At a Glance
Vietnam’s social commerce startup Mio App has raised $1 million in a seed round from Venturra Discovery and Golden Gate Ventures. The funding shall be utilized to build their distribution center, expand their product and tech teams, and also in exploring other categories. Mio App’s primary market taps into the areas where other e-commerce giants have not entered
Vietnam’s social commerce startup Mio App, which ensures faster delivery in tier 2 and tier 3 cities, has recently raised $1 million in seed funding, co-led by Venturra Discovery and Golden Gate Ventures. iSeed SEA, DoorDash’s product and business helper, Gokul Rajaram, and co-founders of Meesho, Vidit Aatrey, and Sanjeev Barnwal, had participated in the funding round.
While e-commerce continues to surge, the inroads made by giants in this field into smaller areas and rural cities are less. This is the market that Mio targets and about 90 percent of their customers are those who had previously never bought any product online, reports quoting Mio App Co-Founder and CEO, Trung Huynh, said.
As per reports, Mio shall invest the proceeds in building its distribution center, expanding its tech and product teams, and expansion into other categories such as fast moving consumer goods (FMCG) and household appliances apart from fresh groceries and poultry, which remains their primary focus for now. In addition to these, Mio plans to add more personalization options for product categories and resellers to help them build their own brand identities.
Founded in 2020, Mio relies on its many resellers (agents) for its work. They are mostly women, aged between 25 to 35, and earn about $200 to $300 with a 10 percent commission on each order.
Additional commissions are allotted on the basis of their performance. For Mio’s resellers, their customers are usually their friends, family members, and neighbors, to whom they promote group orders through social media platforms like Facebook, TikTok, Instagram, or Vietnam’s most popular messaging app, Zalo. The orders are placed and managed afterward through Mio’s reseller app.
As of now, Mio is working on building an in-house logistics and fulfillment system and a distribution center in Thủ Đức to effectively distribute goods in and around Ho Chi Minh and its surrounding cities.