JD.com, the Chinese e-commerce firm that rivals Alibaba, has continued its expansion in Southeast Asia with an investment in Vietnam-based Tiki, a seven-year-old online retail service.
JD.com is leading a Series C investment round in Tiki alongside VNG, the Vietnam-based online media and gaming company that is already an investor. The round itself is undisclosed, but TechCrunch understands that it is in the range of around $50 million overall.
The deal sees JD.com become “one of Tiki’s largest shareholders,” the companies said. The duo plan to work together to support Tiki on merchandising, cross-border opportunities, logistics, fulfillment, tech and more.
JD.com is aiming to grab a larger share of Southeast Asia’s growing opportunity. The region’s e-commerce market is predicted to grow to $88 billion by 2025 up from $10.9 billion last year, according to report from Google and Temasek.
The firm moved into Southeast Asia with an e-commerce service in Indonesia in 2015 and last year it has created an e-commerce and fintech joint-venture in Thailand alongside physical retail giant Central. It also made notable investments: backing ride-hailing startup Go-Jek in Indonesia and Thailand-based regional fashion marketplace Pomelo.
“We are very excited to continue our Southeast Asia expansion with Tiki, a company that has a deep understanding of Vietnam and a reputation for outstanding customer service,” said JD.com president of international Winston Cheng. “We look forward to working with Tiki to deliver a truly world class e-commerce experience to Vietnamese consumers.”
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