Ztore.com, Hong Kong-based online marketplace, has raised US$8 million in series B funding led by Welight Capital followed by Kwai Hung Group.
Founded in Hong Kong since 2015, Ztore.com has raised over US$ 20 million of funding.
With the new funding, Ztore will launch a Ztore App, as well as a revamped website with a new algorithm that helps predict customer preferences to recommend the best products to buy, stated in the press release.
In addition, Ztore will hire and train more tech talents 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.
Danny Shum, co-founder and CEO of Ztore.com, said: “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.”
Ztore continues to innovate new e-commerce models that fit local needs. In the third year of operation, Ztore has launched Neigbuy – a new community collective buying business model with an aim to serve more people in Hong Kong. Residents form a small community network with neighbours 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.
Free Wu Xiaoguang, co-founder of Welight Capital, said that he was positive about the prospects of Hong Kong e-commerce, and believed Ztore’s operation model would lead the growth of the whole retail industry in Hong Kong.
Despite Hong Kong is lagging behind in e-commerce with e-commerce absolute numbers accounting for just 4.7% of total sales, significantly lower than 14.6% in APAC (according to eMarketer), revenue is expected to show annual growth of 8.6% from 2018 to 2022(according to statista). Ztore plans to develop cross-border e-commerce in the next 2 years, bringing local brands to markets in the APAC region.
As a Hong Kong-based e-commerce startup, Ztore aims to support local brands and SMEs to make an online presence and reach a wider audience. The online shopping platform features over 1,000 products from local brands that are made in Hong Kong. It recorded over 200,000 users up-to-date with an average spending of HK$ 580 per order.
Ztore adopts storytelling methods in its marketing strategies to communicate the unique value of local Hong Kong brands by sharing their touching background stories.