Vietnam’s F88 secures $60m loan, eyes IPO by 2024

F88, a Vietnam-based financial services startup, said it has secured a loan of US$50 million from Lending Ark, plus an additional US$10 million loan from Lendable.

Photo credit: F88

In a statement, F88 noted that the company has to diversify its sources of financing amid a slowdown in corporate bond issuances in Vietnam. It added that the new funds will be used to grow its loan book and develop its distribution network.

Since its establishment in 2013, originally following the pawnshop business model, F88 has been diversifying its financial services. It currently offers vehicle title loans, distribution of life and non-life insurance, bills payment, mobile money, and e-wallet top-ups.

The company targets those who have no or limited access to banking services in Vietnam, which accounts for about 60% to 70% of the country’s population.

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F88’s branches serve as financial convenience hubs for its customers. The startup currently has 800 locations across the country and plans to reach 1,400 locations by 2024 when it could go for an IPO.

In 2021, it established a partnership with Mobile World, Vietnam’s largest electronics retailer, to allow customers to acquire quick loans to finance their electronics purchases.

In the first nine months of this year, F88 says its loan book has grown 246.4% compared to the same period in 2021.

Earlier this year, the fintech firm secured a US$10 million loan facility from Lendable, which marked the debt finance provider’s first deal in Vietnam.