F88 nets $50 mln prior to IPO set for 2024, seeks more funding

By Thuy Nguyen
Thu, March 2, 2023 | 2:54 pm GMT+7

Vietnamese consumer finance firm F88 has 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 planned next year.

Vietnam-Oman Investment Fund, or VOI, Mekong Capital (parent company of Mekong Enterprise Fund IV) and F88 announced the total investment on Thursday in Ho Chi Minh City, where the first two are headquartered. They did not disclose every single investment and the names of the other investors.

(L-R) Vietnam-Oman Investment Fund investment director Nguyen Xuan Giao, F88 chairman Phung Anh Tuan, Mekong Capital founder and partner Chris Freund at their investment announcement ceremony in Ho Chi Minh City on March 2, 2023. Photo by The Investor/Tuong Nguyen.

(L-R) Vietnam-Oman Investment Fund investment director Nguyen Xuan Giao, F88 chairman Phung Anh Tuan, Mekong Capital founder and partner Chris Freund at their investment announcement ceremony in Ho Chi Minh City on March 2, 2023. Photo by The Investor/Tuong Nguyen.

“VOI, backed by the Oman Investment Authority, desires to expand its investment in microfinance in Vietnam to provide the underbanked and unbanked population with access to small loans,” F88 chairman and CEO Phung Anh Tuan explained the reason VOI started to invest in his firm.

“Mekong Enterprise Fund IV has the same interest to help improve the quality of financial services to retail consumers in Vietnam,” he added.

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.”

Vietnam-Oman Investment Fund investment director Nguyen Xuan Giao said, “This is our first investment in the Vietnamese financial service sector. This shows our confidence in the company’s business model, growth potential and the social benefits it can bring.”

The latest deal is Mekong Capital’s third investment in F88, following its two earlier investments announced in 2017 and 2020.

VOI was established in 2008 as a joint venture between the Oman Investment Authority and the State Capital Investment Corporation of Vietnam, or SCIC. Its investments focus on growth sectors like high-tech agriculture, infrastructure, water treatment plants, renewable energy, pharmaceuticals and healthcare, and education.

“We are among a few private companies in the small lending business that can satisfy strict investment criteria by VOI and Mekong Enterprise Fund IV in terms of social impacts,” F88 chairman Tuan said.

The Hanoi-based financial services firm is looking for alternative financing sources, including other international funds, to support its business expansion plans in the Vietnamese market, home to almost 100 million people, according to him. Issuing bonds is another channel for consideration.

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.

As a preparatory step, it will start trading its shares on Vietnam’s unlisted public company market (UPCom) this year, but the specific timing is still unknown.

In mid-February, the platform and the Ho Chi Minh City branch of Thailand’s Kasikornbank kicked off a strategic cooperation partnership, also to tap unbanked and underserved people in the Vietnamese market. Vietnam’s consumer finance market is still in its infancy but is expected to grow over the next few years, F88 chairman Tuan said at that time.

Thailand’s Kasikornbank opened the branch last August, saying it expected to have 1.2 million clients and disburse over $500 million in Vietnam.

In 2022, F88 received $70 million as international loans, with $60 million from Hong Kong-headquartered CLSA Capital Partners, and $10 million from London-based Lendable. The British startup provides capital to emerging and frontier market fintech companies.

In August 2021, Thai bank Ayudhya of Japan’s Mitsubishi UFJ Financial Group signed a deal with Vietnam’s Saigon-Hanoi Bank to totally take over SHB Finance for 5.1 billion baht ($156 million). To date, the acquisition process has not been completed.

In October of the same year, Japan’s Sumitomo Mitsui Banking Corp completed its 150 billion yen ($1.4 billion) purchase of a 49% stake in FE Credit, Vietnamese lender VPBank’s consumer finance firm. Therefore, this financial services firm was renamed VPBank SMBC Finance.

Comments (0)
  • Read More
2025 a turning point for Vietnam stock market: broker

2025 a turning point for Vietnam stock market: broker

Vietnam's stock market has struggled to capture the attention of both domestic and foreign investors in recent months, reflected by persistent foreign capital outflows and a steady decline in market liquidity, according to Chen Chia Ken, CEO of Phu Hung Securities JSC.

