Vietnam’s largest homegrown e-commerce site Tiki has reported a net loss of $116.25 million in the fiscal year that finished on March 31, 2022.
This is based on regulatory filings for Singapore-based Tiki Global Pte. Ltd., which was formed in May 2021 and currently owns a more than 90% stake of the Vietnam platform.
As of May 31, 2022, Tiki’s total liabilities exceeded its total assets by $168.9 million, according to the filings.
In Vietnam, Tiki is headquartered in Ho Chi Minh City. The name stands for two Vietnamese words that translate as “searching and economical”.
Shinhan Financial Group announced last May it had acquired 10% of the e-commerce platform for an undisclosed amount in a fresh move to expand outside financial services. The Korean giant said its two units - Shinhan Bank and Shinhan Card - divided the purchased stake at roughly 7% and 3%, respectively. The deal made the group the third-largest shareholder in Tiki.
According to the regulatory filings for Singapore-based Tiki Global Pte. Ltd., the Shinhan investment is around $90 million.
Tiki was founded in 2010 by Tran Ngoc Thai Son with his own $5,000 or so. The software engineer, who holds a Master’s degree (University of New South Wales, Australia), wrote the code himself, purchased about 100 English books from Amazon, then delivered them on his motorbike in HCMC, Vietnam’s southern economic hub.
Japan’s Sumitomo Corp. in 2013 became a strategic partner, holding a 30% stake and making Tiki the first e-commerce firm in Vietnam to receive investment from the Japanese company.
Tiki in late 2021 secured $258 million in a series E fundraising led by AIA. The American insurance group invested $60 million to become Tiki’s exclusive insurance partner, which provides health and life insurance services for clients through the e-commerce site.
Other investors in this round include Taiwan’s second-largest telecom operator Taiwan Mobile, UBS AG, Korean investment fund Mirae Asset, AppWorks, and existing investor STIC Investments.
For its own part, Taiwan Mobile said that time the firm made its first foray into Vietnam to seek a foothold there by investing $20 million into Tiki, paving the way for its upcoming business in Southeast Asia.
“The strategic cooperation with Tiki is the company’s first investment in Vietnam. It also marks the company’s first strategic and meaningful step to make inroads into the country and greater Southeast Asian markets,” Taiwan Mobile president Jamie Lin said in a release dated August 10, 2021.
The Taiwanese firm added the cooperation would also help its e-commerce subsidiary, Momo.com Inc, explore potential partners and new growth opportunities beyond Taiwan.
Though Tiki is Vietnam’s largest homegrown e-commerce site, it is the second most popular in terms of hits, behind rival Shopee of Singapore’s Sea Ltd. It also seeks to compete with Alibaba-backed Lazada.