Police inspect scandal-hit F88 transaction points in Danang

Danang police on Friday inspected observance of the law in mortgaging and lending at 14 transaction points of Vietnamese financial services firm F88 in the central city.

At the transaction points at 468 Le Duan, 56 Nguyen Phan Vinh and 443 Ngo Quyen streets, police seized hundreds of loan documents.

Previously, police on Thursday inspected two F88 points at 3 Hoang Van Thai and Nguyen Luong Bang streets, collecting 638 dossiers and many billions of Vietnamese dong (VND1 billion = $42,500).

Danang is the fifth locality after Ho Chi Minh City, Soc Trang, Can Tho and An Giang province where F88 has been subject to inspections. An Giang, Can Tho and Soc Trang are Mekong Delta provinces in southern Vietnam.

HCMC police searched the headquarters of F88 in HCMC's Go Vap district on March 6 on suspicion of property appropriation. According to a HCMC police source, F88, which operates a large-scale lending system, has been accused of threatening borrowers and property appropriation.

In response to the charges, an F88 representative issued a statement saying that authorities were looking into the actions of a single employee.

F88 currently has 800 transaction points, 2,000 employees and is aiming to expand to 1,000 transaction points in all 63 provinces and cities across Vietnam, according to information posted on its website.

On March 2, the company announced 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 its digital business ahead of an initial public offering planned for next year.

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

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

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 reaches $1 billion.