The CrownX, an integrated retail platform of Vietnamese conglomerate Masan Group, has closed a $350 million primary investment from global private equity firm TPG, the Abu Dhabi Investment Authority (ADIA) and Singapore state investor Temasek.
The latest investment brings the total funding raised by The CrownX since its inception in H1/2020 to over $1.5 billion.
ADIA is making the investment through its subsidiary Platinum Orchid, while Temasek is represented by SeaTown Master Fund in the transaction, according to an announcement.
The latest transaction puts The CrownX’s post-money valuation at $8.2 billion, nearly 12% higher than the company’s previous capital raising round.
Masan Group CEO Danny Le said the company will now shift its focus on scaling up the business as The CrownX targets an international IPO by 2024.
Masan Group will hold an 81.4% interest in The CrownX post-transaction.
The CrownX will use the capital to invest in growth initiatives and conduct a share buyback, Masan Group said.
“The next game-changer will be developing fintech solutions including buy now pay later products for the underserved, mass-market consumers by leveraging its loyalty platform with Reddi at the core,” the firm added.
Masan Group acquired mobile virtual network operator Mobicast, which operates Reddi, in September.
“Powered by its rising middle class and rapid urbanisation, Vietnam is well-positioned to be a significant driver of the next chapter of Asia’s consumption story. […] We believe that The CrownX is the platform to capture this opportunity,” said David Tan, managing director of TPG Capital Asia.
The CrownX announced its first $400 million equity funding by a consortium led by Alibaba Group and Baring Private Equity Asia in May this year. Last month, the firm continued to raise $340 million from South Korea’s SK Group.
The Vietnamese company claimed it had recorded its first profitable quarter in Q3/2021. By the time of the expected IPO, according to Le, The CrownX aims for a double-digit profit margin.
The CrownX was founded in 2020 by consolidating Masan Group’s interests in Masan Consumer Holdings and VinCommerce – a retail network the parent group took over from its peer Vingroup.
The company has since then developed an omnichannel retail system, or what it calls ‘Point of Life’, by combining its existing supermarket and convenience store chain WinMart, Phano pharmacy retail chain, and Techcombank, a commercial lender in which Masan owns 15%, with newly acquired assets such as Reddi and coffee and tea chain Phuc Long.
Masan Group is among the top 10 largest companies on the Vietnamese stock exchange, at an over $8 billion market cap. Shareholders on its cap table include SK Group and GIC.