Vietnam second among ASEAN members in attracting fintech funding
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Vietnam’s fintech firms secured $410 million, or 36 percent of the global capital pouring into Southeast Asia between January and September, behind Singapore.
The country’s share of regional venture capital funding devoted to fintech soared from just 0.4 percent in 2018, according to a report prepared by the United Overseas Bank (UOB), PwC and the Singapore Fintech Association (SFA).
Singapore remained the top destination for regional fintech investment, with 51 percent, down from 53 percent in 2018, with Indonesia in third place with 12 percent, down from 37 percent last year.
By the end of the third quarter this year, ASEAN had received $1.14 billion in funding for fintech firms, up sharply from $35 million in 2014, the report said.
The surge in investments in Vietnam this year is attributable to two large deals, both in digital payments. In July, digital payment firm VNpay received $300 million in investment from Japanese multinational conglomerate SoftBank and Singaporean sovereign wealth fund GIC.
And in January, e-payment app MOMO Pay landed $100 million from investors led by American private equity firm Warburg Pincus in its Series C funding round. The two deals accounted for 98 percent of Vietnam’s total fintech funding in the first nine months.
In terms of the number of funding deals in 2019, Vietnam came third in ASEAN at 8 percent of total deals, up from 2 percent in 2018, behind Singapore and Indonesia with 51 percent and 28 percent respectively.
Questions & Answers
Q.Which country received the most fintech funding in Southeast Asia during the first nine months of this year?
Which country received the most fintech funding in Southeast Asia during the first nine months of this year?
Singapore remained the top destination for regional fintech investment, securing 51 percent of the total funding. This figure, however, was a slight decrease from its 53 percent share in 2018.
Q.What contributed significantly to Vietnam's increased fintech investment this year?
What contributed significantly to Vietnam's increased fintech investment this year?
The surge in investments in Vietnam is largely due to two major deals, both within the digital payments sector. These two transactions accounted for 98 percent of Vietnam’s total fintech funding in the first nine months.
Q.Which companies were involved in the two large deals that boosted Vietnam's fintech funding?
Which companies were involved in the two large deals that boosted Vietnam's fintech funding?
In July, digital payment firm VNpay received $300 million from SoftBank and GIC. Earlier, in January, e-payment app MOMO Pay secured $100 million in its Series C funding round, led by American private equity firm Warburg Pincus.
Q.How much total fintech funding did ASEAN receive by the end of the third quarter this year?
How much total fintech funding did ASEAN receive by the end of the third quarter this year?
By the end of the third quarter this year, ASEAN had collectively received $1.14 billion in funding for fintech firms. This represents a significant increase from the $35 million recorded in 2014, as highlighted in the report.
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