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Malaysia's Exabytes ramps up regional expansion, buys Singapore based USONYX

AvantiKumar | Aug. 7, 2014
Overseas business will grow 20% for FY2015, said Exabytes CEO Chan Kee Siak, who has also announced a new logistics service called EasyParcel in Malaysia.

GroupShot - Exabytes modified 

Photo - (From left) Chan Kee Siak, CEO & Founder of Exabytes Group of Companies; Frost Chen King Peng, Chief Technology Officer of EasyStore; Alan Kok, Vice President of Sales, EasyStore' and Clarence Leong Chee Yee, CEO of EasyParcel.


Malaysian web hosting provider Exabytes Network [Exabytes] has expanded regionally with the acquisition of Singapore based web hosting service USONYX and expects to expand overseas business by 20 percent for financial year ending 2015, it said.

"Exabytes has completed the acquisition of USONYX with the purchase of one hundred percent (100 percent) of its shares; immediately putting Exabytes in clear leadership position as a significant web hosting provider in the region, in terms of market share and revenue," said Exabytes chief executive officer, Chan Kee Siak, adding that a total revenue of RM30 million [US$9.38 million] was the target for FY2015.

Established 2006, USONYX was a wholly-owned Singapore subsidiary of Japanese company, Clara Online, and provides server hosting services to more than 3000 small- and medium companies, he said.

"I am confident that Exabytes' business will be further accelerated by the growing regional market demands for Web hosting, in view of that Southeast Asia [SEA] is being identified as one of the world's fastest-growing markets for e-commerce. On average, the market is expected to grow by 37.6 percent to reach RM113.85 billion (US$34.5billion) by 2018 [Marketresearchworld]," said Chan.

 "Web hosting is fundamental to the setting up of online businesses for e-commerce trade. In addition, according to research, Singapore was the largest e-commerce market in SEA in 2013, therefore, it is only logical that we select Singapore as the first marketspace to kick start our regional business expansion," he said.

In FY2014 (ended as of 31 March 2014), Exabytes reported a total revenue of RM21 million [US$6.56 million], said Chan The company is targetting to achieve 50 percent of overall growth in revenue by fiscal 2015, said Chan "Moving forward, we are eyeing more acquisitions or partnerships in the region to accelerate our market share growth. As planned, we are preparing to penetrate Indonesian market in the 4th quarter of 2014."

 Malaysia's first single-point logistics service

In addition, Chan announced EasyParcel, an integrated single-point logistics service. "EasyParcel essentially combines the service availability of up to five established logistics and shipping services providers such as Poslaju, Skynet, Airpax, Nationwide and DHL into a single integrated e-commerce platform."

"Exabytes is a strong propagator of e-commerce amongst the thousands of local SMEs, and we realise logistics efficiency is becoming the key differentiator for 'e-retailers' to succeed," he said. "Online retail businesses can easily damage their hard-earned reputation with late or wrong deliveries due to inefficient logistics and return processes."

Chan cited a recent EasyMall survey, which showed about 80 percent of online shoppers in the Southeast Asia region said that shipping and delivery mode was a key deciding factor when shopping online.

"The launch of EasyParcel by Exabytes as a strategic initiative - addresses this challenge by bringing together all the major logistics providers into a single, very easy to use and track e-commerce platform in order to facilitate fast and competitive shipping services as required by EasyStore and any other e-retailers," he said.

"Currently EasyParcel only offers domestic shipping services but we are actively looking to partner with more logistic providers to extend the platform with international shipping options with the inclusion of players such as DHL, UPS, TnT and FedEx," Chan added.


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