Tiki turns to insurance, is valued at billion USD and is about to IPO in the US

2 min read

Information about Tiki turning to insurance was recently revealed by Bloomberg. Accordingly, the company has raised USD 258 million in investment capital from AIA Insurance Inc,. This comes in the context that Tiki wants to expand its business into life insurance.

In addition to AIA Insurance, investors participating in this Series E funding round of Tiki include Swiss bank UBS, Mirae Asset – Naver Asia investment fund and Taiwan Mobile operator. Investors who have put money in Tiki before are Sumitomo Corp, Northstart Group and JD – the giant in the Chinese e-commerce village.

The new funding will help accelerate Tiki’s investments in logistics, including the development of AI technology and robotics systems for inventory management, order processing and delivery. Tiki is also planning to offer customized and accessible life insurance plans to its users.

According to Mr. Tran Ngoc Thai Son – Founder and CEO of Tiki, with this investment, Tiki’s valuation is now up to nearly 1 billion USD. Currently, Tiki is also one of the largest e-commerce companies in Vietnam with a scale of about 4,000 people.

According to Mr. Son’s disclosure, Tiki intends to IPO in the US in 2025. However, this plan will be pushed up a year early, Mr. Son said.

Tiki’s IPO in the US could pave the way for a wave of foreign investment in Vietnam’s nascent technology sector. This is an area where Vietnam can emerge as a technology hub of Asia.

The number of middle class people in Vietnam is increasing day by day. These people also have a shift in demand from traditional shopping to e-commerce, especially in the context of the pandemic. That is also the reason why the head of Tiki thinks that this e-commerce company can achieve 40-50% growth in the next few years.

According to a report in August 2021 by Facebook and Bain & Company, Vietnam is forecast to have 53 million online consumers, accounting for 71% of the population aged 15 and over. This rate is up about 8% from just a year ago.

Vietnam currently has the second highest digital consumer growth rate in Southeast Asia, after Indonesia. The size of the online retail market in Vietnam is forecast to reach 12 billion USD this year and increase to 56 billion USD in 2026.

Source: vietnamfinance.vn – Translated by fintel.vn