Vietnamese e-commerce firm Tiki said to have secured $100m in first Series E tranche

Vietnamese e-commerce firm Tiki is understood to have secured the first close of its Series E round at around $100 million led by a global strategic investor.

Participating in the round were new financial investors and an existing shareholder, who is also seeking internal approval for a follow-on financing, said sources privy to the matter to DealStreetAsia. The fundraising comprised the sale of only primary shares.

Up to another $100 million will be raised in the next few months in the second tranche of the Series E round, one of the sources added.

DealStreetAsia had reported in May that the homegrown e-commerce company was planning to raise up to $200 million in its latest fundraising round.

The Series E round’s lead investor may announce a partnership with Tiki next week. The partnership will include providing financial services in the local market. “The funding will help push Tiki’s GMV growth, which stood at 50% year-on-year in 2021,” the person said.

Tiki declined to comment for this story.

Tiki’s valuation following the latest fundraising could not be ascertained. It was most recently valued at around $600 million when it raised $43 million from the sale of corporate bonds between March and June.

According to a marketing document reviewed by DealStreetAsia, Tiki’s founder & CEO Tran Thai Son held an 11.87% stake in the company, while Vietnamese unicorn VNG had a 22.27% stake. Chinese retailer JD.com held 20%, and Ubiquitous Trader Pte Ltd — understandably an entity linked to the private equity firm Northstar Group — owned 10.94%.

Other shareholders include Japan’s Cyberagent Capital, Korea’s STIC, Korea Investment Partners, and Singapore’s EDBI.

Expand Table

Tiki's shareholders

ShareholderTotal shares heldShareholding %
Tran Ngoc Thai Son2,471,70111.87
VNG Corporation4,639,53322.27
JD.com International4,172,65020.03
Ubiquitous trader2,278,84210.94
Others7,268,44234.89
Source: MSB, Mirae Asset Securities

Financial services play

“With a new lead investor coming on board, financial services will be the new growth area for the company,” the source said.

This move is part of a Southeast Asia-wide trend where tech platforms such as GoTo, Grab and Sea Ltd’s Shopee have rolled out various fintech services. “It’s quite natural for a Vietnamese tech company to build an ecosystem that includes financial services,” the source added.

DealStreetAsia could not ascertain which type of new financial services the online marketplace is going to launch.

Last year, Tiki developed new services including TikiPro, through which customers can book the installation of their purchased equipment by Tiki employees at home at a time of their choice.

It also launched the e-groceries service TikiNgon. “TikiNgon’s sales have gone up 5-7x since our launch in Q3 2020,” Tiki’s chief financial officer Ngo Hoang Gia Khanh had told DealStreetAsia in February.

Meanwhile, DealStreetAsia had learned that Tiki’s local rival Sendo, with the help of its shareholder Kasikornbank, is developing financial services for its merchants and users, including loans, installments, and even credit scoring. In 2019, Tiki and Sendo had planned a merger to take on overseas players. The companies shelved their merger intention over shareholders’ disagreement, as reported by DealStreetAsia in July last year.

Recently, Lazada sealed a partnership with Vietnam-based new retail platform The CrownX, as its parent group Alibaba invested in the latter.

Shopee, too, partners VISA in financial services for users and micro, small and medium businesses across the region. In Vietnam, the duo has roped in local lender VPBank into the partnership.

Shopee is Tiki’s strongest rival in Vietnam, with 63.7 million web visits per month in Q1 2021, which was even larger than the combined figure of Lazada, Tiki, and Sendo, according to iPrice’s Vietnam e-commerce map. Shopee also secured top ranks in iOS and Android downloads in the first quarter.

It was also said that a few special purpose acquisition companies (SPACs) have approached Tiki, but the Vietnamese company is currently focusing on its Series E fundraising as well as its business operations rather than a stock market listing.

DealStreetAsia had earlier learned that Tiki planned to make its public market debut on the Vietnamese stock market in 2023.

Vietnam’s e-commerce market reached $11.8 billion in value last year, accounting for 5.5% of the country’s total retail sales, per the E-commerce and Digital Economy Department’s data. The SE Asia e-Conomy report by Google, Temasek and Bain & Co had estimated that this sector will grow 34% annually until 2025 in Vietnam .

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.