Vietnammm, one of Vietnam’s leading food delivery service companies has been acquired by South Korea’s Woowa Brothers, operator of that country’s leading food delivery platform, Baedal Minjok,
Vietnammm.com was established in 2011 and was the first company to enter the online delivery space in Vietnam. In 2013 Vietnammm.com partnered with Takeaway.com to strengthen and grow the business of online ordering in Vietnam. Takeaway.com is headquartered in the Netherlands and owns and manages various websites related to food takeaway services.
In 2015, Vietnammm acquired Foodpanda’s Vietnam operations from Rocket Internet, which gave the company significant growth with more restaurants and customers becoming members of its network.
However, newcomers, including Now by Foody, and GrabFood, have entered the Vietnam food delivery market and Vietnammm is facing strong completion from each of these companies.
Woowa Brothers is a South Korean company that specializes in developing apps and advertising platforms and reportedly began researching the Vietnamese market in 2018. The company operates the food delivery platform Baedal Minjok in Korea, which was backed by Goldman Sachs.
In December 2018 Woowa Brothers raised $320 million USD from global investors in a deal that valued the company at $2.6 billion USD. Investors of the Series G funding round include Hillhouse Capital, Sequoia Capital and Singapore’s sovereign fund, GIC.
According to media reports, the company has been investing in artificial intelligence and autonomous driving technology to develop delivery robots and will use its newly raided funds to speed up its technology initiatives while also investing in companies across the Asia-Pacific region.
Local market research firm GCOMM conducted a recent study on food delivery and noted the following insights:
• The potential of this segment remains strong for more startups to enter
• More than 99% of respondents to GCOMM’s survey said they used online food delivery services at least three times a month
• According to Euromonitor, Vietnam’s food delivery market was valued at US$33 million USD (2018) and is forecast to reach US$38 million in 2020.
• The six most popular apps in Vietnam are: GoFood, GrabFood, LaLa, Lixi, Now by Foody and Vietnammm
• GrabFood is currently the fastest food delivery service provider in the country.
Woowa Brothers is expected to kick off Vietnamese operation in the first half of 2019. It is unclear whether Vietnammm will be rebranded and how Woowa Brothers will take over the business.