Vietnam-based POS/store management software firm KiotViet announced that it has raised US$6 million in Series A funding from venture capital firm Jungle Ventures and Indonesian traveltech giant Traveloka.
KiotViet stated that it plans to use the funding to focus on business network expansion to all of Vietnam’s provinces and cities, especially in remote areas with lower technological access, as well as business segments expansion to support and adjust to the needs of the country’s microbusinesses and SMEs.
It also plans to add on its leadership team.
KiotViet was established in 2014, developed as a cloud-based POS system by Citigo Software.
Since then, it has expanded its services to provide a suite of omnichannel business and management software solutions aimed at microbusinesses and SMEs.
It offers services that include inventory management, cash flow, and marketing for as low as under US$7 a month.
KiotViet claimed to have a customer base of over 70,000 active stores in 63 provinces across Vietnam.
SMEs in Vietnam, said Tri Cao, the Deputy General Director of Citigo, account for over 95 per cent of all enterprises. They contribute around 40 per cent to GDP and employ around half of the total workforce.
“Even with a significant role, SMEs still find it difficult to digitalise tedious operational processes. KiotViet aims to provide such companies with digital solutions to help increase efficiency and tap into new opportunities,” he added.
This investment also marks the first time that Jungle Ventures has invested in a Vietnamese startup after making the first close of its third fund at US$175 million. The company is expecting to raise over US$220 million and expects that it will be oversubscribed in the coming months.
“Vietnam is one of the most exciting markets in Southeast Asia to look at right now. Currently, around 66 per cent of the country’s relatively young population of over 96 million people are connected to the internet and we’re seeing an explosion in tech-focused retail areas such as e-commerce,” said Grace Yun Xia, Principal at Jungle Ventures, who will also be joining the board of KiotViet.
Jungle Ventures said it will help with KiotViet’s expansion by advising on its business strategy and the hiring of key personnel.
Traveloka, which has just made its expansion to Australia, also expressed the same sentiment regarding the investment.
Elsa Chandra, AVP of Investment Traveloka, also will serve on the company’s board of directors.
Image Credit: KiotViet