Malaysian cross-border logistics firm Epost bags $700k in seed funding

Malaysian ecommerce and logistics firm Epost has closed a US$700,000 seed round of financing led by local VC firm Vynn Capital.

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Founded in August 2018, the startup provides consumers and companies with end-to-end cross-border ecommerce services, helping traditional businesses expand in the space. It connects businesses with online and offline distributors and helps sell their products in markets traditional logistics providers may not be able to deliver to, according to a statement.

Epost said it plans to use the new funds to further expand its operations in Southeast Asia, particularly in Indonesia and Thailand. Currently, it has a presence in Malaysia, China, Singapore, Vietnam, Brunei, and the Philippines, serving five international online marketplaces with 13 e-fulfillment warehouses throughout the region.

The startup also said it looks to enhance its marketing efforts to support customer growth in China and Southeast Asia, make new hires to help drive business growth, and develop more comprehensive offerings. Epost said over half of its orders originate in China and are delivered to destinations in Southeast Asia.

The company also said it develops tools in-house to provide a mobile-first user experience, as most of its users primarily use mobile devices to access Epost services.

“The opportunities in cross-border ecommerce are tremendous,” said Vynn Capital managing partner Victor Chua. “In addition to creating greater activity between markets, it also enables smaller merchants and individual consumers to tap into new revenue streams and better service.” Vynn Capital’s deal with Epost marks its first VC investment in the Borneo region, according to the statement.

Another Malaysian startup operating in the space is AllSome Fulfillment, which raised US$1.9 million in a seed round led by East Ventures in August last year. At the time, the startup said it had a network of 250 virtual warehouses and have processed over 500,000 items across 94 countries without owning a warehouse.