Momo, Vietnam’s top payment app, lands big Series C investment led by Warburg Pincus

TechCrunch | 1/18/2019 | Staff
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Fintech in Southeast Asia continues to pique the attention of global investors. Alibaba, Tencent and others have jumped into the region and deployed hundreds of millions of dollars, and now Warburg Pincus is joining them. The U.S-headquartered PE firm has led a Series C investment in Vietnam’s Momo, which claims to be the country’s largest mobile wallet company with 10 million downloads.

Momo already has some big-name investors; Standard Chartered led a $28 million round in 2016 while Goldman Sachs invested $5.7 million back in 2013.

Size - Round - Pham - Thanh - Duc

The size of this new round isn’t being disclosed, but Pham Thanh Duc, CEO of M-Service — the parent company of Momo — said it is a record deal for an e-commerce or fintech startup in Vietnam. A lot of the biggest deals in Vietnam have been undisclosed, but one of the largest from last year was a $50 million-odd investment in e-commerce company Tiki from China’s JD.com which gives an indication of the size. The deal might even be as high as $100 million, that’s according to a Deal Street Asia report, although Pham declined to comment on the figure.

M-Service was founded over a decade ago, Momo is its take on digital payments in Vietnam, a market of nearly 100 million people, one-quarter of whom are aged under 25.

Momo - Payment - App - Utility - Bill

Momo started out offering digital payment via an e-wallet app. It has since expanded into utility bill payments and mobile top-up, as well as areas like movie tickets, airline flights and payment for goods and services at 100,000 payment points nationwide, including popular chains. The service recently began offering bill payment for loans, and Pham said it is developing a credit scoring system that will allow it to introduce financial services to users in partnership with financial institutions.

The playbook, he said, is very much based upon the...
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