Vietnam-focused private equity firm Mekong Capital has completed an investment in mattress and bedding solution provider Vua Nem Joint Stock Company through its $112.5-million Mekong Enterprise Fund III (MEF III).
The investment value, however, was not disclosed. The deal marks the seventh investment by MEF III that was launched in 2015.
In a statement, Mekong Capital said that the funding will help Vua Nem merge its two brands Dem.vn and Vuanem.vn into a single brand Vua Nem, build a new e-commerce website and expand its network to 300 stores across the country by 2022. “We are excited about this partnership with Mekong Capital. DealStreeAsia reported
They are the leading private equity firm in Vietnam with a strong track record of investing in top retailing companies such as MobileWorld and Phu Nhuan Jewelry. Our vision is to become the biggest retailer for mattress and bedding products in the country.
Thanks to the partnership with Mekong Capital, we now have access to the value creation framework Vision Driven Investing and best practices in the retail industry,” Vua Nem founder and CEO Hoang Tuan Anh said in an announcement. Founded in 2007 by two Vietnamese entrepreneurs Hoang Tuan Anh and Nguyen Vu Nghia, Vua Nem JSC currently operates 40 stores in 23 cities and provinces including Hanoi, Ho Chi Minh City, Hai Phong and Da Nang.
Launched in May 2015, MEF III focuses on investments in Vietnamese consumer-driven businesses such as retail, restaurants, consumer products, and consumer services. Its typically targets investments ranging from $8-15 million and makes both minority and buy-out investments.
Recently, Chris Freund, Founder and Partner at Mekong Capital told us in an interaction that he expects MEF III to be fully deployed in the first half of 2019. The firm also plans to launch a slightly larger fourth vehicle next year. To date, Mekong Capital has completed 32 private equity investments in Vietnam, of which 24 have been fully exited.
By Quynh Nguyen