Want to be in the loop?
subscribe to
our notification
Business News
VIETNAMESE FINTECH STARTUPS SECURE A MERE $6.2 MILLION FUNDING IN 1H/2023
Vietnam's records experienced a significant decline in fintech funding, with the total amounting to a lower-than-expected $6.2 million in the first half of 2023.
According to a report by Tracxn, a global SaaS-based market intelligence platform, the fintech sector in Vietnam has experienced a significant downturn in funding throughout 2023, largely attributed to the lingering effects of the funding winter and the prevailing global macroeconomic uncertainty.
While these challenges have impacted the country's startup funding landscape, experts remain optimistic about the sector's rebound as the global economy stabilises.
Over the past decades, Vietnam's economy has experienced substantial growth, resulting in a significant increase in per capita income, which multiplied by 3.6 times between 2002 and 2021. The country's economy is projected to grow by 6.3 per cent in 2023, further emphasising its potential for continued expansion.
However, the report pointed out that the first half of 2023 has seen a remarkable drop in fintech funding, falling to a paltry $6.2 million. This represents a staggering 97 per cent decrease compared with the $201 million recorded in the same period in 2022. Similarly, the funding for the first half of 2023 was 67 per cent lower than the $17.9 million registered in the latter half of 2022.
A notable factor contributing to this decline is the absence of late-stage funding rounds. The fintech space in Vietnam has witnessed a complete absence of in this area throughout 2022 and 2023.
Among the funding rounds that did occur, early-stage investments constituted the majority, contributing $5.1 million to the total. However, this amount reflects a steep 97 per cent decrease compared with the substantial $195 million raised during the first half of 2022. Furthermore, the early-stage funding for the first half of 2023 was down 32 per cent over the $7.5 million that was secured in the last 6 months of 2022.
Seed-stage funding also saw a considerable reduction, amounting to only $1.1 million. This marks an 82 per cent on-year decrease, and an 89 per cent drop compared with H2/2022.
Analysing the on-quarter funding, the difference is evident. The first quarter of 2023 recorded a total of $5.1 million, signifying a 76 per cent decrease from the $21.2 million secured in the first quarter of 2022. In the second quarter of 2023, funding experienced a staggering 99 per cent decline, plummeting from $180 million in Q2/2022 to just $1.1 million in Q2/2023.
The fintech sector in Vietnam experienced only one funding round exceeding $100 million during the first half of 2022. Since then, none have surpassed this milestone. Furthermore, the sector has not produced any unicorns, nor witnessed any acquisitions or initial public offerings within the past two years.
Hanoi is the only city in the nation to secure funding for the fintech sector during the first half of 2023.
Key investors that have played a pivotal role in shaping the local fintech landscape over the past two years include CIE IIITH, Y Combinator, WeFounder Circle, Integra Partners, and Genting Ventures.
CIE IIITH, Y Combinator, and WeFounder Circle have been significant players in the seed-stage investment domain, while, Integra Partners and Genting Ventures have emerged as prominent investors in early-stage funding rounds.
The Vietnamese government is contributing to the growth of the fintech sector by spearheading the National Digital Transformation Programme. This ambitious initiative aims to achieve significant milestones, including transitioning half of all banking operations online, providing half of the population with digital bank accounts, and facilitating 70 per cent of transactions through digital channels.
Source: VIR
Related News
ESG SERIES MASTERCLASS
Join the ESG Series Masterclass today and be a part of the solution led by our team of industry experts Bao Nguyen, Betty Pallard, Chi Nguyen, Jonathan SOURINTHA - HRK Group - PVA PRO - GPS (iBAG), Markus Klemmer, Paula Fajardo, Sergio Pereira da Silva along with many more to come…
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.