N-Squared seeks Series B funding
N-Squared eCommerce, a local e-commerce solutions provider, is set to raise Series B funding in the middle of this year as part of its strategy to drive international expansion and attain 10 billion baht in sales in Asean by 2024.
The company, which raised more than 450 million baht in Series A funding in 2020, has expanded its reach to five Asean countries: Singapore, Malaysia, the Philippines, Indonesia and Vietnam. It registered 3.5 billion baht in sales last year with a compound annual growth rate of 61% over the past five years.
The pandemic brought about a new disruption, with strong growth in e-commerce business, especially in Thailand, said Nuttapon Boonpinon, managing director of N-Squared eCommerce.
This growth will continue, he said, citing statistics portal Statista's projection that online sales in Thailand will double by 2025.
However, Mr Nuttapon acknowledged that negative macroeconomic sentiment is likely to take a toll on consumer purchasing power, including in the e-commerce sector.
But fast-moving consumer goods still have strong growth as people order daily use products online in the same way they order luxury goods, he said.
According to Mr Nuttapon, the company aims to raise Series B funding by the second quarter to step up its regional expansion and boost sales.
Apart from providing end-to-end solutions for 100 leading brands, the company plans to roll out software-as-a-service, including chatpify, a conversational commerce solution that works with e-marketplaces and social media channels, and Bluedock, a fulfilment centre management software.
The firm is reinforcing the potential of its existing flagship brands, such as HomeHuk household items and XtivePro exercise equipment, while increasing the variety of products and overseas drive for Womankynd, a clothing brand for women, and Ergonomate, an ergonomic chair brand.
"By having our own brands, this will enable us to diversify risks and pursue sandbox testing for new products for our customers," said Mr Nuttapon.
N-Squared aims to increase the proportion of revenue from the overseas market from 30% in 2021 to 40% in 2024, while it strives to become the leading e-commerce solutions provider in Asean, he said.
The firm is adding sales channels for customers, mainly through social commerce, including Facebook, TikTok, Line and brands' own websites, said Mr Nuttapon.