Existing investors in the startup also participated in the new financing on a pro-rata basis, according to multiple people privy to the matter. New backers include a prominent Asian tycoon.
The funding round may increase to $150 million if more investors join the financing, sources added.
DealStreetAsia had previously reported that Tiki was raising an upsized round led by Northstar.
In addition to the Singapore-headquartered private equity firm, investors on Tiki’s cap table include Japanese firms CyberAgent Capital and Sumitomo Corporation, Vietnamese unicorn VNG, Chinese retailer JD.com, Singapore’s EDBI, as well as South Korean funds SparkLabs Ventures, Korea Investment Partners and STIC Investments.
Overseas investors collectively held a 49.7 per cent stake in Tiki, according to a business registration document updated in May.
Tiki did not comment for this story. Emails sent to Northstar and other Tiki investors had not elicited responses at the time of publishing this article.
Founded in 2010 and dubbed the Amazon of Vietnam, Tiki started out by selling books and has since grown into an e-commerce platform operating an online marketplace, fulfilment centres and logistics network.
The fresh capital is learnt to be earmarked for Tiki’s nationwide expansion of new offerings, including grocery delivery. The company has been running TikiNow, a two-hour delivery service, since 2017.
The $130 million funding round, one of the largest in a Vietnamese tech business, comes amid an attempt by Tiki and local rival Sendo to merge their businesses.
DealStreetAsia reported two weeks ago that the two e-commerce players had reached an agreement on the merger. It was also confirmed by the Vietnam Competition and Consumer Authority, which said it had received a merger notification from Tiki and Sendo.
However, the transaction is subject to approval by the National Competition Committee.
Criteria to determine if a merger is allowed include the players’ dominance before and after the deal, including their combined market share; the relationship of the businesses to the supply chain; competitive advantages after consolidation; the potential of significant pricing increases; the ability of the combine to hinder competition after the deal; as well as the possibility of promoting technology innovation and small and medium enterprises.
Vietnam’s new competition law only prohibits a consolidation activity if it “has a significant impact on reducing competition in the local market.”
Tiki was the second most popular digital marketplace in Vietnam in Q1 2020, following Sea Group’s Shopee, according to iPrice’s Vietnam map of e-commerce in partnership with SimilarWeb and AppAnnie.
Lazada and Sendo followed in at third and fourth places, respectively.