Ensogo gets another $29.3M to dominate Southeast Asia

Ensogo is at it again. Just last month, the ecommerce firm raised US$12.5 million from Hong Kong-based investment firm Ward Ferry Management and Chinese online discount retailer Vipshop in total. Today, it announced the raising of another A$38.1 million (US$29.3 million) from a number of Australian and Asian institutional investors, as well as Vipshop. The latter contributed A$3.1 million (US$2.4 million) to the heavily oversubscribed funding round, maintaining its 10 percent stake in the company.

According to a statement, 189 million new shares will be issued at A$0.185 (US$0.14) each. The fresh funds will go into marketing efforts to drive customer acquisition and retention, as well as the development of Ensogo technology platform, including its logistics and fulfilment systems. Specifically, A$29 million (US$22.3 million) will go towards the former, with A$2 million (US$1.5 million) being channeled towards the latter.

“On completion of the placement and Vipshop’s top-up, the additional funding will mean that we are well-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,” says Ensogo CEO Kris Marszalek.

“We believe the recent investments from Vipshop, and other large global institutional investors, is recognition of the opportunity Ensogo has to be the dominant flash sales player in Southeast Asia.”

Ensogo was previously acquired by iBuy Group, which was operating in six countries under a variety of brands early last year. It was only in November that the latter rebranded as Ensogo.