KiotViet, Vietnam’s leading merchant platform for micro, small and medium enterprises, announced on Thursday it bagged a total of $45 million in Series B funding led by global investment firm KKR. KiotViet’s existing investor, Singapore-based Jungle Ventures, also participated in the funding round.
With its commitment to enable Vietnamese MSMEs to grow through technology, helping them run their businesses more easily and efficiently, KiotViet intends to further leverage its platform to become the most popular technology solution provider for enterprises in Southeast Asia through its new multi-million dollar funding.
Founded in 2014, KiotViet currently provides more than 150,000 MSMEs — with around 5,000 new merchants added every month — with smart and user-friendly cloud-based software to manage sales. The company’s experienced sales experts worked with software developers in creating an innovative digital solution that’s suitable for more than 15 industries in both wholesale and retail commerce.
“Micro, small and medium enterprises play a vital role in the domestic economy as a driver for Vietnam’s future growth. Through KiotViet’s accessible and innovative solutions, we want to help homegrown MSMEs digitize their businesses, enhance their operational efficiency, as well as unleash their full potential,” said KiotViet CEO Tran Nguyen Hao.
“We are excited to welcome KKR as our new investor and are confident that their extensive experience, strong global network, and deep industry expertise will prove invaluable assets to our company as we embark on the next phase of our growth journey. We would also like to thank Jungle Ventures for their continued commitment in supporting our growth, as well as Kasikorn Bank and Cao Viet My for participating in this Series B funding round.”
KiotViet’s aims to further push for the digital transformation of MSMEs, a key segment that accounts for approximately 40% of Vietnam’s economy. The company delivers an affordable, full-suite software solution that includes point-of-sale, inventory management, CRM, and employee management services.
KiotViet has recently additionally expanded to offer a B2B procurement marketplace and integrated logistics services for its merchants, and has plans to leverage its platform to provide financial services solutions such as payments and lending to customers.
“We are excited to invest in KiotViet, an innovative business with terrific growth potential. Our investment marks our sixth in Vietnam, and is the first made through KKR’s growth technology strategy in Southeast Asia,” said Ashish Shastry, Co-Head of Asia Pacific Private Equity and Head of Southeast Asia at KKR.
This milestone also reflects KKR’s commitment to providing high-growth technology companies with long-term capital and value-added support, noted Ashish.
Louis Casey, KKR’s Growth Technology Lead in the region, noted that the investment in KiotViet aligns with one of the investment firm’s core themes of backing businesses that are enabling MSME digitization through software and financial technology.
“Our investment philosophy is predicated on true, value-added collaboration with founders over the long term, and we are grateful for the opportunity to work closely with the KiotViet team to support the company’s next stages of growth by leveraging KKR’s software expertise and global network.”
David Gowdey, Managing Partner of Jungle Ventures also lauded KiotViet’s new success, pointing out the Vietnamese-led platform’s mpressive evolution from a basic small business software to a multifaceted small business platform. The additional capital, as David explained, will enable KiotViet to provide more services to small businesses, who as a segment are a major contributor throughout Southeast Asia.
KKR’s investment in KiotViet was made from its Asian private equity fund. The New York-listed firm has also recently invested in India’s Lenskart, an omni-channel eyewear retailer, Adopt A Cow, a digitalized direct-to-consumer dairy company in China and NetStars, operator of Japan’s largest QR code payment gateway.