Investors stand behind firm

IDG Ventures Vietnam (IDGVV), Germany’s Rebate Networks and Ru-net of Russia – investors in e-commerce firm MJ Group  have renewed faith in Nhom Mua despite two temporary operational halts in mid-November and early December, said IDG Ventures Vietnam spokeswoman Duong Thu Huong.

“During the moments of tension at Nhom Mua, the two other investors sometimes wanted to drop the firm. But IDG Ventures persuaded them not to do that and they both agreed. And now Nhom Mua and its website www.nhommua.com has resumed operations,” said Huong. She said  IDGVV was a minor investor, but managed to convince the two other firms.

“Their holdings in MJ Group in Vietnam are very small compared with other investments by them around the world, but they did think of a stop due to problems at Nhom Mua. With our persuasion, they re-thought and still have faith in e-commerce development in Vietnam.”

They announced in Ho Chi Minh City a $60 million investment agreement in September 2011. However, the foreign investors did not reveal their stakes in the e-commerce group.

IDGVV general partner Rachan Reddy said at that time: “As some of you may know, IDG Ventures has been an early believer, supporter and investor in Vietnam and Vietnam’s technology and media community. We believed in the opportunity in Vietnam and in the government’s plan to prioritise, promote and build the sectors.”

 A US-based e-commerce company called Groupon is credited with pioneering the concept of group coupon deals through online social networks

MJ Group was set up in September 2011 through the merger of Nhommua.com, a popular online commerce platform in Vietnam, and Diadiem.com, a leading location and navigation services provider in the country. Both firms were set up by Vietnamese American Tom Tran, who became MJ Group CEO. MJ also includes Two.vn, a mobile applications company, and Two Media, an online advertising expert.

Internal disputes appeared one year later, described as disagreements between Tran and the investors. Ho Chi Minh City-based Nhom Mua has repeatedly found itself in troubled waters since mid-November 2012, when its website became inaccessible on November 15.

During that time, Vietnamese Australian Kyle Pham resigned as Nhom Mua’s chief operating officer. However, he told reporters last week in Ho Chi Minh City that he had been already authorised by Nhom Mua CEO Vo Thanh Hai to run the firm.

Pham showed the authorisation letter, the company’s seal and latest business certificate, dated December 20, 2012 by the city’s Department of Planning and Investment. The business certificate shows that Nhom Mua’s chartered capital is almost VND9.7 billion ($466,000), with Dia Diem Joint Stock Company holding 27.27 per cent and Hanoi resident Vo Thanh Trung possessing the rest.

Huong of IDGVV confirmed that Tran still held a stake in Nhom Mua. The usability of the Nhom Mua vouchers came into question from mid-November, as customers were rejected when using them for payment.

Nhom Mua spokeswoman Nguyen Thi Thanh Van said last week that more than 70 per cent of the firm’s suppliers have re-accepted the vouchers, while other suppliers were taking a wait-and-see attitude until mid-January. She added the company was willing to refund those who have bought the vouchers.