Following the deal, TopShip will be renamed to OnShip and act as one of the three main pillars of On’s ecosystem: logistics, sourcing, and financing.
TopShip’s platform currently has more than a dozen shipping partners nationwide, which deliver about 25,000 orders per day for over 50,000 online merchants. On said that its new delivery arm will help sellers cut costs by up to 50%.
Meanwhile, On was founded last year by Giang Nguyen, Dzung Luu, and Minh Nguyen. Its platform enables users to promote products on their social media accounts and get commissions for each transaction.
The company said its rural-focused approach has helped it record strong traction with over 1.4 million users, 52,000 sellers, and over 20,000 listed products.
It added that 90% of the sellers on its platform are women, who may earn up to US$300 a month in commissions, an amount comparable to Vietnam’s average income.
TopShip founder Giang Hoang said that the deal, which comes after On raised US$1.1 million in a seed round early this year, is a “1 plus 1 equal 10” story as it enables the two firms to tap into the booming social commerce industry in Vietnam.
According to On, social commerce in the country is expected to exceed US$2 billion in gross merchandise value this year, with the figure reaching US$31 billion by 2028 at a compound annual growth rate of 57.4%.