Mekong Enterprise Fund IV completed an investment in HSV Group

Ho Chi Minh City, Vietnam (05 July 2021) – Mekong Capital announces that the Mekong Enterprise Fund IV (MEF IV) has completed an investment into HSV Group.  

HSV Group is the largest cosmetics retailer in Vietnam in terms of number of stores. As of 30 June 2021, HSV Group has self-operated 105 stores.

Started in 2005 as the exclusive distributor of The Face Shop (a cosmetics brand from LG Cosmetics, Korea), 12 years later, HSV Group expanded to become the non-exclusive distributor of the sportswear brand Adidas and the exclusive distributor of Reebok products. In 2018, realizing the rapid growth of multi-brand cosmetics retail chains, HSV Group opened their own multi-brand cosmetics chain under the brand name Beauty Box, which now has 11 stores nation-wide. Beauty Box operates under Retail-tainment (*) concept, providing customers with an engaging shopping experience. 

The investment from MEF IV will speed up HSV Group’s store network growth and widen their brand assortments while upholding their commitment to elevate customer experience. The company also aims to strengthen their corporate culture and enhance the capabilities of their leadership team to fulfill their vision. 

Mrs. Le Thi Bich Phuong, Co-Founder and CEO of HSV Group, said: 

“We believe that Corporate Culture will foster a collective power for an ever-growing business. Mekong is an experienced partner in building a corporate culture as a solid foundation for breakthrough development. Therefore, we believe that our partnership will enable HSV to realize our Vision 2025: to be the role model of employee experience and customer experience in Vietnam.”

Mr. Chris Freund, Partner of Mekong Capital, said:

“We are so excited to be partnering with the co-founders of HSV Group, Mrs. Le Thi Bich Phuong and Mr. Nguyen Quoc Binh, to achieve HSV Group’s vision to emerge as the new model of awesome customer experience and employee experience in Vietnam. The HSV team is very open-minded, proactive and is already providing so much leadership towards the fulfillment of their vision. Together, we are committed that HSV Group will reinvent what’s possible in the world of customer experience and employee experience, providing a robust foundation for growth of their retail network and customer engagement, and setting the new standard for retail in Vietnam.”

(*) the blend of retail and entertainment intended to offer a more-than-buying shopping experience by clubbing various activities along with shopping, such as expert consultations, make-up trials, etc. (Financial Express, 2019)

About HSV Group

HSV Group was founded in 2004 by two friends, Mrs. Le Thi Bich Phuong and Mr. Nguyen Quoc Binh, as the exclusive distributor of The Face Shop (a cosmetics brand from LG Cosmetics, Korea) since 2005.

12 years later, being inspired to develop beauty solutions inside and outside for women, consecutively in 2016 and 2017, HSV Group expanded to become the exclusive distributor of sportswear brand Reebok and non-exclusive distributor of Adidas. 

In 2018, realizing the rapid growth of multi-brand cosmetics retail chains, HSV Group opened the first multi-brand cosmetics store named Beauty Box store in Ho Chi Minh City. Currently, Beauty Box has grown to 11 stores in 3 major cities: Hanoi, Hai Phong, and Ho Chi Minh City, with more than 7000 products from more than 70 brands. In addition, Beauty Box is also set up as a customer-driven brand where customers can benefit from in-store consulting services as well as new beauty trends through stories on its website.

As of 30 June 2021, HSV has self-operated a total of 105 stores: 69 The Face Shop stores, 11 Beauty Box stores, 7 Club Clio stores, 6 Adidas stores and 12 Reebok stores.

HSV Group is the third investee company announced by Mekong Enterprise Fund IV.

For more information about HSV Group, please visit the firm’s website at beautybox.com.vn.

About Mekong Capital & Mekong Enterprise Fund IV

Established in 2001, Mekong Capital has the most extensive private equity track record in Vietnam. Their funds have completed 42 private equity investments, of which 28 have been fully exited. Mekong Capital has advised 5 funds, and 2 is currently active.

Mekong Capital’s investee companies have typically been among the fastest-growing companies in Vietnam’s consumer-driven sectors such as retail, restaurants, consumer products 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.

Mekong Enterprise Fund IV is a private equity fund launched in January 2021 and currently has $246 million in committed capital. Mekong Enterprise Fund IV will continue Mekong Capital’s successful strategy of investing in growth-equity investments in Vietnamese companies and exclusively in proven consumer-driven sectors that benefit from the growth in Vietnamese consumer demand and the adoption of modern business practices. The Fund will focus in particular on retail, education, restaurants, consumer services, FMCG, and health care.

Mekong Enterprise Fund IV applies Mekong Capital’s Transformational Private Equity approach and the Vision Driven Investing framework with an intention to fulfill its commitment for each investee company to achieve its vision.