Vietnam's consumer finance major F88 secures additional $30 mln from London-based fund

F88 Investment Joint Stock Company (F88), a leading consumer finance firm in Vietnam, has successfully raised an additional $30 million from Lendable, a London-based financial institution.

The three-year loan is the largest Lendable has ever provided to a financial services company in Vietnam. Including previous disbursements, Lendable’s total funding for F88 has reached nearly $70 million.

According to F88, the newly secured loan will be used to expand business operations, with a target of increasing both revenue and customer base by 30% within five years.

The company also expects such growth to strengthen its position ahead of its share registering on the Unlisted Public Companies Market (UPCoM). Earlier, on May 6, the State Securities Commission confirmed that F88 had met the conditions to become a public company.

In Q1 of this year, F88 reported revenue of VND820 billion ($31.57 million) and pre-tax profit of VND132 billion ($5.08 million), up 21.5% and over 200% year-on-year. Total disbursement hit VND3,284 billion ($126.44 million), a 25% increase from the same period last year.

The company forecast that in Q2, both outstanding loans and disbursements will rise more than five-fold year-on-year, while pre-tax profit is expected to increase by around 20% from Q1.

F88 currently operates 888 retail outlets and has partnered with Military Bank (MB) and a logistics firm with over 10,000 transaction points to expand its distribution network.

In early April, domestic credit ratings agency FiinRatings upgraded F88’s credit outlook from “Stable” to “Positive” thanks to its improved capital-raising ability and enhanced asset quality.

In addition to Lendable, F88 has secured financing from other international funds such as Lending Ark Asia Secured Private Debt Holdings Limited and GreenArc Capital, with a total credit limit exceeding over $170 million.

With 824 branches nationwide, F88 is Vietnam’s largest consumer finance network.