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.
“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.