The maximum amount of capital Tiki can attract in the next round of funding is expected to reach US $ 150 million if some efficiency targets are met.
Source from DealStreetAsia Tiki, one of the leading e-commerce companies in Vietnam, is seeking investment deals worth up to over US $ 100 million in a funding round backed by a number of Korean investors such as Korea Investment Partners, STIC Investments and Sparklabs Ventures.
Earlier, in March, Tiki raised $ 75 million in a funding round led by private equity firm Northstar Group.
DealStreetAsia also quoted a source close as saying that if some KPI targets were reached by investors, Tiki could even raise up to $ 150 million this time. For its part, Tiki currently refuses to provide relevant comments.
According to Nikkei, Tiki is currently the second most popular e-commerce site in Vietnam after surpassing Lazada in the fourth quarter of 2018, but still behind Shopee. In early 2018, Tiki also called for a successful $ 44 million investment from JD.com.
Earlier this month, Tiki and local warehouse management company Unidepot announced a cooperation agreement to expand the logistics network, starting with a 10,000-square-foot service center in 2019.
Tiki wishes to develop its own logistics capabilities so that it can deploy two-hour delivery service (TikiNow) in the cities where it operates.
However, e-commerce companies operating in Vietnam currently still suffer losses and Tiki is no exception. The company’s accumulated losses have reached 1,000 billion in the last few years.
At the moment, TikiNow, Tiki’s two-hour delivery service, is only available in Hanoi, Ho Chi Minh City, Can Tho, Da Nang, Nha Trang and Hai Phong.
At the event with Unidepot, CEO Tiki Tran Thai Son, said the aforementioned losses mainly came from the company’s investment in infrastructure, especially operating centers.
“Starting with a mere 100 square meters, Tiki now has over 30,000 square meters of operating center and that number is expected to grow to 100,000 square meters in the next 6 to 8 months,” he said. .
Mr. Tran Thai Son hopes to turn Tiki into a leading provider of supply chain services not only in the field of e-commerce but also in the logistics industry in Vietnam. “The supply chain is a billion-dollar industry in Vietnam with a rapid growth rate. However, the supply chains have not achieved optimal efficiency. For example, for each order of 10 dong, logistics costs. up to 2.5 dong “.
Tiki is Northstar’s second investment in Vietnam after the fund poured US $ 50 million into Topica Edtech Group last year. Korea Investment Partners is an investor in the electronic entertainment platform Appota while SITC Investments has investments in many fields in Vietnam.
Thai Son / Economy & Consumer
* Source: VietnamBiz