Vietnam fintech startup Finhay raises funding from Acorns co-founder, others

Vietnamese fintech startup Finhay has raised a seven-digit investment from Jeffrey Cruttenden, co-founder of the popular US savings app Acorns, local company Thien Viet Securities, and other investors. Further details were not disclosed.

Photo credit: Jerick Parrone

Founded in 2017, Finhay is a wealth management platform that helps users perform micro investments in mutual funds in Vietnam starting from just 50,000 dong (US$2.11). The firm previously raised a total of US$1.1 million, primarily from Australia’s H2 Ventures and Singapore’s Insignia Ventures Partners, placing it among the most well-funded fintech startups in Vietnam.

“In the wealth management sector in Vietnam, we are just tapping the surface of its potential,” said Finhay’s founder and CEO Nghiem Xuan Huy. “With the financial support, experience, and expertise of our new investors, we can capture this potential and accelerate our growth.”

Finhay said it will use the new funding to expand its market reach, optimize IT infrastructure, and recruit more staff to grow the platform.

Vietnam’s emerging fintech sector

“Finhay’s modern, tech-enabled solution is revolutionizing access to wealth management resources for millennials,” said Cruttenden, whose company last year raised US$105 million in series E funding. “With a growing need for fintech in Vietnam, Finhay’s competitive advantage is its commitment to financial literacy and emphasis on education for younger generations.”

As most Vietnamese focus on traditional investments such as stocks and real estate to build wealth,there is a significant demand in the country for more innovative financial services for the younger generations, offering a broader diversification of assets.

Similar platforms in the region include StashAway, which last year raised US$12 million in series B funding. However, Smartly, which was acquired by Vietnam’s VinaCapital Ventures in July 2019, closed last month, citing intense competition in the digital advisory space.

This report was first published on KrAsia.

Currency converted from Vietnamese dong to US dollar: US$1 = 23,632.50 dong.