VinaCapital Vietnam Opportunity Fund has made a private equity investment in Chicilon Media Information Technology Vietnam Joint Stock Company (Chicilon Media), which it descrbes as “the leading inner-building advertising company in Vietnam”. VinaCapital is leading a consortium to invest $38m and the fund will put up $30m of this for an undisclosed stake and a seat on the board.
The announcement says that Chicilon Media’s LCD screens are located in the lifts and lobbies of residential and commercial buildings across Vietnam, reaching the growing urban middle class, the most-prized target audience for both local and global consumer brands. The indoor-building advertising channel is a highly cost-effective medium for advertisers since it enjoys uninterrupted attention from targeted audiences, for example while inside lifts. With per capita advertising spending in Vietnam forecasted to grow significantly in the years ahead, Chicilon Media is well-positioned to capture a sizeable portion of that spending, given the cost effectiveness, reach, and demographics of its channel.
Founded in 2006, Chicilon Media has consistently delivered double-digit revenue growth on average. The company has been constantly profitable, even during the Covid pandemic in 2020-2021. Following the post-Covid reopening of the economy, Chicilon Media has seen a strong recovery of its business, as evidenced by its net profit quadrupling in 2022 year-on-year. When Chicilon Media launched, there were nine building lift advertising companies in the market; today, there are only two, with Chicilon Media four times the size of its closest competitor in terms of market share.
Chicilon Media intends to use the investment from VinaCapital to expand within the industry and across other provinces, as well as continue R&D and upgrade facilities.
VOF : Vietnam Opportunity backs digital advertising platform