Tiki, one of Vietnam’s leading e-commerce websites release its semi-annual report at the end of June and it showed that Chinese investor JD.com had increased ownership in the company to 26%. Internet giant VNG had been Tiki’s largest investor, with 28.8% ownership at the beginning of 2019, but VNG’s ownership ratio fell to 24.4% at the end of June, now making it the second largest investor.
Meanwhile, JD.com has been continuously pouring money into Tiki since the end of 2017 and has now become the largest shareholder of the e-commerce platform.
Tiki was founded in Ho Chi Minh City in 2010 and initially started with selling books online. In 2011 and 2012 the company expanded the variety of products sold on its website to include beauty, fashion, health, home, living and technology products.
|The Map of E-commerce in Vietnam with results 1 ~ 5. Data from iPrice|
According to rankings of Vietnam’s top 50 e-commerce companies, Tiki is the number two website in the country. The ranking of the top 50 e-commerce companies was created by iPrice, which uses a variety of metrics, including customers, media followers, number of staff and quarterly visitor traffic through mobile apps and website.
Tiki’s Continuous Need for Capital
Like many e-commerce companies, Tiki found after launching that it was going to need lots of investment capital if it was to reach a scale that allowed it to compete with other e-commerce players, such as Lazada and Shopee.
In 2012, Tiki began its first investment round and received investment from Cyberagent Japan. In 2015 Tiki received additional investment from Japan’s Sumitomo Corporation. At that time, Cyberagent Japan owned 15% of Tiki and Sumitomo owned 30%.
In 2016, Tiki raised additional capital from VNG, which agreed to invest $17 million USD in return for 38% of shares in the company. According to VNG’s annual reports, Tiki used $16.5 million USD of its investment in 2016 and 2017.
As Tiki continued to scale it found the competitive race with Lazada and Shopee to be increasingly expensive. Tiki needed more additional capital so it initiated a “C’” round of funding and at the beginning of 2018 received its first investment from JD.com, China's second-largest e-commerce company.
Since the beginning of 2019, Tiki has continued to raise new capital. VNG invested an additional $5.22 million USD and JD.com also invested additional funds into Tiki, although the amount of new investment was not released. As a result of the new 2019 investments, the shareholder structure has changed with JD.com owning 26%, and VNG owning 24.6% of shares.