Mekong Capital, a private equity firm based in Vietnam announced today that its Mekong Enterprise Fund III has completed its first round of financing in Nhat Tin Investment Trading Joint Stock Company.
Based in Ho Chi Minh, Nhat Tin Logistics has been operating in the logistics industry since its establishment in late 2014. It provides domestic and international door-to-door delivery services for all types of goods and mailings, as well as other services such as shipment by road, railway, customs declaration, warehouse rental, and warehousing.
It is also the first business to offer free COD across the country to serve the e-commerce demand in Vietnam.
By the end of March 2017, the company claims to have more than 170 points of delivery and manages more than 20,000 orders daily.
Meanwhile, launched in May 2015, Mekong Enterprise Fund III contains US$112.5 million in committed capital and typically invests US$6 to US$15 million in their portfolio companies.
Nhat Tin is the fifth investment by the fund after other investments including restaurant chain Wrap & Roll, pawnshop operator F88, and Ben Thanh Jewelry. The Vietnamese company is also the second logistics company in its portfolio after ABA Corporation.
Commenting on the deal, Chad Ovel, the partner at Mekong Capital said, “We believe that the express delivery sector in Vietnam offers tremendous opportunity for growth, especially thanks to ever-increasing demands from the country’s retailing and e-commerce industries.”
However, Ovel also adds that the sector is highly fragmented and leading players can only dominate if they can combine consistently high quality, reliability, and innovation into the services.