According to information from DealStreetAsia, VinCSS – a cybersecurity company owned by Vingroup, aims to complete its Series B funding round worth $20 million in October this year. The company is currently in talks with 7 potential investors, including Singtel Innov8, Gobi Partners, Kvision, Google, MonteCristo Capital AG, SWC Global, Bright Pixel, and Boulevard Capital Partners.
“VinCSS is discussing this matter with two other potential investors. We have signed an NDA (Non-Disclosure Agreement) and are starting the evaluation process,” said Mr. Hai Nguyen, VinCSS’s Director of Fundraising, to DealStreetAsia. The funding round is considered VinCSS’s first external source of funding, aimed at supporting its expansion into the European market.
Mr. Hai Nguyen also revealed that 20% of the proceeds will be invested in R&D (Research and Development), 50% in marketing to double annual revenue in the next three years in the Asia-Pacific region, and talent acquisition, while the remaining 30% will be used for potential M&A deals with cybersecurity companies in other markets.
Established in 2018, VinCSS is a subsidiary of Vingroup, with CEO Mr. Do Ngoc Duy Trac as one of the co-founders. VinCSS has developed products in various areas of information security, identity and access management, IoT security in supply chain and logistics, as well as secure cybersecurity solutions for smart cars.
Vingroup has announced its willingness to reduce its stake in VinCSS, depending on ongoing discussions with investors. According to disclosed information, since its establishment, the conglomerate led by Chairman Pham Nhat Vuong has invested $17 million in VinCSS.
VinCSS is planning its international market penetration strategy, starting with engaging with local B2C (business-to-consumer) channels of local distributors to establish brand recognition for its products and solutions.
According to Mr. Hai, in the initial phase, the company aims to expand its operations by focusing on B2B sales to large corporations.
According to Statista, Vietnam’s cybersecurity market revenue is expected to reach $311.8 million in 2024, and $565 million in 2028, with an annual growth rate of 16.02%.
The cybersecurity landscape in Southeast Asia has witnessed significant activity over the past year. In October, Singapore Telecommunications (Singtel) agreed to sell its entire stake in Trustwave Holdings, the company’s cybersecurity business, to MC2 Titanium LLC for $205 million.
In early August, global cybersecurity leader Bitdefender acquired Singapore-based Horangi Cyber Security as part of its efforts to meet increasing demand for advanced solutions as well as compliance and governance management in multi-cloud environments.
In January 2023, Singapore-based cybersecurity company Blackpanda raised $15 million in a Series A round led by Primavera Venture Partners and Gaw Capital Partners, while PingSafe announced a $3.3 million seed funding round led by Surge, with participation from Peak XV Partners (formerly Sequoia Capital India & Southeast Asia), in July.
