Chinese online retailer JD.com (JD) has further strengthened its footprint in the South-East Asian market by making a strategic investment in Vietnam’s B2C e-commerce platform Tiki.
JD has signed the share subscription agreement as co-lead investor in Tiki’s recent Series C financing round.
Completion of the deal is subject to the customary closing conditions. Upon completion, the retailer will become one of the largest shareholders Tiki.
JD International president Winston Cheng said: “We are very excited to continue our South-East Asia expansion with Tiki, a company that has a deep understanding of Vietnam and a reputation for outstanding customer service.
“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.”
As a major stakeholder in the Vietnamese firm, JD intends to partner with Tiki in a range of areas, including merchandising, cross-border trade, logistics and operational capabilities.
Tiki founder and CEO Son Tran said: “We are delighted to partner with JD.com, China’s most trusted online retailer, as we enter a new phase of growth.
“JD and Tiki share the same business philosophy: to win market share by winning consumers’ heart. Since inception, Tiki has always focused on best-in-class, authentic shopping experience and amazingly fast delivery.”
Tiki and JD noted that they will be working together in order to deliver global brands to Vietnamese consumers while helping local brands to expand internationally via JD’s global platform.