- Social commerce platform provider Netccentric (NCL) has partnered with Innovatic Commerce (ICS), which operates eShoplive.Asia, a social live commerce platform
- Since launching in August 2019, eShoplive has built an active customer base of over 30,000 and saw monthly revenue grow by 4760 per cent in 16 months
- Netccentric's subsidiary, Nuffnang Live Commerce, will be the exclusive partner to all of eShoplive's commerce activities for an initial three years
- Netccentric will also become a 5 per cent shareholder of eShoplive for RM1,551,872 (roughly A$481,450) which it will fund via existing cash reserves
- The partnership is mutually beneficial as it supports Netccentric's growth strategy and gives eShoplive the technology it needs for order management, payment and fulfilment
- Netccentric ended the day with shares closing 10 per cent in the green at 16.5 cents
Netccentric (NCL) has secured a strategic partnership with Innovatic Commerce (ICS), which operates eShoplive.Asia.
ICS launched the social live commerce platform in August 2019 which marked Malaysia's first supply-to-business-to-customer (S2B2C) platform.
Since then, eShoplive has sold more than 300 stock-keeping units through its live streaming platform and has built an active customer base of over 30,000 users.
In terms of revenue growth, the platform has seen monthly revenue grow by 4760 per cent from RM25,000 (roughly A$7756) in August 2019 to RM1.9 million (roughly A$589,763) in December 2020.
Netccentric believes there are many similarities between its business and ICS', particularly with its Nuffnang Live Commerce platform.
Netccentric's platform allows consumers to use their devices to immediately buy advertised products from an influencer's live video stream. The innovative platform was launched in the 2020 financial year to tap into the booming influencer marketing industry worldwide.
"We are delighted to partner with Netccentric and look forward to having their best-in-class eCommerce technology support our growth in transactional value. We expect this development to enhance the user experience for eShoplive’s customers, vendors and suppliers as we continue to boost engagement with our platform," eShoplive CEO Jorvy Tan said.
Under the partnership, Netccentric's subsidiary, Nuffnang Live Commerce, will be the exclusive technology, payment and fulfilment partner to all of eShoplive's live commerce activities for three years with an option to extend for a further three.
Nuffnang will earn volume-based and transaction-based fees from eShoplive.
Netccentric will also acquire a 5 per cent interest in ICS for RM1,551,872 (roughly A$481,450) which will be funded from existing cash reserves.
"We are pleased to partner with eShoplive and excited by the potential of our investment in their platform. The price of our investment in ICS represents a 2.5 times of their 2021 forecast revenue, which in our view presents compelling value in light of ICS’ rapid growth," Netccentric Executive Chairman Ganesh Kumar Bangah said.
Ganesh also believes the partnership will significantly boost gross merchandise value, which will provide revenue and cashflow to fund ongoing growth.
Netccentric ended the day with shares closing 10 per cent in the green at 16.5 cents.