Vietnam’s e-commerce firm Tiki said to have bagged $130m funding

Vietnamese e-commerce company Tiki is understood to have raised around $130 million in its latest funding round led by private equity firm Northstar Group.

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.

Tiki-Sendo merger  

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.

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.

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.