16/8/2019 – Vietnamese POS software provider KiotViet on Thursday revealed that the startup has raised US$6 million in Series A funding from venture capital firm Jungle Ventures and Indonesian traveltech giant Traveloka.
With this newly raised Series A funding, KiotViet plans to invest in the startup’s business network expansion to all of Vietnam’s provinces and cities, particularly in remote areas with limited technological access.
Part of the funding will also go into the expansion of business segments that will support and adjust the needs of the country’s microbusinesses and SMEs, as well as talent recruitment to add to its leadership team.
Both Jungle Ventures and Traveloka will help with KiotViet’s expansion by advising on its business strategy and hiring of key personnel.
KiotViet was developed as a cloud-based POS system by one of Vietnamese biggest software-as-a-service companies, Citigo software
The startup has expanded its services to offer a suite of omnichannel businesses and management software solutions aimed at microbusiness and SMEs. This includes services like inventory management, cash flow, and marketing for as low as under US$7 every month.
Since its inception in 2014, KiotViet claims that the platform has experienced a 250 percent growth year-on-year. In 2018, the platform was even named one of Vietnam’s 50 leading IT companies by the Vietnam Software and IT Services Association.
To date, KiotViet claims to have more than 70,000 active stores that can be found across 63 provinces in Vietnam.
According to the Deputy General Director of Citigo Tri Cao, SMEs in Vietnam account for more than 95 percent of all enterprises, which employment makes up about half of the total workforce and contribute around 40 percent to the country’s GDP.
“Even with a significant role, SMEs still find it difficult to digitize tedious operational processes. Our aim is to provide such companies with innovative and intuitive digital solutions to help increase efficiency and tap into new opportunities,” Tri Cao added.
Meanwhile, this also marks the first deal that Jungle Ventures has made in Vietnam, using its third fund which first closed in April at US$175 million. The VC firm is expecting to close at over US$220 million and expects that it will be oversubscribed in the upcoming months.
“Vietnam is one of the most exciting markets in Southeast Asia to look at right now. Currently, around 66 percent of the country’s relatively young population of over 96 million people are connected to the internet and we’re seeing an explosion in tech-focused retail areas such as ecommerce,” said Grace Yun Xia, the Principle at Jungle Ventures, who will also be joining the board of KiotViet.
“With even the traditional retail sector adopting more digital transactions, we see that KiotViet’s products and services – which provide comprehensive offline and online enterprise solutions – will definitely be a game changer,” she added.
At the same time, Elsa Chandra, the AVP of Investment Traveloka, will also serve on the company’s board of directors.
“As a leading travel and lifestyle technology platform in Southeast Asia, we are excited to partner with KiotViet in its journey to empower digital solutions for thousands of SMEs in Vietnam,” Chandra added.
This news is published on Reuters.