According to Deal Street Asia, e-commerce sites Tiki and Sendo have decided to cancel the merger amid the global economy hit hard by the Covid-19 epidemic, a source from DealstreetAsia said. Not long before that, information about coming to an official agreement was posted.
The merger of Tiki and Sendo is known as the e-commerce market is becoming increasingly competitive, with today’s extremely strong competitor Lazada backed by Alibaba and Shopee under the SEA. Accordingly, the purpose of the same observer house to strengthen and enhance the position of the two sides. However, this “predestined relationship” really did not get much approval from the public opinion, many suggested that Tiki and Sendo have differences in services, goods.
Noting that, despite the leak of information about the same house for more than a year, Tiki and Sendo continued to “raise” their own chartered capital – a move not often seen if the two sides really wanted to merge.
Currently, both of these e-commerce sites still have to call for capital to finance their business activities, which are still suffering big losses like most other e-commerce businesses. VNG’s report stated that Tiki in 2019 will lose VND 1,766 billion – an increase of over VND 1,000 billion compared to the loss of VND 756 billion in 2018.
As of May 2020, Sendo had reached VND 114 billion, a third increase after only one year, compared to the initial figure of VND 88 billion. By the end of November 2019, Sendo announced that it had raised an additional US $ 61 million in Series C funding round. After this round of funding, foreign investors held 61.1% of Sendo’s charter capital. FPT is still the largest shareholder besides foreign big shareholders including SBI, Beenext, Econtext Asia, Daiwa.
On Tiki’s side, this unit also raised capital twice in 2019 in June and December, currently the two main shareholders are still VNG and JD.com.
In early June 2020, a source from Deal Street Asia said Tiki had successfully raised an additional US $ 130 million in the latest round of fundraising led by Northstar Group, a private fund company. This information came after Tiki completed its capital increase from VND 191 billion to VND 208 billion at the end of May.
Both Tiki and Sendo currently have at least 1 foreign shareholder, Success Elite Holdings Limited: this investor currently holds 5% of Tiki and 2% of Sendo.