Vietnamese private equity firm Vietnam Investment Group (VI Group) has invested in Kid Plaza, becoming a minority shareholder in the mother-and-baby segment focussed retailer.
A top company executive has confirmed the investment to DEALSTREETASIA. Its value, however, was not disclosed.
Founded in 2009 by CEO Do Van Tuan, Kids Plaza owns 72 supermarkets nationwide and an online retail channel, offering over 10,000 products for mother and children.
VI Group is a private equity firm that focuses on high growth businesses in Vietnam. Founded in 2006, the PE firm provides early-stage and expansion capital to industry-leading companies and works with management to grow revenue and margins and improve operations, thus creating shareholder value.
It is now managing three funds with a total value of $400 million. The firm often takes a majority stake where it has industry expertise (via operating partners or co-investors) and is able to add significant value. Its investment can take the form of pure equity, performance-linked equity or convertible debt. VI Group targets an investment horizon of four to six years.
Currently, VI Group is investing in many sectors including transportation and logistics services, tourism and hotel, education, restaurant retail chain, real estate, and technology.
There are some 1.6 million newborn babies every year in the country, according to research firm Intage Vietnam. This market is valued at around $2.5 billion per annum and is expected to grow to a size of $5 billion in the near term, proving to be an attractive bet for the investing class.
Last February, Daiwa-SSIAM Fund II, the second partnership between Japan’s Daiwa Securities and Vietnam’s SSI Asset Management, invested an undisclosed amount into baby and mom retail chain Concung (Beloved Baby).
The transaction value was not disclosed, but the Vietnamese fund manager said the Daiwa-SSIAM Fund II typically invested $4-6 million in a private equity portfolio.
Meanwhile, ACA Investments, the private equity arm of Japanese diversified corporation Sumitomo, injected an undisclosed amount into Vietnamese baby product retailer Bibomart in exchange for a 20 per cent stake last May.