HO CHI MINH CITY -- Loship, a delivery startup, wants to be the first Vietnamese firm to list on a US stock exchange in more than a decade, according to its CEO, exhibiting the kind of ambition that international investors are stoking as they explore the region for opportunities.
Loship said it intends to debut on the New York Stock Exchange by 2024, after reaching profitability in 18 to 24 months, following a $12 million investment round headed by Ant Group-backed BAce Capital.
Investor money is pouring into Southeast Asia and India amid a digital crackdown in China, propelling loss-making businesses like Grab and Zomato to record values.
Loship, based in Ho Chi Minh City, has attracted 2 million consumers in Vietnam's fast-growing but fiercely competitive sector. The company is currently navigating a tough COVID shutdown, which has created unprecedented disruption and cleared streets of motorbike drivers.
Loship CEO Nguyen Hoang Trung, who co-founded the company four years ago, is sure that the company would survive the current crisis and subsequently develop by focusing on high-margin orders and mimicking Chinese online companies' practices.
In Vietnam, which has a population of 98 million people, Loship is up against a slew of competitors, ranging from Temasek-backed AhaMove to regional behemoths Gojek and Grab, who are likely its greatest opponents.
"We don't have enough drivers," Trung remarked in a video interview. "But so do my competitors." "This is a chance for us to outcompete" the competition.
The conflict was compared to a Nascar road race by the 29-year-old CEO. The top drivers pull ahead when they reach the most difficult part of the track, the curves, he said.
Last week's pre-series C investment round was co-led by Hong Kong-listed Sun Hung Kai & Co, in addition to BAce Capital. Money was also raised from former employees of Skype, Starbucks, and BNP Paribas. Loship was valued at $100 million in the round, according to DealStreetAsia. Trung declined to comment on the price.
Regional delivery behemoths are already attempting to warm up public markets in the United States. Gojek, an Indonesian ride-hailing startup that has evolved into a super-app, is preparing a public offering, while Grab, a Singapore-based special purpose acquisition company, has announced a merger with Nasdaq-listed Altimeter Growth. Due to increased legal restrictions, Grab has been forced to postpone its public debut until the end of 2021.
Cavico, the first Vietnamese firm to list on the New York Stock Exchange, was delisted from the Nasdaq in 2011 for missing securities filing deadlines, less than two years after its first public offering.
VNG, a gaming and messaging behemoth, was in talks with Nasdaq in 2017 to become Vietnam's next public company in the United States but has remained silent since then. SPACs located in the United States have recently approached Tiki, Vietnam's largest e-commerce company, according to DealStreetAsia.
Before selling shares abroad, Vietnamese enterprises must overcome a slew of obstacles, including obtaining state approval.
According to Trung, the pandemic has pushed many first-time internet users to the Loship app, which they will continue to use until COVID has passed.
Deliveries of groceries and packaged lunches account for the majority of Loship's revenue. Flowers, medications, and other low-order, high-margin commodities are also transported from warehouses to customers.
BAce Capital, whose partners were directors at Alibaba Group and Ant Group, offered a different growth approach. Loship introduced a game to its app based on their understanding of Chinese patterns, similar to how China's Pinduoduo added games to its e-commerce platform.
This type of multifunctionality, according to Trung, is similar to a supermarket, where buyers can browse around without knowing what they'll buy. Users may download the Loship app with the intention of playing games rather than shopping, yet they may end up making purchases. MoMo, Vietnam's largest e-wallet, is employing a similar method.
Trung said, "What occurred in China will happen in Vietnam." "There's a Vietnamese proverb that goes like this."