Malaysia-based online B2B wholesale procurement startup Lapasar is targeting to serve 10,000 grocery stores, restaurants, and hawker stalls after raising RM7.5 million (US$1.8 million) in funding.
The plan, according to the startup’s founder and CEO Thinesh Kumar, will be to serve these stores over the next 24 months with extensive distribution capabilities by rolling its mobile app, Lapasar-Borong.
“We aim to be the go-to mobile app for retailers to source and buy their FMCG goods at consistently low prices, delivered within 48 hours for free,” he added.
Kumar made the pronouncement after Lapasar raised the fresh funding from startup accelerator NEXEA and shopper360 Limited. pitchIN, an equity crowdfunding platform in Malaysia, and other angel investors also participated in the funding round.
NEXEA is an early-stage venture capital firm that supports and funds high-growth tech startups in Malaysia and Southeast Asia. It brings angel investors, family offices, and corporate investors to strong startups to support them in becoming potential unicorns.
“NEXEA has been on our journey since day one. Funding us the first RM50k via the Watchtower & Friends/NEXEA Accelerator when we were merely an idea to give us clients and follow on funding,” Kumar said.
Lapasar started entering the FMCG wholesale market only in June 2020, a move that has helped the company grow 172% annually and above 100x since its funding round.
The startup has ambitions to become the largest wholesale platform in the country by 2025, targeting above RM2 billion revenues, and the largest distribution and financial services capabilities for retailers in Malaysia.
The company is also beginning to explore lines of credits with partners for the shops as a source of income, which has shown early promise, and will continue to expand on that as well, the founder added.
Commenting on the investment NEXEA managing partner Ben Lim said Lapasar has been “a very strong team in a huge market from day one”.
“NEXEA and our investors are very confident in their execution capabilities, hence our 4th round of investments into Lapasar,” Lim added.