Vietnam-based fintech firm MFast has announced raising $6 million in a Series A funding round led by Wavemaker Partners with participation from new investors Finnoventure Fund I, managed by Krungsri Finnovate, and Headline Asia, along with existing investors Do Ventures, JAFCO Asia, and Ascend Vietnam Ventures.
The funding comes over a year after the fintech firm raised $2.5 million in a funding round led by Ascend Vietnam Ventures last year. The new funding round brings MFast’s total funding to $10 million.
MFast, which was set up in 2017 by founders Phan Thanh Long and Phan Thanh Vinh, claims that it has 160,000 active agents to serve customer needs, especially in tier-2 and tier-3 cities. Through MFast, these agents acquire a deep understanding of financial services and are provided with a full-fledged agent app to earn significant supplementary income.
The platform has witnessed remarkable growth, with a 62% increase in the number of earning users during the first half of 2023, as compared to the same period in 2022.
MFast will utilize the funds to further expand its operations and unlock the potential of nationwide distribution, with a plan to extend its presence outside the country by 2024.
MFast CEO Long Phan said that the company’s 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.
“MFast aims to broaden its reach by distributing impactful, high-value products to tier-2 and tier-3 customers while bolstering agents’ income potential. Given the challenges posed by post-deflationary measures on the Vietnam economy, MFast’s timely and essential solution benefits all stakeholders involved: brands, agents, and customers,” said Phuong Tran, principal at Wavemaker Partners.
In March 2022, Wavemaker Partners closed its fourth fund at $136 million, surpassing its $120 million initial target.
“MFast is Vietnam’s first startup in which Finnoventure Fund I, managed by Krungsri Finnovate, has invested,” said Sam Tanskul, managing director of Krungsri Finnovate, the corporate venture capital arm under the Bank of Ayudhya (Krungsri).