StoreHub announced today that it has raised $13.5 million (RM60.7 million) in its pre-Series B round. The investment was led by venture capital firm 500 Global, along with participation from existing investors Vertex Ventures Southeast Asia & India, OSK Ventures and others.
This round follows the 2020 Series A+ round, which raised $8.9 million. This pre-Series B round brings their total funding to $28.5 million.
In an interview with Vulcan Post, StoreHub co-founder and chief executive Wai Hong Fong said the new round of funding will help the company drive further investment in technological innovation while deepening the value and quality of StoreHub’s services.
Strengthen dealers sustainably
According to Wai Hong, the fresh funds will be used to further scale the number of stores using StoreHub, but “in a sustainable and healthy way.”
“Positive unit economics has always been a key feature of our scaling engine and we intend to continue to grow in this way,” explained the co-founder.
As previously mentioned, the company will also invest in technological innovation to meet the challenges faced by retailers and restaurants during this post-pandemic era.
“We’ve seen the pain of market and operational changes that businesses are facing, and we want to make sure we can do even more to empower and support them,” he said.
The press release also states that the team is considering “revenge travel” and “revenge eating” as they believe these trends will continue to influence consumer behavior in Malaysia and across the region post-pandemic.
With this in mind, Wai Hong said in the press release that retail and F&B business owners are looking for ways to improve operational efficiencies and maximize their revenue per customer. These are things he believes StoreHub’s platform can help do.
However, amid the pandemic, StoreHub has continued to grow. In the last 12 months, StoreHub said it processed over 128 million transactions worth over RM7.2 billion in gross transaction volume, a 40% increase year-over-year.
To meet this increased demand, StoreHub has expanded its team and hired over 100 new employees in the last six months.
For Wai Hong, this growth in transaction volume is a natural result of the team’s continued growth in strengthening its merchants.
“Our team has also constantly evolved to build improved processes and scalable systems to ensure our merchants have a seamless experience with the product and our service,” he said.
According to a press release, 500 Global managing partner Khailee Ng said StoreHub’s round is one of the first of many “really big bets” the company is making on its top-performing companies.
Khailee went on to explain to Vulcan Post that this is because StoreHub is “Southeast Asia’s only multi-country player with the most paying customers and the most VC support,” which puts them in a great position to build a regional giant.
Khailee also said StoreHub is creating a playbook for the rest of the world. For him, enrolling and retaining thousands of paying customers in the Philippines and Thailand is different from how it’s done in the US.
“More emerging markets will benefit from the lessons StoreHub has learned, which also paves the way for StoreHub’s future market entries,” he said.
A start for future plans
According to StoreHub, it’s come close to net profitability a few times over the years, most recently in December 2021.
“Each time we launched a round, we have prepared a financial plan that aims to achieve net profitability within an 18-24 month timeframe,” Wai Hong shared.
However, due to investor confidence and the company’s appetite for growth, StoreHub typically ends up triggering a new round before the end of those cycles is reached.
“We will continue to take a similar approach this round,” Wai Hong said.
According to the Chief, this pre-Series B round is a prelude to his Series B round that they have already planned.
Until then, Wai Hong said we can expect to see more depth in how the company is enabling traders to be more efficient and sophisticated.
Given the exponential growth in checks StoreHub has received, we’ll continue to keep an eye on this Malaysian startup.
- Learn more about StoreHub here.
- Read more about what we wrote on StoreHub here.
Credit for select images: StoreHub