Vietnamese startup brings e-commerce to small cities and rural areas

Newly launched social commerce company Mio is taking advantage of the fact that despite Vietnam has one of the fastest-growing e-commerce markets in Southeast Asia, many major platforms still focus on large cities. This means people in smaller cities or rural areas need to deal with longer wait times for deliveries.

As a solution, Mio seeks to build a reseller network and logistics infrastructure that offers next-day delivery to tier two and three cities, TechCrunch reported.

The startup, which currently focuses on fresh groceries and plans to expand into more categories, announced on May 21 that it has raised $1 million in seed funding mainly from Asian venture capital firms led by Indonesia’s Venturra Discovery and Singapore’s Golden Gate Ventures.

Hundreds of community resellers

Founded in June 2020, Mio now has hundreds of agents, or resellers. They are primarily women aged 25 to 35 years who live in smaller cities or rural areas. Most join Mio because they want to supplement their household income, which is usually below $350 a month.

The social commerce model works for them because they are part of tight-knit communities that are already used to making group orders together. On average, Mio claims that its resellers make about $200 to $300, earning a ten-per cent commission on each order, and additional commissions based on the monthly performance of resellers they referred to the platform.

In addition, social commerce companies typically do not require resellers to carry inventory. Instead, resellers pick what items they want to market to their buyers. In Mio’s case, most of their resellers’ customers are friends, family members and neighbours, and they promote group orders through social media platforms like Facebook, TikTok, Instagram or Zalo, Vietnam’s most popular messaging app. Then they place and manage orders through Mio’s reseller app.

More goods planned to be added

To lower logistics costs and ensure quick delivery times, Mio presently limits the number of products in its inventory. The company currently focuses on grocery staples, including fresh produce and poultry, and plans to add fast-moving consumer goods and household appliances, too, especially white-label goods that have a higher profit margin.

Mio’s new funding will be used on its distribution center, and hiring for its tech and product teams. The startup plans to add more personalisation options for product categories and resellers, so they can build their own brand identities.



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Newly launched social commerce company Mio is taking advantage of the fact that despite Vietnam has one of the fastest-growing e-commerce markets in Southeast Asia, many major platforms still focus on large cities. This means people in smaller cities or rural areas need to deal with longer wait times for deliveries. As a solution, Mio seeks to build a reseller network and logistics infrastructure that offers next-day delivery to tier two and three cities, TechCrunch reported. The startup, which currently focuses on fresh groceries and plans to expand into more categories, announced on May 21 that it has raised $1...

Newly launched social commerce company Mio is taking advantage of the fact that despite Vietnam has one of the fastest-growing e-commerce markets in Southeast Asia, many major platforms still focus on large cities. This means people in smaller cities or rural areas need to deal with longer wait times for deliveries.

As a solution, Mio seeks to build a reseller network and logistics infrastructure that offers next-day delivery to tier two and three cities, TechCrunch reported.

The startup, which currently focuses on fresh groceries and plans to expand into more categories, announced on May 21 that it has raised $1 million in seed funding mainly from Asian venture capital firms led by Indonesia’s Venturra Discovery and Singapore’s Golden Gate Ventures.

Hundreds of community resellers

Founded in June 2020, Mio now has hundreds of agents, or resellers. They are primarily women aged 25 to 35 years who live in smaller cities or rural areas. Most join Mio because they want to supplement their household income, which is usually below $350 a month.

The social commerce model works for them because they are part of tight-knit communities that are already used to making group orders together. On average, Mio claims that its resellers make about $200 to $300, earning a ten-per cent commission on each order, and additional commissions based on the monthly performance of resellers they referred to the platform.

In addition, social commerce companies typically do not require resellers to carry inventory. Instead, resellers pick what items they want to market to their buyers. In Mio’s case, most of their resellers’ customers are friends, family members and neighbours, and they promote group orders through social media platforms like Facebook, TikTok, Instagram or Zalo, Vietnam’s most popular messaging app. Then they place and manage orders through Mio’s reseller app.

More goods planned to be added

To lower logistics costs and ensure quick delivery times, Mio presently limits the number of products in its inventory. The company currently focuses on grocery staples, including fresh produce and poultry, and plans to add fast-moving consumer goods and household appliances, too, especially white-label goods that have a higher profit margin.

Mio’s new funding will be used on its distribution center, and hiring for its tech and product teams. The startup plans to add more personalisation options for product categories and resellers, so they can build their own brand identities.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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