JD.com to acquire majority stake in Tiki.vn

London - JD.com has its sights set on becoming just as big, if not bigger, than its rival Alibaba, which is why the Chinese e-commerce firm aims to strengthen its presence in Southeast Asia by investing in online firm Tiki. JD.com is set to increase its stake in Tiki after co-leading a Series C round.

The size of the funding round was not disclosed but once the deal is completed, JD.com will become one of Tiki's largest shareholders, a move which sees the Chinese online company poised to snag a leading role within one of the world's fastest growing online markets. As one of Tiki's biggest shareholders, together with VNG, JD.com is set to work together with the Vietnamese online firm in a range of areas, such as merchandising, cross-border trade, logistics and fulfillment, financing, technology and operational capabilities.

JD.com to boost its presence in Southeast Asia via partnership with Tiki

"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 in a statement. "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."

Vietnam is one of the main focus areas in JD.com strategic growth plan in Southeast Asia. The country's total online retail sales are projected to reach 10 billion USD by 2020, according to a report from state media Vietnam News Agency. The Chinese e-commerce giant previously launched its business in Indonesia in 2015 and claims to be the largest online retailer in the country in terms of revenue. JD.com also formed a joint venture with Central Group in Thailand in September 2017 to grow in the region and go head to head with Alibaba and Amazon.

"We are delighted to partner with JD.com, China’s most trusted online retailer, as we enter a new phase of growth," added Son Tran, Tiki’s founder, and CEO. "JD and Tiki share the same business philosophy. 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."

Photo: Tiki.vn