Vietnamese lending platform F88 secures $6m in new funding

Vietnamese financial services startup F88 said it has closed its third growth investment round, raising roughly 140 billion dong (US$6 million) from Mekong Enterprise Fund III and Granite Oak.

The company secured the new funds at a valuation of 2.1 trillion dong (US$90.7 million) as of late 2019, according to a statement.

Photo credit: Jerick Parrone

Since its establishment in 2013, F88 has been focused on providing its customers with fast and easy vehicle title loans. The startup also provides other financial services, such as distributing life and non-life insurance, bills payment, mobile money, and e-wallet top-ups.

The new investment will allow F88 to continue expanding its network of branches as well as accelerate the growth of its existing locations, said its chairman and CEO Phung Anh Tuan.

F88’s branches serve as financial convenience hubs for its customers, providing easier access to its suite of financial services. The startup currently has 180 locations across 25 cities and provinces in Vietnam, growing from just 11 back in December 2016, according to Mekong Capital partner Chris Freund.

“Since our initial investment in 2018, F88’s performance has consistently surpassed our expectations with respect to growth, loan portfolio quality, and profitability,” said Simon Wagner, managing partner at Granite Oak.

As of last year, F88 claims to have successfully issued over 200 billion dong (over US$8.5 million) of corporate bonds, working with local investment banks and financial institutions.

The company was also granted the Client Protection Certificate by SmartCampaign, an international initiative that looks to ensure fair customer treatment in financial services, in September 2019.

Currency converted from dong to US dollar: US$1 = 23,145.58 dong.