Singapore-based venture capital firm TNB Aura (TNBA) is making headlines as it gears up for its third fund, which will place a strong emphasis on Vietnam as a core market. This strategic move comes as the firm aims to bolster its investments in the rapidly growing Southeast Asian nation, signaling confidence in the region’s vibrant tech landscape.
According to a recent statement by TNB Aura, they are actively seeking to raise capital for this new fund, a decision highlighted in an interview by founding partner Vicknesh Pillay with the Japanese news platform Deal Street Asia. Pillay expressed optimism about Vietnam’s untapped potential, indicating that a significant portion of their future investments will be directed towards this market.
“Through applying some of the research and learning from our investments in Indonesia and other more mature markets, we foresee TNBA making a lot more investments in Vietnam,” Pillay noted. The firm expects to make between five to seven key investments in Vietnam over the next 18 months, illustrating its commitment to deepen its footprint in this emerging tech hub.
Vietnam is increasingly regarded as a hotbed for technological innovation, with Pillay highlighting that many tech trends are yet to materialize. This anticipation of growth in the Vietnamese tech sector presents a compelling narrative for TNB Aura, which has already made eight investments in the country over the last three years. Typically, the firm allocates about 20-40% of its fund corpus to Vietnam, although the targeted size of this new fund has not been disclosed.
Vicknesh Pillay (left) and Charles Wong, co-founders and managing partners, TNB Aura. Photo courtesy of the company.
In line with its investment strategy, TNB Aura recently led a $6 million Series A funding round for Vuihoc, an edtech platform catering to K-12 students in Vietnam. This comes on the heels of a prior investment in Vietnamese fintech startup GIMO, where TNBA participated in a $17.1 million Series A round. These investments reflect the firm’s focus on sectors that are ripe for innovation and demand, particularly in education technology.
Pillay also noted that the current edtech landscape in Vietnam is largely concentrated around English language and training providers. He sees a significant opportunity in the K-12 segment, particularly targeting subjects included in the national curriculum. This is critical in a country where offline education centers, though prevalent, often fail to provide affordable access to students in tier-2 and tier-3 cities. With over 17 million students in these areas, the gap indicates a ripe market for tailored educational solutions.
Another exciting initiative from TNBA is their Scout program, which aims to identify early-stage opportunities within Vietnam. This approach was underscored by their collaboration with local venture firm ThinkZone Ventures to launch the Global Minds Accelerator program. This initiative is designed to co-invest in and mentor Vietnamese tech startups, allowing TNB Aura to position itself as a key player in the nation’s burgeoning startup ecosystem.
TNB Aura’s strategy not only focuses on securing high-quality founders early but also leveraging industry expertise through collaborations with local seed funds. Pillay emphasized the firm’s commitment to adding significant value to their portfolio companies, particularly in guiding them through governance practices, business planning, and milestone setting. This meticulous approach ensures TNBA secures a leadership role in funding rounds, thereby maximizing their influence in the market.
Overall, TNB Aura’s unwavering faith in Vietnam’s economic prospects is indicative of a broader trend among global investors. The firm aims to continue paving the way for innovation and growth, fostering a thriving investment landscape in Vietnam, ultimately shaping the future of its technology sector.