Shondo Vietnam successfully raised 23 billion VND in capital at Shark Tank

Tran Pham Thong Hiep, CEO and founder of Shondo, came to Shark Tank Vietnam season 5 to successfully raise 23 billion VND for 30% of shares with Shark Hung Anh - Chairman of BIN Corporation.

CEO & Founder Tran Pham Thong Hiep at Shark Tank season 5

Shondo's products are mainly sandals , slippers, backpacks and newly launched sports shoes; average listed price from 350,000 - 500,000 VND/pair, potential customer group is students.

Some financial information Thong Hiep said, has invested about 3 billion VND in Shondo, the company's current total assets are about 30 - 40 billion VND, total debt is 1.5 times higher than revenue. Current premises costs account for 15%. Shondo's revenue has 40 - 50% from retail at offline stores, 30% from wholesale through agents and 20% from online.

In 2021, despite only selling for 4 months, Shondo's revenue still reached about 60 billion VND. Currently, Shondo has almost no receivables with a cash-on-delivery distribution model. Shondo added that the value of inventory is 3 times higher than revenue.

Shondo's inventory value is 2-3 times its revenue and after researching domestic and foreign businesses in the same industry, Thong Hiep said this ratio is very normal.

Sharing about the process of starting a business, Thong Hiep said that he started a business 8 years ago, with a capital of 7 million VND and made the first 50 pairs of shoes to sell on Facebook. After that, he sold on e-commerce platforms and is still selling on the website.

Closing a $1 million deal with Shark Hung Anh

Coming to Shark Tank Vietnam season 5, CEO Shondo gave convincing reasons to the Sharks: beautiful designs, self-produced and designed, potential footwear market in Vietnam and Shondo has sold more than 1 million pairs of shoes and currently has 20 stores, 2 factories and hundreds of sales agents nationwide.

CEO Thong Hiep wishes to open more stores across the country because the prices in stores are higher and customers can experience before buying online. His goal is to open nationwide coverage because the main customers are students.

Shark Phu proposed to invest 23 billion VND with the company value being the average profit of the last 2 years multiplied by 15 times. He said he could help Shondo with the basic foundation for business management and bring the business to a thousand billion VND.

Shark Binh believes that he can help startups with business strategies and organize online sales with an e-commerce system available throughout Southeast Asia. Shark Binh offers to invest 23 billion VND in exchange for 35% of Shondo's shares.

Faced with competition from Shark Phu and Shark Binh, Shark Hung Anh changed his investment proposal, he offered 23 billion VND to own 30% of Shondo's shares and convinced: "I do international business, I will bring your products to foreign markets. I have many branches in the US, Europe, Singapore and Hong Kong".

Shark Hung Anh shared that he felt the enthusiasm in Thong Hiep's eyes and encouraged him to have faith in what he had done. "I decided to invest so that you can do it, not to interfere too deeply in your work. I will be your companion to discuss, and I will support you to the maximum extent possible when you have difficulties," Shark Hung Anh promised.

After listening to the message from the Sharks, Thong Hiep chose to accompany Shark Hung Anh, the deal was closed with an investment of 23 billion VND from the Chairman of BIN Corporation for 30% of Shondo shares.