Ex-Grab execs’ social commerce software firm closes seven-digit seed round

Social commerce startup Evo said it has closed a seven-digit seed round from Bonjour Holdings, SparkLabs Taipei, and Farquhar Venture Capital.

Key strategic investors and advisors in the round include Bonjour Holdings chairman Clement Chen, Maybank Singapore board member David Lee, and Visa Asia Pacific director Chew Kok Seng, among others.

The Evo team / Photo credit: Evo

Based in Singapore, the five-month-old company said it primarily plans to use the new funds to double down on the development of its software tools, with a focus on helping social commerce influencers sell faster.

What problem is it solving? Evo co-founder and CEO Roy Ang told Tech in Asia that they have observed a rising trend of people selling products through Facebook’s and Instagram’s streaming features.

“However, this group of live sellers are underserved today and they need better tools to sell better,” he added. “Typical ecommerce tools are inadequate and do not fit the purchase flow exactly.”

To help influencers gain more income and expand their reach, Evo is developing software that will help social commerce personalities optimize their back-office operations, allowing them to sell more products and scale faster. Its technology also aims to help brands and merchants connect with influencers more effectively and directly.

The company plans to offer its technology with a software-as-a-service model, letting livestreamers pay only as they use.

What are the opportunities and the challenges? “We believe that social commerce is the natural evolution of ecommerce in Southeast Asia, where savvy customers are seeking social validation before purchasing,” said Ang.

According to an October 2019 Econsultancy survey, Southeast Asian ecommerce marketers have noticed increasing ecommerce sales, with social media being a driver in this growth.

Roughly 92% of the respondents also said that positive customer social media experience has become “critical for business success.” The survey results also showed that 76% of the region’s ecommerce marketers are likely to increase their spending for social commerce technology in the year.

Right now, the ecosystem of live online shopping is estimated to have a value of around US$60 billion in China alone. “In Southeast Asia, it will be a US$8 billion market by 2025, and we believe that it will continue to grow,” said Ang.

According to the CEO, one of the major factors driving this growth is the Covid-19 pandemic. The head chief believes that the global crisis has drastically shifted the way people consider and purchase online.

“As ecommerce continues to grow in the region and purchase behavior changes, we believe that more companies and merchants will actively pursue and seek new channels to gain more online awareness and sales in order to survive,” he added.