The Top VC’s In Vietnam – Mekong Capital – Vietnam-Focused Private Equity Firm | 38 Investments

Mekong Capital is Vietnam’s most tenured and experienced Venture Capital firm. Based out of Ho Chi Minh City, it invests in the country’s rapidly growing consumer industry. 

Mekong Capital -About The Company

Mekong Capital was established in 2001 by Chris Freund and is Vietnam’s most experienced Private Equity firm. They have the most extensive private equity track record in the country, having managed 5 funds including the one being invested currently. The company supports startups in the rapidly growing consumer industry, like retail, consumer products and distribution, and other customer-driven goods and services. 

Policies

Mekong Capital invests in companies with a swift growth rate and ambitious expansion plans to capture their market. It is also imperative for these companies to commit themselves to create and nurturing management teams to achieve these goals. Though these companies may be successful and even well established in their sectors, they typically operate in a smaller sphere at a local scale, as the market itself is quite fragmented. 

They are committed to their investment policy, driven by a futuristic vision that aims to expand and scale these companies to reach the larger emerging market on a national scale or beyond. This is met by introducing them to outside experts, industry-wide practices and integrating them with better operational and management policy to contribute to their growth. The greater prospect of their operation is to bolster the emerging market of Vietnam, and empower the consumer goods sector as a field of leaders and innovative companies that continue to disrupt and better the overall marketplace. As a developing nation, Vietnam’s economy has immense scope for development, and the market continues to grow with time. 

Fundraising

As a private equity firm, Mekong Capital operates as an intermediary between the actual capital investors and companies seeking investment. They have managed five funds in the past, completing four of them successfully and utilizing the most recent one currently. 

They have had six funds raised so far, adding up to a total of over $490 million. Their most recent Capital raising program announced on November 25, 2019, was the Mekong Enterprise fund 5. They raised a sum of $246 Million for this fund, targeted to their niche of consumer-oriented companies in Vietnam. 

Investments 

Mekong Capital has made 38 investments so far, leading in 7 of them. These investments are in various Vietnamese companies that sell consumer products sourced/manufactured and sold in the Vietnamese market.

Their latest investment was in Mutosi Group, a Vietnamese manufacturer and distributor of household products, water, gas and environmental care. Their Venture Round announced on June 9, 2021, was met with a $10 Million investment from Mekong Capital alone. 

They also invested in the Vietnamese Chocolate company Marou Chocolate, specializing in single-origin Vietnam dark chocolate sourced from local cacao farmers. Mekong Capital has invested an undisclosed amount of private equity in the company, as per the announcement on March 31, 2021. 

Conclusion 

As a company that invests in and bolsters the consumer goods market of Vietnam, Mekong is working towards expanding the scope and the scale of these companies on their home turf. Supporting these companies which often have a more direct impact on the lives of people makes them one of the most influential VC firms in their country.

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