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Mobicast acquired by Vietnam’s retail giant Masan for US $12.96 M

For VN 295.5 billion (US $12.96 million), the Sherpa Company, a subsidiary of Vietnamese retail behemoth Masan Group, purchased a 70% interest in local mobile virtual network operator (MVNO) Mobicast.

Mobicast, which operates under the brand Reddi, will receive exclusive access to the group’s consumer base as well as physical and online contact points around the country as part of the new deal.

This would significantly lower Reddi’s consumer acquisition expenses, allowing the company to spend on the development of novel digital consumer goods and a customer service experience platform.

Meanwhile, Masan will be able to build a sticky loyalty programme by bringing its customer base together through Reddi. The acquisition would help the retailer digitalize its platforms and build a comprehensive off-to-online (O2O) products and services bundle known as “Point of Life.”

Mobicast, which was founded in 2016, debuted Reddi as the country’s second full-service mobile virtual network provider in 2019. (MNOV). The firm makes use of the Vietnam Posts and Telecommunications Group’s mobile phone infrastructure (VNPT).

Through its mobile app platform, Reddi focuses on delivering digital services solutions for youthful and modern clients. It also aspires to become a super app that is built on essential services like mobile telecommunications.

The firm also claims of using cutting-edge technologies such as 5G, IoT, e-sim, and mobile money to enhance the flexibility and customization of customers’ experiences.

Reddi, for example, is an MNOV that offers value-added wireless communication services without owning the cellular infrastructure. Traditional mobile network operators (MNOs) partner with MVNOs to offer telecom services to clients via radio spectrum broadcasts and related wireless network equipment.

This is a win-win situation for both MNOs and MVNOs, as well as a widely used business model in the telecom industry. Increased network capacity utilisation benefits MNOs, while asset-light business models favour MVNOs.

Masan claims to have a consumer ecosystem that spans food, banking, and digital life, accounting for around 80% of customer spending.

More than 2,400 WinMart, WinMart+ retail shops (created by a 2019 merger of retail arms with Vietnam’s largest conglomerate Vingroup) and over 300,000 general trade retailers make up the group’s offline distribution network in Vietnam.

Masan’s first investment and entry into the telecommunications business, according to a statement from the company.

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