Malaysia-based e-commerce and logistics service provider Epost has closed US$700,000 in seed funding according to a press statement. Vynn Capital, an early-stage venture capital from Kuala Lumpur, is leading the round.

The newly raised capital will be used by the company to expand business operations in Southeast Asia, acquire talents, and enhance marketing efforts.

Founded in Eastern Malaysia back in 2018, Epost has developed an online platform that serves the logistics services where businesses can connect with domestic and international customers. Its current customers include Airbnb operators, bubble tea shop businesses, pet shop businesses, supermarkets, gyms and fitness centres, traditional mom-and-pop storefronts, etcetera.

Epost also stated that it has also been rapidly growing with operations in seven Southeast Asian countries, including Malaysia, China, Singapore, Vietnam, the Philippines and Brunei. It serves five online marketplaces with 13 e-fulfilment warehouses located at key locations throughout.

“In Southeast Asia, the e-commerce logistics industry has plenty of room for growth, especially in services that enable connectivity across national borders. With Epost, we hope to transform the industry and create more value to all players throughout the e-commerce value chain with Epost’s solutions and technology,” said Tobin Ng, co-founder of Epost.

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Ng also told e27 that the Indonesian logistics market will be getting more support from the government. Unlike Vietnam, where most transactions happen to be cross border, the Indonesian government is boosting the local market by limiting the number of imported goods that can come in the region.

“The opportunities in cross-border e-commerce are tremendous. In addition to creating greater activity between markets, it also enables smaller merchants and individual consumers to tap into new revenue streams and better service. This fits into our view that eventually there will be convergence—between markets, industries, and sectors—leading up to a better ecosystem for each economy in the region,” added Victor Chua, Managing Partner at Vynn Capital.

“With our investment in Epost, it represents one of the first venture capital investments in the Borneo region and we believe that there will be more quality startups and founders coming out of the Sabah, Sarawak and Kalimantan region as a new potential business market,” he said.

As an island with territories belonging to three countries, Borneo has plenty of potentials.

The startup ecosystem in Brunei is blossoming with players such as Memori and Agrome raising funding rounds. Singapore-based multi-family office and digital consulting group Golden Equator has announced its expansion into Brunei with the launch of Golden Equator Wealth (GEW), Golden Equator Consulting (GECo), and SPECTRUM in the country.

Also Read: Indonesian logistics tech startup Waresix adds US$11M more to its war chest

In Indonesia’s side of the island, the country is currently preparing to set up a new capital city in the province of East Kalimantan. Regional tech giants such as Grab and its investor SoftBank have expressed interest to invest in projects in the new capital.

Image Credit: chuttersnap

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