Vietnam fintech startup raises $1 million from foreign venture capitalists
In this article (5)
Vietnamese fintech firm Finhay has raised $1 million in seed funding from Singapore’s Insignia Ventures Partners and other foreign investors. “Finhay will use the $1 million investment to expand its user base 10-fold to 100,000,” said founder and director of Finhay Nghiem Xuan Huy. Finhay was established in 2017 with capital of $100,000 as a micro-investment platform targeted at millennials. It allows customers to invest as little as VND50,000 ($2.17) in mutual funds from Finhay’s investment portfolio.
Huy said the business model is very popular abroad, citing examples such as U.S. micro-investing apps Acorns and Stash.
The application automatically analyzes the user’s risk appetite and suggests appropriate investment options and provides information to help improve users’ personal financial management.
It has over 13,000 users and over VND7 billion ($303,590) worth of pooled capital.
Insignia Ventures Partners, a venture fund which has already invested in popular transport apps Go-Jek and Traveloka of Indonesia, hopes “…[Finhay] will gradually layer on more products and services to become the Amazon of financial services in Vietnam.”
Finhay also received seed capital from funds in Hong Kong and the U.S.
Questions & Answers
Q.What is Finhay's primary business model?
What is Finhay's primary business model?
Finhay operates as a micro-investment platform, allowing customers to invest small amounts, such as VND50,000, into mutual funds. The application assesses a user's risk and suggests suitable investment options.
Q.How will Finhay use the $1 million investment it received?
How will Finhay use the $1 million investment it received?
Finhay plans to use the $1 million investment to significantly expand its user base. The company aims to increase its current 13,000 users tenfold to reach 100,000 users.
Q.Which other companies has Insignia Ventures Partners invested in?
Which other companies has Insignia Ventures Partners invested in?
Insignia Ventures Partners, a key investor in Finhay, has previously invested in well-known transport applications. These include Go-Jek and Traveloka, both popular apps originating from Indonesia.
Q.From where did Finhay receive its initial seed capital?
From where did Finhay receive its initial seed capital?
Finhay received its initial seed capital from various foreign investors. Funds from Hong Kong and the U.S. Also contributed to its early funding, alongside Insignia Ventures Partners.
Reader pulse
Will Finhay become Vietnam’s Amazon of finance?
17,769 votes so far