F88 successfully raised 50 million USD from foreign funds

Recently, F88 Business Joint Stock Company announced the successful mobilization of a new foreign loan worth 50 million USD, equivalent to 1,200 billion VND from the Lending Ark Asia fund.

This loan worth more than 1,200 billion VND is the second loan that F88 received from the Lending Ark Asia fund, after the first loan also worth 50 million USD in November 2022, currently the total loan amount that Lending Ark granted to F88 is up to 100 million USD.

Mr. Phung Anh Tuan - Chairman of the Board of Directors and General Director of F88 said that the capital mobilized in this round will be used to expand the provision of financial services to sub-bank customers and continue to improve the financial capacity of this customer group.

With this capital, F88 aims to expand the provision of standard financial services to sub-banked customers in Vietnam.

Lending Ark Asia is a strategic private credit advisory firm headquartered in Hong Kong. Lending Ark Asia approves and manages investments in the personal lending space across Asia, Australia and New Zealand.

Regarding the business situation in the first 6 months of the year, F88 recorded revenue of 1,229 billion VND, an increase of 52% over the same period last year, but the loss after tax was up to 368 billion VND.

Finance - Banking - F88 successfully raised 50 million USD from foreign funds — F88 specializes in providing financial services in the form of mortgage loans.

As of June 30, 2023, F88's total number of customers increased by 30% compared to the end of 2022. The customer satisfaction rate after transaction (CSAT) reached 89%.

The company's equity has now tripled over the same period last year to VND1,588 billion. Because equity has increased sharply, the company's debt-to-equity ratio has decreased from 4.77 times in the same period last year to 1.44 times.

Accordingly, this financial enterprise has outstanding debt of about VND 2,286 billion, of which bond debt accounts for more than VND 222 billion.

Explaining the unprofitable business results in the first half of 2023, F88's leaders said the main reason was due to increased risk costs when the company applied a more cautious policy of setting aside bad debt reserves than usual.

F88 Trading Joint Stock Company is almost entirely owned by F88 Investment. In early March 2023, two foreign investment funds injected a huge amount of capital into this pawn shop chain.

F88 Investment has successfully raised capital with a total value of 50 million USD, equivalent to 1,185 billion VND. Vietnam-Oman Fund (VOI) and Mekong Enterprise Fund IV are two investors investing in F88 Investment, in which VOI contributed up to 30 million USD. At that time, the presence of these two funds was expected to help the enterprise accelerate its business activities in the future .

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