STORE management software firm KiotViet has raised US$6 million in Series A funding from Jungle Ventures and Traveloka, the Vietnamese startup announced on Thursday.
KiotViet will use the fresh funding to expand its point-of-sales business throughout Vietnam with a focus on remote areas, build up its leadership team, as well as to better serve the country’s microbusinesses and SMEs (small and medium enterprises). The company has over 70,000 active stores as paying customers across Vietnam.
Vietnam’s SMEs struggle to digitalise operational processes, said Tri Cao, deputy general director of Citigo Software, the firm which developed KiotViet.
”Our aim is to provide such companies with innovative and intuitive digital solutions to help them digitalise, increase efficiency, and tap into new opportunities,” he said in the press statement.
Founded in 2014, KiotViet provides SMEs omnichannel management software, with fees from 160,000 dong (S$9.60) a month. Services offered include inventory management, cash flow management and marketing.
The funding round marks the first time that Jungle Ventures has invested in a Vietnamese startup. The country is seeing “an explosion in tech-focused retail”, said Grace Yun Xia, principal at Jungle Ventures, who is joining KiotViet’s board.
“With even the traditional retail sector adopting more digital transactions, we see that KiotViet’s products and services – which provide comprehensive offline and online enterprise solutions – will be a definite game changer. The company is therefore well-positioned to help Vietnam’s smaller merchants close their digital gaps and enable more sustainable growth in the years ahead,” she said in the statement.
Jungle Ventures will help KiotViet with its business strategy and hiring of key personnel. It will also help the startup with collaborations and possible overseas expansion “when the timing is right”.
Elsa Chandra, assistant vice-president of Investment Traveloka, added: “As a leading travel and lifestyle technology platform in South-east Asia, we are excited to partner with KiotViet in its journey to empower digital solutions for thousands of SMEs in Vietnam.”
Ms Chandra will also serve on KiotViet’s board of directors.