E-payment startup Gpay bags funding from South Korean investor
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Vietnamese e-wallet provider Gpay has received an undisclosed amount in Series A funding from South Korean listed bank KB Financial Group.
The Series A round values the digital payment business at VND425 billion ($18.46 million), and the fresh funds will be used to expand its team and user base, as also upgrade its technology, Gpay said in a statement.
G-Group Technology Corporation, Gpay’s parent, has also joined hands with KB Financial to launch a VND300 billion fintech joint venture, called KB Fina, which will provide financial services to unbanked or underbanked consumers, Gpay said.
G-Group general director Phung Anh Tu said they expect the fintech platform, which incorporates financial and investment advisory products already provided by KB Financial Group in its home country, to come online in the second quarter this year.
Established in 2018, Gpay obtained its e-payment license in April 2020. However, it faces fierce competition in the Vietnamese digital payment market, where there are currently 39 other licensed e-wallet service providers.
Gpay said it will not be “burning cash” to fight for a higher market share, but will serve G-Group’s 30 million users currently using various services on its digital ecosystem, which includes peer-to-peer lending firm Tima, digital media firm Beat.vn, and social networking app Gapo.
Last week, Momo, another payments app in Vietnam, raised an undisclosed amount in Series D financing from U.S.-based investment funds Warburg Princus and Goodwater Capital.
Questions & Answers
Q.What is the valuation of Gpay after receiving this Series A funding?
What is the valuation of Gpay after receiving this Series A funding?
The digital payment business is valued at VND425 billion, which is equivalent to $18.46 million. This valuation was established as part of the Series A funding round secured from KB Financial Group.
Q.How will Gpay utilise the newly acquired funds from the Series A investment?
How will Gpay utilise the newly acquired funds from the Series A investment?
Gpay plans to use the fresh capital to expand its team and grow its user base. Also, the company intends to upgrade its technology, as stated in their official announcement regarding the funding.
Q.How does Gpay plan to compete in the crowded Vietnamese digital payment market?
How does Gpay plan to compete in the crowded Vietnamese digital payment market?
Gpay will not rely on 'burning cash' for market share. Instead, it aims to serve the 30 million users already within its parent company G-Group's digital ecosystem, encompassing various existing services.
Q.What is the purpose of the KB Fina joint venture formed between G-Group and KB Financial?
What is the purpose of the KB Fina joint venture formed between G-Group and KB Financial?
KB Fina is a VND300 billion fintech joint venture created to provide financial services. Its primary target demographic is unbanked or underbanked consumers in Vietnam, addressing a specific market need.