Chinese e-commerce giant to step in Vietnam's market
China’s second largest e-commerce firm JD.com has become one of the largest shareholders at Tiki, a Vietnamese online retail service.
In the Series C investment round, JD.com decided to invest in Tiki for a reported amount of VND1 trillion (US$44 million) to become its main shareholder alongside VNG Corp, a Vietnamese entertainment and social media firm, announced JD.com.
Vietnam is one of the fastest growing e-commerce market int he world.
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Meanwhile, Tiki is one of Vietnam’s leading B2C e-commerce platform. In 2017, the company was included in the top 10 most influential companies of the decade (2007 – 2017) in the development of Vietnam’s internet industry.
Tiki will cooperate with JD.com in broad range of services, including merchandising, cross-border trade, logistics and fulfilment as part of the agreement. The two companies plan to deliver a wider selection of global brands to consumer while helping Vietnamese local brands expand internationally via JD.com’s global platform.
“JD and Tiki share the same business philosophy: to win market share by winning consumers’ heart,” said Tiki’s founder and CEO Son Tran.
“Since inception, Tiki has always focused on best-in-class, authentic shopping experience and amazingly fast delivery. We believe JD.com, with its proven track record in superior user experience, procurement, logistics, and technology will be an invaluable asset for Tiki as we work to become Vietnam’s top e-commerce platform”.
Previously, Tiki had raised its first round of funding in 2012 from Cyberagent Ventures before securing a Series B investment from Sumitomo Corporation. In May 2016, VNG Corp invested US$17 million in Tiki for an exchange of 38% the company’s shares.
The move is seen as part of JD.com global strategy in tapping in the fast growing Southeast Asian e-commerce market. Previously, in 2015, JD.com has entered the Indonesian market. 2 years later, the Chinese company struck a deal with Thai conglomerate Central Group to use Thailand as a hub for servicing other regional countries such as Vietnam and Malaysia.
In last July, JD.com’s main competitor, Alibaba has invested US$1 billion in Lazada, the Southeast Asian online retailer to expand its influence in the region.
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