Vietnamese Venture Capital Firm Touchstone Partners Invests in Quqo
On Tuesday, Vietnamese venture capital firm Touchstone Partners made headlines by announcing a $1 million investment in a seed round for Quqo, an innovative B2B distribution platform based in Vietnam. Quqo aims to revolutionize the fast-moving consumer goods (FMCG) sector by connecting buyers, suppliers, and end-consumers through a more efficient, asset-light model.
Touchstone Partners: A Commitment to Growth
This strategic investment by Touchstone Partners is set to empower Quqo to enhance its team and expand its customer base significantly. As stated in a recent announcement, the funds will also aid Quqo in developing its distribution network across Vietnam, with plans to extend its reach to key cities like Da Nang and Ha Noi throughout 2023.
The Vision of Quqo
Jaime Roldan, Quqo’s CEO and Co-Founder, expressed enthusiasm for supporting Vietnam’s traditional retail supply chain amid its rapid digital transformation. He underscored the complexities inherent in the current distribution system, which spans from manufacturers to retailers and is often manual in nature. Quqo seeks to streamline this process by harnessing digital tools to facilitate connections among various stakeholders in the FMCG sector.
Roldan’s passion for customer-centric service shines through as he emphasizes the importance of forming strong relationships with local mom-and-pop store owners. By enabling these businesses to access a broader range of products at competitive prices via an online platform, Quqo is fostering a more inclusive marketplace.
Unlocking Potential: Quqo’s Offerings
Quqo serves as an online platform that maximizes the potential of Vietnamese mom-and-pop store owners, FMCG suppliers, and distributor partners. By providing a user-friendly B2B marketplace and Software as a Service (SaaS) tools, Quqo simplifies the procurement process, allowing store owners to compare product offerings effortlessly.
What sets Quqo apart is its role as an asset-light third party, which does not aim to displace existing suppliers and distributors. Instead, it seeks to enhance logistics and facilitate on-demand ordering, thereby easing common friction points in the distribution process.
A Comprehensive Ecosystem
With a primary focus on effective distribution, Quqo provides a holistic retail experience by offering digital solutions tailored for mom-and-pop stores, allied suppliers, and end-consumers alike. This approach ensures that traditional retail channels are not just maintained but revitalized through modern technology.
Rapid Growth Since 2020
Since entering the Vietnamese market in 2020, Quqo has made significant strides. The platform has successfully onboarded over 40 distributors and now supports more than 5,000 stores in Ho Chi Minh City alone. Impressively, Quqo has seen an 11-fold increase in gross merchandise value (GMV) since early 2022, highlighting the demand for its services in the booming FMCG landscape.
Touchstone’s Perspective on Investment
Bobby Liu, Director of EiR at Touchstone Partners, shared insights on Quqo’s potential, noting that the startup embodies core qualities they value: experienced founders, solutions that meet market demands, and scalable offerings that align with the ongoing digitalization trend. Liu further emphasized the critical role of tap hoa (mom-and-pop stores) in Vietnamese communities, asserting that tools like Quqo’s are essential for these small businesses to remain competitive against larger chain stores.
Touchstone Partners: A Vision for the Future
Touchstone Partners stands as a pivotal player in Vietnam’s venture capital landscape, focusing on helping talented entrepreneurs maximize their businesses. Their investments span a variety of sectors, including fintech, health tech, and educational technology, always with an eye toward promoting positive social impact and innovation.
With backing from reputable financial entities like Pavilion Capital and Cercano Management, Touchstone aims to set high standards within the venture capital space in Vietnam. By championing startups that make significant technological advancements, the firm underscores its commitment to fostering growth and innovation within the local economy.