PUTRAJAYA: Ejen2u International Sdn Bhd expects to expand its one-stop reseller management platform to Indonesia by its second quarter ending June 30, 2023, once it has secured investment, as it sees a market gap in the country, which it hopes to fill..
According to founder and CEO Sheikh Ezaiddin, there is no platform akin to Ejen2u’s that is present in the Indonesian market. Noting that Indonesia is similar to Malaysia in terms of culture, he reckoned that there is a huge potential to be explored in the country and considered it to be the “lowest hanging fruit”.
He disclosed that the company is in talks with two potential Indonesia-based strategic partners, but there is no “concrete agreement yet”.
However, he said that an agreement could be finalised by second-quarter 2023. Once funds are in place, he expects that it will take six months to build a presence in Indonesia.
Ejen2u is in the midst of a venture capital Pre-A series funding round and Ezaiddin disclosed that two or three investors have been identified.
“(We are going to use the proceeds) to scale our products. We have three products, one is EjenGo, a reseller management platform, another one is Wemap which is a business education technology platform for resellers, and also EjenVenture, a platform to help big brands and corporations to establish or create a new distribution channel using resellers,” Ezaiddin told SunBiz.
He expects 60% of the proceeds to be distributed to EjenGo and about 10% to its Indonesian expansion plans.
On the company’s target, Ezaiddin said that it is trying to triple its revenue growth this year compared with last year. Since its launch in 2019, the company has registered about RM473 million in gross merchandise value transactions.
On revenue contribution last year, he shared that EjenGo contributed around 83%, Wemap 9% and EjenVenture 8%. This year, the company aims for EjenGo to contribute up to 60%, Wemap 20% and EjenVenture 20%.
In terms of outlook, Ezaiddin noted that the reseller market is normalising despite peaking at the height of the Covid-19 pandemic due to the movement control order.
However, he is not worried because he believes that the reseller market will continue to thrive and “exist”, pointing out that the market has been in existence since the early 1950s with the presence of brands such as Avon and Tupperware.
“For the founders or brand owners, they know that if they compete in retail, it’s very difficult for them to manage the cash flow or to compete with all these big brands. So the best options for them are resellers,” said Ezaiddin.
In addition, he observed that the younger generation are generally more interested in gig jobs compared with full-time jobs, whereby typically men gravitate towards immediate cash businesses such as food delivery services, while women are more inclined to be involved in direct selling.
Ezaiddin said the company provides a comprehensive reseller management platform which is made up of a multi-tier structure, which involves stockists, agents and dropship.
In terms of how it differentiates itself from competitors, he said that unlike some companies, it has an ecosystem which offers more than one product.
“We are not limited to only these three product features, we will add more to solve more pins (computer programme) in the market,” he added.
Moreover, Ezaiddin said, the company has structured its platform based on the guidance of a subject matter expert with over 20 years of experience, who is also a business partner.
To date, the company is solely focused on a business-to-business model and does not have any plans to offer business-to-consumer services “at the moment”.
Ezaiddin said Ejen2u is aiming to have 800 brand owners or companies subscribe to its services this year. Currently, it has 400 brand owner subscribers.
Products that are sold by its resellers range from food & beverage, beauty, health, fashion, lifestyle and homeware.
In terms of product projections, Ezaiddin expects beauty products to be the main driver for the company, due to its reseller demographics which are mostly made up of women (85%), who are involved in selling beauty products.
Ezaiddin says there is a huge potential to be explored in Indonesia and considers it to be ‘lowest hanging fruit’.
Source: The Sun Daily
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