MoMo Executive Vice Chairman and Co-CEO Tuong Nguyen
M_Service JSC, the owner of the Vietnamese payment app MoMo, has scored US$200 million Series E funding led by Mizuho, a global bank based in Japan.
Mizuho invested US$170 million in return for a 7.5 per cent stake, according to a Nikkei Asia report. APAC-focused Ward Ferry Management and existing investors Goodwater Capital (a consumer tech-focused venture capital firm) and Kora Management (a global investment firm targeting emerging markets) also contributed.
As per a Bloomberg report, this round brings the fintech firm’s valuation to over US$2 billion, joining the likes of local tech firms VNPay, VNG, and Sky Mavis (the owner of Axie Infinity) in the coveted unicorn club.
In January, MoMo announced the close of an undisclosed Series D round (Bloomberg revealed that it was more than US$100 million), co-led by Warburg Princus, which had led MoMo’s Series C round in 2019, and Goodwater Capital.
MoMo will channel the fresh funds to increase the reach of its offerings to 31 million customers, starting with a bill payment service. It also intends to expand in rural areas in Vietnam and support digital transformations in local MSME merchants.
A portion of the capital will be used to bolster MoMo’s tech investments as well as mergers and acquisitions in future.
In June, MoMo acquired local startup Pique, which uses AI to turn visitors into customers. It plans to capitalise on Pique’s 25 million user database to improve its product offerings further.
Also read: The 27 Vietnam startups that have grabbed our attention this year
Founded in 2007, Momo offers mobile payments and e-wallet services for iOS and Android devices. Its range of products include cash transfers, mobile phone recharges, personal loans and services, such as software license and online game cards.
The e-wallet has been evolving into a super-app marketplace that includes insurance, credit products, and digital vouchers, among other things. It also plans to launch investment products next year.
MoMo claims to have a partnership with over 50 banks and financial institutions. It has also partnered with 50,000 corporate brands across consumer finance, insurance, money transfers, utility payments, entertainment, e-commerce, shopping, transportation, and F&B.
The firm claims the wallet has over 140,000 payment acceptance locations across all industry sectors.
Vietnam’s digital payments vertical, especially contactless payments, has witnessed spectacular growth following the onslaught of COVID-19. According to a report by Statista, in 2020, Vietnam has one of the highest rates of cashless payment acceptance in Southeast Asia.
Although cash-on-delivery has been the most popular mode of purchase in Vietnam, the trend is seeing a significant shift thanks to the pandemic-induced behavioural change. The growing e-wallet category has played a crucial role in the expansion of Vietnamese digital payments, accounting for an increasing transaction value that is expected to reach over US$48 billion by 2025.
Other major apps operating in the contactless payments space in Vietnam are VNG’s Zalo, Gojek, Payoo, Moca, and SenPay.
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Image credit: MoMo
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