Chinese eCommerce company Vipshop has taken a cornerstone stake in southeast Asian online retailer Ensogo.
The deal will open the way for Vipshop’s inventory to be offered on Ensogo and for the two parties to share commercial and business expertise to drive Ensogo’s growth.
Australian Stock Exchange listed Ensogo has also raised US$7.5 million from the issue of nearly 60 million shares to equity fund investor Ward Ferry, through a subsidiary WF Asian Reconnaissance Fund.
Ward Ferry will now hold a 10.6 per cent stake and Vipshop 12.2 per cent. The total capital raised in the two transactions is approximately $12 million.
Ensogo CEO Kris Marszalek said to have an investor of the caliber of Ward Ferry was exciting.
“The additional AU$10m of funding means we are perfectly positioned to execute on the tremendous opportunity our strategic relationship with Vipshop brings, as well as on the enormous opportunity for eCommerce in Southeast Asia.
“As a part of the (Vipshop) strategic investment, the companies will also enter a strategic operating partnership, whereby Ensogo will have access to Vipshop’s vast volume and selection of existing inventory, all to be made available for immediate shipping. The companies also intend to cooperate in the areas of logistics, merchandising, technology, marketing and user acquisition; the very expertise, which enabled Vipshop to scale its revenues from US$32 million in 2010 to US$3.77 billion in 2014,” said Marszalek.
“We’re excited to be in the perfect position to build the Vipshop of Southeast Asia.”