The money will be disbursed to the Vietnamese startup within 18 months.
A marketing official told DEALSTREETASIA that the search engine developer has, so far, received $20 million in funding. The German investment deal, therefore, brings the figure to a total of $34 million.
Hubert Burda Media is expected to assist Coc Coc in expanding in the domestic online marketing segment while helping it launch its products in the Asian market. “We strongly believe that this company [Coc Coc] has been able to develop products that are highly attractive to Vietnamese users, and we are delightful to add Coc Coc to our Asian portfolio,” commented Hubert Burda Media’s Asia region president Peter Kennedy.
According to the company, the number subscribers using Coc Coc Search has touched the 23 million mark. This translates into a third of Vietnam’s internet users.
In addition to the search engine tool, the company plans to develop apps for mobile devices and expand to other markets in the region, including Indonesia, Thailand and Malaysia.
Hubert Burda Media, a well-known investor in the e-commerce industry, is one of Germany’s largest media groups, owning more than 400 printed and online publications. The company has offices in 19 countries and develops a network of 43,000 advertising partners.
Coc Coc launched the Coc Coc Internet browser in 2013. Other products include Coc Coc Search, mobile location app Nha Nha and Coc Coc advertising platform. Currently, its Internet browser ranks after Google Chrome in the Vietnamese search tool market share. According to the US-based Internet statistic company comScore, Coc Coc’s daily traffic is 8 million people, accounting for 25 per cent of Vietnam’s Internet users.
The company was founded by three Vietnamese graduates from Moscow State University, Russia – Nguyen Thanh Binh, Le Van Thanh and Nguyen Duc Ngoc. The enterprise was initially funded by Yandex, a search tool with 60 per cent market share in Russia; Mail.ru Group – the world’s seventh largest Internet company in terms of traffic; and Digital Sky Technologies, which gave Facebook an investment round of $200 million.