Vietnam retail platform The Crown X raises $350M led by Temasek, TPG and ADIA

Vietnam conglomerate Masan Group Corporation announced Monday the signing of a $350 million primary investment in its retail unit The CrownX Corporation by a consortium of investors, including TPG, Platinum Orchid, a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA), and Seatown Master Fund, managed by a wholly-owned indirect subsidiary of Temasek Holdings.

The transaction marks the final capital raising at The CrownX ecosystem, which has attracted over $1.5 billion in investments from marquee global investors since its inception in the first half of 2020, Masan Group said in a statement.

The transaction also implies a post-money valuation of $8.2 billion for 100 percent of The CrownX ‘s equity, an equivalent of $105 per share, representing a 12 percent valuation uplift versus the previous capital raising round. Post the completion of the transaction, Masan Group will own 81.4% of The CrownX.

According to the statement, The CrownX intends to use the proceeds from the transaction to invest in growth initiatives and conduct a share buyback.

It said the mini-mall concept, a unique integrated format off or online offering a broad array of daily, essential products and services, provides The CrownX a cost-efficient model to win consumer wallet share across multiple consumer use cases.

The next game-changer will be developing fin-tech solutions including buy now pay later products for the underserved, mass-market consumers by leveraging its loyalty platform with Reddi at the core, it said.

“We have outlined our Point of Life vision for over 7 years now. The partnership with TPG, ADIA, and SeaTown is a validation of our ability to bring to life our Point of Life vision. This marks the end of our capital raising activities at The CrownX as we shift our entire focus to scale up our Point of Life platform nationwide both off and online,” said Danny Le, Chief Executive Officer of Masan Group.

He also looks forward to a 2023 to 2024 international Initial Public Offering of The CrownX with three key performance indicators (KPIs): i) increasing the group’s share of the consumer wallet by expanding its network, ii) digitizing the group’s entire platform to become a consumer tech company, and iii) double-digit profit margins.

Meanwhile, TPG Capital Asia Managing Director David Tan said that powered by its rising middle class and rapid urbanization, Vietnam is well-positioned to be a significant driver of the next chapter of Asia’s consumption story.

“Having witnessed Masan’s turnaround of WinCommerce (WCM), we believe that The CrownX is the platform to capture this opportunity. They will develop the ecosystem further to expand their services to create value for all Vietnamese consumers. Leveraging our deep experience investing across the consumer sector and in Southeast Asia, we look forward to working with the management team at The CrownX to accelerate the company’s vision,” he said.

AIDA Private Equities Department Executive Director Hamad Shahwan Al Dhaheri also said as one of the fastest-growing consumer markets globally, The CrownX is a proven, best-in-class operator with a strong management team, well-positioned to build the leading integrated omnichannel consumer ecosystem in Vietnam.

“This is yet another illustration of our global strategy of investing alongside leading partners such as the Masan Group and the wider shareholder base of The CrownX. Further building on our increasing focus on Southeast Asia, this commitment underscores our belief in Vietnam’s strong underlying economic fundamentals,” he said.

SeaTown Master Fund Deputy Chief Investment Officer Steven Chua also said: “We are very excited to have the opportunity to partner with The CrownX and Masan organization through this investment. We see a compelling long-term consumption growth story in Vietnam and The CrownX is well-positioned to capture this growth through the company’s transformative initiatives.”

According to the statement, all corporate actions mentioned are subject to customary corporate and regulatory approvals. Credit Suisse (Singapore) Limited acted as the exclusive financial advisor to Masan Group.