Ztore.com Secures US$8m Series B Funding
Hong Kong, October 15, 2018 - Ztore.com, one of Hong Kong’s largest online shopping platforms, announced that it has raised US$8 million (over HK$62 million) in Series B funding, led by Welight Capital followed by Kwai Hung Group. Since 2015, Ztore.com has raised over US$20 million (over HK$150 million) of funding.
As a Hong Kong-based ecommerce startup, Ztore has revolutionized the way Hongkongers shop for daily necessities with premium product selection, secure certified payment gateways and convenient delivery services. Within 24 months, Ztore had recorded over 200,000 users. Residents from different districts in the city have turned to Ztore for high-quality products - the online shopping platform features over 1,000 products from local brands that are made in Hong Kong, spending an average of HK$580 per order.
Danny Shum, Co-founder and CEO of Ztore.com, said: “Ztore has been serving the local Hong Kong market for the past 3 years and we are very grateful for the support from our investors who have been with us all the way. With the successful Series B financing, we will be able to advance our operating systems, develop new technologies to enhance the shopping platform, and launch new services. At the same time, we strive to lower our logistics costs and pass those savings along to customers to ensure they reap the benefits of shopping at Ztore.com.”
Founded in Hong Kong, Ztore has the vision to grow with fellow businesses in the city by empowering local brands and SMEs. There are currently over 330,000 SMEs in Hong Kong, accounting for 98% of the total number of registered enterprises, many of which are ‘micro-enterprises’ including family-run businesses, while some only produce and sell a small number of high-quality products. Ztore is committed to helping SMEs and local production houses make an online presence and reach a wider audience by providing a platform with sufficient support. In addition, Ztore adopts storytelling methods in its marketing strategies to communicate the unique value of local Hong Kong brands by sharing their touching background stories.
Ztore focuses much attention on the customer experience and will soon launch a revamped website with a new algorithm that helps predict customer preferences to recommend the best products to buy. Ztore app is also coming on the way. With the new funding, Ztore will hire and train more tech talent to develop in-house R&D that advances its warehouse and logistics management system for a more convenient and variety of delivery options for customers. In the near future, Ztore seeks to overcome the complex logistic challenges in Hong Kong and implement a streamlined delivery process.
Ztore continues to innovate new ecommerce models that fit local needs. In the third year of operation, Ztore has launched Neigbuy - a new community collective buying business model serving aim to serve more people in Hong Kong. Residents form a small community network with neighbors living in residential blocks nearby can order from a selection of products, ranging from fresh produce and groceries, specially curated for each community by Neigbuy Team every day.
Despite Hong Kong lagging behind in ecommerce with ecommerce absolute numbers accounting for just 4.7% of total sales, significantly lower than 14.6% in APAC, revenue is expected to show annual growth of 8.6% from 2018 to 2022. Free Wu Xiaoguang, Co-founder of Welight Capital (former Senior Executive Vice President of Tencent) said: “Ztore has a great business idea and operation model that not only is growing rapidly, but it is also leading the growth of the whole retail industry in Hong Kong. We are a true believer in the team who delivers a better living to Hongkongers. We are very positive about the prospects of Hong Kong ecommerce, and are delighted to support Hong Kong startups with great potential such as Ztore.”
While laser-focused on the local market, Ztore will continue to explore overseas and aims to develop cross-border ecommerce in the next 2 years, bringing local brands to markets in the APAC region.
About Ztore.com Ztore.com is one of Hong Kong’s fastest growing ecommerce startups that has revolutionized the way Hongkongers shop for daily necessities with premium product selection, secure certified payment gateways, and convenient delivery services. With the mission of “Deliver A Better Living”, Ztore curates a wide range of niche products that are high quality and natural on the online shopping platform. Customers enjoy shopping at Ztore as they can schedule delivery time according to their own busy schedules, saving the time and effort they used to spend on queueing, comparing prices and carrying the goods back home. Ztore adopts advanced technology to restructure supply chain and streamline the customer journey, for a seamless shopping experience.
Founded in 2015, Ztore.com is backed by venture capitalists including Welight Capital, Kwai Hung Group, S.F. Express Co. Ltd. and Vectr Ventures.