Vietnamese P2P lending startup Tima has closed a US dollar 7-figure series A funding from a Singapore fund to accelerate service growth in the local market, a senior executive of the company told this portal.
Launched in 2015, the platform has seen cumulative money from its lender partners reach over VND2.5 trillion ($115.45 million).
Tima has been working with 967 lenders who are financial units, investors and credit institutions. To date, more than two million cumulative transactions have happened via its platform.
“We have localised the LendingClub model so that it works for the Vietnam market. We have shown investors our business verticals and licenses for these activities in Vietnam. They work properly,” a co-founder of Tima, told DEALSTREETASIA, addressing the legal environment for P2P lending in the country.
About 80 per cent of loan seekers based in Vietnam do not have prompt access to financial services, says a World Bank report. P2P lending, still a fledging business in the country, is said to be a solution in addressing this gap.
In Vietnam, fintech has started to emerge as one of the most favourite verticals for startups and investors, fueled by the increasing mobility yet unbanked population in the country.
Tima claims to be the first fintech startup to successfully operate P2P lending in Vietnam.
Globally, 42 per cent of the 19 fintech unicorns are P2P platforms, according to KPMG and CB Insights.
A spate of Vietnamese fintech startups have secured venture capital funding this year, including e-wallet MoMo ($28 million from Standard Chartered Private Equity and Goldman Sachs), OnOnPay ($800,000 from Gobi Partners and others) and BankGo.
Business models have also diversified to personal finance, crowdfunding to virtual currency, even as e-payment still dominates.
Money Lover, an app that allows users to track their finance information, was also recognized as the best disruptor in 2016 by the Ricebowl Startup Awards.