Vietnam startup gets funding from StanChart, Goldman Sachs
MoMo, Vietnam’s first and only mobile wallet service, raised $25 million from Standard Chartered Private Equity and $3 million from Goldman Sachs, VnExpress reported. It is the first investment by Standard Chartered into MoMo, while Goldman Sachs already provided $5.75 million in a first funding round in 2013.
MoMo offers two services in Vietnam: a mobile wallet and payment app, launched in tandem with Standard Chartered’s local branch last year, and a “branch-less” banking service for those without a traditional bank account. The company claims to have 2.5 million customers, 1.5 million of whom use the e-wallet.
In Vietnam, where credit card adoption is low and banking services don’t often cover remote areas, mobile wallet have proven a popular alternative. MoMo drew inspiration from payment services like Alipay in China, which counts 500 million registered users, and mobile banking platforms like MPesa in Africa.
MoMo allows users to cash out their electronic credits at agents. They also can transfer and receive funds and pay for more than 100 services through the mobile app, available on both Apple Store and Google Play. MoMo partners with 24 banks in Vietnam, including Vietcombank and Standard Chartered.
The company’s CEO Pham Thanh Duc said that the new funding would help MoMo expand its services and network of agents around the country to 11,000 from 4,000 at the moment. At a later point of time, they might expand within Southeast Asia.
The funding comes just shortly after US-based venture capital firm 500 Startups announced a $10-million fund for the country to tap on Asia’s fast-growing startup scene. The country has a 90 million population, over half of whom are aged below 30, and is a mobile-first market with huge potential for technology and internet businesses. What also helped was Vietnam’s accession to the Trans-Pacific Partnership, which not just reduced trade barriers with the US, but also built up trust for US investors seeking opportunities in Vietnam.
MoMo, Vietnam's first and only mobile wallet service, raised $25 million from Standard Chartered Private Equity and $3 million from Goldman Sachs, VnExpress reported. It is the first investment by Standard Chartered into MoMo, while Goldman Sachs already provided $5.75 million in a first funding round in 2013. MoMo offers two services in Vietnam: a mobile wallet and payment app, launched in tandem with Standard Chartered’s local branch last year, and a “branch-less” banking service for those without a traditional bank account. The company claims to have 2.5 million customers, 1.5 million of whom use the e-wallet. In Vietnam, where credit card adoption is...
MoMo, Vietnam’s first and only mobile wallet service, raised $25 million from Standard Chartered Private Equity and $3 million from Goldman Sachs, VnExpress reported. It is the first investment by Standard Chartered into MoMo, while Goldman Sachs already provided $5.75 million in a first funding round in 2013.
MoMo offers two services in Vietnam: a mobile wallet and payment app, launched in tandem with Standard Chartered’s local branch last year, and a “branch-less” banking service for those without a traditional bank account. The company claims to have 2.5 million customers, 1.5 million of whom use the e-wallet.
In Vietnam, where credit card adoption is low and banking services don’t often cover remote areas, mobile wallet have proven a popular alternative. MoMo drew inspiration from payment services like Alipay in China, which counts 500 million registered users, and mobile banking platforms like MPesa in Africa.
MoMo allows users to cash out their electronic credits at agents. They also can transfer and receive funds and pay for more than 100 services through the mobile app, available on both Apple Store and Google Play. MoMo partners with 24 banks in Vietnam, including Vietcombank and Standard Chartered.
The company’s CEO Pham Thanh Duc said that the new funding would help MoMo expand its services and network of agents around the country to 11,000 from 4,000 at the moment. At a later point of time, they might expand within Southeast Asia.
The funding comes just shortly after US-based venture capital firm 500 Startups announced a $10-million fund for the country to tap on Asia’s fast-growing startup scene. The country has a 90 million population, over half of whom are aged below 30, and is a mobile-first market with huge potential for technology and internet businesses. What also helped was Vietnam’s accession to the Trans-Pacific Partnership, which not just reduced trade barriers with the US, but also built up trust for US investors seeking opportunities in Vietnam.
