Analyzing MoMo’s super-app ambitions

At MoMo’s headquarters in Ho Chi Minh City, there’s a stylish joint called Ironman Bar, where staff can chill, play pingpong, or enjoy the city view.

In January, the fintech firm’s 7,000-square-meter office officially opened in the upscale District 7. The new location signifies its status as Vietnam’s latest tech unicorn after a recent US$200 million series E round led by Japan’s Mizuho Bank.

Now valued at US$2.2 billion, MoMo – which is short for “mobile money” – was founded in 2010 by a group of Vietnamese entrepreneurs harboring a “cashless vision” for Vietnam where everyone can pay using their mobile phones.

Originally, it was conceived as a SIM-based mobile wallet for telecom operator Vinaphone, allowing users to transfer money or top-up their mobile credit. The company later released app versions for Android and iOS in 2014.

MoMo’s mobile-only approach has been key to its early success, having reportedly cornered more than half of the market share in Vietnam’s digital wallet space.

With a user base of 31 million, MoMo now aspires to build a full-fledged financial ecosystem that enables users, small businesses, and financial services providers to tap onto the platform.

The question is: Can its super-app ambition survive intense competition and a landscape where traditional banks still dominate?

Leading a crowded space

Alongside its new headquarters, MoMo also introduced a star-studded AI Committee to implement what it calls an AI-first strategy. The team includes veteran engineers who previously worked at Facebook, LinkedIn, Twitter, VNG, and FPT Group.

The move follows MoMo’s acquihire of local AI startup Pique in June 2021. Pique creates AI-enabled recommendations for businesses to get customers engaged and buy more.

The deal is expected to help MoMo better use and monetize its trove of data. The company says it allocates 20% to 25% of its technology budget for AI and wants to up its total number of engineers to 1,000 within this year.

The fintech unicorn certainly has the resources to attract talent now. According to Tech in Asia data, MoMo has raised about US$433 million in disclosed funding, pulling far ahead of most domestic competitors.

Can’t live by wallets alone

Immense challenges

Future prospects