Vietnamese e-commerce startup Tiki said to seek up to $200m in new round

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.

In Vietnam, Shopee is the leading e-commerce player in terms of users. Tiki was the second most popular digital marketplace in Vietnam in Q1 2020, according to iPrice’s Vietnam map of e-commerce in partnership with SimilarWeb and AppAnnie. Lazada and Sendo occupied third and fourth slots, respectively. Vietnam’s e-commerce market value reached around $12 billion in 2020, according to Statista.com.

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.

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.