In The Philippines, a quiet revolution is reshaping the way consumers navigate their daily lives. Online to Offline, or O2O, has begun changing the retail and service landscape. As smartphones find their way into every pocket, Filipinos are embracing the mix of digital and physical commerce, which is altering traditional business models.
In a nation where sari-sari stores have long been the heartbeat of local commerce, the O2O wave is transforming how Filipinos shop, dine, and access services. From ordering a freshly cooked meal through a mobile app to scheduling a salon appointment with a few taps, the shift towards a digital-first mindset is unmistakable. The streets of Manila and beyond are witnessing a convergence of online convenience and offline fulfillment, redefining the Filipino consumer experience. As we navigate the evolving O2O landscape in the Philippines, it’s clear that this fusion of online efficiency and offline tangibility is not just a trend but a transformative wave shaping the future of commerce in the archipelago.
To find out more, we spoke to Nishant D’Souza, Co-Founder of edamama, one of the leading O2O platforms in The Philippines. The company recently successfully closed its Series A+ funding round, raising a total of over $35 million in funding. The Ayala Corporation Technology Innovation Venture (ACTIVE) Fund, which is managed by Kickstart Ventures and supported by Ayala Corporation (AC) spearheaded the funding round. Other investors included South Korean retail behemoth GS Group, Kickstart Ventures, Gentree Fund, and Innoven Capital.
We wanted to better understand the current situation in the market, as well as delve into the company’s plans for the emerging economy. In this interview, we discussed the company’s expansion strategy will be strengthened by the funds raised from this round, which will increase its offline retail presence throughout the Philippines. The Robinsons Magnolia and Robinsons Manila malls hosted the company’s successful pilot pop-up stores.
Congrats on the funding. Could you share how the investment will be used?
This funding will profitably accelerate our offline roll-out and private label product development, providing even more value and accessibility to our customers wherever they choose to be – online or offline.
There have been reports of a slowdown in funds raised in The Philippines. Why has Edamama been able to raise round?
Our fundraising comes on the back of our demonstrated track record of driving growth while demonstrating significant improvements in our unit economics and path to profitability which we expect to attain as early as 2024.
How are you incorporating offline retail into your expansion strategy?
We have a three-pronged strategy to scale our offline presence – our own branded stores, expos and distribution of our private label brands in existing retail outlets. edamama has already opened two permanent physical stores in Robinsons Magnolia and Robinsons Manila malls, and another store is slated for opening at Ayala Vertis North before the year ends. We expect to open many more in 2024 and beyond.
In addition, we now run the largest independent retail expo in the country for parents. We did two this year and will be doubling our event count next year. Furthermore, our bean private label fashion assortment is now available in offline retail outlets including SM and Robinsons Department Stores.
Where do you see the most growth coming from?
While we have a thriving provincial customer base, we still see most growth coming from the key metro regions – Greater Manila Area, Cebu and Davao, and from mothers who require everyday essentials for their children and families.
What’s next for edamama?
Offline Retail Expansion: We plan to expand our physical retail presence across the Philippines. The funds raised from the Series A+ round will be used to support the profitable scaling of the company’s offline retail operations. The company has already opened two permanent physical stores in Robinsons Magnolia and Robinsons Manila malls, and another store is slated for opening at Ayala Vertis North before the year ends.
Private Label and Exclusive Brands Development: The funds raised will be allocated to further develop our portfolio of private label and exclusive brands. The company has experienced a quadrupling in the share of these products over the past year, and this investment will help accelerate the development and promotion of these high-quality, affordable in-house brands.