Malaysia-headquartered early-stage venture capital firm Vynn Capital has on Wednesday released the firm’s findings on cross-border e-commerce opportunities in Southeast Asia.
Small-medium enterprises (SMEs) are now finding themselves in a position that requires greater support in the form of a more efficient supply chain, as the digitalization of economies and cross-border e-commerce activities increase, the VC firm said in a statement.
Vynn Capital’s research points out the importance of technology in addressing the supply chain gap to allow for further growth, as SMEs and companies are tapping into opportunities of cross-border trades.
According to Vynn Capital, Southeast Asia, in general, sees more consumers purchasing cross-border goods as digital platforms become more mainstream. This trend has attracted more investment dollars into the supply chain industry, due to the integral role of technology in scaling logistics infrastructure to support growing consumer and SME demand.
In the case of Malaysia and Indonesia, Vynn Capital highlighted that investment volume into retail e-commerce as a percentage of total investment volume has increased to 16 percent and 36 percent in 2021, from 6 percent and 31 percent respectively in 2020.
Vynn Capital anticipates several key trends to play out in the supply chain and mobility space:
(i) Greater data sharing and integration due to digital adoption and automation across the supply chain. The adoption of Internet of Things (IoTs), and supply chain analytics will generate vast amounts of data, which will be shared horizontally and vertically to generate higher quality data-driven insights.
(ii) Autonomous electric vehicles, trucking and “innovative” ways of delivering goods will also be favored as technology becomes more efficient and productivity is prioritized, as cross-border e-commerce activity increases.
(iii) Larger enterprises to participate in the innovation cycle of mobility and supply chains, through internally developed technologies, collaborations and investments in startups over the short to medium term, allowing expansion to adjacent industries e.g. financing and insurance.
The research findings can be requested from the firm or downloaded from the website.
Vynn Capital is a Southeast Asia focused early-stage VC firm investing in early stage tech startups. As a sector-focused investor, Vynn Capital is eyeing on the supply chain and mobility industries including but not limited to logistics, travel and fast-moving consumer goods.
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