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Hello reader,
Apparently, Singaporeans spend US$785 on online shopping per transaction on average, more than twice the amount spent by consumers in other Southeast Asian countries. Looking at all the packages that turn up at my doorstep, I think that’s probably true.
Aside from ecommerce platforms like Shopee (which I talked about in yesterday’s newsletter), the city-state is home to lots of direct-to-consumer (D2C) brands, adding to the options Singaporean consumers have to choose from.
I’ve bought clothes from Love Bonito, bags from The Paper Bunny, coffee from Common Man Coffee Roasters, and I’m currently typing this while sitting in a Secretlab chair.
Singapore seems to have a pretty robust D2C scene, but the real opportunity for these companies lies in expanding outside of home.
Today we look at:
- Singapore’s D2C landscape
- Indian beauty retailer Purplle’s latest fundraise
- Other newsy highlights such as an OpenAI competitor raising its series B round and VinFast speeding up its factory plans in India
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Image credit: Timmy Loen
What’s the state of D2C startups in Singapore? We look at the lay of the land.
- A question of funding: VC funding into Singapore’s D2C sector went from a high of US$61.4 million in 2022 to US$27.7 million in 2023. This funding lull is likely to continue in 2024. So far this year, only one Singaporean D2C startup – Allies of Skin – has raised funds.
- Market affairs: Singapore’s consumer spending exceeds that of many of its Southeast Asian neighbors. However, given the small size of the Singapore market, brands from the city-state need to go abroad. The US, being the world’s largest consumer market, has proven to be an important target for these companies.
- Party in the USA? At some point, investors and founders of D2C startups will want to monetize the value of their shares, and going public is one way for them to do so. While the US’ US$200 billion D2C market offers a vast customer base for Singaporean brands looking to expand, there are significant challenges associated with going public in the country.
Read more: Mapping Singapore’s leading D2C brands
Startup spotlight
Beauty and the bucks
Empowering the next generation of innovators
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