Vietnam’s homegrown e-commerce company Tiki is raising $150-200 million in its latest funding round that is said to close in the next few months, five sources aware of the development told DealStreetAsia.
Tiki is said to have last raised a sum of $130 million in a round led by private equity firm Northstar Group, as reported by DealStreetAsia in June 2020.
Existing investors in the startup are believed to be participating in the new round, the people mentioned above said.
The JD.com-backed e-commerce company is also offering corporate bonds through a private placement issue of 1 trillion dong ($44 million) to raise short-term capital. This is the first time Tiki is issuing bonds to raise capital.
When contacted, Tiki declined to comment on its new funding round.
Last year, the planned merger between venture-backed e-commerce companies Tiki and Sendo, one of the most anticipated transactions in the country’s fledgeling tech ecosystem aimed to take on bigger rivals, fell through as shareholders of both the startups did not agree on merger terms.
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.
Founded in 2010 as a platform for selling books, Tiki has since grown into an e-commerce platform operating an online marketplace, fulfilment centres and logistics network.
Last year, Tiki added new services to its offering including TikiPro that helps with the installation of home equipment and raw food delivery service TikiNgon. Tiki also operates a unit called TikiTrading to distribute certain product categories.
DealStreetAsia has also learnt that Tiki plans to make its public market debut on the Vietnamese stock market in 2023. In the next five years, Tiki is said to be looking to develop its financial services play by offering solutions to Tiki’s customers through collaborations with financial institutions and banks.
Tiki’s latest funding round, once it materialises, would count among big-ticket deals in Vietnam’s tech ecosystem.
Among other major funding rounds closed by Vietnamese tech startups, M-Service, the company behind e-wallet MoMo, raised over $100 million in a Series D round earlier this year.
DealStreetAsia recently reported that VNLIFE, the parent firm of Vietnam’s digital payments major VNPAY, is understood to near the completion of an over $200-million fundraising round.
DealStreetAsia had reported in 2019 that VNLIFE was in talks to raise up to $300 million from SoftBank Vision Fund and Singapore’s sovereign fund GIC Pte. The company chairman had later confirmed securing capital from the two investors.