M-Service becomes Vietnam's latest unicorn with valuation of more than $2 billion

December 22, 2021 | 14:00

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M-Service JSC, the parent firm of Vietnam-based e-wallet MoMo, has just become the country's latest unicorn with a valuation of more than $2 billion in its Series E round after securing around $200 million from a consortium of investors led by Mizuho Bank.

M-Service becomes Vietnam's latest unicorn with valuation of more than $2 billion

Accordingly, Mizuho Bank, one of Japan's three megabanks, has purchased a 7.5 per cent stake of M-Service on December 20, equivalent to roughly $170 million, VIR previously reported.

Ward Ferry Management and Goodwater Capital LLC and Kora Management also participated in the Series E funding led by Mizuho Bank.

Nguyen Manh Tuong, executive vice chairman and co-CEO of M-Service, said that the current financing round gives the company a valuation of more than $2 billion. However, M-Service has no plans to file for an initial public offering in the next few years and will instead focus on cementing its position and diversifying its products.

The company plans to use the new funding to support rural expansion, starting with a bill payment service. MoMo will also use the funds to accelerate investments in technology, support digital transformation in small and medium enterprises, and mergers and acquisitions.

In its fourth round of fundraising in this January, MoMo bagged an undisclosed amount from three new overseas funds (US funds Goodwater Capital and Kora Management, as well as Australia's Macquarie Capital) and current owners Warburg Pincus (US), Affirma Capital (UK), and Tybourne Capital Management (Hong Kong, China).

MoMo's income nearly quadrupled this year despite substantial declines in cinema ticket and travel service sales due to the country's strict lockdowns, its representative revealed.

By Lam Tien

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