MFast, a financial services distribution network in Vietnam and a brand of DigiPay JSC, announced today it has raised $6 million in its Series A funding round, led by Wavemaker Partners. New investors Finnoventure Fund I (managed by Krungsri Innovate), Headline Asia, alongside returning backers Do Ventures, JAFCO Asia and Ascend Vietnam Ventures also joined the round.
This brings MFast’s total raised in the six years since its launch to $10 million, including a $1.5 million pre-Series A round led by Do Ventures and $2.5 million funding round led by Ascend Vietnam Ventures with participation from Wavemaker Partners, Do Ventures and JAFCO Asia. MFast’s network currently includes 160,000 active agents who work with customers in tier 2 and tier 3 cities throughout Vietnam.
“By bridging the gap and extending financial access, we not only empower individuals but also contribute to sustainable economic growth, creating a win-win scenario for customers and the broader economy,” said Sam Tanskul, managing director at Krungsri Innovate, which manages Finnoventure Fund I.
MFast reported a 62% increase in earning users during the first half 2023 compared to the same period in the previous year. The firm also counts local and international financial institutions as partners, including UOB, SHBFinance, TPBank, VPBank, and Kasikorn Bank. MFast will utilize the funds to expand its operations and unlock the potential of nationwide distribution, with a plan to extend its presence outside the country by 2024.
“Our next big steps include fostering collaboration to design exclusive financial products for each and every customer segment, as well as gearing up for expansion to the Philippines in 2024,” said MFast CEO Long Phan.
MFast was launched in 2017 by twin brothers Phan Thanh Long and Phan Thanh Vinh who observed a major issue in Vietnam’s rural areas – nearly 70 percent of the Vietnamese population in rural areas have limited access to banking, insurance, and credit-related services. It is an online marketplace and a sales channel in the finance and insurance field allowing users to fulfill the role of all-in-one agents, serving the community’s demands for finance, banking and insurance products.
In a statement about the investment, Wavemaker Partners principal Phuong Tran said, “With its strong agent base and initial focus on financial products, MFast has achieved impressive results. Wavemaker is proud to strengthen our partnership with the company and support it as it enters its next phase of growth.”