Xanh SM triples capital hikes in two months, targets $20b valuation

Xanh SM triples capital hikes in two months, targets $20b valuation

The electric taxi operator lifted capital to US$1.6 billion ahead of a potential $20 billion IPO in Hong Kong (China).

Xanh SM taxis in Laos. Xanh SM operates in Laos, Indonesia and the Philippines, with plans to expand into India this year. — VNA/VNS Photo Phạm Kiên

Green and Smart Mobility Joint Stock Company (Xanh SM) has completed its third charter capital increase in less than two months, lifting its registered capital to VNĐ43.4 trillion (US$1.6 billion), according to the latest enterprise registration update dated February 24.

The company added VNĐ3.9 trillion ($150 million), a 10 per cent rise from VNĐ39.5 trillion. All funds were recorded as private capital.

The move follows a rapid series of capital hikes. Founded in March 2023 with VNĐ3 trillion, Xanh SM raised capital to VNĐ25 trillion ($962 million) in November 2025, VNĐ35.5 trillion ($1.37 billion) in early January 2026 and VNĐ39.5 trillion on January 29.

The VNĐ35.5 trillion milestone previously pushed the company above the $1 billion “unicorn” threshold.

The taxi operator of billionaire Phạm Nhật Vượng is expanding amid major shifts in Việt Nam’s ride-hailing market.

A Q4 2025 report by Mordor Intelligence showed the four-wheel ride-hailing market generated nearly $491 million in gross merchandise value across more than 133 million trips. Xanh SM accounted for over 50 per cent of the market, ahead of Grab and Be Group, with expansion backed by Vingroup ecosystem.

Electric and hybrid vehicles also overtook internal combustion cars for the first time, accounting for 52.15 per cent of trips.

IPO ambition and valuation

The capital expansion supports a planned international listing. According to Reuters, the company is preparing an IPO in Hong Kong (China) around 2027, with advisers proposing a valuation of about $20 billion.

That would put the firm close to Grab, currently valued near $21 billion on Nasdaq. Analysts note the difference in business models – Grab operates a regional super-app ecosystem, while Xanh SM focuses on a fully electric taxi fleet aligned with ESG standards.

The company said it reached one million daily rides by August 2025 across 56 provinces with nearly 100,000 vehicles. CEO Nguyễn Văn Thanh targets 100 million monthly transactions.

Xanh SM operates in Laos, Indonesia and the Philippines, with plans to expand into India this year. 

Bizhub