Consumer finance firm F88 headquarters searched after property appropriation claim

Ho Chi Minh City police searched the headquarters of Vietnamese financial services company F88 in Go Vap district on March 6 morning on suspicion of property appropriation.

The F88 headquarters is located on the seventh and eighth floors of an office building at No. 238-240-242 Nguyen Oanh street.

According to a source from the municipal police, F88, which operates a large-scale lending financial application, has been accused of threatening borrowers and showing signs of property appropriation over the past time.

Earlier on March 2, F88 announced that it had raised a series C investment of $50 million led by Vietnam-Oman Investment Fund and Mekong Enterprise Fund IV to further expand its distribution network nationwide and digital business ahead of an initial public offering (IPO) planned next year.

“The capital increase serves to complete three projects: upgrading the information technology system, expanding points of sale, and improving the quality of human resources,” said F88 chairman and CEO Phung Anh Tuan.

Mekong Capital’s founder and partner Chris Freund said: “We’re now investing in one the largest companies in Vietnam… I can rely on F88 and its team to be a model of what works best to reliably grow a business and achieve its vision.”

In 2022, F88 received $70 million in international loans, with $60 million from Hong Kong-headquartered CLSA Capital Partners and $10 million from London-based Lendable.

It also partnered with some international banks like CIMB Vietnam and Kasikornbank, one of the three largest banks in Thailand, to distribute comprehensive financial products in Vietnam, including mortgages.

Established in 2013, the consumer finance firm currently operates some 830 service points and offices across Vietnam and expects to expand to at least 1,000 this year.

F88 has achieved an average annual growth rate in loan balance and total revenue of more than 200%, the firm said, adding it is eyeing an IPO next year if its market capitalization can reach $1 billion.