Vietnamese e-wallet MoMo raises over $100m in Series D round led by Goodwater Capital, Warburg

M-Service, the company behind Vietnam’s largest e-wallet by users MoMo, has raised over $100 million in a Series D fundraising round, DealStreetAsia has learnt.

The company did not disclose the financial terms of the fundraising.

The Series D round was co-led by Silicon Valley investor Goodwater Capital and existing backer Warburg Pincus, the company said in its announcement on Wednesday. New investors Kora Management and Macquarie Capital, as well as existing investors Affirma Capital and Tybourne Capital Management, joined the round.

The latest fundraising comes two years after its undisclosed Series C round led by Warburg Pincus. At that time, DealStreetAsia learnt from sources that the deal was valued at around $100 million.

Commenting on the Series D round, MoMo co-founder Nguyen Ba Diep told DealStreetAsia that the Series D funding was larger than its previous round, and will be used to drive the company’s super app ambition as well as launch Innovation Ventures, its own investment arm to back local startups that can be integrated into MoMo’s ecosystem.

Warburg Pincus remains the largest shareholder in MoMo, the US PE giant’s head of Southeast Asia Jeffrey Perlman said in a statement. Eight foreign shareholders, including one individual, hold 66.4% of the company, as per a corporate filing.

The latest funding would be fuel for MoMo’s ambitions to become more than a digital wallet and could be used for expanding MoMo’s user base to 50 million customers, up from 23 million currently.

Nguyen Manh Tuong, co-founder and vice-chairman of M-Service, told DealStreetAsia earlier that having 50 million users would give the company enough customer insights to provide a spectrum of services to financial institutions, including credit scoring. MoMo has since secured partnerships with 28 banks in Vietnam.

Founded in 2007, the company had earlier closed its Series A and B rounds, totalling $32 million, from investors including Goldman Sachs and Affirma Capital, before announcing a Warburg Pincus-led Series C financing in January 2019.

MoMo’s transaction value grew 3.5 times year-on-year in 2020 to reach $14 billion, the company said.

Vietnam is a mobile-first market, with the majority (57%) of sales taking place on a mobile device, JP Morgan commented in its 2020 E-commerce Trends Report. It also predicted that the share of digital wallet as a payment method will rise from 15% in 2019 to 22% by 2023.

“Digital wallets are rising in uptake, primarily among affluent, urban populations. In Vietnam, digital wallet use is 42% among the banked and 17% among the unbanked. MoMo, Moca, and ZaloPay are the three most popular digital wallets in Vietnam’s two main cities, collectively taking 90% of online payments,” the US financial institution said.

However, only bank account holders in Vietnam can use e-wallets, and the unbanked population in Vietnam remains high at around 70%. The country’s central bank is working on providing banking services to more people, particularly in rural areas through initiatives such as agent banking.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.