VN payment app MoMo turns 🦄 with $200m series E fundraise (Updated)

Update (Dec. 21, 11:10 a.m.): This article was updated after MoMo confirmed the participation of Mizuho Bank and other investors in the fundraise.

Vietnam-based payment app MoMo has raised US$200 million in a series E round led by Mizuho Bank. Ward Ferry, Goodwater Capital, and Kora Management participated in the fundraise, which reportedly puts the startup’s valuation above US$2 billion.

Photo credit: MoMo

MoMo has more than half of the market share in Vietnam’s payments space, and it is primed to become a super app on the back of its 31 million users. Tech in Asia data shows that prior to this round, MoMo had raised about US$232.7 million. 

See also: The key players in Vietnam’s fintech battleground 

Its latest raise will be used to boost the penetration of its financial products and bankroll its investments in Vietnamese companies, like its acquisition of local AI startup Pique in June. MoMo also plans to expand into Vietnam’s Tier 2 and 3 cities.

“The investment shows their confidence and belief in our mission – to improve the life of the Vietnamese people and merchants through technology, by giving them access to superior, simpler, and affordable financial solutions and daily services,” said Nguyen Manh Tuong, executive vice chairman and co-CEO of MoMo.

Last week, Nikkei Asia reported that Mizuho Bank acquired 7.5% of Vietnamese firm M-Service – the operator of MoMo – for US$170 million. The transaction is part of the series E round that was disclosed by MoMo today.

This development comes weeks after Mizuho Bank was hit with regulatory warnings due to a spate of service glitches, leading to the resignation of its CEO.

The Mizuho investment is expected to create collaborations between MoMo and Vietcombank, a Vietnam-based bank that the Japanese firm previously invested in.