3 min read

Startup in Social Commerce, ON Group, Receives $1.1 Million in Initial Investment From Touchstone Partners

Startup in Social Commerce, ON Group, Receives $1.1 Million in Initial Investment From Touchstone Partners
ON - Startup in Social Commerce

One of the social commerce platforms with the highest rate of growth in Vietnam, ON, said today that it had secured $1.1 million in seed investment from a group of backers including ThinkZone Ventures and Touchstone Partners under the leadership of the latter.

The Highlights:

  • ThinkZone Ventures and a group of investors led by Touchstone Partners helped ON, one of Vietnam's fastest-growing social commerce platforms, earn $1.1 million in initial investment.
  • More than 10,000 merchants, 90% of whom are women, have joined ON since its official launch in March of last year. Sellers typically live in tiny towns or remote areas. Each vendor that utilizes ON to sell goods has a $300 monthly earning potential.
  • Giang Nguyen, an accomplished entrepreneur and former head of technology at FPT, founded ON after establishing a network of more than a million online merchants and shippers. With his expertise, Giang knew how to make the most of this extensive network by offering services to Vietnam's quickly developing social commerce industry.
On Group Logo

Innovating social commerce platform ON makes it easier for sellers by offering an end-to-end solution that manages orders, fulfillment, refunds, shipping, and transactions, enabling anybody to start their own business. In order to advertise a product and receive a commission with ON, merchants only use social media platforms. ON takes care of the rest.

As more Vietnamese people look for methods to make money, starting an internet company has grown in popularity. However, there are certain obstacles, such as negotiating with suppliers for lucrative fees and lacking the money to invest in inventory.

Giang Nguyen, an experienced businessman, and former tech head at FPT, launched ON after creating a network of more than a million online retailers and shippers. With his knowledge, Giang understood how to best utilize this vast network by providing services to Vietnam's rapidly growing social commerce sector.

Giang saw the potential of social commerce in tier 2-3 cities and rural regions along with Dzung Luu, who formerly oversaw operations at Be, one of the largest ride-hailing platforms in Vietnam, and Minh Nguyen, a former CFO of Logivan.

Giang Nguyen, Dzung Luu and Minh Nguyen

Since its formal start in March of last year, ON has drawn over 10,000 merchants, 90% female. Sellers usually reside in small towns or rural locations. Each seller that uses ON to sell things has a monthly income potential of $300.

Vietnamese customers have been swiftly converting to internet shopping, a tendency that the epidemic has intensified. According to a recent analysis from Facebook and Bain & Company, the nation's e-commerce will have the greatest growth in Southeast Asia by 2026, rising from $11.8 billion to an expected $56 billion in gross merchandise value.

Giang Nguyen, co-founder, and CEO commented, “Social commerce is still in an early stage in Vietnam, but we believe that it is poised to gain enormous traction in the coming years. We want to build a sustainable business where sellers can actually sell and earn income with us, and therefore, one of the key areas to focus on is product quality. We also invest extensively in technology, to address challenges in sourcing products, streamlining operations, and delivery. Our vision is to become a single ecosystem that will empower every online seller in Vietnam. The fresh funding of this round will be spent on expanding our presence and developing solutions to further serve the needs of our sellers in terms of management, delivery, and capital so that they can scale the business with us.”

Adapted from vir.com.vn