The round marks the first ever investment by the Singapore-based venture capital fund in Vietnam.
The proceeds from the investment will serve OnOnPay’s expansion plan with the direct support from Captii Ventures, Bui Sy Phong, the startup’s founder, told DEALSTREETASIA. Thailand, Indonesia and Philippines will be the next markets for OnOnPay, outside of Vietnam.
“It took only a month from when we officially talked to Captii Ventures to the close of the deal,” Phong said.
Topping up service in Vietnam is also provided by platforms such as Homepay.vn, Thanhtoanonline.com and Momo.vn. However, while OnOnPay focuses on the niche of top-up service, other companies target payment gates, he said.
“For the percentage of top-up cards, I would say more than 90 per cent of people here using top-up card everyday. That’s an opportunity for business like ours to step in.”
Topping up a prepaid mobile card can be a hard boring experience. Doing it in a retail store in Vietnam requires at least six minutes, not to mention the travelling time, according to Phong. But with OnOnPay, subscribers have to spend only one minute for the first time and just 10 seconds for the next, by a few clicks on its website or mobile app.
The app, which was launched in June, also offers rewards, extra credit, coupons, and gift certificates to loyal customers.
The startup, that was incubated by the Hanoi-based incubator and co-working space Hub.IT, unveiled its average revenue per user (ARPU) is about to reach $10, while the ARPU in the country is much lower at $4.
“The plan is to tap into 10,000 active customers this year and 200,000 by the end of next year. We’ve already connected with all five telcos and are in talks with them to have direct connection. Viettel is one of the telcos we’re talking to and they have 47 per cent of all the market share,” Phong told e27 in June.
OnOnPay said it will form partnership with companies like Uber, GrabTaxi, and local reputable brands, in order to deliver meaningful rewards to its customers.
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