Exclusive: Social commerce platform WeBuy seeks $20m to launch financial services

Singapore-headquartered WeBuy is seeking to raise between US$10 million to US$20 million in equity and debt via an ongoing series B round as it scales its Indonesia business and introduces new services.

The company was launched in 2019 as a group-buying app primarily for groceries, but it has evolved beyond being a B2C service. Today, it runs a B2B imports business in Indonesia and offers services like travel-ticketing in Singapore.

Being a pure-play grocery player these days is “quite challenging,” WeBuy CEO Vincent Xue tells Tech in Asia.

Photo credit: Webuy

The sense of community forged between group leaders and members via WhatsApp groups remains a central element of the platform, but WeBuy is moving beyond its core product categories of fast-moving consumer goods (FMCG) and fresh produce.

Since last year, the startup has ventured into higher-ticket services like travel and soon plans to offer insurance, renovation packages, and even home loans.

Not only do these services offer better margins, but they also complement the low-ticket, high-frequency purchases on groceries that WeBuy’s existing customers already make on the platform.

On track to US$91.3 million in annualized revenue

The fundraising efforts are coming off the back of a strong 2022, according to WeBuy. Between 2021 and 2022, gross merchandise value (GMV) on the platform grew 252% year on year. Revenue also surged 220% during the same period.

According to Xue, WeBuy has achieved positive EBITDA as of the third quarter of 2022, driven by its travel-ticketing service and imports business in Indonesia. Both businesses have been “profitable from day one,” while its B2C grocery business in Singapore and Indonesia are “close to breakeven.”

The firm last raised US$6 million in its series A round in 2020. It’s now on track to hit an annualized revenue of S$120 million (US$91.3 million), based on its revenue in December 2022, Xue adds.

Indonesia has driven much of the company’s growth following its acquisition of competitor Chilibeli in April 2022. WeBuy is betting on the country’s growing middle class – tech-savvy, mobile-first consumers who are open to trying new brands and products.

Xue estimates that WeBuy has between 10,000 to 15,000 active end-customers in Indonesia, and the majority of them place their orders through mitras or group leaders, who serve the dual role of recommending products and facilitating last-mile delivery in their communities.

End-users have the option to pick up their deliveries from a mitra free of charge or pay a fee to have them delivered to their doorsteps.

Starting with mortgages

Future plans