Vietnamese unicorn VNG targets $100 million in funding round to fuel expansion

May 19, 2023 | 09:48

(0) user say

VNG Corporation, a prominent Vietnamese internet company supported by Singapore's sovereign wealth fund GIC, is pursuing a fresh funding round with the goal of raising $100 million.

Vietnamese unicorn VNG targets $100 million in funding round to fuel expansion

The GIC-backed company operates various businesses, including online gaming, payment services, cloud solutions, and the widely popular messaging app Zalo.

Sources revealed to Reuters that the company has engaged with Maybank to facilitate the fundraising efforts, although Maybank declined to comment on the matter.

VNG's prominent backers include Singapore's Temasek Holdings, Facebook co-founder Eduardo Saverin, and Raj Ganguly's B Capital Group, along with GIC.

Earlier this year, VNG listed 35.8 million shares on UPCoM – a Vietnamese bourse with a valuation of approximately $366 million at the time.

Following the conclusion of this funding round, VNG's long-term plan is to go public on the Singapore Stock Exchange, potentially as early as next year, cited Reuters.

Founded in 2004, VNG became Vietnam's first unicorn and previously signed a preliminary agreement with Nasdaq Inc. in 2017 to explore an initial public offering.

To date, VNG has not yet disclosed its audited financial report for 2022, citing the simultaneous preparation of financial statements according to both Vietnamese and international financial reporting standards.

Operating not only in Vietnam but also in multiple countries worldwide, it currently boasts 33 subsidiaries and affiliates (18 domestic companies and charitable funds in Vietnam, and 14 foreign companies) that are subject to different accounting and legal regulations.

Regarding its investment ventures, VNG continues to face setbacks in the first quarter of 2023. It reported substantial losses, including those from its involvement in Telio, Ecotruck, Rocketeer, Dayone, and Tiki Global.

Assortment of firms take on IPO dreams

Besides ample private funding, some major Vietnamese businesses are trying to gain scale as listed companies to strategically accelerate growth.

VinFast revs up for $23 billion SPAC merger and US stock market entry

VinFast Auto Pte. Ltd. (VinFast), a manufacturer of electric vehicles (EVs) from the Vietnamese conglomerate Vingroup, and Black Spade Acquisition Co. (Black Spade) announced a momentous business merger agreement on May 12.

By Celine Luu

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional