Kilo, a Vietnamese B2B e-commerce platform for small and medium-sized enterprises, raises $5 million ahead of Series A

Kilo, a Vietnamese B2B e-commerce platform that connects wholesalers with micro, small and medium-sized enterprises (MSMEs), wants to digitize the local retail value chain through technology.

“In Vietnam, micro, small and medium-sized enterprises are the backbone of the retail economy, accounting for 80% of all purchases,” said Kilo CEO and founder Kartick Narayan.

The Kilo platform and tools enable local small and medium-sized enterprises to manage their business across multiple sales channels, such as the Kilo app, Facebook and Zalo, and optimize inventory turnover for long-term cost savings and risk reduction.

Small and medium-sized store owners have a one-stop-shop where they can browse, build a cart and, with transparent pricing, check a wide range of merchandise and detailed inventory information through the Kilo platform and tools, Narayan said.

Kilo was founded in 2020 by Narayan, former Groupon CMO, Coupang Vice President and TIKI Corporation Chief Business Officer. The startup has retained thousands of small and medium-sized enterprises across 24 provinces in Vietnam, said Ryan Wilber, head of product and engineering at Kilo. According to Narayan, Kilo, which has grown its net merchandise value 320 times since its launch in October 2020, targets Vietnam’s approximately $180 billion retail market.

The Ho Chi Minh City-based startup announced today that it has raised a pre-Series A round of $5 million to fuel its growth.

The latest financing was co-led by Altos Ventures, which represented the VC firm’s first investment in Vietnam, and January Capital, with participation from previous backer Goodwater Capital, Ascend Vietnam Ventures, Decisive Capital Management, Ratio Ventures and other angel investors. Narayan noted that the pre-Series A prize total has increased to $5.7 million.

Kilo will use the new capital to quadruple its team and improve its customer platform over the next 12 months. The company also plans to add features such as financing, logistics and the creation of self-service e-commerce stores for small and medium-sized enterprises.

“Our mission has taken on new meaning during the pandemic as Kilo has enabled the growth of offline SMEs by transforming the purchasing process from face-to-face interactions to an online, contactless process. Customers across the country have been vocal about how Kilo has kept their businesses running and their families safe during the pandemic,” Narayan said.

“They will revolutionize the traditional retail industry in Vietnam with their maniacal focus on customer and technology. The breadth of knowledge and experience the team brings to the market is unique and unmatched in the region,” said Richard Song, partner at Altos Ventures.

“We strongly believe in supporting founders who enable small and medium-sized businesses to be more successful in emerging markets, and this is an area where Kilo has demonstrated significant success,” said Benjamin Dunphy, partner at January Capital.