29.09.2020, 06:34

Vietnam’s fintech startup bags series A money from East Ventures, others

Vietnam-based fintech company
Kim An Group
announced that it will receive an undisclosed amount of series A funding from Patamar Capital, Viet Capital Ventures, and East Ventures.


Vietnam’s fintech startup bags series A money from East Ventures, others

Photo credit: Kim An Group



The company plans to use the new funds to further develop its core technology system to process data, optimize its credit-scoring platform, and better connect customers to financial institutions in the country, according to a statement.


It will also sign partnership agreements with credit institutions to develop consumer loans for individual customers, household businesses, and micro-enterprises, including Nam A Commercial Joint Stock Bank, Ho Chi Minh City Development Joint Stock Commercial Bank, and FE Credit, a financial company under Vietnam Prosperity Joint Stock Commercial Bank.


What problem is it solving? In Vietnam, 5.6 million micro, small, and medium enterprises (MSMEs) are currently underserved by financial institutions. Yet these financial institutions find this segment difficult to serve profitably because of its low ticket size, high-cost structure, and perceived high risk, Kim An Group CEO
Thao Tracy Phan
told
Tech in Asia .


The company aims to bridge this gap by providing a platform that enables financial institutions to run automated credit processes and provide products tailored to the needs of MSMEs, she said.


Similar players in the country include Vertex Ventures Southeast Asia and the India-backed Validus, which has just raised over
US$14 million
in its ongoing series B+ funding round.


What are its challenges? “Working with financial institutions to create seamless integrations to provide the best customer experience is one of the main challenges we have to overcome,” the CEO said, adding that the company will invest in building its team and culture to better serve its customers.


What’s the opportunity? According to the company’s website,
MSMEs account for 98% of Vietnam’s total number of enterprises and 40% of its gross domestic product, as well as employ 50% of its labor force.



Phan estimates that MSMEs’ credit market is worth about US$3.5 billion in Vietnam and grows at a 2-digit annual rate. 


How much traction has it gotten? Kim An Group said it has processed more than 25000 loans in two years. It currently has more than 5000 customers, and its portfolio is growing by double digits month on month.


Who are the team members? Founded in 2013 by
Phan, the company’s
management team collectively has more than 15 years of banking and finance experience in Southeast Asia.


Prior to establishing the company, Phan had worked as a consultant at the management consulting firm McKinsey & Company for two years.