VIETNAM, December 23 –
WinCommerce is the largest grocery retailer in Việt Nam in terms of outlets.
HCM CITY – With renowned global investors and pieces of the puzzle of building a consumer technology platform – retail gradually taking hold, The CrownX has undoubtedly entered the acceleration phase.
The Masan Group (stock code MSN) has closed the latest round of funding for 2021 for The CrownX (TCX), Masan’s integrated retail platform that consolidates WinCommerce (formerly VinCommerce) and Masan Consumer Holdings.
In this roundtable, a consortium of investors including TPG, the Abu Dhabi Investment Authority (ADIA) and SeaTown Holdings have invested 350 million dollars.
In April of this year, Korean SK acquired a 16.26% stake in VinCommerce for a cash consideration of $ 410 million.
In June, a consortium led by Alibaba Group and Baring Private Equity Asia purchased a 5.5% stake in the newly issued shares of The CrownX for $ 400 million.
Also in June, Masan and The CrownX invested nearly $ 400 million to acquire shares of TCX from minority shareholders.
In November, SK Group invested $ 340 million to acquire a 4.9% stake in The Crown X.
This means that a total of $ 1.5 billion was invested in The CrownX in 2021, although the economy is in the trash due to the COVID-19 pandemic.
The CrownX not only attracts new strategic investors, but also adds value to existing shareholders throughout the final round of funding.
With TPG, ADIA and SeaTown buying stakes at $ 105 per share, TCX saw its valuation climb to $ 8.2 billion, up 12% from when the consortium led by Alibaba Group, Baring Private Equity Asia and SK y invested.
In this fundraising, The CrownX welcomes new investors SeaTown Holdings, a 100% subsidiary of Temasek Holdings, and ADIA.
Temasek is one of two sovereign wealth funds in Singapore along with the Government Investment Corporation (GIC).
It currently has a portfolio of $ 400 billion under its management, primarily in the Asia region.
With its cautious stance, favoring safety when deciding to invest, it can be seen that Temasek strongly believes in the future prospects of The CrownX, in particular its plan to go public on the international stock exchange.
Masan Group CEO Danny Le said that after completing fundraising, the group is now looking forward to an international IPO for The CrownX in 2023-24.
Funds generally expect their investment to appreciate at least two or three times during each investment cycle. Big guys like Temasek are likely to bet that The CrownX’s valuation will hit $ 20 billion in the next two or three years when it goes public.
The Abu Dhabi Investment Authority manages a portfolio of approximately $ 649 billion worldwide.
ADIA is a relatively unknown name in the M&A market in Việt Nam. CrownX is the first Vietnamese company in which the Middle East investment fund has invested.
ADIA has a portfolio of approximately $ 649 billion, the second largest among investment funds in the Middle East.
With their scale rapidly increasing over time, Middle East sovereign wealth funds are playing an increasingly important role in the global financial system.
Countries in the Middle East also use these funds to diversify their income by investing in global assets, thereby reducing their dependence on oil.
TPG is an “acquaintance” who has associated with Masan for over a decade.
In 2009, TPG invested in Masan as the consumer goods company prepared to list on HoSE. At that time, Masan’s market cap was only $ 900 million.
Today, the valuation of the Masan group exceeds $ 8 billion and continues to grow. South Korean giant SK has also long invested in Masan and its subsidiaries.
It seems likely that the recent $ 350 million investment is just the first round of ADIA and Temasek, especially in the context where The CrownX’s valuation is likely to rise further by the time of the introduction. on the stock market in two or three years.
The pieces gradually fall into place
Masan plans to create a technology-based retail ecosystem by leveraging the Reddi telecommunications platform.
Masan is expected to benefit from partnering with the giants not only in terms of financial support but also their experience, a foundation for accelerating The CrownX’s digital transformation and turning it into an integrated retail and tech platform that does business. both offline and online.
Prior to investing in The CrownX, TPG and ADIA invested $ 600 million and $ 750 million in Indian telecommunications company Jio Platforms. It is the largest network operator in the South Asian country with a population of over one billion and is owned by Reliance Retail, India’s largest retailer.
Interestingly enough, The CrownX has a lot of similarities with Reliance Retail – Jio Platforms. It is clear that TPG and ADIA saw the potential of the consumer – technology – telecommunications business model.
And in Việt Nam, The CrownX is a pioneer in the field, and has many factors that are conducive to rapid growth and bringing disruptive values to investors.
WinCommerce, the largest grocery retailer in Việt Nam in terms of outlets, along with Phúc Long, Techcombank and the Reddi mobile network can meet almost all the basic needs of consumers’ daily life.
By offering a wide range of everyday essential products and services in integrated WinMart + stores, The CrownX has a unique integrated offline format and cost-effective model for gaining spend share across multiple consumer use cases.
In the near future, Masan could leverage Reddi’s loyalty platform to promote cashless payment, buy-now services, and asset and investment management solutions.
It could also partner with a fintech partner and conduct data research to perfect its digital ecosystem.
M&A is a tool that Masan usually uses to implement his development strategy. He believes the next game will change will be the development of fintech solutions for mass market consumers. VNS