Mekong Capital

case study

Entrepreneural finance
and venture capital

Nguyễn Văn Khải - Student ID: 10221020

Bùi Vân Anh - Student ID: 10321034
Trần Minh Nhật - Student ID: 18968
Contents 1. Mekong Capital
Background information
Investing portfolio Mekong Capital
Potential valuations - FUEL
framework analysis
2. Portfolio start-up: Pizza 4 P’s
Background information
VEM analysis
3. Summary
Background Information

Established: 2001 by Chris Freund

Headquarters: HCMC, Hanoi
Legal Structure: Limited Liability Company

Specializes in private equity investments in

Vietnam’s consumer-driven sectors.
Focus: Driving transformational growth in
companies.
 Background Information

Vision-Driven investing

Clear Vision: Align company goals with a bold and measurable future.

Empowered Leadership: Build strong teams through coaching and support.

Execution Excellence: Optimize operations for scalable growth.

Collaborative Partnership: Drive transformation together, not through control.

 Background Information
2001 - Early Stage: SME Export Manufacturing Focus
Goal: Scale operations and enhance exports, supporting manufacturing and export-
related industries.

2006 - Shift to Consumer Businesses

Key Investment: Mobile World
Goal: Leverage the consumer-driven market in Vietnam, focusing on retail success
in electronics.

2015 - Exclusive Consumer Sector Focus

Key Investments: F88 (financial services) & Pizza 4P's (restaurant chain)
Goal: Serve Vietnam's middle class with financial services and dining experiences.
 Background Information

Mekong Enterprise Fund I (2002): Early-stage focus with $18.5 million in committed capital.

Mekong Enterprise Fund II (2006): Focus on high-growth companies with $50 million in

committed capital.

Mekong Enterprise Fund III (2015): Expansion-stage investments with $112 million in committed

capital.

Mekong Enterprise Fund IV (2019): Large-scale, consumer-driven investments with $246 million

in committed capital.
 Investment Portfolio

Total Investments: Over 40 companies since its inception.

Exited Investments: 29 successful exits, such as Thế Giới Di Động (Mobile World) with

a record-breaking IPO.

Current Portfolio Companies: 14 companies include Pizza 4P's, F88 and Pharmacity.

Sectors of Interest: Retail, FMCG, F&B, education, healthcare, and consumer services.
 Investment Portfolio
Notable Investments

Mobile World: Mobile World grew from 7 stores in 2007 to over 2,000 by 2018 when
Mekong Capital fully exited, leading to a 57x return on investment for the Fund.
F88: F88 has achieved significant growth, expanding from 304 branches in 2020 to
830 branches by February 2023.
Pizza 4p’s: Pizza 4P's expanded from 8 to 27 restaurants in Vietnam and Cambodia
between 2018 and 2022.
Pharmacity: Pharmacity is now one of the biggest state-of-the-art pharmacy chains,
operating more than 930 stores nationwide.
 Mekong Capital

Fundamental Structure (F)

Investor Identity Organizational Setup Governance Model

Mekong Capital: The VC investor driving Institutional Backing: Funded by Co-management Approach: Close
the growth of Mobile World. Mekong Capital’s Vietnam-focused collaboration with portfolio companies,
Vision Driven Investing (VDI): Mekong VC fund. ensuring the founder’s vision is aligned with
Capital uses its VDI framework, Mentorship and Oversight: Mekong Capital’s expertise.
emphasizing alignment between the Structured with strategic Strategic Guidance: Mekong Capital provides
company’s vision and strategic goals. mentorship and layered oversight to hands-on support to maximize potential.
ensure growth.
 Mekong Capital

Underlying Motivation

What does the investor

How does the investor Risk and Patience
want? Long-Term Perspective: Mekong Capital
value returns? typically holds investments for 7+ years,
Financial Returns: Achieving high returns Alignment with Long-Term Goals: Mobile giving startups like Mobile World time to
from scalable, growth-stage companies like World’s success is not just about short-term scale and mature.
Mobile World. profits but also about aligning with Vietnam's Economic Volatility: High tolerance for
Non-Financial Impact: Promoting local economic growth. Vietnam’s economic fluctuations,
supply chains, creating jobs, and fostering ESG Integration: Mekong Capital incorporates focusing on long-term impact rather
the sustainable development of the Environmental, Social, and Governance (ESG) than short-term challenges.
Vietnamese retail sector. principles into its investment strategy for
sustainable, long-term growth.
 Mekong Capital

Expertise and Networks

Investor’s Contributions Expertise Network Influence

Hands-On Support: Offering expertise Consumer Behavior: Deep Business Community: Strong
in supply chain management, knowledge of consumer patterns in relationships with key players in
leadership development, and strategic Vietnam, crucial for the retail Vietnam’s business ecosystem,
planning. industry. opening doors to valuable
Market Positioning: Expertise in Retail Operations: Specialized partnerships and funding
refining consumer behavior strategies guidance on building efficient retail opportunities.
and understanding market trends. operations to ensure growth in
highly competitive markets.
 Mekong Capital

