JD expands share in Vietnamese e-commerce platform
China's second largest e-commerce giant JD.com said it has increased its investment to become one of the biggest shareholders in Vietnam-headquartered e-commerce platform, Tiki.vn, as part of its overseas expansion initiatives.
JD and another existing shareholder, VNG Corporation, both participated in the latest fund-raising for Tiki, while its previous investors include Japanese investors Sumitomo Corporation and CyberAgent Ventures.
This follows JD's US$44 million investment in the platform in November last year.
Tiki was founded in 2010 and started out as an online book seller, but has since diversified to include more physical goods such as toys, digital devices, lifestyle and beauty products.
"JD will push forward collaboration with VNG in terms of social network and mobile payments, and we'll continue to share with Tiki our experience in pushing forward social commerce," said Winston Cheng, president of JD's international business.
“With JD’s expertise in leveraging social media for e-commerce, Tiki.vn’s partnership with VNG in social network and mobile payments is a natural fit,” he said in the statement.
JD.com will also leverage off Tiki's warehousing and delivery systems, as well as its technology and payment capabilities.
JD aims to build more solid ground for its long-term expansion in overseas markets following its launch of a local online retail business in Indonesia in 2015. The e-commerce giant has been pushing forward tie-ups with domestic and overseas partners, and deals with Farfetch and Vipshop in the past year testifies its ambition to broaden product and service offerings to catch up with leader Alibaba.
E-commerce giants are ambitious in their Southeast Asian expansion plans. Alibaba has invested heavily in payment and e-commerce ventures in Thailand, Singapore, Indonesia and Malaysia.
Alibaba-backed Lazada also has a strong presence in Southeast Asia, especially in Malaysia, Singapore and Indonesia, while Amazon launched its subscription member service in Singapore.