Alibaba and Baring Private Equity Invest $400 Million in Masan's The CrownX
Alibaba Group and Baring Private Equity Asia are investing $400 million in Masan's integrated consumer retail arm, The CrownX. The deal aims to bolster The CrownX's digital capabilities and accelerate its online-to-offline strategy in Vietnam.
Masan Group Corporation, a Vietnamese company, has announced a significant investment deal where a consortium led by Alibaba Group and Baring Private Equity Asia (BPEA) will acquire a 5.5% stake in its consumer retail arm, The CrownX (TCX), for $400 million. This transaction values The CrownX at $6.9 billion pre-investment.
The CrownX consolidates Masan's consumer goods and retail operations, including Masan Consumer Holdings and VinCommerce. The partnership with Alibaba will see The CrownX collaborate with Lazada, Alibaba's e-commerce platform, to enhance its digital presence and accelerate the development of the online-to-offline (O2O) market in Vietnam.
Masan CEO Danny Le stated the partnership would speed up the company's goal to become a one-stop shop for consumers' daily needs. Kenny Ho, Head of Investment for Southeast Asia at Alibaba, highlighted the potential for synergistic growth by combining Masan's offline network with Lazada's online expertise to modernize Vietnam's retail landscape.
A strategic cooperation agreement will be established between VinCommerce and Lazada, making VCM the preferred grocery retailer on Lazada's platform in Vietnam. This includes knowledge sharing, joint analytics development, and utilizing VCM's offline stores as pickup points for online orders.
Masan Group Corporation is also reportedly in advanced discussions for an additional strategic investment of $300-$400 million into The CrownX, expected to close within 2021.