Mio, a Vietnamese social commerce network, has received an $8 million Series A round of funding less than a year after announcing its seed round of financing. Among those who contributed to the fundraising was Jungle Ventures, with participation from Patamar Capital and Oliver Jung. Several existing investors, including GGV, Venturra, Hustle Fund, iSEED SEA, and Gokul Rajaram, also returned to participate in the round.
Mio was initially highlighted by TechCrunch in May 2021, around the company’s $1 million seed fundraising round. Mio is a group purchasing platform established in 2020 and concentrates on selling fresh fruit and groceries in Tier 2 and Tier 3 cities around Vietnam. Clients may expect next-day delivery since the firm has invested in a logistical infrastructure to ship food straight from farmers to customers.
The Series A round increases Mio’s total funding to $9.1 million, which will grow the company’s logistics and fulfillment system, expand into new locations in Vietnam, and introduce new product categories such as fast-moving consumer goods (FMCG) and home appliances to the market.
Mio co-founder and chief executive officer Trung Huynh said that since TechCrunch first reported the company seven months ago, it has achieved a tenfold rise in gross merchandise value and a tenfold increase in agents or resellers and has grown its staff from 60 to 240 individuals. Currently, it fulfills more than 10,000 pieces of fresh produce every day, and it operates in Ho Chi Minh City and the surrounding areas of Thu Duc, Binh Duong, Dong Nai, and Long An, with ambitions to expand into northern Vietnam shortly.
He said that the data “increased our confidence in this concept and its possibilities.” As we strengthen our footprint in current areas and expand into new provinces, we need more money to expedite recruiting, product development, and supply chain operations to keep up with the pace of expansion.
Mio has vertically integrated the most critical layers of its value chain to provide next-day deliveries, including procurement, warehousing, order sorting, and large-scale distribution centers. Most of the startup’s logistical infrastructure is owned by the company, which operates its fleet of couriers. According to Huynh, the company’s ability to transport fresh food straight from farmers to clients in less than 16 hours has increased customer retention and growth. The company will continue to lower delivery times as technology allows.
Mio Partners is the company’s authorized reseller. Mio’s founder, Huynh, said that one of the driving elements behind the initiative is identifying the ideal individuals to target for it, such as “housewives and stay-at-home parents in lower-income areas who like sharing value-for-money items with their social circle of friends.”
They collect orders, often from friends and family, and charges are sent to them in batches to distribute them. According to the firm, Mio Partners may earn up to $400 per month, which includes a 10 percent fee on each purchase and extra payments depending on the monthly success of other resellers they recommend to the program, according to the startup.
The prospect of Mio expanding outside of Vietnam, according to Huynh, “will only be examined at a more opportune moment once we have effectively created our playbook for Vietnam,” he added.