Vietnamese digital banking platform Timo has raised US$20 million in a new financing round led by global investment firm Square Peg.
Jungle Ventures, Granite Oak, and FinAccel, besides existing backers Phoenix Holdings and unnamed angels, also co-invested, the neobank said in a press note.
Timo expects to capitalise on Square Peg’s expertise in fintech to bolster its growth, aiming to “set the benchmark” for modern banking in the country.
Also read: How digital banking is driving financial inclusion in SEA
Founded in 2015, Timo is a 24×7 online bank aiming to bring greater financial inclusion and accessibility to the large majority of the unbanked Vietnamese population. In addition to helping customers save time during onboarding processes, it also provides access to other banking services through its online platform.
Timo has no physical bank branches; instead, it offers customers meeting spots with coffee and seating areas to make their deposits or manage their funds.
As per a statement, Timo is one of the few banks in Vietnam that provide eKYC services.
In 2019, Timo formed a strategic partnership with Viet Capital Bank to further ramp up operations.
Recently, the company has been moving forward with its social banking concept. Timo’s features, including TimoPay by Link and Smart History, allow receivers to reply to transactions in the same way they would on a social networking site while also integrating various financial requirements such as insurance and investing.
Timo claims it processed over two million transactions every month during 2021, resulting in a gross transaction value of US$2.5 billion.
According to McKinsey report, in comparison to APAC’s emerging nations and some APAC developed markets, Vietnam recorded an arguably higher increase in active digital bank users.
In addition, 88 per cent of APAC customers in developing nations use digital banks between 2017 and 2021, with Vietnamese users increasing by 41 per cent to 82 per cent in 2021 alone.
With over US$1 billion in assets under management, Square Peg has invested in various fintech firms, including Southeast Asian buy-now-pay-later firm Kredivo, robo-advisor startup StashAway, and Indonesia-based wealth tech firm Pluang.
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Image Credit: Timo
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