Vietnamese e-commerce firm Tiki set to raise over $100m in upsized funding round

Vietnamese e-commerce major Tiki, which we reported in March was raising a $75-million funding round led by private equity firm Northstar Group, is now looking at a larger financing deal.

We have learnt that the round has been upsized to $100 million with the backing of the firm’s existing Korean investors, including Korea Investment Partners, STIC Investments and Sparklabs Ventures.

If Tiki reaches certain KPIs set by the investors, it could even raise as much as $150 million in this round, a source familiar with the development told DEALSTREETASIA.

When contacted, Tiki executives declined to comment.

The Ho Chi Minh City-based company has been the second most popular e-commerce business in Vietnam after taking over Alibaba-backed Lazada in the last quarter of 2018. It continues to trail Sea Limited’s Shopee in the market.

The latest financing for Tiki follows a $44-million investment led by Chinese e-commerce giant JD.com in January 2018.

Earlier this month, Tiki and local warehouse management firm Unidepot announced a collaboration to expand the former’s logistics network, starting with a 10,000-square metre fulfilment centre in 2019. The Vietnamese marketplace firm prefers to build its in-house logistics capacity and promises two-hour deliveries in cities where it owns warehouses.

E-commerce companies in Vietnam are still making losses, and Tiki is no exception. The firm reported accumulated loss of about VND 1 trillion over the last few years.

At the event with Unidepot, Tiki CEO Tran Thai Son said the losses were primarily due to the firm’s investments in infrastructure, especially its fulfilment centres. “Starting with 100 square metres, Tiki now owns over 30,000 square metres of fulfilment centres, which is expected to reach 100,000 square metres in the next six to eight months,” he said.

Son said his ambition for Tiki was to become the leading supply chain service provider not only for the e-commerce sector but also for the country’s logistics industry.

“Supply chain is a billion-dollar industry in Vietnam with surprisingly rapid growth. However, Vietnam’s supply chain has not achieved its peak efficiency. For example, for an order worth 10 dong, logistics costs can be up to 2.5 dong.”

Tiki is understood to be Northstar’s second investment in Vietnam after a $50-million funding in Topica Edtech Group last year. Korea Investment Partners is an investor in local digital entertainment platform Appota while STIC Investments has invested across different sectors 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.