Alibaba’s eWTP Technology and Innovation Fund has recently made an undisclosed investment in Vietnam-based food chain, Homefarm.
According to CEO Tran Van Truong, the investment is a seven-figure amount. He added that the proceeds from this investment will be used to expand Homefarm’s retail outlet chain with an aim to reach 1000 retail outlets by 2025. Homefarm, as of July 2021 operated 150 retail outlets in the country.
In addition to the existing retail channels, the Vietnamese food chain will continue to distribute its product on ecommerce platforms to attract more customers. Homefarm, with this investment, will temporarily go aboard on a virtual transformation as well as the progression of fashion sales techniques.
Vietnam is one of the largest food production centers in South East Asia. The country has witnessed an increase in the retail sales of food products in recent years. According to Statista.com, retail sales are expected to exceed $66 billion by 2023.
About eWTP Fund
Alibaba-backed eWTP Innovation and Technology Fund was established in 2018 and is worth $600 million. It was formed with Ant Group and Chinese billionaire Jack Ma as the core investors. The fund focuses on technological innovation and the development of businesses.
The eWTP Fund aims to feat startup opportunities in emerging markets as well as Chinese startups steering emerging markets. eWTP Fund has recently increased investment in Vietnamese retail firm Ficus Asia Investment Pte. Ltd. through a $10 million investment. Last year, the eWTP fund had invested $50 million in this company.
The eWTP Fund, in July 2021 also invested $2 million in Vietnam’s Educa Corporation which runs EdTech startup Edupia. The fund also invested in KKGroup an offline marketplace and XTransfer, the Chinese Money Generation company, Thailand’s logistics firm Flash Express, and Box8, an Indian food generation company.
Founded in 2014, Homefarm is a Hanoi-based chain of retail stores that promotes imported food in the country by integrating fashionable grocery shopping channels, online sales and home delivery options.