B2B embedded finance platform Toqio has signed an agreement with the global e-commerce company DSA. The partnership with the UK- and Hong Kong-based company is Toqio’s maiden step into logistics after establishing itself as a partner to corporate firms in the hospitality and pharmaceuticals sectors, among others.
DSA handles sourcing, packaging, and shipping for its 100-plus supplier network. It focuses on sourcing and shipping products from China. The partnership with Toqio is designed to strengthen cross-continental relationships and liquidity optimization by leveraging Toqio’s financial products.
A report published by Allied Market Research last year suggested the global market for drop shipping was expected to grow to $1.67 trillion by 2031 after being valued at $155.6 billion in 2021. It attributed the predicted compound annual growth rate (CAGR) of 27.1% between 2022 and 2031 largely to the rise in disposable income and the increase in smartphone penetration.
Similarly, a Straits Research report from 2022 put the market value at $222.46 billion in 2022, with an expected CAGR of 28.4% until 2031.
“It’s clear the drop shipping market has enormous growth potential. It’s particularly well-suited to an embedded finance offering because many drop shipping suppliers are relatively small companies, and these have historically been the type of companies that have struggled to access the finance they needed from traditional financial providers,” said Eduardo Martinez, CEO of Toqio. “Toqio works to offer financial products tailored to client needs in a fast and simple way, thanks to the ability to easily extract information through flexible data models that allow corporations to offer liquidity to their network of customers at the right time, gaining their trust and loyalty.”
“At DSA, we’re committed to delivering fast, reliable solutions across the entire value chain, from sourcing to fulfilment, ensuring every step is optimized for efficiency and growth,” DSA CEO Mark Deken added. “Our partnership with Toqio empowers our clients to scale faster and more consistently, avoiding the common disruptions that frequently lead to expensive setbacks. By integrating embedded finance solutions like DSA Pay, we provide our clients with seamless access to the financial tools they need to manage payments efficiently and without the bottlenecks or interruptions often faced with traditional payment providers.”
