Masan Acquires a Mobile Virtual Network Operator; A Strategic Piece to its “Point of Life” Consumer Ecosystem Vision
Ho Chi Minh City, 21st September 2021 – Today, The Sherpa Company Limited (“The Sherpa”), a subsidiary of Masan Group Corporation (HOSE:MSN, “Masan” or “Group”) announced its entry into telecom, closing the acquisition of 70% of Mobicast Joint Stock Company (“Mobicast” or “Reddi”), operating under the brand Reddi, a start-up full-serviced Mobile Virtual Network Operator (“MVNO”), for a total cash consideration of VND295.5 billion.
MVNOs such as Reddi are a wireless communication service provider that does not own the wireless infrastructure. Therefore, MVNOs partner with traditional Mobile Network Operators (“MNO”) to use their radio spectrum-based transmissions services together with related wireless network infrastructure to provide telecom services to consumers. This is a win-win business model – MNOs realize increased network capacity utilization while MVNOs benefit from an asset-light business model. MVNOs are a common business model in the telecom space globally, for example MVNOs command a ~20% market share of the total United Kingdom mobile market.
Today, Masan’s direct to consumer platforms, Vincommerce, Techcombank and Phuc Long, lack a true integrated product and service solution to serve its ~15 million digital savvy consumers. The entry into the telecommunication sector lays the foundation to digitalize Masan’s platforms and build a unified off to online products and services solution, “Point of Life” consumer ecosystem. By unifying its consumer base via Reddi, Masan has the capability to create a sticky loyalty platform to deliver more value to its consumers – the only consumer ecosystem that spans grocery, financial and digital life accounting for approximately 80% of the consumer wallet.
On a standalone basis, Reddi stands to benefit as it has exclusive access to Masan’s consumer base and physical and online nationwide touch points. Specifically, this will significantly lower Reddi’s consumer acquisition cost enabling it to reinvest the savings to develop unique digital consumer solutions, 44% of subscribers predominately use voice and SMS in Vietnam, and customer service experience platform.
Masan Group CEO, Danny Le, said: “Our mission is to develop the most efficient integrated O2O products and services platform to serve 50 million consumers throughout their daily journey by 2025. Reddi is the first step to digitalize our platform and synchronize our products and services into a unified offering. While we are in the early innings, we have all the strategic components to develop the most cost effective consumer acquisition model thereby lowering the costs of our services and products for the benefit of our consumers – this is the definition of Point of Life.”
MASAN GROUP CORPORATION
Masan Group Corporation (“Masan” or the “Company”) believes in doing well by doing good. The Company’s mission is to provide better products and services to the 100 million people of Vietnam, so that they can pay less for their daily basic needs. Masan aims to achieve this by driving productivity with technological innovations, trusted brands, and focusing on fewer but bigger opportunities that impact the most lives.
Masan Group’s member companies and associates are industry leaders in branded food and beverages, branded meat, value-add chemical processing, and financial services, altogether representing segments of Vietnam’s economy that are experiencing the most transformational growth.
MOBICAST
Founded in 2016, Mobicast officially obtained its license to operate a MVNO network under the consumer brand, “Reddi”, in 2019. Reddi focuses on service quality and customer experience and targets the younger and more digitally savvy consumer segment. As the first digital MVNO in Vietnam that invests to build a full E-MVNO platform, Reddi aims to provide customers with a seamlessly integrated and holistic online experience with the goal of transforming into a super app based on core services such as mobile telecommunications.
CONTACTS:
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T: +84 90 9216 292
This press release contains forward-looking statements regarding Masan’s expectations, intentions or strategies that may involve risks and uncertainties. These forward-looking statements, including Masan’s expectations, involve known and unknown risks, uncertainties and other factors, some of which are beyond Masan’s control, which may cause Masan’s actual results of operations, financial condition, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions, future events or promises of future performance.