Thanks to cross-border e-commerce platforms, China remains a major exporter of consumer goods to the world in the online shopping era. It’s not just marketplaces like Amazon and AliExpress that are enabling Chinese businesses to sell overseas. Behind the scenes, a group of startups are creating software that allows exporters to figure out what to sell and how.
Dianxiaomi, roughly translated as ‘shop assistant’, is one of these ecommerce SaaS providers. The company just secured $110 million in a Series D funding round led by SoftBank Vision Fund II and Sequoia Capital China. Other prominent investors including Tiger Global Management, GGV Capital and Huaxing Growth Capital also participated.
The financing raises the company’s total investment to $210 million in 2022 alone.
Dianxiaomi is strategically located in Shenzhen, the capital of export-oriented ecommerce activity in China. Home to Huawei, Tencent and DJI, the city is also home to the largest number of Amazon sellers in the world.
Dianxiaomi started with a convenient tool that allowed sellers to list their products already sold on Taobao, Alibaba’s marketplace, for Chinese consumers on Wish with “one click”. Told Its founder and CEO Du Jianin, a former R&D engineer at Baidu, in an interview.
From there, Dianxiaomi built a suite of enterprise resource planning (ERP) software for Chinese sellers from Wish, Amazon, eBay, AliExpress, Shopee, Lazada, and the like. The company told TechCrunch that the target users are small and medium-sized sellers with 5,000 orders per day or less.
The SaaS provider itself is expanding overseas as well. It has launched localized ERP products for sellers in Southeast Asia and Latin America respectively. Globally, it claims to serve 1.5 million users and has partnered with some 50 ecommerce platforms. In Southeast Asia, it has amassed 43,000 users who are selling out in a thriving region.
The company plans to open offices in Indonesia, Malaysia and the UK, where it is looking to build a team of 20-100 employees to handle customer service, operations and other functions in each country.
Foraying into Southeast Asia is an obvious choice for many Chinese entrepreneurs, who see equal opportunities in the region as they did in their home market a decade ago.
“At its rapid growth rate, [Southeast Asia] Something like China from ten years ago. Second, the region is culturally similar to a large ethnic Chinese population, which may help promote the products. And third, orders from Southeast Asia are growing by over 100% annually,” the CEO noted in the interview.
The financing for Dianxiaomi is one of the few deals SoftBank has sealed this year in China, which was long a major destination for the investment powerhouse. But amid a slowing economy and regulatory uncertainties, the company Told It will take a more “cautious” approach to supporting Chinese startups last year.
In January, SoftBank and Sequoia Capital China injected funding In a similar venture called Shoplazza, a Canada- and Shenzhen-based company that powers direct-to-consumer brands with online store management tools.