The stake sale is part of an agreement signed by the two companies to collaborate in the areas of e-commerce and tourism that will see Cat Dong sell Japanese products on its websites.
Illustration photo.
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Cat Dong CEO Ho Quang Khanh said the strategic cooperation with Scroll came about after two years of the Vietnamese company talking to various Japanese investors. The partnership, he said, will help Cat Dong recover its leading position in the Vietnamese market.
Cungmua.com was established at the time of an e-commerce boom in Vietnam in 2010. Three years later, the daily deals site was merged with beleaguered peer Nhommua.com whose investors IDG Ventures Vietnam and Rebate Networks Fund finally gave up on the struggling firm.
Cat Dong today has over 3 million customers and partnerships with about 1,000 brands and suppliers around the world. In the future, Cat Dong will focus on more B2B offerings, taking cues from what Scroll has done in Japan, Khanh said.
Private equity firm ACA Investments, which has managed funds worth US$1.4 billion to date, is the largest investor in Cat Dong with a 37% stake.
Established in 1943, Scroll Corporation is primarily engaged in retailing merchandise such as clothing and others, using catalogs and Internet. The Mail Order Apparel segment is engaged in retailing apparels. The Mail Order Inner segment is engaged in retailing underwear. The Mail Order LF segment is engaged in retailing sundries, fashion accessories and others. The Mail Order H&B segment is engaged in retailing cosmetics and health-related merchandise.
Vietnam's e-commerce market grew 25% last year and is expected to maintain its growth in the next three years. Revenue growth in online retail channels in 2017 increased 35% compared to 2016.
Revenue from online retail is forecast to hit US$10 billion by 2020, accounting for 5% of the country's retail market, according to Vietnam E-commerce Association.
