Topmot Vietnam receives seed funding

Right after the closure of its sibling eCommerce model Lingo, Topmot Vietnam has received US$1 million from investors in Asia, Europe and the US.

The funding proves that despite many online failures in Vietnam to date, there is still interest in eCommerce startups.

“Ecommerce in Vietnam is indeed not easy, specifically for B2C businesses that require a sizable up-front investment to be able to process and fulfill orders in a professional manner,” CEO Erik Jonsson said.

Topmot Vietnam has launched an iOS application to help it expand to farther areas besides Hanoi and Ho Chi Minh City. There are still opportunities in Vietnam market where people prefer to pay in cash and the logistics network remains immature.

“eCommerce in Vietnam is not a sprint, it’s a marathon, and we have to be disciplined and focussed in each step of the way,” Jonsson added.

Jonsson, a former Zalora CEO, and deputy CEO of VinGroup’s eCommerce, founded Topmot Vietnam in late 2015. Topmot’s model is different to conventional eCommerce sites, focused on flash sales and aiming to help suppliers clear excess and end-of-season inventories.

The site has built a strong customer network in second-tier cities like Can Tho, Vung Tau, Da Nang and Hai Phong, attracted by high discounts.

With 40 campaigns a week, starting at 10am everyday and lasting for five days, Topmot usually sells out of its products only a few hours after launch. Fastest-selling products come from international brands such as Shiseido, Converse, Puma and Pedro, as well as local brands such as Gosto, Kujean and Bitis.

While the defunct Lingo site’s business largely came from shoppers using desktop or laptop computers, Topmot’s traffic from mobile devices has increased 70 per cent since its launch last year.