Vietnamese fintech Fvndit launches $10m security token offering

A collection of bitcoin tokens sit in this arranged photograph in London, U.K., on Tuesday, Jan. 9, 2018. Photographer: Chris Ratcliffe/Bloomberg

Fvndit, Inc, a Vietnam and California-based fintech company, has announced the launch of a $10-million digital security offering to further propel its business objectives as the market leading SME-focused crowd-based funding platform in Vietnam.

Fvndit is focused on solving the working capital problem for SMEs using technology. It uses technology to re-build core parts of the business funding infrastructure and makes the underwriting and financing seamless for small businesses.

It owns and operates eLoan JSC, a Vietnam-based peer-to-peer (P2P) lending marketplace that matches investors with borrowers, allowing anyone to lend money directly to small and medium-sized enterprises (SMEs).

The AI-driven risk analysis platform, which was launched in late 2017, claims that it facilitated over $5 million in loan disbursements with zero loan loss and is experiencing double-digit month-month revenue growth.

Digital Security Offering (DSO) and Security Token Offering (STO) are terms used interchangeably to describe offerings of digitized securities and tokenized securities respectively, according to Fvndit.

The newly issued token, FVND, is a security token that is linked to a direct ownership stake in Fvndit through a designated preferred equity class and entitles holders to financial rights and dividends.

This STO will be conducted in multiple phases with a target raise of $10 million and is open to both US and non-US investors.

“Investors will now receive shares, represented by tokens, with asset-backed US-based security and an unprecedented level of transparency that’s extremely important for investing in a rising emerging market,” said Tan Tran, CEO of Fvndit.

“Infusing technology into all aspects of our business from raising capital for growth to the front and back of our operations is a key focus in our overall strategy,” he added.

Last year, US-headquartered Vemanti Group, a diversified holding company, has entered into a definitive agreement to take 20 per cent equity interest in eLoan JSC.

As part of the agreement, the Vemanti Group executed a cash and stock exchange for 20 per cent equity interest in eLoan with options for more along with a corporate board seat.

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