Finance - Wed, November 20, 2024 | 7:07 am GMT+7

Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Three construction majors in Vietnam are interested in building an expanded expressway connecting Ho Chi Minh City with the Mekong Delta provinces of Long An and Tien Giang for an estimated VND38.6 trillion ($1.52 billion).

Infrastructure - Tue, November 19, 2024 | 8:18 pm GMT+7

Singapore, Germany upgrade relations to strategic partnership

Singapore, Germany upgrade relations to strategic partnership

Singapore and Germany have decided to elevate their ties to a Strategic Partnership to promote closer cooperation in areas of mutual interest such as security, artificial intelligence (AI) and clean energy.

Southeast Asia - Tue, November 19, 2024 | 8:01 pm GMT+7

Thailand’s rice shipment up 20% in 10 months

Thailand’s rice shipment up 20% in 10 months

Thailand exported 8.37 million tons of rice in January-October, a year-on-year increase of 20%, according to the Ministry of Commerce.

Southeast Asia - Tue, November 19, 2024 | 8:00 pm GMT+7

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s legal framework lacks consistency and the foreign direct investment (FDI) sector will soon face challenges related to the Law on Environmental Protection, says Bruno Jaspaert, CEO of Deep C Industrial Zones.

Economy - Tue, November 19, 2024 | 6:30 pm GMT+7

Vietnam shares sink on extended foreign selloffs

Vietnam shares sink on extended foreign selloffs

Vietnamese equities fell for a fourth consecutive day on Tuesday as foreign traders extended their selling spree.

Finance - Tue, November 19, 2024 | 5:10 pm GMT+7

Germany’s household product firm QuickPack to invest $32 mln in Vietnam

Germany’s household product firm QuickPack to invest $32 mln in Vietnam

Germany’s QuickPack, a specialist for household goods and hygiene products, will invest €30 million ($31.8 million) in Vietnam’s Mekong Delta province of Long An.

Industries - Tue, November 19, 2024 | 4:24 pm GMT+7

Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers

Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers

Malaysian millionaire Vincent Tan has evinced investment interest in a residential project owned by convicted tycoon Truong My Lan, chairwoman of Van Thinh Phat Group, lawyers for the latter have disclosed.

Real Estate - Tue, November 19, 2024 | 4:17 pm GMT+7

‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects

‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects

Limited consultations between state agencies and the parliament’s primary focus on wording are issues with Vietnam’s legal framework adversely affecting property and infrastructure projects, say experts and corporate leaders.

Economy - Tue, November 19, 2024 | 3:40 pm GMT+7

President Xi Jinping hastens construction of 3 Vietnam-China rail routes

President Xi Jinping hastens construction of 3 Vietnam-China rail routes

Chinese President Xi Jinping has called for more substantial cooperation between China and Vietnam, including the pacier implementation of three railway routes linking the two nations.

Infrastructure - Tue, November 19, 2024 | 3:08 pm GMT+7

Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnamese housing developers are offering several incentives including deferred principal payments and interest support to stimulate demand and boost liquidity as the year nears its end.

Real Estate - Tue, November 19, 2024 | 2:29 pm GMT+7

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia-based EQ Resources Limited has acquired its fellow firm Tungsten Metals Group (TMG), which owns and operates the largest ferrotungsten (FeW) factory outside China.

Companies - Tue, November 19, 2024 | 11:00 am GMT+7

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities JSC (TCBS) has become the largest securities company in Vietnam by charter capital after finishing a rights offering last week.

Finance - Tue, November 19, 2024 | 9:11 am GMT+7

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam's airports operator ACV expects to earn $145 million from non-aviation services this year, accounting for around 18.83% of its total revenue, which is modest compared to other countries, said deputy general director Nguyen Duc Hung.

Companies - Tue, November 19, 2024 | 7:45 am GMT+7

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.

Companies - Tue, November 19, 2024 | 7:00 am GMT+7

Indonesia promises Asia-Pacific investors more incentives

Indonesia promises Asia-Pacific investors more incentives

Indonesian President Prabowo Subianto recently told the press that he will create more incentives and expand special economic zones (SEZs) so as to lure investors from Asia-Pacific.

Southeast Asia - Mon, November 18, 2024 | 11:01 pm GMT+7