Vietnamese e-commerce platform Tiki set to raise US$100 million
In this article (5)
Vietnamese e-commerce platform Tiki is raising another US$100 million from a Northstar Group-led funding round.
The deal, was initially aiming for $75 million, but has been scaled up with support from Tiki’s current Korean backers, and may pull in as much as $150 million if certain KPIs are met.
Tiki, which acquired competing platform Lazada last year, is now Vietnam’s second-largest e-commerce player after Shopee. It attracted a $44 million investment from Chinese industry partner JD early last year, and recently extended its national logistics operations in partnership with Vietnamese firm Unidepot.
“Supply chain is a billion-dollar industry in Vietnam with surprisingly rapid growth,” said Tiki CEO Tran Thai Son. “However, Vietnam’s supply chain has not achieved its peak efficiency. For example, for an order worth 100,000 dong, logistics costs can be up to [25,000] dong.”
Tiki’s infrastructural investments have seen the firm accumulate losses of around VND1 trillion ($43.3 million) over recent years.
Questions & Answers
Q.Who is leading this new funding round for Tiki?
Who is leading this new funding round for Tiki?
The current funding round for Tiki is being led by Northstar Group. Their support, along with existing Korean backers, has helped scale up the initial funding target for the Vietnamese e-commerce platform.
Q.How does Tiki currently rank among e-commerce platforms in Vietnam?
How does Tiki currently rank among e-commerce platforms in Vietnam?
Tiki is currently Vietnam's second-largest e-commerce player. It ranks just behind Shopee, especially after its acquisition of competing platform Lazada last year, solidifying its market position.
Q.Why is Tiki investing heavily in its supply chain infrastructure?
Why is Tiki investing heavily in its supply chain infrastructure?
Tiki is investing in its supply chain because it identifies logistics as a rapidly growing, billion-dollar industry in Vietnam that lacks peak efficiency. High logistics costs for orders indicate room for improvement through their investments.
Q.Have Tiki's significant investments resulted in financial losses?
Have Tiki's significant investments resulted in financial losses?
Yes, Tiki's infrastructural investments have led to accumulated losses in recent years. These losses amount to approximately VND1 trillion, which is equivalent to about US$43.3 million.
Reader pulse
Is this funding round a smart move for Tiki?
20,227 votes so far