Vietnam’s Mekong Capital invests $10m in water purifier maker Mutosi Group

Vietnam-based private equity firm Mekong Capital has invested $10 million in the water purifiers manufacturer and distributor Mutosi Group, according to a statement on Wednesday.

This investment was made through Mekong Enterprise Fund IV (MEF IV), Mekong Capital’s largest fund which secured its final close earlier this year at $246 million.

Mutosi Group specialises in water purifiers and electrical appliances that adhere to Japanese standards. The company focuses on four product lines: water purifiers, safe kitchen appliances, air purifiers, and environmental care systems, such as raw water treatment.

The company claims that after three years it has grown from 300 points of sale in mid-2019 to over 3,000 points of sale nationwide as of now. By the end-2021, Mutosi plans to increase its points of sale to 4,000.

The investment from the MEF IV fund will help Mutosi advance its R&D in manufacturing technology, increase the quality of customer experience, train & develop staff, and expand distribution, the statement said.

“Dung and his team of co-founders at Mutosi have an extraordinarily high level of interest in creating a vision-based, transformation-oriented company. They have a strong sense of purpose to bring clear air and water to Vietnamese people while helping to elevate Vietnam’s national brand in the world. Mutosi is a perfect fit for Mekong Capital, and we are really looking forward to partnering with them to achieve their vision,” said Chris Freund, Partner of Mekong Capital.

In March, Mekong Capital’s latest $246 million fund made its first investment — an undisclosed amount in local chocolate crafter Marou Chocolate Company.

Established in 2001, Mekong Capital has the most extensive private equity track record in Vietnam. Their funds have completed 35 private equity investments, of which 26 have been fully exited. Mekong Capital has advised five funds, two of which are currently active.

Mekong Capital’s investee companies have typically been among the fastest-growing companies in Vietnam’s consumer-driven sectors such as retail, restaurants, consumer products, and education. Some of their well-known investment successes include Mobile World, Phu Nhuan Jewelry (PNJ), ICP, Golden Gate, Vietnam Australia International School (VAS), Masan Consumer, Traphaco, Pharmacity, F88, YOLA, Pizza 4P’s, Vua Nem, ABA Cooltrans, and Nhat Tin Logistics.

MEF IV invests in the range of $10-35 million per deal, and can make both minority and buy-out investments, according to a statement.

It will continue to invest in Vietnamese companies and exclusively in proven consumer-driven sectors that benefit from the growth in Vietnamese consumer demand and the adoption of modern business practices.

Mekong Capital has had three other funds in the Mekong Enterprise Fund series besides the Vietnam Azalea Fund, a 2007-vintage, pre-IPO fund.

MEF III, which was launched in 2016 at $112 million, has, to date, closed nine deals and exited one company — jewellery retailer Precita.

Among the funds that Mekong Capital fully divested, MEF II generated a net return multiple of 4.6x and a net internal rate of return (IRR) of 22.7%, while Vietnam Azalea Fund generated a gross return multiple of 1.8x and a gross IRR of 10.5%.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.