A Vietnamese fintech startup has raised a seven-digit figure from Jeffrey Cruttenden. Jeffrey is the co-founder of the popular US-based savings app known as Acorns. A local company, Thien Viet Securities, plus other investors, also contributed towards this amount. More details were not disclosed.
Finhay was founded back in 2017, and in the time it has been operational as a management platform, it has helped hundreds of users perform micro-investments in mutual funds in the country, starting from just US$2.11 (50,000 dong).
Finhay previously raised a total of US$1.1 million, mainly from Australian’s H2 Ventures and local-based Insignia Ventures Partners, respectively. This round of funding has placed Finhay among the most well-funded fintech startups in Vietnam.
Finhay’s founder stated that in the wealth management sector in Vietnam, they are just tapping the surface of the company’s potential. “With the financial support, experience, and expertise of our new investors, we can capture this potential and accelerate our growth,” CEO Nghiem Xuan Huey added.
Finhay stated that it would use the funding it received to expand its market reach, recruit more staff, and optimize IT infrastructure to grow its platform.
The emerging fintech sector
Cruttenden stated that Finhay’s modern and tech-enabled solution is revolutionizing access to wealth management resources for Vietnamese millennials. His company, Acorns, has since raised US$105 million in series E funding.
With the increasing demand for fintech in Vietnam, Finhay has a competitive advantage due to its emphasis on education for younger people and commitment to financial literacy.
Most Vietnamese usually focus on traditional investments such as real estate and stocks to build wealth. This focus has led to a significant demand for more innovative financial services for younger generations, which offers a wider diversification of assets.
Another platform like Finhay in the region is StashAway, which raised US$12 million in series B funding. Smartly which was acquired in July 2019 by Vietnam’s VinaCapital, closed in March 2020, due to intense competition in the digital advisory space.