Vietnam-based private equity firm Mekong Capital has invested $ 10 million in water purifier maker and distributor Mutosi Group, according to a statement on Wednesday.
This investment was made through Mekong Enterprise Fund IV (MEF IV), Mekong Capital’s largest fund which closed earlier this year at $ 246 million.
Mutosi Group specializes in water purifiers and electrical appliances that meet Japanese standards. The company focuses on four product lines: water purifiers, safe kitchen appliances, air purifiers and environmental protection systems, such as raw water treatment.
The company says after three years it has grown from 300 outlets in mid-2019 to more than 3,000 outlets nationwide today. By the end of 2021, Mutosi plans to increase its points of sale to 4,000.
The investment from the MEF IV fund will help Mutosi advance its R&D in manufacturing technology, improve the quality of the customer experience, train and develop staff and expand distribution, the statement said.
“Dung and his team of co-founders at Mutosi have an extraordinarily high interest in building a company focused on vision and transformation. They have a keen sense of purpose in bringing clean air and water to the Vietnamese people while helping to elevate Vietnam’s national brand to the world. Mutosi is a perfect fit for Mekong Capital, and we really look forward to partnering with them to realize their vision, ”said Chris Freund, Mekong Capital partner.
In March, Mekong Capital’s latest $ 246 million fund made its first investment – an undisclosed amount in local artisan chocolatier Marou Chocolate Company.
Founded in 2001, Mekong Capital has the most extensive private equity history in Vietnam. Their funds have made 35 private equity investments, 26 of which have been fully sold. Mekong Capital has advised five funds, two of which are currently active.
Companies owned by Mekong Capital are typically among the fastest growing companies in Vietnamese consumer-oriented sectors such as retail, restaurants, consumer goods and education. Some of their well-known investment successes include Mobile World, Phu Nhuan Jewelry (PNJ), ICP, Golden Gate, Vietnam Australia International School (VAS), Masan Consumer, Traphaco, Pharmacity, F88, YOLA, Pizza 4P’s, Vua Nem, ABA Cooltrans and Nhat Tin Logistics.
MEF IV invests between $ 10 million and $ 35 million per trade and can make minority and buyout investments, according to a statement.
It will continue to invest in Vietnamese businesses and exclusively in proven consumer-oriented sectors that benefit from growing Vietnamese consumer demand and adoption of modern business practices.
Mekong Capital has had three other funds in the Mekong Enterprise Fund series in addition to the Vietnam Azalea Fund, a 2007 vintage pre-IPO fund.
MEF III, which launched in 2016 at $ 112 million, has so far closed nine deals and pulled out of one company – jewelry retailer Precita.
Among the funds fully ceded by Mekong Capital, MEF II generated a net return multiple of 4.6x and a net internal rate of return (IRR) of 22.7%, while Vietnam Azalea Fund generated a gross return multiple. of 1.8x and a gross IRR of 10.5%.