The Hanoitimes - Mekong Enterprise Fund III (MEF III), a private equity fund of Mekong Capital has completed an investment in mattress and bedding solution provider Vua Nem, announced the fund on June 4.
MEF III, however did not disclose the amount of investment in an email to Hanoitimes, citing contractual agreement as reason. Vua Nem is the seventh investee company announced by MEF III.
Hoang Anh Tuan, Founder and CEO of Vua Nem, expressed his excitement about the partnership with Mekong Capital, "who has a strong track record of investing in top retailing companies such as MobileWorld and Phu Nhuan Jewelry," Tuan said in a press release.
"Our vision is to become the biggest retailer for mattress and bedding products in the country. Thanks to the partnership with Mekong Capital, we have had access to the value creation framework Vision Driven Investing and best practices in the retail industry."
Mekong Capital informed the reason behind its decision to invest in Vua Nem is "the founders' openness to building up the management team," according to Nguyen Thu Thuy, Mekong Capital's Deal Leader for Vua Nem.
The investment by MEF III will facilitate Vua Nem to merge its 2 brands Dem.vn and Vuanem.vn into 1 single brand Vua Nem, build a whole new e-commerce website, as well as to expand the company network to 300 stores across the country by 2022. The company currently operates 40 stores in 23 cities and provinces.
Vua Nem was founded in 2007 by two Vietnamese entrepreneurs, Hoang Tuan Anh and Nguyen Vu Nghia, who had a strong belief in the model of American company Mattress.com. They bought a domain at Dem.vn, which until recently was one of the two brands the company had been operating, before merging to be Vua Nem.
The company provides a wide range of products from many brands, in order to have the perfect solution for each customer.
Established in 2001, Mekong Capital is a Vietnam-focused Private Equity firm. Mekong Capital's investee companies are typically among the fastest growing and market leading companies in Vietnam's consumer-driven sectors such as retail, restaurants, consumer products and distribution.
Launched in May 2015, MEF III is a private equity fund, and currently has US$112.5 million in committed capital. MEF III focuses on investments in Vietnamese consumer-driven businesses such as retail, restaurants, consumer products, and consumer services.
MEF III typically targets investments ranging from US$8 to US$15 million, and makes both minority and buy-out investments.