JD has signed the share subscription agreement as co-lead investor in Tiki’s recent Series C round of financing. Closing of the Series C round is subject to satisfaction of customary closing conditions. Upon completion of this investment, JD.com will become one of Tiki’s largest shareholders.
JD will partner with Tiki in a range of areas including merchandising, cross-border trade, logistics and fulfillment, technology, financing, and operational capabilities.
JD already has an established e-commerce platform in Indonesia, and recently partnered with Thai conglomerate Central Group to enter Thailand. With its investment in Tiki, JD adds Vietnam to its growing Southeast Asia presence.
“We are very excited to continue our Southeast Asia expansion with Tiki, a company that has a deep understanding of Vietnam and a reputation for outstanding customer service,” said Winston Cheng, President of International at JD.com.
“With JD’s expertise in leveraging social media for e-commerce, Tiki’s partnership with VNG in social network and mobile payments is a natural fit as we aim to provide differentiated services to suppliers and consumers in Vietnam. We look forward to working with Tiki to deliver a truly world class e-commerce experience to Vietnamese consumers,” Cheng added.
"We are delighted to partner with JD.com, China's most trusted online retailer, as we enter a new phase of growth," said Tran Ngoc Thai Son, Tiki's Founder and CEO.
Son stated: "JD and Tiki share the same business philosophy: to win market share by winning consumers' heart. 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."
Tiki and JD will cooperate to deliver a wider authentic selection from global brands to consumers, while helping Vietnamese local brands in expanding internationally via JD’s global platform.
Over the past seven years, Tiki has consistently grown triple-digits annually, triple the industry average. Tiki’s vision is to become Vietnam’s largest and most trusted full category e-commerce platform.
In 2017, VNG (Vinagame) spent over VND380 billion (roughly US$16.5 million) to purchase a 38 per cent in Tiki, thereby becoming one of the largest shareholders of Tiki.
The completion in B2C playfield is being heated up because the playfield is more and more crowded with both foreign and local players. Some local e-commerce platforms like Sendo, Tiki, Adayroi have positioned themselves in their home market. However, they have been facing an intense completion to win market share from strong foreign competitors.
The competition between shopping websites has now switched focus from prices to rapid delivery. Analysts said competing by cutting prices by up to 50 per cent is an old story, and with customers’ demand for good service increasing, delivery times have become a key factor.