Shah Alam, June 21: Synergy House Berhad, a cross-border e-commerce seller and furniture exporter that specializes in affordable ready-to-assemble (“RTA”) home furniture announced today that its wholly-owned subsidiary, Synergy House Furniture Sdn. Bhd (“SHF”) completed the subscription of 1,000 ordinary shares for USD 1.00 each representing 100 percent of the paid-up share capital in Synergy House Furniture Inc for a total cash consideration of USD1,000.
With the completion of the subscription, Synergy US is now a wholly-owned subsidiary of Synergy House through SHF.
Executive Director of Synergy House, Tan Eu Tah said “We are truly excited with the successful subscription of shares of Synergy US, as this will play a crucial role in the continuous expansion of the company and riding on the wave of growing global e-commerce furniture market. Having a subsidiary in the United States of America (“USA”) will enable the Group more flexibility to onboard to more e-commerce platforms in the USA and to further grow our business-to-consumer (B2C) sales segment. We see the USA as having huge potential with a large e-commerce furniture market and this move will further accelerate our growth in our B2C segment and in the USA market.”
Synergy-US was incorporated on July 7, 2022, in the state of Oregon, USA, and will be utilized by the Group as another channel to expand its sales of RTA home furniture within the USA.
Synergy House’s business model is centered on an efficient and asset-light model whereby it outsources all manufacturing to third-party manufacturers and focuses on the sale of home furniture via both business-to-business (B2B) and B2C sales channels. For the 1st quarter that ended March 31, 2023, the Group recorded a total B2C sales of RM24.2mil which is approximately 49 percent of the Group’s total B2C sales for 12 months financial year ended 31 December 2022.
The USA was the Group’s largest market contributing to approximately 49.47 percent of the Group’s total revenue for the 1st quarter ended March 31, 2023.
Synergy House made its public debut on the ACE market on 1st June 2023 and raised a total of RM 34.4 million for the purpose to fund its business expansion and repayment of bank borrowings amongst others. Tan said the company will continue to explore new markets and opportunities in the borderless world of e-commerce to ensure continuous growth.
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