Social commerce startup On Group acquires TopShip

The ON ecosystem is built based on three pillars: shipping (OnShip), financing (OnFin), and sourcing (OnMarket)

With TopShip being an aggregation platform for fulfilment and delivery, the strategic investment will allow ON to expand its product offerings and gain access to a network of 15 delivery companies nationwide.

Founded in 2017, TopShip has provided delivery solutions for more than 50,000 online sellers all over the country, serving more than 25,000 orders per day and helping sellers optimise shipping costs by up to 50 per cent. After the acquisition, TopShip will be rebranded to OnShip.

“The strategic move helps us save time and resources going into a new area instead of doing everything on our own,” Giang Nguyen, co-founder and chief executive officer of On Group, said.

“TopShip is the leading player in shipping aggregation which complements our core competency as a social commerce platform.”

Nguyen continued to explain that the acquisition would allow ON to combine both companies’ expertise and networks to become one of the biggest ecosystems for social sellers in Vietnam.

"We are committed to helping our sellers optimise costs and scale better with our shipping, sourcing, and financing solutions. That being said, we hope to increase efficiency and transparency of the whole industry with the power of technology”, he added.

Logistics has always been a challenge in Vietnam’s social commerce industry. It's estimated that logistics accounts for 25 per cent of the overall costs for social commerce. Therefore, increasing efficiency in logistics and reducing lead time is important for e-commerce to grow. Startups that tackle this problem have a lot of opportunities to acquire users and thrive in the social commerce space.

Giang Hoang, founder of TopShip said, “TopShip provides services that are the backbone of the e-commerce industry and ON is the leading social commerce platform which connects suppliers, individuals, and businesses. This merging adds more value to users and the whole market if we come together, combine our expertise, and network as one single unit.”

The deal takes place in time with a new wave of social commerce startups in Vietnam. The social commerce industry in Vietnam is expected to grow by 66 per cent annually to reach $22 billion in 2022.

The industry has recorded strong growth over the last four quarters, supported by increased e-commerce penetration and rising social commerce adoption in small cities.

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