Shopify-like VN startup gets another $2.5m to empower small retailers

Despite calling his startup SoBanHang – which translates to “sales book” in Vietnamese – CEO and co-founder Bui Hai Nam doesn’t want to follow the bookkeeping app model.

Nam describes SoBanHang as the lite version of Shopify that enables small businesses to create online stores. “The goal is for the merchants to reach more customers and increase sales, while bookkeeping is just one of our features,” Nam tells Tech in Asia.

Launched last year by Nam and his brother Bui Hai Long – both former executives at Lazada Vietnam – SoBanHang has raised US$4 million from investors, which includes a US$1.5 million round in August 2021 and another US$2.5 million round closed in February. Its backers include FEBE Ventures, Class 5, Trihill Capital, and AlleyCorp, among others.

A SoBanHang merchant / Photo credit: SoBanHang

SoBanHang is riding on a wave of startups in Vietnam looking to digitize small businesses and retailers. However, it wants to focus on serving the “nano and micro segment,” which refers to household businesses or solo sellers that cannot afford to invest in point-of-sale software and other online infrastructure.

See also: Can Indonesia’s Shopify-like startups usurp ecommerce giants?

Nam estimates that Vietnam has about 16 million small businesses, of which the “nano and micro” retailers are particularly underserved.

The pandemic has further aggravated retailers’ struggles, with most having troubles going online. “Even those who can sell via social, everything is done manually,” says Nam. “Selling on social media is like putting classified ads. You don’t really have a proper catalog or other tools to manage the orders.”

The SoBanHang app enables retailers to build an online store, create promotions, manage inventory, and track in-store sales and information about loyal customers. According to the company, its app serves about 170,000 merchants. The app is currently free, but the startup plans to roll out a subscription model soon.

Unlike other B2B ecommerce startups like Telio or VinShop that have to invest heavily in logistics and warehouses, SoBanHang remains mobile-only and asset-light, according to Nam. However, it can support its merchants with inventory or logistics through partnerships with third-party providers, he adds.

See also: A David vs. Goliath battle in Vietnam’s B2B ecommerce sector