Shinhan Financial buys 10% stake in major retail site Tiki

By Tuong Thuy
Wed, May 4, 2022 | 3:51 pm GMT+7

Shinhan Financial Group has acquired 10% of Vietnam’s largest homegrown e-commerce platform Tiki for an undisclosed amount in a fresh move by the Korean giant to expand outside financial services.

Tiki is a popular online retail site in Vietnam. Photo courtesy of the company.

Tiki is a popular online retail site in Vietnam. Photo courtesy of the company.

Shinhan Financial said its two units – Shinhan Bank and Shinhan Card – divided the purchased stake at roughly 7% and 3%, respectively. The deal makes the Korean group the third-largest shareholder in Ho Chi Minh City-based Tiki.

Shinhan Financial expects to leverage the reach of Tiki for its expansion desire in Vietnam, a tech-savvy market with a 100 million population. In addition, the Vietnamese e-commerce start-up plans to go public by 2025 for further growth.

For the 2020-2025 period, the Vietnamese e-commerce market is predicted to expand up to 34% annually to reach $29 billion, according to an industry report by Google, Singapore’s state investor Temasek Holdings, and Bain & Co.

At present, Shinhan Financial Group’s services available in Vietnam include Shinhan Bank, Shinhan Card, Shinhan Financial Investment, Shinhan Life (insurance), and Shinhan DS (information and communication technology).

Tiki stands for Vietnamese words that translate into “searching and economical”. At present, the all-in-one e-commerce platform has more than 20 million customers, over 3,000 employees and an avant-garde warehouse management system, altogether able to handle almost two million orders a month.

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.

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 100 English books from Amazon, then delivered them on his motorbike across HCMC, Vietnam’s economic hub.

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 last November 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.

Comments (1)
  • Read More
Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Three construction majors in Vietnam are interested in building an expanded expressway connecting Ho Chi Minh City with the Mekong Delta provinces of Long An and Tien Giang for an estimated VND38.6 trillion ($1.52 billion).

Infrastructure - Tue, November 19, 2024 | 8:18 pm GMT+7

Singapore, Germany upgrade relations to strategic partnership

Singapore, Germany upgrade relations to strategic partnership

Singapore and Germany have decided to elevate their ties to a Strategic Partnership to promote closer cooperation in areas of mutual interest such as security, artificial intelligence (AI) and clean energy.

Southeast Asia - Tue, November 19, 2024 | 8:01 pm GMT+7

Thailand’s rice shipment up 20% in 10 months

Thailand’s rice shipment up 20% in 10 months

Thailand exported 8.37 million tons of rice in January-October, a year-on-year increase of 20%, according to the Ministry of Commerce.

Southeast Asia - Tue, November 19, 2024 | 8:00 pm GMT+7

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s legal framework lacks consistency and the foreign direct investment (FDI) sector will soon face challenges related to the Law on Environmental Protection, says Bruno Jaspaert, CEO of Deep C Industrial Zones.

Economy - Tue, November 19, 2024 | 6:30 pm GMT+7

Vietnam shares sink on extended foreign selloffs

Vietnam shares sink on extended foreign selloffs

Vietnamese equities fell for a fourth consecutive day on Tuesday as foreign traders extended their selling spree.

Finance - Tue, November 19, 2024 | 5:10 pm GMT+7

Germany’s household product firm QuickPack to invest $32 mln in Vietnam

Germany’s household product firm QuickPack to invest $32 mln in Vietnam

Germany’s QuickPack, a specialist for household goods and hygiene products, will invest €30 million ($31.8 million) in Vietnam’s Mekong Delta province of Long An.

Industries - Tue, November 19, 2024 | 4:24 pm GMT+7

Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers

Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers

Malaysian millionaire Vincent Tan has evinced investment interest in a residential project owned by convicted tycoon Truong My Lan, chairwoman of Van Thinh Phat Group, lawyers for the latter have disclosed.

Real Estate - Tue, November 19, 2024 | 4:17 pm GMT+7

‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects

‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects

Limited consultations between state agencies and the parliament’s primary focus on wording are issues with Vietnam’s legal framework adversely affecting property and infrastructure projects, say experts and corporate leaders.

Economy - Tue, November 19, 2024 | 3:40 pm GMT+7

President Xi Jinping hastens construction of 3 Vietnam-China rail routes

President Xi Jinping hastens construction of 3 Vietnam-China rail routes

Chinese President Xi Jinping has called for more substantial cooperation between China and Vietnam, including the pacier implementation of three railway routes linking the two nations.

Infrastructure - Tue, November 19, 2024 | 3:08 pm GMT+7

Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnamese housing developers are offering several incentives including deferred principal payments and interest support to stimulate demand and boost liquidity as the year nears its end.

Real Estate - Tue, November 19, 2024 | 2:29 pm GMT+7

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia-based EQ Resources Limited has acquired its fellow firm Tungsten Metals Group (TMG), which owns and operates the largest ferrotungsten (FeW) factory outside China.

Companies - Tue, November 19, 2024 | 11:00 am GMT+7

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities JSC (TCBS) has become the largest securities company in Vietnam by charter capital after finishing a rights offering last week.

Finance - Tue, November 19, 2024 | 9:11 am GMT+7

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam's airports operator ACV expects to earn $145 million from non-aviation services this year, accounting for around 18.83% of its total revenue, which is modest compared to other countries, said deputy general director Nguyen Duc Hung.

Companies - Tue, November 19, 2024 | 7:45 am GMT+7

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.

Companies - Tue, November 19, 2024 | 7:00 am GMT+7

Indonesia promises Asia-Pacific investors more incentives

Indonesia promises Asia-Pacific investors more incentives

Indonesian President Prabowo Subianto recently told the press that he will create more incentives and expand special economic zones (SEZs) so as to lure investors from Asia-Pacific.

Southeast Asia - Mon, November 18, 2024 | 11:01 pm GMT+7

Indonesia, Brazil enhance aviation cooperation

Indonesia, Brazil enhance aviation cooperation

Indonesia's state-owned aircraft manufacturer, Dirgantara Indonesia (DI), and Brazilian aerospace company Embraer have signed a memorandum of understanding (MoU) to expand collaboration in the commercial aviation sector.

Southeast Asia - Mon, November 18, 2024 | 11:00 pm GMT+7