Hong Kong-based ewallet locks in $115m for Southeast Asia expansion

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Hong Kong-based TNG Wallet says it has locked in a “record-breaking” US$115 million series A investment to accelerate expansion across Southeast Asia and South Asia.

It also wants to use the cash to acquire other firms and invest in new technologies such as blockchain, artificial intelligence (AI), and a digital customer registration process.

It’s a massive round, even in Chinese terms. It makes the startup a half-unicorn: Post-money, the firm’s valuation sits at US$565 million, says TNG. The investment was led by Chinese private equity fund New Margin Capital.

TNG’s ewallet is one of several such services in Hong Kong. It lets users pay bills and shop at partner merchants. It also allows peer-to-peer transfers. To put credit into the wallet or withdraw cash from it, users can go to partner banks or any 7-11 store in Hong Kong.

TNG Wallet app has been downloaded over 600,000 times, with a monthly transaction volume exceeding US$80 million, a company spokesperson told Tech in Asia.

Global Remittances

TNG plans to build its strength in international money transfers. It’s formed what it calls the “Global E-Wallet Alliance,” covering Hong Kong and 12 countries, including China, the Philippines, Indonesia, Singapore, Malaysia, Thailand, Vietnam, India, Sri Lanka, Bangladesh, Nepal, and Pakistan.

This means it is working with localized partner apps in each country and allows transfers and withdrawals across this network.

In Indonesia, TNG’s partner app is called InDompet, in Singapore, it’s Xin Wallet, and so on.

Many of the markets TNG targets already have a multitude of local ewallets. There’s Tcash Wallet in Indonesia, initiated by a telco, and Dash in Singapore, to name a few. And there are wallets integrated into apps like ride-hailing firm Grab’s – it operates across Southeast Asia, which makes it a candidate for cross-border peer-to-peer transfers, though it doesn’t allow them yet.

International and domestic financial transactions are regulated. To speed up the process of getting the e-money licenses required to operate in some countries, TNG is about to close deals in Indonesia, Malaysia, Singapore, and the UK, CEO Alex Kong tells Tech in Asia.

One of the main sources of revenue for TNG are remittances – the money workers in places like Hong Kong send home to their families.

TNG owns 70 percent of the market share in remittance flows from Hong Kong to Indoensia and from Hong Kong to the Philippines, Kong says. Cash withdrawals are free, but TNG takes a transfer fee. However, that’s “15 percent lower than normal remittance fees”, according to Kong.

Kong founded TNG in 2013. The wallet launched in 2015 after a period of R&D. The Global Wallet Alliance was only formed last year. TNG employs around 300 people, says the firm’s spokesperson. Other strategic investors include Nogle Group from Taiwan, and Infinity-KBR Group.