TNB Aura’s Investment Strategy: A Focus on Vietnam’s Promising Market
Date: Mon, August 7, 2023 | 3:05 PM GMT+7
Author: Truong Van
Introduction to TNB Aura
Singapore-based venture capital firm TNB Aura (TNBA) has recently announced plans to raise capital for its third fund, with Vietnam as a primary focus. This initiative signals the firm’s intention to deepen its investment commitments in a market seen as ripe with potential.
Expanding Presence in Vietnam
TNB Aura’s founding partner, Vicknesh Pillay, emphasized the firm’s optimistic outlook on Vietnam’s future during an interview with Japan’s news platform Deal Street Asia. He noted, “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.”
With expectations to make 5-7 additional investments in the country over the next 18 months, TNB is positioning itself to capitalize on emerging tech trends that are still in their infancy in Vietnam.
Investment Insights and Opportunities
The firm has previously made a total of eight investments in the Vietnamese market over the last three years, often allocating 20-40% of its fund corpus to the region. However, the targeted size of the new fund remains undisclosed, allowing for speculation regarding how extensive TNBA’s commitment to Vietnam may be.
Recent activities highlight TNB’s strategic focus. For instance, they led a $6 million investment into Vuihoc, an edtech platform catering to K-12 Vietnamese students, and participated in a $17.1 million funding round for GIMO, a startup specializing in earned wage access. Pillay points out, “In our view, many tech trends are yet to emerge from Vietnam which we foresee to be an exciting country for investments over the next few years.”
Focus Areas in EdTech and Beyond
The educational technology (edtech) sector, in particular, has caught TNBA’s attention. Pillay noted that while much of the current edtech landscape focuses on English language education, there lies immense potential in the K-12 segment that aligns with the national curriculum. With a fragmented market for offline education centers, there’s an opportunity spanning over 17 million students, particularly in tier-2 and tier-3 cities.
Moreover, he mentioned the increasing willingness of Vietnamese parents to invest in education, spending an average of over 35% of their disposable income on this sector. This signals a robust market that could flourish with targeted investment.
Collaborative Growth Strategies
To enhance its venture strategy, TNB Aura has initiated a Scout program aimed at identifying early-stage investment opportunities in Vietnam. By partnering with local firms like ThinkZone Ventures, TNB has launched initiatives like the Global Minds Accelerator to co-invest, mentor, and support emerging tech startups.
Pillay highlighted the importance of collaboration in the Vietnamese market, stating how TNBA works closely with local seed funds and industry experts for access to high-quality deal flow. Their focus remains on the Series A stage, where they can provide significant value by assisting portfolio companies with governance, due diligence, and business planning.
Building Lasting Connections
A crucial aspect of TNB Aura’s strategy involves forming lasting relationships with founders. They aim to connect with entrepreneurs even before they seek funding. This proactive approach allows TNBA to recognize leading startups and potentially lead funding rounds at optimal stages, reinforcing their presence in the Vietnamese startup ecosystem.
Conclusion
Vicknesh Pillay’s insights provide a window into TNB Aura’s ambitious plans for Vietnam, illustrating a robust investment strategy driven by conviction in the country’s untapped potential. The firm’s focus on collaboration, research-based approaches, and early engagement positions it to navigate the evolving landscape of Vietnamese startups effectively.