Foreign investors have poured funds into a number of Vietnamese financial technology (fintech
) companies, aiming to capitalize on the country’s fast growing tech savvy consumers.
South Korea’s UTC Investment Co., wholly owned by Daesang Group Chairman Lim Chang-wook, acquired a 62.5% stake in VNPT Electronic Payment JSC (VNPT Epay) from VMG Media Group for around $33.8 million.
Vietnam Posts and Telecommunications Group (VNPT) will continue to hold the remaining stake in the firm.
Vietnamese mobile wallet and phone top-up startup
OnOnPay has secured a pre-series A funding round of $800,000, led by Asian venture capital Gobi Partners. Existing investor Captii Ventures participated.
OnOnPay will use the funding to grow its user base and keep developing its tech, according to Tech in Asia.
Founded in early 2015, OnOnPay addresses the needs of unbanked people in a market where credit cards are not widely used. The startup offers both a web-based platform and a mobile app that allows users to top up their prepaid phones and win rewards like extra credit and coupons.
“A very big part of the population [in Vietnam] doesn’t have bank accounts and, consequently, cannot pay conveniently,” Sy Phong Bui, founder and CEO of OnOnPay, told Tech in Asia. “We’re tapping into a market of 90 million inhabitants [of whom] only 30 percent are banked.”
In March this year, Standard Chartered Private Equity and Goldman Sachs invested a combined $28 million in mobile wallet MoMo
Most recently, loan comparison site Bank Go has also secured venture capital funding.
According to Topica Founder Institute, investment in fintech startups in Vietnam came third after that in e-commerce and communication.
Vietnam’s fintech ecosystem is comprised of around 30 companies which provide a wide range of services.
While Ngan Luong focuses on e-commerce payment, Payoo helps users pay daily bills, VTPay helps pay taxes. In addition, Cash2vn allows remittance transfers to Vietnam and Money Lovers helps users manage expenditures.