According to TechinAsia, Sendo said that it is starting to launch a capital raising round D in the context of Vietnam’s fast-growing e-commerce field. In addition, Chief Financial Officer of this company, JJ Ang, shared that the merger was not a “compulsory” option, implicitly confirming the merger with Tiki was “broken”.
“Sendo obviously believes in the potential of consolidation and consolidation but must be in the right time and with reasonable terms. A strong connection in value and business strategy is needed. Like Indonesia and even Singapore, the Vietnamese market is large enough to accommodate many participants. “
Besides Tiki, Sendo is one of the largest eCommerce companies in Vietnam, raising up to US $ 112 million to date. The company is separated from FPT and is trying to differentiate itself by reaching customers outside of Hanoi and Ho Chi Minh City.
Rumors of a potential merger with Tiki have been aroused this year but it seems the negotiations between the two sides have failed. The reason for finding out of DealstreetAsia is probably because “a series of Tiki shareholders disagree with the terms of the merger, so the deal is currently temporarily suspended indefinitely.”
CFO Sendo JJ Ang.
Another leader related to the issue said that Covid-19 was also a major cause of the “collapse”. He added that the business situation between the two companies is increasingly different in the pandemic.
For its part, CFO Ang believes that Sendo’s business metrics like natural traffic, which measure the potential customers who become real customers when they buy an item or translate and users’ buying frequency is very sustainable and “better compared to competitors”.
He also said that Sendo could be easier to face with domestic rivals thanks to the early adoption of the C2C model but admitted that it was facing fierce competition with international rivals such as Shopee and Lazada.
According to Ang, Sendo’s current investors have also poured more money into Series C’s extended funding round following the $ 61 million Series C announced in November 2019. He also said that the company is looking for long-term investors who can add strategic value in areas such as electronics retail and financial technology.
Ang said Sendo could make a profit in the next two or three years. When asked about the potential to withdraw or find new investors, he said that “there could be an IPO next year”.
Sndeo claims it has over 500,000 sellers on its platform, serving 12 million customers across 63 provinces of Vietnam.