Dropee Raises USD7M to digitise the FMCG ecosystem in Southeast Asia
Founded in 2016 by Lennise Ng and Aizat Rahim, the idea for Dropee stemmed from both co-founders’ experiences with their families’ retail businesses. Since then it has grown to address the pain points of SME and enterprise retailers throughout Malaysia and regionally. Currently, Dropee works with 80,000 retailers and suppliers, including some well-known global brands.
Dropee recently raised USD3M in equity from Vynn Capital, Resolution Ventures, and others as well as USD4m in debt funding in the round. The Y Combinator-backed startup will use the funds to continue to build out the core operations, expand into Indonesia and build its credit financing business.
Trade channels in the region are still fragmented with a low level of digital penetration. Fast-moving consumer goods (FMCG) brands and wholesalers find it increasingly difficult to service retail customers without sufficient information about pricing and inventory levels throughout their supply chain.
To solve this, Dropee aims to revolutionise the way FMCG brands distribute their goods to wholesalers, distributors, and front-line retailers by providing a centralized platform to digitalise the ordering and distribution of FMCG products. The platform is able to integrate with traditional backend systems to enable brands to leverage additional insights to increase engagement and service levels throughout the supply chain. This also gives Dropee a front row seat to the economic activity of each of the retailers it supports on the platform, offering them an additional opportunity to better serve their clients with a financing proposition.
Building on its existing product suite, Dropee continues to introduce new products and services to empower retailers across the region. This includes Dropee Credit, which provides up to 60 days credit terms for each qualified retailer so that they are able to buy now, pay later on all their inventory purchases.
Resolution Ventures is proud to support Dropee as they tackle the challenge of digitising the FMCG ecosystem to increase product accessibility, transparency, and convenience for retailers. Managing Partner, Sam Gibb said, “We’re excited to work with Dropee as they continue to grow and leverage their FMCG wholesale platform to provide working capital financing to the SMEs that they’re working with in the region.”
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