Thailand ecommerce startup N-Squared secures series A funding

Ecommerce solutions provider N-Squared said it has raised an undisclosed amount of new capital in its series A round and claims to have recorded continued profitability.

The fundraise was joined by institutional investors such as KKP Capital, Siam Alpha Equity (SAE), Chan Wanich Group, AHMP, and ECG-Research, according to a statement.

N-Squared managing partner Nuttapon Boonpinon / Photo credit: N-Squared

Started in 2016, the Thai startup offers proprietary tools and technologies catered for Southeast Asia’s ecommerce landscape. It provides services such as logistics, omnichannel management, customer service, web development, and online marketing, among others.

The company also ventured into chatbots last year, developing its own AI-powered solution to capitalize on the rise of social commerce.

With the new funds, N-Squared said it aims to strengthen its core technologies and services and expand its footprint across Southeast Asia.

“2020 has been another challenging year but also full of opportunities for online businesses. We have seen a rapid change in consumers’ online shopping behaviors,” said N-Squared managing partner Nuttapon Boonpinon.

Citing internal data, the exec said that there was a 23% increase in average spending per order for the same period last year. Consumers were also buying more items per basket and have been purchasing online more frequently.

According to the company, it recorded a total revenue of roughly 1.2 billion baht (US$39.3 million) in Thailand for the year 2019.

The ecommerce market in Southeast Asia is expected to grow to US$54.6 billion in 2020 and is projected to reach US$100 billion by 2025, as per a Statista report.

“Following this growth opportunity, we are scaling our international businesses across Southeast Asia to countries including Malaysia, Singapore, the Philippines, Indonesia, and Vietnam,” Nuttapon said.

N-Squared expanded into Vietnam and Indonesia just last year, after generating a 2018 year-end profit of 37 million baht (US$1.2 million).

In addition, the company said it aims to continuously invest in its home and living brands HomeHuk and XtivePro, claiming to have already sold products to over a million customers through online channels only.

“By the end of 2020, we expect more than 1 billion baht in revenue for these brands,” Nuttapon shared.