Anchanto CEO Vaibhav Dabhade
In a recent conversation with e27, Anchanto CEO Vaibhav Dabhade discussed the recent trends in the Southeast Asian e-commerce sector and changes since the COVID-19 pandemic. He focuses on the end of the era of supply-led growth in e-commerce.
“What we have seen in the last two to three years is that the inflexion point has been reached,” he begins.
“So, today, the supply-led growth is very much finished. The actual growth of e-commerce is where we are currently, where it is largely driven by consumers’ choices. The demand-driven e-commerce growth phase that we are in today is much slower than when it was supply-driven. We are at the point where e-commerce is becoming more predictable, but we can assess and forecast much better.”
Dabhade also notes that after a period of cash-burning by brands and e-commerce platforms to generate demand through promotions, they have finally toned down to a level of normalcy. “Discounts are getting to a normal level; we also started to see that spending has become much more realistic. Many small businesses survived post-pandemic, but brands that were grown solely by discounts did not.”
“Marketing-led correction has not had a good time since the pandemic.”
Responding to these changes, Anchanto shifted its focus to adapt to changing market conditions. The e-commerce and logistics solution provider now focuses on the mid-market and enterprise segments of its customers.
To deliver high-quality service, Anchanto educates its customers about the importance of paying a worthy price. “When you start to go with platforms purely driven by discounts, you end up paying more in the long run. Many brands also realise that when they use a logistics company and cheap software, they will eventually struggle. They can’t scale … as they don’t get the needed expertise and depth.”
“This is why we are very cautious about price points. To whom do we sell? How do we sell? At what price point? We’ve been more selective about that lately.”
There is also a greater emphasis on product functionality, as Anchanto promotes its platform as a tool to provide insights, not just to help with logistics or warehousing.
“We give them a much deeper insight based upon the data we have with us, which is helping them to make better decisions.”
On being a growth stage startup in e-commerce and logistics
In a recent interview with e27, published exclusively for Pro members, Dabhade spoke about the key milestones that Anchanto had achieved recently.
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Apart from operating in 11 countries, the company hired senior roles and entered unique segments such as the B2B and Muslim commerce segments.
According to the CEO, significant milestones that Anchanto has made include hiring senior roles that it has been expecting to do for a long time, such as a Chief People Officer and a Chief Product Officer. It has also acquired customers from specific segments, such as the B2B and Muslim commerce segments.
“We see good tractions coming from the Muslim fashion industry in Southeast Asia,” Dabhade says.
Having raised a US$12 million Series C funding round in 2020 from MDI Ventures and Ascendia, Anchanto claimed to have achieved profitability even back then.
“We are super proud that, in 2023, we grew Anchanto by 42 per cent. We are very, very proud of delivering that level of growth in the current economic situation,” Dabhade says.
“We believe this shows that we are on the right track and can grow further. In a lackadaisical market situation, our business model is working.”
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Image Credit: Anchanto
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