MFast, a platform for distributing financial products through a network of partners, has successfully raised $6 million in its Series A funding round.
Leading the funding round were Wavemaker Partners (Singapore), along with Finnoventure Fund I (Thailand), Headline Asia, and previous round investors including Do Ventures, JAFCO Asia, and Ascend Vietnam Ventures.
Phan Thanh Long, CEO of MFast, said that securing investment during the "fundraising winter" was a significant milestone. Operating primarily in tier 2 and 3 cities, the startup plans to increase collaboration with financial institutions to design customized financial products for different customer segments, as well as prepare for expansion into the Philippines in 2024.
Launched in 2017, MFast is a platform belonging to DigiPay, a fintech startup in Vietnam run by twin brothers Phan Thanh Long and Phan Thanh Vinh. MFast provides a sales channel in the finance and insurance sector through a network of 160,000 collaborators to date.
The two founders, Phan Thanh Long and Phan Thanh Vinh. Photo: Do Ventures
Currently, this platform is available in all 63 provinces and cities of Vietnam, providing technology and logistics infrastructure as well as training for collaborators. Through this, these collaborators are equipped with knowledge of financial services and earn income from brokerage activities via the application. They have reached over one million customers to date.
Vietnam is becoming a key factor in driving consumer spending in Southeast Asia over the next 10 years. With a population of 100 million, of which the middle class currently accounts for about 40% and is expected to increase to 75% by 2030, the growth potential of this market is enormous, according to consulting firm McKinsey.
However, access to financial products and services, such as loans and insurance, remains uneven across Vietnam's provinces and cities. According to Do Ventures, residents in 17 second-tier cities face difficulties accessing these services.
In the first half of 2023, MFast's collaborators saw their income increase by 62% compared to the same period last year. Going forward, this Fintech company will continue to strengthen its partnerships with UOB, SHBFinance, TPBank, VPBank , and Kasikorn Bank. Sam Tanskul, CEO of Krungsri Finnovate, stated that this is the first Vietnamese startup to receive investment from Finnoventure Fund I, managed by Krungsri Finnovate.
Krungsri Finnovate is an investment fund managed by Ayudhya Bank (Krungsri), the fifth largest financial group in Thailand. The Finnoventure Fund I, established in 2021, aims to invest in Series A and later-stage companies in Thailand and Southeast Asia. This Thai investor's decision to invest in MFast also aims to strengthen its partnership withSHB Finance, Krungsri's consumer finance business in Vietnam.
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