Vietnam-focused private equity firm Mekong Capital announced on Tuesday that the Mekong Enterprise Fund IV (MEF IV) has invested $15 million into Gene Solutions.
Gene Solutions is a genetic testing company in Vietnam and the market leader for reproductive health tests, which respond to critical healthcare needs, such as helping parents detect chromosomal disorders during pregnancy, or preventing genetic problems, and helping to conceive a child (in-vitro fertilization – IVF).
The company also offers lifestyle tests directly designed for consumers, such as hereditary tests, and has entered the oncology segment with genetic tests for targeted therapy, Mekong Capital said in a statement.
“When we started Gene Solutions in 2017, genetic testing was very expensive and inaccessible to most Vietnamese. Our mission is to make genetic testing more affordable, accessible, and medically helpful, as we believe everyone deserves better healthcare outcomes,” Gene Solutions Co-Founder and Chief Executive Officer Nguyen Hoai Nghia said.
Since its founding in 2017, Gene Solutions said it has managed to reduce the cost of genetic testing through running its laboratories in Ho Chi Minh City, together with the establishment of an in-house research and development team. This made it possible for them to offer tests at prices more accessible to the Vietnamese mass market and quickly achieved its market leader position, according to Mekong Capital.
To date, Gene Solutions has conducted over 250,000 genetic tests since its inception, covering every province in the country, with a national network of 2,000 hospitals and clinics, and over 2,500 registered doctors.
With a solid base in R&D and distribution channels, the investment of Mekong Enterprise Fund IV will accelerate the company’s growth with new technologies in gene testing segments and cement its position in the market to achieve its vision: make genetic testing affordable and accessible to millions of Vietnamese, thus transforming their health.
Gene Solutions is the sixth investee company announced by Mekong Enterprise Fund IV.
Established in 2001, Mekong Capital has the most extensive private equity track record in Vietnam. Their funds have completed 41 private equity investments, of which 27 have been fully exited. Mekong Capital has advised five funds, and two are currently active.
Mekong Capital’s investee companies include Mobile World, Phu Nhuan Jewelry (PNJ), ICP, Golden Gate, Vietnam Australia International School (VAS), Masan Consumer, Traphaco, Pharmacity, F88, YOLA, Pizza 4P’s, Vua Nem, ABA Cooltrans, and Nhat Tin Logistics.
Mekong Enterprise Fund IV is a private equity fund launched in January 2021 and currently has $246 million in committed capital. The fund will continue Mekong Capital’s strategy of investing in growth-equity investments in Vietnamese companies and exclusively in proven consumer-driven sectors that benefit from the growth in Vietnamese consumer demand and the adoption of modern business practices. The fund will focus on retail, education, restaurants, consumer services, FMCG, and healthcare.
Featured image credit: Mekong Capital