NTT E-Asia, a subsidiary of Japan’s NTT East (Nippon Telegraph and Telephone East Corporation), announced a strategic investment in Awing, a Vietnamese startup that provides an online advertising platform on public Wi-Fi networks.
Awing was founded in 2017. The advertising platform developed by Awing provides free Wi-Fi to mobile users. Instead, users must navigate through brand-specific online advertisements before connecting to her Wi-Fi network.
Target market is location-based advertising. The system is developed based on a sharing economy model. The developer owns only the platform, and the Wi-Fi infrastructure is invested by partners such as stores and shopping malls.
The newly announced deal will see NTT e-Asia own 32.5% of Awing. This is the first time the startup is raising capital.
With the Japanese investment, Owing will hold a 55.6% stake in the company’s founders.
NTT East is the world’s fourth largest communications and information technology company by revenue. The group is pursuing investment strategies in Southeast Asia, particularly in the areas of smart cities, digital transformation and software development.
The investment in NTT e-Asia also triggered a new wave of Japanese investment in Vietnam’s IT industry.
The startup confirmed that the funds will be used for “global expansion.” This is one of the many basic business models developed by the Vietnamese and used for export.
Nguyen Tien Dung, president and CEO of Awing, said the advertising industry accounts for 1-2% of GDP. Vietnam’s advertising industry is worth $2 billion, accounting for only 0.5% of GDP, and there is still plenty of room for development.
Regarding global expansion, Dung said the startup will provide its services in ASEAN countries for the time being, while also preparing to introduce the platform to the Japanese market.
The biggest challenges for startups expanding globally are difficulties in mobilizing capital, workforce, and trust from clients and partners.
Mr Dung said the investment from NTT East brings capital, technology and brand assurance.
Takashi Ebihara of NTT e-Asia said NTT invested in Awing because of its technology and unique business model.
NTT owns major resources in many countries and has relationships with carriers and device manufacturers. Therefore, this investment will help build his Awing ecosystem.
Cheong Dat
