F88, Vietnam-based secured lending, and insurance distributor have obtained US $10 million in debt financing from Lendable, the London-based impact finance provider’s first investment in the Southeast Asian country.
Three months ago, the fintech firm issued VND100 billion (US $4.3 million) in bonds to private investors and a local securities investment fund to support its pawnshop development.
With the additional financing, F88 hopes to better assist unbanked and underbanked individuals and MSMEs in Vietnam. In 2022, it intends to disburse half a billion dollars.
F88 was founded in 2013 to modernize the conventional pawnshop model in Vietnam’s alternative lending market, allowing borrowers to get credit through low-cost, transparent, and rapid financial services.
Secured loans, insurance, utility bill payment, money transfer, and e-wallet deposit and withdrawal services are among the services it provides.
F88 claims to have been profitable since 2019 with a network of 525 stores in 60 regions across the country (as of December 2021).
It has also grown outside F88-branded stores, bringing its services to roughly 4,000 F88 stores as well as merchants’ and tech partners’ outlets.
In 2021, F88 reported a revenue increase of 113% and a loan book increase of 70%, according to the company.