VinaCapital launches VC arm, agrees three deals
Vietnam’s VinaCapital has launched a $100 million VC unit and confirmed its first two domestic investments. Separately, the private equity firm has committed $25 million to a local hospital operator.
VinaCapital Ventures will make investments in a range of $2-10 million with an unlimited holding time and focus on helping start-ups establish a regional presence. It will also offer networking and mentorship support with a focus on new and disruptive technologies.
The first two investments are Logivan and FastGo, both technology-enabled start-ups in the transportation and logistics space. Logivan positions itself as “Uber for trucks” and provides B2B truck hailing and logistics services to address the industry’s inefficiencies. FastGo operates a ride-hailing mobile app and claims to have the second largest market share in its segment locally.
“While manufacturing and property get most of the attention and investment in Vietnam, tech – and start-ups in particular – hold the greatest promise for the country,” Don Lam, VinaCapital co-founder and CEO, said in a statement. “Technology is playing a transformative role in all manufacturing and service sectors and will drive Vietnam’s economy forward.”
Earlier this month, VinaCapital said it would participate in the founding of a Ho Chi Minh City-based accelerator known as Zone Startups Vietnam. It represents an extension of the Zone series established by Canadian accelerator operator Ryerson Futures which includes three programs in Canada and five in India. The Vietnam program has begun screening potential participants.
The VC launch coincides with the acquisition of a minority stake in private hospital chain operator Tam Tri Medical by VinaCapital’s Vietnam Opportunity Fund (VOF), a London-listed vehicle regulated by the Vietnam government. Tam Tri will use the capital to acquire new hospitals, expanding its current network of four locations.
Tam Tri CEO Nguyen Huu Tung previously established Hoan My Medical Corporation, a hospital chain that was backed by VOF in 2009 and acquired by Chandler Holdings for $80 million in 2013. Andy Ho, CEO of VinaCapital, noted in a release that Tam Tri will target a local gap in quality healthcare availability evidenced by estimates that the Vietnamese spend $2 billion a year on overseas treatments.
VinaCapital claims $1.8 billion in assets under management in Vietnam across a range of asset classes including private equity, real estate, fixed income, and venture capital. Start-up development in the country is considered a nascent industry but regionally differentiated by a double-hub structure provided by Hanoi and Ho Chi Minh City.
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