark Koh, co-founder and CEO of Supahands said in a statement: “Having witnessed first hand the tangible benefits that AI and machine learning can bring to our clients, we are proud to be joining forces with Omnilytics that shares our same vision of revolutionising the retail tech ecosystem.”
Supahands last raised an undisclosed amount in a Series A funding round led by social venture capital firm Patamar Capital and Cradle Seed Ventures (the VC arm of Cradle Fund Sdn Bhd, Malaysia’s early-stage financier under the Ministry of Finance) in June 2019.
Other investors include 500 Startups and Axiata Digital Innovation Fund which invested in its seed round in December 2015. Supahands was also awarded an innovation grant from the Malaysia Digital Economy Corporation (MDEC) in 2020. To date, the company has raised a total of $3 million in disclosed funding.
Following the acquisition, Koh will continue to serve as CEO of Supahands and will also join the board of Omnilytics, assuming the role of chief strategy officer and spearheading Omnilytics’ growth plan for 2022.
Strong demand for analytics
Demand for analytics and market intelligence has spiked in recent times thanks to the rapid adoption of e-commerce.
According to a recent report published by Meticulous Research, the retail analytics market is expected to reach $23.8 billion by 2027, at a CAGR of 19.1% during the forecast period of 2020 to 2027.
“The recent rise of global direct-to-consumer e-commerce fashion giants from the likes of Shein and Trendyol attests to the power of big data and analytics in driving business results, as well as the successful marriage of analytics and traditional fashion,” said Wong.
“This is evidence that big data analytics, whether in relation to internal sales performance or competitor benchmarking, has a critical role to play in fashion. For the modern fashion firm, analytics should have a seat at the table alongside design, sourcing, and distribution strategies,” he continued. “In Southeast Asia, where digitisation is on the rise and the growth of e-commerce has only intensified in the last year, the opportunities are significant.”
Prior to starting Omnilytics in 2014, Wong served as CEO for three-and-a-half years at Shoppr, a Malaysian fashion shopping app backed by 500 Startups, East Ventures, and Angel Investor Forum.
Omnilytics’ global clientele includes Europe’s largest sportswear manufacturer Adidas, Japanese brand Uniqlo’s parent company Fast Retailing, Southeast Asian e-retailer Zalora, emerging markets-focused e-commerce leader Global Fashion Group, Australia’s largest fashion and sportswear online retailer The ICONIC, and South Africa’s leading retailer Mr Price.
One of its clients DUST, a local Indonesian fashion brand targeting the youth, was forced to pivot to an online model amid the coronavirus pandemic in March 2020.
By implementing Omnilytics’ solutions as part of its online marketing strategy, DUST’s sales have grown by over 35% — an over 317% year-over-year (YoY) increase — in the last 14 months, claims Wong.
“We expect to see more acquisitions within the retail enablement space,” said Wong.