KKR leads Series B for Vietnam MSME digitalization platform
KKR has led a $45 million Series B funding round for KiotViet, a sales management software developer that serves Vietnam’s micro, small and medium-sized enterprise (MSME) community.
Existing investor Jungle Ventures – which provided a $6 million Series A in 2019 alongside travel booking platform Traveloka – also took part. Additional contributions came from Kasikorn Bank and Cao Viet My, a local provider of printers and other office equipment, according to a statement.
KKR committed capital from its most recent pan-Asian fund, which closed at $15 billion earlier this year. It has a sleeve for growth-stage technology investments that typically involve smaller than average check sizes. KiotViet is the firm's sixth investment in Vietnam and first under the growth technology strategy.
Founded in 2014, KiotViet provides an affordable software suite covering point-of-sale, inventory management, customer relationship management, and employee management functions. It has also introduced a B2B marketplace, with accompanying logistics services, that allows merchants to source inventory more efficiently and cost-effectively.
There are plans to roll out complementary financial services solutions such as payments and lending. In this respect, the company is following a path taken by numerous other software vendors and B2B marketplaces across the region: leveraging deep industry and customer knowledge to underwrite loans for those who might find it difficult to secure consistent bank financing.
KiotViet claims more than 110,000 MSME customers and positions itself as part of a broader digitalization movement. It is estimated that MSMEs account for about 40% of Vietnam's economy.
"KKR's investment in KiotViet aligns with one of our core themes of backing businesses that are enabling MSME digitization through software and financial technology," said Louis Casey, who leads growth-stage technology investments in Southeast Asia for KKR.
"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."
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