Investment Logic and Style

How does the investor Selection Criteria Interaction with

operate? Growth-Stage Companies: Targeting Companies
Vision-Driven Investing: Focus on consumer-driven companies with established
Mentorship: Close collaboration with the
sectors with high scalability potential. operations, like Mobile World, which
founders to guide strategy, refine
High-Engagement Model: Mekong Capital is actively are ready to scale.
execution plans, and overcome obstacles.
involved in shaping business strategies, ensuring Focus on Scalability: Companies must
Continuous Monitoring: Regular
alignment with long-term goals. align with Mekong Capital’s values and
performance assessments to track
meet market demands for growth.
growth and refine strategies as needed.
 Mekong Capital

FUEL Evaluation of Mekong Capital’s

Investment Approach
Strength Challenge Opportunities
Strategic Support: Strong Geographical Expansion: Entering
Resource-Intensive Engagement:
operational guidance and underserved regions of Vietnam.
High-engagement model demands
expertise from Mekong Capital’s E-Commerce Growth: Expanding
significant resources and limits
leadership and resources. the online platform to capture the
scalability.
ESG Focus: Alignment with rising demand for online grocery
Competitive and Economic
sustainable practices, ensuring shopping.
Volatility: Facing strong
long-term business success. Innovation and Partnerships:
competition in Vietnam’s retail
Leveraging Mekong Capital’s
space and the risks of economic
networks for strategic
volatility.
partnerships and product
diversification.
Pizza 4p’s

Pizza 4P’s, founded in 2011 by Yosuke Masuko,

known for its premium pizzas, in-house
mozzarella and quality ingredients with over
20 stores across the country mostly in urban
hotspots like Ho Chi Minh City and Hanoi
 PIZZA 4P’S
EVOLUTION
PATH
EXPANSION AND HR ASIA BEST COMPANIES
BRAND REFINEMENT TO WORK FOR (2024)
(2019–2022)
FOUNDING
AND INITIAL
02 04
CONCEPT
(2011) MEKONG CAPITAL
INVESTMENT (2019)
MEKONG ENTERPRISE
01 EARLY GROWTH AND FUND III (MEF III)
TOP 15 TECH
INNOVATORS IN
BRAND PIZZA
ESTABLISHMENT MARKETPLACE
(2023)
(2011–2015)
03

COOL JAPAN FUND

INVESTMENT
(2022)
 Venture Evaluation Matrix

Artisanal Pizza Movements, Inspiration from

Nando’s, Shake Shack business strategies

premium authentic Italian pizza but

adjusted to fit Vietnamese taste
 VENTURE EVALUATION MATRIX
ANALYSIS OF PIZZA 4P’S
Need Team market

premium market Yoshinobu Kadoya The market growth rate is

quality and authentic Diverse expertise such as strong in urban areas
food with adaptation finance, marketing, and Quick but harder for
unique dining experience customer service mass-market adoption

8/10 8/10 7/10

competition Network Scale

International Chains low market penetration premium pricing and
Local Competitors outside HCM marketing strategies
Premium Dining not central to any major multi-channel
Competitors business networks distribution

7/10 5/10 8/10

 VENTURE EVALUATION MATRIX
ANALYSIS OF PIZZA 4P’S
need
10
7.4/10
Production
8
vertical integration, in- organization team
house production, and 6
technology use
architectural design 4

8/10 2

production 0 market

Organization
visionary leadership
founders' legacy and
organizational values scale network

competition
8/10
 Mekong Capital

Conclusion

Private equity investments in Vietnam’s consumer-

driven sectors.
Vision-Driven Investing ensures scalability and
sustainability.
Strength: Operational guidance and ESG alignment.
Opportunity: Expansion, e-commerce, and partnerships.
 Mekong Capital

PREFERENCES
https://pizza4ps.com/vn/news/2917/
https://cafef.vn/giai-ma-hien-tuong-nganh-fb-pizza-4ps-khong-quang-cao-khuyen-mai-van-duoc-
san-lung-giua-mua-dich-xuat-hien-ca-tren-ke-sieu-thi-ban-online-qua-shopee-lazada-
20210824085754661.chn
https://vinalink.com/cam-nang-ve-chien-luoc/chien-luoc-marketing-cua-pizza-4p.html
https://repository.vnu.edu.vn/bitstream/VNU_123/67963/1/RESEARCH%20ON%20CUSTOMER%E2%8
0%99S%20SATISFACTION%20FOR%20THE%204P%E2%80%99S%20PIZZA%20RESTAURANT%20IN%
20HANOI.pdf
https://www.tapchikientruc.com.vn/tac-gia-tac-pham/nha-hang-pizza-4ps-doc-dao-voi-nhung-tru-
gach-go.html
https://www.mekongcapital.com/our-investments/
 Mekong Capital

Thank You
for your attention

9th December, 2024

 Mekong Capital

Q & A Session