4/6/2018 – Vietnam-focused private equity firm Mekong Capital has today made an investment in mattress and bedding products provider Vua Nem Joint Stock Company through its US$112.5 million Mekong Enterprise Fund III (MEF III).
While investment value was not disclosed, the deal marks the seventh investment by MEF III since its inception in May 2015.
Commenting on the partnership, Vua Nem’s founder and CEO Hoang Tuan Anh said, “We are excited about this partnership with Mekong Capital. They are a leading private equity firm in Vietnam with a strong track record of investing in top retailing companies consisting of MobileWorld and Phu Nhuan Jewelry.”
Founded in 2007 by Vietnamese entrepreneurs Hoang Tuan Anh and Nguyen Vu Nghia, Vua Nem JSC currently has 40 retail stores in 23 cities and provinces across the country. This includes 9 stores in Ho Chi Minh and 6 stores in Hanoi.
“Our vision is to become the biggest retailer for mattress and bedding products in the country. Thanks to the partnership with Mekong Capital, we now have access to the value creation framework Vision Driven Investing, and best practices in the retail industry,” added Hoang.
The funding will help Vua Nem to merge its two brands Dem.vn and Vuamem.vn into a single brand Vua Nem, in addition to building a new e-commerce website and expanding its network to 300 stores across the country by 2022.
On the other hand, Mekong Capital is an investment firm that focuses on consumer-driven businesses such as retail, restaurants, consumer products, and consumer services. Its MEF III was typically targets investment ranging from US$8 to US$15 million.
Chris Freund, the Founder and Partner at Mekong Capital said that MEF III is expected to be fully developed in the first half of 2019 and that the firm also plans to launch a fourth vehicle next year, which will be slightly larger than its predecessors.
At present, Mekong Capital has completed 32 private equity investments in Vietnam, of which 24 have been fully exited.
Mekong Capital last exited its investment in Vietnam-based mobile device and home appliance retailer MobileWorld at a net internal rate of return (IRR) of 61.1 percent in U.S. dollar terms.