etaily, a leading B2B eCommerce enabler, achieved positive unit economics or profit contribution 3 (PC3) in its second full year of operations. The performance across the year exceeded each quarter’s target in 2022. The company realized year-on-year growth of 3x in gross merchandise value (GMV) and 6x in revenue. The tremendous scale has been powered by the growth of its legacy partner brands and the onboarding of several enterprise brands, most notably Reckitt Benckiser, Whole Earth Brands, Levi’s, and Skechers.
“Our PC3 positive status is a major accomplishment and a testament to the strength of our business model,” said Alexander Friedhoff, CEO of etaily. “We are confident in our ability to continue delivering value to our customers and creating sustainable growth for our company.”
The financial feat signals the scalability and profitability of etaily’s operating platform, where the company envisions to anchor its next stage of growth. Riding on the strong momentum from 2022, etaily is eyeing for 3-4x GMV growth this year, with accounting profits expected to be realized around November and December. The company surpassed its GMV targets in the first quarter of 2023 by 53%.
“The aggressive growth in managed GMV and strong control over committed costs is fueling our acceleration to profitability ahead of our original forecast,” said Joscel Delos Cielos, Director of Finance of etaily. “We are closely monitoring and controlling our contribution margin as it approaches and surpasses our committed costs in the coming months, thereafter, we will be profitable”
Early last year, etaily announced that it had secured US$4.3m in a seed extension round, on top of its initial $1.6m funding round held in 2021. With this raise, etaily plans to expand its operations in the region and develop more unique solutions for its brands. One of these solutions is an offline-to-online (O2O) cloud software that will integrate offline point-of-sales to allow instant commerce and fulfillment out of retail stores.
“With our strong finish, we intend to further invest in our products and services and bring our innovative solutions to even more customers,” said Friedhoff.
Etaily solidified its position in the market, not just by its financial results but also through market recognition. It is the only eCommerce enabler in the Philippines to receive Lazada’s 3-star certification for all quarters of 2022, an addition to the growing list of accolades that include Forbes Asia 100 to Watch 2022, Retail Asia Awards Digital Initiative of the Year 2022, and Great Place to Work 2022.
For more information, visit www.etaily.com or email [email protected].
