OnPoint, Vietnam's leading e-commerce enabler, has acquired a 51% shareholding in Crea, one of Thailand's foremost e-commerce enablers, to strengthen its leadership in Southeast Asia.
The strategic partnership combines two industry powerhouses, creating a strong ecosystem of solutions that will help global and regional brands thrive in Southeast Asia's fast-evolving digital landscape, according to OnPoint.
Both parties signed the agreement on Monday in Thailand but declined to disclose the value of the transaction.
Together, OnPoint and Crea serve more than 250 brands, backed by their workforce of more than 600 employees in-house and more than 1,000 outsourced personnel specialising in warehousing, livestreaming and end-to-end e-commerce operations.
OnPoint and Crea share a vision to become Southeast Asia's leading and most innovative e-commerce solutions provider over the next five years.
"By combining our strengths, we are uniquely positioned to help brands succeed in the dynamic and fast-evolving digital economy of the region," Tran Vu Quang, founder and chief executive of OnPoint, told the Bangkok Post.
OnPoint raised US$50 million in a series B fundraising round in 2022 from SeaTown Private Capital Master Fund, a private equity fund managed by SeaTown Holdings International Pte Ltd.
SeaTown is a leading Asia-focused alternative investment firm owned by Seviora Holdings, Temasek's asset management group.
Mr Tran said the opportunities in Southeast Asia, particularly in the e-commerce and social commerce sectors, are significant. Although there has been no dominant regional player, many individual markets, such as Thailand and Vietnam, have strong local players.
"The e-commerce and social commerce sectors in Southeast Asia are huge, and we're excited to explore opportunities beyond Thailand and Vietnam," said Mr Tran.
Looking beyond Thailand and Vietnam, the focus is on expanding into new markets and engaging with global brands from countries such as China, South Korea, Australia and New Zealand.
Together, the partners are building a unique value proposition that blends Crea's local insights and operations with OnPoint's social commerce expertise and robust financial and technological foundations to help brands achieve sustainable success, according to Aimone Ripa Di Meana and Alessandro Piscini, the co-founders and co-chief executives of Crea.
Between 2024 and 2030, Southeast Asia's e-commerce market is poised for rapid expansion. The region's e-commerce is expected to reach $370 billion in terms of gross merchandise value by 2030 under favourable conditions, according to the "e-Conomy SEA 2024" report by Bain & Company, Temasek and Google.
As the e-commerce enablement sector continues to consolidate, Mr Tran believes the future will see two or three groups of regional players dominating Southeast Asia of the current 100 players the region.
He said that there is opportunity for the company to expand to other markets in the region through its plans to invest in local players over the next 12-18 months.
"Our focus is on finding the right partners with local talent, distribution and connections in each market. We don't have a strict timeline, but we'll keep looking for the right opportunities," he added.
Mr Piscini said the majority of people shop online. The average age of these consumers is 27, and while they're not at peak consumption yet, in 10 years, when they're in their thirties or forties with more disposable income, the market will expand significantly.
As this young demographic grows, so will the market, said Mr Piscini.
Mr Tran said OnPoint is considering launching an initial public offering (IPO) around 2027 or 2028, but it has yet to finalise in which market it will launch the IPO. The company's primary focus is building an innovative and profitable business, he said.
In Vietnam, the average person orders online 26 times a year, while in China, it's about 100 times per year. E-commerce accounts for 8% of retail in Vietnam, compared to 30-50% in China. With growing economies, expanding middle classes and rising disposable incomes in Southeast Asia, e-commerce is set for continued growth, said Mr Tran.