Mekong invests in Vietnam appliances maker

The middle market-focused private equity firm is investing via its fourth flagship fund, which closed earlier this year at $246 million, doubling the size of its predecessor. The fund primarily takes significant minority stakes of 40-45%.

Mutosi distinguishes itself as following Japanese production standards in the production of four product lines: water purifiers, safe kitchen appliances, air purifiers, and environmental care systems such as raw water treatment. Operations are advised by Hirayama Holdings, a Tokyo-listed manufacturing consultant founded in 1955.

Mutosi was established by four water purifier industry professionals in 2018. The company had 300 points of sale as of mid-2019 and has since increased this number to 3,000 across Vietnam. Mekong plans to help the company reach the 4,000 mark by the end of the year while supporting R&D in manufacturing technology, improvements in customer experience, and staff training.

“With Mekong Capital’s previous experience in big companies like Pizza 4P’s, Mobile World, I believe the fund will help Mutosi access the most efficient operating models,” Tran Trung Dung, co-founder and CEO of Mutosi, said in a statement. “This cooperation also inspires Mutosi to be mission-and-vision-driven.”

Electronics and appliances retailer Mobile World, an investment from 2007, is the standout success from Mekong’s broader portfolio, having secured an overall return of 57x across multiple exits. The firm invested Pizza 4P’s, a farm-to-table restaurant chain, in 2019 with a view to growing both the domestic footprint and entering foreign markets.

Mekong's in-house value-add resources include two digital transformation specialists and four recruitment professionals. Last year, the firm named Nguyen Thi Minh Giang, formerly head of the portfolio skills sourcing unit, as a partner with responsibility for talent and culture. There is also a “value optimization board” of industry experts for high-level advice.

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• Topics
• Southeast Asia
• Consumer
• Expansion
• Vietnam
• Mekong Capital
• manufacturing
• Growth capital