Once hailed as Vietnam’s next tech unicorn, Tiki—the homegrown e-commerce startup—has experienced one of the most dramatic valuation collapses in the country’s digital economy. After 15 years of operation, the company’s valuation has now reportedly fallen to under $10 million, a staggering drop from its near $1 billion peak and IPO ambitions just a few years ago.
Humble Beginnings and Early Momentum
Founded in 2010 by Tran Ngoc Thai Son with a modest $5,000 investment, Tiki started in a small rented room in Ho Chi Minh City. The platform initially focused on selling English-language books, serving a niche community of students and young professionals seeking access to foreign titles. With a strong emphasis on authentic products, fast delivery, and reliable customer service, Tiki quickly built a loyal user base.
Its name—“Tiki”, short for “Tìm kiếm” (Search) and “Tiết kiệm” (Save)—reflected its ambition to offer trustworthy retail services at affordable prices. The company gradually expanded into electronics, home appliances, beauty, fashion, and mother & baby products, while also investing heavily in logistics and technology infrastructure.
The Golden Era: Big Capital, Bigger Dreams
Between 2014 and 2019, Tiki attracted investment from major global players including CyberAgent Ventures, Sumitomo Corporation, and JD.com. The high point came in 2021, when Tiki raised $258 million in a Series E funding round, backed by heavyweight investors such as AIA, UBS, Mirae Asset, and Shinhan Financial Group. Its valuation at the time approached $1 billion, and the company even announced plans for an IPO in the U.S., signaling its ambition to compete globally.
By mid-2021, Tiki was among the top three e-commerce platforms in Vietnam, alongside Shopee and Lazada, boasting over 800,000 active customers and a catalog of more than 120,000 products.
A Market That Moved On Without Tiki
However, the landscape began to shift rapidly post-2021. The e-commerce race evolved beyond product variety and logistics—it became a battle of content, entertainment, and engagement. Platforms like TikTok Shop disrupted the industry with short-form videos and livestream shopping, while Shopee doubled down on personalized tech and influencer marketing.
Tiki, by contrast, was slow to adapt. It lacked robust content tools, failed to capture the emerging trend of social commerce, and struggled to maintain user engagement.
As rivals surged ahead, Tiki’s market share steadily eroded. According to YouNet ECI, Tiki’s gross merchandise value (GMV) in Q1 2025 plummeted 57% year-on-year. Even Tiki’s strongest categories—mother & baby, tech, and electronics—saw sharp declines of 29.3%, 24.2%, and a shocking 69.9%, respectively.
By the end of 2024, Tiki’s market share had dropped to a mere 0.9%, dwarfed by Shopee (66.7%), TikTok Shop (26.9%), and Lazada (5.5%). In Q1 2025, its decline worsened, with sales dropping 66.6%, the steepest fall among all major platforms, according to Metric. Tiki’s share became so small it was no longer visible on market distribution charts.
A Harsh Contrast Amid Market Boom
Ironically, Tiki’s downfall has occurred while Vietnam’s e-commerce market is booming. In Q1 2025 alone, total market sales reached VND 101.4 trillion (up 42.29% YoY) with 950.7 million products sold (up 24%). Tiki’s failure to align with new consumer demands—particularly in content-driven and personalized shopping experiences—has left it behind in a market it once helped shape.
Tiki’s journey from a promising startup to a struggling player highlights the brutal pace of digital innovation—and the importance of adaptability in tech. Once a symbol of Vietnam’s startup potential, Tiki’s story now serves as a cautionary tale for those who fail to evolve with their audience.
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Source: Vietnam Insider