KiotViet: Vietnam’s Top Cloud POS Targets 100K Merchants
KiotViet, Vietnam’s largest cloud POS system serving 32K+ merchants, aims to reach 100K stores by 2019 and evolve into a fintech platform for SME lending.
Table of Contents
Project Introduction
Welcome to 7:30 Project Spotlight, where we explore Vietnam’s most promising SaaS startups. This edition features KiotViet, the country’s first and largest cloud-based POS system, developed by Citigo. The name “KiotViet” translates to “Vietnamese small vendors,” reflecting its focus on serving local SMEs. After five years in the market, KiotViet boasts over 32,000 paying merchants and 50,000 total stores. While it appears to be a thriving B2B SaaS company, Citigo’s co-founder Tony Ng envisions the company evolving into one of Vietnam’s leading fintech giants.
Why Cloud POS Systems Are the Future
Traditional POS systems serve as a bridge between merchants and consumers, enabling cashless payments via card swipes. However, these systems fall short in meeting merchants’ business management needs.
In China, smart POS devices like Lakala have gained popularity by offering advanced features such as consumer behavior tracking and sales analytics, helping merchants optimize inventory and understand customer demographics.
The next evolution is cloud-based POS systems, which transform smartphones or tablets into POS terminals. Launched in 2012, KiotViet represents this third-generation technology, targeting Vietnam’s vast small and medium-sized retail sector.
Vietnam’s POS Market Potential
According to Nielsen, Vietnam had 1.3-1.4 million small merchants in 2017. Citigo’s internal research reveals that 300,000 of these merchants already use POS systems for transaction and sales management. These merchants are primed for cloud-based solutions, and KiotViet is strategically positioned to capture this market.
Key Industry Adoption
- Apparel retail dominates KiotViet’s user base, accounting for 32% of customers.
- The company has recently optimized its platform for F&B businesses, expecting rapid growth in this sector.
KiotViet’s Growth Strategy
With 32,000+ merchants, KiotViet holds 36-40% of Vietnam’s POS market share. The company aims to reach 100,000 merchants by 2019 before expanding into broader SaaS solutions.
Customer Acquisition Channels
- 60% come from online channels (direct sign-ups, Facebook ads)
- 18% from field sales
- 22% from referrals (expected to grow as the user base expands)
However, Tony Ng emphasizes a shift toward offline expansion, particularly in second- and third-tier cities. Citigo plans to establish local offices to strengthen merchant trust, as face-to-face interactions remain crucial in smaller Vietnamese markets.
The Fintech Vision: Becoming a Credit Scoring Powerhouse
Following the model of China’s Lakala (which launched Kaola Credit), KiotViet plans to leverage merchant data—sales, inventory, and transaction records—to facilitate lending between financial institutions and SMEs.
With merchant consent, KiotViet could become a credit intermediary, helping lenders assess risk and reduce bad debt.
Team Advantage: Vietnam’s Tech Outsourcing Expertise
- Tran Nguyen Hao, Citigo’s CEO, graduated from Hanoi’s top tech university in 2006 and previously ran a software outsourcing firm serving clients in the U.S., Australia, and Singapore. This experience laid the foundation for KiotViet’s development.
- Key investor Dinh Anh Huan, co-founder of Thế Giới Di Động (Vietnam’s leading electronics retailer), now leads Seedcom, a retail-focused VC backing brands like:
- ConCung (baby stores)
- GiaoHang Nhanh (logistics)
- TheCoffee House (Vietnam’s “Starbucks”)
- Tiki (e-commerce platform, partially owned by JD.com)
