Kilo Raises $5M Pre-Series A - Vietnamese B2B E-commerce
Kilo: Digitizing Vietnam's Retail Landscape
Kilo, a B2B e-commerce platform originating in Vietnam, is focused on digitally transforming the local retail supply chain through the implementation of technology. The platform specifically connects wholesale suppliers with micro, small and medium enterprises (MSMEs).
The Importance of MSMEs in Vietnam
According to Kartick Narayan, CEO and founder of Kilo, MSMEs form the core of Vietnam’s retail economy. These businesses currently account for a substantial 80% of all consumer purchases within the country.
Kilo’s Platform Capabilities
Kilo provides a suite of tools and a comprehensive platform designed to empower local small and medium-sized businesses. These resources facilitate the management of operations across various sales channels, including the Kilo application itself, Facebook, and Zalo.
Furthermore, the platform optimizes inventory turnover, leading to cost savings and a reduction in long-term business risks for its users.
Streamlined Procurement for Retailers
Shop owners benefit from a centralized hub where they can easily browse available products, construct orders, and complete transactions. Kilo’s platform offers transparent pricing and real-time stock information, as explained by Narayan.
Company Background and Growth
Founded in 2020 by Kartick Narayan, a former executive from Groupon, Coupang, and TIKI Corporation, Kilo has rapidly expanded its reach. The company currently supports thousands of MSMEs across 24 Vietnamese provinces, as stated by Ryan Wilber, Kilo’s head of product and engineering.
Since its launch in October 2020, Kilo has experienced a remarkable 320x growth in net merchandise value. The company is targeting Vietnam’s sizable retail market, estimated at approximately $180 billion, according to Narayan.
Recent Funding Announcement
Based in Ho Chi Minh City, Kilo recently announced the successful completion of a $5 million pre-Series A funding round to accelerate its expansion.
Investors and Funding Details
This latest funding round was jointly led by Altos Ventures, marking their inaugural investment in Vietnam, and January Capital. Existing investor Goodwater Capital, alongside Ascend Vietnam Ventures, Decisive Capital Management, Ratio Ventures, and several angel investors, also participated.
This pre-Series A round brings Kilo’s total funding to $5.7 million, as noted by Narayan.
Future Plans and Platform Enhancements
The newly acquired capital will be allocated towards expanding Kilo’s team by a factor of four over the next year. The company also intends to enhance its platform with new features designed to benefit its customers.
Planned additions include integrated financing options, streamlined logistics solutions, and tools for MSMEs to create their own self-service e-commerce stores.
Impact of Kilo During COVID-19
Narayan emphasized that Kilo’s mission gained increased significance during the COVID-19 pandemic. The platform enabled offline MSMEs to maintain operations by transitioning from traditional, in-person procurement to a contactless, online process.
Customers throughout Vietnam have expressed how Kilo helped sustain their businesses and protect their families during the health crisis.
Investor Perspectives
Richard Song, partner at Altos Ventures, commented, “They will revolutionize the traditional retail industry in Vietnam with their maniacal focus on the customer and technology. The breadth of knowledge and expertise the team brings to market is exceptional and unmatched in the region.”
Benjamin Dunphy, partner at January Capital, added, “We believe strongly in supporting founders who enable MSMEs to be more successful in developing markets, an area in which Kilo has shown significant success.”
